Ricoh 1999 Annual Report Download - page 46

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Secured loans are collateralized by land, buildings and lease receivables
with a book value of ¥21,634 million ($178,793 thousand) as of March 31,
1999.
The convertible bonds are convertible into common stock at the option
of the holders, currently at applicable conversion prices per share as listed in
the above table. These conversion prices are subject to adjustment in certain
events including subsequent stock splits and shares subsequently issued at less
than market value.
The convertible bonds and some straight bonds outstanding as of March
31, 1999 are redeemable at the option of the Company at prices ranging from
103% to 100% of the principal amount under certain conditions as provided
in the applicable agreements.
Convertible bonds and the other bonds are subject to certain covenants
such as restrictions on dividends, earnings and certain additional secured in-
debtedness, as defined in the agreements. The Company presently estimates
that none of such covenants would be applicable to the outstanding bonds.
On April 26, 1999, the conversion price of the 0.375% convertible
bonds payable in yen, due March 2001 and issued by a consolidated
subsidiary, was changed from ¥1,374.00 to ¥1,100.00.
If all convertible bonds of the Company were converted as of March 31,
1999, 60,428 thousand shares of common stock would be issuable.
On June 10, 1999, Ricoh Leasing Company, Ltd., a major subsidiary,
issued 0.9% and 1.17% unsecured straight bonds of ¥5,000 million ($41,322
thousand) and ¥10,000 million ($82,645 thousand) payable in yen, due June
10, 2003 and 2004, respectively.
Certain loan agreements provide, among other things, that the lender
may request the Company to submit proposals for appropriations of earnings
(including payment of dividends) to the lender for its review and approval
prior to presentation to the shareholders. The Company has never been
requested to submit such proposals for approval. In addition, as is customary
in Japan, substantially all of the bank borrowings are subject to general agree-
ments with each bank which provide, among other things, that the banks
may request additional security for these loans if there is reasonable and
probable cause and may treat any security furnished to the banks as well
as cash deposited as security for all present and future indebtedness. The
Company has never been requested to submit such additional security.
In March and September 1995 and March 1999, the Company entered
into agreements with the banks under which it assigned to the banks
outstanding obligations to make payment of principal and the 7% interest on
the straight bond aggregating to ¥50,000 million and made cash deposits
(earning interest of 1.5%) with the banks to fulfill such obligations.
These transactions do not conform with the requirements of SFAS No. 76,
“Extinguishment of Debt,”and SFAS No. 125 “Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities,” therefore,
the applicable obligations and cash deposits (time deposits) are reflected in
the accompanying balance sheets. The cash deposits are presented as lease
deposits and other as of March 31, 1998, and as cash deposits for assignment
of debt securities as of March 31, 1999.
The aggregate annual maturities of long-term indebtedness subsequent to
March 31, 2000 are as follows:
Thousands of
U.S. dollars
2001
2002
2003
2004
2005 and thereafter
Total
$ 529,264
981,992
426,893
216,579
693,041
$2,847,769
Millions of yen
¥ 64,041
118,821
51,654
26,206
83,858
¥ 344,580
Years ending March 31
10. PENSION AND RETIREMENT ALLOWANCES PLANS
The Company and certain of its subsidiaries have various trusteed
noncontributory employees pension fund (“EPF”) plans covering substan-
tially all of their employees. Under the plans, employees are entitled to
lump-sum payments at the time of termination or retirement, or to pension
payments. Under the terms of the domestic EPF plan, the Government
welfare pension insurance benefit is substituted and commingled with the
primary benefit provided by the plan.
The amounts of lump-sum or pension payments under the plans are
generally determined on the basis of length of service and remuneration at
the time of termination.
It is the Company’s policy to fund amounts required to maintain
sufficient plan assets to provide for accrued benefits based on a certain
percentage of wage and salary costs. The plan assets consist principally of
interest-bearing bonds and listed equity securities.