Bridgestone 2002 Annual Report Download - page 37

35
The aggregate carrying amount of assets pledged as collateral
for short-term bank loans of ¥6,762 million ($56,397 thousand)
and long-term bank loans of ¥2,868 million ($23,920 thousand)
at December 31, 2002 is ¥30,328 million ($252,944 thousand).
Effective November 30, 2001, BFAH and its major subsidiaries
in the U.S. entered into separate revolving credit agreements, with
a syndicate of banks providing an aggregate borrowing commit-
ment of $3.2 billion, which expires January 7, 2003. On January
30, 2002, the Company contributed $1.3 billion to BFAH which
was principally used to repay the revolving credit, thereby reducing
the total borrowing commitment to $2.16 billion.
Effective January 7, 2003, BSA and its major subsidiaries in the
U.S. entered into separate amended and restated revolving credit agree-
ments with a syndicate of banks providing an aggregate borrowing com-
mitment of $1.5 billion. These agreements expire on January 6, 2004.
These agreements contain certain customary affirmative and
negative covenants, the most restrictive of which include (i) the
maintenance by BSA and its major subsidiaries of certain tangible
net worth; (ii) restrictions on entering into additional debt arrange-
ments and the sale of assets; and (iii) the maintenance by the
Company of certain credit ratings. Further, an event of default
under the separate revolving credit agreements by any of the major
subsidiaries in the U.S. causes an event of default under the BSA
amended and restated revolving credit agreement.
Additionally, BSA entered into an agreement to borrow $600 mil-
lion under unsecured term loan with a bank. The agreement expires
on January 6, 2004. The agreement contains certain customary affir-
mative and negative covenants, the most restrictive of which includes
the maintenance by BSA of certain consolidated tangible net worth
and restrictions upon BSA and its subsidiaries on the sale of assets.
Thousands of
Millions of yen U.S. dollars
2002 2001 2002
Change in projected benefit obligation:
Projected benefit obligation at beginning of year ¥(653,290) ¥(599,442) $(5,448,624)
Service cost (19,152) (21,806) (159,733)
Interest cost (27,305) (25,728) (227,731)
Plan participants’ contributions (1,381) (1,385) (11,518)
Plan amendments (251) 2,311 (2,093)
Curtailment and termination benefits —(4,379) —
Actuarial loss (41,806) (2,174) (348,674)
Foreign currency exchange rate changes 19,027 (27,282) 158,690
Benefits paid 34,207 26,595 285,296
Projected benefit obligation at end of year ¥(689,951) ¥(653,290) $(5,754,387)
Change in plan assets:
Fair value of plan assets at beginning of year ¥454,351 ¥554,771 $3,789,416
Actual return on plan assets (42,677) (128,943) (355,938)
Foreign currency exchange rate changes (19,439) 37,871 (162,127)
Employer contribution 11,613 9,730 96,856
Plan participants’ contributions 1,381 1,385 11,518
Settlements —(1,581) —
Benefits paid (23,299) (18,882) (194,320)
Fair value of plan assets at end of year ¥381,930 ¥454,351 $3,185,405
Funded status (308,021) (198,939) (2,568,982)
Unrecognized transitional obligation 15,752 17,721 131,376
Unrecognized actuarial loss 130,488 21,079 1,088,307
Unrecognized prior service cost 1,454 4,683 12,126
Amounts recognized in the balance sheet ¥(160,327) ¥(155,456) $(1,337,173)
Prepaid benefit cost 36,807 38,468 306,981
Other 40,175 4,815 335,070
Accrued pension and liability for retirement benefits ¥(237,309) ¥(198,739) $(1,979,224)
The Company and its domestic subsidiaries have contributory defined benefit pension plans pursuant to the Japanese Welfare Pension
Insurance Law, non-contributory defined benefit tax-qualified pension plans and severance indemnity plans.
The changes in projected benefit obligation and plan assets, funded status and composition of amounts recognized in the consolidated bal-
ance sheets at December 31, 2002 and 2001 are as follows:
Of the accrued pension and liability for retirement benefits noted above, a liability for postretirement benefits of ¥37,468 million
($312,494 thousand) and ¥41,142 million is included in the consolidated balance sheets at December 31, 2002 and 2001, respectively.
NOTE 7—RETIREMENT AND PENSION PLANS