Secom : Financial Report - nine-month period ended December 31, 2015

65466e60-5c88-4971-9f7e-81200c951cf0.pdf QUARTERLY FINANCIAL REPORT FOR THE NINE-MONTH PERIOD ENDED DECEMBER 31, 2015

(Based on JAPANESE GAAP)（Consolidated）

February 10, 2016

Company name: SECOM CO., LTD. (URL: http://www.secom.co.jp/) Code number: 9735 Tokyo Stock Exchange ---------- First Section Representative: Hiroshi Ito, President and Representative Director

For inquiries: Junzo Nakayama, Executive Director Phone [phone] Scheduled date of filing Quarterly Securities Report: February 12, 2016

Scheduled date of dividend payout: －

Preparation of quarterly supplementary materials: None Holding of quarterly results information meeting: None

1. Consolidated financial results for the nine-month period ended December 31, 2015 (April 1, 2015- December 31, 2015)

1. Consolidated operating results (In millions of yen, figures rounded down)

   
   

   Nine-month Period Ended December 31
   2014	2015
   Revenue	599,655 0.8%	622,722 3.8％
   Operating profit	88,813 4.7%	91,854 3.4%
   Ordinary profit	101,212 10.0%	97,867 (3.3%)
   Net income attributable to owners of the parent	59,691 13.2%	61,822 3.6%
   Basic net income per share (in yen)	273.48	283.25
   Diluted net income per share (in yen)	－	－

   Note 1: Comprehensive income:

   Nine-month period ended December 31, 2015: JPY 61,820 million [(23.4%)]

   Nine-month period ended December 31, 2014: JPY 80,661 million [12.1%] Note 2: There is no diluted net income per share as there are no shares with dilutive effect.

   Note 3: Percentage figures represent changes from the results of the corresponding period of the previous year.

   
   

2. Consolidated financial position (In millions of yen, figures rounded down)

   
   

   March 31, 2015	December 31, 2015
   Total assets	1,410,715	1,590,444
   Net assets	907,341	939,280
   Equity ratio	56.7%	52.1%
   Net assets per share (in yen)	3,667.33	3,799.59

   Note 1: Equity as of:

   December 31, 2015 : JPY 829,306 million

   March 31, 2015 : JPY 800,445 million

   Note 2: Equity is calculated by deducting noncontrolling interests in subsidiaries from net assets. Net assets per share is calculated by dividing equity by the number of common shares outstanding, excluding treasury stock, as of each period-end.

   
   
3. Dividends

   
   

   Years ended March 31
   2015	2016	2016 (projected)
   1st quarter dividends per share (in yen)	-	-
   2nd quarter dividends per share (in yen)	60.00	65.00
   3rd quarter dividends per share (in yen)	-	－
   Year-end dividends per share (in yen)	65.00	70.00
   Annual dividends per share (in yen)	125.00	135.00

   Note: Revision of projected dividends from that most recently disclosed: None

   
   

4. Projections for the consolidated financial results for the fiscal year ending March 31, 2016 (April 1, 2015 - March 31, 2016)

(In millions of yen)




Year ending March 31, 2016
Projected revenue	866,000 3.0%
Projected operating profit	126,100 2.0%
Projected ordinary profit	131,100 （4.1％
Projected net income attributable to owners of the parent	80,200 6.4%
Projected basic net income per share (in yen)	367.45

）




Note 1: Revision of projections for the consolidated financial results from those most recently disclosed: None

Note 2: Projected basic net income per share for the fiscal year ending March 31, 2016 is calculated based on the number of average common shares outstanding over the nine-month period ended December 31, 2015, assuming that it remains the same until March 31, 2016.

Note 3: Percentage figures represent changes from the results of the corresponding period of the previous year.




