Fujitsu 2001 Annual Report Download - page 40

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Assets pledged as collateral for bank loans and long-term debt at March 31, 2000 and 2001 are presented below:
Yen U.S. Dollars
(millions) (thousands)
2000 2001 2001
Property, plant and equipment, net ¥15,053 ¥19,465 $156,976
Receivables, trade and other current assets 547 35 282
¥15,600 ¥19,500 $157,258
As is customary in Japan, substantially all loans from banks (including short-term loans) are made under general
agreements which provide that, at the request of the banks, the borrower is required to provide collateral or guarantors
(or additional collateral or guarantors, as appropriate) with respect to such loans, and that all assets pledged as collateral
under such agreements will be applicable to all present and future indebtedness to the banks concerned. These
general agreements further provide that the banks have the right, as the indebtedness matures or becomes due
prematurely by default, to offset deposits at the banks against the indebtedness due to the banks.
The current conversion prices of the 1.4%, 1.9%, 1.95% and 2.0% convertible bonds issued by the Company are
¥1,751.50, ¥998.00, ¥998.00 and ¥998.00 per share, respectively. Each conversion price is subject to adjustment in
certain circumstances, including stock splits or free share distributions of common stock. At March 31, 2001,
approximately 95 million shares of common stocks were reserved for the conversion of all outstanding convertible
bonds.
Certain outstanding convertible bonds and notes can be repurchased at any time and may be redeemed at the
option of the Company, in whole or in part, at prices ranging from 105% to 100% of their principal amounts.
The aggregate annual maturities of long-term debt subsequent to March 31, 2001 are summarized as follows:
Yen U.S. Dollars
Years ending March 31 (millions) (thousands)
2002 ¥231,716 1,868,677
2003 193,219 1,558,218
2004 178,918 1,442,887
2005 137,139 1,105,960
2006 and thereafter 443,013 3,572,685
Bonds with detachable stock purchase warrants are accounted for separately as amounts attributable to the bonds
and the stock purchase warrants. The aggregate amount attributable to stock purchase warrants is reported in other
current liabilities in conformity with accounting principles generally accepted in Japan. The warrants outstanding at
March 31, 2000 amounted to ¥1,971 million.
Convertible bonds are treated solely as bonds and no value inherent in their conversion feature is recognized in
accordance with accounting principles generally accepted in Japan. The total amount of the convertible bonds has been
included in long-term debt.
10. Retirement benefits
The Company and the majority of the consolidated subsidiaries in Japan have unfunded lump-sum retirement plans
which, in general, cover all employees who retire before a retirement age prescribed by in their internal codes. The
employees are entitled to the benefits primarily based on their length of service and basic salary as of the retirement
date.
In addition, the Company and the majority of the consolidated subsidiaries in Japan participate in Group contributory
defined benefit plans which cover substantially all employees. The major contributory defined benefit plan (the “Plan”),
which is referred to as the Fujitsu Welfare Pension Fund, entitles employees upon retirement at the normal retirement
age to either a lump-sum payment or pension annuity payments for life commencing at age 60 or a combination of
both based on their length of service, basic salary as of the retirement date and the number of years of participation in
the Plan. The contributions of the Company and the subsidiaries covered by the Plan and their employees are made to
the Fujitsu Welfare Pension Fund which is an external organization.
For the year ended March 31, 2001, the government portion of the projected benefit obligation of the Welfare
Pension Fund for the Company and the subsidiaries was reduced under the revision of Japanese Welfare Pension
Insurance Law, effective in March 2000.
The majority of the consolidated subsidiaries outside Japan have defined benefit plans and/or defined contribution
plans covering substantially all their employees.
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Notes to C onsolidated Financial S tatements