Originally posted by reh321 I don't understand your response. Someone who didn't find a K-1 to be usable wouldn't purchase one in the first place.
It's easy to understand. When a customer purchase a product from Ricoh (e.g Pentax product), Ricoh have no obligation beyond the scope of the product being purchased. Therefore, customer can spend all their money on current Pentax product , Ricoh do what they want, if they want to record 30% of EBIT to compensate for losses in other product lines of the Ricoh group they can do it. As an example, I used to work for a division inside a large group, that division regularly recorded the highest cash flow of the group and highest profits, but since the activity of the division wasn't considered as strategic for the furture, despite its excellent results the division never got its request for new projects signed by the group administration above the division. The group HQ used the cash flows from that profitable division to fund strategic development of other divisions of the group, sometimes divisions reporting losses.