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Notes to Consolidated Financial Statements
Honda Motor Co., Ltd. and Subsidiaries
21. Segment Information
Honda has four reportable segments: the Motorcycle business, the Automobile business, the Financial services business and the Power product and other businesses, which are based on Honda's organizational structure and characteristics of products and services. Operating segments are defined as components of Honda's about which separate financial information is available that is evaluated regularly by management in deciding how to allocate resources and in assessing performance. The accounting policies used for these reportable segments are consistent with the accounting policies used in Honda's consolidated financial statements. (See note 3.)
Principal products and services, and functions of each segment are as follows:
Segment Information
As of and for the year ended March 31, 2006
As of and for the year ended March 31, 2007
As of and for the year ended March 31, 2008
As of and for the year ended March 31, 2008
| Explanatory notes: |
| 1. |
Segment income is measured in a consistent manner with consolidated operating income, which is net income before other income, other expenses, income tax (benefit) expense, minority interest in income, and equity in income of affiliates. Expenses not directly associated with specific segments are allocated based on the most reasonable measures applicable. |
| 2. |
Assets of each segment are defined as total assets, including derivative financial instruments, investments in affiliates, and deferred tax assets. Segment assets are based on those directly associated with each segment and those not directly associated with specific segments are allocated based on the most reasonable measures applicable except for the corporate assets described below. |
| 3. |
Intersegment sales and revenues are generally made at values that approximate arm's-length prices. |
| 4. |
Unallocated corporate assets, included in reconciling items, amounted to ¥354,903 million as of March 31, 2006, ¥377,873 million as of March 31, 2007, and ¥385,442 million ($3,847 million) as of March 31, 2008 respectively, which consist primarily of cash and cash equivalents and marketable securities held by the Company. Reconciling items also include elimination of intersegment transactions. |
| 5. |
Depreciation and amortization of the Financial Services Business include ¥9,741 million for the year ended March 31, 2007 and ¥101,032 million ($1,008 million) for the year ended March 31, 2008 respectively, of depreciation of property on operating leases. |
| 6. |
Capital expenditures of the Financial Services Business includes ¥366,795 million for the year ended March 31, 2007 and ¥839,261 million ($8,377 million) for the year ended March 31, 2008 respectively, of purchase of operating lease assets. |
External Sales and Other Operating Revenue by Product or Service Groups
Geographical Information
As of and for the year ended March 31, 2006
As of and for the year ended March 31, 2007
As of and for the year ended March 31, 2008
As of and for the year ended March 31, 2008
The above information is based on the location of the Company and its subsidiaries.
Supplemental Geographical Information
In addition to the disclosure required by U.S. GAAP, Honda provides the following supplemental information as required by Financial Instruments and Exchange Law:
(1) Overseas sales and revenues based on the location of the customer
Explanatory notes:
Major countries or regions in each geographic area:
| North America |
 |
United States, Canada, Mexico |
| Europe |
|
United Kingdom, Germany, France, Italy, Belgium |
| Asia |
|
Thailand, Indonesia, China, India |
| Other Regions |
|
Brazil, Australia |
(2) Supplemental geographical information based on the location of the Company and its subsidiaries
As of and for the year ended March 31, 2006
As of and for the year ended March 31, 2007
As of and for the year ended March 31, 2008
As of and for the year ended March 31, 2008
| Explanatory notes: |
| 1. |
Major countries or regions in each geographic area:
| North America |
|
United States, Canada, Mexico |
| Europe |
|
United Kingdom, Germany, France, Italy, Belgium |
| Asia |
|
Thailand, Indonesia, China, India |
| Other Regions |
|
Brazil, Australia |
|
| 2. |
Operating income of each geographical region is measured in a consistent manner with consolidated operating income, which is net income before other income, other expenses, income tax (benefit) expense, minority interest in income, and equity in income of affiliates. |
| 3. |
Assets of each geographical region are defined as total assets, including derivative financial instruments, investments in affiliates, and deferred tax assets. |
| 4. |
Sales and revenues between geographic areas are generally made at values that approximate arm's-length prices. |
| 5. |
Unallocated corporate assets, included in reconciling items, amounted to ¥354,903 million as of March 31, 2006, ¥377,873 million as of March 31, 2007, and ¥385,442 million ($3,847 million) as of March 31, 2008 respectively, which consist primarily of cash and cash equivalents and marketable securities held by the Company. Reconciling items also include elimination of transactions between geographic areas. |
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Annual Report 2008