Nikon 2007 Annual Report Download - page 39

37NIKON ANNUAL REPORT 2007
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, 2007 entitled the holders to subscribe for 16,763,848 shares which was computed using the above-mentioned exercise price.
At March 31, 2007, the following assets were pledged as collateral for long-term debt.
Investment securities
Thousands of
U.S. Dollars
2007
$ 71,466
2007
¥ 8,437
Millions of Yen
Liabilities secured by the above assets were as follows:
Long-term debt, including current portion
Thousands of
U.S. Dollars
2007
$ 39,136
2007
¥ 4,620
Millions of Yen
The liability for employees’ retirement benefits at March 31, 2007 and 2006 consisted of the following:
Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial loss
Unrecognized prior service cost
Prepayment of service cost
Net Liability
Thousands of
U.S. Dollars
2007
$ 881,712
(913,029)
38,584
115,800
123,067
5,384
$ 128,451
2006
¥ 102,767
(100,951)
886
13,936
16,638
329
¥ 16,967
2007
¥ 104,086
(107,783)
4,555
13,670
14,528
636
¥ 15,164
Millions of Yen
As is customary in Japan, the Company maintains substantial deposit balances with banks with which it has borrowings. Such deposit bal-
ances 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 off-
set 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 has a defined benefit corporate pension plan (cash balance plan) and its consolidated domestic subsidiaries have non-contributory
funded pension plans. Certain foreign subsidiaries also have contributory pension plans.
The Group accounted for the liability for retirement benefits based on the projected benefit obligations and plan assets at the balance sheet
date. Retirement allowances for officers are recorded to state the liability at the amount that would be required if all officers retired at each
balance sheet date.
Certain foreign subsidiaries (about the United States etc.) record unrecognized actuarial gains and losses to which cost is not processed to
balance sheet in this fiscal year.
The projected benefit obligation includes retirement allowance for officers of ¥189 million ($1,598 thousand).
On April 1, 2006, the Company revised the pension plan and implemented a defined contribution pension plan for a part of future amount.
As a result, the projected benefit obligation is to be decreased by ¥1,505 million ($12,750 thousand) and the amount is being amortized as
prior service cost over 10 years from the time of accrual.
Year Ending
March 31
2008
2009
2010
2011
2012
Thereafter
Total
Thousands of
U.S. Dollars
$ 185,874
66,645
90,660
378,992
508
38,120
$ 760,799
¥ 21,942
7,867
10,702
44,740
60
4,501
¥ 89,812
Millions of Yen
The aggregate annual maturities of long-term debt for the years following March 31, 2007 are as follows: