CONSOLIDATED STATEMENTS OF CASH FLOWSJapan Airlines Corporation and Consolidated SubsidiariesThousands ofU.S. dollarsMillions of yen (Note 3)Years ended March 31, <strong>2006</strong> 2005 2004 <strong>2006</strong>Operating activities:(Loss) income before income taxes and minority interests ¥ (46,440) ¥ 44,666 ¥ (82,148) $ (396,923)Adjustments to reconcile (loss) income before income taxesand minority interests to net cash provided by operatingactivities:Depreciation and amortization 125,126 124,713 119,388 1,069,452Gain on sales of, and loss on revaluation of,short-term investments in securities and investmentsin securities, net 1,295 (171) (569) 11,068Loss on sales and disposal of property and equipment andloss on impairment of fixed assets, net 17,138 25,702 17,846 146,478Net provision for accrued pension and severance costs (9,919) (13,645) 19,459 (84,777)Interest and dividend income (3,713) (3,170) (2,928) (31,735)Interest expense 21,811 24,875 28,503 186,418Exchange loss (gain), net 106 (200) 547 905Equity in earnings of affiliates (1,899) (1,514) (1,221) (16,230)Increase in notes and accounts receivable (13,120) (16,000) (7,215) (112,136)(Increase) decrease in flight equipment spare parts (7,365) (209) 2,387 (62,948)Increase in accounts payable 22,812 7,545 2,608 194,974Other 23,272 (15,743) 14,366 198,905Subtotal 129,103 176,848 111,023 1,103,444Interest and dividends received 4,151 3,648 3,386 35,478Interest paid (22,507) (25,686) (29,003) (192,367)Income taxes paid (9,762) (9,535) (9,060) (83,435)Net cash provided by operating activities 100,984 145,275 76,345 863,111Investing activities:Purchases of time deposits (969) (1,367) (1,092) (8,282)Proceeds from maturity of time deposits 917 281 996 7,837Purchases of property and equipment (146,972) (121,960) (151,585) (1,256,170)Proceeds from sales of property and equipment 48,403 94,927 57,285 413,700Purchases of investments in securities (7,584) (4,531) (974) (64,820)Proceeds from sales and maturity of investments insecurities 1,576 2,363 3,615 13,470Long-term loans receivable made (1,458) (2,787) (2,853) (12,461)Collection of long-term loans receivable 4,849 6,273 8,875 41,444Other 1,955 5,344 350 16,709Net cash used in investing activities (99,283) (21,456) (85,382) (848,572)30
Thousands ofU.S. dollarsMillions of yen (Note 3)Years ended March 31, <strong>2006</strong> 2005 2004 <strong>2006</strong>Financing activities:(Decrease) increase in short-term borrowings, net ¥ (5,355) ¥ 39 ¥ (9,976) $ (45,769)Proceeds from long-term loans 57,285 48,182 200,882 489,615Repayment of long-term loans (117,563) (130,978) (134,638) (1,004,811)Proceeds from issuance of bonds — 99,975 29,815 —Redemption of bonds (15,000) (23,700) (67,495) (128,205)Dividends paid to stockholders (7,846) (12) (7,813) (67,059)Dividends paid to minority interests (433) (315) (334) (3,700)Other (2,473) 519 (2,825) (21,136)Net cash (used in) provided by financing activities (91,384) (6,290) 7,615 (781,059)Effect of exchange rate changes on cash and cash equivalents 1,061 272 (1,568) 9,068Net (decrease) increase in cash and cash equivalents (88,622) 117,801 (2,991) (757,452)Cash and cash equivalents at beginning of year 260,933 143,327 146,318 2,230,196Decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation (178) (195) — (1,521)Cash and cash equivalents at end of year (Note 4) ¥172,132 ¥260,933 ¥143,327 $1,471,213The accompanying notes are an integral part of these consolidated statements.31