Ricoh 2005 Annual Report Download - page 39

The investments in and advances to affiliates primarily relate to 20% to
50% owned companies. Included in these companies is COCA-COLA
WEST JAPAN COMPANY, LIMITED, a 21.3% owned affiliate. The
common stock of this company is publicly traded. The carrying value
of the investment in this company was equal to its underlying book
value and amounted to ¥36,603 million ( $342,084 thousand) as of
March 31, 2005. The quoted market value of Ricoh’s investment in this
company was ¥41,650 million ( $389,252 thousand) as of March 31,
2005.
Ricoh’s equity in the underlying net book values of the other 20% to
50% owned companies is approximately equal to their individual
carrying values of ¥10,239 million and ¥12,713 million ( $118,813
thousand) at March 31, 2004 and 2005 respectively.
Summarized financial information for all affiliates as of March 31,
2004 and 2005 and for the years ended March 31, 2003, 2004 and 2005
is as follows:
Financial Position
Thousands of
Millions of Yen U.S. Dollars
2004 2005 2005
Assets-
Current assets ¥104,916 ¥116,247 $1,086,421
Other assets 155,081 164,170 1,534,299
¥259,997 ¥280,417 $2,620,720
Liabilities and shareholders’ investment-
Current liabilities ¥ 37,954 ¥37,426 $349,776
Other liabilities 12,170 18,512 173,009
Shareholders’ investment 209,873 224,479 2,097,935
¥259,997 ¥280,417 $2,620,720
Operations
Thousands of
Millions of Yen U.S. Dollars
2003 2004 2005 2005
Sales ¥338,035 ¥317,512 ¥330,362 $3,087,495
Costs and expenses 327,139 307,665 315,729 2,950,738
Net income ¥ 10,896 ¥ 9,847 ¥ 14,633 $136,757
The significant transactions of Ricoh with these affiliates for the years
ended March 31, 2003, 2004 and 2005, and the related account
balances at March 31, 2004 and 2005 are summarized as follows:
Thousands of
Millions of Yen U.S. Dollars
2003 2004 2005 2005
Transactions-
Sales ¥26,510 ¥19,534 ¥19,365 $180,981
Purchases 19,808 18,714 27,286 255,009
Dividend income 1,236 1,064 1,154 10,785
Unrealized profits regarding the above transactions were eliminated in
the consolidated financial statements.
Thousands of
Millions of Yen U.S. Dollars
2004 2005 2005
Account balances-
Receivables ¥3,530 ¥3,416 $31,925
Payables 2,217 2,964 27,701
As of March 31, 2005, consolidated retained earnings included
undistributed earnings of 20% to 50% owned companies accounted for
by the equity method in the amount of ¥42,900 million ( $400,935
thousand) .
To Our Shareholders
and Customers
Review of Operations
(General Information by Business Area)
Technology Corporate Social
Responsibility Environment Financial Section
38
ANNUAL REPORT 2005
6 . INVESTMENTS IN AND ADVANCES TO AFFILIATES
7 . GOODWILL AND OTHER INTANGIBLE ASSETS
The information for intangible assets subject to amortization and for intangible assets not subject to amortization is as follows:
Millions of Yen
2004 2005
Gross carrying Accumulated Net carrying Gross carrying Accumulated Net carrying
amount amortization amount amount amortization amount
Other intangible assets subject to amortization:
Software ¥44,844 ¥( 20,286) ¥24,558 ¥58,681 ¥(28,277) ¥30,404
Trade name and customer base 12,699 ( 4,382) 8,317 29,937 (6,877) 23,060
Other 13,733 ( 4,802) 8,931 18,287 (3,848) 14,439
Total 71,276 ( 29,470) 41,806 106,905 (39,002) 67,903
Other intangible assets not subject to amortization
1,427 1,511
Total other intangible assets ¥43,233 ¥69,414