Idea Transcript
Ricoh Company, Ltd. Condensed Consolidated Financial Statements for the Nine Months Ended December 31, 2016 This is an English translation of the Quarterly Securities Report (Shihanki Hokokusho) for the nine months ended December 31, 2016 pursuant to the Japanese Financial Instrument and Exchange Law.
Condensed Consolidated Statement of Financial Position Ricoh Company, Ltd. and Consolidated Subsidiaries
Millions of Yen As of As of March 31, 2016 December 31, 2016
ASSETS Current assets: Cash and cash equivalents Time deposits Trade and other receivables Other financial assets Inventories Other current assets Total current assets
167,547 973 564,204 272,347 207,092 61,032 1,273,195
193,154 658 542,450 277,251 234,717 60,600 1,308,830
Non-current assets: Property, plant and equipment Goodwill and intangible assets Other financial assets Investments accounted for using the equity method Other investments Other non-current assets Deferred tax assets Total non-current assets Total assets
276,551 413,836 620,171 935 67,084 38,905 85,784 1,503,266 2,776,461
274,912 405,615 636,416 971 78,968 39,815 89,379 1,526,076 2,834,906
1
Millions of Yen As of As of March 31, 2016 December 31, 2016
LIABILITIES AND EQUITY Current liabilities: Bonds and borrowings (Note 5) Trade and other payables Other financial liabilities Income tax payables Other current liabilities Total current liabilities
260,755 286,123 1,820 15,220 242,950 806,868
345,100 275,110 1,532 13,441 253,439 888,622
Non-current liabilities: Bonds and borrowings (Note 5) Other financial liabilities Accrued pension and retirement benefits Other non-current liabilities Deferred tax liabilities Total non-current liabilities Total liabilities
592,045 3,745 139,049 82,392 4,598 821,829 1,628,697
599,899 2,542 132,893 72,456 8,558 816,348 1,704,970
Equity: Common stock Additional paid-in capital Treasury stock Other components of equity Retained earnings Total equity attributable to owners of the parent Non-controlling interests Total equity Total liabilities and equity
135,364 186,423 (37,312) 114,914 678,424 1,077,813 69,951 1,147,764 2,776,461
135,364 186,423 (37,315) 118,610 653,388 1,056,470 73,466 1,129,936 2,834,906
The accompanying notes are an integral part of these condensed consolidated financial statements.
2
Condensed Consolidated Statement of Profit or Loss Ricoh Company, Ltd. and Consolidated Subsidiaries Nine months ended December 31, 2015 and 2016 Millions of Yen Nine months ended Nine months ended December 31, 2015 December 31, 2016 Sales: (Note 4) Products Post sales and rentals Other revenue Total sales Cost of sales: Products Post sales and rentals Other revenue Total cost of sales Gross profit Selling, general and administrative expenses (Note 8) Other income Operating profit Finance income Finance costs Share of profit (loss) of investments accounted for using the equity method Profit before income tax expenses Income tax expenses Profit for the period Profit attributable to: Owners of the parent Non-controlling interests
750,151 820,672 73,033 1,643,856
663,443 732,841 73,142 1,469,426
(550,393) (380,120) (40,600) (971,113) 672,743 (605,231) 17,948 85,460 3,784 (8,127)
(501,068) (342,331) (40,519) (883,918) 585,508 (559,138) 2,205 28,575 3,599 (6,045)
66 81,183 (25,718) 55,465
33 26,162 (17,539) 8,623
51,415 4,050
4,114 4,509
Yen Nine months ended Nine months ended December 31, 2015 December 31, 2016 Earnings per share (attributable to owners of the parent): (Note 9) Basic Diluted
70.93 -
5.68 -
The accompanying notes are an integral part of these condensed consolidated financial statements. * Gain on sales of property, plant and equipment and others are included in “other income”.
