Kyoritsu Maintenance Co., Ltd.
(Securities Code: 9616)

First Half of the Fiscal Year Ending March 2018
Consolidated Earnings Results Update
November 20171

First Half of the Fiscal Year Ending March 2018 Consolidated Earnings Announcement
November 9, 2017

Company Name: Kyoritsu Maintenance Co., Ltd.
Tokyo Stock Exchange
Stock Code: 9616, URL: http://www.kyoritsugroup.co.jp/
Director: Takumi Ueda, President
Contact: Koji Nakamura, Director, General Manager of Management Planning Department; Tel: +81-3-5295-7778
Quarterly Earnings Announcement Report Filing Date (Anticipated): November 14, 2017
Dividend Payment Date (Anticipated): December 5, 2017
Quarterly Earnings Presentation Document (Anticipated): Yes
Quarterly Earnings Presentation Meeting (Anticipated): Yes (For Institutional Investors)(All figures of less than one million yen are rounded down to the nearest digit)
1. First Half of the Fiscal Year Ending March 2018 Consolidated Earnings (April 1, 2017 to September 30, 2017)(1) Consolidated Earnings (Aggregated)(% figures show year-on-year change)
Net Sales

Operating Income

Profit Attributable to Ownersof Parent

Ordinary Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

70,936

3.6

7,215

0.6

7,061

2.9

4,632

8.5

68,477
2.4
7,173
16.6
6,861
19.0
4,268
1H FY3/17(Note) Comprehensive income: ¥4,665 million (17.9% YoY) in 1H FY3/18; ¥3,957 million (23.5% YoY) in 1H FY3/17

12.3

1H FY3/18

EPS%

Fully Diluted EPS

1H FY3/18

Yen

Yen

119.40109.49110.32100.891H FY3/17(Note) The Company carried out a stock split on April 1, 2017, at a ratio of two shares per one common share. Accordingly, EPS andfully diluted EPS have been calculated presuming that this stock split was carried out at the start of the previous consolidated fiscal year.
(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Book Value Per Share

Millions of yen

Millions of yen%

Yen

185,526

68,46836.9

1,763.43

1H FY3/18

FY3/17
173,609
64,32037.0
1,660.61(Note) Capital: ¥68,468 million in 1H FY3/18; ¥64,320 million in FY3/17(Note) The Company carried out a stock split on April 1, 2017, at a ratio of two shares per one common share. Accordingly, book value
per share has been calculated presuming that this stock split was carried out at the start of the previous consolidated fiscal year.
2. Dividend Conditions
Dividend Per Share
1Q-End2Q-EndYen

3Q-EndFY3/17

―

Yen
26.00

FY3/18―18.00

4Q-End
Yen

Total
Yen
36.00

―

Yen
62.00

FY3/18 (Projected)―
18.00(Note) Recent changes in dividend projections: None
(Note) The Company carried out a stock split on April 1, 2017 at a ratio of two shares per one common share. The actual dividend
amount prior to the stock split is noted here for the fiscal year ended in March 2017.

36.00

3. Fiscal Year Ending March 2018 Consolidated Earnings Estimates (April 1, 2017 to March 31, 2018)(% figures show year-on-year change for the full year)
Net Sales

Operating Income

EPS

Millions of yen% (YoY)

Millions of yen% (YoY)

Millions of yen% (YoY)

Yen

Full Year
148,200
9.1
12,200(Note) Recent changes in earnings estimates: None

3.3

11,700

1.6

8,000

12.1

206.54

Millions of yen% (YoY)

Profit Attributable to
Owners of Parent

Ordinary Income2Notes(1) Important changes in our subsidiaries, including changes to the scope of our consolidation: None
(2) Application of special accounting procedures in the preparation of our quarterly consolidated financial statements: Applicable(Note) Please refer to “2. Quarterly Consolidated Financial Statements and Important Notes, (4) Quarterly consolidated financial
statement notes (Application of special accounting procedures in the preparation of our quarterly consolidated financial
statements)” on page 13 for more details.
(3) Changes in the accounting policies, procedures, and changes or revisions in the display of accounting estimates:
1. Changes accompanying revisions in accounting standards:
None
2. Other changes:
None
3. Changes in accounting estimates:
None
4. Redisplay of revisions:
None(4) Shares Issued (Common Stocks)
1. Shares issued as of term-end (including treasury shares)

1H FY3/18
1H FY3/18
1H FY3/18

2. Treasury stock as of term-end
3. Average during the term (first six months)

39,050,067
222,976
38,794,398

FY3/17
FY3/17
1H FY3/17

38,954,452
221,546
38,696,070(Note) The Company carried out a stock split on April 1, 2017, at a ratio of two shares per one common share. Accordingly, sharesissued (common stock) has been calculated presuming that this stock split was carried out at the start of the previous
consolidated fiscal year.
* The earnings announcement is exempt from quarterly review practices.
* Notes and explanations regarding the appropriate use of our earnings projections:
All earnings estimates and forward-looking statements in this document are based on the best information available and rational
decisions of management at the time of its creation, and actual earnings may diverge largely from those estimates and forward-looking
statements put forward in this document due to various unforeseen factors. Moreover, for information regarding earnings estimates
and the assumptions upon which they are based, and the usages of these earnings estimates, please refer to the section, “1. Qualitative
Information about Quarterly Earnings, (3) Explanation of future forecasts including consolidated earnings estimates” on page 6.
(Method for obtaining supplementary explanatory information on financial results)
The Company will post supplementary explanatory information on financial results on its website.

3

Kyoritsu Maintenance (9616), 1H FYE March 2018 Earnings Announcement
Index
1. Qualitative Information about Quarterly Earnings

5(1) Explanation of business performance5(2) Explanation of financial position

6(3) Explanation of future forecasts including consolidated earnings estimates6

2. Quarterly Consolidated Financial Statements and Important Notes

7(1) Quarterly consolidated balance sheet

7(2) Quarterly consolidated income statement and comprehensive income statement

9

Quarterly consolidated income statement
Consolidated first half

9

Quarterly consolidated comprehensive income statements
Consolidated first half

10(3) Consolidated cash flow statement

11(4) Quarterly consolidated financial statement notes

13(Notes regarding going concern assumptions)

13(Significant changes in shareholders’ equity notes)

13(Application of special accounting procedures in the preparation of
our quarterly consolidated financial statements)(Segment information)

13
13

4

Kyoritsu Maintenance (9616), 1H FYE March 2018 Earnings Announcement
1. Qualitative Information about Quarterly Earnings(1) Explanation of business performance
During the first half of the consolidated fiscal year ending March 31, 2018, growth in inbound demand, an upturn in
employee hiring among corporations, and an increase in the number of foreign students improved the Group’s businessenvironment. However, signs of uncertainty ahead also prevailed given factors that included a labor shortage and newentrants from other industries into the Group’s core dormitory and hotel businesses. Geopolitical risk has also been cited as
yet another factor affecting the Group’s business.
In this environment, the Group established the Kyoritsu Jump Up Plan, a five-year medium-term management plan thatbegins this fiscal year, under which we steadily promoted the two aims of improving customer satisfaction and pursuing
advanced developments, which together constitute the framework for the medium-term management plan.
As a result, during the first half of the current fiscal year, sales rose 3.6% year on year to ¥70,936 million, and operating
income increased 0.6% to ¥7,215 million. Ordinary income was up 2.9% to ¥7,061 million. Profit attributable to owners ofparent climbed 8.5% over the previous year to ¥4,632 million. During the first half of the consolidated fiscal year ending
March 31, 2018, our forecast initially projected operating income and ordinary income below previous year levels due tothe emergence of skewed results, largely involving business commencement expenses in the hotel business incurred on thebasis of the medium-term management plan. However, the actual earnings results substantially exceeded our initial
forecasts due to favorable performance in both the dormitory business and the hotel business, thereby ultimately setting
new record highs amid a year-on-year increase in earnings, sufficient to offset the business commencement expenses andother costs.
We provide details of our earnings by business segment as follows.
Dormitory businessOur dormitory business got off to a solid start with a 98.3% occupancy rate at the beginning of the fiscal term, the same as
the previous year, and an increase of 597 year on year in the total number of contracted residents cumulated in 34,305
residents as of the end of September. In addition, student dormitories trended favorably during the first half of the current
fiscal year, while corporate dormitories achieved gains in the number of contracts due to factors that included companies
actively hiring greater numbers of new employees and more companies now opting to offer employee dormitories.
Consequently, sales rose by 3.5% year on year to ¥23,343 million, while operating income increased by 4.3% to ¥3,698
million, largely as a result of having appropriately implemented cost controls.
Hotel businessIn the Dormy Inn (business hotel) business we opened five facilities, namely “Myojin no Yu Dormy Inn Premium Kanda,”“Natural Springs Hyuga no Yu Dormy Inn Miyazaki,” “Natural Springs Kaijin no Yu Dormy Inn EXPRESS Sendai
Seaside,” “Natural Springs Yakumo no Yu Dormy Inn Izumo,” and “Natural Springs Shoun no Yu Dormy Inn Kofu
Marunouchi.” Moreover, existing hotels generated favorable results amid steady growth, exceeding levels of the same
period in the previous fiscal year with respect to both occupancy rates and the Average Daily Rate due to an increase inbusiness involving inbound customers, and solid demand from repeat customers.
In the resort hotel business, we opened two facilities, namely the “Inishie no Yado Keiun,” and “Oyado Tsukiyo no Usagi”
hotels, both in the vicinity of the Izumo Taisha shrine. In addition, existing hotels achieved year-on-year increases in both
occupancy rates and the Average Daily Rate despite the adverse effects of typhoons on business. Moreover, we thoroughly
implemented cost controls in part by means of flexible personnel assignments tailored to occupancy conditions
As a result, sales rose 15.6% year over year to ¥34,769 million and operating income increased 1.6% to ¥4,699 million,
absorbing preparation costs for the opening of new hotels.
Contracted services businessIn the contracted services business, earnings decreased despite an increase in revenues, due to the impact of major
construction work in the same period in the previous year. As a result, sales increased 0.2% to ¥6,478 million and operating
income fell by 8.5% year on year to ¥138 million.
Food service business
The food service business recorded higher revenues and earnings due to increased business in hotel restaurant outsourcing
and also due to closures of unprofitable establishments. Consequently, sales increased by 6.9% to ¥3,380 million andoperating income was ¥59 million, in comparison with an operating loss of ¥26 million in the same quarter of the previous
fiscal year.

5Kyoritsu Maintenance (9616), 1H FYE March 2018 Earnings Announcement
Construction businessIn the construction business, although revenue rose largely due to an increase in hotel development projects, earnings
declined due to a drop in the development of built-for-sale condominiums. As a result, sales increased 8.2% to ¥10,676
million and operating income fell by 26.4% year on year to ¥395 million.
Other business
Our other business segments are the Senior Life business (management of senior citizen housing), the PKP business(consigned services business provided to regional government bodies), single life support business and insurance agency
business, comprehensive human resource services business, and financing and administrative outsourcing services. The
other business segments posted total net sales of ¥5,952 million, an increase of 5.2% year on year, and incurred an
operating loss of ¥131 million, in comparison with an operating loss of ¥108 million in the same period of the previous
fiscal year.
(2) Explanation of financial position
1. Conditions of assets, liabilities, and net assets(Assets)
Total consolidated assets rose by ¥11,916 million from the end of the previous fiscal year to ¥185,526 million at the end of
the second quarter. The main factor behind this increase was an increase in buildings and structures, and land.
(Liabilities)
Total consolidated liabilities rose by ¥7,767 million from the end of the previous fiscal year to ¥117,057 million at the end of
the second quarter, due primarily to an increase in short-term loans payable.
(Net assets)
Net assets grew by ¥4,148 million from the end of the previous fiscal year to ¥68,468 million at the end of the second quarter,due mainly to a rise in retained earnings.
Consequently, equity ratio declined by 0.1 p.p. from the end of the previous fiscal year to 36.9% at the end of the second
quarter.
2. Cash flow conditions
Cash and equivalents increased by ¥1,617 million from the end of the previous fiscal year to ¥16,470 million at the end of thesecond quarter.
(Cash flow from operating activities)
Net cash provided by operating activities amounted to ¥3,070 million in the current first half, a decrease of ¥298 million
compared with the same period of the previous fiscal year due to a decrease in notes and accounts receivable-trade.
(Cash flow from investing activities)
Net cash used by investing activities amounted to ¥13,229 million in the current first half, a decrease of ¥795 million
compared with the same period of the previous fiscal year due to proceeds from sales of property, plant and equipment, andpayments for lease and guarantee deposits.
(Cash flow from financing activities)
Net cash provided by financing activities amounted to ¥11,803 million in the current first half, an increase of 12,584 million
compared with the same period of the previous fiscal year due to a net increase in short-term loans payable and repaymentsof long-term loans payable.
(3) Explanation of future forecasts including consolidated earnings estimates
Our consolidated earnings estimates for the first six months and the full fiscal year ending March 31, 2018, as provided in the“Fiscal Year Ending March 2018 Consolidated Earnings Announcement” dated May 15, 2017, remain unchanged at this point
in time.

6

Kyoritsu Maintenance (9616), 1H FYE March 2018 Earnings Announcement
2. Quarterly Consolidated Financial Statements and Important Notes(1) Quarterly consolidated balance sheet
FY3/17(March 31, 2017)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Real estate for sale in process
Costs on uncompleted construction contracts
Other
Allowance for loan losses
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Guarantee deposits
Lease deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

7(Unit: Millions of yen)
1H FY3/18(September 30, 2017)15,210
8,643
920
420
7,179
(23)
32,35016,827
7,537
795
272
7,795
(24)
33,20340,251
37,77017,373
2,698
98,094
2,957

44,997
40,834
16,687
3,111
105,630
3,743

5,032
14,561
11,526
8,979(206)
39,892140,944313
173,609

5,665
15,177
12,4409,588(214)42,657152,031290
185,526

Kyoritsu Maintenance (9616), 1H FYE March 2018 Earnings Announcement(Unit: Millions of yen)
1H FY3/18(September 30, 2017)

FY3/17(March 31, 2017)
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Current portion of bonds
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Provision for warranties for completed construction
Provision for point card certificates
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Bonds payable
Convertible bond-type bonds with subscription
rights to shares
Long-term loans payable
Director retirement benefit reserve
Provision for point card certificates
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

8

6,230
17,398
2,950
2,175
1,829
486
8
18
30
21,35152,477

4,557
35,315
2,950
2,552
1,106
193
8
17
20
18,871
65,594

18,65017,175

20,511

20,326

11,842
287
28
1,102
4,389
56,811
109,289

7,930
268
39
1,122
4,600
51,462
117,057

7,703
12,55843,888(321)
63,829

7,795
12,65147,823(326)
67,944

834
(356)
13
491
64,320173,609

930
(417)
10
524
68,468
185,526

Kyoritsu Maintenance (9616), 1H FYE March 2018 Earnings Announcement(2) Quarterly consolidated income statement and comprehensive income statement(Quarterly consolidated income statement)(Consolidated first half)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on investments in partnership
Other
Total non-operating income
Non-operating expense
Interest payment
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Insurance premiums refunded cancellation
Other
Total extraordinary income
Extraordinary losses
Impairment loss
Provision for loss on disaster
Loss on retirement of non-current assets
Dismantlement costs
Total extraordinary losses
Income before income taxes
Income taxes

