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94 Hitachi, Ltd. Annual Report 2010
17. PLEDGED ASSETS
As of March 31, 2010, the Company and certain subsidiaries pledged a portion of their assets as collateral primarily for bank
loans as follows:
Millions of yen
Thousands of
U.S. dollars
2010 2010
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 1,780 $ 19,140
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,603 17,236
Investments and advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351 3,774
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,345 35,968
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,213 56,054
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,951 63,989
¥18,243 $196,161
In addition to the above, prepaid expenses and other current assets as of March 31, 2010 and 2009 include restricted cash
of ¥4,168 million ($44,817 thousand) and ¥6,906 million, respectively, as a compensating balance for short-term borrowing
arrangements.
18. COMMITMENTS AND CONTINGENCIES
The Company and its operating subsidiaries are contingently liable for loan guarantees to its affiliates and others in the amount
of approximately ¥49,911 million ($536,667 thousand) as of March 31, 2010.
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, 2010, the undiscounted maximum potential future payments
under such guarantees amounted to ¥413,616 million ($4,447,484 thousand). For providing these guarantees, the subsidiaries
obtain collateral equal to the amount of the guarantees, and therefore, the Company considers the risk to be low. The Company
accrued ¥13,045 million ($140,269 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 to affiliates and others.
The outstanding balance of these revolving lines of credit, credit facilities and loan commitments as of March 31, 2010 is
as follows:
Millions of yen
Thousands of
U.S. dollars
2010 2010
Total commitment available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥358,638 $3,856,323
Less amount utilized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,460 47,957
Balance available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥354,178 $3,808,366
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 lines of credit as of March 31, 2010 amounted to ¥395,787 million ($4,255,774 thousand),
primarily related to unused lines of credit belonging to the Company. The Company maintains commitment line agreements
with a number of banks and pays commissions as consideration. These commitment agreements generally provide a one-year
term, and are subject to renewal at the end of the term. The unused availability under these agreements as of March 31, 2010
amounted to ¥200,000 million ($2,150,538 thousand). The Company also maintains another commitment line agreement,
whose three years and two months term ends in May 2013, with financing companies. The unused availability under this
agreement as of March 31, 2010 amounted to ¥100,000 million ($1,075,269 thousand).