Ricoh 2009 Annual Report Download - page 51

50
ANNUAL REPORT 2009
To Our Shareholders
and Customers
Fiscal 2009
Highlights
Progress of the
16th MTP
Creating New
Customer Value
RICOH
Milestones
Sustainable Environ-
mental Management
Corporate Social
Responsibility
Financial
Section
Proceeds from the sales of available-for-sale securities were ¥96,087
million, ¥100,025 million and ¥243 million ($2,455 thousand) for the
years ended March 31, 2007, 2008 and 2009, respectively.
There were no significant realized gains and losses from the sales of
available-for-sale securities for the years ended March 31, 2007,
2008 or 2009.
There were no significant realized gains and losses on valuation of
available-for-sale securities for the years ended March 31, 2007 and
2008. The losses on impairment of available-for-sale securities for
the years ended March 31, 2009 were ¥26,543 million ($268,111
thousand).
As for unrealized gains (losses) on securities in accumulated other
comprehensive income (loss) and related reclassification
adjustments for (gains) losses realized in net income for the years
ended March 31, 2008 and 2009, refer to note 14 other
comprehensive income (loss).
The contractual maturities of debt securities classified as available-for-sale as of March 31, 2009, regardless of their balance sheet
classification, are as follows:
The investments in and advances to affiliates primarily relate to 20%
to 50% owned companies. Ricoh’s equity in the underlying net book
values of the companies is approximately equal to their individual
carrying values of ¥1,977 million and ¥1,248 million ($12,606
thousand) at March 31, 2008 and 2009, respectively.
On July 1, 2006, Coca-Cola West Japan Co., Ltd. (former affiliate
company) and Kinki Coca-Cola Bottling Co., Ltd. (former unrelated
company) established a joint holding company Coca-Cola West
Holdings Co., Ltd. by means of an exchange of shares. As a result,
proportion of ownership interest of Coca-Cola West Holdings Co.,
Ltd. by Ricoh decreased under 20% and Ricoh no longer has
significant influence, and according to Accounting Principles Board
(“APB”) Opinion No. 18, “The Equity Method of Accounting for
Investments in Common Stock,” Ricoh excluded these companies
from affiliate companies on October 1, 2006.
On November 30, 2007, Ricoh sold the part of shares of common
stock of Sindoh Co., Ltd. The gain on sale of the shares was not
material. As a result, proportion of ownership interest Sindoh Co., Ltd.
by Ricoh decreased under 20% and Ricoh no longer has significant
influence, and according to Accounting Principles Board (“APB”)
Opinion No. 18, “The Equity Method of Accounting for Investments in
Common Stock,” Ricoh excluded these companies from affiliate
companies on February 29, 2008.
Those securities are classified into available for sale security and
accounted in accordance with SFAS 115 and presented in Investment
securities in the balance sheet on March 31, 2008 and 2009.
7. INVESTMENTS IN AND ADVANCES TO AFFILIATES
Summarized financial information for all affiliates as of March 31,
2008 and 2009 and for the years ended March 31, 2007, 2008 and
2009 is as follows (some operation data for entities reflect only the
period the current affiliates and former affiliates were affiliates of
Ricoh and its subsidiaries’ affiliates):
Millions of Yen Thousands of U.S. Dollars
Cost Fair value Cost Fair value
Due after one year through five years
¥269 ¥269 $2,717 $2,717
Over five years
1,010 1,010 10,202 10,202
¥1,279 ¥1,279 $12,919 $12,919
Thousands of
Millions of Yen U.S. Dollars
Financial Position
2008
2009 2009
Assets:
Current assets
¥4,088
¥375 $3,788
Other assets
1,581
99 1,000
¥5,669
¥474 $4,788
Liabilities and shareholders’ investment:
Current liabilities ¥3,489
¥273 $2,757
Other liabilities 581
6 61
Shareholders’ investment 1,599
195 1,970
¥5,669
¥474 $4,788
Thousands of
Millions of Yen U.S. Dollars
Operations
2007 2008
2009 2009
Sales ¥193,753 ¥68,662
¥4,617 $46,636
Costs and expenses 186,199 64,013
4,785 48,333
Net income ¥ 7,554 ¥ 4,648
¥ (168) $ (1,697)