Omron 2003 Annual Report Download - page 42

The weighted average annual interest rates of short-term bank loans at March 31, 2003 and 2002 were 1.2% and
1.7%, respectively.
Long-term debt at March 31 consisted of the following:
Thousands of
Millions of yen U.S. dollars
2003 2002 2003
Unsecured debt:
Convertible bonds at 1.7%, due in 2004..................................................... ¥29,735 ¥29,735 $247,792
Loans from banks and other financial institutions,
generally at 0.4% to 3.8%, due serially through 2006 .................................. 21,802 12,541 181,683
Other................................................................................................................ 775 1,712 6,458
Total............................................................................................................. 52,312 43,988 435,933
Less portion due within one year .................................................................... 11,997 1,192 99,975
Long-term debt, less current portion .............................................................. ¥40,315 ¥42,796 $335,958
The annual maturities of long-term debt outstanding at March 31, 2003 were as follows:
Thousands of
Years ending March 31 Millions of yen U.S. dollars
2004 ..................................................................................................................... ¥11,997$99,975
2005 ..................................................................................................................... 30,235 251,958
2006 ..................................................................................................................... 10,080 84,000
Total ..................................................................................................................... ¥52,312 $435,933
The convertible bonds may be purchased at any time by the Company or its subsidiaries principally at any price
in the open market or otherwise, and may be redeemed at the Company’s option prior to maturity. The convertible
bonds became redeemable, in whole or in part, beginning October 1997 at 106% of face value, decreasing 1% per
year. At March 31, 2003 the convertible bonds were redeemable, in whole or in part, at 101%.
The number of contingently issuable shares of common stock related to the convertible bonds as of March 31,
2003 was 10,026,639 shares. The conversion price per share at March 31, 2003 was ¥2,965 ($24.71), subject to
anti-dilutive provisions.
As is customary in Japan, additional security must be given if requested by a lending bank, and banks have the
right to offset cash deposited with them against any debt or obligation that becomes due and, in case of default
and certain other specified events, against all debt payable to the banks. The Companies have never received any
such requests.
As is customary in Japan, the Company and domestic subsidiaries maintain deposit balances with banks with
which they have short- or long-term borrowings. Such deposit balances are not legally or contractually restricted as
to withdrawal.
Total interest cost incurred and charged to expense for the years ended March 31, 2003, 2002 and 2001 amount-
ed to ¥1,430 million ($11,917 thousand), ¥1,291 million and ¥1,731 million, respectively.
The Companies have operating lease agreements primarily involving offices and equipment for varying periods.
Leases that expire generally are expected to be renewed or replaced by other leases. At March 31, 2003, future
minimum rental payments applicable to non-cancelable leases having initial or remaining non-cancelable lease
terms in excess of one year were as follows:
Thousands of
Years ending March 31 Millions of yen U.S. dollars
2004 ..................................................................................................................... ¥ 2,686 $22,383
2005 ..................................................................................................................... 2,461 20,508
2006 ..................................................................................................................... 2,217 18,475
2007 ..................................................................................................................... 2,088 17,400
2008 ..................................................................................................................... 1,928 16,067
2009 and thereafter.............................................................................................. 17,163 143,025
Total ..................................................................................................................... ¥28,543 $237,858
Rental expense amounted to ¥12,818 million ($106,817 thousand), ¥11,322 million and ¥11,232 million for the
years ended March 31, 2003, 2002 and 2001, respectively.
6. Bank Loans and
Long-Term
Debt
7. Leases
40 • Omron Corporation