YEAR ENDED MARCH 31, 2015

ICOM INCORPORATED

Financial Highlights
ICOM INCORPORATED AND SUBSIDIARIES
Years ended March 31, 2015, 2014 and 2013
Thousands of
U.S. dollars

Millions of yen

2015
26,399
2,501
2,992
2,115

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¥ 3,637.17
142.72–
35.00

58,660¥2014
26,283
2,205
3,369
2,238

¥

¥

56,458¥2013
25,852
2,178
3,211
2,228

2015
$ 219,699
20,81424,901
17,602

54,866$ 488,182

Yen

U.S. dollars¥ 3,468.01
151.02–
30.00¥ 3,313.79
150.37
–
30.00

$

30.27
1.19
–
0.29

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥120.16 = U.S.$1.00, the exchange rate prevailing on March 31, 2015.
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)

3,000

28,00025,852

26,283

26,399

2,500

2,501
2,178

2,205

2013

2014

2,000

26,000

1,500
1,000

24,000500
22,000

2013

2014

2015

0

Net Income

Total Assets(Millions of yen)

(Millions of yen)

2,500

2,228

2,238

2,115

58,66060,00056,45858,0002,000

56,000

1,500

2015

54,86654,0001,000

52,000500
050,00048,000
2013

2014

2015

2013

2014

2015

ICOM INCORPORATED ANNUAL REPORT 2015

1

Operating Highlights
GEOGRAPHICAL SEGMENT INFORMATION
Years ended March 31, 2015 and 2014
Millions of yen

Japan
North America
EuropeAsia & Oceania
Eliminations
Consolidated total

Net sales
2015
2014¥ 23,061¥ 22,699
8,857
7,634
1,053
987
1,545
1,715
(8,117)(6,752)¥ 26,399¥ 26,283

Thousands of U.S. dollars

Operating income (loss)
2015
2014
¥ 2,627¥ 2,191
122
(69)
(33)
(54)
26
126
(241)
11
¥ 2,501¥ 2,205

Net sales2015$ 191,919
73,7108,764
12,858(67,552)$ 219,699

Operating income(loss)
2015$ 21,862
1,015
(274)
217
(2,006)$ 20,814

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥120.16 = U.S.$1.00, the exchange rate prevailing on March 31, 2015.
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)

25,00022,699Japan

23,061

North America
Europe20,000Asia & Oceania

15,000
8,857

7,634

10,0005,000

987 1,715

0

1,053 1,545

2014

2015

Operating Income (Loss)(Millions of yen)

2,500

Japan

2,627

3,000

North America

2,191EuropeAsia & Oceania

2,000
1,500
1,000
500

△ 69 △ 54

126

122

△ 33

26

0
(500)

2014

2015

ICOM INCORPORATED ANNUAL REPORT 2015

2

Operating Highlights
OVERSEAS SALES
Years ended March 31, 2015 and 2014

Millions of yen

North America
EuropeAsia & Oceania
Other
Overseas total
Domestic total
Consolidated total

2015 (Unaudited)¥ 8,000
30.4%
3,748
14.2
5,316
20.1
982
3.7
18,046
68.4
8,353
31.6
¥ 26,399
100.0%

2014¥ 7,029
26.8%
3,477
13.2
6,768
25.7
732
2.8
18,006
68.5
8,277
31.5
¥ 26,283
100.0%

Thousands of U.S. dollars

2015 (Unaudited)$ 66,578
31,192
44,241
8,172
150,183
69,516$ 219,699

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥120.16 = U.S.$1.00, the exchange rate prevailing on March 31, 2015.
2. Amounts shown in millions of yen and thousands of dollars are rounded off to the nearest million or thousand.

Net Sales 2014

Net Sales 2015

ICOM INCORPORATED ANNUAL REPORT 2015

3

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Balance Sheet
March 31, 2015

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

AssetsCurrent assets:
Cash and deposits (Notes 3 and 4)
Marketable securities (Notes 3, 4 and 5)
Notes and accounts receivable (Note 4)
Allowance for doubtful accounts

2015

2014

2015

Total current assets¥ 31,937
100
4,594
(33)
4,561
6,545
638
1,585
45,366¥ 30,662
–
4,312
(33)
4,279
5,986
553
1,461
42,941$ 265,787
832
38,232(275)
37,95754,4695,310
13,191
377,546

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 (Note 13)

4,174
6,869
12,320215
1423,592(15,498)
8,094

4,137
6,712
11,773232
50
22,904(14,984)
7,920

34,73757,165102,530
1,789
117
196,338(128,978)67,360Investments and other assets:
Investments in securities (Notes 4 and 5)
Other investments
Deferred income taxes (Note 8)
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total assets (Note 13)

2,263
2,692
255
52
(62)
5,200
¥ 58,660

2,380
2,760
468
64
(75)
5,597
¥ 56,458

18,83322,404
2,122
433
(516)
43,276$ 488,182

Inventories (Note 6)
Deferred income taxes (Note 8)
Other current assets

See accompanying Notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2015

4

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Balance Sheet
March 31, 2015

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

Liabilities and net assets
Current liabilities:
Accounts payable – trade (Note 4)
Accounts payable – otherAccrued income taxes (Note 8)
Deferred income taxes (Note 8)
Accrued expenses
Warranty reserves
Other current liabilities