※ Note

1. Significant changes in subsidiaries during the nine-month period ended December 31, 2015 (changes in specified subsidiaries accompanied with changes in scope of consolidation): None

2. Adoption of unique accounting treatment for preparation of consolidated quarterly financial statements: None

3. Changes in accounting policies, accounting estimates and/or restatements:

   ① Changes in accounting policies associated with amendment of accounting standards: None

   ② Other changes in accounting policies: None

   ③ Changes in accounting estimates: None

   ④ Restatements: None

4. Number of common shares outstanding :

① Number of common shares outstanding, including treasury stock, as of: December 31, 2015 : 233,288,717 shares

March 31, 2015 : 233,288,717 shares

② Number of shares of treasury stock, as of: December 31, 2015 : 15,026,648 shares

March 31, 2015 : 15,024,812 shares

③ Number of average common shares outstanding over:

The nine-month period ended December 31, 2015: 218,262,999 shares

The nine-month period ended December 31, 2014: 218,265,747 shares




Note on status of quarterly review procedures

This report is excluded from the scope of quarterly review procedures pursuant to the Financial Instruments and Exchange Act. Review procedures for quarterly financial statements have not been completed at the time of disclosure of this report.




Note on appropriate use of projections for the financial results; other special items

The forward-looking statements including the future performance described in this document are provided based on both all information available at this moment and certain assumptions considered reasonable. Actual performance may differ materially from the forward-looking statements due to various factors hereafter occurred. For matters regarding assumptions on financial projections and notes for the use of financial projections, please refer to "1. Qualitative Information Regarding the Nine-month Period Ended December 31, 2015 (3) Qualitative Information Regarding Consolidated Financial Projections"on page 4 in the appendices.

Contents for the Appendices




1. Qualitative Information Regarding the Nine-month Period Ended December 31, 2015.................................- 2 -

(1) Qualitative Information Regarding Consolidated Financial Results .........................................................- 2 -

1. Qualitative Information Regarding Consolidated Financial Position........................................................- 3 -

2. Qualitative Information Regarding Consolidated Financial Projections ...................................................- 4 - 2. Items Regarding the Summary Information (Other) .......................................................................................- 4 -

1. Significant Changes in Subsidiaries in the Nine-month Period Ended December 31, 2015......................- 4 -

2. Adoption of Unique Accounting Treatment for Preparation of Consolidated Quarterly Financial Statements

   ..................................................................................................................................................................- 4 -

3. Changes in Accounting Policies, Accounting Estimates and/or Restatements..........................................- 4 - (4) Additional Information..............................................................................................................................- 4 - 3. Consolidated Quarterly Financial Statements .................................................................................................- 5 - (1) Consolidated Balance Sheets.....................................................................................................................- 5 -

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ................- 7 - (3) Notes Regarding the Consolidated Quarterly Financial Statement ...........................................................- 9 - (4) Segment Information, etc. .........................................................................................................................- 9 - (5) Significant Subsequent Events ................................................................................................................- 11 -

1. Qualitative Information Regarding the Nine-month Period Ended December 31, 2015
2. Qualitative Information Regarding Consolidated Financial Results

   During the nine-month period ended December 31, 2015, despite the upward trend in corporate earnings and employment environment, the outlook for Japanese economy has been remained uncertain mainly due to slow recovery in consumer spending and concerns over downturn in emerging economies including China while ongoing normalization of monetary policy in the US.

   
   

   In this environment, we have been continuously trying to satisfy the increasingly diversified and sophisticated needs of our customers for their safety and peace of mind as well as comfort and convenient, with the aim of realizing our vision for the future, "Social System Industry,"a society where everyone can live safe and secure anytime and anywhere. To this end, we have made efforts to develop and provide high-quality products and services suited to customer needs in our security services segment, as well as in our fire protection services, medical services, insurance services, geographic information services, information and communication related services, and real estate and other services segments. We also pressed forward with efforts to apply the ALL SECOM concept, which emphasizes cooperation among our various independent businesses to strengthen the bond of the Group as a whole with a view to hastening our advance to growth. Furthermore, preparing for future Japanese society, we promote the effort to develop innovative services through ALL SECOM concept, in terms of key themes: super-aged society and disaster preparedness/business continuity planning (BCP)/environmental preservation, based on a foundation of our security services.

   
   

   Consolidated revenue for the nine-month period ended December 31, 2015 increased by 3.8% to 622.7 billion yen. Consolidated operating profit increased by 3.4% to 91.8 billion yen. Consolidated ordinary profit decreased by 3.3% or 3.3 billion yen to 97.8 billion yen, mainly due to the decrease in net gains on private equity investment in the U.S. from the previous period (15/12: 0.2 billion yen, 14/12: 8.5 billion yen). Consolidated net income attributable to owners of the parent increased by 3.6% or 2.1 billion yen to 61.8 billion yen. For the nine-month period ended December 31, 2015, consolidated revenue, consolidated operating profit and consolidated net income attributable to owners of the parent have reached a record-high, respectively.

