7. SHORT-TERM INVESTMENTS AND INVESTMENTS

Short-term investments and Investments consisted of available-for-sale securities and held-to-maturity securities and non-marketable equity securities (carried at cost).

The cost, gross unrealized holding gains and losses, fair value and carrying amount for such securities by major security type as of March 31, 2010 and 2011, were as follows:


	Yen in millions
As of March 31, 2010	Cost		Gains		Losses		Fair value		Carrying amount
Short-term investments:
Available-for-sale:
Corporate debt securities	¥	553	¥	30	¥	-	¥	583	¥	583
Investments in trusts		4,493		490		3		4,980		4,980
MMF and FFF		25,700		-		-		25,700		25,700
Marketable equity securities		951		625		-		1,576		1,576

Sub total		31,697		1,145		3		32,839		32,839
Held-to-maturity:
Corporate debt securities		500		-		-		500		500
Public debt securities (except Government debt securities)		300		1		-		301		300

Sub total		800		1		-		801		800

Total Short-term investments		32,497		1,146		3		33,640		33,639

Investments:
Available-for-sale:
Marketable equity securities		7,582		5,066		5		12,643		12,643
Held-to-maturity:
Corporate debt securities		1,317		-		58		1,259		1,317
Government debt securities		201		-		-		201		201
Public debt securities (except Government debt securities)		603		-		2		601		603

Sub total		2,121		-		60		2,061		2,121

Total Investments	¥	9,703	¥	5,066	¥	65	¥	14,704	¥	14,764

In addition to above investments, non-marketable equity securities (carried at cost) amounted to ¥ 402 million.


	Yen in millions
As of March 31, 2011	Cost		Gains		Losses		Fair value		Carrying amount
Short-term investments:
Available-for-sale:
Corporate debt securities	¥	588	¥	3	¥	-	¥	591	¥	591
Investments in trusts		4,990		260		55		5,195		5,195
MMF and FFF		26,720		-		-		26,720		26,720
Marketable equity securities		671		277		-		948		948

Sub total		32,969		540		55		33,454		33,454
Held-to-maturity:
Corporate debt securities		101		-		-		101		101

Total Short-term investments		33,070		540		55		33,555		33,555

Investments:
Available-for-sale:
Marketable equity securities		7,486		4,552		238		11,800		11,800
Held-to-maturity:
Corporate debt securities		3,964		1		43		3,922		3,964
Government debt securities		200		1		-		201		200
Public debt securities (except Government debt securities)		706		1		-		707		706

Sub total		4,870		3		43		4,830		4,870

Total Investments	¥	12,356	¥	4,555	¥	281	¥	16,630	¥	16,670

In addition to above investments, non-marketable equity securities (carried at cost) amounted to ¥ 399 million.


	U.S. Dollars in thousands
As of March 31, 2011	Cost		Gains		Losses		Fair value		Carrying amount
Short-term investments:
Available-for-sale:
Corporate debt securities	$	7,084	$	36	$	-	$	7,120	$	7,120
Investments in trusts		60,120		3,133		663		62,590		62,590
MMF and FFF		321,928		-		-		321,928		321,928
Marketable equity securities		8,085		3,337		-		11,422		11,422

Sub total		397,217		6,506		663		403,060		403,060
Held-to-maturity:
Corporate debt securities		1,217		-		-		1,217		1,217

Total Short-term investments		398,434		6,506		663		404,277		404,277

Investments:
Available-for-sale:
Marketable equity securities		90,193		54,843		2,867		142,169		142,169
Held-to-maturity:
Corporate debt securities		47,759		12		518		47,253		47,759
Government debt securities		2,410		12		-		2,422		2,410
Public debt securities (except Government debt securities)		8,506		12		-		8,518		8,506

Sub total		58,675		36		518		58,193		58,675

Total Investments	$	148,868	$	54,879	$	3,385	$	200,362	$	200,844

In addition to above investments, non-marketable equity securities (carried at cost) amounted to $ 4,807 thousand.

Investments in trusts represent funds deposited with trust banks in multiple investor accounts and managed by the fund managers of the trust banks. As of March 31, 2010 and 2011, each fund mainly consisted of marketable equity securities and interest-bearing bonds. Non-marketable equity securities are carried at cost and reviewed periodically for impairment.

The fair value of the non-marketable equity securities is not readily determinable.

The following table shows the gross unrealized holding losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2010 and 2011.

The gross unrealized loss position of available-for-sale securities has been continuing for a relatively short period of time. Based on this and other relevant factors, management has determined that these investments are not considered other-than-temporarily impaired. Makita has not held unrealized losses for twelve months or more at March 31, 2010 and 2011 with respect to available-for-sale securities.