2015

2014

Total current liabilities¥ 1,178
603
513
2
594
69
766
3,725

¥ 1,188
660
424
1
569
57
670
3,569

Long-term liabilities:
Liability for retirement benefits (Note 7)
Deferred income taxes (Note 8)
Other long-term liabilities
Total long-term liabilities

180
233
626
1,039

650
192
657
1,499

1,498
1,939
5,210
8,647

7,081
10,44935,031

7,081
10,44933,36058,93086,959291,536(103)
52,458(103)
50,787(857)
436,568

17
903
518
1,438
53,896¥ 58,660

(34)
433
204
603
51,390¥ 56,458

141
7,515
4,311
11,967448,535$ 488,182

Net assets:
Shareholders’ equity (Note 9):
Common stock:
Authorized – 34,000,000 shares;
14,850,000 shares in 2015 and 2014
Issued –Capital surplus
Retained earnings (Note 15)
Less treasury stock, at cost:
31,783 shares in 2015 and 31,607 shares in 2014
Total shareholders’ equity
Accumulated other comprehensive income (Note 11):
Net unrealized holding gain (loss) on securities(Note 5)
Translation adjustments
Retirement benefit liability adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

2015
$

9,804
5,018
4,269
17
4,943
574
6,375
31,000See accompanying Notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2015

5

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statement of Income
Year ended March 31, 2015

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

Net sales (Note 13)
Cost of sales (Notes 6 and 13)
Gross profit
Selling, general and administrative expenses(Notes 10 and 13)
Operating income (Note 13)
Other income (expenses):
Interest and dividend income
Gain on sales of securities, net (Note 5)
Foreign exchange gain, net
Gain on sales of property, plant and equipment
Sales discounts
Other, net
Income before income taxes
Income taxes (Note 8):
Current
Deferred
Net income

2015¥ 26,399
14,558
11,841

2014¥ 26,283
14,761
11,5222015$ 219,699
121,155
98,544

9,340
2,501

9,317
2,205

77,73020,814

200
9
376
7
(175)
74
491
2,992

229
13
497
500
(165)
90
1,164
3,369

1,665
75
3,129
58
(1,456)616
4,087
24,901

894
(17)
877
¥ 2,115

929
202
1,131
¥ 2,238

7,440
(141)
7,299
$ 17,602

See accompanying Notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2015

6

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statement ofComprehensive Income
Year ended March 31, 2015

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

Net income
Other comprehensive income (Note 11):
Net unrealized holding gain on securities
Translation adjustments
Retirement benefit liability adjustments
Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to:Shareholders of ICOM INCORPORATED

2015¥ 2,1152014¥ 2,2382015$ 17,602

51
470
314
835
¥ 2,950

14
348
–
362
¥ 2,600

424
3,911
2,613
6,948
$ 24,550¥ 2,950¥ 2,600$ 24,551

See accompanying Notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2015

7

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statement of
Changes in Net Assets
Year ended March 31, 2015
Millions of yen

Balance at April 1, 2013
Net income for the year
Cash dividends
Purchases of treasury
stock
Other changes
Balance at April 1, 2014
Net income for the year
Cash dividends
Purchases of treasury
stock
Other changes
Balance at March 31, 2015

Number ofshares in
issue

Commonstock

14,850,000¥ 7,081

–
–

–
–

–
–

–
–

–
–

–
–

14,850,000¥ 7,081

–
–

–
–

–
–

–
–

14,850,000¥ 7,081

Capitalsurplus
¥

¥

¥

Net
unrealized
holding
gain (loss)
on securities

Treasurystock, at cost

31,641¥ (103)–¥ 49,105

2,238
(519)

–
–

–
–

–
–

–
–

2,238
(519)

–
–

(0)
–

–
14

–
348

–
204

(0)
566

33,360¥ (103)204¥ 51,390

–
–

2,115
(444)

–
–

–
–

–
–

–
–

2,115
(444)

–
–

–
–

(0)
–

–
51

–
470

–
314

(0)
835

35,031¥ (103)518¥ 53,896

10,44910,44910,449

¥

¥

¥

¥

¥

¥

(48)

(34)

17

Translation
adjustments

Retirement
benefit liability
adjustments

Retainedearnings

¥

¥

¥

85

433

903

¥

¥

¥

Total net
assetsThousands of U.S. dollars (Note 1)

Commonstock
Balance at April 1, 2014
Net income for the year
Cash dividends
Purchases of treasury
stock
Other changes
Balance at March 31, 2015

Retainedearnings

Treasurystock, at cost

Translation
adjustments

Retirement
benefit liability
adjustments

Total net
assets

86,959$ 277,630$ (857)$ (283)$ 3,604$ 1,698$ 427,681

–
–

–
–

17,602(3,696)

–
–

–
–

–
–

–
–

17,602(3,696)

–
–

–
–

–
–

(0)
–

–
424

–
3,911

–
2,613

(0)
6,948

86,959$ 291,536$ (857)$ 141$ 7,5154,311$ 448,535$ 58,930$ 58,930$

CapitalsurplusNet
unrealized
holding
gain (loss)
on securities$$

See accompanying Notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2015

8

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statement of Cash Flows
Year ended March 31, 2015

