BUSINESS COMBINATION (Tables) - Kyocera Circuit Solutions, Inc. (KCS)

12 Months Ended

Mar. 31, 2016

Assets and Liabilities Recorded Based upon their Estimated Fair Values at Date of Acquisition

On October 1, 2014, Kyocera Circuit Solutions, Inc. was integrated into Kyocera SLC Technologies Corporation, which ran an organic substrate business, and the new integrated company was named Kyocera Circuit Solutions, Inc. On April 1, 2016, Kyocera Circuit Solutions, Inc. was merged into Kyocera. Kyocera is striving to further enhance its organic substrate business through this merger.

	October 1, 2013
	(Yen in millions)
Cash and cash equivalents	¥	3,303
Trade receivables		8,231
Inventories		3,946
Others		910
Total current assets		16,390
Property, plant and equipment		5,413
Intangible assets		3,134
Others		860
Total non-current assets		9,407
Total assets		25,797
Trade notes and accounts payable		5,241
Others		3,202
Total current liabilities		8,443
Non-current liabilities		3,486
Total liabilities		11,929
Total identified assets and liabilities		13,868
Purchase price (Cash)		19,416
Goodwill	¥	5,548

Kyocera has used the acquisition method of accounting to record assets acquired and liabilities assumed in accordance with ASC805, “Business Combinations.” The allocation of fair value to the acquired assets and assumed liabilities in this business combination was completed during the three months ended December 31, 2015. Acquisition-related costs of ¥232 million were included in selling, general and administrative expenses in the consolidated statement of income for the year ended March 31, 2016. The result of operation of the acquired business was included into Kyocera’s consolidated financial statements since the acquisition date. For segment reporting, it is reported in the Electronic Device Group.

	September 4, 2015
	(Yen in millions)
Cash and cash equivalents	¥	1,976
Trade receivables		5,630
Inventories		5,761
Others		183
Total current assets		13,550
Property, plant and equipment		4,527
Intangible assets		1,760
Others		396
Total non-current assets		6,683
Total assets		20,233
Short-term borrowings		3,722
Current portion of long-term debt		480
Trade notes and accounts payable		3,147
Others		951
Total current liabilities		8,300
Non-current liabilities		5,265
Total liabilities		13,565
Total identified assets and liabilities		6,668
The fair value of business as of September 4, 2015*1		17,274
Goodwill*2	¥	10,606

*1 The fair value of business as of September 4, 2015 was calculated by multiplying 197 yen which was the price of tender offer for per common share by NIEC’s total number of common shares issued after deducting of the treasury shares.

*2 The total amount of goodwill is not expected to be deductible for tax purposes.

Kyocera has used the acquisition method of accounting to record assets acquired and liabilities assumed in accordance with ASC805, “Business Combinations.” The allocation of fair value to the acquired assets and assumed liabilities in this business combination was completed during the three months ended March 31, 2016. Acquisition-related costs of ¥68 million were included in selling, general and administrative expenses in the consolidated statement of income for the year ended March 31, 2016. The result of operation of the acquired business was included into Kyocera’s consolidated financial statements since the acquisition date. For segment reporting, it is reported in the Information Equipment Group.

	October 19, 2015
	(Yen in millions)
Cash and cash equivalents	¥	204
Trade receivables		1,079
Inventories		762
Others		569
Total current assets		2,614
Property, plant and equipment		222
Intangible assets		2,617
Others		424
Total non-current assets		3,263
Total assets		5,877
Current portion of long-term debt		364
Trade notes and accounts payable		391
Others		284
Total current liabilities		1,039
Deferred income taxes		539
Others		702
Total non-current liabilities		1,241
Total liabilities		2,280
Total identified assets and liabilities		3,597
The fair value of business as of October 19, 2015		5,733
Goodwill*	¥	2,136

* The total amount of goodwill is not expected to be deductible for tax purposes.

Kyocera has used the acquisition method of accounting to record assets acquired and liabilities assumed in accordance with ASC805, “Business Combinations.” The allocation of fair value to the acquired assets and assumed liabilities in this business combination was completed during the three months ended March 31, 2016. Acquisition-related costs of ¥129 million were included in selling, general and administrative expenses in the consolidated statement of income for the year ended March 31, 2016. The result of operation of the acquired business was included into Kyocera’s consolidated financial statements since the acquisition date. For segment reporting, it is reported in the Information Equipment Group.

	November 3, 2015
	(Yen in millions)
Cash and cash equivalents	¥	60
Trade receivables		190
Others		129
Total current assets		379
Property, plant and equipment		50
Intangible assets		1,113
Others		53
Total non-current assets		1,216
Total assets		1,595
Short-term borrowings		165
Trade notes and accounts payable		42
Accrued expense		219
Unearned income		133
Others		187
Total current liabilities		746
Deferred income taxes		361
Others		32
Total non-current liabilities		393
Total liabilities		1,139
Total identified assets and liabilities		456
The fair value of business as of November 3, 2015		3,508
Goodwill*	¥	3,052

* The total amount of goodwill is not expected to be deductible for tax purposes.

Summary of Intangible Assets Subject to Amortization Recorded Due to Acquisition

Intangible assets that Kyocera recorded due to this acquisition are summarized as follows:

	September 4, 2015
	(Yen in millions)
Intangible assets subject to amortization:
Technologies	¥	388
Customer relationships		887
Trademarks		465
Others		20
Total	¥	1,760

Intangible assets that Kyocera recorded due to this acquisition are summarized as follows:

	October 19, 2015
	(Yen in millions)
Intangible assets subject to amortization:
Customer relationships	¥	1,411
Trademarks		748
Others		458
Total	¥	2,617

Intangible assets that Kyocera recorded due to this acquisition are summarized as follows:

	November 3, 2015
	(Yen in millions)
Intangible assets subject to amortization:
Technologies	¥	478
Customer relationships		480
Trademarks		155
Total	¥	1,113

Intangible assets that Kyocera recorded due to this acquisition are summarized as follows:

	October 1, 2013
	(Yen in millions)
Intangible assets subject to amortization:
Technologies	¥	1,423
Customer relationships		1,200
Others		511
Total	¥	3,134