Annual Report 2001 - JAL | JAPAN AIRLINES

More documents

Recommendations

Info

Consolidated Statements of Cash FlowsJapan Airlines Company, Ltd. and Consolidated SubsidiariesFor the Years Ended March 31, 2001, 2000 and 199920012000Millions of yen1999Thousands ofU.S. dollars(Note 2)2001Operating activitiesIncome before income taxes and minority interestsAdjustments to reconcile income before income taxes and minorityinterests to net cash provided by operating activities:Depreciation and amortizationLoss (gain) on sales of, and loss on revaluation of, short-terminvestments in securities and investments in securitiesLoss (gain) on sales of, and loss on disposal of, fixed assetsNet provision for accrued pension and severance costsInterest and dividend incomeInterest expenseExchange (gain) lossEquity in earnings of affiliates(Increase) decrease in accounts receivableIncrease in flight equipment spare partsDecrease in accounts payableOtherSubtotalInterest and dividends receivedInterest paidIncome taxes paidNet cash provided by operating activities¥ 31,66091,8347,50713,2231,183(4,184)32,335(568)(258)(29,560)(284)(620)23,805166,0734,494(31,680)(9,787)129,098¥ 26,92290,410(16,884)(7,311)2,927(4,732)35,3772,017(1,980)7,252(458)(11,432)922123,0305,341(35,150)(5,894)87,326¥ 36,29097,1304,245(2,752)(275)(4,584)39,160(2,337)(6,539)21,637(2,977)(28,074)(31,162)119,7634,061(36,796)(5,301)81,727$ 255,322740,59660,540106,6379,540(33,741)260,766(4,580)(2,080)(238,387)(2,290)(5,000)191,9751,339,29836,241(255,483)(78,927)1,041,112Investing activitiesDecrease (increase) in time depositsDecrease in short-term investments in securitiesPurchases of fixed assetsProceeds from sales of fixed assetsDecrease in investments in securitiesProceeds from sale of a consolidated subsidiary(Increase) decrease in long-term loansOtherNet cash (used in) provided by investing activities2,1413,967(80,271)8,25611,1118,393(3,356)30,348(19,409)1,2879,160(81,151)20,73435,350—11,05610,5787,012(1,260)4,279(129,739)123,90316,078—48329,28943,03417,26631,991(647,346)66,58089,60467,685(27,064)244,741(156,524)Financing activitiesProceeds from long-term debtRepayment of long-term debt(Decrease) increase in short-term bank loansDividends paid to stockholders of the CompanyOtherNet cash used in financing activitiesEffect of exchange rate changes on cash and cash equivalentsNet (decrease) increase in cash and cash equivalentsCash and cash equivalents at beginning of the yearIncrease in cash and cash equivalents arising from inclusion inconsolidationDecrease in cash and cash equivalents arising from exclusion fromconsolidationCash and cash equivalents at end of the year (Note 3)60,916(210,366)(23,466)(5,306)(790)(179,012)1,583(67,740)189,71581(84)¥121,972111,564(157,093)(35,293)(5,293)(283)(86,397)(568)7,372182,938462(1,058)¥189,715181,101(215,336)111—(49,201)(83,324)2,12443,561127,53911,862(24)¥182,938491,258(1,696,500)(189,241)(42,790)(6,370)(1,443,645)12,766(546,290)1,529,959653(677)$ 983,645The accompanying notes are an integral part of these statements.30
Notes to Consolidated Financial StatementsJapan Airlines Company, Ltd. and Consolidated SubsidiariesMarch 31, 20011. Summary of Significant Accounting Policiesa. Basis of presentationJapan Airlines Company, Ltd. (the “Company”) and itsconsolidated domestic subsidiaries maintain their accountingrecords and prepare their financial statements in accordancewith accounting principles and practices generally acceptedand applied in Japan, and its consolidated foreignsubsidiaries in conformity with those of their countries ofdomicile. The accompanying consolidated financialstatements have been compiled from the consolidatedfinancial statements filed with the Minister of Finance asrequired by the Securities and Exchange Law of Japan andinclude certain additional financial information for theconvenience of readers outside Japan. Accordingly, theaccompanying consolidated financial statements are notintended to present the consolidated financial position,results of operations and cash flows in accordance withaccounting principles and practices generally accepted incountries and jurisdictions other than Japan.As permitted by the Securities and Exchange Law ofJapan, amounts of less than one million yen have beenomitted. As a result, the totals shown in the accompanyingconsolidated financial statements (both in yen and U.S.dollars) do not necessarily agree with the sum of theindividual amounts.Certain amounts previously reported have been reclassifiedto conform to the current year’s classification except for theadoption of new accounting standards.b. Principles of consolidation and accounting forinvestments in unconsolidated subsidiaries and affiliatesThe consolidated financial statements include the accountsof the Company and the significant