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

Operating activities:
Income before income taxes
Adjustments for:
Depreciation and amortization
Interest and dividend income
Foreign exchange loss (gain), net(Increase) decrease in notes and accounts receivable(Increase) decrease in inventories
Decrease in accounts payable – trade
Other, net
Subtotal
Income taxes paid
Net cash provided by operating activities
Investing activities:
Increase in time deposits with original
maturities in excess of three months
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
Financing activities:
Purchases of treasury stock
Cash dividends paid
Net cash used in financing activities
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 3)

2015

2014

2015

¥ 2,992¥ 3,369$ 24,901

866
(200)
33
(77)
(271)
(246)
(198)
2,899
(796)
2,103

882
(229)
(74)
2,738
42
(10)
(178)
6,540
(1,463)
5,077

7,207
(1,665)275(641)(2,255)(2,047)(1,648)24,127(6,625)17,502

(567)
(796)
(33)
(209)
321
200
(9)
(1,093)(1,011)
(815)
(16)
(310)
22
227
746
(1,157)(4,719)(6,624)(275)(1,739)
2,671
1,665
(75)
(9,096)

(0)
(444)
(444)

(0)
(519)
(519)

(0)
(3,696)(3,696)224
790
27,420¥ 28,210

241
3,642
23,778¥ 27,420

1,864
6,574
228,196$ 234,770

See accompanying Notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2015

9

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2015

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 have been made to the consolidated
financial statements issued domestically for the convenience of readers outside Japan. Certain reclassifications of previously
reported amounts have been made to confirm the consolidated financial statements for the year ended March 31, 2014 to the 2015
presentation. Such reclassifications had no effect on consolidated net income or net assets.
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 ¥120.16 = U.S.$1.00, the approximate rate of exchange in effect on
March 31, 2015. 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. Two companies over which the Company exercises significant influence in terms of theiroperating 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.
The financial statements of certain consolidated subsidiary whose fiscal year end is December 31 has been included inconsolidation on the basis of a full fiscal year closing on March 31 for consolidation purposes.

(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 an affiliate, which are not accounted foron an equity basis, are all classified as “other securities” and have been accounted for as outlined above.

ICOM INCORPORATED ANNUAL REPORT 201510

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
2. Summary of Significant Accounting Policies (continued)(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.

(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 principally 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. Small assets owned by the Company and its domestic subsidiaries, which are valued at ¥100 thousand or more and lessthan ¥200 thousand, are amortized by the straight-line method over a three-year period.

(h) Leased assets
Leased assets are depreciated by the straight-line method over respective lease periods with no residual value.

(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) Liability for retirement benefits
Liability for retirement benefits is provided mainly at an amount calculated based on the retirement benefit obligation less thefair value of the pension plan assets. The retirement benefit obligation is attributed to each period by the straight-line method
over the estimated remaining years of service of the eligible employees.
The net retirement benefit obligation at transition of ¥592 million is being amortized over fifteen years.
Prior service cost is being amortized by the straight-line method over ten years, which within the average remaining years ofservice of eligible employees, 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 eligible employees.

ICOM INCORPORATED ANNUAL REPORT 201511

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
2. Summary of Significant Accounting Policies (continued)(l) Hedge accounting
The Company utilizes derivative transactions in order to manage the risks arising from adverse fluctuation in foreign currency
exchange rates. In accordance with internal management rules, the Company enters into forward foreign exchange contracts
which fall within the Company’s foreign currency holding limits. Derivative transactions are not entered into for speculative
purposes.
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. Forward foreign exchange contracts which meetcertain conditions are accounted for by a method under which the foreign currency receivables and payables are translated attheir corresponding forward foreign exchange contract rates.
The evaluation of effectiveness of such forward foreign exchange contracts is omitted because significant terms of thehedging instruments and underlying hedged items are the same and the Company assumes that movements in cash flows arecompletely offset.

(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. (Please refer to Note 15.)(Changes in Accounting Policies)
Accounting Standard for Retirement Benefits
Effective March 31, 2014, the Company and its domestic consolidated subsidiaries adopted “Accounting Standard for
Retirement Benefits” (Accounting Standards Board of Japan (“ASBJ”) Statement No.26 issued on May 17, 2013) and“Guidance on Accounting Standards for Retirement Benefits” (ASBJ Guidance No.25 issued on May 17, 2013) based on theprovisions in the main clause of paragraph No.35 of “Accounting Standard for Retirement Benefits” and the main clause ofparagraph No.67 of “Guidance on Accounting Standard for Retirement Benefits”. The methods for calculating the retirement
benefit and service cost have been revised accordingly.
The adoption of these standards had no effect on the liability for retirement benefits and retained earnings at April 1, 2014 oron income before income taxes for the year ended March 31, 2015.
(Standards Issued but Not Yet Effective)
Accounting Standard for Business Combinations
On September 13, 2013, the ASBJ issued “Revised Accounting Standard for Business Combinations” (ASBJ Statement
No.21), “Revised Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.22), “Revised AccountingStandard for Business Divestitures” (ASBJ Statement No.7), “Revised Accounting Standard for Earnings Per Share” (ASBJ
Statement No.2), “Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business
Divestitures” (ASBJ Guidance No.10) and “Revised Guidance on Accounting Standard for Earnings Per Share” (ASBJ
Guidance No.4).
Under these revised accounting standards, the accounting treatment for any changes in a parent’s ownership interest in a
subsidiary when the parent retains control over the subsidiary and the corresponding accounting for acquisition-related costs
were revised. In addition, the presentation method of net income was amended, the reference to “minority interests” waschanged to “non-controlling interests”, and accounting treatment for adjustments to provisional amounts was also changed.
The Company expects to adopt these revised accounting standards and guidance from the beginning of the fiscal year ending
March 31, 2016. In addition, the determination of provisional accounting treatments will be adopted for business combinations
conducted on or after the beginning of the fiscal year ending March 31, 2016.
At present, the Company is currently evaluating the effect of adopting these revised standards on its consolidated financial
statements.

