Ricoh 2009 Annual Report Download - page 68

67 ANNUAL REPORT 2009
Trading and Available-for-sale securities
Trading and Available-for-sale securities classified Level 1 in the fair
value hierarchy contains marketable securities and bonds.
Marketable securities and bonds are valued using a market approach
based on the quoted market prices of identical instruments in active
markets.
Derivative instruments
Ricoh uses foreign exchange contracts, foreign currency options
and interest rate swap agreements to manage exposure to the
variability of cash flow. These derivative instruments are classified
as Level 2 in the fair value hierarchy, since they are valued using
observable market data such as LIBOR-based yield curves.
Other investments
Other investments classified as Level 3 in the fair value hierarchy
20. SEGMENT INFORMATION
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 Imaging & Solutions,
including copiers and related supplies, communications and
information systems, Industrial Products, including thermal media
and semiconductors, and Other, including digital cameras, and so
on.
The following tables present certain information regarding Ricoh’s
operating segments and operations by geographic areas for the
years ended March 31, 2007, 2008 and 2009. 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 a
discontinued operation and was excluded from the segment data
for the years ended March 31, 2007.
(a) Operating Segment Information
represent the retained interests in securitizations of finance lease
receivables in which Ricoh valued using cash flows discounted by
an estimated interest rate reflecting underlying risks. The following
table presents a reconciliation of activity for such retained interests
on a net basis.
Thousands of
Millions of Yen U.S. Dollars
Other investments
2009 2009
Balance at beginning of period
5,887 59,465
Total gains or losses (realized and unrealized)
Included in net income
--
Included in other comprehensive income (loss)
- -
Sales, collections and repurchases, net
(1,594) (16,101)
Balance at end of period
4,293 43,364
Thousands of
Millions of Yen U.S. Dollars
2007 2008
2009 2009
Sales:
Imaging & Solutions ¥1,774,467 ¥1,909,573
¥1,833,098 $18,516,141
Industrial Products 138,112 148,883
119,671 1,208,798
Other 161,071 166,076
143,048 1,444,929
Intersegment transaction (4,725) (4,543)
(4,121) (41,626)
Consolidated ¥2,068,925 ¥2,219,989
¥2,091,696 $21,128,242
Operating expenses:
Imaging & Solutions ¥1,549,156 ¥1,674,940
¥1,687,732 $17,047,798
Industrial Products 135,164 144,708
124,597 1,258,555
Other 158,868 163,529
142,690 1,441,313
Intersegment transaction (4,727) (4,545)
(4,128) (41,697)
Unallocated expense 56,084 59,851
66,269 669,384
Consolidated ¥1,894,545 ¥2,038,483
¥2,017,160 $20,375,353
Operating income:
Imaging & Solutions ¥ 225,311 ¥ 234,633
¥ 145,366 $ 1,468,343
Industrial Products 2,948 4,175
(4,926) (49,757)
Other 2,203 2,547
358 3,616
Elimination and unallocated expense (56,082) (59,849)
(66,262) (669,313)
Consolidated ¥ 174,380 ¥ 181,506
¥ 74,536 $ 752,889
Other income (expenses) ¥ 139 ¥ (6,837)
¥ (43,597) $ (440,374)
Income from continuing operations before income taxes,
minority interests and equity in earnings of affiliates ¥ 174,519 ¥ 174,669
¥ 30,939 $ 312,515