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

11. Commitments and Contingent Liabilities
Commitments outstanding at March 31, 2005 for the purchases of
significant property and equipment amounted to ¥326,852 million
($3,054,691 thousand).
Consolidated subsidiaries lease aircraft, office space, hotel facilities,
warehouses and office equipment. These leases are customarily
renewed upon expiration.
At March 31, 2005, contingent liabilities for guarantees, principally
for unconsolidated subsidiaries, affiliates and employees,
amounted to ¥20,096 million ($187,813 thousand), and contingent
liabilities for commitments such as guarantees, keep-well agreements
and others, principally for unconsolidated subsidiaries, affiliates
and employees, amounted to ¥921 million ($8,607 thousand).
A consolidated subsidiary provides a line-of-credit facility as a
part of its financing activities. The amounts provided, used and
unused, at March 31, 2005 were ¥1,570 million ($14,672 thousand),
¥18 million ($168 thousand) and ¥1,551 million ($14,495
thousand), respectively.
12. Amounts Per Share
Basic net income (loss) per share has been computed based on the
net income (loss) available for or allocable for distribution to the
stockholders of common stock and the weighted-average number of
shares of common stock outstanding during each year, and diluted
net income per share is computed based on the net income available
for distribution to the stockholders and the weighted-average
number of shares of common stock outstanding during each year
after giving effect to the potentially dilutive securities to issued upon
the conversion of a convertible bonds. However, diluted net income
per share has not been presented for the years ended March 31,
2004 and 2003 since neither the Company nor any of the consolidated
subsidiaries had any potentially dilutive securities at March
31, 2004 and 2003.
Yen U.S. dollars
Years ended March 31, 2005 2004 2003 2005
Net income (loss) per share
of common stock:
Basic ¥15.24 ¥(45.19) ¥5.92 $0.142
Diluted ¥13.66 ¥ — ¥ — $0.127
The following table sets forth the computation of basic net income
(loss) per share of common stock and diluted net income per share
of common stock for the years ended March 31, 2005, 2004 and
2003:
Millions of yen
Years ended March 31, 2005 2004 2003
Net income (loss) available for
(allocable to) shareholders of
common stock:
Thousands of
U.S. dollars
2005
Net income (loss) ¥30,096 ¥(88,619) ¥11,645 $281,271
Less: Appropriation for
payment of bonuses to
directors and statutory
auditors (43) (42) (37) (401)
¥30,053 ¥(88,661) ¥11,608 $280,869
Thousand of shares
Years ended March 31, 2005 2004 2003
Weighted-average number of
shares of common stock
outstanding 1,972,336 1,961,792 1,962,051
Effect of dilutive securities:
Convertible bond 227,272 — —
Net assets per share have been computed based on the net assets
available for distribution to stockholders of common stock and the
number of shares of common stock outstanding at each balance
sheet date.
Yen U.S. dollars
March 31, 2005 2004 2005
Net assets per share ¥98.34 ¥81.16 $0.919
13. Segment Information
a. Business segment information
The Company and its consolidated subsidiaries conduct worldwide
operations in air transportation, travel services, hotel and resort
operations, card and lease operations, trading and other airlinerelated
business. This segmentation has been determined for internal
management purposes.
Until the year ended March 31, 2003, the business segment
information was presented in four major categories: the air transportation
segment, the travel segment, the hotel and resort operations
segment and a segment entitled ‘other’ which included card
and lease operations, trading and other airline-related business.
Effective the year ended March 31, 2004, the Company revised
its method of segmentation. The airline-related business, which had
been included in “Other” until the year ended March 31, 2003, was
presented as a new segment since, under the Company’s current
business strategies, it is a separate function of the air transportation
business. In addition, the hotel and resort operations business,
which had been presented as a separate segment until the year
ended March 31, 2003, were included in “Other” for the year
ended March 31, 2004 since its size decreased following a change
in basic business strategy under which it now operates its businesses
under a system of administrative contracts.
Based on the new segmentation, the Company restated the previously
reported business segments for the year ended March 31, 2003.
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