GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

9. GOODWILL AND OTHER INTANGIBLE ASSETS

Intangible assets are summarized as follows:


	March 31,
	2015				2016
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(Yen in millions)
Intangible assets subject to amortization:
Customer relationships	¥	32,944	¥	14,417	¥	34,670	¥	16,624
Software		40,438		29,780		40,897		29,384
Patent rights		12,506		8,928		15,940		9,767
Trademark		6,291		1,270		7,433		1,673
Non-patent technology		5,257		1,101		5,425		1,541
Other		13,007		5,488		12,718		6,034

Total	¥	110,443	¥	60,984	¥	117,083	¥	65,023


	March 31,
	2015		2016
	Gross Carrying Amount		Gross Carrying Amount
	(Yen in millions)
Intangible assets not subject to amortization:
Trademark	¥	7,155	¥	7,045
Other		1		1

Total	¥	7,156	¥	7,046

Intangible assets acquired during the year ended March 31, 2016 are as follows:


	Year ended March 31, 2016
	(Yen in millions)
Intangible assets subject to amortization:
Customer relationships	¥	4,218
Software		5,563
Patent rights		5,268
Trademark		1,432
Non-patent technology		408
Other		698

Total	¥	17,587

The weighted average amortization periods for customer relationships, software, patent rights, trademark and non-patent technology which were acquired during the year ended March 31, 2016 are 11 years, five years, six years, 14 years and seven years, respectively.

Total amortization of intangible assets during the years ended March 31, 2014, 2015 and 2016 amounted to ¥10,177 million, ¥10,422 million and ¥10,723 million, respectively. The estimated aggregate amortization expenses for intangible assets for the next five years are as follows:


Years ending March 31,	(Yen in millions)
2017	¥	9,430
2018		8,033
2019		5,880
2020		4,236
2021		3,620

The changes in the amounts of goodwill by reporting segment in the years ended March 31, 2015 and 2016 are as follows:


	Fine Ceramic Parts Group		Semiconductor Parts Group			Applied Ceramic Products Group			Electronic Device Group			Telecommunications Equipment Group			Information Equipment Group			Others			Total
	(Yen in millions)
Balance at March 31, 2014
Goodwill	¥	100	¥	6,901		¥	22,842		¥	49,486		¥	18,456		¥	16,808		¥	10,900		¥	125,493
Accumulated impairment losses		—		—			(5,415	)		(729	)		—			(22	)		(2,695	)		(8,861	)

		100		6,901			17,427			48,757			18,456			16,786			8,205			116,632
Goodwill acquired during the year		—		—			—			—			—			1,251			71			1,322
Impairment of goodwill		—		—			—			—			(18,456	)		—			—			(18,456	)
Translation adjustments and reclassification to other accounts		—		72			(602	)		3,640			—			(441	)		—			2,669

Balance at March 31, 2015
Goodwill		100		6,973			22,240			53,126			18,456			17,618			10,971			129,484
Accumulated impairment losses		—		—			(5,415	)		(729	)		(18,456	)		(22	)		(2,695	)		(27,317	)

		100		6,973			16,825			52,397			—			17,596			8,276			102,167
Goodwill acquired during the year		—		—			218			10,606			—			6,851			—			17,675
Impairment of goodwill		—		—			—			(14,143	)		—			—			—			(14,143	)
Translation adjustments and reclassification to other accounts		—		(30	)		(409	)		(1,498	)		—			(1,163	)		—			(3,100	)

Balance at March 31, 2016
Goodwill		100		6,943			22,049			62,234			18,456			23,306			10,971			144,059
Accumulated impairment losses		—		—			(5,415	)		(14,872	)		(18,456	)		(22	)		(2,695	)		(41,460	)

	¥	100	¥	6,943		¥	16,634		¥	47,362		¥	—		¥	23,284		¥	8,276		¥	102,599

As described “Goodwill and other intangible assets” in Note 1 to the Consolidated Financial Statements, we assess our goodwill for impairment annually as of January 1, and also whenever indicators of impairment exist.

Two steps shall be performed for the impairment test for Goodwill. The first step (“identification of potential impairment”) is a comparison of each reporting unit’s fair value with its carrying amount, including goodwill. If the fair value of any reporting unit exceeds its carrying amount, the goodwill of the reporting unit is considered not impaired. If the carrying amount of any reporting unit exceeds its fair value, the second step shall be performed to measure the amount of impairment loss. The second step (“measurement of impairment loss”) compares the implied fair value of a reporting unit’s goodwill with the carrying amount of the goodwill and if the carrying amount exceeds the implied fair value, the exceeded amount is recognized as impairment loss. The implied fair value of the goodwill is determined in the same manner as the amount of goodwill recognized in a business combination is determined. That is, fair value of the reporting unit is allocated to all of the assets and liabilities of the unit (including any unrecognized intangible assets), and the excess of the fair value of the reporting unit over the amount assigned to its assets and liabilities is the implied fair value of the goodwill.

In fiscal 2015, Kyocera recognized an impairment loss on goodwill in the amount of ¥18,456 million in the Telecommunications Equipment Group (“Reporting Unit”). The loss was recorded due to a decline in the fair value of this Reporting Unit determined based on its updated future estimated cash flows, reflecting the slow improvement of profitability in the overseas market, especially in the U.S. market, as well as the operating loss before the impairment loss recorded in fiscal 2015 in the midst of the market condition with low profitability. The fair value of this Reporting Unit was determined using the discounted cash flows method (income approach) and the comparable company valuation multiples technique (market approach).

In fiscal 2016, Kyocera recognized an impairment loss on goodwill in the amount of ¥14,143 million in the liquid crystal displays business (“Reporting Unit”) included in the Electronic Devices Group. The loss was recorded due to a decline in the fair value of this Reporting Unit determined based on its updated future estimated cash flows, reflecting the deterioration of the profitability in the business. The fair value of this Reporting Unit was determined using the discounted cash flows method (income approach).

- Definition

The entire disclosure for 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 (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.

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