Annual Report 2005 (60 pages / 1.3MB) - JAL | JAPAN AIRLINES

As lessor
Certain consolidated subsidiaries lease certain equipment under
noncancelable lease agreements referred to as direct financing
leases. Direct financing leases, defined as leases which do not
transfer the ownership of the leased property to the lessee, are principally
accounted for as operating leases.
l. Appropriation of retained earnings and disposition of
accumulated deficit
Under the Commercial Code of Japan, the appropriation of retained
earnings and disposition of accumulated deficit with respect to a
financial period is made by resolution of the stockholders at a general
meeting held subsequent to the close of the financial period
and the accounts for that period do not, therefore, reflect such
appropriations and disposition.
m. Cash equivalents
Cash equivalents are defined as highly liquid, short-term investments
with an original maturity of 3 months or less.
2. U.S. Dollar Amounts
Amounts in U.S. dollars are included solely for the convenience of
the reader. The rate of ¥107 = U.S.$1.00, the approximate
exchange rate prevailing on March 31, 2005, has been used in
translation. The inclusion of such amounts is not intended to imply
that yen have been or could be readily converted, realized or settled
in U.S. dollars at that or any other rate.
3. Cash and Cash Equivalents
The components of cash and cash equivalents at March 31, 2005
and 2004 were as follows:
Thousands of
Millions of yen U.S. dollars
March 31, 2005 2004 2005
Cash and time deposits ¥252,573 ¥143,775 $2,360,495
Time deposits with a maturity
of more than three months (1,513) (448) (14,140)
Short-term investments in
securities with a maturity
of three months or less 0 0 0
Short-term investments included
in other current assets, with a
maturity of three months or less 9,998 — 93,439
Credit balances of current
accounts included in
short-term borrowings (126) — (1,177)
¥260,933 ¥143,327 $2,438,626
4. Fair Value of Securities
No trading securities or held-to-maturity securities were held at
March 31, 2005 and 2004. Securities classified as other securities
are included in “short-term investments in securities” and “investments
and advances — other” in the accompanying consolidated
balance sheets.
The components of unrealized gain or loss on marketable securities
classified as other securities at March 31, 2005 and 2004 are
summarized as follows:
Millions of yen
Acquisition Carrying Unrealized
March 31, 2005 costs value gain (loss)
Unrealized gain:
Stocks ¥14,067 ¥21,052 ¥6,985
Bonds:
Government bonds 17 19 1
Corporate bonds 42 42 0
Other 738 748 9
14,866 21,863 6,997
Unrealized loss:
Stocks 2,529 1,968 (560)
Bonds:
Corporate bonds 10 9 (0)
Other 316 311 (5)
2,855 2,289 (565)
Total ¥17,721 ¥24,153 ¥6,431
March 31, 2005
Thousands of U.S. dollars
Unrealized gain:
Stocks $131,467 $196,747 $65,280
Bonds:
Government bonds 158 177 9
Corporate bonds 392 392 0
Other 6,897 6,990 84
138,934 204,327 65,392
Unrealized loss:
Stocks 23,635 18,392 (5,233)
Bonds:
Corporate bonds 93 84 (0)
Other 2,953 2,906 (46)
26,682 21,392 (5,280)
Total $165,616 $225,728 $60,102
March 31, 2004
Millions of yen
Unrealized gain:
Stocks ¥ 9,937 ¥15,346 ¥5,409
Bonds:
Government bonds 17 19 2
Corporate bonds 99 100 0
Other 861 876 14
10,916 16,343 5,426
Unrealized loss:
Stocks 3,574 3,159 (415)
Bonds:
Corporate bonds 52 51 (0)
Other 77 73 (4)
3,704 3,284 (420)
Total ¥14,621 ¥19,627 ¥5,005
Non-marketable securities classified as other securities at March
31, 2005 and 2004 amounted to ¥26,851 million ($250,943 thousand)
and ¥26,809 million, respectively.
38 Japan Airlines Corporation