3
Three months ended December 31, 2015 and 2016 Millions of Yen Three months ended Three months ended December 31, 2015 December 31, 2016 Sales: (Note 4) Products Post sales and rentals Other revenue Total sales Cost of sales: Products Post sales and rentals Other revenue Total cost of sales Gross profit Selling, general and administrative expenses (Note 8) Other income Operating profit Finance income Finance costs Share of profit (loss) of investments accounted for using the equity method Profit before income tax expenses Income tax expenses Profit for the period Profit attributable to: Owners of the parent Non-controlling interests
250,020 273,605 25,053 548,678
226,067 247,304 24,612 497,983
(183,009) (126,236) (13,426) (322,671) 226,007 (197,070) 405 29,342 353 (2,092)
(170,424) (115,771) (13,505) (299,700) 198,283 (186,844) 586 12,025 149 (1,288)
18 27,621 (9,533) 18,088
(18) 10,868 (10,238) 630
16,872 1,216
(888) 1,518
Yen Three months ended Three months ended December 31, 2015 December 31, 2016 Earnings per share (attributable to owners of the parent): (Note 9) Basic Diluted
23.28 -
(1.23) -
The accompanying notes are an integral part of these condensed consolidated financial statement. * Gain on sales of property, plant and equipment and others are included in “other income”.
4
Condensed Consolidated Statement of Comprehensive Income Ricoh Company, Ltd. and Consolidated Subsidiaries Nine months ended December 31, 2015 and 2016
Profit for the period Other comprehensive income (loss): Components that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plan Total components that will not be reclassified subsequently to profit or loss Components that will be reclassified subsequently to profit or loss: Net gain on fair value of available-for-sale financial assets Net gain (loss) on fair value of cash flow hedges Exchange differences on translation of foreign operations Total components that will be reclassified subsequently to profit or loss Total other comprehensive income (loss) Comprehensive income Comprehensive income attributable to: Owners of the parent Non-controlling interests
Millions of Yen Nine months ended Nine months ended December 31, 2015 December 31, 2016 55,465 8,623
1,505 1,505
(154) (154)
4,047 (157) (7,210) (3,320)
8,519 398 (5,348) 3,569
(1,815) 53,650
3,415 12,038
50,011 3,639
7,656 4,382
The accompanying notes are an integral part of these condensed consolidated financial statements.
5
Three months ended December 31, 2015 and 2016
Profit for the period Other comprehensive income (loss): Components that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plan Total components that will not be reclassified subsequently to profit or loss Components that will be reclassified subsequently to profit or loss: Net gain on fair value of available-for-sale financial assets Net gain on fair value of cash flow hedges Exchange differences on translation of foreign operations Total components that will be reclassified subsequently to profit or loss Total other comprehensive income (loss) Comprehensive income Comprehensive income attributable to: Owners of the parent Non-controlling interests
Millions of Yen Three months ended Three months ended December 31, 2015 December 31, 2016 18,088 630
1,505 1,505
(2) (2)
2,305 144 (5,898) (3,449)
8,996 1,231 75,573 85,800
(1,944) 16,144
85,798 86,428
14,982 1,162
84,438 1,990
The accompanying notes are an integral part of these condensed consolidated financial statements.
