Nikon 2006 Annual Report Download - page 40

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The yen zero coupon convertible bonds were issued with stock acquisition rights to subscribe for shares of common stock of the Company.
The stock acquisition rights are exercisable through March 16, 2007 at ¥1,857 per share. The stock acquisition rights outstanding at March 31,
2006 entitled the holders to subscribe for 30,156,165 shares which was computed using the above-mentioned exercise price.
The yen zero coupon convertible bonds were issued with stock acquisition rights to subscribe for shares of common stock of the Company.
The stock acquisition rights are exercisable through March 14, 2011 at ¥2,058 per share. The stock acquisition rights outstanding at March 31,
2006 entitled the holders to subscribe for 16,763,848 shares which was computed using the above-mentioned exercise price.
At March 31, 2006, the following assets were pledged as collateral for long-term debt.
Investment securities
Total
Thousands of
U.S. Dollars
2006
$ 76,054
$ 76,054
2006
¥ 8,934
¥ 8,934
Millions of Yen
Liabilities secured by the above assets were as follows:
Long-term debt, including current portion
Total
Thousands of
U.S. Dollars
2006
$ 31,872
$ 31,872
2006
¥ 3,744
¥ 3,744
Millions of Yen
As is customary in Japan, the Company maintains substantial deposit balances with banks with which it has borrowings. Such deposit
balances are not legally or contractually restricted as to withdrawal.
General agreements with respective banks provide, as is customary in Japan, that additional collateral must be provided under certain
circumstances if requested by such banks and that certain banks have the right to offset cash deposited with them against any long-term or
short-term debt or obligation that becomes due and, in case of default and certain other specified events, against all other debts payable to
the banks. The Group has never been requested to provide any additional collateral.
7. RETIREMENT AND PENSION PLANS
The Company and major subsidiaries have non-contributory funded defined benefit pension plans covering substantially all of its employees.
Certain foreign subsidiaries also have contributory defined benefit pension plans. Under the pension plan, employees terminating their employ-
ment are, in most circumstances, entitled to pension benefits determined by reference to basic rates of pay at the time of termination, length
of service and certain other factors.
Retirement allowances for officers are recorded to state the liability at the amount that would be required if all officers retired at each bal-
ance sheet date.
On April 1, 2006, the Company revised the pension plan and implemented a defined contribution pension plan for a part of future amount.
Year Ending
March 31
2007
2008
2009
2010
2011
Thereafter
Total
Thousands of
U.S. Dollars
$ 660,218
184,610
64,496
88,372
378,820
38,308
$1,414,824
¥ 77,556
21,686
7,576
10,381
44,500
4,500
¥ 166,199
Millions of Yen
The aggregate annual maturities of long-term debt for the years following March 31, 2006 are as follows:
Issued in Maturity
2.5% Yen Unsecured Bonds November, 1997 November, 2007
1.0% Yen Unsecured Bonds April, 2001 April, 2006
1.3% Yen Unsecured Bonds December, 2001 December, 2006
1.7% Yen Unsecured Bonds December, 2001 December, 2008
1.15% Yen Unsecured Bonds February, 2003 February, 2008
1.4% Yen Unsecured Bonds February, 2003 February, 2010
Yen Zero Coupon Convertible Bond June, 2002 March, 2007
Yen Zero Coupon Convertible Bond March, 2004 March, 2011
Total
Thousands of
U.S. Dollars
2006
$ 85,128
85,128
85,128
42,564
85,128
85,128
476,718
293,692
$1,238,614
2005
¥ 10,000
10,000
10,000
5,000
10,000
10,000
56,000
34,500
¥145,500
2006
¥ 10,000
10,000
10,000
5,000
10,000
10,000
56,000
34,500
¥ 145,500
Millions of Yen