Annual Report 2007 - Komatsu

Notes to Consolidated Financial Statements
Komatsu Ltd. and Consolidated Subsidiaries
6. Inventories
At March 31, 2007 and 2006, inventories comprised the following:
Thousands of
Millions of yen
U.S. dollars
2007 2006 2007
Finished products, including finished parts held for sale ¥294,154 ¥243,164 $2,492,830
Work in process 85,687 78,869 726,161
Materials and supplies 58,053 48,041 491,975
Total ¥437,894 ¥370,074 $3,710,966
7. Investment Securities
Investment securities at March 31, 2007 and 2006, primarily
consisted of securities available for sale. Komatsu does not have
intentions to sell these securities within a year as of the balance
sheet date.
The cost, gross unrealized holding gains and losses, and fair
value for such investment securities by major security types at
March 31, 2007 and 2006, are as follows:
Millions of yen
Gross unrealized holding
Cost Gains Losses Fair value
At March 31, 2007
Investment securities available for sale:
Marketable equity securities ¥ 24,589 ¥ 68,167 ¥ 57 ¥ 92,699
Other investment securities at cost 15,474 — — 15,474
Current portion of other investment securities at cost 417 — — 417
¥ 40,480 ¥ 68,167 ¥ 57 ¥108,590
At March 31, 2006
Investment securities available for sale:
Marketable equity securities ¥ 18,341 ¥ 63,514 ¥111 ¥ 81,744
Other investment securities at cost 13,000 — — 13,000
Current portion of other investment securities at cost 415 — — 415
¥ 31,756 ¥ 63,514 ¥111 ¥ 95,159
Thousands of U.S. dollars
Gross unrealized holding
Cost Gains Losses Fair value
At March 31, 2007
Investment securities available for sale:
Marketable equity securities $208,381 $577,686 $483 $785,584
Other investment securities at cost 131,136 — — 131,136
Current portion of other investment securities at cost 3,534 — — 3,534
$343,051 $577,686 $483 $920,254
Other investment securities primarily include non-marketable
equity securities.
Unrealized holding gains and losses deemed to be temporary
are included as a component of accumulated other comprehensive
income (loss) until realized.
Proceeds from the sales of investment securities available for
sale were ¥1,844 million ($15,627 thousand), ¥4,112 million and
¥2,593 million for the years ended March 31, 2007, 2006 and
2005, respectively.
Net realized gains on sale of investment securities available
for sale during the years ended March 31, 2007, 2006 and
2005, amounted to gains of ¥344 million ($2,915 thousand),
gains of ¥18 million and losses of ¥126 million, respectively.
Such gains and losses were included in “other income (expenses)”
in the accompanying consolidated statements of income.
The cost of the marketable securities and investment securities
sold was computed based on the average-cost method.
62 Annual Report 2007