6
Condensed Consolidated Statement of Changes in Equity Ricoh Company, Ltd. and Consolidated Subsidiaries (Millions of Yen) Other components of equity Additional
Common
Treasury
paid-in
Stock
Remeasurement of
stock
capital
defined benefit plan
Balance as of April 1, 2015
135,364
186,083
(37,295)
Net gain(loss) on
Net gain(loss)
fair value of
on fair value of
available-for-sale
cash flow
financial assets
hedges
-
17,082
803
1,505
4,120
(45)
1,505
4,120
(45)
Profit for the period Other comprehensive income (loss) Comprehensive income:
-
-
Net change in
(15)
treasury stock Dividends declared and approved to owners (Note 6) Transfer from other
(1,505)
components of equity to retained earnings Acquisition of
340
non-controlling interests Total transactions with owners Balance as of December 31, 2015
-
340
(15)
(1,505)
-
-
135,364
186,423
(37,310)
-
21,202
758
Other components of equity Equity
Exchange
Total other
differences on
components
Retained
attributable to
Non-controlling
translation of
of equity
earnings
owners of the
interests
Total equity
parent
foreign operations Balance as of April 1, 2015
135,662
153,547
646,468
1,084,167
70,145
1,154,312
51,415
51,415
4,050
55,465
(1,404)
(411)
(1,815)
50,011
3,639
53,650
Profit for the period Other comprehensive income (loss) Comprehensive income:
(6,984)
(1,404)
(6,984)
(1,404)
51,415
Net change in
(15)
treasury stock
(15)
Dividends declared and approved to
(25,009)
(25,009)
1,505
-
(882)
(25,891)
owners (Note 6) Transfer from other
(1,505)
components of equity
-
to retained earnings Acquisition of non-controlling interests Total transactions with owners Balance as of December 31, 2015
340
(2,608)
(2,268)
-
(1,505)
(23,504)
(24,684)
(3,490)
(28,174)
128,678
150,638
674,379
1,109,494
70,294
1,179,788
7
(Millions of Yen) Other components of equity Additional
Common
Treasury
paid-in
Stock
Remeasurement of
stock
capital
defined benefit plan
Balance as of April 1, 2016
135,364
186,423
(37,312)
Net gain(loss) on
Net gain(loss)
fair value of
on fair value of
available-for-sale
cash flow
financial assets
hedges
-
23,617
(267)
(154)
8,524
399
(154)
8,524
399
Profit for the period Other comprehensive income (loss) Comprehensive income:
-
-
-
Net change in
(3)
treasury stock Dividends declared and approved to owners (Note 6) Transfer from other
154
components of equity to retained earnings Acquisition of non-controlling interests Total transactions with owners Balance as of December 31, 2016
-
-
(3)
154
-
-
135,364
186,423
(37,315)
-
32,141
132
Other components of equity Equity
Exchange
Total other
differences on
components
Retained
attributable to
Non-controlling
translation of
of equity
earnings
owners of the
interests
Total equity
parent
foreign operations Balance as of April 1, 2016
91,564
114,914
678,424
1,077,813
69,951
1,147,764
4,114
4,114
4,509
8,623
3,542
(127)
3,415
7,656
4,382
12,038
Profit for the period Other comprehensive income (loss) Comprehensive income:
(5,227)
3,542
(5,227)
3,542
4,114
Net change in
(3)
treasury stock
(3)
Dividends declared and approved to
(28,996)
(28,996)
(867)
(29,863)
(154)
-
-
-
-
owners (Note 6) Transfer from other
154
components of equity to retained earnings Acquisition of non-controlling interests Total transactions with owners Balance as of December 31, 2016
-
154
(29,150)
(28,999)
(867)
(29,866)
86,337
118,610
653,388
1,056,470
73,466
1,129,936
The accompanying notes are an integral part of these condensed consolidated financial statements. 8
Condensed Consolidated Statement of Cash Flows Ricoh Company, Ltd. and Consolidated Subsidiaries Millions of Yen Nine months ended Nine months ended December 31, 2015 December 31, 2016 I. CASH FLOWS FROM OPERATING ACTIVITIES: Profit for the period Adjustments to reconcile profit for the period to net cash provided by operating activities Depreciation and amortization Other income Share of profit (loss) of investments accounted for using the equity method Finance income and costs Income tax expenses Decrease in trade and other receivables Increase in inventories Increase in lease receivables Decrease in trade and other payables Decrease in accrued pension and retirement benefits Other, net Interest and dividends received Interest paid Income taxes paid Net cash provided by operating activities II. CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sales of property, plant and equipment Expenditures for property, plant and equipment Expenditures for intangible assets Payments for purchases of available-for-sale securities Proceeds