JVC 2000 Annual Report Download - page 32

30 JVC 2000
The 1.5% unsecured convertible bonds are redeemable prior to their
stated maturity, in whole or in part, at the option of the Company at
prices ranging from 107% to 100% of the principal amount,
respectively. The price at which shares of common stock shall be is-
sued upon conversion is ¥2,867 ($27.05) per share, subject to adjust-
ment under certain circumstance. The 0.35% and 0.55% unsecured
convertible bonds are redeemable prior to their stated maturity, in whole
or in part, at the option of the Company at prices ranging from 102% to
100% and 103% to 100% of the principal amount, respectively. For
both issues, the price at which shares of common stock shall be issued
upon conversion is ¥1,487 ($14.03) per share, subject to adjustment
under certain circumstance.
The aggregate annual maturities of long-term debt at March 31,
2000 were as follows:
Thousands of
Year ending March 31 Millions of yen U.S. dollars
2001 ................................................... ¥ 479 $ 4,519
2002 ................................................... 11,187 105,538
2003 ................................................... 26,149 246,689
2004 ................................................... 7,274 68,622
2005 ................................................... 12,970 122,358
Thereafter............................................ 44,31,855 300,519
........................................................... ¥89,914 $848,245
8. PLEDGED ASSETS
The following assets were pledged as collateral for long-term debt and
accrued expenses at March 31, 2000:
Thousands of
Millions of yen U.S. dollars
Investments......................................... ¥ 8 $ 75
Machinery and equipment ................... 221 2,085
........................................................... ¥229 $2,160
9. CONTINGENT LIABILITIES
The contingent liabilities of the Company and its consolidated sub-
sidiaries at March 31, 2000 were as follows:
Thousands of
Millions of yen U.S. dollars
As endorser of export bills
discounted with banks........................ ¥ 6,119 $ 57,726
As guarantor for loans to
employees.......................................... 17,209 162,350
As guarantor for loan to affiliated
company and lease obligations of
affiliated company and others............. 1,125 10,613
........................................................... ¥24,453 $230,689
10. STOCKHOLDERS’ EQUITY
Under the Commercial Code of Japan (the “Code”), at least 50% of the
issue price of new shares, with a minimum of the par value thereof, is
required to be designated as stated capital. The portion which is to be
designated as stated capital is determined by resolution of the Board of
Directors. Proceeds in excess of the amounts designated as stated
capital are credited to additional paid-in capital.
The maximum amount that the Company can distribute as divi-
dends is calculated based on the unconsolidated financial statements
of the Company and in accordance with the Code.
11. DERIVATIVE FINANCIAL INSTRUMENTS
The Company and its consolidated subsidiaries uses derivative financial
instruments in the normal course of their business to manage the expo-
sure to fluctuations in foreign exchange rates and interest rates. The pri-
mary classes of derivatives used by the Company and its consolidated
subsidiaries are forward exchange contracts, option contracts and in-
terest rate swap contracts.
These derivative financial transactions are utilized solely for hedging
purposes under the internal control rules and executed by the
Company’s accounting department and those authorized by the
Director responsible for accounting matters under the supervision by
the Board of Directors. The Company does not anticipate any credit
loss from nonperformance by the counterparties to the forward ex-
change contracts, option contracts and interest rate swap contracts.
The outstanding contract amounts of derivative financial transac-
tions, their book values and their market values at March 31, 2000 are
summarized as follows:
Millions of yen
Contract Market Unrealized
March 31, 2000 amount value gain (loss)
Forward exchange contracts:
To sell U.S. dollars...................... ¥51,691 ¥51,430 ¥261
To sell Euros ............................... 14,828 13,909 919
To sell Sterling pounds................ 3,883 3,718 165
To sell Canadian dollars .............. 2,500 2,399 101
To sell Singapore dollars............. 2,400 2,347 53
To sell Others.............................. 596 562 34
To buy U.S. dollars ..................... 15,342 15,037 (305)
To buy Singapore dollars ............ 312 312 0
To buy Thai bahts ....................... 1,570 1,604 34
Thousands of U.S. dollars
Contract Market Unrealized
March 31, 2000 amount value gain (loss)
Forward exchange contracts:
To sell U.S. dollars...................... $487,651 $485,189 $2,462
To sell Euros ............................... 139,887 131,217 8,670
To sell Sterling pounds................ 36,632 35,075 1,557
To sell Canadian dollars .............. 23,585 22,632 953
To sell Singapore dollars............. 22,642 22,142 500
To sell Others.............................. 5,623 5,302 321
To buy U.S. dollars ..................... 144,735 141,858 (2,877)
To buy Singapore dollars ............ 2,943 2,943 0
To buy Thai bahts ....................... 14,811 15,132 321
Millions of yen
Contract Book Market Unrealized
March 31, 2000 amount value value gain (loss)
Option contracts:
Call:
To sell U.S. dollars............ ¥12,965 ¥49 ¥132 ¥ (83)
To sell Euros..................... 2,153 16 10 6
Put:
To sell U.S. dollars............ 3,749 20 111 (91)
To sell Euros..................... 985 11 9 2
Call:
To buy U.S. dollars ........... 1,260 —11 11
Put:
To buy U.S. dollars ........... 12,938 74 203 129
To buy Euros .................... 2,153 27 25 (2)