Ricoh 2009 Annual Report Download - page 66

65 ANNUAL REPORT 2009
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 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, 2008 and 2009 is summarized as follows:
As of March 31, 2009, Ricoh had outstanding contractual
commitments for acquisition or construction of property, plant and
equipment and other assets aggregating ¥36,485 million ($368,535
thousand).
As of March 31, 2009, Ricoh was also contingently liable for certain
guarantees including employees housing loans of ¥318 million
($3,212 thousand).
Ricoh made rental payments totaling ¥40,722 million, ¥45,379
million and ¥54,347 million ($548,960 thousand) for the years
ended March 31, 2007, 2008 and 2009, respectively, under
cancelable and non-cancelable operating lease agreements for
office space and machinery and equipment.
The minimum rental payments required under operating lease that
have lease terms in excess of one year as of March 31, 2009 are as
follows:
As of March 31, 2009, the Company and certain of its subsidiaries
were parties to litigation involving routine matters, such as patent
rights. In the opinion of management, the ultimate liability, if any,
resulting from such litigation will not materially affect the
consolidated financial position or the results of operations of Ricoh.
17. COMMITMENTS AND CONTINGENT LIABILITIES
Thousands of
Years ending March 31 Millions of Yen U.S. Dollars
2010 ¥24,208 $244,525
2011 20,894 211,051
2012 17,010 171,818
2013 13,916 140,566
2014 10,016 101,172
2015 and thereafter 13,399 135,343
Total ¥99,443 $1,004,475
Millions of Yen Thousands ofU.S. Dollars
2008
2009 2009
Carrying Estimated Carrying Estimated Carrying Estimated
amount fair value amount fair value amount fair value
Marketable securities and
Investment securities ¥ 71,244 ¥ 71,244
¥ 48,540 ¥ 48,540 $ 490,303 $ 490,303
Installment loans 54,863 54,852
60,781 60,754 613,949 613,677
Long-term indebtedness (225,930) (221,792)
(509,403) (500,774) (5,145,485) (5,058,323)
Interest rate swap agreements, net (594) (594)
(1,031) (1,031) (10,414) (10,414)
Foreign currency contracts, net 1,349 1,349
(2,994) (2,994) (30,242) (30,242)
Foreign currency options, net 100 100
(1,443) (1,443) (14,576) (14,576)