ICOM INCORPORATED ANNUAL REPORT 2015

12

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
3. 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, 2015 and 2014 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

¥
¥

2015
31,937100
32,037¥¥(3,727)¥(100)
28,2102014
30,662–
30,662$$(3,242)¥–
27,4202015
265,787832
266,619(31,017)$(832)
234,770

4. 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 Groupobtains necessary financing through its own funds. The Group manages surplus funds through financial assets that have highlevels 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 “(1) Hedge accounting” in Note 2 “Summary of Significant Accounting Policies”.

ICOM INCORPORATED ANNUAL REPORT 2015

13

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
4. Financial Instruments (continued)(1) General information (continued)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.
(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 the 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.

ICOM INCORPORATED ANNUAL REPORT 2015

14

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
4. Financial Instruments (continued)(2) Estimated fair value of financial instruments
The carrying value, fair value and unrealized gain (loss) of the financial instruments on the consolidated balance sheets at
March 31, 2015 and 2014 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 Note ii below).
Millions of yen

2015
Carrying
value

2014

Fair value

Unrealized
gain (loss)¥¥

Carrying
value

Fair value

Unrealized
gain (loss)¥¥

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

¥

2,159
38,690¥2,159
38,690

¥

–
–

¥

2,181
37,155¥2,181
37,155¥––

Liabilities(1) Accounts payable - trade
Total liabilities

¥
¥

1,178
1,178

¥
¥

1,178
1,178

¥
¥

–
–

¥
¥

1,188
1,188

¥
¥

1,188
1,188

¥
¥

–
–

¥

31,937
4,594

31,937
4,594

–

¥

–

30,662
4,312

30,662
4,312––

Thousands of U.S. dollars

2015
Carrying
value

Fair value

Unrealized
gain (loss)$$

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

17,968321,987$

17,968321,987$––

Liabilities(1) Accounts payable - trade
Total liabilities

$
$

9,804
9,804

$
$

9,804
9,804

$
$

–
–

$

265,787
38,232

265,787
38,232––ICOM INCORPORATED ANNUAL REPORT 201515

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
4. Financial Instruments (continued)(2) Estimated fair value of financial instruments (continued)
Notes:i) Methods to determine the fair value of financial instruments and other matters related to marketable securities andderivative 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 approximate 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 5.
Liabilities(1) Accounts payable - trade
Since this item is settled in a short period of time, its carrying value approximates the fair value.
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 equity securities

¥

2015
204

¥

2014
199

$

2015
1,697

Since there is no market price for unlisted equity securities and it is difficult to determine the fair value, they are notincluded in above “(3) Marketable securities and investments in securities” in the preceding table in “(2) Estimated fairvalue of financial instruments.”

ICOM INCORPORATED ANNUAL REPORT 201516

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
4. Financial Instruments (continued)(3) Redemption schedule
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
Other
Total

¥

¥

31,9372015
Due after
Due after
one yearfive years
throughthrough ten
five years
years
¥
– ¥
–

30,662

Due after
one yearthroughfive years
¥
–

2014
Due after
five years
through ten
years
¥
–

Due after ten
years

Due within
one year¥¥–

Due after ten
years
¥

–

4,594

–

–

–

4,312

–

–

–

100
–

700
100
800

900

100

800
100
900

200

–

–
–

900

–

36,631

¥

¥

900

¥

100

¥

34,974

¥

–
¥

900

–
¥

200

Thousands of U.S. dollars

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

Due after
Due within
one year
one yearthroughfive years$
265,787 $–38,232$

832–
304,851 $2015
Due after
five years
through ten
years
$
–

Due after ten
years
$

–

–

–

–

5,826
832
6,658

7,490
–
7,490

832
–
832

$

$

ICOM INCORPORATED ANNUAL REPORT 201517

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
5. Marketable Securities and Investments in Securities
Marketable securities classified as other securities at March 31, 2015 and 2014 are summarized as follows:
Millions of yen

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

230
1,720
1,950

108
101
209
2,159

2015
Acquisition
cost

Unrealized
gain (loss)

¥

¥

¥

193
1,700
1,893

136
102
238
2,131

¥

Carrying
value

37
20
57

¥

(28)
(1)
(29)
28

¥

48
1,722
1,770

209
202
411
2,181

2014
Acquisition
cost

Unrealized
gain (loss)

¥

¥

¥

11
1,700
1,711

319
202
521
2,232

¥

37
22
59

(110)
(0)
(110)
(51)

Thousands of U.S. dollars

Carrying
value
Securities whose carrying value
exceeds their acquisition cost:
Equity securities$ 1,914
14,314
Corporate bonds
Subtotal
16,228
Securities whose carrying value
does not exceed their acquisition cost:
Equity securities
899
Corporate bonds
841
Subtotal
1,740
Total
$ 17,968

2015
Acquisition
cost

Unrealized
gain (loss)

$

$

1,606
14,14815,754

1,132
849
1,981
$ 17,735

$

308
166
474

(233)
(8)
(241)
233

Since there is no market price for unlisted equity securities and it is difficult to determine the fair value, unlisted equity securities of¥204 million ($1,697 thousand) and ¥199 million at March 31, 2015 and 2014, respectively, are not included in the above table.
Sales of other securities for the years ended March 31, 2015 and 2014 are summarized as follows:
Thousands of
U.S. dollars

Millions of yen

Sales
Aggregate gain

¥

2015
218
9

¥

2014
23
13

$

2015
1,814
75

ICOM INCORPORATED ANNUAL REPORT 201518

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
6. Inventories
Inventories at March 31, 2015 and 2014 consisted of the following:Thousands of
U.S. dollars

Millions of yen

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

¥

¥

2015
3,567
69
2,909
6,545

¥

¥

2014
3,104
80
2,802
5,986

$

$

2015
29,686574
24,20954,469

Cost of sales included loss on devaluation of inventories of ¥48 million ($399 thousand) and ¥60 million for the years ended
March 31, 2015 and 2014, respectively.

7. Retirement Benefits Plans(1) Outline of 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.
Certain consolidated subsidiaries calculate the liability for retirement benefits based on the simplified method. These domestic
subsidiaries have calculated their retirement benefit obligation based on the amount which would be payable at the year end if alleligible employees terminated their services voluntarily.

(2) Liability for retirement benefits for the years ended March 31, 2015 and 2014i) The changes in retirement benefit obligation are outlined as follows (except for retirement benefit obligation
calculated by simplified method):Thousands of
U.S. dollars

Millions of yen

Retirement benefit obligation at beginning of year
Service cost
Interest cost
Actuarial loss (gain)
Retirement benefits paid
Retirement benefit obligation at end of year

¥

¥

2015
3,830
167
77
27
(56)
4,045

¥

¥

2014
3,666
164
73
(15)
(58)
3,830

$

$

2015
31,874
1,390
641
224
(466)
33,663ii) The changes in plan assets at fair value are outlined as follows (except for retirement benefit obligation calculated bysimplified method):Thousands of
U.S. dollars

Millions of yen

Plan assets at fair value at beginning of year
Expected return on plan assets
Actuarial gainContributions by the employer
Retirement benefits paid
Plan assets at fair value at end of year

¥

¥

2015
3,433
69
419
291
(56)
4,156

¥

¥

2014
2,934
59
286
212
(58)
3,433

$

$

2015
28,570
574
3,487
2,422
(466)
34,587ICOM INCORPORATED ANNUAL REPORT 2015

19

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
7. Retirement Benefits Plans (continued)(2) Liability for retirement benefits for the years ended March 31, 2015 and 2014 (continued)iii) The changes in retirement benefits obligation calculated by simplified method are outlined as follows:

Thousands of
U.S. dollars

Millions of yen

Retirement benefit obligation at beginning of year
Retirement benefits expenses
Retirement benefits paid
Retirement benefit obligation at end of year

¥

¥

2015
253
44
(6)
291

¥

¥

2014
215
42
(4)
253

$

$

2015
2,106
366
(50)
2,422

iv) The balance of retirement benefit obligation and plan assets at fair value, liabilities and assets recognized in the
consolidated balance sheets are outlined as follows:

Thousands of
U.S. dollars

Millions of yen

Funded retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Net amount of liabilities and assets recognized inconsolidated balance sheets
Liability for retirement benefits
Net amount of liabilities and assets recognized inconsolidated balance sheets

¥

2015
4,045
(4,156)
(111)
291

¥

2014
3,830
(3,433)
397
253

180
180
¥

180

$

650
650
¥

650

2015
33,663(34,587)
(924)
2,422
1,498
1,498

$

1,498

v) The components of retirement benefit expenses for the years ended March 31, 2015 and 2014 are outlined as follows:

Thousands of
U.S. dollars

Millions of yen

Service cost
Interest cost
Expected return on plan assets
Amortization:
Actuarial loss
Past service cost
Net retirement benefit obligation at transition
Retirement benefit expenses

¥

¥

2015
211
77
(69)
38
(2)
20
275

¥

¥

2014
206
73
(59)
69
(2)
20
307

$

$

2015
1,756
641
(574)
316
(17)
166
2,288

ICOM INCORPORATED ANNUAL REPORT 201520

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
7. Retirement Benefits Plans (continued)(2) Liability for retirement benefits for the years ended March 31, 2015 and 2014 (continued)vi) The components of retirement benefit liability adjustments included in other comprehensive income before the tax
effects are outlined as follows:

Thousands of
U.S. dollars

Millions of yen

2015
Actuarial gain
Past service cost
Net retirement benefit obligation at transition

¥

¥

2014
430
(2)
20
448

¥

–
–
–
–

¥

$

$

2015
3,579
(17)
166
3,728

vii) The balance of retirement benefit liability adjustments recognized in accumulated other comprehensive income
before tax effects are outlined as follows:

