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68 Hitachi, Ltd. Annual Report 2005
20. OTHER INCOME AND OTHER DEDUCTIONS
The following items are included in other income or other deductions for the years ended March 31, 2005, 2004 and 2003.
Thousands of
Millions of yen U.S. dollars
2005 2004 2003 2005
Net gain (loss) on securities . . . . . . . . . . . . . . . . . . . . . ¥46,463 ¥130,175 ¥ (660) $434,234
Equity in earnings (losses) of affiliated companies . . . . (162) 10,120 (15,803) (1,514)
Net gain (loss) on sale and disposal of rental assets
and other property . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,545) 1,715 23,658 (89,206)
Exchange gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,389 (17,484) (18,262) 41,019
“Other income” for the year ended March 31, 2005 includes a net gain of ¥14,422 million ($134,785 thousand) from issuance
of stock by certain subsidiaries and affiliated companies which resulted in changes of the Company’s ownership interest.
“Other deductions” for the year ended March 31, 2003 includes a net periodic benefit cost of ¥24,857 million which was
generated as the result of adopting EITF Issue No. 03-2, “Accounting for the Transfer to the Japanese Government of the
Substitutional Portion of Employee Pension Fund Liabilities,” as described in note 12.
3. High Functional Materials & Components division restructured its magnetic materials operations and cable operations
in order to strengthen its management structure. The accrued special termination benefits expensed during the year
ended March 31, 2005 amounted to ¥1,711 million ($15,991 thousand) and were paid by March 2005. Total restructuring
charges during the year ended March 31, 2005 amounted to ¥3,945 million ($36,869 thousand).
The following represent significant restructuring activities for the year ended March 31, 2004 by business line:
1. Power & Industrial Systems division restructured in order to address the general weakness in demand primarily in
Japan. The accrued special termination benefits expensed during the year ended March 31, 2004 amounted to ¥1,414
million. The liabilities for special termination benefits amounting to ¥715 million were paid by March 2005. Total
restructuring charges during the year ended March 31, 2004 consisted only of special termination benefits.
2. Digital Media & Consumer Products division restructured its consumer products plants and related distribution network
in order to address the general weakness in consumer demand primarily, in Japan. The accrued special termination
benefits expensed during the year ended March 31, 2004 amounted to ¥14,394 million. The liabilities for special
termination benefits amounting to ¥26 million were paid by March 2005. Total restructuring charges during the year
ended March 31, 2004 amounted to ¥17,760 million.
3. High Functional Materials & Components division restructured its semiconductor packaging materials operations
because the business environment took a dramatic downturn in Japan. The accrued special termination benefits
expensed during the year ended March 31, 2004 amounted to ¥2,347 million. The liabilities for special termination
benefits amounting to ¥167 million were paid by March 2005. Total restructuring charges during the year ended March
31, 2004 amounted to ¥9,439 million.