Annual Report Japan Airlines Corporation at a Glance Consolidated Financial Highlights Consolidated Operating Highlights Message from the Management Interview with the Group CEO Dream Skyward II: Stepping-stone to become "the world' s No.1 airline group" Review of Operations Corporate Social Responsibility (CSR) Activities Management's Review and Analysis of Financial Position Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Stockholder' Equity (Note8) Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Independent Auditors Consolidated Subsidiaries JAL and Its Subsidiaries and Affiliates Directory JAL Group Route Network Board of Directors Investor Information

Consolidated Balance Sheets

		Millions of yen	Thousands of U.S. dollars (Note 2)
	2004	2003	2004
Liabilities and stockholders’ equity
Current liabilities:
Short-term borrowings (Notes 3 and 5)	¥ 10,782	¥ 23,035	$ 102,685
Current portion of long-term debt (Notes 5 and 14)	144,718	198,188	1,378,266
Accounts payable (Note 14):
Trade	198,530	197,227	1,890,761
Unconsolidated subsidiaries and affiliates	7,512	7,329	71,542
Accrued expenses	50,966	56,337	485,390
Accrued income taxes (Note 7)	6,572	5,320	62,590
Deferred income taxes (Note 7)	60	73	571
Other	141,416	127,833	1,346,819
Total current liabilities	560,559	615,346	5,338,657
Long-term debt (Notes 5 and 14)	1,170,156	1,094,285	11,144,342
Accrued pension and severance costs (Note 6)	163,128	143,670	1,553,600
Deferred income taxes (Note 7)	120	413	1,142
Other noncurrent liabilities	36,041	40,788	343,247
Minority interests	24,139	23,522	229,895
Commitments and contingent liabilities (Notes 10, 11 and 14)
Stockholders’ equity (Note 8):
Common stock:
Authorized: 7,000,000,000 shares Issued: 1,980,465,250 shares in 2004 and 2003	100,000	100,000	952,380
Capital surplus	136,678	147,175	1,301,695
(Accumulated deficit) retained earnings	(65,031)	23,481	(619,342)
Net unrealized gain (loss) on other securities, net of taxes (Note 4)	2,787	(780)	26,542
Translation adjustments	(9,958)	(7,451)	(94,838)
Common stock in treasury, at cost: 18,448,160 shares in 2004 and 19,863,126 shares in 2003	(5,202)	(8,168)	(49,542)
Total stockholders’ equity	159,273	254,256	1,516,885
	¥ 2,113,418	¥ 2,172,284	$20,127,790

The accompanying notes are an integral part of these consolidated statements.

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