YEAR ENDED MARCH 31, 2011

ICOM INCORPORATED

Financial Highlights
ICOM INCORPORATED AND SUBSIDIARIES
Years ended March 31, 2011, 2010 and 2009
Thousands of
U.S. dollars

Millions of yen

2011
22,540731
782
436

Net sales
Operating income
Income before income taxes
Net income¥

Total assets¥

Amounts per share:
Net assets
Net income – basic
Net income – diluted
Cash dividends¥ 3,081.33
29.44
–
20.00

49,807¥

2010
23,640
431
711
230

¥

¥

49,350¥2009
29,575
2,785
1,532
998

2011
$ 271,109
8,792
9,406
5,244

49,245$ 599,074

Yen

U.S. dollars¥ 3,094.79
15.55
–
20.00

¥ 3,086.49
67.40
–
40.00

$

37.06
0.35
–
0.24

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥83.14 = U.S.$1.00, the exchange rate prevailing on March 31, 2011.
2. Amounts shown in millions of yen and thousands of dollars are rounded off to the nearest million or thousand.

Net Sales

Operating Income(Millions of yen)

(Millions of yen)

35,00029,57530,0005,000
23,64022,54025,0004,000

20,000

3,000

2,785

15,0002,000

10,000
5,000
0

431

1,000
2009

2010

2011

0

2009

Net Income

Total Assets(Millions of yen)

(Millions of yen)

2010

731

2011

53,00052,0003,000

51,00050,000

2,000

2009

2010

49,80748,000

1,000
230

436

47,00046,00045,0002009

49,35049,000998

049,245

2010

2011

2011

ICOM INCORPORATED ANNUAL REPORT 20111

Operating Highlights
GEOGRAPHICAL SEGMENT INFORMATION
Years ended March 31, 2011 and 2010
Millions of yen

Japan
North America
EuropeAsia & Oceania
Eliminations
Consolidated total

Net sales
2011
2010¥ 19,827¥ 19,178
6,918
7,843
1,062
1,219
1,541
1,299
(6,808)(5,899)¥ 22,540¥ 23,640

Thousands of U.S. dollars

Operating income (loss)
2011
2010
¥ 536
¥ (182)
79
176
31
14
147
129
(62)
294
¥ 731
¥ 431

Net sales
2011$ 238,477
83,20912,774
18,535(81,886)$ 271,109

Operating income
2011$ 6,447
950
373
1,768
(746)
$ 8,792

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥83.14= U.S.$1.00, the exchange rate prevailing on March 31, 2011.
2. Amounts shown in millions of yen and thousands of dollars are rounded off to the nearest million or thousand.

Net Sales(Millions of yen)Japan
North America

30,000Europe25,00019,827

19,178Asia & Oceania

20,00015,000

7,843

6,918

10,0001,062 1,541

1,219 1,299

5,000
0

2010

2011

Operating Income (Loss)(Millions of yen)

Japan

700

536

North America
Europe500

Asia & Oceania
176

300

129
14

100

(100)

(300)

147
79

31

(182)

2010

2011

ICOM INCORPORATED ANNUAL REPORT 20112

Operating Highlights
OVERSEAS SALES
Years ended March 31, 2011 and 2010
Millions of yen

North America
EuropeAsia
OtherOverseas total
Domestic total
Consolidated total

2011 (Unaudited)¥ 6,648
29.5%
3,789
16.8
4,180
18.5
2,132
9.5
16,749
74.3
5,791
25.7
¥ 22,540
100.0%

Thousands of U.S. dollars

2010¥ 7,516
31.8%
4,061
17.2
3,747
15.8
1,837
7.8
17,161
72.6
6,479
27.4
¥ 23,640
100.0%

2011 (Unaudited)$ 79,962
45,57450,27725,642
201,455
69,654$ 271,109

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥83.14 = U.S.$1.00, the exchange rate prevailing on March 31, 2011.
2. Amounts shown in millions of yen and thousands of dollars are rounded off to the nearest million or thousand.

Net Sales 2010

North
America
31.8%

Overseas
Sales

Europe
17.2%

Asia
15.8%

Domestic
Sales
27.4%

Other
7.8%

Net Sales 2011

North
America
29.5%

Overseas
Sales

Domestic
Sales
25.7%

Europe
16.8%

Asia
18.5%
Other
9.5%

ICOM INCORPORATED ANNUAL REPORT 2011

3

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Balance Sheets
March 31, 2011 and 2010
Thousands of
U.S. dollars(Note 1)Millions of yen

AssetsCurrent assets:
Cash and deposits (Notes 4 and 5)
Marketable securities (Notes 4, 5 and 6)
Notes and accounts receivable (Note 5)
Allowance for doubtful accounts

2011

2010

2011

Total current assets¥ 28,198
214
3,778
(14)
3,764
4,908
257
966
38,307¥ 26,251
200
4,208
(36)
4,172
4,459
242
1,286
36,610$ 339,163
2,574
45,441(168)
45,27359,0333,091
11,619460,753

Property, plant and equipment:
Land
Buildings and structures
Machinery and equipment
Vehicles and otherConstruction in progress
Property, plant and equipment, at costLess accumulated depreciation
Property, plant and equipment, net

3,834
5,977
11,324211
18
21,364(14,224)
7,140

3,841
6,031
11,408243
821,531(13,927)
7,604

46,11571,891
136,204
2,538
216
256,964(171,085)
85,879Investments and other assets:
Investments in securities (Notes 5 and 6)
Other investments
Deferred income taxes (Note 9)
Other assets
Allowance for doubtful accounts
Total investments and other assets

1,019
2,603
499
283
(44)
4,360

1,687
2,628
619
246
(44)
5,136

12,25631,309
6,002
3,404
(529)
52,442¥ 49,807¥ 49,350$ 599,074

Inventories (Note 7)
Deferred income taxes (Note 9)
Other current assets

Total assets (Note 16)
See accompanying notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2011

4

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Balance Sheets
March 31, 2011 and 2010

Thousands of
U.S. dollars(Note 1)Millions of yen

Liabilities and net assets
Current liabilities:
Accounts payable – trade (Note 5)
Accounts payable – other (Note 14)
Accrued income taxes (Note 9)
Accrued expenses
Warranty reserves
Other current liabilities
Total current liabilities
Long-term liabilities:
Deferred income taxes (Note 9)
Accrued retirement benefits for employees (Note 8)
Other long-term liabilities
Total long-term liabilities

2011
¥

1,280
396
226
918
42
106
2,968

2010
¥

2011

1,204
351
10
861
60
125
2,611

$ 15,396
4,763
2,718
11,042505
1,275
35,699

13
563
602
1,178

–
277
601
878

156
6,772
7,241
14,1697,081
10,44928,9107,081
10,44928,77085,170125,679
347,727(102)
46,338(102)
46,198(1,227)557,349

12
(689)
(677)
45,661¥ 49,807

25
(362)
(337)
45,861¥ 49,350

144(8,287)(8,143)549,206$ 599,074

Contingent liabilities (Note 11)

