Trust Recovery Growth Vitalization - Marubeni

Notes to Consolidated Financial Statements
The changes in the carrying amount of goodwill by operating segment for the years ended March 31, 2005 and 2004, are as follows:
Millions of yen
Transportation Telecom Overseas
Agri-marine and industrial and corporate
products Chemicals Energy machinery information subsidiaries Total
Balance at March 31, 2003 ............. ¥ – ¥1,819 ¥ – ¥5,332 ¥8,103 ¥ 8,299 ¥23,553
Goodwill acquired during the year .. 7,371 – 993 – – – 8,364
Impairment losses .......................... – (774) – (681) – – (1,455)
Effect of exchange rate and other .. – 46 – (594) (7) (1,114) (1,669)
Balance at March 31, 2004 ............. 7,371 1,091 993 4,057 8,096 7,185 28,793
Goodwill acquired during the year .. – – – – – – –
Impairment losses .......................... – – – – – – –
Effect of exchange rate and other .. (78) 56 (993) (15) – (254) (1,284)
Balance at March 31, 2005 ............. ¥7,293 ¥1,147 ¥ – ¥4,042 ¥8,096 ¥ 6,931 ¥27,509
Thousands of U.S. dollars
Transportation Telecom Overseas
Agri-marine and industrial and corporate
products Chemicals Energy machinery information subsidiaries Total
Balance at March 31, 2004 ............. $68,888 $10,196 $ 9,280 $37,916 $75,663 $67,150 $269,093
Goodwill acquired during the year .. – – – – – – –
Impairment losses .......................... – – – – – – –
Effect of exchange rate and other .. (729) 524 (9,280) (140) – (2,375) (12,000)
Balance at March 31, 2005 ............. $68,159 $10,720 $ – $37,776 $75,663 $64,775 $257,093
As a result of decreases in the estimated future cash flows due to
the worsened business circumstance and conditions and changes in
the management strategies, the Companies recognized impairment
losses on goodwill of ¥1,455 million for the year ended March 31,
2004. There was no impairment loss on goodwill recognized for the
year ended March 31, 2005. The fair value of the reporting unit was
estimated using the expected present value of future cash flows.
Due to decreases in expected future cash flows below their
carrying amounts, the Company and certain of its subsidiaries
recognized impairment losses primarily on their facility, real estate
and plant in the total amount of ¥13,558 million ($126,710 thousand),
7 Pledged Assets
which are included in loss on property, plant and equipment on the
consolidated statement of income, for the year ended March 31,
2005, based on their fair value. The fair value was primarily estimated
using the discounted cashflow method and third-party appraisals.
The segments affected by the impairment losses were primarily
Forest product and general merchandise of ¥4,251 million ($39,729
thousand), Development and construction of ¥3,664 million ($34,243
thousand), Agri-marine products of ¥2,548 million ($23,813 thousand)
and Telecom and information of ¥1,813 million ($16,944 thousand).
The amounts of impairment losses for the years ended March 31,
2004 and 2003 were immaterial.
The following table summarizes assets pledged as collateral for the Company’s obligations at March 31, 2005 and 2004:
Millions of yen
Thousands of
U.S. dollars
2005 2004 2005
Time deposits ...............................................................................................................
Investment securities, securities and other investments and investments in
¥ 7,967 ¥ 430 $ 74,458
affiliated companies .................................................................................................... 134,882 159,523 1,260,579
Notes, loans and accounts receivable – trade (current and non-current) ...................... 40,977 35,342 382,963
Inventories ....................................................................................................................
Property, plant and equipment, and property leased to others,
12,543 23,732 117,224
net of accumulated depreciation ................................................................................. 256,407 228,481 2,396,327
Other assets ................................................................................................................. 10,836 4,877 101,271
¥463,612 ¥452,385 $4,332,822