from sales of available-for-sale securities Decrease in time deposits Purchase of business, net of cash acquired Other, net Net cash used in investing activities III. CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds of short-term debt Proceeds from long-term debt Repayments of long-term debt Proceeds from issuance of bonds (Note 5) Repayments of bonds (Note 5) Dividends paid (Note 6) Payments for purchase of treasury stock Other, net Net cash provided by financing activities IV. EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS V. NET INCREASE IN CASH AND CASH EQUIVALENTS VI. CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR VII. CASH AND CASH EQUIVALENTS AT END OF PERIOD
55,465
8,623
81,201 (17,948) (66)
78,997 (2,205) (33)
4,343 25,718 6,022 (11,333) (27,336) (31,327) (9,763) (16,958) 1,711 (4,604) (21,977) 33,148
2,446 17,539 16,444 (26,126) (18,485) (11,339) (6,128) (9,878) 1,962 (5,521) (22,100) 24,196
18,011 (61,622) (20,526) (623) 2,450 404 (4,820) (8,655) (75,381)
12,906 (53,049) (18,121) (386) 755 222 (287) (5,250) (63,210)
44,071 151,587 (59,130) 20,000 (60,000) (25,009) (14) (3,150) 68,355
38,916 233,019 (202,093) 31,567 (10,000) (28,996) (5) (887) 61,521
(1,172)
3,100
24,950 137,722
25,607 167,547
162,672
193,154
The accompanying notes are an integral part of these condensed consolidated financial statements.
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Notees to Con ndensed Consoliidated Fiinancial Statemeents Ricoh Company, Ltd. and Co onsolidatedd Subsidiariees
1.
R REPORTING G ENTITY
Ricoh Co., Ltd. (thhe “Company y”) is a comppany domicilled in Japan. The condennsed consolid dated financiaal statem ments of the Company C as of and for thhe period end ded December 31, 2016 ccomprise of the Companny and itss subsidiariees (the “Rico oh” as a connsolidated group) g and Ricoh's R intereest in associiates. Ricoh’s operatiing segmentts are compo osed of Imagging & Soluttions, includ ding MFPs & copiers, reelated parts & suppliees, communiications & in nformation syystems and services s & so olutions, Induustrial Produ ucts, includinng thermaal media annd semicond ductors, and Other, inclluding leasin ng and digittal cameras (see Note 4 “Operaating Segmennt”).
2.
BASIS OF PR REPARATIION
(1) Staatements of Compliancee The coondensed coonsolidated financial staatements meeets the requ uirements seet out underr Article 1-22, Paragrraph 1, Item m 2 of the Rules R on Ter erminology, Formats and d Compilatioon Methods of Quarterlly Consollidated Finanncial Statemeents (Cabinett Office Ordiinance No. 64 4 of 2007; heereinafter refferred to as thhe “Ruless on Quarterrly Consolid dated Financiial Statemen nts”) under which w the C Company is qualified q as a “speciffied companny” and duly y prepares suuch summarry in accordance with IA AS 34 “Inteerim Financiaal Reportting”, under the t provision ns of Article 993 of the Rulles on Quarteerly Consoliddated Financial Statemennts. As thee condensed consolidated d financial sttatements do not contain all the inform rmation required in annual consollidated finanncial statemeents, it shouuld be read in combinaation with thhe consolidaated financiaal statem ments for the fiscal year ended March 31, 2016, prrepared in acccordance wi with Internatio onal Financiaal Reportting Standardds ("IFRSs "). The coondensed coonsolidated financial staatements aree presented in Japanesee yen, which is also thhe Compaany’s functioonal currency y. All amounnts presented d in Japanesee yen have beeen rounded to the nearest millionn. (2) Usse of Estimaates and Jud dgments The prreparation of o condensed d consolidatted financiall statements in accordan ance with IF FRSs requirees managgement to make m judgmen nts, estimatees and assum mptions thatt affect the aapplication of o accountinng policiees and the repported amoun nts of assets, liabilities, in ncome and ex xpenses. Actuual results may m differ from m these eestimates. The esstimates andd underlying assumptionss are review wed on an on ngoing basis.. Revisions to accountinng estimaates are recoggnized in the period in whhich the estim mates are rev vised and in ffuture period ds in which thhe revisioon affects. Estimaates and juddgments that have signifficant impact on the am mounts in thee condensed d consolidateed financiial statementts for the nine months eended Decem mber 31, 201 16 remain thhe same as those t that haad significant impact on the amounts in the connsolidated fiinancial stateements for thhe previous fiscal f year.
