Notice Regarding The Recording Of Non-Operating Income And Income Taxes Deferred Due To The Liquidation Of North American Subsidiary Of Fujitsu Limited
By Ron Chen, Correspondent ASEAN Region
Fujitsu Limited has announced that it has made a resolution at its Board of Directors meeting held today, that Fujitsu will restructure its North American subsidiaries and consequently liquidate parts of its North American subsidiaries. As a result of this decision, Fujitsu expects to record non-operating income and income taxes-deferred due to the liquidation of Fujitsu America, Inc. , a US consolidated Subsidiary of Fujitsu, on a non-consolidated basis for the fiscal year ending March 2022.
Overview of the Restructuring
Established in 2009, FAI, together with several of its subsidiaries, has been providing IT services and selling and maintaining hardware products as Fujitsu’s North American base of operations.
FAI has been working on the restructuring of its business structure since fiscal 2019 in response to rapid changes in the North American market and the technology sector. Specifically, FAI has been working to streamline highly competitive hardware-related businesses and concentrate on IT services business.
In order to pursue synergies by integrating management resources that have been dispersed among multiple subsidiaries in the United States, Fujitsu has further been considering the option of restructuring its North American subsidiaries. The purpose of this restructuring is to reduce the number of subsidiaries by liquidating parts of its subsidiaries and to align the management structure with the capital structure.
Fujitsu will carry out the above mentioned restructuring of its North American subsidiaries as the final step of the restructuring process, following the completed restructuring of FAI’s business structure. Specifically, Fujitsu will consolidate its service business in North America by transferring FAI’s service business in the United States and shares of FAI’s subsidiaries to the newly integrated company, and liquidate FAI and parts of its subsidiaries. After the completion of the business integration, the newly integrated company will be renamed to “Fujitsu North America, Inc.”, and will restart as a specialized service company for North America.
