Ricoh 2008 Annual Report Download - page 59

To Our Shareholders
and Customers
Fiscal 2008 Highlights
Fiscal 2008 Milestones 16th Mid-Term
Management Plan
Corporate Governance /
CSR
Financial Section
Sustainable Environmental
Management
58
ANNUAL REPORT 2008
Millions of Yen Thousands of U.S. Dollars
2007 2008 2008
Carrying Estimated Carrying Estimated Carrying Estimated
Amount Fair Value Amount Fair Value Amount Fair Value
Marketable securities and
Investment securities ¥ 75,013 ¥ 75,013 ¥ 71,244 ¥ 71,244 $ 712,440 $ 712,440
Installment loans 52,648 52,697 54,863 54,852 548,630 548,520
Long-term indebtedness (236,801) (229,981) (225,930) (221,792) (2,259,300) (2,217,920)
Interest rate swap agreements, net 751 751 (594) (594) (5,940) (5,940)
Foreign currency contracts, net 633 633 1,349 1,349 13,490 13,490
Foreign currency options, net (2) (2) 100 100 1,000 1,000
Limitations
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial
instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be
determined with precision. Changes in assumptions could significantly affect the estimates.
19. SEGMENT INFORMATION
18. DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS
(a)
Cash and cash equivalents, Time deposits, Trade
receivables, Short-term borrowings,
Current maturities of long-term indebtedness, Trade
payables and Accrued expenses
The carrying amounts approximate fair values because of the short
maturities of these instruments.
(b)
Marketable securities and Investment securities
The fair value of the marketable securities and investment
securities is principally based on quoted market price.
(c) Installment loans
The fair value of installment loans is based on the present value of
future cash flows using the current interest rate for similar
instruments of comparable maturity.
(d) Long-term indebtedness
The fair value of each of the long-term indebtedness instruments is
based on the quoted price in the most active market or the present
value of future cash flows associated with each instrument
discounted using the current borrowing rate for similar
instruments of comparable maturity.
(e) Interest rate swap agreements
The fair value of interest rate swap agreements is estimated by
obtaining quotes from brokers.
(f) Foreign currency contracts and Foreign
currency options
The fair value of foreign currency contracts and foreign currency
options is estimated by obtaining quotes from brokers.
The estimated fair value of the financial instruments as of March
31, 2007 and 2008 is summarized as follows:
The operating segments presented below are the segments of
Ricoh for which separate financial information is available and for
which a measure of profit or loss is evaluated regularly by Ricoh’s
management in deciding how to allocate resources and in
assessing performance. The accounting policies of the segments
are substantially the same as those described in the summary of
significant accounting policies, as discussed in Note 2.
Ricoh’s operating segments are comprised of Office Solutions,
including copiers and related supplies, communications and
information systems, Industrial Products, including thermal media
and semiconductors, and Other, including optical discs and digital
cameras.
The following tables present certain information regarding Ricoh’s
operating segments and operations by geographic areas for the
years ended March 31, 2006, 2007 and 2008. During the year
ended March 31, 2007, a subsidiary of the Company sold its
content distribution business. As a result of such sale, sales and
operating income of such business were reclassified as
discontinued operations and was excluded from the segment data
for the years ended March 31, 2006 and 2007 in accordance with
SFAS 144.