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3.
SIIGNIFICAN NT ACCOU UNTING PO OLICIES
Ricoh did not channge the signifficant accounnting policiees from the previous fiscaal year, with the exceptioon of the following neew IFRSs. The addoption of the following IFRSs I has noo material im mpact on Ricoh’s condennsed consolid dated financiaal statem ments. IIFRSs IFRS 7
Title Financial Instrumentss: Disclosuress
IAS 1
Presentation n of Financial Statements Employee Benefits Interim Financial Reporting Property, Pllant and Equipm ment Intangible Assets
IAS 119 IAS 334
IAS 116 IAS 338
4.
Summaries of new IFR RSs/amendm ments Clariifying the criiteria on wheether a serviccing contrract is contin nuing invollvement in a transferred financial f asseet Clariifying the applicability off the offset ddisclosure of finnancial assetts and financial liabilitiess to conddensed interim m financial statements s Clariifying disclosure requirem ment regardiing mateeriality consid derations Clariifying the meethod to deteermine the disscount rate for ppost-employm ment benefit obligations Clariifying disclosure requirem ment for infoormation “elseewhere in thee interim finaancial report”” Clariifying that a revenue-based method iss not consiidered to be an acceptablle method off depreeciation and amortization n in principlee
O OPERATING G SEGMEN NTS
Ricoh’’s operating segments are comprisedd of Imaging & Solutionss, including MFPs & co opiers, relateed parts & supplies, communicati c ions & inform rmation systeems and serv vices & solut utions, Industtrial Productts, includiing thermal media m and seemiconductoors, and Other, including leasing and ddigital camerras. Segmeent profit (losss) is based on o operating pprofit, and iss used by Riccoh’s chief opperating deciision maker in i decidinng how to alllocate resou urces and in assessing peerformance. Segment S proofit (loss) excludes certaiin corporrate expensess, such as co osts related tto human reesources, legal relations, investor rellations, publiic relationns, corporatee planning an nd environm mental activitiies. The foollowing tablles present certain c inform mation regarrding Ricoh’’s operating segments an nd geographiic areas ffor the nine months m and three monthhs ended Deccember 31, 2015 2 and 20116. Intersegm ment sales arre made aat arm’s-lenggth prices. No single custtomer accoun nted for 10% % or more of the total salees for the ninne months and three months m ended d December 31, 2015 and d 2016.
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(a) Operating Segment Information Nine months ended December 31, 2015 and 2016 Millions of Yen Nine months ended Nine months ended December 31, 2015 December 31, 2016 Segment sales: Imaging & Solutions Industrial Products Other Intersegment sales Total segment sales Segment profit: Imaging & Solutions Industrial Products Other Total segment profit
1,468,075 103,953 81,107 (9,279) 1,643,856
1,294,478 99,975 83,616 (8,643) 1,469,426
119,455 8,432 2,085 129,972
59,565 7,157 3,195 69,917
(44,512) 3,784 (8,127)
(41,342) 3,599 (6,045)
66
33
81,183
26,162
Reconciling items: Corporate expenses and elimination Finance income Finance costs Share of profit (loss) of investments accounted for using equity method Profit before income tax expenses
Three months ended December 31, 2015 and 2016 Millions of Yen Three months ended Three months ended December 31, 2015 December 31, 2016 Segment sales: Imaging & Solutions Industrial Products Other Intersegment sales Total segment sales Segment profit: Imaging & Solutions Industrial Products Other Total segment profit
490,021 34,536 27,403 (3,282) 548,678
439,129 35,291 26,704 (3,141) 497,983
40,759 2,329 764 43,852
24,107 2,683 500 27,290
(14,510) 353 (2,092)
(15,265) 149 (1,288)
18
(18)
27,621
10,868
Reconciling items: Corporate expenses and elimination Finance income Finance costs Share of profit (loss) of investments accounted for using equity method Profit before income tax expenses
Intersegment sales represent sales of Industrial Products segment to Imaging & Solutions segment. 12
(b) Geeographic In nformation Sales bbased on the location of customers c arre as follows:: Nine m months endedd December 31, 2015 andd 2016 Miillions of Yen Nin ne months endded Nine months m ended Deccember 31, 20015 Decem mber 31, 2016 Sales: Japaan Thee Americas Eurrope, Middle East E and Africca Othher Coonsolidated Thee United States (included in n The Americaas)
549,1 46 524,7758 397,3330 172,6622 1,643,8856 444,3366
546,9966 443,7044 334,6544 144,0722 1,469,4266 374,3166
Three months endeed Decemberr 31, 2015 annd 2016 Miillions of Yen Threee months endded Three months m endedd Deccember 31, 20015 Decem mber 31, 2016 Sales: Japaan Thee Americas Eurrope, Middle East E and Africca Othher Coonsolidated Thee United States (included in n The Americaas)
5.
