Oki 2001 Annual Report Download - page 26

Oki Electric Industry Co., Ltd. Annual Report 2001
24
At March 31, 2001, short-term and long-term debt aggregating to
¥2,789 million ($22,499 thousand) were collateralized by property,
plant and equipment which amounted to ¥2,801 million ($22,593
thousand).
As is customary in Japan, both short-term and long-term bank loans
are made under general agreements which provide that collateral and
guarantees (or additional collateral or guarantees, as appropriate) with
respect to present and future indebtedness will be given at the request of
a lending bank, and that the bank shall have the right, as the obligations
become due, or in the event of default, to offset any cash deposited
against such obligations.
Convertible bonds, unless previously redeemed, are convertible into
shares of common stock of the Company at the following conversion
prices:
Conversion
price per share Conversion period
2.2% bonds in yen due 2004 ...... ¥1,050.00 November 1, 1988 to
.............................................. March 30, 2004
1.8% bonds in yen due 2001 ...... ¥1,145.00 November 1, 1989 to
.............................................. September 27, 2001
The bonds are redeemable at the Company’s option, in whole or in
part, at the following redemption prices together with the accrued
interest to the date of redemption:
Redemption price
(% of the
principal amount) Redeemable on or after
2.2% bonds due 2004 ................. 106%–100%1/2April 1, 1997
1.8% bonds due 2001 ................. 105%–100%1/2October 1, 1995
Under the terms of the issues, the conversion prices of the con-
vertible bonds are subject to adjustment in certain cases, which include
stock splits.
A sufficient number of shares of common stock is reserved for the
conversion of all outstanding convertible bonds.
The aggregate annual maturities of long-term debt subsequent to
March 31, 2001 are summarized as follows:
Thousands of
Year ending March 31 Millions of yen U.S. dollars
2002 ............................................................... ¥042,789 $0,345,072
2003 ............................................................... 67,565 544,886
2004 ............................................................... 26,902 216,953
2005 ............................................................... 23,250 187,504
2006 and thereafter ........................................ 79,122 638,086
....................................................................... ¥239,630 $1,932,503
The Group has access to substantial sources of funds at numerous
banks worldwide. Total unused credit available to the Group at March
31, 2001 was ¥89,903 million ($725,025 thousand), including ¥30,000
million ($241,935 thousand) of credit commitments with various
Japanese banks. The Company compensates the banks for the credit
commitments in the form of fees, which were insignificant.
7. Retirement benefits
The Group has noncontributory defined benefit pension plans, contribu-
tory defined benefit pension plans pursuant to the Welfare Pension
Insurance Law of Japan, and lump-sum retirement payment plans which
cover substantially all employees who terminate their employment with
the Group. The Oki Electric Industries Welfare Pension Fund estab-
lished by the Company has become the multi-employers’ fund (the
“Fund”), which 34 consolidated subsidiaries have joined. Certain
foreign consolidated subsidiaries have defined benefits and defined
contribution pension plans. In addition, eligible employees, upon
4. Inventories
Inventories at March 31, 2001 and 2000 were as follows:
Thousands of
Millions of yen U.S. dollars
2001 2000 2001
Finished goods ........................... ¥056,375 ¥046,941 $0,454,643
Work in process ......................... 50,379 51,236 406,288
Raw materials and supplies ....... 49,207 42,467 396,836
............................................. ¥155,963 ¥140,644 $1,257,767
5. Investments in and advances to unconsolidated
subsidiaries and affiliates
Investments in and advances to unconsolidated subsidiaries and
affiliates at March 31, 2001 and 2000 were as follows:
Thousands of
Millions of yen U.S. dollars
.................................................... 2001 2000 2001
Investments stated:
By the equity method ........... ¥3,900 ¥3,643 $31,457
At cost or less ....................... 4,748 4,400 38,297
Advances ................................... 1,058 1,003 8,538
.............................................. ¥9,708 ¥9,047 $78,293
6. Short-term borrowings and long-term debt
Short-term borrowings are generally unsecured and represent notes. The
weighted average interest rates for the years ended March 31, 2001 and
2000 were both approximately 1.3%.
Long-term debt at March 31, 2001 and 2000 is summarized as follows:
Thousands of
Millions of yen U.S. dollars
.................................................... 2001 2000 2001
Loans from banks, insurance
companies and government
agencies, due through 2022
at rates of up to 8.0%:
Secured ................................. ¥002,760 ¥003,000 $0,022,258
Unsecured ............................. 95,239 112,704 768,059
.............................................. 97,999 115,704 790,317
Unsecured convertible bonds:
2.2% bonds in
yen due 2004 ...................... 32,188 32,188 259,580
1.8% bonds in
yen due 2001 ...................... 17,543 17,543 141,475
Unsecured bonds in yen:
2.45% bonds due 2001 ......... —9,500 —
3.05% bonds due 2003 ......... 8,700 10,000 70,161
3.05% bonds due 2002 ......... 15,100 20,000 121,774
3.15% bonds due 2006 ......... 20,000 20,000 161,290
2.175% bonds due 2002 ....... 8,200 9,900 66,129
2.65% bonds due 2007 ......... 10,000 10,000 80,645
Floating rate*
bonds due 2004 .................... 5,000 5,000 40,322
2.625% bonds due 2001 ....... —9,000 —
3.00% bonds due 2005 ......... 10,000 10,000 80,645
2.82% bonds due 2004 ......... 10,000 10,000 80,645
2.00% bonds due 2001 ......... 4,900 5,000 39,516
2.59% bonds due 2001 ......... —5,000 —
2.37% bonds due 2002 ......... —5,000 —
.............................................. 239,630 293,835 1,932,503
Less: Current portion ................. (42,789) (38,166) (345,072)
.............................................. ¥196,841 ¥255,669 $1,587,430
*Represents a rate linked to yen interest rate swap for 10 years (1.858% at the date of
issuance of the bonds).