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

Proceeds from sales of securities classified as other securities
for the years ended March 31, 2005, 2004 and 2003 amounted to
¥156 million ($1,457 thousand), ¥16,541 million and ¥5,255 million,
respectively. The aggregate gain realized on those sales for the
years ended March 31, 2005, 2004 and 2003 totaled ¥75 million
($700 thousand), ¥500 million and ¥3,853 million, respectively,
and the aggregate loss realized on those sales for the years ended
March 31, 2005, 2004 and 2003 totaled ¥3 million ($28 thousand),
¥19 million and ¥53 million, respectively.
The redemption schedule at March 31, 2005 for bonds with
maturity dates is summarized as follows:
Millions of yen
Due after one
Due in one year through
March 31, 2005 year or less five years
Government bonds ¥— ¥ 7
Corporate bonds 10 10
Total ¥10 ¥17
Thousands of U.S. dollars
March 31, 2005
Government bonds $— $ 65
Corporate bonds 93 93
Total $93 $158
5. Short-Term Borrowings and Long-Term Debt
The weighted-average interest rates for short-term borrowings outstanding
at March 31, 2005 and 2004 were 1.5% and 1.2%,
respectively.
Long-term debt at March 31, 2005 and 2004 consisted of the
following:
Thousands of
Millions of yen U.S. dollars
March 31, 2005 2004 2005
Bonds:
Zero-coupon convertible bond
in euro-yen, due 2011 ¥ 100,000 ¥ — $ 934,579
Japanese yen bonds,
due 2004 to 2018, at
rates ranging from
1.5% to 3.4% 225,000 248,700 2,102,803
Loans with collateral,
due 2004 to 2020, at
rates ranging from
0.24% to 7.91% 544,321 599,398 5,087,112
Loans without collateral,
due 2004 to 2030, at rates
ranging from 0.05% to 6.6% 428,539 455,537 4,005,037
Other 9,047 11,238 84,551
1,306,907 1,314,874 12,214,084
Less current portion
of long-term debt (127,974) (144,718) (1,196,018)
¥1,178,932 ¥1,170,156 $11,018,056
The convertible bond, unless previously redeemed, is convertible
into shares of common stock of the Company at the following current
conversion price:
Conversion price
per share
Zero-coupon convertible bond in ¥ 440.00 April 19, 2004 —
euro-yen, due 2011 March 11, 2011
The aggregate annual maturities of long-term debt subsequent to
March 31, 2005 are summarized as follows:
Thousands of
Millions of yen U.S. dollars
Year ending March 31,
2006 ¥ 127,974 $ 1,196,018
2007 144,758 1,352,878
2008 185,779 1,736,252
2009 152,127 1,421,747
2010 and thereafter 696,266 6,507,158
¥1,306,907 $12,214,084
A summary of assets pledged as collateral at March 31, 2005 and
2004 is as follows:
Thousands of
Millions of yen U.S. dollars
March 31, 2005 2004 2005
Flight equipment, net of
accumulated depreciation ¥556,308 ¥557,141 $5,199,140
Flight equipment spare parts 49,675 53,286 464,252
Investments in affiliates and
other securities 37,070 34,793 346,448
Ground property and
equipment, net of
accumulated depreciation 201,120 237,028 1,879,626
¥844,174 ¥882,249 $7,889,476
In addition, shares of common stock of certain consolidated subsidiaries
were pledged as collateral at March 31, 2005.
6. Accrued Pension and Severance Costs
Conversion
period
An employee whose employment is terminated is entitled, in most
cases, to pension annuity payments or to a lump-sum severance
payment determined by reference to the basic rate of pay, length of
service and the conditions under which the termination occurs.
Certain significant domestic consolidated subsidiaries have
established contributory defined benefit pension plans pursuant to
the Welfare Pension Insurance Law of Japan, i.e., welfare pension
fund plans (WPFPs). Each WPFP consists of the governmental welfare
pension program (the substitutional portion) and an additional
non-contributory pension plan portion. In addition, certain consolidated
subsidiaries have maintained their non-contributory defined
benefit pension plans and lump-sum severance indemnity plans.
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