182,1 25 171,8888 137,3346 57,3319 548,6678 145,2204
182,2055 150,8599 113,7266 51,1933 497,9833 127,0511
BONDS
As forr the nine moonths ended December 331, 2015, there was an issuance i of sstraight bond ds of ¥20,0000 millionn (0.27% perr annum, due August 20200). There weere repaymen nts of straightt bonds of ¥2 20,000 millioon (0.61% % per annum,, due May 20 015) and ¥400,000 million n (0.57% perr annum, duee June 2015).. As forr the nine moonths ended December 3 1, 2016, there were issuances of straaight bonds of o EURO 1000 millionn (¥12,270 million) m (0.37 7% per annuum, due July y 2019), ¥10,000 millionn (0.001% peer annum, duue Septem mber 2019) and a ¥10,000 million m (0.055% per annum m, due Septem mber 2021). There was a repayment of o straighht bonds of ¥10,000 ¥ million (0.07% pper annum, du ue July 2016 6).
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6.
D DIVIDENDS S
Divideends paid durring the nine months endded Decembeer 31, 2015 and 2016 are as follows: Cllass of shares
A Amount of ddividends ((Millions of Yen)
Ordinaary general meeting m of shhareholders held on June 19, 2015
Ord dinary shares
12,323
Boardd of Directors’ O meetting held on October 30, 22015
dinary Ord shares
Ordinaary general meeting m of shhareholders held on June 17, 2016 Boardd of Directors’ meetting held on October O 27, 22016
Resolution
Dividends per p share
Recordd date
Effectiv ve date
Source of dividennds
17.0
Marchh 31, 20115
June 22, 201 15
Retained earninggs
12,686
17.5
Septembber 30, 20115
ber Decemb 1, 2015
Retained earninggs
Ord dinary shares
12,686
17.5
Marchh 31, 20116
June 20, 201 16
Retained earninggs
Ord dinary shares
16,310
22.5
Septembber 30, 20116
Decemb ber 1, 2016
Retained earninggs
(Yen)
r date iss in the third quarter but whose w effecttive date is inn the following quarter arre Divideends whose record as folloows: None nnoted.
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7.