Thousands of
U.S. dollars

Millions of yen

Unrecognized actuarial gain
Unrecognized past service cost
Unrecognized net retirement benefit obligation attransition
Total
viii)

¥

¥

2015
765
–
–
765

¥

¥

2014
335
2
(20)
317

$

$

2015
6,366
–
–
6,366

The plan assets by major category consist of the following:

Bonds
Equities
Cash and deposits
Total

2015
45.0%
53.0%
2.0%
100.0%

2014
48.0%
50.0%
2.0%
100.0%The expected long-term rate of return on plan assets is determined as a result of consideration of both the portfolio allocationand long-term expected rate of return from multiple plan assets at present and in the future.
ix) The assumptions used in accounting for the defined benefit pension plans for the years ended March 31, 2015 and2014 are as follows:

Discount rate
Expected long-term rate of return on plan assets
Expected rate of compensation increases

2015
2.0%
2.0%
1.7%

2014
2.0%
2.0%
1.7%

ICOM INCORPORATED ANNUAL REPORT 201521

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
8. 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 rates of approximately 35.6% and 38.0% for the years ended March 31, 2015 and 2014,
respectively. 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, 2015 and 2014 as a percentage ofincome before income taxes are as follows:
2015
35.6%
0.5
0.7
(9.0)
(0.4)
2.3
(0.4)
(0)
29.3%

Statutory tax rate
Permanently non-deductible expenses
Per capita portion of inhabitants’ taxes
Tax credit for research and development costs
Differences in tax rates applicable to overseas subsidiaries
Effect of changes in corporate tax rates
Tax valuation allowance
Other
Effective tax rates

2014
38.0%
0.5
0.6
(6.9)
(1.0)
0.4
0.9
1.1
33.6%

The significant components of deferred tax assets and liabilities at March 31, 2015 and 2014 are summarized as follows:
Thousands of
U.S. dollars

Millions of yen

2015
Deferred tax assets:
Unrealized gain on inventories
Long-term accounts payable-otherAccrued bonuses
Deferred revenue
Liability for retirement benefits
Accrued enterprise tax
Allowance for doubtful accounts
Write down of investments in securities
Accrued legal welfare expense on bonuses
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Gain on sales of fixed assets
Depreciation
Accrued interest
Reserve for special depreciation
Other
Total deferred tax liabilities
Net deferred tax assets

¥

¥

354
163
146
59
56
53
30
25
22
113
1,021
(44)
977

(252)
(43)
(10)
(3)
(11)
(319)
658

2014
¥

¥

283
181
153
56
229
42
37
27
23
118
1,149
(57)
1,092

(210)
(38)
(10)
(5)
(1)
(264)
828

2015
$

$

2,946
1,356
1,215
491
466
441
250
208
183
941
8,497
(366)
8,131

(2,097)
(358)
(83)
(25)
(92)
(2,655)5,476

ICOM INCORPORATED ANNUAL REPORT 2015

22

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
8. Income Taxes (continued)
The “Act for Partial Amendment of the Income Tax Act, etc.” (Act No.9, 2015) and the “Act for Partial Amendment of the Local
Tax Act, etc.” (Act No.2, 2015) were promulgated on March 31, 2015. As a result, the effective statutory tax rates used to measure
the Company’s deferred tax assets and liabilities was changed from 35.6% to 33.0% and 32.2% for the temporary differences
expected to be realized or settled in the year beginning April 1, 2015 and for the temporary differences expected to be realized or
settled from April 1, 2016, respectively. The effect of the announced reduction of the effective statutory tax rate was to decreasedeferred tax assets, after offsetting deferred tax liabilities, by ¥40 million ($333 thousand), and increase deferred income taxes by ¥67
million ($558 thousand), net unrealized holding gain on securities by ¥0 million ($0 thousand), and retirement benefit liability
adjustments by ¥25 million ($208 thousand) as of and for the year ended March 31, 2015.

9. 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, 2015 and 2014 amounted to ¥293 million ($2,847
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, 2015 and 2014 are summarized as follows:

April 1, 2014
Shares issued:
Common stock
Treasury stock:
Common stock

March 31, 2015

14,850,000––

14,850,000

31,607

176–

31,783

April 1, 2013
Shares issued:
Common stock
Treasury stock:
Common stock

Number of shares
2015
Increase
Decrease

Number of shares
2014
Increase
Decrease

March 31, 2014

14,850,000––

14,850,000

31,58324–

31,607The increases in treasury stock were due to purchases of shares of less than one voting unit.

