Oki 2009 Annual Report Download - page 40

38 Annual Report 2009
*2 The zero coupon convertible bonds with stock acquisition rights due 2011 are exercisable during the period from June 8, 2006 to June 6, 2011
(unless they are previously redeemed or purchased and cancelled) and entitle the bearer to acquire fully-paid and non-assessable shares of
common stock of the Company at a conversion price of ¥ 291 ($ 2.9) per share.
These bonds are subject to certain provisions that permit the conversion price to be adjusted depending on the stock price (¥291 being the
lower limit). The conversion price of ¥291 was amended from the initial conversion price of ¥376 ($ 3.8) and valid after December 25, 2006.
*3 The Company redeemed the “Zero coupon convertible bonds with stock acquisition rights due 2011” before maturity as resolved by the Board
of Directors of the Company on April 28, 2009.
At March 31, 2009, ¥6,000 million ($61,224 thousand) of short-term borrowings were collateralized by assets amounting to ¥7,374 million
($75,244 thousand).
As is customary in Japan, both short-term and long-term bank loans are made under general agreements which provide that collateral and guar-
antees (or additional collateral or guarantees, as appropriate) with respect to present and future indebtedness be given at the request of the lend-
ing bank, and that the bank shall have the right, as the obligations become due or in the event of default, to offset the obligations with any cash
deposited with the bank.
The aggregate annual maturities of long-term debt subsequent to March 31, 2009 are summarized as follows:
Year ending March 31, Millions of yen
Thousands of
U.S. dollars
2010 ¥ 25,619 $ 261,418
2011 54,932 560,530
2012 33,836 345,265
2013 4,572 46,653
2014 and thereafter 1,263 12,887
¥120,224 $1,226,775
The Group has access to substantial sources of funds at numerous banks worldwide. Total unused credit available to the Group at March 31, 2009
was ¥52,748 million ($538,244 thousand).
7.
RETIREMENT BENEFITS
The Group has a noncontributory defined benefit pension plan and lump-sum retirement payment plans which cover substantially all employees
who terminate their employment with the Group. Certain overseas consolidated subsidiaries have defined benefit and defined contribution pension
plans. In addition, the Company has contributed certain securities to a pension trust in a lump-sum retirement payment plans. Furthermore, eligible
employees, upon termination of their employment with the Group, may receive certain additional payments under the plans.
The Company and 31 domestic consolidated subsidiaries joined the OKI Pension Fund which was established on January 1, 2005.
The following is a summary of the plans at March 31, 2009 and 2008:
Millions of yen
Thousands of
U.S. dollars
2009 2008 2009
Projected benefit obligation ¥(138,307) ¥(170,486) $(1,411,295)
Fair value of plan assets 61,105 88,537 623,520
Funded status (77,202) (81,949) (787,775)
Transition differences arising from initial adoption of new accounting standard for retirement
benefits 21,591 30,700 220,316
Unrecognized actuarial gain or loss 29,938 23,100 305,489
Unrecognized prior service cost (8,854) (12,060) (90,346)
Obligation recognized in the consolidated balance sheets (34,526) (40,208) (352,306)
Prepaid pension cost —7—
Allowance for retirement benefits ¥ (34,526) ¥ (40,216) $ (352,306)
(1) Certain domestic consolidated subsidiaries have applied a simplified method, as permitted, to calculate their projected benefit obligation.
(2) The above “Allowance for retirement benefits” does not include the “allowance for retirement benefits to directors and statutory auditors”.
Therefore, it differs from the retirement benefits reported in the accompanying consolidated balance sheets.