   
   

   Segment information is as follows.

   
   

   In the security services segment, revenue increased by 2.7% to 355.9 billion yen and operating profit went up by 3.0% to 84.0 billion yen, mainly due to brisk sales of on-line security systems for commercial and residential use and security merchandise including security camera systems.

   
   

   In the fire protection services segment, revenue increased by 12.8% to 86.3 billion yen, mainly due to the active marketing efforts and the contribution of large-scale projects. Operating profit was up by 26.0% to 6.9 billion yen. Revenue tends to increase toward the end of the fiscal year, due to the fact that this segment is greatly affected by the construction industry.

   
   

   In the medical services segment, revenue increased by 4.9% to 47.4 billion yen, mainly due to firm increase in sales of pharmaceutical products. Operating profit increased by 8.7% to 4.1 billion yen.

   In the insurance services segment, revenue increased by 7.3% to 29.4 billion yen, mainly due to the firm increase in sales of fire insurance policy and MEDCOM, an unrestricted cancer treatment policy, provided by Secom General Insurance Co., Ltd. Operating profit decreased by 17.7% to 1.9 billion yen, mainly owing to the increase in losses incurred from damage of typhoons.

   
   

   In the geographic information services segment, revenue increased by 2.7% to 36.5 billion yen, chiefly owing to the increase in revenue in international division. Operating loss amounted to 250 million yen, decreased from an operating loss of 270 million yen in the previous corresponding period, mainly due to the increase in cost ratio in public division. Revenue tends to concentrate toward the end of the fiscal year, due to the fact that deliveries of public-sector contracts, which is the primary market for this segment, are mainly made at the end of March.

   
   

   In the information and communication related services segment, revenue decreased by 0.4% to 35.4 billion yen. Operating profit increased by 6.2% to 3.8 billion yen, chiefly owing to the decrease in selling, general and administrative expenses.

   
   

   In the real estate and other services segment, revenue decreased by 3.1% to 31.4 billion yen. Operating profit went down by 10.2% to 2.8 billion yen, mainly due to the decrease in revenue in the real estate development and sales business and increase in cost ratio.

   
   

3. Qualitative Information Regarding Consolidated Financial Position (i) Consolidated Balance Sheets

   Total assets as of December 31, 2015 amounted to 1,590.4 billion yen, 12.7% or 179.7 billion yen higher than that at the end of the previous fiscal year, chiefly owing to Asahi Security Co., Ltd., newly consolidated subsidiary. Total current assets, at 695.4 billion yen, were up 15.9% or 95.2 billion yen. This was largely attributable to increases in cash deposits for armored car services by 223.2% or 112.4 billion yen to 162.8 billion yen, call loans by 58.1% or 9.0 billion yen to 24.5 billion yen and work in process for real estate inventories by 31.4% or 6.6 billion yen to 27.6 billion yen, despite the decreases in cash on hand and in banks by 12.8% or 29.7 billion yen to 202.4 billion yen and notes and accounts receivable, trade by 11.0% or

   12.4 billion yen to 101.5 billion yen. Total fixed assets, at 895.0 billion yen, were up 10.4% or 84.4 billion yen. This was mainly attributable to increases in tangible assets by 4.9% or 17.6 billion yen to 379.8 billion yen and intangible assets by 136.3% or 67.3 billion yen to 116.7 billion yen.

   
   

   Total liabilities amounted to 651.1 billion yen, 29.4% or 147.7 billion yen higher than that at the end of the previous fiscal year. Total current liabilities amounted to 378.3 billion yen, up 52.7% or 130.6 billion yen, owing to the increases in cash deposits received for armored car services by 650.7% or 110.2 billion yen to

   127.2 billion yen and bank loans by 97.8% or 43.9 billion yen to 88.9 billion yen, despite the decreases in accrued income taxes by 58.7% or 12.3 billion yen to 8.7 billion yen and accrued bonus by 61.2% or 8.9 billion yen to 5.6 billion yen. Long-term liabilities increased by 6.7% or 17.1 billion yen to 272.7 billion yen, compared to that at the end of the previous fiscal year. This was mainly attributable to the increases in lease obligations by 227.2% or 8.4 billion yen to 12.1 billion yen and investment deposits by policyholders, unearned premiums and other insurance liabilities by 4.6% or 6.8 billion yen to 157.0 billion yen.