Net assets:
Shareholders’ equity (Note 10):
Common stock:
Authorized – 34,000,000 shares;
14,850,000 shares in 2011 and 2010
Issued –Capital surplus
Retained earnings (Note 18)
Less treasury stock, at cost:
31,307 shares in 2011 and 31,119 shares in 2010
Total shareholders’ equity
Accumulated other comprehensive income (loss):
Unrealized holding gain on securities (Note 6)
Translation adjustments
Total accumulated other comprehensive loss
Total net assets
Total liabilities and net assets
See accompanying notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2011

5

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Income
Years ended March 31, 2011 and 2010
Thousands of
U.S. dollars(Note 1)Millions of yen

Net sales (Note 16)
Cost of sales
Gross profit

2011¥ 22,540
13,906
8,634

2010¥ 23,640
14,9428,698

2011$ 271,109
167,260
103,849

7,903
731

8,267
431

95,057
8,792

215
(2)
–
(119)
1
(146)
102
51
782

163
7
(1)
157
0
(171)
125
280
711

2,586
(24)
–
(1,431)12(1,756)
1,227
614
9,406

228
118
346
436
436

142
339
481
–
230

2,743
1,419
4,162
5,244
5,244

Selling, general and administrative expenses(Notes 13 and 14)
Operating income (Note 16)
Other income (expenses):
Interest and dividend income(Loss) gain on sales of securities, net (Note 6)
Loss on impairment of investments in securities
Foreign exchange (loss) gain, net
Gain on sales of property, plant and equipment
Sales discounts
Other, net
Income before income taxes
Income taxes (Note 9):
Current
DeferredIncome before minority interests
Net income

¥

¥

$

See accompanying notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2011

6

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statement of Comprehensive Income
Year ended March 31, 2011
Thousands of
U.S. dollars(Note 1)Millions of yen

Income before minority interests
Other comprehensive loss:
Unrealized holding loss on securities
Translation adjustments
Comprehensive income
Total comprehensive income attributable to:Shareholders of ICOM INCORPORATEDMinority shareholders of consolidated subsidiaries

2011
¥ 436

2010
¥–

2011
$ 5,244

(13)
(326)
(339)
¥ 97

–
–
–
¥–

(156)
(3,921)(4,077)$ 1,167¥¥––$ 1,167–

97–

See accompanying notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2011

7

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statements of
Changes in Net Assets
Years ended March 31, 2011 and 2010
Millions of yen

Balance at March 31, 2009
Net income for the year
Cash dividends
Purchases of treasury stock
Other changes
Balance at March 31, 2010
Net income for the year
Cash dividends
Purchases of treasury stock
Other changes
Balance at March 31, 2011

Number ofshares in issue

Commonstock

CapitalsurplusRetainedearnings

Treasurystock, at cost

Unrealized
holding gain
(loss) on
securities

14,850,000––––
14,850,000––––
14,850,000¥ 7,081––––¥ 7,081––––¥ 7,081¥ 10,449––––¥ 10,449––––¥ 10,449¥ 28,984
230
(444)
–
–
¥ 28,770
436
(296)
–
–
¥ 28,910¥ (101)––(1)–¥ (102)––(0)–¥ (102)¥ (128)
–
–
–
153
¥ 25
–
–
–
(13)
¥ 12

Translation
adjustments

Total net
assets¥ (546)–––184¥ (362)–––(327)¥ (689)¥ 45,739
230
(444)
(1)
337
¥ 45,861
436
(296)
(0)
(340)
¥ 45,661

Translation
adjustments

Total net
assets$ (4,354)–––(3,933)$ (8,287)$ 551,611
5,244(3,560)(0)(4,089)$ 549,206

Thousands of U.S. dollars (Note 1)

Balance at March 31, 2010
Net income for the year
Cash dividends
Purchases of treasury stock
Other changes
Balance at March 31, 2011

Commonstock

CapitalsurplusRetainedearnings

Treasurystock, at cost

Unrealized
holding gain
(loss) on
securities$ 85,170––––$ 85,170$ 125,679––––$ 125,679$ 346,043
5,244(3,560)––$ 347,727$ (1,227)––(0)–$ (1,227)

$ 300
–
–
–
(156)
$ 144

See accompanying notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2011

8

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows
Years ended March 31, 2011 and 2010
Thousands of
U.S. dollars(Note 1)Millions of yen

2011
Operating activities:
Income before income taxes
Adjustments for:
Depreciation and amortization
Interest and dividend income
Foreign exchange gain, net
Decrease (increase) in notes and accounts receivable(Increase) decrease in inventories
Increase in accounts payable – trade
Other, net
Subtotal
Income taxes refunded (paid)
Net cash provided by operating activities

¥

782

2010
¥

711

2011
$

9,406

976
(215)
(80)
260
(630)
260
455
1,808
225
2,033

1,362
(163)
(61)
(551)
1,265
295
362
3,220
(278)
2,942

11,739(2,586)(962)
3,127(7,578)3,127
5,473
21,746
2,707
24,453

Investing activities:
Increase in time deposits with original
maturities in excess of three months
Proceeds from sales of marketable securities
Purchases of property, plant and equipment
Purchases of other assets
Purchases of investments in securities
Proceeds from sales of investments in securities
Interest and dividend income received
Other, net
Net cash used in investing activities

(344)
200
(417)
(130)
(46)
476
214
1
(46)

(604)
100
(619)
(65)
(314)
604
157
(5)
(746)

(4,138)2,406(5,016)(1,563)
(553)
5,725
2,574
12
(553)

Financing activities:
Purchases of treasury stock
Cash dividends paid
Net cash used in financing activities

(0)
(296)
(296)

(1)
(444)
(445)

(0)
(3,560)(3,560)

(129)
1,562
24,984¥ 26,546

36
1,787
23,197¥ 24,984(1,552)
18,788300,505$ 319,293

Effect of exchange rate changes on cash and cash
equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 4)
See accompanying notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2011

9

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2011

1. Basis of Preparation
The accompanying consolidated financial statements of ICOM INCORPORATED (the “Company”) and its subsidiaries areprepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects as to the applicationand disclosure requirements of International Financial Reporting Standards, and have been compiled from the consolidated financial
statements prepared by the Company as required by the Financial Instruments and Exchange Act of Japan.
In preparing the accompanying consolidated financial statements, certain reclassifications and rearrangements have been made to
the consolidated financial statements issued domestically in order to present them in a format which is more familiar to readers
outside Japan.
In addition, the notes to the consolidated financial statements include certain information which is not required under accounting
principles generally accepted in Japan but is presented herein as additional information.
The translation of yen amounts into U.S. dollar amounts is included solely for the convenience of readers outside Japan, as amatter of arithmetic computation only, and has been made at ¥83.14 = U.S.$1.00, the approximate rate of exchange in effect on
March 31, 2011. This translation should not be construed as a representation that yen have been, could have been, or could in the
future be, converted into U.S. dollars at the above or any other rate.

2. Summary of Significant Accounting Policies(a) Principles of consolidation
The accompanying consolidated financial statements include the accounts of the Company and the companies which it
controls directly or indirectly. Companies over which the Company exercises significant influence in terms of their operating
and financial policies have been included in the accompanying consolidated financial statements on an equity basis.
All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealizedintercompany gains and losses among the Company and the subsidiaries have been entirely eliminated.

