Annual Report 2007 - Komatsu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
8. Investments in and Advances to Affiliated Companies
At March 31, 2007 and 2006, investments in and advances to affiliated companies comprised the following:
Thousands of
Millions of yen
U.S. dollars
2007 2006 2007
Investments in capital stock ¥32,647 ¥16,559 $276,669
Advances 4,041 5,167 34,246
Total ¥36,688 ¥21,726 $310,915
The investments in and advances to affiliated companies
relate to 20% to 50% owned companies whereby Komatsu has
the ability to exercise significant influence over the operational
and financial policies.
Dividends received from affiliated companies were ¥679 million
($5,754 thousand), ¥130 million and ¥80 million during the
years ended March 31, 2007, 2006 and 2005, respectively.
Trade notes and accounts receivable from affiliated companies
at March 31, 2007 and 2006, were ¥30,919 million
($262,025 thousand) and ¥27,763 million, respectively.
Short-term loans receivable from affiliated companies at
March 31, 2007 and 2006, were ¥2,764 million ($23,424 thousand)
and ¥2,064 million, respectively.
Trade notes and accounts payable to affiliated companies at
March 31, 2007 and 2006, were ¥9,164 million ($77,661 thousand)
and ¥7,560 million, respectively.
Net sales for the years ended March 31, 2007, 2006 and
2005, included net sales to affiliated companies in the amounts
of ¥54,731 million ($463,822 thousand), ¥56,916 million and
¥54,446 million, respectively.
Intercompany profits (losses) have been eliminated in the
consolidated financial statements.
As of March 31, 2007, consolidated unappropriated retained
earnings included Komatsu’s share of undistributed earnings of
50% or less owned companies accounted for by the equity
method in the amount of ¥6,068 million ($51,424 thousand).
The carrying value of the investments in affiliated companies
exceeded Komatsu’s equity in the underling net assets of such
associated companies by ¥5,487 million at March 31, 2007. The
excess is attributed primarily to the goodwill at the time of the
initial investments in those companies.
Investments in affiliated companies include certain equity
securities which have been quoted on an established market.
The carrying amount and the quoted market value of the equity
securities at March 31, 2007 were ¥13,288 and ¥20,294
million, respectively.
Summarized financial information for affiliated companies at March 31, 2007 and 2006, and for the years ended March 31,
2007, 2006 and 2005, is as follows:
Thousands of
Millions of yen
U.S. dollars
2007 2006 2007
Current assets ¥163,411 ¥ 98,735 $1,384,839
Net property, plant and equipment—less accumulated depreciation 64,245 35,992 544,449
Investments and other assets 18,785 7,272 159,195
Total assets ¥246,441 ¥141,999 $2,088,483
Current liabilities ¥139,661 ¥ 77,376 $1,183,568
Noncurrent liabilities 33,515 23,625 284,025
Shareholders’ equity 73,265 40,998 620,890
Total liabilities and shareholders’ equity ¥246,441 ¥141,999 $2,088,483
Millions of yen
Thousands of
U.S. dollars
2007 2006 2005 2007
Net sales ¥197,434 ¥176,250 ¥175,593 $1,673,169
Net income ¥ 6,486 ¥ 4,700 ¥ 2,511 $ 54,966
63 Annual Report 2007