Omron 2005 Annual Report Download - page 75

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73
Balance at beginning of year ..................................................................................
Addition ...............................................................................................................
Utilization .............................................................................................................
Balance at end of year ............................................................................................
¥ 2,752
4,188
(3,787)
¥ 3,153
Millions of yen
2004
¥ 3,153
2,683
(3,527)
¥ 2,309
2005
$29,467
25,075
(32,963)
$21,579
Thousands of
U.S. dollars
2005
On May 11, 2005, the Company management declared a plan to
purchase the Company’s shares, subject to approval at the gener-
al meeting of shareholders. The execution of the plan is at the
Company’s discretion with a maximum limit of ¥10,000 million
($93,458 thousand), or 4,000,000 shares, for the period up to the
date of the June 2006 general meeting of shareholders.
19. Subsequent Events
tion currently available to both the Company and its legal counsel,
management of the Company believes that damages from such
lawsuits, if any, would not have a material effect on the consoli-
dated financial statements.
Concentration of Credit Risk
Financial instruments that potentially subject the Companies to
concentrations of credit risk consist principally of short-term cash
investments and trade receivables. The Companies place their
short-term cash investments with high-credit-quality financial
institutions. Concentrations of credit risk with respect to trade
receivables, as approximately 75% of total sales are concentrated
in Japan, are limited due to the large number of well-established
customers and their dispersion across many industries. The
Company normally requires customers to deposit funds to serve
as security for ongoing credit sales.
Guarantees
The Company provides guarantees for bank loans of other com-
panies. The guarantees for the other companies are made to
ensure that those companies operate with less finance costs. The
maximum payments in the event of default is ¥1,350 million
($12,617 thousand) at March 31, 2005. The carrying amounts of
the liabilities recognized under those guarantees at March 31,
2005 were immaterial.
Bank loans of ¥784 million ($7,327 thousand) of an unaffiliated
company were jointly and severally guaranteed by the Company
and six other unaffiliated companies. According to an agreement
between the seven companies, any loss on these guarantees is to
be borne equally among the companies.
Product Warranties
The Companies issue contractual product warranties under
which they generally guarantee the performance of products
delivered and services rendered for a certain period or term.
Changes in accrued product warranty cost for the year ended
March 31, 2005 and 2004 are summarized as follows: