Kenwood 2001 Annual Report Download - page 25
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KENWOOD Corporation Annual Report 2001 23
Long-term debt as of March 31, 2001 and 2000, consisted of the following:
Depreciation expense and interest expense, which are not
reflected in the accompanying statement of operations,
computed by straight-line method and the interest method
are as follows:
Millions of yen
6. Long-Term Debt
5. Short-Term Bank Borrowings
Under the "Law of Land Revaluation", promulgated and revised on
March 31, 1998, 1999 and 2001, respectively, the Company elected
a one-time revaluation of its own-use land to a value based on real
estate appraisal information as of March 31, 2000. The resulting
land revaluation surplus represents unrealized appreciation of land
and is stated, net of income taxes, as a component of shareholders'
equity. There is no effect on the statement of operations.
Continuous readjustment is not permitted unless the land value
subsequently declines significantly such that the amount of the
decline in value should be removed from the land revaluation surplus
account and related deferred tax liabilities. The details of the one-
time revaluation as of March 31, 2000 were as follows:
Land before revaluation:
Land after revaluation:
Land revaluation surplus, net of
income taxes of
2,288 million:
As of March 31, 2001, the carrying amount of the land after the
one-time revaluation exceeded the market value by
540 million
($4,355 thousand).
4. Revaluation Surplus
Millions
of yen Thousands of
U.S. dollars
Unsecured loans
Banks, 1.251%-6.710%, due through 2006
Japanese government-sponsored agencies, 2.15%-2.75%, due through 2005
Japanese insurance companies, 1.90%-2.90%, due through 2004
Others
Total unsecured loans
Mortgage loans
Total
Less: Current portion included in current liabilities
Long-term debt, less current portion
Millions of yen
Thousands of
U.S. dollars
Depreciation expense
Interest expense
Service cost
Interest cost
Expected return on plan assets
Amortization of transitional
obligation
Larger payments by voluntary
retirement on certain specific
ages prior to mandatory
retirement age
Net periodic benefit costs
As of March 31, 2001, long-term debt in the amount of 155 million ($1,250thousand) was collateralized by land and buildings
having a net book value of 425 million ($3,427 thousand).
The aggregate annual maturities of long-term debt as of March 31, 2001, were as follows:
Year ending March 31
2002
2003
2004
2005
2006
2007 and thereafter
Total
Millions
of yen Thousands of
U.S. dollars
The Company has a contributory trusteed pension plan, which
covers all employees of the Company. Under the plan, employees
terminating their employment after more than 10 years of
participation or upon reaching the age of 60 are entitled to pension
benefits.
Certain consolidated subsidiaries have various non-contributory
and contributory plans and other retirement benefit plans.
Employees are entitled to larger payments in case of voluntary
retirement at certain specific ages prior to the mandatory retirement
age.
Effective April 1, 2000, the Company and domestic consolidated
subsidiaries adopted a new accounting standard for employees'
retirement benefits.
The components of net periodic benefit costs are as follows:
7. Liability for Employees' Retirement Benefits
Millions
of yen Thousands of
U.S. dollars
Short-term bank borrowings are due within one year. The interest rates on these borrowings ranged from 0.63% to 6.66% and
0.67% to 9.0% as of March 31, 2001 and 2000, respectively.