Fujitsu 2008 Annual Report Download - page 117

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Settlement gain
Settlement gain for the year ended March 31, 2006 referred to the reconciliation of HDD litigation.
Gain on business transfer
Gain on business transfer for the year ended March 31, 2006 referred to the transfer of LCD panel operations.
Loss on revaluation of investment securities
Loss on revaluation of investment securities for the year ended March 31, 2008 referred mainly to a significant decline
in the market share price of Spansion Inc. of the U.S.
Loss on revaluation of inventories at the beginning of period
Loss on revaluation of inventories for the year ended March 31, 2008 consisted of write-downs on inventories
booked at the beginning of the period in conjunction with the adoption of a new accounting standard for valua-
tion of inventories.
There were two types of revaluation loss. One type was a loss of ¥16,235 million ($162,350 thousand) regard-
ing write-downs of inventories for parts held for maintenance and related services incurred due to changes in
the method of expense recognition from one upon use or disposal to one over the period for which mainte-
nance and related services were provided. The other type was a loss of ¥8,810 million ($88,100 thousand) related
to inventories written down to net realizable value, and obsolescent inventories generated out of the ordinary
course of business.
Restructuring charges
Restructuring charges for the year ended March 31, 2006 referred to expenses to improve business profitability and
asset efficiency, the realignment of business location, and other expenses.
Restructuring charges for the year ended March 31, 2008 referred to impairment losses and disposal costs
related to the relocation of the Akiruno Technology Center’s development and mass-production prototyping func-
tions to the Mie Plant under the reorganization of the LSI business. The impairment loss totaled ¥18,297 million
($182,970 thousand), comprised of a loss of ¥8,936 million ($89,360 thousand) relating to the disposal of machinery
and other equipment in the next fiscal year, and a loss of ¥9,361 million ($93,610 thousand) for property, plants and
other assets for which there was no plan for use.
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 impair-
ment loss on asset groups not used in business.
115
ANNUAL REPORT 2008FUJITSU LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS