Notes to Consolidated Financial Statements13

March 31, 2016

16. Segment Information

(1) Overview of reportable segment

 The Company's business segment consists of companies from which separated financial information can be obtained in order for the Board of Managing Directors and the Board of Directors to decide the distribution of management resources and evaluate performance. Of these, the "Electricity" segment that accounts for the major portion of our whole business is defined as the reportable segment, and other businesses are classified as "Others."
 In the "Electricity" segment, the Company supplies electricity to the three prefectures in the Hokuriku region [Toyama, Ishikawa and Fukui (partly excluded)] and part of Gifu prefecture, and the Nihonkai Power Generating supplies electricity to the Company on a wholesale basis.

(2) Accounting policies of each reportable segment

 The accounting policies of the segments are substantially the same as described in the Summary of Siginificant Accounting Policies. Segment performance is evaluated based on operating income or loss. Intersegment sales are arm's length transaction.

(Application of Accounting Standard and other regulations for Business Combination)

  The Company has applied the "Accounting Standard for Business Combination" Accounting Standards Board of Japan Statement No.21, September 13, 2013, the "Accounting Standard for Consolidated Financial Statements" (Accounting Standards Board of Japan Statement No.22, September 13, 2013), the "Accounting Standard for Business Divestitures" (Accounting Standards Board of Japan Statement No.7, September 13, 2013), effective from the current consolidated fiscal year. Under the adopted accounting standards, the difference associated with the changes in the Company's ownership interest in subsidiaries in the case of subsidiaries under ongoing control of the Company recorded as capital surplus, and acquisition-related costs are recorded as expense for the consolidated fiscal year in which they are incurred. Also, as for business combination occurred on or after the beginning of the current consolidated fiscal year, the accounting method was changed to reflect the adjustments of the provisional allocation of acquisition costs for a business combination shall be reflected in the consolidated financial statements for the fiscal year in which the business combination occurred. In addition, the presentation for "Net income" and other related items was changed and "Minority interests" was changed to "Non-controlling interests." The consolidated financial statements for the previous consolidated fiscal year have been reclassified to reflect these changes in presentation. In consolidated cash flow statement for the current consolidated fiscal year, cash flows proceeds from purchase or sales of shares of subsidiaries resulting in scope of consolidation are mentioned in the category "cash flows from financing activities." In accordance with the transitional treatment set forth in Article 58-2 (4) of the Accounting Standard for Business Combination, Article 44-5 (4) of the Accounting Standard for Consolidated Financial Statements and Article 57-4 (4) of Accounting Standard for Business Divestiture, these standards have been applying prospectively from the beginning of the current consolidated fiscal year. For reference, the effect of these changes is insignificant.

(3) Information about each reportable segment

Millions of yen

ElectricityOthers (Note 1)TotalAdjustment and elimination (Note 2)Consolidated (Note 3)
Sales to customers¥492,382¥52,185¥544,568¥ -¥544,568
Inter-segment sales63649,06449,701(49,701)-
Total operating revenue493,019101,250594,269(49,701)544,568
Segment income29,1258,92138,0477638,124
Segment assets1,430,503108,8701,539,373(29,979)1,509,393
Depreciation and amortization64,3273,90668,233(1,018)67,215
Capital expenditure96,9763,751100,728(1,170)99,558

Millions of yen

ElectricityOthers (Note 1)TotalAdjustment and elimination (Note 2)Consolidated (Note 3)
Sales to customers¥510,814¥21,946¥532,760¥ -¥532,760
Inter-segment sales65132,88733,539(33,539)-
 Total operating revenue511,46654,833566,299(33,539)532,760
Segment income35,4264,49139,9184139,959
Segment assets1,403,388102,9371,506,325(26,874)1,479,451
Depreciation and amortization67,3793,26870,648(273)70,375
Capital expenditure116,4952,730119,225(325)118,900

Thousands of U.S. dollars

ElectricityOthers (Note 1)TotalAdjustment and elimination (Note 2)Consolidated (Note 3)
Sales to customers$4,369,354$463,088$4,832,443$ -$4,832,443
Inter-segment sales5,649435,395441,044(441,044)-
 Total operating revenue4,375,004898,4835,273,487(441,044)4,832,443
Segment income258,45879,169337,627682338,309
Segment assets12,694,145966,10713,660,253(266,039)13,394,214
Depreciation and amortization570,83434,666605,500(9,040)596,459
Capital expenditure860,55733,293893,851(10,383)883,468

(Note 1)
Other segment represents construction and maintenance of the electrical power facilities, information, telecommunications and other.
(Note 2)
Adjustment and eliminations of "Segment income," "Segment assets," "Depreciation and amortization," and "Capital expenditure" are intersegment transaction eliminations.
(Note 3)
Segment income is adjusted to reflect operating income in the consolidated statement of operations.

(Relevant information)

(1) Information by product or service
 As revenue from single product exceed 90% of revenue in the consolidated statements of operations, relating disclosure is omitted.

(2) Information by respective areas
 Because there are no sales to overseas customers and no tangible fixed assets located overseas, relating disclosure is omitted.

(Information related to impairment loss on fixed assets by reportable segment)

 Since this information is not significant, this disclosure is omitted.

(Information related to amortization of goodwill and amortized balance by reportable segment)

 None applicable.

(Information related to gain on negative goodwill by reportable segment)

 None applicable.

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