(b) Cash and cash equivalents
For purposes of the consolidated statements of cash flows, cash and cash equivalents consist of cash on hand, deposits withbanks withdrawable on demand, and short-term investments which are readily convertible to cash subject to an insignificant riskof any changes in their value and which were purchased with an original maturity of three months or less.

(c) Foreign currency translation
The balance sheet accounts of the overseas subsidiaries are translated into yen at the rates of exchange in effect at the balance
sheet date except that the components of net assets are translated at their historical exchange rates. Adjustments resulting fromtranslating accounts denominated in foreign currencies are not included in the determination of net income in the accompanying
consolidated financial statements, but are reported as “Translation adjustments,” a component of net assets.
Revenue and expense accounts are translated at the average rates of exchange in effect during the year.
All monetary assets and liabilities denominated in foreign currencies are translated into yen at the rates of exchange in effectat the balance sheet date, except that receivables and payables hedged by qualified forward foreign exchange contracts aretranslated at the corresponding contract rates. Gain or loss on each translation is credited or charged to income.

(d) Marketable securities and investments in securities
In general, securities are classified into three categories: trading securities, held-to-maturity debt securities or other securities.
Trading securities, consisting of debt and marketable equity securities, are stated at fair value. Gain or loss, both realized andunrealized, are credited or charged to income. Held-to-maturity debt securities are stated at their amortized cost. Marketablesecurities classified as other securities are carried at fair value with any changes in unrealized holding gain or loss, net of theapplicable income taxes, reported as a separate component of net assets. Non-marketable securities classified as othersecurities are carried at cost determined by the moving average method.
Securities held by the Company and its subsidiaries including equity investments in affiliates are all classified as “othersecurities” and have been accounted for as outlined above.

(e) Inventories
Inventories are mainly stated at the lower of cost or net selling value, cost being determined by the moving average method,
except for goods held by certain overseas subsidiaries which are valued at the lower of cost or market, cost being determined by
the moving average method.

ICOM INCORPORATED ANNUAL REPORT 201110

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
2. Summary of Significant Accounting Policies (continued)(f) Property, plant and equipment (except for leased assets)
Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is computed by the
declining-balance method over the estimated useful lives of the respective assets as prescribed in the Corporation Tax Law ofJapan, except that the straight-line method is applied to buildings (other than structures attached to the buildings) acquired on
April 1, 1998 and thereafter. Small assets owned by the Company and its domestic subsidiaries, which are valued at ¥100
thousand or more and less than ¥200 thousand, are depreciated by the straight-line method over a three-year period.

(g) Software development costs (except for leased assets)
Expenditures relating to the development of computer software intended for internal use are charged to income when incurred,
except if it is anticipated that this software will contribute to the generation of income or to future cost savings. Suchexpenditures are capitalized as assets and amortized by the straight-line method over an estimated useful life of 3 years or 5
years.

(h) Leased assets
Leased assets are depreciated by the straight-line method over respective lease periods with no residual value.
The Company and its domestic subsidiaries continue to account for finance lease transactions not involving the transfer ofownership that were contracted prior to April 1, 2008 in a manner similar to the accounting treatment for ordinary operatinglease transactions.

(i) Allowance for doubtful accounts
The allowance for doubtful accounts is computed based on the historical ratio of bad debts and an estimate of certain
uncollectible amounts determined after an analysis of specific individual receivables.

(j) Warranty reserves
Warranty reserves for certain overseas subsidiaries are calculated based on the historical ratio of the cost of repairs of the
products against net sales.

(k) Accrued retirement benefits
Accrued retirement benefits for employees are provided mainly at an amount calculated based on the retirement benefit
obligation and the fair value of the pension plan assets as adjusted for unrecognized actuarial gain or loss and unrecognized priorservice cost. The retirement benefit obligation is attributed to each period by the straight-line method over the estimatedremaining years of service of the eligible employees.
Actuarial gain or loss and prior service cost are amortized over a period of ten years commencing the year following the year
in which the gain or loss is recognized by the straight-line method. The amortization period is shorter than the average
estimated remaining years of service of the eligible employees.
The net retirement benefit obligation at transition of ¥592 million is being amortized principally over a period of fifteen years.
Prior service cost is being amortized by the straight-line method over ten years within the average remaining years of service
at the time of occurrence.
Actuarial gain or loss is being amortized in the year following the year in which the gain or loss is recognized by thestraight-line method over ten years, which is within the average remaining years of service of employees.

(l) Hedge accounting
Under the accounting standard for financial instruments, gain or loss on derivatives designated as hedging instruments isdeferred until the loss or gain on the underlying hedged items is recognized. Derivatives such as forward foreign exchange
contracts are utilized to manage foreign currency risk. Forward foreign exchange contracts which meet certain conditions areaccounted for by a method under which foreign currency receivables or payables are translated at their corresponding forward
foreign exchange contract rates.

ICOM INCORPORATED ANNUAL REPORT 201111

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
2. Summary of Significant Accounting Policies (continued)(m) Distribution of retained earnings
Under the Corporation Law of Japan, and the Company’s Articles of Incorporation the distribution of retained earnings withrespect to a given fiscal year end is made by resolution of the shareholders at a general meeting held subsequent to the close of
the financial period. The distribution of retained earnings with respect to interim financial periods is made by resolution of theBoard of Directors. (See Note 18.)

3. Accounting Changes
Effective the year ended March 31, 2011, the Company and its domestic subsidiaries have adopted “Accounting Standard for Asset
Retirement Obligations” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 18 issued on March 31, 2008) and“Implementation Guidance on Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No.21 issued on March 31,2008).
The adoption of this standard had no effect on the consolidated operating results for the year ended March 31, 2011.
Effective the year ended March 31, 2011, the Company has adopted “Accounting Standard for Equity Method of Accounting forInvestments” (ASBJ Statement No.16 issued on March 10, 2008) and “Practical Solution on Unification of Accounting Policies
Applied to Associates Accounted for Using the Equity Method” (ASBJ Practical Issues Task Force (PITF) No.24 issued on March 10,2008). The adoption of this standard had no effect on the consolidated operating results for the year ended March 31, 2011.
Effective the year ended March 31, 2011, the Company has adopted “Accounting Standard for Presentation of Comprehensive
Income” (ASBJ Statement No.25 issued on June 30, 2010). However, “Valuation and translation adjustments” and “Total valuationand translation adjustments” of prior years are now presented as “Accumulated other comprehensive income (loss)” and “Total
accumulated other comprehensive income (loss),” respectively in the consolidated balance sheets.
Total comprehensive income attributable to shareholders of the Company and minority interests and other comprehensive income
for the year ended March 31, 2010 were as follows:
Millions of yen
2010
Total comprehensive income attributable to:Shareholders of ICOM INCORPORATEDMinority shareholders of consolidated subsidiaries
Total

¥567
–
¥567
Millions of yen
2010

Other comprehensive income:Unrealized holding gain on securities
Translation adjustments
Total

¥152
184
¥336

Effective the year ended March 31, 2011, the Company has adopted “Accounting Standard for Disclosures about Segments of anEnterprise and Related Information” (ASBJ Statement No.17 issued on March 27, 2009) and “Guidance on Accounting Standard forDisclosures about Segments of an Enterprise and Related Information” (ASBJ Guidance No.20 issued on March 21, 2008).

