Fujitsu 2007 Annual Report Download - page 85

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Gain on business transfer
Gain on business transfer for the year ended March 31, 2005 related to the transfer of the plasma display
panel business.
Gain on business transfer for the year ended March 31, 2006 related to the transfer of LCD
panel operations.
Impairment loss
In principle, the Group’s business-use assets are grouped according to managed business units, and idle
assets are grouped on an individual asset basis.
For the year ended March 31, 2007, the Group recognized an impairment loss up to the recoverable
amount on the asset group for the optical transmission systems business, primarily as a result of delays in
business performance recovery due to rapid changes in the business environment in North America and
Japan, and recognized an impairment loss on asset groups not used in business.
The impairment loss consisted of ¥1,501 million (¥12,720 thousand) for land, ¥2,535 million ($21,483
thousand) for buildings, ¥5,499 million ($46,602 thousand) for machinery and equipment and ¥456 mil-
lion ($3,864 thousand) for the other assets.
The Group calculated the recoverable amount of assets using fair value less costs to sell or value in
use. The Group used the real estate appraisal value for fair value less costs to sell. The recoverable
value of the assets group for the optical transmission business was calculated based on value in use, but
the Group used an undiscounted cash flow to estimate the value because the future cash flows were
expected to be negative.
Loss on sales of marketable securities
Loss on sales of marketable securities for the year ended March 31, 2007 refers to loss on sales of shares in
Spansion Inc. and other equity method affiliates.
Restructuring charges
Restructuring charges for the year ended March 31, 2005 were recorded as expenses relating to reductions
and relocation of personnel and disposition of assets primarily at domestic manufacturing subsidiaries.
Restructuring charges for the year ended March 31, 2006 related to expenses of restructuring to improve
business profitability and asset efficiency, realignment of business location, etc.
Loss on change in interest
Loss on change in interest for the year ended March 31, 2006 refers to loss relating to allocation of new
shares of affiliate (Spansion Inc.) to third parties.
Provision for prior product warranties
Provision for prior product warranties for the year ended March 31, 2006 is related to provision to cover
warranty-related costs for products sold in prior fiscal years.
Real estate valuation losses
Real estate valuation losses for the year ended March 31, 2005 related to the devaluation on idle
property holdings.
Annual Report 2007 83