Impairment loss on fixed assets for the fiscal year ended March 2006May 10, 2006
SOFTBANK CORP. (“the Company”) recognized impairment loss on fixed assets of 36.4 billion yen on consolidated basis for the fiscal year ended March 2006. The details are as follows:
(1) Impairment loss in fixed-line telecommunications business
JAPAN TELECOM CO., LTD. (head office: Minato-ku, Tokyo; President and CEO: Hideki Kurashige; hereinafter “JAPAN TELECOM”), a wholly-owned subsidiary of the Company, targeted consumer users for Otoku Line sales at the start of the service in December 2004, however, since the fiscal year ended March 2006 JAPAN TELECOM has shifted its main target from consumer users to corporate users. As a result, JAPAN TELECOM recognized impairment loss on its assets, including leased assets, such as a part of AGW facilities, switch facilities to accommodate consumer users whose service use is no longer expected, and other facilities for suspended services and suspended operation.
The Company accordingly recognized impairment loss of 18 billion yen on fixed assets and leased assets for fixed-line telecommunications business (the accounting item in profit and loss statement is impairment loss in fixed-line telecommunications business) as special loss in the forth quarter for the fiscal year ended March 2006.
(2) Impairment loss on assets solely used in BBTV business
As reported in the press release as of 10 February 2006 ‘Announcement of restructuring charge relating to the BBTV business, a broadband TV broadcasting service business, along with diversification of video content delivery business,’ the Company had recognized restructuring charge of 14.7 billion yen as special loss in the third quarter for the fiscal year ended March 2006, and of which 11.9 billion yen was recorded as impairment loss. Please refer to the above-mentioned press release for more details.
(3) Other impairment loss
In addition to the above, impairment loss of 6.4 billion yen was recognized as special loss (the accounting item in profit and loss statement is ‘other’ in special loss) and of which 3.9 billion yen was recognized in the forth quarter for the fiscal year ended March 2006.
2. Impact on consolidated financial results
The Company accordingly recognized impairment loss of 22 billion yen as special loss in the forth quarter for the fiscal year ended March 2006.
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