1H FY3/17(April 1, 2016 to
September 30, 2016)
68,47752,305
16,172
8,998
7,173(Unit: Millions of yen)
1H FY3/18(April 1, 2017 to
September 30, 2017)70,93653,52017,415
10,200
7,215

35
27
－
95
158

31
31
149
70
283

313
156
470
6,861

261
175
436
7,061

－
－
－
－

71
25
1
99

89
304
27
－
421
6,440
2,171
4,268
4,268

－
－
113
115
228
6,931
2,299
4,632
4,632

ProfitProfit attributable to owners of parent

9

Kyoritsu Maintenance (9616), 1H FYE March 2018 Earnings Announcement(Quarterly consolidated comprehensive income statements)(Consolidated first half)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to owners of parent

10

1H FY3/17(April 1, 2016 to
September 30, 2016)
4,268(Unit: Millions of yen)
1H FY3/18(April 1, 2017 to
September 30, 2017)
4,632

(27)
(290)
6
(310)
3,957

96
(60)
(2)
33
4,665

3,957

4,665

Kyoritsu Maintenance (9616), 1H FYE March 2018 Earnings Announcement(3) Consolidated cash flow statement(Unit: Millions of yen)Previous Term FY3/17(April 1, 2016 to
September 30, 2016)
Cash flow from operating activities
Income before income taxes and minority
interests
Depreciation

Current Term FY3/18(April 1, 2017 to
September 30, 2017)

6,440

6,931

1,849

2,084

Amortization of long-term prepaid expenses

202

212

Amortization of guarantee deposits

107

125

Increase (decrease) in provision for bonuses

(717)

(722)

Interest and dividend income

(63)

(62)

Interest expenses

313

261

–

(149)

27

42

–

(25)

Impairment loss

89–

Loss on disaster
Dismantlement costs

304

–

–

115

2,709

1,105

357

609

1,005

256

(2,591)(1,672)

Loss (gain) on investments in partnership
Loss (gain) on sales and retirement of
non-current assets
Surrender value of insurance

Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in accounts receivable other
Decrease (increase) in other inventories
Increase (decrease) in notes and accounts
payable - trade
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in accrued consumption
taxes
Increase (decrease) in deposits received

(111)

106

(3,005)(2,987)

320

(345)

(604)

(479)

25

138

Increase (decrease) in guarantee deposits
received
Other

(357)

(312)

Subtotal

6,302

5,232

Interest and dividend income received

35

33Interest expenses paid

(313)

(263)

Income taxes refund

1

6(2,657)(1,938)

3,368

3,070

(11)

(524)

Income taxes (paid) refund
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of securities
Proceeds from sales of securities
Purchase of property, plant and equipment

92

21(10,650)(11,836)

Proceeds from sales of property, plant andequipment
Purchase of intangible assets

112

3,122

(897)

(811)

Payments of loans receivable

(344)

(856)

Collection of loans receivable

404

136

(2,512)(1,710)

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Purchase of insurance funds

52

16

(540)

(563)

Proceeds from cancellation of insurance funds

175

47

Other

96

(273)

(14,024)(13,229)

Net cash provided by (used in) investing
activities

11

Kyoritsu Maintenance (9616), 1H FYE March 2018 Earnings Announcement(Unit: Millions of yen)Previous Term FY3/17(April 1, 2016 to
September 30, 2016)
Cash flow from financing activities
Net increase (decrease) in short-term loans
payableRepayments of long-term loans payable

Current Term FY3/18(April 1, 2017 to
September 30, 2017)

7,350

18,350(6,898)(4,344)(675)(1,475)(8)(5)

Cash dividends paid

(521)

(694)

Other

(27)

(27)

(780)

11,803

Redemption of bonds
Purchase of treasury shares

Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

(108)

(27)

(11,545)

