Pioneer 2009 Annual Report Download - page 38

PIONEER CORPORATION36
At March 31, 2009 and 2008, the following assets were pledged as collateral for short-term borrowings and long-term debt of
the Group:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Receivables –¥ 276 –
Finished products ¥11,440 –$116,735
Building and structures 31,473 2,586 321,153
Land 24,366 4,606 248,632
Investments securities 4,615 –47,092
Total ¥71,894 ¥7,468 $733,612
The Company has revolving credit facility contract totaling
¥70,000 million ($714,286 thousand) with five banks as of
March 31, 2009, out of which loan payable outstanding
amounted to ¥57,700 million ($588,776 thousand). These
include certain financial covenants which require the Company
to maintain certain levels of equity and operating income. Also,
the Company’s business performance for the year ended
March 31, 2009 comes into conflict with financial covenants
stipulated by loan agreements with multiple banks. However,
the banks have agreed to maintain their existing loans to
Pioneer in recognition of the Company’s situation. Furthermore,
Pioneer has received additional loans chiefly from its main
banks, which have pledged their intention to continue providing
financial support to the Company.
Although the revolving credit facility contract expired on
May 19, 2009, the amount of the loan payable outstanding
described above is loan payable balance which will expire
between July 21 and July 27 based on the contracts. The
Company is currently negotiating new credit facilities with
the banks.
7. RETIREMENT AND PENSION PLANS
The Company and major domestic subsidiaries have non-
contributory defined benefit pension plans which cover
substantially all of their employees. The benefits are in the form
of annuity payments and/or lump-sum payments and are
determined based on the sum of cumulative points. The points
are accumulated based on years of service, job class and
conditions under which termination occurs. The Company’s
policy is to fund amounts required to maintain sufficient plan
assets to provide for accrued benefits, subject to the limitation
on deductibility imposed by the Japanese income tax laws.
The Company also sponsors a domestic non-contributory
defined-benefit Corporate Pension Fund (“CPF”) under the
Defined Benefit Corporate Pension Law of Japan, which
covers substantially all of its Japanese employees. The
benefits are determined based on the sum of cumulative
points accumulated based on years of service, job class and
conditions under which termination occurs.
Substantially all of the employees of U.S. and European
subsidiaries are covered by defined benefit pension plans.
Under such plans, the related cost of benefit is funded or
accrued. The benefits are based on the level of salary at
retirement or earlier termination of employment, the years of
service and conditions under which termination occurs.
Certain other foreign subsidiaries sponsor defined contribution
pension plans or lump-sum payment plans.