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62 SHARP CORPORATION
Financial Section
General information about reportable segments
The Company’s chief operating decision maker is its Board of
Directors. The Company’s reportable segments are components
of the Group that engage in business activities, whose operating
results are regularly reviewed by the Board of Directors when
making resource allocation and performance assessment deci-
sions, and for which discrete financial information is available.
The Group’s reportable segments consist of the Product Busi-
ness segment and the Device Business segment.
The Company Group’s reportable segments were Consumer/
Information Products and Electronic Components in the year
ended March 31, 2013. Due to a reform of the organization
on April 1, 2013, the Consumer/Information Products segment
changed to the Product Business segment and the Electronic
Components segment changed to the Device Business segment
in the year ended March 31, 2014. The Solar Cells business
which was previously included in the Electronic Components
segment is included in the Product Business segment.
The Product Business segment includes digital information
equipment, health and environmental equipment, solar cells and
business solutions products.
The Device Business segment includes LCDs and electronic
device products.
Information about reported segment income or loss, segment
assets and other material items for the years ended March 31,
2012, and 2013 is described based on the new segment clas-
sifications.
The accounting policies for the reportable segments are consist-
ent with the Company’s accounting policies used in the prepara-
tion of its consolidated financial statements. Intersegment sales
and income (loss) are recognized based on current market prices.
Segment profit and loss is determined as operating profit less
basic research and development costs and administrative ex-
penses related to the Company’s corporate headquarters.
Depreciable assets of sales and distribution groups of the
Company’s headquarters and the sales subsidiaries depreciable
assets not directly allocated to product groups are not allocated
to reportable segments. On the other hand, depreciation and
amortization of these assets are allocated to reportable seg-
ments based on mainly sales of each reportable segment.
Basis of measurement of reported segment income or loss, segment assets and other material items
12. Segment Information
In addition, for the year ended March 31, 2014, the amount of cost recognized for defined contribution pension plans was ¥1,279
million ($12,539 thousand).
The discount rate used by the Company and its domestic con-
solidated subsidiaries for the year ended March 31, 2014 was
1.5%.
Long-term expected rate of return
Current and target asset allocations, historical and expected returns on various categories of plan assets have been considered in de-
termining the long-term expected rate of return.
The Long-term expected rate of return used by the Company
and its domestic consolidated subsidiaries for the year ended
March 31, 2014 was 3.0%.