Trust Recovery Growth Vitalization - Marubeni

Notes to Consolidated Financial Statements
4 Affiliated Companies
Investments in and amounts due from affiliated companies at March 31, 2005 and 2004 consisted of the following:
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
Investments in equity securities ................................................................................... ¥262,407 ¥256,404 $2,452,402
Long-term receivables .................................................................................................. 62,973 81,047 588,533
¥325,380 ¥337,451 $3,040,935
The financial information of affiliated companies at March 31, 2005 and 2004 and for the years ended March 31, 2005, 2004 and 2003, is
summarized as follows:
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
Total assets ................................................................................................................... ¥3,096,975 ¥3,166,112 $28,943,691
Total liabilities ................................................................................................................ 2,458,736 2,525,835 22,978,841
Net assets ..................................................................................................................... ¥ 638,239 ¥ 640,277 $ 5,964,850
Thousands of
Millions of yen U.S. dollars
2005 2004 2003 2005
Total volume of trading transactions .................................................. ¥5,353,268 ¥5,680,914 ¥5,840,322 $50,030,542
Net income ........................................................................................ 79,998 32,753 58,711 747,645
The Company’s transactions with affiliated companies for the years ended March 31, 2005, 2004 and 2003 were as follows:
Millions of yen
Thousands of
U.S. dollars
2005 2004 2003 2005
Sale transactions ................................................................................ ¥360,027 ¥319,276 ¥458,504 $3,364,738
Purchase transactions ........................................................................ 199,210 158,592 442,467 1,861,776
The unamortized balance of the difference between the cost of
investment in affiliated companies and the Company’s equity in the net
assets at the dates of acquisition amounted to ¥9,326 million ($87,159
thousand) and ¥7,221 million at March 31, 2005 and 2004, respectively.
Certain investments in the common stock of affiliated companies
5 Loans and Allowance for Doubtful Accounts
The changes in the allowance for doubtful accounts are summarized as follows:
are marketable equity securities, which have carrying values of
¥37,325 million ($348,832 thousand) and ¥46,271 million at March
31, 2005 and 2004, respectively, with corresponding aggregate
quoted market values of ¥55,908 million ($522,505 thousand) and
¥48,449 million.
Millions of yen
Thousands of
U.S. dollars
2005 2004 2003 2005
Balance at beginning of year .............................................................. ¥120,814 ¥142,530 ¥149,554 $1,129,103
Provision ........................................................................................ 6,298 805 5,660 58,860
Charge-offs .................................................................................... (18,572) (21,096) (7,999) (173,570)
Other .............................................................................................. 776 (1,425) (4,685) 7,252
Balance at end of year ....................................................................... ¥109,316 ¥120,814 ¥142,530 $1,021,645
At March 31, 2005 and 2004, the recorded investments in loans
that are considered to be impaired under SFAS 114 were ¥185,934
million ($1,737,701 thousand) and ¥264,500 million, respectively, and
the allowance for credit losses related to those loans were ¥99,476
million ($929,682 thousand) and ¥111,804 million, respectively. The
recorded investment in the impaired loans, net of the valuation
allowance, is either secured by collateral or considered collectible
based upon various analyses. The average recorded investments in
impaired loans were ¥230,778 million ($2,156,804 thousand),
¥283,259 million and ¥300,570 million for the years ended March 31,
2005, 2004 and 2003, respectively. The Companies generally do not
accrue for interest on those loans and recognize interest income on a
cash basis, which was ¥2,901 million ($27,112 thousand) for the year
ended March 31, 2005. Such amounts were not significant for the
years ended March 31, 2004 and 2003.