Ricoh 2000 Annual Report Download - page 43

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Secured loans are collateralized by land, buildings and lease receivables with
a book value of ¥11,558 million ($112,214 thousand) as of March 31, 2000.
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 includ-
ing subsequent stock splits and shares subsequently issued at less than market
value.
The convertible bonds and some straight bonds outstanding as of March 31,
2000 are redeemable at the option of the Company at prices ranging from 102%
to 100% of the principal amount under certain conditions as provided in the ap-
plicable agreements.
Convertible bonds and the other bonds are subject to certain covenants such
as restrictions on dividends, earnings and certain additional secured indebted-
ness, as defined in the agreements. The Company presently estimates that none of
such covenants would be applicable to the outstanding bonds.
If all convertible bonds of the Company were converted as of March 31, 2000,
59,943 thousand shares of common stock would be issuable.
Certain loan agreements provide, among other things, that the lender may
request the Company to submit proposals for appropriations of earnings (includ-
ing payment of dividends) to the lender for its review and approval prior to pre-
sentation 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 agreements with each bank
which provide, among other things, that the banks may request additional securi-
ty for these loans if there is reasonable and probable cause and may treat any se-
curity 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 straight bonds
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 con-
form with the requirements of SFAS No. 76 “Extinguishment of Debt” and SFAS
No. 125 “Accounting for Transfers and Servicing of Financial Assets and Extin-
guishment of Liabilities”; therefore, the applicable obligations and cash deposits
(time deposits) are reflected in the accompanying balance sheets. The cash de-
posits are presented as cash deposits for assignment of debt securities as of March
31, 1999. In the year ended March 31, 2000, the bonds were redeemed and the
cash deposits were assigned to repay the bonds. Therefore, no cash deposits are
recorded in the balance sheets as of March 31, 2000.
The aggregate annual maturities of long-term indebtedness subsequent to
March 31, 2001 are as follows:
Thousands of
U.S. dollars
2002
2003
2004
2005
2006 and thereafter
Total
$1,189,097
486,563
396,912
274,175
643,175
$2,989,922
Millions of yen
¥ 122,477
50,116
40,882
28,240
66,247
¥ 307,962
Years ending March 31
10. PENSION AND RETIREMENT ALLOWANCES PLANS
The Company and certain of its subsidiaries have various trusteed contributory
and 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.