Fujitsu 2006 Annual Report Download - page 82

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80 Fujitsu Limited
U.S. Dollars (thousands)
Ubiquitous
Technology Product Other Elimination &
Years ended March 31 Solutions Solutions Device Solutions Operations Corporate Consolidated
2006 (in U.S. Dollars)
Sales
Unaffiliated customers $24,607,212 $7,850,991 $5,552,025 $2,594,992 $ — $40,605,220
Intersegment 680,432 1,131,407 444,051 1,196,161 (3,452,051) —
Total sales 25,287,644 8,982,398 5,996,076 3,791,153 (3,452,051) 40,605,220
Operating costs and expenses 23,895,907 8,690,347 5,713,873 3,725,822 (2,958,763) 39,067,186
Operating income (loss) 1,391,737 292,051 282,203 65,331 (493,288) 1,538,034
Total assets 15,354,203 2,843,627 5,685,017 3,993,924 4,387,051 32,263,822
Depreciation 962,076 182,534 577,322 102,890 98,941 1,923,763
Capital expenditure
(including intangible assets) 1,313,009 199,000 1,018,932 127,678 102,737 2,761,356
1. The business segments are classified based on similarity of products and services, and selling methods, etc.
2. Changes in business segments
The Group has been integrating its sales and system engineering groups and pursuing other organizational reforms to make its structure more
efficient, since the year ended March 31, 2005.
In light of the development of these ongoing organizational reforms, the Group has reclassified its business segments as: Technology Solutions,
Ubiquitous Product Solutions, Device Solutions, and Other Operations, in consideration of the similarities in particular product and service offerings
and sales methods, from the year ended March 31, 2006.
Segment information prior to and for the year ended March 31, 2005 has been restated.
3. The principal products and services of business segments are as follows:
(1) Technology Solutions ............... Servers (mainframes, UNIX servers, mission-critical IA servers, PC servers), storage system, software (OS,
middleware), network control system, optical transmission systems, mobile base station, consulting, system
integration services (system construction), outsourcing services (one-stop information system operational man-
agement), network services (network environments and networking-related services for information systems),
system support (information system and network maintenance and monitoring services), information system
installation, network construction, custom terminal installation (ATMs, POS systems)
(2) Ubiquitous Product Solutions ... Personal computers, mobile phones, HDD (compact magnetic drives), magneto-optical drives, optical modules
(3) Device Solutions ....................... LSI (logic LSI devices, flash memory), electronic components (semiconductor packages, SAW devices),
mechanical components (relays, connectors, etc)
(4) Other Operations ...................... Audio/navigation equipment, automotive electronic devices
4. Unallocated operating costs and expenses included in “Elimination & Corporate” for the years ended March 31, 2004, 2005 and 2006 were ¥61,032
million, ¥58,324 million and ¥56,150 million ($475,847 thousand), respectively. Most of these costs and expenses were incurred as basic research
and development expenses and general and administrative expenses at the Company.
5. Corporate assets included in “Elimination & Corporate” at March 31, 2004, 2005 and 2006 amounted to ¥955,034 million, ¥927,300 million and
¥932,190 million ($7,899,915 thousand), respectively. The assets principally consisted of working capital (cash and cash equivalents and short-term
investments), long-term investments and miscellaneous assets held by the general and administrative sections at the Company.
6. Accounting principles and practices were changed from the year ended March 31, 2006 as stated in Note 1. (a) Basis of presenting consolidated
financial statements and the principles of consolidation (d) Revenue recognition (k) Provision for product warranties. As a result of these changes,
sales to unaffiliated customers and operating income for “Technology Solutions” increased by ¥5,367 million ($45,483 thousand) and ¥7,785 million
($65,975 thousand), respectively, and operating income for “Ubiquitous Product Solutions” decreased by ¥2,977 million ($25,229 thousand).