Ricoh 1999 Annual Report Download - page 40

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The Company’s financial statements distributed to its shareholders in
Japan and filed with the Ministry of Finance in Japan are prepared in confor-
mity with Japanese accounting principles and accounting practices and are
not consolidated. Such financial statements reported the following amounts
for the three years ended March 31, 1999:
3. BASIS OF PRESENTING FINANCIAL STATEMENTS
The accounts of the Company and its domestic subsidiaries are maintained
in yen. The accompanying consolidated financial statements as of March 31,
1999 and for the three years then ended have been presented in yen, and for
the convenience of the reader the consolidated financial statements for fiscal
1999 have also been presented in U.S. dollars by arithmetically translating
all yen amounts by using the exchange rate of ¥121 to US$1 in effect at
March 31, 1999.
The books of the Company and its domestic subsidiaries are maintained
in conformity with Japanese accounting principles and accounting practices.
Foreign subsidiaries maintain their books in conformity with those of the
countries of their domicile.
The accompanying financial statements are presented on a consolidated
basis and reflect certain adjustments, not recorded in the companies’ books,
to present them in conformity with accounting principles generally accepted
in the United States of America, modified for the accounting for stock splits
(see Note 2(m)). The principal adjustments relate to accounting for the
bonds with detachable stock purchase warrants, translating bonds in foreign
currencies at the current exchange rates, accounting for certain investments
in debt and equity securities, accounting for the impairment of long-lived
assets and for long-lived assets to be disposed of, adjusting estimated retire-
ment allowances and certain other accrued expenses, accounting for sales-
type leases and providing for the income tax effect of such adjustments and
other temporary differences.
The amount of retained earnings legally available for distribution (and
for the requisite appropriation to legal reserve) is that recorded in the Com-
pany’s books and amounted to ¥168,077 million ($1,389,066 thousand) as of
March 31, 1999 (see Note 12).
Since 1978, the Company has translated its consolidated financial state-
ments prepared in conformity with accounting principles generally accepted
in the United States of America for filing with the Ministry of Finance in
Japan.
Net sales
Net income
Thousands of
U.S. dollars
1999
$5,954,570
156,835
1999
1998
¥720,503
18,977
¥752,631
22,505
1997
¥698,837
19,816
Millions of yen
4. FINANCE RECEIVABLES
Finance receivables as of March 31, 1998 and 1999 are comprised of lease
receivables and installment loans.
The Company’s products are leased to customers primarily through Ricoh
Leasing Company, Ltd., a major subsidiary. These leases are accounted for as
sales-type leases in conformity with SFAS No.13. Revenues from sales-type
leases are recognized at the inception of the lease.
Information pertaining to Ricoh’s lease receivables as of March 31, 1998
and 1999 is as follows:
Minimum lease
payments receivable
Unearned income
Allowance for doubtful
receivables
Net lease receivables
Thousands of
U.S. dollars
1999
$3,051,124
(326,066)
(104,033)
$2,621,025
Millions of yen
1999
1998
¥ 407,461
(41,253)
(10,508)
¥ 355,700
¥ 369,186
(39,454)
(12,588)
¥ 317,144
As of March 31, 1999, the minimum lease payments receivable due in
each of the next five years and thereafter are as follows:
Thousands of
U.S. dollars
2000
2001
2002
2003
2004
2005 and thereafter
Total
$1,037,041
841,207
599,512
378,983
163,240
31,141
$3,051,124
Millions of yen
¥125,482
101,786
72,541
45,857
19,752
3,768
¥369,186
Years ending March 31
Installment loans as of March 31, 1998 and 1999 are primarily comprised
of housing loans and term loans aggregating ¥23,782 million and ¥33,240
million ($274,711 thousand), respectively.