- 3 -
In the early and mid 1980's, Intergraph’s business grew
rapidly in the United States and in Europe. Outside the United
States, Intergraph conducted most of its business through foreign
subsidiaries. Intergraph and its U.S.-based affiliated companies
used the U.S. dollar as its functional currency.
On May 14, 1985, Intergraph in Japan organized Nihon
Intergraph KK (Nihon Intergraph) as a wholly owned, third-tier
subsidiary to market, sell, and service Intergraph's products.
Nihon Intergraph’s principal place of business was located in
Tokyo, Japan, and Nihon Intergraph used the Japanese yen as its
functional currency.
The Japanese market constituted the third largest market in
the world for the type of products developed by Intergraph, and a
number of Japanese nationals were hired from Intergraph’s chief
competitor in Japan to manage Nihon Intergraph. Intergraph
representatives expected that within Nihon Intergraph's first
year of operation Nihon Intergraph would be profitable.
Upon Nihon Intergraph's organization, Intergraph contributed
to Nihon Intergraph �100 million ($392,000)1 as paid-in capital.
Nihon Intergraph representatives estimated to personnel at
Citibank Tokyo that Nihon Intergraph would have sales revenue in
11 Unless otherwise indicated, parenthetical references to U.S.
dollars represent references either to Intergraph’s or to Nihon
Intergraph’s historical U.S. dollar cost for the referred-to
Japanese yen or to the historical U.S. dollar equivalent for the
referred-to Japanese yen.
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Last modified: May 25, 2011