FIINANCIAL L INSTRUM MENTS
(1) Faiir value of financial fi insttruments byy type Carryinng amounts and fair valu ues of the maajor financiall instrumentss are as follow ws: Millions of Yen Y As of Deceember 31, 201 As of M March 31, 2016 6 16 Carrying amounnt Fair value v Caarrying amounnt Fair Value V Assets:: Tradee receivables Leasee receivables Installlment loans Derivative assets Securiities Bondss Totaal Liabilitties: Derivative liabilitiees Loanss and borrowinngs Leasee liabilities Totaal
82,7703 778,5 29 109,2249 4,7740 65,4425 1,6659 1,042,3 05
85,827 805,923 109,906 4,740 65,425 1,659 1,073,480
92,02 6 796,31 1 114,73 8 2,61 8 77,442 42 1,52 6 1,084,66 1
95,502 824,370 8 115,428 1 2,618 77,442 1,526 1,1 116,886
(3,6997) (592,0445) (1,8668) (597,6110)
(3,697) (5 593,086) (1,941) (5 598,724)
(2,1233) (599,8999) (1,9511) (603,9733)
(2,123) (60 01,161) (2,027) (60 05,311)
Note: e time t depositss, and trade and a other pay yables (i) Cassh and cash equivalents, These financial insstruments aree not includeed in the tablle above, as the carryingg amounts approximate faair values due to the reelatively sho ort term naturre. (ii) Traade and other receivabless The recceivables setttled in a shorrt period of trrade and otheer receivablees are not inclluded in the table t above, as the carrrying amounnts approxim mate fair valuues due to thee short maturrities of thesee instruments. Fair vaalue of the receivables r expected e to be recovereed or settled after more than 12 mon nths, per eacch receivaable classifieed per certain business tyypes, are callculated baseed on presennt value of su uch receivabble discouunted by the interest i rate, which takes into account the period to t maturity aand the credit risk. Trade and other reeceivables ussing inputs ddescribed ab bove are classsified as Leevel 2 under the fair valuue measurrement and disclosure d fraamework, sinnce they are valued using g observable market dataa. (iii) Leease receivabbles and instaallment loanss Fair vaalue of lease receivables and installm ment loans, peer each receivable classiffied per certaain period, arre calculaated based on o present vaalue of suchh receivable discounted by the intere rest rate, whiich takes intto accounnt the periodd to maturity y and the creedit risk. Leaase receivablles and instaallment loanss using inpuuts describbed above arre classified as Level 2 under the faair value measurement aand disclosurre frameworkk, since th they are valuued using obsservable markket data. (iv) Deerivatives Derivaative instrum ments consistt of interest rate swap ag greements, foreign f curreency contraccts and foreiggn currenccy options. Fair F values off these instruuments are mainly measurred by obtainning quotes from fr brokers or properr valuation method m based on availablee information n.
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(v) Securities and bonds Securities and bonds include marketable securities, bonds and unlisted securities. Marketable securities and bonds are held at fair value using quoted prices in an active market. The fair value of unlisted securities is measured using the comparable companies’ analysis or other reasonable valuation methods. (vi) Loans, borrowings and lease liabilities Loans and borrowings expected to be settled in less than 12 months are not included in the table above, as the carrying amounts approximate fair values due to the short maturities of these instruments. Fair value of loans, borrowings and lease liabilities are calculated from estimated present value using year-end borrowing rates derived from future cash flows, on a per-loan basis, as well as calculated based on market prices. Loans, borrowings and lease liabilities using inputs described above are classified as Level 2 under the fair value measurement and disclosure framework, since they are valued using observable market data.
(2) Fair value hierarchy applied in condensed consolidated statement of financial position The fair value hierarchy of financial instruments is categorized as follows from Level 1 to Level 3: Level 1: Quoted prices in active markets with respect to identical assets or liabilities Level 2: Inputs other than quoted prices that are observable, either directly or indirectly Level 3: Inputs not based on observable market data The following tables present the fair value hierarchy of financial assets and liabilities that are measured at the fair values in the condensed consolidated statement of financial position.
Level 1 Derivative assets Securities Bonds Total assets Derivative liabilities Total liabilities
62,369 1,659 64,028 -
Level 1 Derivative assets Securities Bonds Total assets Derivative liabilities Total liabilities
74,107 1,526 75,633 -
Millions of Yen As of March 31, 2016 Level 2 Level 3 4,740 3,056 4,740 3,056 3,697 3,697 Millions of Yen As of December 31, 2016 Level 2 Level 3 2,618 3,335 2,618 3,335 2,123 2,123 -
Total 4,740 65,425 1,659 71,824 3,697 3,697
Total 2,618 77,442 1,526 81,586 2,123 2,123
Note: (i) Derivative instruments consist of interest rate swap agreements, foreign currency contracts and foreign currency options. 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.