Effective the year ended March 31, 2010, the Company and its domestic subsidiaries adopted “Partial Amendments to AccountingStandard for Retirement Benefits (Part3)” (ASBJ Statement No. 19 issued on July 31, 2008). The adoption of this standard had noeffect on the consolidated operating results for the year ended March 31, 2010.

ICOM INCORPORATED ANNUAL REPORT 201112

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
4. Cash and Cash Equivalents
In the preparation of the consolidated statements of cash flows, the relationship between the items included in cash and cash
equivalents and the corresponding amounts reflected in the consolidated balance sheets at March 31, 2011 and 2010 is summarized asfollows:
Thousands of
U.S. dollars

Millions of yen

Cash and deposits
Marketable securities
SubtotalTime deposits with original maturities in excess of threemonthsMarketable securities with original maturities in excess of
three months
Cash and cash equivalents¥

2011
28,198214
28,412¥(1,652)¥(214)
26,546

2010
26,251200
26,451$(1,267)¥(200)
24,984

2011
339,1632,574
341,737(19,870)$(2,574)319,293

5. Financial Instruments(1) General informationi) Policy for financial instruments
In consideration of plans for capital investment, which is mainly centered on radio manufacturing and sales, the Company
and its subsidiaries (collectively, the “Group”) obtain necessary financing through their own funds. The Group manages
surplus funds through financial assets that have high levels of liquidity. The Group uses derivatives for the purpose of
reducing risk and does not enter into derivatives for speculative or trading purposes.
ii) Types of financial instruments and related risk
Notes and accounts receivable are exposed to credit risk in relation to customers. In addition, the Group is exposed toforeign currency exchange rate fluctuation risk arising from receivables denominated in foreign currencies.
Marketable securities and investments in securities are exposed to market risk. Those securities are composed of mainly
corporate bonds in other securities and the shares of common stock of other companies with which it has business
relationships. Fair values of those securities are periodically reviewed and reported to board of directors meetings.
Trade accounts payable have payment due dates within two months. The Group is exposed to foreign currency exchange
rate fluctuation risk arising from those denominated in foreign currencies.
Regarding derivatives, the Group enters into forward foreign exchange contracts to reduce the foreign currency exchange
rate fluctuation risk arising from cash and deposits denominated in foreign currencies. Further information regarding themethod of hedge accounting, hedging instruments and hedged items, hedging policy, and the assessment of the effectivenessof hedging activities can be found in Note 12.
iii) Risk management for financial instruments(a) Monitoring of credit risk (the risk that customers or counterparties may default)
In accordance with the internal policies for managing credit risk of the Group arising from receivables, the credit
department monitors credit worthiness of main customers periodically, and monitors due dates and outstanding balancesby customer. In addition, the Group is making efforts to identify and mitigate risks of bad debt from customers who havefinancial difficulties.
In accordance with the internal policies for security management, the Group only acquires corporate bonds or othersecurities with high credit ratings. Accordingly, the Group believes that the credit risk deriving from such debt securities
is insignificant.
The Group also believes that the credit risk of derivatives is insignificant as the Group enters into derivativetransactions only with financial institutions with high credit ratings.

ICOM INCORPORATED ANNUAL REPORT 201113

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
5. Financial Instruments (continued)(1) General information (continued)iii) Risk management for financial instruments (continued)(b) Monitoring of market risks (the risks arising from fluctuations in foreign exchange rates, interest rates and others)
For cash and deposits denominated in foreign currencies arising from trade receivables denominated in foreign
currencies, the Group identifies the foreign currency exchange risk by each currency and enters into forward foreignexchange contracts to hedge such risk.
For marketable securities and investments in securities, the Group periodically reviews the fair values of such financial
instruments and the financial position of the issuers. In addition, the Group continuously evaluates whether securities
should be maintained taking into account their fair values and the relationships with the issuers.
For derivative transactions, the accounting department of the Company enters into and manages transactions, and a
representative director, in advance, approves them within the limits reported at the Board of Directors meeting. Resultsof derivative transactions are reported at the monthly Board of Directors meetings. Subsidiaries do not enter into
derivative transactions.
(c) Monitoring of liquidity risk (the risk that the Group may not be able to meet its obligations on the scheduled due dates)
Based on reports from each division, the accounting department of the Company prepares and updates its cash flowplans on a timely basis and maintains liquidity of assets for payment to manage liquidity risk. Subsidiaries monitor
liquidity risk in a same manner.
iv) Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market
price available, fair value is reasonably estimated. Since various assumptions and factors are reflected in estimating the fairvalue, different assumptions and factors could result in different fair values. In addition, the notional amounts of derivatives
in Note 12 are not necessarily indicative of the actual market risk involved in derivative transactions.

(2) Estimated fair value of financial instruments
The carrying value, fair value and unrealized gains (losses) of the financial instruments on the consolidated balance sheets asof March 31, 2011 and 2010 are shown in the following table. The following table does not include financial instruments forwhich it is extremely difficult to determine the fair value. (Please refer to Noteⅱ) below).
Millions of yen

2011
Carrying
value
Assets(1) Cash and deposits(2) Notes and accounts
receivable(3) Marketable securities andinvestments in securities
Total assets
Liabilities(1) Accounts payable - trade
Total liabilities
Derivative transactions (*)¥

28,1982010

Fair value

Unrealized
gain (loss)

¥

¥

3,778

28,198
3,778–

Carrying
value¥

26,251

Fair value

Unrealized
gain (loss)

¥

¥

4,208

–

26,251
4,208

–
–

¥

1,166
33,142¥

1,166
33,142

¥

–
–

¥

1,757
32,216¥

1,757
32,216

¥

–
–

¥
¥
¥

1,280
1,280
(0)

¥
¥
¥

1,280
1,280
(0)

¥
¥
¥

–
–
–

¥
¥
¥

1,204
1,204
(1)

¥
¥
¥

1,204
1,204
(1)

¥
¥
¥

–
–
–

ICOM INCORPORATED ANNUAL REPORT 2011

14

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
5. Financial Instruments (continued)(2) Estimated fair value of financial instruments (continued)
Thousands of U.S. dollars

2011

Assets(1) Cash and deposits(2) Notes and accounts
receivable(3) Marketable securities andinvestments in securities
Total assets

Carrying
value

Fair value

Unrealized
gain (loss)

339,163$ 339,163$

45,44145,441$

14,025
398,629

14,025$ 398,629

$

–
–

$
$
$

15,396
15,396
(0)

$
$
$

$
$
$

–
–
–

$

Liabilities(1) Accounts payable - trade
Total liabilities
Derivative transactions (*)

15,396
15,396(0)––(*) The value of assets and liabilities arising from derivatives is shown at net value.
Notes:i) Methods to determine the market value of financial instruments and other matters related to marketablesecurities and derivative transactions are as follows:
Assets(1) Cash and deposits, and (2) Notes and accounts receivable
Since these items are settled in a short period of time, their carrying value approximates the fair value.
(3) Marketable securities and investments in securities
The fair value of equity securities is based on quoted market prices. The fair value of debt securities is based on either
quoted market prices or the prices provided by the financial institutions making markets for these securities. For
information on securities classified by holding purpose, please refer to Note 6.
Liabilities(1) Accounts payable - trade
Since these items are settled in a short period of time, their carrying value approximates the fair value.
Derivative Transactions
Please refer to Note 12.

ii) Financial instruments for which it is extremely difficult to determine the fair value are as follows:
Thousands of
U.S. dollars

Millions of yen

Unlisted stocks

¥

2011
67

¥

2010
130

$

2011
806

Since there is no market price for unlisted stocks and it is difficult to determine the fair value, they are not included inabove (3) marketable securities and investments in securities in the preceding table in “(2) Estimated fair value of financial
instruments.”

