(3) Date of the acquisition (2) Major reasons for the acquisition (4) Legal form of the acquisition and names of the companies after  the acquisition (5) Ownership ratios acquired (b) Period of results of the acquired companies included in the  consolidated financial statements of the Company is July 1,  2009 to December 31, 2009. (c) Cost of acquisition, amount of goodwill and negative goodwill,  reasons for recording goodwill and negative goodwill, amortiza- tion method and amortization period of goodwill and negative  goodwill: Goodwill was recorded due to the excess earnings power in the  future expected from the business development going forward  including synergy effects. Negative goodwill was recorded due to the fair value of the net  assets at the time of acquisition exceeding the acquisition costs.  The difference between the two amounts is regarded as negative  goodwill. Goodwill and negative goodwill are the sum of those incurred at  each company. Reasons for recording goodwill and negative goodwill Cost of acquisition Amount of goodwill and negative goodwill Amortization method and amortization period (d) The estimated fair values of the assets acquired and the liabili- ties assumed at the acquisition date are as follows: Goodwill and negative goodwill are being amortized over a period  of five years. However, when the excess of cost over net assets of  subsidiaries acquired is insignificant, the amount is charged to  income when incurred. 4. Inventories Inventories at March 31, 2010 and 2009 consisted of the following: JS Group Corporation Annual Report 2010 67 Note: Above ownership ratios include those owned indirectly. Legal Form of the Acquisition Name of the Companies after the Acquisition  Share acquisition by cash on hand (excluding the above (1)* 1 and (1)* 2  companies) Millions of Yen Thousands of U.S. Dollars 2010 2009 2010 Merchandise and finished products ¥ 75,324 ¥ 89,130 $ 809,586 Work in process 11,492 13,982 123,521 Raw materials 26,440 25,988 284,177 Other inventories 13,346 12,446 143,443 Total ¥126,602 ¥141,546 $1,360,727 Millions of Yen Thousands of U.S. Dollars Current assets ¥ 14,299 $ 153,688 Non-current assets 11,244 120,850 Total assets acquired ¥ 25,543 $ 274,538 Current liabilities ¥(10,580) $(113,720) Long-term liabilities (1,237) (13,290) Total liabilities assumed ¥(11,817) $(127,010) Millions of Yen Thousands of U.S. Dollars Goodwill ¥3,128 $33,624 Negative goodwill 1,396 15,005 Millions of Yen Thousands of U.S. Dollars Cost of acquisition ¥13,513 $145,239 Acquisition expense 478 5,141 Acquisition cost ¥13,991 $150,380 For the Group to acquire a strong sales network in the Asian region  and to generate a number of expected synergies, such as efficient  sales expansion of existing products by the usage of the acquired  sales network, and strengthening production capacity in addition to  the current production sites, especially from the product distribution  perspective. A-S CHINA PLUMBING PRODUCTS Ltd. and the above (1)* 1  com- panies were acquired on July 20, 2009, the rest of the companies  were acquired on July 2, 2009. A-S CHINA PLUMBING PRODUCTS Ltd. A-S CHINA Co., Ltd. AMERICAN STANDARD JIANGMEN FITTINGS Co., Ltd. A-S (SHANGHAI) POTTERY Co., Ltd. A-S (GUANGZHOU) ENAMELWARE Co., Ltd. HUA MEI SANITARY WARE Co., Ltd. A-S (TIANJIN) POTTERY Co., Ltd. AMERICAN STANDARD B&K (THAILAND) PUBLIC Co., Ltd. IDEAL STANDARD (THAILAND) Ltd. CERAMIC SANITARYWARE Pte. Ltd. AMERICAN STANDARD VIETNAM, Inc. PT AMERICAN STANDARD INDONESIA AMERICAN STANDARD KOREA, Inc. AMERICAN STANDARD PHILIPPINES LIMITED, Co. AMERICAN STANDARD BATH&KITCHEN INDIA Pte. Ltd. A-S CHINA PLUMBING PRODUCTS Ltd.  100% A-S CHINA Co., Ltd.  100 AMERICAN STANDARD JIANGMEN FITTINGS Co., Ltd. 100 A-S (SHANGHAI) POTTERY Co., Ltd.  82 A-S (GUANGZHOU) ENAMELWARE Co., Ltd.  82 HUA MEI SANITARY WARE Co., Ltd.  67 A-S (TIANJIN) POTTERY Co., Ltd.  100  AMERICAN STANDARD B&K (THAILAND) PUBLIC Co., Ltd.  99 IDEAL STANDARD (THAILAND) Ltd.  100 CERAMIC SANITARYWARE Pte. Ltd.  100 AMERICAN STANDARD VIETNAM, Inc.  84 AMERICAN STANDARD KOREA, Inc.  100 PT AMERICAN STANDARD INDONESIA  100 AMERICAN STANDARD PHILIPPINES LIMITED, Co.  100 AMERICAN STANDARD BATH&KITCHEN INDIA Pte. Ltd. 100