   
   

   Total net assets amounted to 939.2 billion yen, 3.5% or 31.9 billion yen higher than that at the end of the

   previous fiscal year, mainly due to the increase in retained earnings by 4.8% or 33.4 billion yen.

   
   

4. Qualitative Information Regarding Consolidated Financial Projections

   The financial results for the nine-month period ended December 31, 2015 were generally within our projections. Accordingly, projections for the consolidated financial results for the fiscal year ending March 31, 2016 have not been changed from those disclosed on May 11, 2015.

   
   

   As disclosed in "Notification concerning the Acquisition of Asahi Security Co., Ltd. Shares"on October 30, 2015, Asahi Security Co., Ltd. became our consolidated subsidiary on December 1, 2015. Detailed effects of this acquisition on projections for the consolidated financial results are under scrutiny. Once the revision of the projections for the consolidated financial results for the fiscal year ending March, 2016 becomes necessary, it will be disclosed in a timely manner.

   
   

   (Notes for financial projections)

   Projections for the consolidated financial results for the fiscal year ending March 31, 2016, are based on management's assumptions in light of information currently available. As actual performance may differ materially from the forward-looking statements due to various factors hereafter occurred, you should refrain from making an investment decision by solely relying on these projections. Such factors include, but are not limited to, changes in economic conditions affecting our group's operations, market trends, legislative changes, occurrences of natural disasters, recalls of products sold and the results of contingency.

   
   

5. Items Regarding the Summary Information (Other)
6. Significant Changes in Subsidiaries in the Nine-month Period Ended December 31, 2015

   Not applicable.

   
   

7. Adoption of Unique Accounting Treatment for Preparation of Consolidated Quarterly Financial Statements

   Not applicable.

   
   

8. Changes in Accounting Policies, Accounting Estimates and/or Restatements

   Not applicable.

   
   

9. Additional Information

The Company adopted the provision in the section 39 of the "Accounting Standard for Consolidated Financial Statements"(ASBJ Statement No. 22, September 13, 2013), and changed the presentation of net income, etc. as well as the presentation of minority interests to noncontrolling interests. To reflect these changes in the presentations, the quarterly consolidated financial statements for the nine-month period ended December 31 of the previous fiscal year and the consolidated financial statements for the previous fiscal year have been reclassified.

10. Consolidated Quarterly Financial Statements
(1) Consolidated Balance Sheets







(In millions of yen)




M arch 31, 2015	December 31, 2015
ASSETS: Current assets: Cash on hand and in banks Cash deposits for armored car services Call loans Notes and accounts receivable, trade Due from subscribers Short-term investments Lease receivables and investment in leased assets M erchandise and products Real estate inventories Work in process Costs on uncompleted construction contracts Work in process for real estate inventories Raw materials and supplies Deferred income taxes Short-term loans receivable Other Allowance for doubtful accounts Fixed assets: Tangible assets: Buildings and improvements Security equipment and control stations Land Other Intangible assets Investments and others: Investment securities Long-term loans receivable Net defined benefit asset Deferred income taxes Other Allowance for doubtful accounts Deferred assets	600,146 232,221 50,395 15,500 114,071 26,316 28,517 39,242 14,163 3,063 4,031 9,460 21,058 7,913 12,808 2,268 21,111 (1,997) 810,541 362,161 148,375 70,478 119,604 23,702 49,411 398,969 284,322 42,904 35,010 4,874 49,382 (17,525) 26	695,425 202,476 162,872 24,500 101,573 32,313 31,384 38,069 14,046 890 7,315 13,038 27,665 8,718 8,893 3,530 19,904 (1,768) 895,001 379,808 150,979 73,424 120,006 35,397 116,737 398,455 276,756 38,269 36,779 5,983 55,906 (15,242) 17
Total assets	1,410,715	1,590,444

1. Consolidated Balance Sheets (Continued)

   
   

   
   

   (In millions of yen)

   
   