ICOM INCORPORATED ANNUAL REPORT 201115

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
5. Financial Instruments (continued)iii) The redemption schedule for other securities with maturity dates
The redemption schedule for financial instruments receivable and marketable securities and investments in securities withmaturity dates is summarized as follows:
Millions of yen

Due within
one year
Cash and deposits
Notes and accounts
receivable
Marketablesecurities andinvestments insecurities:
Other securities
with maturity
dates
Corporate bonds
Total

¥

28,1982011
Due after
Due after
one yearfive years
throughthrough ten
five years
years
¥
–
¥
–

3,778

¥

215
32,191

–

¥

200
200

200
200

2010
Due after
five years
through ten
years
¥
–

4,208

–

–

Due after ten
years

Due within
one year

¥

¥

–

¥

26,251

Due after
one yearthroughfive years
¥
–

–
–

¥

200
200

¥

200
30,659

¥

424
424

¥

300
300

Due after ten
years
¥

–
–

400
400

¥

Thousands of U.S. dollars

339,163

Due after
one yearthroughfive years
$
–

2011
Due after
five years
through ten
years
$
–

45,441––

Due within
one year
Cash and deposits
Notes and accounts
receivable
Marketablesecurities andinvestments insecurities:
Other securities
with maturity
dates
Corporate bonds
Total

$

$

2,586
387,190

$

2,406
2,406

$

2,406
2,406

Due after ten
years
$

–
–

$

2,406
2,406

(Additional information)
Effective the year ended March 31, 2010, the Company and subsidiaries adopted “Accounting Standard for Financial
Instruments” (ASBJ Statement No.10 issued on March 10, 2008) and “Implementation Guidance on Disclosures about Fair
Value of Financial Instruments” (ASBJ Guidance No.19 issued on March 10, 2008).

ICOM INCORPORATED ANNUAL REPORT 201116

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
6. Marketable Securities and Investments in Securities
Marketable securities classified as other securities at March 31, 2011 and 2010 are summarized as follows:
Millions of yen

2011
Carrying
value

Acquisition
cost
Securities whose carrying value
exceeds their acquisition cost:
Equity securities
Corporate bonds
Other
Subtotal
Securities whose carrying value
does not exceed their acquisition cost:
Equity securities
Corporate bonds
Other
Subtotal
Total

¥

¥

330
610
–
940

1
200
–
201
1,141

¥

357
615
–
972

1
193
–
194
¥ 1,166

Unrealized
gain (loss)

Acquisition
cost

¥

¥

27
5
–
32

410
323
43
776

80
6
8
94

ICOM INCORPORATED ANNUAL REPORT 2011

17

¥

24
957
–
981
1,757

¥

¥

¥

33
996
–
1,029
1,711

¥

Unrealized
gain (loss)

(9)
(39)
–
(48)
46

¥

(0)
(7)
–
(7)
25

330
317
35
682

2010
Carrying
value

Thousands of U.S. dollars

2011
Carrying
value

Acquisition
cost
Securities whose carrying value
exceeds their acquisition cost:
Equity securities$ 3,969
Corporate bonds
7,337
Other
–
Subtotal
11,306
Securities whose carrying value
does not exceed their acquisition cost:
Equity securities
12
Corporate bonds
2,406
Other
–
Subtotal
2,418
Total
$ 13,724

$

4,294
7,397
–
11,691

12
2,321
–
2,333
$ 14,024

Unrealized
gain (loss)

$

$

325
60
–
385

(0)
(85)
–
(85)
300

Sales of other securities for the years ended March 31, 2011 and 2010 are summarized as follows:
Thousands of
U.S. dollars

Millions of yen

Sales
Aggregate gain
Aggregate loss

¥

2011
176
10
(12)

¥

2010
494
7
(0)

$

2011
2,117
120
(144)

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
6. Marketable Securities and Investments in Securities (continued)
The carrying value of investments in non-marketable securities at March 31, 2011 and 2010 is summarized as follows:
Thousands of
U.S. dollars

Millions of yen

2011
Unlisted equity securities (except for equity securities
traded on the over-the-counter market)
Total

¥
¥

67
67

2010
¥
¥

65
65

2011
$
$

806
806

7. Inventories
Inventories at March 31, 2011 and 2010 consisted of the following:Thousands of
U.S. dollars

Millions of yen

Merchandise and finished products
Work in process
Raw materials and supplies
Total

¥

¥

2011
2,666
74
2,168
4,908

¥

¥

2010
2,740
87
1,632
4,459

$

$

2011
32,066890
26,07759,033

8. Accrued Retirement Benefits for Employees
The Company and its domestic subsidiaries have employees’ defined benefit pension plans, i.e., corporate pension plans andlump-sum payment plans.
The Company and its domestic subsidiaries pay additional retirement benefits to employees under certain circumstances.
The funded and accrued status of the employees’ defined benefit pension plans of the Company and its domestic subsidiaries andthe amounts recognized in the accompanying consolidated balance sheets at March 31, 2011 and 2010 are summarized as follows:
Thousands of
U.S. dollars

Millions of yen

Retirement benefit obligation at end of year
Plan assets at fair value at end of year
Unfunded retirement benefit obligation
Unrecognized net retirement benefit obligation attransition
Unrecognized actuarial loss
Unrecognized prior service costAccrued retirement benefits for employees

¥

¥

2011
(3,562)
2,291(1,271)
79
638
(9)
(563)

¥

¥

2010
(3,639)2,340(1,299)
102
931
(11)
(277)

$

$

2011
(42,843)
27,556(15,287)
950
7,674
(109)
(6,772)Certain domestic subsidiaries have applied simplified methods for calculating their retirement benefit obligation, which arepermitted under the accounting standard for employees’ retirement benefits.

ICOM INCORPORATED ANNUAL REPORT 201118

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
8. Accrued Retirement Benefits for Employees (continued)
The components of retirement benefit expenses for the years ended March 31, 2011 and 2010 are outlined as follows:
Thousands of
U.S. dollars

Millions of yen

Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Amortization of retirement benefit obligation attransition
Amortization of actuarial loss
Retirement benefit expenses, net

¥

¥

2011
204
69
(44)
(2)
23
167
417

¥

¥

2010
193
66
(37)
(2)
20
194
434

$

$

2011
2,454
830
(529)
(24)
276
2,009
5,016

Retirement benefit expenses of certain domestic subsidiaries, which have been calculated by simplified methods, are included inservice cost in the above table.
The assumptions used in accounting for the above plans were a discount rate of 2.0% and an expected rate of return on plan assetsof 2.0% for the years ended March 31, 2011 and 2010.

