Epson 2013 Annual Report Download - page 25

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24
sales.
As a result, gross profit declined by ¥14,406 million, or 5.8%, to ¥234,439 million.
Selling, general and administrative expenses and operating income
Selling, general and administrative (SG&A) expenses declined by ¥11,035 million, or 4.9%, to ¥213,184
million. The decrease is mainly due to lower shipping costs, continued rigorous screening of spending
proposals because of the difficult economic environment, and reduced R&D spending.
As a result, operating income declined by ¥3,371 million, or 13.7%, ending at ¥21,255 million.
Segment income in each reporting segment was as follows.
Segment income in the information-related equipment segment was ¥52,670 million, down by ¥12,218
million (18.8%) compared to the previous period. The decline is primarily due to the effects of a drop in
sales of serial-impact dot matrix (SIDM) printers.
Segment income in the devices and precision products segment was ¥7,658 million, up ¥3,029 million
(65.4%) compared to the previous period. This increase is mainly due to higher income brought about by
cost reductions in quartz devices.
Other segment loss was ¥1,191 million, a ¥354 million improvement compared to the ¥1,545 million loss
incurred in the previous period.
As for adjustments, segment loss was ¥37,883 million, a ¥5,462 million improvement over the ¥43,345
million loss incurred in the previous period. Adjustments consisted primarily of patent royalties, R&D
expenses for basic research and new businesses that do not belong to a reporting segment, and SG&A
expenses, comprised of Head Office expenses.
Non-operating income and expenses
The net of non-operating income minus non-operating expenses was negative ¥3,625 million, a ¥6,021
million change from the ¥2,395 million in income posted in the previous period. The primary contributors
to the worsening of income were a decline in insurance payouts and a loss on foreign exchange totaling
¥2,944 million in the year under review, compared to a gain of ¥1,396 million in the previous period.
Ordinary income
Ordinary income was ¥17,629 million, a ¥9,393 million decline (34.8%) compared to the previous period.
Extraordinary income and losses
The net of extraordinary income minus extraordinary losses was negative ¥21,108 million, a ¥9,708 million
increase in loss from the ¥11,399 million loss recorded in the previous period. The expanded loss was
mainly due to an extraordinary loss of ¥25,792 million. Whereas the Company recorded a ¥14,043 million
extraordinary loss in the previous period due primarily to a litigation-related loss associated with the
payment of a settlement relating to allegations of involvement in an LCD price-fixing cartel, this fiscal year
the Company recorded a ¥16,268 million litigation-related loss, the majority of which was related to the
LCD price-fixing cartel settlement. Also this year the Company recorded a ¥4,605 million impairment
associated primarily with idle assets.
Income (loss) before income taxes and minority interests
Epson recorded a loss before income taxes and minority interests of ¥3,479 million, down ¥19,101 million
from the previous period.
Income taxes
Income taxes were ¥6,443 million, a ¥3,961 million (38.1%) decrease compared to the previous period. The
decrease is attributable to a decrease in overseas tax expenses compared to the previous period.