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(ii) Securities and bonds include marketabble equity securities, bon nds and unlissted securitiees. Marketabble equity securities annd bonds are observable aand valued using u a markeet approach bbased on the quoted markket prices of identical instruments in active maarkets, and th herefore mark ketable equitty securities and bonds are a classifi fied as Level 1. As for unllisted securitties, Ricoh deetermines thee fair value bbased on an approach a usinng observvable inputs such s as the comparable c ccompany's sh hare prices and a unobservvable inputs,, and therefoore unlisteed securities are classified d as Level 3.. were no signnificant changes in the naature of Leveel 3 securitiess during the pperiod. There w 8.
SU UPPLEMEN NTARY INF FORMATIO ON TO THE E CONDEN NSED CONSSOLIDATE ED ST TATEMEN NT OF PROF FIT OR LO OSS
The foollowing amoounts were ch harged to sellling, generall and administrative expeenses for the nine monthss and thrree months ended e Decem mber 31, 20155 and 2016:
Researcch and develoopment expensses Shippinng and handlinng costs Advertiising costs
Milllions of Yen Nine months endeed Nine mo months ended Deccember 31, 2015 Decembber 31, 2016 74,553 74,584 21,402 19,602 8,160 6,547
Researcch and develoopment expensses Shippinng and handlinng costs Advertiising costs
Milllions of Yen Threee months end ded Three m months ended Deccember 31, 2015 Decembber 31, 2016 23,693 24,583 7,045 6,825 2,908 2,219
9.
EARNINGS PER SHAR RE
Earninngs per share are as follow ws. Dilutedd net incomee per share fo or the nine m months and th hree months ended e Decem mber 31, 2015 5 and 2016 are a omittedd because thhe Company did not havee potentially y dilutive com mmon sharess that were outstanding o f for the perriod. Nine months ended Decemb ber 31, 2015 Profit aattributable to owners of thee parent (millioons of yen) Weightted average nuumber of issueed and outstannding shares (thousaands of sharess) Earninggs per share (aattributable to owners of thee parent) (yen)
51,4155
4,114
724,8955
724,886
70.933
5.68
Three months m ended Decemb ber 31, 2015 Profit aattributable to owners of thee parent (millioons of yen) Weightted average nuumber of issueed and outstannding shares (thousaands of sharess) Earninggs per share (aattributable to owners of thee parent) (yen)
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Nine mon nths ended Decembeer 31, 2016
Three mon nths ended Decembeer 31, 2016
16,8722
(888)
724,8922
724,885
23.288
(1.23)
10. C CAPITAL CO OMMITME ENTS AND CONTINGENCIES As of March 31, 2016 and December D 311, 2016, Riccoh had outsstanding conntractual com mmitments for f acquisiition or consstruction of property, p plannt and equip pment and oth her assets agggregating ¥2 22,968 millioon and ¥16,036 millioon. March 31, 20016 and December 31, 20016, there weere no signifficant continggent liabilitiees. As of M As of D December 311, 2016, the Company C andd certain sub bsidiaries werre parties to llitigation inv volving routinne matters, such as paatent rights. In the opinioon of manag gement, the ultimate u liabiility, if any, resulting froom such liitigation willl not materiallly affect thee financial po osition or thee results of opperations of Ricoh.
11. SU UBSEQUEN NT EVENTS There are no materrial subsequeent events.
12. A AUTHORIZA ATION OF CONDENS SED CONSO OLIDATED D FINANCIA AL STATEM MENTS The coondensed connsolidated fin nancial statem ments were authorized a fo or issue by Z Zenji Miura, Representativ R ve Directoor and Presiddent, and Yu ukihiko Yamaanaka, Corpo orate Vice Prresident and Corporate Financial F Executtive, on Febrruary 9, 2017 7.
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