| (1) |
Changes in goodwill and other intangible assets for the year ended December 31, 2016 are as follows: |
| (In millions of yen) | ||||||||||||||||||||||||
|
Item |
Goodwill | Software(1) | Music rights | Customer relationships |
Others | Total | ||||||||||||||||||
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Acquisition cost |
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Balance at January 1, 2016 |
5,852 | 1,543 | 542 | 108 | 933 | 8,978 | ||||||||||||||||||
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Acquisitions |
— | 99 | — | — | 1,286 | 1,385 | ||||||||||||||||||
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Acquisition through a business combination(2) |
416 | 26 | — | 401 | — | 843 | ||||||||||||||||||
|
Deconsolidation of LINE BIZ Plus Ltd.(3) |
(126 | ) | — | — | — | — | (126 | ) | ||||||||||||||||
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Disposal |
— | (9 | ) | — | — | — | (9 | ) | ||||||||||||||||
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Exchange differences |
(550 | ) | (170 | ) | (109 | ) | (22 | ) | (36 | ) | (887 | ) | ||||||||||||
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Other |
— | (2 | ) | — | — | (174 | ) | (176 | ) | |||||||||||||||
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Balance at December 31, 2016 |
5,592 | 1,487 | 433 | 487 | 2,009 | 10,008 | ||||||||||||||||||
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Accumulated amortization and impairment |
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Balance at January 1, 2016 |
2,732 | 1,157 | 542 | 108 | 308 | 4,847 | ||||||||||||||||||
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Disposals |
— | (8 | ) | — | — | — | (8 | ) | ||||||||||||||||
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Amortization |
— | 153 | — | 125 | 688 | 966 | ||||||||||||||||||
|
Exchange differences |
(540 | ) | (169 | ) | (109 | ) | (21 | ) | (31 | ) | (870 | ) | ||||||||||||
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Other |
— | (4 | ) | — | — | (174 | ) | (178 | ) | |||||||||||||||
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Balance at December 31, 2016 |
2,192 | 1,129 | 433 | 212 | 791 | 4,757 | ||||||||||||||||||
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Carrying amounts |
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Balance at January 1, 2016 |
3,120 | 386 | — | — | 625 | 4,131 | ||||||||||||||||||
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Balance at December 31, 2016 |
3,400 | 358 | — | 275 | 1,218 | 5,251 | ||||||||||||||||||
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| (1) |
Software was mainly comprised of externally acquired software. The remaining useful life of software as of December 31, 2016 was two years. |
| (2) |
The balances were mainly related to the Group’s acquisition of M.T. Burn Inc. Refer to Note 29 Business Combinations for further details. |
| (3) |
Refer to Note 20 Supplemental Cash Flow Information for further details. |
| (2) |
Changes in goodwill and other intangible assets for the year ended December 31, 2017 are as follows: |
| (In millions of yen) | ||||||||||||||||||||||||||||
|
Item |
Goodwill | Software(1) | Music rights | Customer relationships |
Game publishing rights |
Others(2) | Total | |||||||||||||||||||||
|
Acquisition cost |
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Balance at January 1, 2017 |
5,592 | 1,487 | 433 | 487 | — | 2,009 | 10,008 | |||||||||||||||||||||
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Acquisitions |
— | 247 | — | — | — | 2,243 | 2,490 | |||||||||||||||||||||
|
Acquisition through business combinations(3) |
13,114 | 588 | — | 249 | 1,640 | 2,290 | 17,881 | |||||||||||||||||||||
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Disposal |
— | (57 | ) | — | — | — | (1,191 | ) | (1,248 | ) | ||||||||||||||||||
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Exchange differences |
387 | 84 | 27 | 5 | 109 | 83 | 695 | |||||||||||||||||||||
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Other |
— | 1 | — | — | — | 11 | 12 | |||||||||||||||||||||
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Balance at December 31, 2017 |
19,093 | 2,350 | 460 | 741 | 1,749 | 5,445 | 29,838 | |||||||||||||||||||||
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Accumulated amortization and impairment |
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Balance at January 1, 2017 |
2,192 | 1,129 | 433 | 212 | — | 791 | 4,757 | |||||||||||||||||||||
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Disposals |
— | (35 | ) | — | — | — | (242 | ) | (277 | ) | ||||||||||||||||||
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Amortization |
— | 210 | — | 108 | 270 | 1,039 | 1,627 | |||||||||||||||||||||
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Impairment |
— | — | — | — | — | 214 | 214 | |||||||||||||||||||||
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Exchange differences |
134 | 67 | 27 | 5 | 14 | 26 | 273 | |||||||||||||||||||||
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Other |
— | (9 | ) | — | — | — | 0 | (9 | ) | |||||||||||||||||||
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Balance at December 31, 2017 |
2,326 | 1,362 | 460 | 325 | 284 | 1,828 | 6,585 | |||||||||||||||||||||
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Carrying amounts |
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Balance at January 1, 2017 |
3,400 | 358 | — | 275 | — | 1,218 | 5,251 | |||||||||||||||||||||
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Balance at December 31, 2017 |
16,767 | 988 | — | 416 | 1,465 | 3,617 | 23,253 | |||||||||||||||||||||
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| (1) |
Software was mainly comprised of externally acquired software. The remaining useful life of software as of December 31, 2017 was three years. |
| (2) |
Others mainly was mainly comprised of 1,114 million yen for acquisition of licenses for LINE TV, 651 million yen for acquisition of domain name, and 437 million yen for acquisition of Gatebox Inc.’s trademark and patented technology. The carrying amounts as of December 31, 2017 of these intangible assets were 329 million yen, 646 million yen and 375 million yen, respectively. |
| (3) |
The balances were related to the Group’s acquisitions of NextFloor Corporation and its subsidiary as well as FIVE Inc. Refer to Note 29 Business Combinations for further details. |