5. Inventories 6. Investments in Affiliates Inventories at March 31, 2003 and 2004 consisted of the following: The Company accounts for investments in affiliates by the equity method with minor exceptions. A summary of the financial information of the affiliates accounted for by the equity method is presented below: Carrying and market values at March 31, 2003 consisted of ·186, 801 million and ·363,304 million, respectively, for Fanuc Ltd. After a certain portion of shares in Fanuc Ltd. was sold for the year ended March 31, 2004, the remaining shares were no longer treated as investments in affiliates at March 31, 2004.  At March 31, 2003 and 2004, the amount of ·19,373 million ($182 ,764 thousand) representing the Company’s 29.49% investment in JECC was included in “other investments and long- term loans.” The Company does not regard JECC as an affiliate as it is unable to exercise significant influence over JECC’s affairs. JECC’s principal business is the leasing of computers and peripherals purchased from its six shareholders. At March 31, 2003 and 2004, JECC’s issued share capital was ·65,700 million ($619,811 thousand). Its net sales for the years ended March 31, 2002, 2003 and 2004 amounted to ·289,340 million, ·295,987 million and ·303,285 million ($2,861 ,179 thousand), respectively. As a result of reformation, Flash memory operations, Fujitsu Leasing Co., Ltd. and FDK Corporation were shifted from consolidated subsidiaries to equity method affiliates. The aggregate total assets and liabilities of these companies at the shift are presented below: 43 Yen U.S. Dollars (millions) (thousands) Current assets · 146,751 $ 1,384,443 Non-current assets 335,255 3,162,783 · 482,006 $ 4,547,226 Current liabilities · 205,804 $ 1,941,547 Long-term liabilities 168,412 1,588,793 · 374,216 $ 3,530,340 Yen U.S. Dollars (millions) (thousands) At March 31 2003 2004 2004 Carrying value · 202,621 · 18,148 $ 171,208 Market value 391,237 79,581 750,764 Yen U.S. Dollars (millions) (thousands) At March 31 2003 2004 2004 Current assets · 968,409 · 778,871 $ 7,347,839 Non-current assets 483,473 450,182 4,247,000 1,451,882 1,229,053 11,594,839 Current liabilities 361,863 616,255 5,813,726 Long-term liabilities 194,605 275,723 2,601,160 Net assets · 895,414 · 337,075 $ 3,179,953 Yen U.S. Dollars (millions) (thousands) Years ended March 31 2002 2003 2004 2004 Net sales ·1,163,438 ·1,214,169 ·1,393,351 $13,144,821 Net income (loss) (8,803) 445 39,994 377,302 The carrying and market values of the shares of the publicly listed equity method affiliates at March 31, 2003 and 2004 were as follows: Yen U.S. Dollars (millions) (thousands) 2003 2004 2004 Finished goods ·218,307 ·193,039 $1,821,123 Work in process 273,442 240,637 2,270,160 Raw materials 104,235 87,450 825,000 ·595,984 ·521,126 $4,916,283