The securities that are held to maturity each have a strong credit rating and Makita has both the intent and ability to hold such investments to maturity; therefore, Makita believes that it will not realize any losses on the held-to-maturity securities.


	Yen in millions
	Less than 12 months				12 months or more
As of March 31, 2010	Fair value		Gross unrealized holding losses		Fair value		Gross unrealized holding losses
Short-term investments:
Available-for-sale:
Investment in trusts	¥	234	¥	3	¥	-	¥	-
Investments:
Available-for-sale:
Marketable equity securities		37		5		-		-
Held-to-maturity:
Corporate debt securities		714		3		545		55
Government debt securities		200		-		-		-
Public debt securities (except Government debt securities)	¥	602	¥	2	¥	-	¥	-

	Yen in millions
	Less than 12 months				12 months or more
As of March 31, 2011	Fair value		Gross unrealized holding losses		Fair value		Gross unrealized holding losses
Short-term investments:
Available-for-sale:
Investment in trusts	¥	1,669	¥	55	¥	-	¥	-
Held-to-maturity:
Corporate debt securities		101		-		-		-
Investments:
Available-for-sale:
Marketable equity securities		2,237		238		-		-
Held-to-maturity:
Corporate debt securities		2,442		6		563		37
Public debt securities (except Government debt securities)	¥	303	¥	-	¥	-	¥	-


	U.S. Dollars in thousands
	Less than 12 months				12 months or more
As of March 31, 2011	Fair value		Gross unrealized holding losses		Fair value		Gross unrealized holding losses
Short-term investments:
Available-for-sale:
Investment in trusts	$	20,108	$	663	$	-	$	-
Held-to-maturity:
Corporate debt securities		1,217		-		-		-

Investments:
Available-for-sale:
Marketable equity securities		26,952		2,867		-		-
Held-to-maturity:
Corporate debt securities		29,422		72		6,783		446
Public debt securities (except Government debt securities)	$	3,651	$	-	$	-	$	-

Maturities of debt securities classified as available-for-sale and held-to-maturity as of March 31, 2011, regardless of their balance sheet classification, were as follows:

Maturities of debt securities based on Cost as of March 31, 2011


	Yen in millions						U.S. Dollars in thousands
	Available -for-sale		Held-to maturity		Total		Available -for-sale		Held-to maturity		Total
Due within one year	¥	-	¥	101	¥	101	$	-	$	1,217	$	1,217
Due after one to five year		588		4,270		4,858		7,084		51,446		58,530
Due after five to ten year		-		600		600		-		7,229		7,229
Due after ten year		-		-		-		-		-		-

Total	¥	588	¥	4,971	¥	5,559	$	7,084	$	59,892	$	66,976

Maturities of debt securities based on Fair value as of March 31, 2011


	Yen in millions						U.S. Dollars in thousands
	Available -for-sale		Held-to maturity		Total		Available -for-sale		Held-to maturity		Total
Due within one year	¥	-	¥	101	¥	101	$	-	$	1,217	$	1,217
Due after one to five year		591		4,267		4,858		7,120		51,410		58,530
Due after five to ten year		-		563		563		-		6,783		6,783
Due after ten year		-		-		-		-		-		-

Total	¥	591	¥	4,931	¥	5,522	$	7,120	$	59,410	$	66,530

Gross realized gains on sales of short-term investments and investments for the years ended March 31, 2009, 2010 and 2011 amounted to ¥ 534 million and ¥ 502 million and ¥ 331 million ($ 3,988 thousand), respectively.

Gross realized losses, which included the gross realized losses considered as other than temporary, during the years ended March 31, 2009, 2010 and 2011 amounted to ¥ 4,082 million, ¥ 228 million and ¥ 199 million ($ 2,398 thousand), respectively. The cost of the securities sold was computed based on the average cost of all the shares of each such security held at the time of sale. Gross unrealized losses on short-term investments and investments of which declines in market value are considered to be other than temporary were charged to earnings as realized losses on securities, amounting to ¥ 4,059 million, ¥ 228 million and ¥ 199 million ($ 2,398 thousand) for the years ended March 31, 2009, 2010 and 2011, respectively.

Proceeds from the sales and maturities of available-for-sale securities were ¥ 17,810 million, ¥ 2,467 million and ¥ 1,656 million ($ 19,952 thousand) for the years ended March 31, 2009, 2010 and 2011, respectively. Proceeds from maturities of the held-to-maturity securities were ¥ 600 million, ¥ 350 million and ¥ 800 million ($ 9,639 thousand) for the years ended March 31, 2009, 2010 and 2011, respectively.