Goodwill and Other Intangible Assets

12 Months Ended

Mar. 31, 2011

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

10. Goodwill and Other Intangible Assets

The information for intangible assets other than goodwill at March 31, 2011 and 2010 are as follows:

Millions of yen

Thousands of U.S. dollars

2011

2010

2011

Gross

Net

Gross

Net

Gross

Net

carrying

Accumulated

carrying

Accumulated

carrying

Accumulated

carrying

amount

amortization

amount

amortization

amount

amortization

amount

Other intangible assets subject to amortization:

Software

33,367

(17,531

)

15,836

34,699

(13,280

)

21,419

402,012

(211,217

)

190,795

Leasehold

8,926

(1,585

)

7,341

9,076

(1,586

)

7,490

107,542

(19,096

)

88,446

Other

30,199

(12,392

)

17,807

30,166

(10,043

)

20,123

363,843

(149,301

)

214,542

Total

72,492

(31,508

)

40,984

73,941

(24,909

)

49,032

873,397

(379,614

)

493,783

Other intangible assets not subject to amortization

12,987

12,697

156,470

Total other intangible assets

53,971

61,729

650,253

At March 31, 2011, Net carrying amounts of other in other intangible assets subject to amortization mainly consist of customer relationships of ¥11,801 million ($142,181 thousand) and technology assets of ¥3,770 million ($45,422 thousand) resulting from the acquisition of additional shares of Komatsu NTC Ltd. for the fiscal year ended March 31, 2008.

For the fiscal year ended March 31, 2011, Komatsu recognized an impairment loss of ¥2,744 million ($33,060 thousand) related to the software to be disposed of in the construction, mining and utility equipment segment. This impairment loss was recognized based on the difference by which the carrying value of the software exceeds the fair value less cost to dispose of.

The aggregate amortization expense of other intangible assets subject to amortization for the year ended March 31, 2011, 2010 and 2009 were ¥8,149 million ($98,181 thousand), ¥8,633 million and ¥12,611 million, respectively. The future estimated amortization expenses for each of five years relating to intangible assets currently recorded in the consolidated balance sheet are as follows:


Year ending March 31	Millions of yen
2012	¥	7,891
2013		6,702
2014		4,723
2015		3,461
2016		2,167

The changes in carrying amounts of goodwill for the year ended March 31, 2011 and 2010 were as follow:


	Millions of yen
	Construction, Mining			Industrial Machinery
	and Utility Equipment			and Others
	segment			segment			Total
Balance at March 31, 2009
Goodwill	¥	23,437		¥	13,943		¥	37,380
Accumulated impairment losses		(8,179	)		(540	)		(8,719	)
	¥	15,258		¥	13,403		¥	28,661

Goodwill acquired during the year		736			—			736
Foreign exchange impact		173			—			173
Balance at March 31, 2010
Goodwill		24,346			13,943			38,289
Accumulated impairment losses		(8,179	)		(540	)		(8,719	)
	¥	16,167		¥	13,403		¥	29,570

Goodwill acquired during the year		578			—			578
Foreign exchange impact		(826	)		(1	)		(827	)

Balance at March 31, 2011
Goodwill		24,098			13,942			38,040
Accumulated impairment losses		(8,179	)		(540	)		(8,719	)

	¥	15,919		¥	13,402		¥	29,321


	Thousands of U.S. dollars
	Construction, Mining			Industrial Machinery
	and Utility Equipment			and Others
	segment			segment			Total
Balance at March 31, 2010
Goodwill	$	293,325		$	167,988		$	461,313
Accumulated impairment losses		(98,542	)		(6,506	)		(105,048	)
	$	194,783		$	161,482		$	356,265

Goodwill acquired during the year		6,964			—			6,964
Foreign exchange impact		(9,952	)		(12	)		(9,964	)

Balance at March 31, 2011
Goodwill		290,337			167,976			458,313
Accumulated impairment losses		(98,542	)		(6,506	)		(105,048	)

	$	191,795		$	161,470		$	353,265

Goodwill acquired during the fiscal year ended March 31, 2010 resulted from the acquisition of additional shares of KACF.

- Definition

Discloses the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

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