companies controlleddirectly or indirectly by the Company. Companies overwhich the Company exercises significant influence in termsof their operating and financial policies have been includedin the consolidated financial statements on an equity basis.The balance sheet date of 27 and 29 of the consolidatedsubsidiaries is December 31, 2000 and 1999, respectively.Any significant differences in intercompany accounts andtransactions arising from intervening intercompanytransactions during the periods from January 1 throughMarch 31 have been adjusted, if necessary, for the respectiveyears.The differences between the cost and the fair value of netassets at the dates of acquisition of the consolidatedsubsidiaries and companies accounted for by the equitymethod are amortized by the straight-line method over aperiod of 5 years.All significant intercompany accounts and transactionsand unrealized gain or loss from intercompany accounts andtransactions have been eliminated.c. SecuritiesSecurities except for investments in unconsolidatedsubsidiaries and affiliates are classified as trading securities,held-to-maturity securities or other securities. Tradingsecurities are carried at fair value. Held-to-maturity securitiesare carried at amortized cost. Marketable securities classifiedas other securities are carried at fair value with unrealizedgains and losses reported in a separate component ofstockholders’ equity, net of taxes. Non-marketable securitiesclassified as other securities are carried at cost. Cost ofsecurities sold is determined by the moving average method.d. DerivativesDerivative positions are stated at fair value.Gain or loss on derivatives designated as hedginginstruments is deferred until the loss or gain on theunderlying hedged item is recognized. Foreign receivablesand payables are translated at the applicable forward foreignexchange rates if certain conditions are met. In addition, therelated interest differential paid or received under interestrateswaps is recognized over the terms of the swapagreements in interest expense if certain conditions are met.e. Property and equipmentProperty and equipment is stated at cost except as indicatedin the following paragraph.In Japan, companies are permitted under the current taxlegislation to defer certain capital gains principally arisingfrom insurance claims, by crediting them to the cost ofcertain properties. Such deferred gains at March 31, 2001and 2000 amounted to ¥10,705 million ($86,330 thousand)and ¥10,656 million, respectively.Depreciation of property and equipment is computed asfollows:Flight equipment:Aircraft and spare engines:Boeing 747 –– principally the declining-balance(with the exception method based on their estimatedof Boeing 747-400) useful livesBoeing 747-400 –– the straight-line method based ontheir estimated useful livesBoeing 767 –– principally the straight-linemethod based on their estimateduseful livesBoeing 777 –– the straight-line method based ontheir estimated useful livesBoeing 737 –– the straight-line method based ontheir estimated useful livesDouglas DC-10 –– principally the declining-balancemethod based on their estimateduseful livespage >>> 31
Page 3: Consolidated Financial HighlightsJa
Page 6 and 7: JAL achieved growth from the time i
Page 8 and 9: Supreme SafetySafety Assigned Highe
Page 10 and 11: Management StructureAugmenting Fund
Page 12 and 13: JAL GroupJAL Group Business PlansEx
Page 14 and 15: Review of OperationsPassenger Opera
Page 16 and 17: Review of OperationsPassenger Opera
Page 18 and 19: Review of OperationsCargo Operation
Page 20 and 21: JAL Route NetworkJapan Airlines Com
Page 22 and 23: Corporate CitizenshipBased on the p
Page 24 and 25: Management’s Review and Analysis
Page 26 and 27: Balance sheet analysisTotal assets
Page 28 and 29: Consolidated Balance SheetsJapan Ai
Page 30 and 31: Consolidated Statements of IncomeJa
Page 34 and 35: Douglas MD-11 -- the straight-line
Page 36 and 37: 4. Fair Value of SecuritiesAs descr
Page 38 and 39: A summary of assets pledged as coll
Page 40 and 41: March 31, 2000Flight equipmentGroun
Page 42 and 43: a.Business segment informationBusin
Page 44 and 45: 12. Derivative and Hedging Activiti
Page 46 and 47: Non-Consolidated Balance SheetsJapa
Page 48 and 49: Non-Consolidated Statements of Oper
Page 50 and 51: Notes to Non-Consolidated Financial
Page 52 and 53: Thousands of U.S. dollarsGroundFlig
Page 54 and 55: Consolidated SubsidiariesCompany Na
Page 56 and 57: JAL and Its Subsidiaries and Affili
Page 58 and 59: DirectoryJapan Airlines Company, Lt
Page 60 and 61: Corporate OrganizationJapan Airline
Page 62 and 63: Board of DirectorsJapan Airlines Co
Page 64: Printed in JapanJapan Airlines ANNU

Annual Report 2001 - JAL | JAPAN AIRLINES

Create successful ePaper yourself

Delete template?

Save as template?