Hitachi 2006 Annual Report Download - page 73

Hitachi, Ltd. Annual Report 2007 71
17. COMMITMENTS AND CONTINGENCIES
The Company and its operating subsidiaries are contingently liable for loan guarantees to its affiliates in the amount of
approximately ¥39,086 million ($331,237 thousand) as of March 31, 2007.
Hitachi Capital Corporation (HCC) and certain other financial subsidiaries provide guarantees to financial institutions for
extending loans to customers of the subsidiaries. As of March 31, 2007, the undiscounted maximum potential future
payments under such guarantees amounted to ¥462,619 million ($3,920,500 thousand). The Company has accrued ¥6,629
million ($56,178 thousand) as an obligation to stand ready to perform over the term of the guarantees in the event the
customer cannot make scheduled payments.
The subsidiaries provide certain revolving lines of credit to its credit card holders in accordance with the terms of the
credit card business customer service contracts. Furthermore, the subsidiaries provide credit facilities to parties in
accordance with the service agency business contracts from which temporary payments on behalf of such parties are
made. In addition, the Company and HCC provide loan commitments mainly to affiliates.
The outstanding balance of these revolving lines of credit, credit facilities and loan commitments as of March 31, 2007 is
as follows:
Thousands of
Millions of yen U.S. dollars
2007 2007
Total commitment available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥676,359 $5,731,856
Less amount utilized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,279 214,229
Balance available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥651,080 $5,517,627
A portion of these revolving lines of credit is pending credit approval and cannot be utilized.
The Company and certain subsidiaries have line of credit arrangements with banks in order to secure a financing source for
business operations. The unused line of credit as of March 31, 2007 amounted to ¥850,867 million ($7,210,737 thousand).
As of March 31, 2007, outstanding commitments for the purchase of property, plant and equipment were approximately
¥103,809 million ($879,737 thousand).
16. PLEDGED ASSETS
As of March 31, 2007, the Company and certain subsidiaries pledged a portion of their assets as collateral for bank
loans, trade payables and other liabilities as follows:
Thousands of
Millions of yen U.S. dollars
2007 2007
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 75 $ 636
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,509 21,263
Investments and advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 578 4,898
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,111 60,263
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,719 65,415
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,174 69,271
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325
¥26,169 $221,771
In addition to the above, prepaid expenses and other current assets as of March 31, 2007 include restricted cash of ¥10,388
million ($88,034 thousand) as compensating balance for short-term borrowing arrangements.