1,617

Cash and cash equivalents at beginning of period

25,603

14,853

Cash and cash equivalents at end of period

14,057

16,47012

Kyoritsu Maintenance (9616), 1H FYE March 2018 Earnings Announcement(4) Quarterly consolidated financial statement notes(Notes regarding going concern assumptions)Not applicable(Significant changes in shareholders’ equity notes)
Not applicable(Application of special accounting procedures in the preparation of our quarterly consolidated financial statements)(Calculation of tax expense)
The Company applies the method that reasonably estimates an effective tax rate to be assessed on income before income
taxes for the year ending March 31, 2018, including this three months ended June 30, 2017, after accounting for the tax
effects, and multiplies income before income taxes during the three months ended June 30, 2017 by this estimated effective
tax rate. However, in the event that the estimate for the effective tax rate appears to lack logical rationale, then the legally
determined effective tax rate is employed.
(Segment information)
Segment information
I. First half of the fiscal year ended March 2017 (From April 1 to September 30, 2016)
1. Information pertaining to segment sales, profits and losses(Unit: Millions of yen)
Reporting segments
Other(Note 1)

Total

Adjustments(Note 2)

Consolidated(Note 3)

Dormitories

HotelsContracted
Services

22,441

30,009

3,523

846

6,229

63,0505,426

68,477–

68,477

114

65

2,943

2,317

3,634

9,075

233

9,308

(9,308)–

Total

22,55530,074

6,467

3,163

9,864

72,125

5,660

77,786(9,308)68,477

Segment profit/loss

3,546

4,624

151

(26)

537

8,832

(108)

8,723

(1,549)

7,173

Food
Services

Construction

Subtotal

Sales
External sales
Inter-segment sales
and transfers(Notes) 1. Other is not considered as a reporting business segment and is comprised of the Senior Life (management of seniorcitizen housing), PKP business (consigned services business provided to regional government bodies), single life support
services, insurance agency business, comprehensive human resources, financing, administrative outsourcing services,and other related services.
2. Adjustment for segment profit and loss of ¥1,549 million includes ¥349 million for inter-segment transaction
eliminations, and ¥1,200 million in companywide expenses that cannot be allocated to specific reporting segments.
Companywide expenses are primarily those expenses arising from the accounting and management divisions.
3. Segment profits or losses are derived by adjusting the operating income used in the quarterly consolidated income
statement.

2. Impairment accounting losses and goodwill amortization of fixed assets by reporting segments
None

13

Kyoritsu Maintenance (9616), 1H FYE March 2018 Earnings Announcement
II. First half of the fiscal year ending March 2018 (From April 1 to September 30, 2017)
1. Information pertaining to segment sales, profits and losses(Unit: Millions of yen)
Reporting segments
Other(Note 1)

Total

Adjustments(Note 2)

Consolidated(Note 3)

Dormitories

HotelsContracted
Services

External sales

23,201

34,682

3,650

869

2,828

65,231

5,705

70,936–70,936

Inter-segment
sales andtransfers

142

87

2,827

2,511

7,848

13,417

246

13,664(13,664)–

Total

23,34334,769

6,478

3,380

10,67678,6495,952

84,601(13,664)

70,936

Segment
profit/loss

3,698

4,699

138

59

395

8,990

(131)

8,858

(1,643)

7,215

Food
Services

Construction

Subtotal

Sales(Notes) 1. Other is not considered as a reporting business segment and is comprised of the Senior Life (management of seniorcitizen housing), PKP business (consigned services business provided to regional government bodies), single life support
services, insurance agency business, comprehensive human resources, financing, administrative outsourcing services,and other related services.
2. Adjustment for segment profit and loss of ¥1,643 million includes ¥302 million for inter-segment transaction
eliminations, and ¥1,341 million in companywide expenses that cannot be allocated to specific reporting segments.
Companywide expenses are primarily those expenses arising from the accounting and management divisions.
3. Segment profits or losses are derived by adjusting the operating income used in the quarterly consolidated income
statements.

2. Impairment accounting losses and goodwill amortization of fixed assets by reporting segmentsNone14