The investees accounted for by the equity method together with a percentage of the company's ownership of voting share are Nippon Electric Glass Co., Ltd. (42.2%), ANRITSU CORPORATION (25.6%), Toyo Communication Equipment Co., Ltd. (39.0%), NITSUKO CORPORATION (34.3%), Nippon Electric Industry Co., Ltd. (47.9%), Tokin Corporation (41.1%), NEC Leasing, Ltd. (50.0%), Sumitomo 3M Limited (25.0%), Packard Bell NEC, Inc. (19.8%) and seven other companies at March 31, 1997.
Summarized financial information on 50 percent or less owned companies accounted for by the equity method is as shown below:
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In thousands of
In millions of yen U.S. dollars
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March 31 1996 1997 1997
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Current assets ..............................................Y 885,983 Y 1,025,055 $ 8,266,572
Other assets, including property, plant and equipment ....... 934,821 1,014,442 8,180,984
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Total assets .............................................Y 1,820,804 Y 2,039,497 $ 16,447,556
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Current liabilities .........................................Y 764,667 Y 862,489 $ 6,955,556
Long-term liabilities ....................................... 616,695 699,000 5,637,097
Shareholders' equity ........................................ 439,442 478,008 3,854,903
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Total liabilities and shareholders' equity................Y 1,820,804 Y 2,039,497 $ 16,447,556
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In thousands of
In millions of yen U.S. dollars
-------------------------------------------- -------------
Year ended March 31 1995 1996 1997 1997
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Sales and operating revenue .................Y 1,105,172 Y1,342,154 Y1,715,434 $13,834,145
Net income (loss) ........................... 28,022 13,420 (34,797) (280,621)
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Of the 16 companies at March 31, 1996 and 1997 included on the equity basis, the stocks of six companies carried at equity of Y106,575 million and Y112,184 million ($904,710 thousand) at March 31, 1996 and 1997, respectively, were quoted on the market at an aggregate value of Y298,180 million and Y240,446 million ($1,939,081 thousand), respectively, at those dates.
The balances and transactions with companies accounted for by the equity method are shown below:
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In thousands of
In millions of yen U.S. dollars
---------------------------- -------------
March 31 1996 1997 1997
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Receivables, trade ............................................ Y 60,959 Y 66,814 $ 538,823
Payables, trade ............................................... 60,897 52,929 426,847
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In thousands of
In millions of yen U.S. dollars
--------------------------------------------- -------------
Year ended March 31 1995 1996 1997 1997
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Sales ....................................... Y 180,385 Y 212,777 Y 253,393 $ 2,043,492
Purchases ................................... 110,783 116,441 112,776 909,484
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On August 31, 1995, for consideration of Y17,026 million the company acquired 4,040,149 shares of voting convertible preferred stock of Packard Bell Electronics, Inc. (PB) representing 19.97% of the then combined outstanding common and preferred stock of PB.
On April 1, 1996, the company purchased 6,725,285 shares of non-voting convertible preferred stock from PB for Y30,706 million ($247,629 thousand).
In addition, on June 30, 1996, the parent company, NEC Technologies, Inc., a wholly owned subsidiary, and PB effected an agreement to transfer certain assets and liabilities of the company's personal computer business to PB in order to integrate their worldwide personal computer businesses, except in Japan and China. The company received 7,306,000 shares of non-voting convertible preferred stock of PB for Y35,270 million ($284,435 thousand) consideration for the assets transferred. The non-voting convertible preferred stock is classified as debt securities based on the provisions of SFAS No. 115.
On July 11, 1996, PB changed its name to Packard Bell NEC, Inc. (PBN).
See Note 17-(2) to the consolidated financial statements as to the investment subsequently made in June 1997.
