Omron 2003 Annual Report Download - page 40

al financial support from other parties, or (2) the equity investors lack one or more of the following essential charac-
teristics of a controlling financial interest: (a) the direct or indirect ability to make decisions about the entity’s activi-
ties through voting or similar rights, (b) the obligation to absorb the expected losses of the entity if they occur, or (c)
the right to receive the expected residual returns of the entity if they occur. FIN No. 46 will have a significant effect
on existing practice because it requires existing variable interest entities to be consolidated if those entities do not
effectively disperse risks among parties involved. FIN No. 46 applies immediately to variable interest entities creat-
ed after January 31, 2003, and to variable interest entities in which an enterprise obtains an interest after that date.
It applies in the first fiscal year or interim period beginning after June 15, 2003, to variable interest entities in which
an enterprise holds a variable interest that it acquired before February 1, 2003. FIN No. 46 may be applied prospec-
tively with a cumulative-effect adjustment as of the date on which it is first applied or by restating previously issued
financial statements for one or more years with a cumulative-effect adjustment as of the beginning of the first year
restated. The adoption of FIN No. 46 did not have a material impact on the operating results or financial position of
the Companies.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which the
Company is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar amounts are
included solely for convenience of the readers and have been made at the rate of ¥120 to $1, the approximate free
rate of exchange at March 31, 2003. Such translations should not be construed as representations that the
Japanese yen amounts could be converted into U.S. dollars at the above or any other rate.
Inventories at March 31 consisted of:
Thousands of
Millions of yen U.S. dollars
2003 2002 2003
Finished products............................................................................................ ¥39,264 ¥39,772 $327,200
Work-in-process.............................................................................................. 16,608 14,923 138,400
Materials and supplies..................................................................................... 19,574 19,922 163,117
Total............................................................................................................. ¥75,446 ¥74,617 $628,717
Available-for-sale securities are recorded at fair value, with unrealized gains and losses excluded from income
and reported in other comprehensive income (loss), net of tax.
Cost, gross unrealized holding gains and losses and fair value of securities, excluding equity securities with no
readily determinable public market value, by major security type at March 31 were as follows:
Millions of yen
2003 2002
Gross Gross Gross Gross
unrealized unrealized Fair unrealized unrealized Fair
Cost (*)gains losses value Cost (*) gains losses value
Available-for-sale securities:
Debt securities ............... ¥44¥—¥—¥44¥33¥— ¥—¥33
Equity securities............. 27,947 4,000 (5,171) 26,776 31,185 8,346 (815) 38,716
Total available-for-sale
securities.......................... ¥27,991 ¥4,000 ¥(5,171) ¥26,820 ¥31,218 ¥8,346 ¥(815) ¥38,749
Thousands of U.S. dollars
2003
Gross Gross
unrealized unrealized Fair
Cost (*) gains losses value
Available-for-sale securities:
Debt securities ........................................................................ $367 $ — $ — $ 367
Equity securities ...................................................................... 232,892 33,333 (43,092) 223,133
Total available-for-sale securities ............................................... $233,259 $33,333 $(43,092) $223,500
*Cost represents amortized cost for debt securities and acquisition cost for equity securities.
2. Translation into
United States
Dollars
3. Inventories
4. Short-Term
Investments and
Investment
Securities
38 • Omron Corporation