Nikon 2016 Annual Report Download - page 78

76 NIKON REPORT 2016
24. Segment Information
(1) Description of Reportable Segments
The business segments that the Group reports are the business units
for which the Company is able to obtain discrete nancial information
separately in order for the Board of Directors to conduct periodic
investigation to determine distribution of management resources and
evaluate their business results.
From the year ended March 31, 2016, the reportable segments
were changed from the prior “Precision Equipment,” “Imaging
Products,” and “Instruments” to “Precision Equipment,” “Imaging
Products,” “Instruments,” and “Medical” by adding the “Medical”
segment.
Under the Medium-Term Management Plan, “Next 100–Transform
to Grow,” announced in June 2014, the Group added the Medical
Business to its main operations and fully entered the business through
the acquisition of Optos Plc. As such, the Group came to the conclusion
that it is reasonable to disclose the “Medical” segment as a discrete
reportable segment.
The Precision Equipment Business provides products and services
with regard to semiconductor lithography systems and FPD lithography
systems. The Imaging Products Business provides products and ser-
vices related to imaging products and its peripheral domain, such as
digital SLR cameras, compact digital cameras and interchangeable
camera lenses. The Instruments Business provides products and ser-
vices in relation to microscopes, measuring instruments, X-ray / CT
inspection systems, etc. The Medical Business provides retinal diag-
nostic imaging equipment and services of Optos Plc.
(2) Methods of Measurement for the Amounts of Sales, Prot
(Loss), Assets, and Other Items for Each Reportable Segment
The accounting policies of each reportable segment are consistent
with those disclosed in Note 2, “Summary of Signicant Accounting
Policies.” Figures for segment prot (loss) are on an operating income
(loss) basis. Intersegment sales or transfers are based on current
market prices.
(3) Information on Sales, Prot (Loss), Assets, and Other Items
Millions of Yen
Reportable Segments
Precision
Equipment
Imaging
Products Instruments Total Other Total Reconciliations Consolidated
For the year ended March 31,
2015
Sales:
Sales to external customers ¥170,758 ¥586,019 ¥72,382 ¥829,159 ¥28,623 ¥857,782 ¥857,782
Intersegment sales or transfers 382 475 836 1,693 20,520 22,213 ¥ (22,213)
Total ¥171,140 ¥586,494 ¥73,218 ¥830,852 ¥49,143 ¥879,995 ¥ (22,213) ¥857,782
Segment prot (loss) ¥ 8,355 ¥ 56,699 ¥ 1,199 ¥ 66,253 ¥ 6,792 ¥ 73,045 ¥ (29,633) ¥ 43,412
Segment assets 199,389 224,197 61,521 485,107 67,998 553,105 419,840 972,945
Other:
Amortization of goodwill 684 684 684 684
Depreciation and amortization 7,723 18,814 1,619 28,156 5,800 33,956 4,502 38,458
Increase in property,
plant and equipment and
intangible assets 6,034 8,329 1,789 16,152 8,366 24,518 8,032 32,550
Notes: 1. The “Other” category includes operations not included in the reportable segments, including the Glass Business and the Customized Products Business.
2. Reconciliation of segment prot (loss) includes elimination of intersegment transactions of ¥311 million and corporate expenses of minus ¥29,944 million. In addition,
reconciliations of segment asset adjustments include corporate assets not allocated to the respective reportable segments of ¥431,709 million and the elimination of intersegment
transactions of minus ¥11,869 million. The principal components of corporate assets are surplus funds (cash and deposits) held by the Company and its consolidated subsidiaries,
long-term investments (investment securities), deferred tax assets, and some intersegment xed assets.
3. Reconciliation is made between segment prot (loss) and operating income reported in the consolidated nancial statements.