   M arch 31, 2015	December 31, 2015
   LIABILITIES: Current liabilities: Notes and accounts payable, trade Bank loans Current portion of straight bonds Lease obligations Payables - other Accrued income taxes Accrued consumption taxes Accrued expenses Cash deposits received for armored car services Deferred revenue Accrued bonuses Provision for loss on construction contracts Other Long-term liabilities: Straight bonds Long-term loans Lease obligations Guarantee deposits received Deferred income taxes Accrued retirement benefits for directors and audit and supervisory board members Net defined benefit liability Investment deposits by policyholders, unearned premiums and other insurance liabilities Other	247,755	378,365
   	43,160	38,760
   	44,965	88,948
   	1,414	1,390
   	503	4,740
   	33,849	35,939
   	21,063	8,702
   	12,878	6,857
   	4,653	5,150
   	16,945	127,204
   	31,348	33,027
   	14,652	5,686
   	1,612	1,351
   	20,707	20,607
   	255,618	272,799
   	8,413	7,590
   	20,602	19,883
   	3,712	12,144
   	36,000	35,382
   	13,554	15,470
   	1,415	1,322
   	18,504	20,107
   	150,119	157,005
   	3,295	3,891
   Total liabilities	503,374	651,164
   NET ASSETS:	767,630	801,141
   Shareholders' equity:
   Common stock	66,377	66,377
   Capital surplus	80,265	80,343
   Retained earnings	694,688	728,136
   Common stock in treasury, at cost	(73,701)	(73,716)
   Accumulated other comprehensive income:	32,815	28,164
   Unrealized gains on securities	26,981	26,349
   Deferred losses on hedges	(34)	(34)
   Foreign currency translation adjustments	1,477	(2,989)
   Remeasurements of defined benefit plans, net of taxes	4,390	4,838
   Noncontrolling Interests	106,895	109,973
   Total net assets	907,341	939,280
   Total liabilities and net assets	1,410,715	1,590,444

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

   
   

   Consolidated Statements of Income

   
   

   (In millions of yen)

   
   

   Nine-month period ended December 31, 2014	Nine-month period ended December 31, 2015
   Revenue	599,655	622,722
   Costs of revenue	393,824	410,966
   Gross profit	205,831	211,755
   Selling, general and administrative expenses	117,017	119,900
   Operating profit	88,813	91,854
   Non-operating income	15,093	9,066
   Non-operating expenses	2,694	3,053
   Ordinary profit	101,212	97,867
   Extraordinary profit	1,890	978
   Extraordinary losses	2,385	976
   Income before income taxes	100,717	97,869
   Income taxes - current	28,036	25,387
   Income taxes - deferred	6,706	5,695
   Total income taxes	34,743	31,083
   Net income	65,974	66,786
   Net income attributable to noncontrolling interests	6,282	4,964
   Net income attributable to owners of the parent	59,691	61,822

   Consolidated Statements of Comprehensive Income

   
   

   (In millions of yen)

   
   

   Nine-month period ended December 31, 2014	Nine-month period ended December 31, 2015
   Net income Other comprehensive income (losses): Unrealized gains (losses) on securities Foreign currency translation adjustments Remeasurements of defined benefit plans, net of taxes Share of other comprehensive income (losses) of affiliated companies accounted for under the equity method Comprehensive income Comprehensive income attributable to: Comprehensive income attributable to owners of the parent company Comprehensive income attributable to noncontrolling interests	65,974 14,687 9,917 2,569 672 1,528	66,786 (4,966) (347) (1,576) 242 (3,284)
   	80,661	61,820
   	73,737 6,923	57,171 4,648

3. Notes Regarding the Consolidated Quarterly Financial Statement [Notes Regarding the Assumption of Going Concern]

   Not applicable.

   
   

   [Notes Regarding Significant Changes in Shareholders' Equity]

   Not applicable.

   
   

4. Segment Information, etc. [Segment Information]

   
   
5. Nine-month Period Ended December 31, 2014
6. Information About Amounts of Revenue and Profit or Loss by Reportable Segments

   
   

   (In millions of yen)

   
   

   Reportable segments
   Security services	Fire protection services	M edical services	Insurance services	Geographic information services
   Revenue:	346,721	76,605	45,200	27,460	35,603
   Customers
   Intersegment	9,923	3,634	109	2,478	108
   Subtotal	356,645	80,240	45,310	29,938	35,711
   Segment profit (loss)	81,549	5,481	3,826	2,371	(279)

   
   

