Ricoh 2003 Annual Report Download - page 40

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The significant transactions of Ricoh with these affiliates for the years ended
March 31, 2001, 2002 and 2003, and the related account balances at March 31,
2002 and 2003 are sum m arized as follows:
As of March 31, 2003, consolidated retained earnings included undistributed
earnings of 20% to 50% owned companies accounted for by the equity method in
the amount of ¥38,913 million ( $329,771 thousand) .
The unrealized profits regarding the above transactions were elim inated in
the consolidated financial statements.
Thousands of
U.S. dollars
2 0 0 3
Transactions—
Sales
Purchases
Dividend income
2 0 0 3
¥ 2 6 ,5 1 0
1 9 ,8 0 8
1 ,2 3 6
$224,661
1 6 7 ,8 6 4
1 0 ,4 7 5
2002
¥25,413
15,584
1,133
2001
¥20,952
13,673
1,008
Thousands of
U.S. dollars
2 0 0 3
Account balances—
Receivables
Payables
Millions of yen
2003
¥ 6 ,4 3 4
1 ,6 0 4
$ 5 4 ,5 2 5
1 3 ,5 9 3
2002
¥8,513
2,858
Millions of yen
Financial Position
$ 3 4 7 ,0 6 8
111,661
1,774,432
$2,233,161
¥ 4 0 ,9 5 4
1 3 ,1 7 6
209,383
¥ 2 6 3 ,5 1 3
¥ 41,852
13,972
208,298
¥264,122
Liabilities and shareholders’
investm ent—
Current liabilities
Other liabilities
Shareholders’ investm ent
Assets—
Current assets
Other assets
Thousands of
U.S. dollars
2 0 0 3
Millions of yen
2 0 0 3
$1,052,169
1,180,992
$2,233,161
¥ 1 2 4 ,1 5 6
139,357
¥ 2 6 3 ,5 1 3
¥122,974
141,148
¥264,122
2002
Sales
Costs and
expenses
Net incom e
Thousands of
U.S. dollars
2 0 0 3
Millions of yen
2 0 0 3
2002
$ 2 ,8 6 4 ,7 0 3
2 ,7 7 2 ,3 6 4
$ 9 2 ,3 3 9
¥338,035
3 2 7 ,1 3 9
¥ 1 0 ,8 9 6
¥288,992
277,950
¥ 11,042
2001
¥263,804
254,137
¥ 9,667
Oper ations
Proceeds from the sales of available-for-sale securities were ¥66,778 m illion,
¥24,568 m illion and ¥24,513 million ( $207,737 thousand) for the years ended
March 31, 2001, 2002 and 2003, respectively.
The gross realized gains on sales of available-for-sale securities were ¥2,898
million for the year ended March 31, 2001, and there were no significant realized
gains on sales of available-for-sale securities for the years ended March 31, 2002
and 2003. There were no significant realized losses on sales of available-for-sale
securities for the three years ended March 31, 2003. The losses on securities of
¥2,739 m illion and ¥2,260 m illion ( $19,153 thousand) for the years ended March
31, 2002 and 2003, respectively, were charged to other expense for declines in
market value of available-for-sale securities where the decline was determ ined to
be other than tem porary.
In March 2000, the Company contributed certain m arketable equity
securities, not including those of its subsidiaries and affiliated com panies, to
an employee retirem ent benefit trust fully administered and controlled by an
independent bank trustee, with no cash proceeds thereon. The transfer of the
available-for-sale securities was accounted for as a sale in accordance with
SFAS No. 125, “Accounting for Transfer and Servicing of Financial Assets and
Extinguishm ents of Liabilities” and accordingly the recorded pension liabil-
ity was reduced by the fair m arket value am ount of the transferred securities.
The fair value of these securities at the tim e of contribution was ¥20,760 m il-
lion. The net unrealized gains on these available-for-sale securities amount-
ing to ¥13,095 million continues to be included in “Accum ulated other
com prehensive income ( loss) ” on the consolidated balance sheets and will
only be reflected in realized gains in the statements of income upon the
future sale of the transferred securities by the trustee.
The investm ents in and advances to affiliates primarily relate to 20% to 50%
owned com panies. Included in these com panies is COCA-COLA WEST JAPAN
COMPANY, LIMITED, a 21.1% owned affiliate. The com m on stock of this com pany
is publicly traded. The carrying value of the investm ent in this com pany was
equal to its underlying book value and amounted to ¥37,529 m illion ( $318,042
thousand) as of March 31, 2003. The quoted m arket value of this com pany was
¥33,577 m illion ( $284,551 thousand) as of March 31, 2003.
Ricoh’s equity in the underlying net book values of the other 20% to 50%
owned com panies is approximately equal to their individual carrying values.
Summarized financial inform ation for all affiliates as of March 31, 2002 and
2003 and for the years ended March 31, 2001, 2002 and 2003 is as follows:
6 . INVESTMENTS IN AND ADVANCES TO AFFILIATES