ICOM INCORPORATED ANNUAL REPORT 2011

19

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
9. Income Taxes
Income taxes applicable to the Company and its domestic subsidiaries comprise corporation, enterprise and inhabitants’ taxes which,in the aggregate, resulted in a statutory tax rate of approximately 40.6% for the years ended March 31, 2011 and 2010. The
overseas subsidiaries are subject to income taxes of the respective countries in which they operate.
Reconciliations of the statutory tax rate and effective tax rates for the years ended March 31, 2011 and 2010 as a percentage ofincome before income taxes are as follows:
2011
40.6%
1.8
2.7
3.0
(4.0)
0.1
44.2%

Statutory tax rate
Permanently non-deductible expenses
Per capita portion of inhabitant’s taxes
Unrealized profit on inventories
Differences in tax rates applicable to overseas subsidiaries
Other
Effective tax rates

2010
40.6%
2.5
2.9
25.3
(4.4)
0.7
67.6%

The significant components of deferred tax assets and liabilities at March 31, 2011 and 2010 are summarized as follows:
Thousands of
U.S. dollars

Millions of yen

2011
Deferred tax assets:
Accrued retirement benefits for employees
Long-term accounts payable-otherAccrued bonuses
Net operating loss carryforward
Deferred revenue
Unrealized gain on inventories
Accrued enterprise tax
Allowance for doubtful accounts
Devaluation of investments in securities
Loss on devaluation of inventories
Other
Total deferred tax assets
Deferred tax liabilities:
Depreciation
Reserve for special depreciation
Other
Total deferred tax liabilities
Net deferred tax assets

¥

¥

227
207
149
38
35
24
23
21
–
–
97
821

(47)
(15)
(16)
(78)
743

2010
¥

¥

112
207
145
263
39
–
–
30
35
30
83
944

(33)
(19)
(31)
(83)
861

2011
$

$

2,730
2,490
1,792
457
421
289
277
252
–
–
1,167
9,875

(565)
(180)
(193)
(938)
8,937

ICOM INCORPORATED ANNUAL REPORT 201120

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
10. Shareholders’ Equity
The Corporation Law of Japan (the “Law”) provides that an amount equal to 10% of the amount to be disbursed as distributions ofcapital surplus (other than the capital reserve) and retained earnings (other than the legal reserve) be transferred to the capital reserveand the legal reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25% of the capital stock account.
Such distributions can be made at any time by resolution of the shareholders, or by the Board of Directors if certain conditions aremet.
The Company’s legal reserve included in retained earnings at March 31, 2011 and 2010 amounted to ¥293 million ($3,524
thousand).
In addition, upon the issuance and sale of new shares of capital stock, the entire amount of the proceeds is required to be accounted
for as capital stock, although a company may, by resolution of the Board of Directors, account for an amount not exceeding one-halfof the proceeds of the sale of new shares as additional paid-in capital included in capital surplus.
Movements in treasury stock for the years ended March 31, 2011 and 2010 are summarized as follows:

Treasury stock

Treasury stock

March 31, 2010
31,119Number of shares
2011
Increase
Decrease
188–

March 31, 2011
31,307

March 31, 2009
30,839Number of shares
2010
Increase
Decrease
280–

March 31, 2010
31,119

11. Contingent Liabilities
At March 31, 2011, the Company was contingently liable as follows:
Thousands of
U.S. dollars

Millions of yen

Notes discounted with a bank

¥

2011
12

$

2011
144

ICOM INCORPORATED ANNUAL REPORT 201121

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
12. Derivatives and Hedging Activities
The estimated fair value of the derivatives positions outstanding which qualify for deferral hedge accounting at March 31, 2011 and2010 is summarized as follows:
Currency-related transactions
Millions of yen

Method ofhedge
accounting
Allocation
method forforwardforeignexchange
contracts

Transaction
Forward foreignexchange
contracts
Selling:
USD

Major
hedged item

Deposits
denominatedin foreign
currencies

Total

2011

2010

Contract
value(notional
principal
amount)Contract
value(notional
principal
amount)over oneyear

Estimated
fair value

Contract
value(notional
principal
amount)Contract
value(notional
principal
amount)over oneyear

Estimated
fair value

¥ 831
¥ 831

¥–
¥–

¥ (0)
¥ (0)

¥ 557
¥ 557

¥–
¥–

¥ (1)
¥ (1)

Thousands of U.S. dollars
2011

Method ofhedge
accounting
Allocation
method forforwardforeignexchange
contracts

Transaction
Forward foreignexchange
contracts
Selling:
USD

Total

Major
hedged item

Contract
value(notional
principal
amount)Contract
value(notional
principal
amount)over oneyear

Estimated
fair value

Deposits
denominatedin foreign
currencies$ 9,995$–$ (0)$ 9,995$–$ (0)The fair values of forward foreign exchange contracts are calculated using the prices offered by the transacting financial institutions
and others.

ICOM INCORPORATED ANNUAL REPORT 201122

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
13. Research and Development Costs
Research and development costs included in selling, general and administrative expenses for the years ended March 31, 2011 and2010 were as follows:
Thousands of
U.S. dollars

Millions of yen

Research and development costs

¥

2011
2,547

2010
2,763

¥

2011
30,635$

14. Related Party Transactions
Principal transactions between the Company and a related party for the years ended March 31, 2011 and 2010 were summarized asfollows:[Corporate Auditor]
Thousands of
U.S. dollars

Millions of yen

Name
Katsunori
Sugimoto

Description
The Company’s corporate
auditor and a patent attorney

Equityownership
percentage
0.01%

Nature oftransaction
Payment ofpatentattorney’s fee

2011

¥

2010

13

¥

14

2011

$

156

Payments of patent attorney’s fees were determined based on the same terms as third-party transactions.
The balances due to a related party at March 31, 2011 and 2010 were as follows:
Thousands of
U.S. dollars

Millions of yen

Due to Katsunori Sugimoto

Account nameAccounts payable-other

¥

2011
2

¥

2010
2

$

2011
24

15. Amounts per Share
Amounts per share at March 31, 2011 and 2010 and for the years then ended were as follows:Yen

Net assets
Net income:
Basic
DilutedCash dividends¥

2011
3,081.33
29.44
–
20.00

¥

U.S. dollars

2010
3,094.79
15.55
–
20.00

$

2011
37.06
0.35
–
0.24

Net assets per share is computed based on the number of shares of common stock outstanding at the year end.
Basic net income per share is computed based on the weighted-average number of shares of common stock outstanding during eachyear. Diluted net income per share is computed based on the weighted-average number of shares of common stock outstanding during
each year after giving effect to the dilutive potential of the shares of common stock to be issued upon the exercise of stockacquisition rights.
Cash dividends per share represent the cash dividends declared as applicable to the respective fiscal years.
Diluted net income per share for the years ended March 31, 2011 and 2010 was not presented since no outstanding dilutive
securities existed at March 31, 2011 and 2010.

