Epson 2014 Annual Report Download - page 82

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(5) Long-term loans payable (including current portion)
Because long-term loans payable that are with floating rates are affected in the short term by fluctuations in
market interest rates, and because Epson’s credit status has not changed greatly since they were implemented, it
is assumed that their fair value is equal to the carrying amounts. The fair value of loans payable based on fixed
interest rates are calculated by discounting the total amounts of loans payable using estimated interest rates that
would be in effect if similar loan arrangements were entered into.
Limitations
Fair value estimates are based on relevant market information. These estimates involve uncertainties and
therefore changes in assumptions could affect the estimates.
23. Contingent liabilities
Contingent liabilities for guarantee of employees’ housing loans from banks and others were ¥391 million
and ¥270 million ($2,623 thousand) as of March 31, 2013 and 2014, respectively.
24. Subsequent events
Revision to defined benefit corporate pension plans
As of April 1, 2014, the company and its Japanese subsidiaries have revised its defined benefit corporate pension
plans for domestic employees for the purposes to absorb future changes of the environment surrounding the
company and to operate the fund stably over the future periods.
Epson plans to adopt IFRS from the fiscal year ending March 2015. According to IFRS, Epson will recognize a
decline in expenses of ¥30,071 million ($292 thousand) due to the recognition of prior service cost for the year
ending March 31, 2015, under the revised plan.
Issue of straight bonds by the Company
The Company issued straight bonds, as outlined below, under the following conditions established on June 6,
2014, pursuant to the comprehensive resolution approved by the Company’s board of directors held on April 30,
2014.
The 12th Series unsecured straight bonds (with inter-bond pari passu clause)
Total amount of issuance: ¥10,000 million ($97,162 thousand)
Issue price: ¥100 purchase value of ¥100
Interest rate: 0.354% per annum
Payment date: June 13, 2014
Maturity date: June 13, 2019
Purpose for funds: Repayment of redemption of bonds
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