10. Research and Development Costs
Research and development costs included in selling, general and administrative expenses for the years ended March 31, 2015 and2014 are as follows:
Thousands of
U.S. dollars

Millions of yen

Research and development costs

¥

2015
3,095

¥

2014
3,234

$

2015
25,757ICOM INCORPORATED ANNUAL REPORT 201523

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
11. Other Comprehensive Income
Reclassification adjustments and tax effects of other comprehensive income for the years ended March 31, 2015 and 2014 are as
follows:
Thousands of
U.S. dollars

Millions of yen

2015
Net unrealized holding gain on securities:
Amount arising during the year
Reclassification adjustments
Before tax effects
Tax effects
Net unrealized holding gain on securities

¥

2014
87
(9)
78
27
51

¥

2015

34
(13)
21
7
14

$

724
(75)
649
225
424

Translation adjustments:
Amount arising during the year

470

348

3,911

Retirement benefit liability adjustments:
Amount arising during the year
Reclassification adjustments
Before tax effects
Tax effects
Retirement benefit liability adjustments
Total other comprehensive income

392
56
448
(134)
314
835

－
－
－
－
－
362

3,263
465
3,728
(1,115)
2,613
6,948

¥

¥

$

12. Amounts Per Share
Amounts per share at March 31, 2015 and 2014 and for the years then ended are as follows:Yen

Net assets
Net income:
Basic
Cash dividends¥

2015
3,637.17
142.72
35.00¥

U.S. dollars

2014
3,468.01
151.02
30.00

$

2015
30.27
1.19
0.29

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. Cash dividends per share represent the cash dividends declared as applicable to the respective fiscal years.

ICOM INCORPORATED ANNUAL REPORT 201524

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
13. Segment Informationi) 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 comprehensive strategies for products and operate businessgeographically.
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 and Canada; “Europe,” which primarily includes Germany and Spain;and “Asia and Oceania,” which primarily includes Australia and Taiwan.
ii) Calculation methods used for sales, income 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 2.Segment performance is evaluated based on operating income or loss. Intersegment sales are recorded at thesame prices applied in transactions with third parties.

(Changes in accounting treatment for retirement benefits)
As noted in Note 2 under “Change in Accounting Policies,” due to the changes in accounting treatment for retirement
benefits, the methods of calculating retirement benefit obligation and service costs in each business segment were changed.
The adoption these standards had no effect on operating income (loss) of each reporting segment for the year ended March
31, 2015.
iii) Information as to sales, income or loss, assets and other items on each reporting segment
Information by reporting segment for the years ended March 31, 2015 and 2014 are as follows:
Millions of yen

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

North
America¥ 15,377
7,684
23,061
20,434¥ 2,627¥¥ 50,127
¥

760

2015
Asia &
Oceania

Europe

¥

¥

8,854
3
8,857
8,735
122

¥

¥

1,053
0
1,053
1,086
(33)

¥

1,115
430
1,545
1,519
26

¥

7,324

¥

768

¥

3,203

¥

88

¥

7

¥

11

Subtotal

Eliminations

Consolidated¥ 26,399
8,117
34,516
31,774¥ 2,742¥¥¥–(8,117)(8,117)(7,876)(241)¥

26,399–26,39923,8982,501¥ 61,422¥(2,762)¥58,660

¥

¥

–

¥

866

866

93

–

–

–

93

–

93

769

53

6

8

836

–

836

ICOM INCORPORATED ANNUAL REPORT 201525

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
13. Segment Information (continued)iii) Information as to sales, profit or loss, assets and other items on each reporting segment (continued)
Millions of yen

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

¥

¥

¥

16,335
6,364
22,69920,5082,191¥

48,327¥2014
Asia &
Oceania

Europe

¥

¥

7,622
12
7,634
7,703
(69)

¥

Subtotal

¥

¥

1,339
376
1,715
1,589
126

¥

26,283
6,752
33,03530,841
2,194

833

¥

3,187

¥

6

¥

10

¥

Eliminations¥

Consolidated

¥

¥

987
0
987
1,041
(54)

¥

¥

–
(6,752)(6,752)(6,763)
11¥

26,283–
26,28324,078
2,205

5,437

¥

57,784¥(1,326)¥56,458

798 ¥

68

¥

882

¥

–

¥

882

86

–

–

–

86

–

86

615

364

7

5

991

–

991

Eliminations

Consolidated$ 219,699–
219,699
198,885$ 20,814$ 488,182

Thousands of U.S. dollars

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

2015
Asia &
Oceania

Japan

North
America

Europe$ 127,971
63,948
191,919
170,057$ 21,862$ 73,685
25
73,71072,695$ 1,015$ 8,764
0
8,764
9,038
$ (274)

9,279
3,579
12,85812,641$217$$ 417,169$ 60,952$ 6,391$ 26,656

$

$

$

$

6,325

732

58

$

92

Subtotal$$

219,699
67,552287,251
264,431
22,820$–(67,552)(67,552)(65,546)(2,006)$

511,168$(22,986)

$

7,207

$

–

$

7,207

774

–

–

–

774

–

774

6,400

441

50

67

6,958

–

6,958

ICOM INCORPORATED ANNUAL REPORT 2015

26

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
13. Segment Information (continued)iv) Geographical information(a) Sales
Sales categorized by country and region based on locations of customers by the Group for the years ended March 31,
2015 and 2014 were summarized as follows:
Millions of yen

Japan
USA
North America (except USA)
EuropeAsia & Oceania
Other
Total

¥

¥

2015
8,353
6,364
1,636
3,748
5,316
982
26,399¥¥Thousands of U.S. dollars

2014
8,277
5,633
1,396
3,477
6,768
732
26,283$$

2015
69,51652,963
13,61531,192
44,241
8,172
219,699(b) Property, plant and equipment
Property, plant and equipment categorized by country and region at March 31, 2015 and 2014 were summarized asfollows:
Millions of yen

Japan
North America
EuropeAsia & Oceania
Total

¥

¥

2015
6,441
1,441
16
196
8,094

¥

¥

Thousands of U.S. dollars

2014
6,420
1,276
18
206
7,920

$

$

2015
53,604
11,992
133
1,631
67,360Disclosure of the information by product and service for the years ended March 31, 2014 and 2015 has been omitted as
sales of products and services to external customers in a single segment account for more than 90% of net sales in the
consolidated statement of income.
Disclosure of the information by major customers for years ended March 31, 2015 and 2014 has been omitted as sales
to each customer were less than 10% of consolidated net sales.

