Annual Report 2013

2. Major Breakdown of Assets and Liabilities of Newly Consolidated Companies throughShare Acquisition by the Company:The major breakdown of the assets and liabilities of Sogo Energy Corporation, newlyconsolidated into the accounts of the Company through its share acquisition during theFY2012, and relations between the total amount of the shares of the newly consolidatedsubsidiary acquired by the Company and net payments from such acquisition at the timewhen the consolidation became effective, are stated as follows:(Millions of yen)FY2012From April 1, 2012 to March 31, 2013 (As of March 31, 2013)Current assets ?22,188Noncurrent assets ?7,406Goodwill ?3,476Current liabilities ?(23,323)Noncurrent liabilities ?(3,084)Minority interests ?(0)Total amount of the shares of the newly consolidated subsidiaryacquired by the Company ?6,663Transfer amount from investment securities ?(7)Cash and cash equivalents of the newly consolidated subsidiaries ?(388)Balance: Purchase of investments in subsidiary resulting in changein scope of consolidation ?6,268(Segment information)1. Overview of Reporting SegmentsThe reporting segments of the Cosmo Group are comprised of those entities whereobtaining separate fi nancial reports are possible and those which the board membersregularly review and decide distribution of management resources.The Cosmo Group conducts “Petroleum Business”, “Petrochemicals Business” and“Petroleum Exploration and Production Business” and Cosmo Oil or its affi liatecompanies operate these businesses independently depending on the type of services orproducts handled.Therefore the 3 reporting segments by the Cosmo Group are, “Petroleum Business”,“Petrochemicals Business” and Petroleum Exploration and Production Business, based onthe services and/or the products handled.In further detail, “Petroleum Business” produces and markets gasoline, naphtha,kerosene, diesel, fuel oil, crude oil, lubricants, LPG, asphalt, etc. “Petrochemicals Business”produces and markets mixed xylene, para-xylene, benzene, toluene, solvents, etc. PetroleumExploration and Production Business explores and produces crude oil.2. Methods to Determine Net Sales, Income or Loss, Assets, Liabilities and Other Items byBusiness SegmentThe accounting methods by business segment reported herein are almost the same as thedescription of the “Notes concerning Important Items that Provide the Basic Informationfor the Development of the Consolidated Financial Statements”.Profi t by business segment is stated on an ordinary income basis.3. Information about net sales and income or loss amounts by segment reportedFY2011(From April 1, 2011 to March 31, 2012)(Millions of yen)PetroleumbusinessPetrochemicalbusinessOil explorationand productionbusiness Other Note: 1AdjustmentsNote: 2ConsolidatedNote: 3Net salesOutside customers 3,031,193 12,715 43,457 22,380 ? 3,109,746Inter-segment 24,435 16,706 44,187 49,248 (134,577) ?Total 3,055,628 29,422 87,644 71,628 (134,577) 3,109,746Segment Income (Loss) 7,996 2,079 52,023 2,879 (3,558) 61,420Other itemsDepreciation andamortization 32,163 969 6,086 1,358 (839) 39,738Amortization of goodwilland negative goodwill (6) ? ? 1,257 ? 1,251Interest income 82 3 26 39 (32) 119Interest expenses 12,041 4 136 173 (32) 12,323Equity earnings ofaffi liates (Loss) (10) 1,231 1,739 (26) ? 2,933Note: 1 Other is segment of non-classifi ed, including construction works, insurance agency, leasing, travel agency and windpower generation, etc.2 Segment Income (Loss) in “Adjustments” ?-3,558 million includes ?-724 million for internal eliminations, ?-2,735million for inventory adjustments and ?-93 million for adjustment of noncurrent assets.3 Segment Income (Loss) is adjusted to ordinary income of consolidated statements of income.4 No asset allocation is made into each segment, so that the description of such information is omitted.