JVC 1998 Annual Report Download - page 28

26 JVC 1998
6. MARKETABLE EQUITY SECURITIES
The aggregate cost, market value and unrealized gains pertaining to
marketable equity securities included in “marketable securities” and “in-
vestments and advances — other” in the accompanying consolidated
balance sheets at March 31, 1998 and 1997, were as follows:
Thousands of
Millions of yen U.S.dollars
1998 1997 1998
Marketable securities:
Cost........................................... ¥ 112 ¥ 307 $ 848
Market value .............................. 513 1,925 3,886
Unrealized gains......................... ¥ 401 ¥ 1,618 $ 3,038
Investments and
advances—other:
Cost........................................... ¥10,484 ¥11,760 $ 79,424
Market value .............................. 19,737 26,632 149,523
Unrealized gains......................... ¥ 9,253 ¥14,872 $ 70,099
7. INCOME TAXES
Income taxes in Japan consist of corporation, enterprise and inhabi-
tants taxes.
The Company and its domestic consolidated subsidiaries are sub-
ject to the income taxes mentioned above which, in the aggregate, re-
sulted in normal effective tax rate of approximately 51% for the years
ended March 31, 1998, 1997 and 1996. Foreign subsidiaries are sub-
ject to income taxes of the countries in which they domicile.
The actual effective tax rates differ from the normal effective rate be-
cause of mainly (1) tax reduction for dividend income received from
Japanese companies and (2) expenses not deductible for income tax
purposes.
8. SHORT-TERM BANK LOANS AND LONG-TERM DEBT
Short-term bank loans of certain of the Company’s consolidated sub-
sidiaries consist of notes maturing generally in three months. The ap-
plicable annual interest rates on short-term bank loans outstanding at
March 31, 1998 and 1997, ranged from 1.2% to 20.0% and from 1.0%
to 11.2%, respectively.
Long-term debt at March 31, 1998 and 1997, was as follows:
Thousands of
Millions of yen U.S. dollars
1998 1997 1998
1.4% unsecured convertible
bonds due 1999 ......................... ¥20,431 ¥20,431 $154,780
1.5% unsecured convertible
bonds due 2005 ......................... 11,483 12,977 86,992
0.35% unsecured convertible
bonds due 2002 ......................... 19,999 20,000 151,507
0.55% unsecured convertible
bonds due 2005 ......................... 20,000 20,000 151,515
4.3% Eurobonds due 2000.......... 10,700 10,052 81,061
Loans, primarily from banks
with
interest principally at 2.20%
to 8.95%
Secured.................................... 561 613 4,250
Unsecured ................................ 7,503 10,081 56,841
Other ........................................... 649 904 4,917
.................................................... 91,326 95,058 691,863
Less current portion..................... 20,431 —154,780
.................................................... ¥70,895 ¥95,058 $537,083
The 1.5% and 1.4% unsecured convertible bonds are redeemable
prior to their stated maturity, in whole or in part, at the option of the
Company at prices ranging from 107% to 100% and 104% to 100%
of the principal amount, respectively. For both issues, the price at
which shares of common stock shall be issued upon conversion is
¥2,867 ($21.72) per share, subject to adjustment under certain
circumstances.
The 0.35% and 0.55% unsecured convertible bonds are re-
deemable prior to their stated maturity, in whole or in part, at the option
of the Company at prices ranging from 102% to 100% and 103% to
100% of the principal amount, respectively. For both issues, the price at
which shares of common stock shall be issued upon conversion is
¥1,487 ($11.27) per share, subject to adjustment under certain
circumstances.