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51 ANNUAL REPORT 2006
Limitations
Fair value estim ates are m ade at a specific point in tim e, based on relevant m arket information and information about the financial instrument.
These estim ates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with
precision. Changes in assumptions could significantly affect the estim ates.
1 7 . SEGMENT INFORMATION
The operating segments presented below are the segments of Ricoh for
which separate financial inform ation is available and for which a
measure of profit or loss is evaluated regularly by Ricoh’s managem ent
in deciding how to allocate resources and in assessing performance.
The accounting policies of the segm ents are substantially the same as
those described in the summ ary of significant accounting policies, as
discussed in Note 2.
Ricoh’s operating segm ents are com prised of Office Solutions, including
copiers and related supplies, comm unications and information system s,
Industrial Products, including therm al m edia and sem iconductors, and
Other, including optical discs and digital cameras.
In connection with the adoption of the 15th medium -term
management plan on April 1, 2005, Ricoh revised its business segm ents
for the year ended March 31, 2006. Presentation of business segments
for each of the years ended March 31, 2004 and 2005 have also been
revised to conform to current presentation.
The following tables present certain information regarding Ricoh’s
operating segments and operations by geographic areas for the years
ended March 31, 2004, 2005 and 2006.
( a) Operating Segment Information
Thousands of
Millions of Yen U.S. Dollars
2004 2005
2006 2006
Sales-
Office Solutions ¥1,460,395 ¥1,531,428
¥1,637,228 $13,993,402
Industrial Products 113,854 121,914
123,200 1,052,991
Other 208,458 163,272
157,226 1,343,812
Intersegment transaction ( 2,462) ( 2,506)
(2,564) (21,914)
Consolidated ¥1,780,245 ¥1,814,108
¥1,915,090 $16,368,291
Operating Expenses-
Office Solutions ¥1,261,444 ¥1,335,059
¥1,434,279 $12,258,795
Industrial Products 110,743 121,872
124,108 1,060,752
Other 201,508 167,431
151,114 1,291,573
Intersegment transaction ( 2,494) ( 2,475)
(2,594) (22,171)
Unallocated expense 59,038 56,715
56,169 480,077
Consolidated ¥1,630,239 ¥1,678,602
¥1,763,076 $15,069,026
Operating Income-
Office Solutions ¥198,951 ¥196,369
¥202,949 $1,734,607
Industrial Products 3,111 42
(908) (7,761)
Other 6,950 ( 4,159)
6,112 52,239
Elimination and unallocated expense ( 59,006) ( 56,746)
(56,139) (479,820)
Consolidated ¥150,006 ¥135,506
¥152,014 $1,299,265
Other Incom e( Expenses) ¥( 6,943) ¥ ( 123)
¥ 4 ,1 8 5 $ 3 5 ,7 6 9
Incom e before Income Taxes, Minority Interests, Equity in Earnings of
Affiliates and Cumulative Effect of Accounting Change ¥143,063 ¥135,383
¥156,199 $1,335,034