ICOM INCORPORATED ANNUAL REPORT 201123

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
16. Segment Information(1) Segment information for the year ended March 31, 2011i) Outline of Segment Information
The Company’s reporting segments are divisions of the Company for which separate financial information is available, andwhose operating results are reviewed regularly by the board of directors meeting of the Company (the highest management
decision making body) in order to allocate management resources and assess performance of operations.
The Company and its subsidiaries are primarily engaged in the manufacture and sale of telecommunications equipment.
The subsidiaries are independent business units and formulate a comprehensive strategy for dealing with products andoperate regional bussiness.
Therefore, the group consists of four segments based on sales by region. The four segments are "Japan," "North America,"
which primarily includes the United States, "Europe," which primarily includes Germany and Spain, and “Asia andOceania” which primarily includes Australia and Taiwan.
ii) Calculation methods used for sales, profit or loss, assets and other items on each reporting segment
The accounting policies of the segments are substantially the same as those described in the significant accounting
policies in Note 1. Segment performance is evaluated based on operating income or loss. Intersegment sales are recordedat the same prices applied in transactions with third parties.
iii) Information as to sales, profit or loss, assets and other items on each reporting segment
Information by reporting segment for the year ended March 31, 2011 is as follow:
Millions of yen

Japan
I. Net sales and operating income
Sales to third parties
Intersegment sales
Net sales
Operating expenses
Operating income
II. Total assets
III. Other items
Depreciation and amortization
Investments in affiliatedcompany
Increase in tangible / intangible
fixed assets

North
America¥ 13,306
6,521
19,827
19,291¥536¥

Europe
¥

¥

6,904
14
6,918
6,839
79

¥ 44,207

¥

¥

¥

912

2011
Asia &
Oceania

¥

1,061
1
1,062
1,031
31

¥

¥

1,269
272
1,541
1,394
147

4,859

¥

816

¥

2,499

52

¥

2

¥

10

Subtotal

Eliminations

Consolidated¥ 22,540
6,808
29,34828,555
¥
793

¥

¥

¥

–
(6,808)(6,808)(6,746)(62)¥

22,540–22,54021,809731¥ 52,381¥(2,574)¥49,807

¥

¥

–

¥

976

976

57

–

–

–

57

–

57

555

39

1

2

597

–

597

ICOM INCORPORATED ANNUAL REPORT 201124

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
16. Segment Information (continued)(1) Segment information for the year ended March 31, 2011 (continued)iii) Information as to sales, profit or loss, assets and other items on each reporting segment (continued)
Under the new segmentation policy applied by the Company, information by reporting segment for the year ended March
31, 2010 would have been as follow:
Millions of yen

North
AmericaJapan
I. Net sales and operating (loss)
incomeSales to third parties
Intersegment sales
Net sales
Operating expenses
Operating (loss) income
II. Total assets
III. Other Items
Depreciation and amortization
Investments in affiliatedcompany
Increase in tangible / intangible
fixed assets¥¥

13,494
5,684
19,17819,360(182)¥

43,518

¥

1,286

¥

¥

7,831
12
7,843
7,667
176

¥

5,154

¥

63

2010
Asia &
Oceania

Europe

¥

¥

1,218
1
1,219
1,205
14

¥

857

¥

3

¥

¥

1,097
202
1,299
1,170
129

¥

2,141

¥

10

Subtotal¥¥

23,6405,899
29,53929,402
137¥

51,670¥1,362

Eliminations

Consolidated

¥

¥

¥

–
(5,899)(5,899)(6,193)294¥

23,640–23,64023,209431¥(2,320)¥49,350

¥

–

¥

1,362

63

–

–

–

63

–

63

395

45

4

4

448

–

448

Eliminations

Consolidated

Thousands of U.S. dollars

North
America

Europe$160,043 $78,434
238,477
232,030
6,447 $

83,041
168
83,20982,259950$ 12,762
12
12,774
12,401$
373$

531,718 $

58,443

$

9,815

$

10,969

625

$

24

Japan
I. Net sales and operating income
Sales to third parties
Intersegment sales
Net sales
Operating expenses
Operating income
II. Total assets
III. Other items
Depreciation and amortization
Investments in affiliatedcompany
Increase in tangible / intangible
fixed assets

$

$

2011
Asia &
Oceania$

Subtotal$$

15,263
3,272
18,535
16,767
1,768$$

271,10981,886352,995
343,457
9,538$

30,058

$

121

$

$

–
(81,886)(81,886)(81,140)(746)$

271,109–271,109262,317
8,792$

630,034$(30,960)$

599,074$

11,739$–$11,739

686

–

–

–

686

–

686

6,675

469

12

25

7,181

–

7,181

ICOM INCORPORATED ANNUAL REPORT 201125

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
16. Segment Information (continued)(1) Segment information for the year ended March 31, 2011 (continued)iv) Regional information(a) Sales
Sales categorized by country and region based on locations of customers within the Group for the year ended March 31,
2011 are summarized as follows:
Millions of yen

Japan
USA
North America
Europe
Asia
Other
Total

¥

¥

2011
5,791
5,810
838
3,789
4,180
2,132
22,540Thousands of U.S. dollars

$

$

2011
69,65469,883
10,07945,57450,27725,642
271,109(b) Property, plant and equipment
Property, plant and equipment categorized by country and region for the year ended March 31, 2011 are summarized asfollows:

Japan
North America
Europe
Asia
Total

¥

¥

Millions of yen

Thousands of U.S. dollars

2011
6,608
327
7
198
7,140

2011
79,480
3,933
84
2,382
85,879$$ICOM INCORPORATED ANNUAL REPORT 2011

26

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
16. Segment Information (continued)(2) Segment information for the year ended March 31, 2010
The Company and its subsidiaries are primarily engaged in the manufacture and sale of products in Japan and overseas in two major
segments: radio and computer. The radio products are manufactured by the Company and Wakayama Icom Inc., a domestic
subsidiary and are sold in Japan and overseas through the Company and its subsidiaries. The manufacturing in the computer segment
is handled by the Company and Wakayama Icom Inc. and certain components and commercial products are supplied by Asia Icom
Inc., a Taiwanese subsidiary. The market for products in the computer segment is mainly Japan and these products are sold by theCompany and its domestic subsidiaries.
i) Business Segments
The business segment information of the Company and its subsidiaries for the years ended March 31, 2010 is summarized
as follows:
Millions of yen

Radio
I. Net sales and operating income (loss)
Sales to third parties
Intersegment sales
Net sales
Operating expenses
Operating income (loss)
II. Total assets, depreciation andamortization and capital expenditures
Total assets
Depreciation and amortization
Capital expenditures¥

2010
SubtotalComputer¥

22,351–
22,351
21,853498¥¥¥

47,302
1,313
434

¥

¥

1,289
–
1,289
1,356
(67)

¥
¥
¥

2,048
49
15

¥

¥

23,640–23,64023,209431¥¥¥

49,3501,362
449

Eliminations

Consolidated

¥

¥

¥

–
–
–
–
–

¥

23,640–23,64023,209
431

¥
¥
¥

–
–
–

¥
¥
¥

49,3501,362449ii) Geographical Segments
The geographical segment information of the Company and its subsidiaries for the years ended March 31, 2010 issummarized as follows:
Millions of yen

