Ricoh 2001 Annual Report Download - page 37

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The Company’s financial statem ents distributed to its shareholders in Japan
and filed with the Ministry of Finance in Japan are prepared in conformity with
Japanese accounting principles and accounting practices and are not consolidated.
Such financial statem ents reported the following am ounts for the three years end-
ed March 31, 2001:
3 . BASIS OF PRESENTING FINANCIAL STATEMENTS
The accounts of the Com pany and its dom estic subsidiaries are m aintained in
yen. The accompanying consolidated financial statem ents as of March 31, 2001
and for the three years then ended have been presented in yen, and for the conve-
nience of the reader the consolidated financial statem ents for fiscal 2001 have
also been presented in U.S. dollars by arithmetically translating all yen am ounts
by using the exchange rate of ¥126 to US$1 in effect at March 31, 2001.
The books of the Company and its dom estic subsidiaries are maintained in
conformity with Japanese accounting principles and accounting practices.
Foreign subsidiaries m aintain their books in conform ity with those of the coun-
tries of their domicile.
The accom panying financial statements are presented on a consolidated ba-
sis and reflect certain adjustm ents, not recorded in the com panies’ books, to pre-
sent 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 detach-
able stock purchase warrants, translating bonds in foreign currencies at the cur-
rent exchange rates, accounting for certain investments in debt and equity
securities, accounting for the impairm ent of long-lived assets and for long-lived
assets to be disposed of, adjusting accrued pension and severance costs and
certain other accrued expenses, accounting for sales-type leases and providing for
the income tax effect of such adjustments.
Net sales
Net income
Thousands of
U.S. dollars
2 0 0 1
$ 6 ,7 8 9 ,6 7 5
2 7 3 ,0 4 8
2 0 0 1
2000
¥855,499
3 4 ,4 0 4
¥777,501
22,613
1999
¥720,503
18,977
Millions of yen
The am ount 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 am ounted to ¥222,693 million ( $1,767,405 thousand) as of March 31,
2001 ( see Note 12) .
Since 1978, the Com pany has translated its consolidated financial statements
prepared in conform ity with accounting principles generally accepted in the Unit-
ed States of America for filing with the Ministry of Finance in Japan.
counting for Certain Derivative Instruments and Certain Hedging Activities,” an
amendment of FASB Statement No. 133. Statement 133, as amended, establishes
accounting and reporting standards requiring that every derivative instrument be
recorded in the balance sheet as either an asset or liability measured at its fair
value. The Statem ent requires that changes in the derivative instrum ent’s fair val-
ue be recognized currently in earnings unless specific hedge accounting criteria
are m et. SFAS 133, as amended, and 138 are effective for fiscal years beginning
after June 15, 2000. Ricoh adopted SFAS 133 and 138 as of April 1, 2001. The cu-
mulative effect adjustm ent upon the adoption of SFAS 133 and 138, net of the re-
lated income tax effect, resulted in a decrease to net income of approximately
¥66 m illion ( $524 thousand) and a decrease to other comprehensive income of
approxim ately ¥1,864 m illion ( $14,794 thousand) . The adoption of SFAS 133 and
138 will not alter Ricoh’s hedging strategies.
The pro forma results of operations are not necessarily indicative of the actual re-
sults of operations that would have occurred had the acquisition been m ade at
the beginning of the respective years or of results which may occur in the future.
4 . ACQUISITION
In January 2001, Ricoh com pleted a take-over bid ( “TOB”) for Lanier Worldwide,
Inc. ( “Lanier”) . As a result of this acquisition, Lanier became a wholly-owned
subsidiary that distributes Lanier brand name office equipment products in the
global m arketplace.
The TOB was accounted for as a purchase transaction. The excess of pur-
chase price over the estimated fair value of the net assets acquired in the TOB is
being amortized over 20 years.
The post-acquisition period for the 2 m onths ended March 31, 2001, was
consolidated in the accompanying financial statements. The following unaudited
pro forma inform ation presents the consolidated results of operations for the
years ended March 31, 2000 and 2001, as if the acquisition had occurred as of the
beginning of each year presented:
Net sales
Net income
Thousands of
U.S. dollars
2 0 0 1
$ 1 2 ,8 8 9 ,1 7 5
3 9 2 ,6 5 1
2 0 0 1
2000
¥ 1 ,6 2 4 ,0 3 6
4 9 ,4 7 4
¥1,574,465
43,861
Millions of yen
Net income per share of
comm on stock—
Basic
Diluted
U.S. dollars
2 0 0 1
$ 0 .5 7
0 .5 2
2 0 0 1
2000
¥ 7 1 .4 3
6 6 .0 3
¥63.41
58.63
Yen