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Victor Company of Japan, Limited 47
5INVENTORIES
Inventories at March 31, 2005 and 2004 are as follows:
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
Finished goods ¥093,764 ¥098,506 $0,876,299
Work in process 11,979 11,231 111,953
Raw materials and supplies 18,962 20,175 177,215
¥124,705 ¥129,912 $1,165,467
6SECURITIES
The following tables summarize acquisition costs and book values of
securities with available fair values as of March 31, 2005 and 2004:
(1) Available-for-sale securities
Millions of yen
Acquisition
cost Book value Difference
2005:
Securities with available fair values
exceeding acquisition costs:
Equity securities ¥2,797 ¥8,452 ¥5,655
Securities with available fair values
not exceeding acquisition costs:
Equity securities 0,063 50 (13)
Total ¥2,860 ¥8,502 ¥5,642
Millions of yen
Acquisition
cost Book value Difference
2004:
Securities with available fair
values exceeding
acquisition costs:
Equity securities ¥4,071 ¥12,040 ¥7,969
Securities with available fair
values not exceeding
acquisition costs:
Equity securities 0,051 0,0049 (2)
Total ¥4,122 ¥12,089 ¥7,967
Thousands of U.S. dollars
Acquisition
cost Book value Difference
2005:
Securities with available fair
values exceeding
acquisition costs:
Equity securities $26,140 $78,991 $52,850
Securities with available fair
values not exceeding
acquisition costs:
Equity securities 00,589 00,467 (121)
Total $26,729 $79,458 $52,729
The following tables summarize book values as of March 31, 2005
and 2004 of securities with no available fair values.
(2) Available-for-sale securities
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
Book value Book value Book value
Unlisted equity securities ¥1,482 ¥1,627 $13,850
Unlisted foreign
debt securities 8875
Subsidiaries and
affiliated companies 269 2,144 2,514
Total ¥1,759 ¥3,779 $16,439
(3) Available-for-sale securities sold in the years ended
March 31, 2005, 2004 and 2003 are as follows:
Thousands of
Millions of yen U.S. dollars
2005 2004 2003 2005
Sales ¥5,541 ¥886 ¥6,247 $51,785
Gains 3,911 280 318 36,551
Losses 7615 65
7INCOME TAXES
Income taxes in Japan consist of corporation, enterprise and inhabi-
tants’ taxes. The Company and consolidated domestic subsidiaries
are subject to income taxes referred to above, which, in the aggre-
gate, resulted in the statutory tax rates of approximately 40.6% for
the year ended March 31, 2005, and 42.0% for the year ended
March 31, 2004. Consolidated overseas subsidiaries are subject to
income taxes regulation of the countries in which they domicile.
The following table summarizes the significant differences
between the statutory tax rate and the Companies’ effective tax
rate for financial statement purposes for the years ended March
31, 2005 and 2004.
2005 2004
Statutory tax rate: 40.6)%42.0)%
Lower tax rates of overseas subsidiaries (19.4)% (8.7)%
Expenses not deductible for tax purposes 50.0)%4.9)%
Effect of changes in valuation allowance
for deferred tax assets (34.7)% (47.1)%
Effect of changes in tax rates —)% 4.1)%
Foreign tax credit 22.0)%10.0)%
Effect of dividend income elimination 49.6)%—)%
Other 23.0)%(18.9)%
Effective tax rate 131.1)%(13.7)%