Epson 2014 Annual Report Download - page 26

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Segment income in each reporting segment was as follows.
Segment income in the information-related equipment segment was ¥121,531 million, up ¥69,784 million
(134.9%) compared to the previous period. This increase is due to foreign exchange effects and the effect of
increased revenue from the Company’s main products.
Segment income in the devices and precision products segment was ¥9,733 million, up ¥1,094 million
(12.7%) compared to the previous period. This increase was due not only to the effects of foreign exchange
on the segment as a whole but also to the effect of cost reductions in the micro-devices business.
Segment loss in the sensing and industrial solutions segment was ¥10,183 million. This represents a ¥569
million increase to the ¥9,614 million loss reported in the previous period. Although Epson recorded
income growth in industrial robots and IC handlers, this growth was outstripped by widened losses in
industrial inkjet printing systems and sensing systems.
Other segment loss was ¥258 million, a ¥92 million increase in loss compared to the ¥165 million loss
reported in the previous period.
As for adjustments, segment loss was ¥35,854 million, a ¥6,504 million increase in loss compared to the
¥29,349 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 ¥6,847 million, a ¥3,221
million increase in loss from the ¥3,625 million loss recorded in the previous period. The main reason for
this result is that, while items such as interest income increased compared to the previous period, the net
loss on foreign exchange was ¥9,632 million in the year under review, compared to a loss of ¥2,944 million
in the previous period.
Ordinary income
Ordinary income was ¥78,121 million, a ¥60,492 million (343.1%) increase compared to the previous
period.
Extraordinary income and losses
The net of extraordinary income minus extraordinary losses was ¥6,204 million, a ¥14,903 million
improvement from the ¥21,108 million loss recorded in the previous period. The main reason for the lower
extraordinary loss was that litigation losses, which consisted primarily of payments to settle a lawsuit
involving allegations of involvement in an LCD price-fixing cartel, decreased by ¥14,041 million.
Income before income taxes and minority interests
Epson recorded income before income taxes and minority interests of ¥71,916 million, an increase of
¥75,395 million from the previous period.
Income taxes
Income taxes were ¥12,025 million, an ¥18,468 million decrease compared to the previous period. This
decrease is primarily the result of a ¥30,734 million income tax adjustment that the Company recorded after
analyzing potentially recoverable deferred tax assets in light of the Company’s FY2013 financial
performance and financial outlook for the 2014 fiscal year, and concluding that tax expenses would decline.
Minority interests in income
Minority interests in income for the period under review were ¥243 million, an increase of ¥74 million
(44.0%) compared to the previous period.
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