JVC 2002 Annual Report Download - page 40

ANNUAL REPORT 2 0 0 23 8
7 . SHORT-TERM BANK LOANS AND LONG-TERM DEBT
Short-term bank loans of certain of the Company’s consolidated
subsidiaries consist of notes maturing generally in three months.
The applicable annual interest rates on short-term bank loans out-
standing at March 31, 2002 and 2001 ranged from 0.50% to
24.30% and from 0.78% to 20.57%, respectively.
Long-term debt at March 31, 2002 and 2001 were as follows:
Thousands of
Millions of yen U.S. dollars
2002 20 01 2 0 0 2
1.5% unsecured convertible
bonds due in 2005 ¥ 1 1 ,4 8 3 ¥ 11,483 $ 8 6,33 8
0.35% unsecured convertible
bonds due in 2002 1 9 ,9 9 9 19,999 150,368
0.55% unsecured convertible
bonds due in 2005 2 0 ,0 0 0 20,000 150,376
1.375% unsecured bonds
due in 2001 —5,000 —
1.75% unsecured bonds
due in 2003 5,000 5,000 3 7 ,5 9 4
2.15% unsecured bonds
due in 2005 1 0 ,0 0 0 10,000 7 5 ,1 8 8
1.68% unsecured bonds
due in 2006 2 0 ,0 0 0 20,000 150,376
1.89% unsecured bonds
due in 2007 1 0 ,0 0 0 10,000 7 5 ,1 8 8
1.30% guaranteed notes
due in 2001 —5,324 —
1.61% guaranteed notes
due in 2002 5,432 5,050 4 0 ,8 4 2
1.50% guaranteed notes
due in 2005 8,883 8,260 6 6 ,7 8 9
Loans, primarily from banks
with interest principally
at 0.82% to 7.00%
Secured 3 2 8 221 2 ,4 6 6
Unsecured 5,915 8,988 4 4 ,4 7 5
117,040 129,325 880,000
Less current portion 2 7 ,1 6 8 11,732 204,271
¥ 8 9 ,8 7 2 ¥117,593 $ 6 7 5 ,7 2 9
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, respec-
tively. The price at which shares of common stock shall be issued
upon conversion is ¥2,867 ($21.56) per share, subject to adjustment
under certain circumstances. The 0.35% and 0.55% unsecured con-
vertible 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 ($11.18) per share, subject to
adjustment under certain circumstances.
The aggregate annual maturities of long-term debt at March 31,
2002 were as follows:
Thousands of
Year ending March 31 Millions of yen U.S. dollars
2003 ¥ 27,168 $
204,271
2004 7,745 58,233
2005 12,529 94,203
2006 39,001 293,241
2007 20,120 151,278
Thereafter 10,477 78,774
¥117,040 $880,000
8 . PLEDGED ASSETS
The following assets were pledged as collateral for current portion of
long-term debt and accrued expenses at March 31, 2002:
Thousands of
Millions of yen U.S. dollars
Investments ¥ 1 $ 8
Machinery and equipment 4 7 5 3 ,5 7 1
Land 1 8 0 1 ,3 5 3
¥6 5 6 $ 4 ,9 3 2
9 . EMPLOYEES’ SEVERANCE AND RETIREMENT BENEFI TS
As explained in Note 2, Significant Accounting Policies, effective April
1, 2000, the Companies adopted the new accounting standard
(“ Opinion on Setting Accounting Standard for Employees’ Severance
and Retirement Benefits”). Liability for employees’ retirement benefits
included in liabilities in the consolidated balance sheet and the related
expenses for 2002 and 2001, which were determined based on the
amounts obtained by actuarial calculations, were as follows:
Thousands of
Millions of yen U.S. dollars
2 0 0 2 2001 2 0 0 2
Projected benefit obligation:
Projected benefit
obligation ¥(252,417) ¥(226,706) $ (1 ,8 9 7 ,8 7 2 )
Unamortized prior service
costs (8 ,0 0 9 ) (8,899) (6 0 ,2 1 8 )
Unamortized actuarial
differences 42,321 16,097 3 1 8 ,2 0 3
Less fair value of pension
assets 1 5 9 ,4 2 5 159,855 1,198,684
Less unrecognized net
transition obligation 36,129 38,907 2 7 1 , 6 4 7
Liability for severance and
retirement benefits ¥ (22 ,5 5 1 ) ¥ (20,746) $ (1 6 9 ,5 5 6 )
Severance and retirement
benefits expenses:
Service costs ¥ 8,20 0 ¥ 7,044 $ 6 1 ,6 54
Interest costs on projected
benefit obligation 8 ,8 8 4 8,923 66,797
Expected return on plan
assets (4 ,4 9 9 ) (4,499) (3 3 ,8 2 7 )
Amortization of net
transition obligation 2 , 7 7 9 2,779 20,895
Amortized actuarial
differences 1 ,6 1 0 —12,105
Amortized prior service
costs (890) —(6 ,6 9 2 )
Severance and retirement
benefits expenses ¥ 1 6 ,0 8 4 ¥ 14,247 $ 1 2 0 ,9 3 2
Not included in the above table is special retirement payments
amounting to ¥1,199 million ($9,015 thousand) and ¥3,595 million,
which were expensed in 2002 and 2001, respectively.
The discount rate and the rate of expected return on plan assets
used by the Company are 3.5% and 3.0% in 2002, and 4.0% and 3.0%
in 2001, respectively. The estimated amount of all retirement benefits
to be paid at the future retirement date is allocated equally to each
service year using the estimated number of total service years. Prior
service costs are recognized in income or expense using the straight-line
method over 10 years, and actuarial gains and losses are recognized in
income or expense using the straight-line method over 10 years
commencing with the following period.