   Reportable segments		Real estate and other services (Note 1)	Total	Adjustment (Note 2)	Amount on consolidated statements of income (Note 3)
   Information and communication related services	Subtotal
   Revenue:	35,615	567,206	32,449	599,655	-	599,655
   Customers
   Intersegment	3,667	19,922	1,682	21,605	(21,605)	-
   Subtotal	39,282	587,129	34,132	621,261	(21,605)	599,655
   Segment profit (loss)	3,622	96,571	3,182	99,753	(10,939)	88,813

   
   

   Note 1: Real estate and other services is an operating segment not designated as a reportable segment, and comprises real estate development and sales, real estate leasing, construction and installation services, hotel businesses, etc.

   Note 2: Adjustment of segment profit/loss includes intersegment eliminations of 454 million yen and corporate expenses not allocated to each reportable segment of 10,485 million yen. Major components of corporate expenses are expenses regarding planning, personnel and administrative departments of the Company's headquarter, etc.

   Note 3: Segment profit/loss is adjusted to operating profit in the consolidated statements of income.

7. Information About Impairment Loss on Fixed Assets and Goodwill by Reportable Segments

   (Significant Changes in Goodwill)

   Goodwill decreased due to the application of the Accounting Standard for Business Combinations (ASBJ Statement No.21, September 13, 2013), Accounting Standard for Consolidated Financial Statements (ASBJ Statement No.22, September 13, 2013), and Accounting Standard for Business Divestitures (ASBJ Statement No.7, September 13, 2013) from the three-month period ended June 30, 2014.

   The amount of goodwill decreased by 3,675 million yen in the security services segment, 10 million yen in the fire protection services segment, 219 million yen in the insurance services segment, 1 million yen in the geographic information services segment, and 192 million yen in the information and communication related services segment for the nine-month period ended December 31, 2014.

   
   

8. Nine-month Period Ended December 31, 2015
9. Information About Amounts of Revenue and Profit or Loss by Reportable Segments

   
   

   (In millions of yen)

   
   

   Reportable segments
   Security services	Fire protection services	M edical services	Insurance services	Geographic information services
   Revenue:	355,999	86,389	47,401	29,464	36,556
   Customers
   Intersegment	9,121	3,034	133	2,239	71
   Subtotal	365,121	89,423	47,535	31,703	36,627
   Segment profit (loss)	84,018	6,904	4,160	1,952	(256)

   
   

   Reportable segments		Real estate and other services (Note 1)	Total	Adjustment (Note 2)	Amount on consolidated statements of income (Note 3)
   Information and communication related services	Subtotal
   Revenue:	35,455	591,266	31,455	622,722	-	622,722
   Customers
   Intersegment	5,450	20,050	1,481	21,531	(21,531)	-
   Subtotal	40,906	611,317	32,936	644,254	(21,531)	622,722
   Segment profit (loss)	3,847	100,626	2,856	103,483	(11,628)	91,854

   
   

   Note 1: Real estate and other services is an operating segment not designated as a reportable segment, and comprises real estate development and sales, real estate leasing, construction and installation services, etc.

   Note 2: Adjustment of segment profit/loss includes intersegment eliminations of (139) million yen and corporate expenses not allocated to each reportable segment of 11,767 million yen. Major components of corporate expenses are expenses regarding planning, personnel and administrative departments of the Company's headquarter, etc.

   Note 3: Segment profit/loss is adjusted to operating profit in the consolidated statements of income.

10. Information About Assets by Reportable Segments

    There were significant changes in the amount of assets by reportable segment in the nine-month period ended December 31, 2015, compared to the amount at the end of the previous fiscal year. The summary information is as follows:

    In the security services segment, the amount of segment assets increased by 227,399 million yen, mainly arising from the acquisition of Asahi Security Co., Ltd. in the nine-month period ended December 31, 2015.

    
    

11. Information About Impairment Loss on Fixed Assets and Goodwill by Reportable Segments

    (Significant Changes in Goodwill)

    In the security services segment, goodwill increased due to the acquisition of Asahi Security Co., Ltd. in the nine-month period ended December 31, 2015. The amount of goodwill increased by 66,463 million yen in the nine-month period ended December 31, 2015, which was a provisional amount as the purchase price allocation has not been completed.

    
    

12. Significant Subsequent Events

Not applicable.