Hitachi 2006 Annual Report Download - page 63

Hitachi, Ltd. Annual Report 2007 61
The aggregate annual maturities of long-term debt after March 31, 2008 are as follows:
Thousands of
Years ending March 31 Millions of yen U.S. dollars
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 367,037 $ 3,110,483
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455,357 3,858,957
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157,768 1,337,017
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,046 1,322,424
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353,635 2,996,907
¥1,489,843 $12,625,788
Short-term and long-term debt above as of March 31, 2007 include secured borrowings of ¥8,271 million ($70,093 thousand)
and ¥39,394 million ($333,847 thousand), respectively, resulting from the transfer of financial assets which does not meet
the criteria for a sale pursuant to SFAS No. 140 and is accounted for as secured borrowings with pledge of collateral.
As is customary in Japan, both short-term and long-term bank loans are made under general agreements that provide
that securities and guarantees for present and future indebtedness will be given upon request of the bank, and that the
bank shall have the right, as the obligations become due, or in the event of their default, to offset cash deposits against
such obligations.
Generally, the mortgage debenture trust agreements and certain secured and unsecured loan agreements provide, among
other things, that the lenders or trustees shall have the right to have any distribution of earnings, including the payment of
dividends and the issuance of additional capital stock, submitted to them for prior approval and also grant them the right
to request additional securities or mortgages on property, plant and equipment.
In October, 2004, the Company issued Euro yen zero coupon convertible bonds. The bonds consist of ¥50,000 million
series A zero coupon convertible bonds due 2009 and ¥50,000 million series B zero coupon convertible bonds due 2009.
The bondholders are entitled to stock acquisition rights effective from November 2, 2004 to October 5, 2009. The initial
conversion price was ¥1,009 per share for both bonds at which time the fair value of the Company’s common stock was
¥686. In accordance with the terms of the debenture, the conversion price was adjusted to ¥822 on October 19, 2005 for
series A zero coupon convertible bonds and on April 19, 2006 for series B zero coupon convertible bonds. The conversion
prices will be adjusted on October 19, 2007 for series A zero coupon convertible bonds and on April 19, 2008 for series
B zero coupon convertible bonds. The prices will be 95% (rounded upwards to the nearest one yen) of the average
closing prices of the Company’s shares on the Tokyo Stock Exchange for 30 consecutive trading days up to each
conversion date, but no less than ¥822. During the conversion period, the bondholders may exercise the stock acquisition
rights anytime after the closing price of the Company’s shares at the Tokyo Stock Exchange on at least one trading day
is 115 percent or more of the then applicable conversion price rounded down to the nearest yen. In addition, the
bondholders are entitled, at its option, to require the Company to redeem the bonds at a redemption price of 100 percent
of the principal amount on October 17, 2008.