ICOM INCORPORATED ANNUAL REPORT 2015

27

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
14. Significant Subsidiaries and Affiliates
The Company’s subsidiaries and significant affiliates at March 31, 2015 are presented as follows:
Ownership
Interest
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

United States of America
Germany
Australia
Spain
Taiwan
China
Japan
Japan
United States of America
CanadaConsolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated sub-subsidiary
Consolidated sub-subsidiary

100.0%

BrazilConsolidated sub-subsidiary

Comforce Inc.

49.0%

Japan

Position Co., Ltd.

33.3%

Japan

Name
Icom America, Inc.
Icom (Europe) GmbH
Icom (Australia) Pty., Ltd.
Icom Spain, S.L.
Asia Icom Inc.
PURECOM CO., LTD.
Wakayama Icom Inc.
Icom Information Products Inc.
Icom America License Holding LLC
ICOM CANADA HOLDINGS INC.
ICOM DO BRASIL
RADIOCOMUNICACAO LTDA.

Country of Incorporation

Subsidiaries/Affiliate

Affiliate accounted for by theequity method
Affiliate accounted for by theequity method

Effective the year ended March 31, 2015, PURECOM CO., LTD. has been newly established and included in the scope of
consolidation.

15. 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, 2015, was approved at the Company’s general shareholders’ meeting held on June24, 2015:
Thousands of
U.S. dollars

Millions of yen

Cash dividends (¥20 = U.S.$0.17 per share)

¥

2015
296

¥

2014
222

$

2015
2,463

ICOM INCORPORATED ANNUAL REPORT 201528

BOARD OF DIRECTORSAND AUDITORSTokuzo Inoue
Chairman and Representative Director

Tsutomu Fukui
President and Representative Director

Nobuo Ogawa
Executive Managing Director

Hiroshi Shimizu
Director

Kenichi Kojiyama
Director

Haruyuki Yoshizawa
Outside Director

Kenji Oono
AuditorHiroshi Umemoto
Outside Auditor

Katsunori Sugimoto
Outside Auditor

EXECUTIVE OFFICERS
Masataka Harima
Hiroshi Nakaoka
Takashi Tsujiuchi
Shinichi Matsuo
Shigeyoshi Tanabe
Yoshiteru Yano
Yoshiki Enomoto

DIRECTORY
Head Office: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/

Subsidiaries:
Icom America, Inc.
12421 Willows Road NE, Kirkland,
WA 98034, 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
PURECOM CO.,LTD
Room 1110H, Block A, Tiley Central
Plaza, Haide 3rd road, Nanshan
District, Shenzhen, 518054, China.
Phone: 86-755-8633-2141
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
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
12421 Willows Road NE, Kirkland,
WA 98034, U.S.A
Phone: 1-425-454-8155
Fax: 1-425-454-1509
Icom Canada, Inc.
#150-6165 Hwy 17
Delta, BC V4K 5B8Phone: 1-604-952-4266
Fax: 1-604-952-0090
URL http://www.icomcanada.com/

Icom Do Brasil Radiocomunicacao
LTDA.
Rua Itororó, 444 Padre Eustáquio Belo
Horizonte MG, CEP: 30130-150 Brazil
Phone: 55-31-3582-8847

Affiliates:
Comforce Inc.
Sumitomofudousanhamatyou Bld.8F,
3-42-3, Nihombashihamacho, Chuo-ku,
Tokyo, 103-0007, JAPAN
Phone: 81-3-3662-1167
Fax: 81-3-3662-1168
URL http://www.comforce.co.jp/
Position Co., Ltd.
3-1-7 Mitatouhou Bld.5F, Mita,
Minato-ku, Tokyo, 108-0073, JAPAN
Phone: 81-3-5439-6011
Fax: 81-3-5439-6012
URL http://www.posit.co.jp/index.html

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
Keiichi Uehata
General Manager of Business
Management Department
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, 2015)
Established: July 1964
Employees: 624
Paid-in capital: ¥7,081 million
Authorized shares: 34,000,000
Issued and outstanding shares:
14,850,000
Shareholders: 5,487
Stock listing: Tokyo Stock Exchange(As of March 31, 2015)
Major shareholders
Tokuzo Inoue
State Street Bank and Trust Company
Gigapalace Inc.
The Icom Foundation
JPMorgan Chase & Co.
JVC KENWOOD Corporation
Meiji Yasuda Life Insurance Company
The Master Trust Bank of Japan, Ltd.
Japan Trustee Service Bank, Ltd.
Bank of Tokyo-Mitsubishi UFJ, Ltd.
Hiroshima Bank, Ltd.

Thousands of shares
1,868
1,781
1,472
1,000
909
445
326
306
297
243
240