Japan

North
America

EuropeI. Net sales and operating (loss)
incomeSales to third parties
Intersegment sales
Net sales
Operating expenses
Operating (loss) income¥ 13,494
5,684
19,17819,360¥(182)¥ 7,831
12
7,843
7,667
¥
176

¥ 1,218
1
1,219
1,205
¥
14

II. Total assets¥ 43,518¥ 5,154

¥

857

2010
Asia &
Oceania

Subtotal

Eliminations

Consolidated¥ 1,097
202
1,299
1,170
¥
129

¥ 23,640
5,899
29,53929,402¥
137¥–(5,899)(5,899)(6,193)¥294¥ 23,640–
23,64023,209¥431¥ 2,141¥ 51,670¥ (2,320)¥ 49,350

ICOM INCORPORATED ANNUAL REPORT 201127

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
16. Segment Information (continued)(2) Segment information for the year ended March 31, 2010 (continued)iii) Overseas Sales
Overseas sales, which include export sales of the Company and its domestic subsidiaries and sales (other than exports toJapan) of the overseas subsidiaries, for the years ended March 31, 2010 are summarized as follows:
Millions of yen

¥

2010
7,516
4,061
3,747
1,837
17,161

31.8%
17.2%
15.8%
7.8%
72.6%

¥

23,640100.0%

North America
EuropeAsia
OtherSales to overseas customers¥

Consolidated net sales

17. Significant Subsidiaries and Affiliate
The Company’s subsidiaries and a significant affiliate are presented as follows:

Name
Icom America, Inc.
Icom (Europe) GmbH
Icom (Australia) Pty., Ltd.
Icom Spain, S.L.
Asia Icom Inc.
Wakayama Icom Inc.
Icom Information Products Inc.
Icom America License Holding LLC
Comforce Inc.

Ownership
Interest
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%Country of Incorporation
United States of America
Germany
Australia
Spain
TaiwanJapan
Japan
United States of America

49.0%

Japan

Subsidiaries/Affiliate
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Affiliate accounted forby the equity method

18. Subsequent Event
The following distribution of retained earnings of the Company, which has not been reflected in the accompanying consolidated
financial statements for the year ended March 31, 2011, was approved at the Company’s general shareholders’ meeting held on June
28, 2011:
Thousands of
U.S. dollars

Millions of yen

Cash dividends (¥10 = U.S.$0.12 per share)

¥

2011
148

$

2011
1,780

ICOM INCORPORATED ANNUAL REPORT 201128

BOARD OF DIRECTORSAND AUDITORSDIRECTORYTokuzo Inoue

President and Representative Director

1-1-32, Kamiminami, Hirano-ku,
Osaka, 547-0003, JAPAN
Phone: 81-6-6793-5301
Fax: 81-6-6793-5305
URL http://www.icom.co.jp/

Nobuo Ogawa

Subsidiaries:

Chairman and Representative Director

Tsutomu Fukui

Executive Managing Director

Kiyoshi Sakurai
Director

Taichiro Itoyama
Director (part-time)

Toshihiro Wada
Auditor (full-time)

Hiroshi Umemoto
Auditor

Katsunori Sugimoto
AuditorEXECUTIVE OFFICERS
Masataka Harima
Masanori Kamoto
Hiroshi Shimizu
Kikuji Okumura
Seishi Yamazaki
Hiroshi Nakaoka
Masakazu Kaneko
Takayuki Watanabe
Takashi Tsujiuchi

Head Office:Icom America, Inc.
2380 116th Avenue N.E., Bellevue,
WA 98004, U.S.A.
Phone: 1-425-454-8155
Fax: 1-425-454-1509
URL http://www.icomamerica.com/
Icom (Europe) GmbHAuf der Krautweide 24, 65812
Bad Soden am Taunus, GERMANY
Phone: 49-6196-76685-0
Fax: 49-6196-76685-50
URL http://www.icomeurope.com/
Icom (Australia) Pty., Ltd.
A.B.N. 88 006 092 575
Unit 1/103 Garden Road,
Clayton Victoria 3168, AUSTRALIA
Phone: 61-3-9549-7500
Fax: 61-3-9549-7505
URL http://www.icom.net.au/
Icom Spain, S.L.
“Edificio Can Castanyer” Ctra. Gracia
a Manresa km. 14, 750 08190
Sant Cugat Del Valles
Barcelona, SPAIN
Phone: 34-93-590-2670
Fax: 34-93-589-0446
URL http://www.icomspain.com/
Asia Icom Inc.
6F, No.68, Section 1, Cheng-Teh,
Road Taipei, TAIWAN R.O.C.
Phone: 886-2-2559-1899
Fax: 886-2-2559-1874
Wakayama Icom Inc.
1866-1, Oaza Tokuda, Aritagawa-chou
Arita-gun, Wakayama, 643-0801
JAPAN
Phone: 81-737-52-6600
Fax: 81-737-52-6603

Major shareholders
State Street Bank and Trust Company
Tokuzo Inoue
Gigapalace Inc.
The Icom Foundation
State Street Bank and Trust Company
Kenwood Corporation
The Master Trust Bank of Japan, Ltd.
Meiji Yasuda Life Insurance Company
Japan Trustee Service Bank, Ltd.
Bank of Tokyo-Mitsubishi UFJ, Ltd.

Icom Information Products Inc.
3-8-15, Nipponbashi, Naniwa-ku,
Osaka, 556-0005, JAPAN
Phone: 81-6-6635-5701
Fax: 81-6-6635-5707
URL http://www.icom-jk.co.jp/
Icom America License Holding LLC
2380 116th Avenue N.E., Bellevue,
WA 98004, U.S.A.
Phone: 1-425-454-8155
Fax: 1-425-454-1509

Affiliates:
Comforce Inc.
8F, 3-42-3, Nihonbashi Hamacho,
Chuo-ku, Tokyo, 103-0007, JAPAN
Phone: 81-3-3662-1167
Fax: 81-3-3662-1168
URL http://www.comforce.co.jp/

TRANSFER AGENT
Mitsubishi UFJ Trust and Banking
Corporation
Tokyo Office:4-5, Marunouchi 1-chome,
Chiyoda-ku, Tokyo 100-8212, JAPAN
Osaka Office:6-3, Fushimimachi 3-chome
Chuo-ku, Osaka, 541-0044, JAPANINVESTOR RELATIONS
Mr. Kenji Oono
Chief of Managing and Planning
Section, Icom Inc.
1-1-32, Kamiminami, Hirano-ku,
Osaka, 547-0003, JAPAN
Phone: 81-6-6793-5301
Fax: 81-6-6793-5305

CORPORATE FACTS(As of March 31, 2011)
Established: July 1964
Employees: 613
Paid-in capital: ¥7,081 million
Authorized shares: 34,000,000
Issued and outstanding shares:
14,850,000
Shareholders: 3,958
Stock listing: Tokyo Stock Exchange
and Osaka Securities Exchange(As of March 31, 2011)
Thousands of shares
2,428
1,868
1,472
1,000
865
445
353
326
267
243