Pioneer 2011 Annual Report Download - page 39

Pioneer Corporation Annual Report 2011 37
not bear interest. The stock acquisition rights were
not transferable separately from the Bonds. The
Bonds were traded on the London Stock Exchange’s
market for listed securities. The Bonds were issued
in the denomination of ¥5 million each and each
bondholder was entitled to exercise the stock
acquisition right from April 1, 2006 until February
18, 2011 (unless previously redeemed) into com-
mon stock at the defined conversion price. The
original conversion price of ¥4,022 was adjusted to
¥3,963.3 in December 2007, and was subject to
further adjustment in certain events in the future.
Market price of common stock at the date of issu-
ance of the Bonds was ¥3,220.
The Company redeemed all the outstanding
Bonds at 100% of their principal amount on March
4, 2011.
At March 31, 2011 and 2010, the following assets were pledged as collateral for short-term borrowings and
long-term debt of the Group:
Thousands of
Millions of Yen U.S. Dollars
2011 2010 2011
Finished products ¥ 7,744 ¥ 6,414 $ 93,301
Building and structures 18,018 23,970 217,084
Land 15,794 16,812 190,289
Investment securities 9,500 13,010 114,458
Total ¥ 51,056 ¥ 60,206 $ 615,132
Long-term debt amounting to ¥80,881 million
($974,470 thousand) (in which current portion of
long-term debt was ¥35,035 million ($422,108
thousand)) and ¥89,430 million (in which current
portion of long-term debt was ¥2,353 million) at
March 31, 2011 and 2010, respectively, was bor-
rowed by the Company and Tohoku Pioneer Cor-
poration in accordance with the syndicated loan
agreement contracted with the banks on March 29,
2010. This agreement includes certain financial
covenants which require the Company to maintain
certain levels of equity on consolidated and non-
consolidated basis and certain level of operating
income on consolidated basis.
8. Retirement and Pension Plans
The Company and major domestic subsidiaries
have non-contributory defined benefit pension
plans which cover substantially all of their employ-
ees. The benefits are in the form of annuity pay-
ments and/or lump-sum payments and are deter-
mined 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 Group’s policy is to fund amounts
required to maintain sufficient plan assets to pro-
vide for accrued benefits, subject to the limitation
on deductibility imposed by the Japanese income
tax laws. The Group 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 deter-
mined based on the sum of cumulative points accu-
mulated 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 ben-
efit 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 ear-
lier 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.
Notes to Consolidated Financial Statements
Annual maturities of long-term debt and long-term capital lease obligations as of March 31, 2011 for the
next five years and thereafter were as follows:
Thousands of
Years ending March 31 Millions of Yen U.S. Dollars
2012 ¥ 35,887 $ 432,373
2013 46,590 561,326
2014 590 7,109
2015 40 482
2016 30 361
2017 and thereafter — —
Total ¥ 83,137 $ 1,001,651