Ricoh 2007 Annual Report Download - page 60

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Millions of Yen Thousands of U.S. Dollars
2006
2007 2007
Carrying Estimated Carrying Estimated Carrying Estimated
Amount Fair Value Amount Fair Value Amount Fair Value
Marketable securities and
Investment securities ¥ 36,581 ¥ 36,581
¥ 75,013 ¥ 75,013 $ 635,703 $ 635,703
Installment loans 52,295 52,404
52,648 52,697 446,169 446,585
Long-term indebtedness (195,626) (195,731)
(236,801) (229,981) (2,006,788) (1,948,992)
Interest rate swap agreements, net 1,175 1,175
751 751 6,364 6,364
Foreign currency contracts, net (1,147) (1,147)
633 633 5,364 5,364
Foreign currency options, net (270) (270)
(2) (2) (17) (17)
Limitations
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument.
These estimates 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 estimates.
19. SEGMENT INFORMATION
59 ANNUAL REPORT 2007
18. DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS
(a) Cash and cash equivalents, Time deposits, Trade
receivables, Short-term borrowings,
Current maturities of long-term indebtedness, Trade
payables and Accrued expenses
The carrying amounts approximate fair values because of the short
maturities of these instruments.
(b) Marketable securities and Investment securities
The fair value of the marketable securities and investment securities is
principally based on quoted market price.
(c) Installment loans
The fair value of installment loans is based on the present value of
future cash flows using the current rate for similar instruments of
comparable maturity.
(d) Long-term indebtedness
The fair value of each of the long-term indebtedness instruments is
based on the quoted price in the most active market or the present
value of future cash flows associated with each instrument discounted
using the current borrowing rate for similar instruments of comparable
maturity.
(e) Interest rate swap agreements
The fair value of interest rate swap agreements is estimated by
obtaining quotes from brokers.
(f) Foreign currency contracts and Foreign currency
options
The fair value of foreign currency contracts and foreign currency
options is estimated by obtaining quotes from brokers.
The estimated fair value of the financial instruments as of March 31,
2006 and 2007 is summarized as follows:
The operating segments presented below are the segments of Ricoh for
which separate financial information is available and for which a
measure of profit or loss is evaluated regularly by Ricoh’s management
in deciding how to allocate resources and in assessing performance.
The accounting policies of the segments are substantially the same as
those described in the summary of significant accounting policies, as
discussed in Note 2.
Ricoh’s operating segments are comprised of Office Solutions,
including copiers and related supplies, communications and
information systems, Industrial Products, including thermal media
and semiconductors, and Other, including optical discs and digital
cameras.
The following tables present certain information regarding Ricoh’s
operating segments and operations by geographic areas for the years
ended March 31, 2005, 2006 and 2007. During the year ended March
31, 2007, a subsidiary of the Company sold its content distribution
business. As a result of such sale, sales and operating income of such
business of ¥6,702 million and ¥4,397 million, ¥5,852 million and
¥3,430 million and ¥1,487 million ($12,602 thousand) and ¥865
million ($7,331 thousand) were reclassified as a discontinued
operation and was excluded from the segment data for all periods in
accordance with SFAS 144.