Ricoh 2007 Annual Report Download - page 51

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ANNUAL REPORT 2007
To Our Shareholders and
Customers
Highlights
Corporate Governance Business Strategy
CSR
Environmental Management
Financial Section Brand Strategy
Secured loans are collateralized by land, buildings and lease receivables
with a book value of ¥3,186 million ($27,000 thousand) as of March
31, 2007.
All bonds outstanding as of March 31, 2007 are redeemable at the
option of Ricoh at 100% of the principal amounts under certain
conditions as provided in the applicable agreements.
Bonds are subject to certain covenants such as restrictions on certain
additional secured indebtedness, as defined in the agreements. Ricoh
presently is in compliance with such covenants as of March 31, 2007.
The Company issued Euro Yen Zero Coupon Convertible Bonds of
¥55,275 million ($468,432 thousand) in December 2006. Bondholders
are able to acquire common stock under certain circumstances. As of
March 31, 2007, the conversion price was ¥2,800 per share and 19,741
thousand shares would have been issued on conversion of all
convertible debt. The conversion price shall be adjusted for certain
events such as a stock split, consolidation of stock or issuance of stock at
less than the current market price of the shares.
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 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. Ricoh has never been requested to
submit such additional security.
The aggregate annual maturities of long-term indebtedness subsequent
to March 31, 2007 are as follows:
Thousands of
Years ending March 31 Millions of Yen U.S. Dollars
2008 ¥ 87,147 $ 738,534
2009 77,521 656,958
2010 70,149 594,483
2011 21,780 184,576
2012 66,571 564,161
2013 and thereafter 290 2,458
Total ¥323,458 $2,741,169
11. LONG-TERM INDEBTEDNESS
Long-term indebtedness as of March 31, 2006 and 2007 consists of the followings:
Thousands of
Millions of Yen U.S. Dollars
2006 2007 2007
Bonds-
0.87%, straight bonds, payable in yen, due March 2007 ¥ 35,000 ¥ – $ –
1.34%, straight bonds, payable in yen, due March 2009 25,000 25,000 211,864
0.73%, straight bonds, payable in yen, due June 2006 issued by a consolidated subsidiary 10,000 ––
0.70%, straight bonds, payable in yen, due June 2007 issued by a consolidated subsidiary 10,000 10,000 84,746
2.10%, straight bonds, payable in yen, due October 2009 issued by a consolidated subsidiary 10,000 10,000 84,746
1.11%, straight bonds, payable in yen, due March 2010 issued by a consolidated subsidiary 10,000 10,000 84,746
1.30%, straight bonds, payable in yen, due December 2010 issued by a consolidated subsidiary – 9,999 84,737
Euro Yen Zero Coupon Convertible Bonds, due December 2011 – 55,256 468,271
Medium-term notes, 0.17% weighted average, due through 2015 issued by a consolidated subsidiary 10,000 ––
Total bonds 110,000 120,255 1,019,110
Unsecured loans-
Banks and insurance companies,1.48% weighted average, due through 2012 183,956 200,983 1,703,246
Secured loans-
Banks, insurance companies and other financial institution, 0.83% weighted average, due through 2013 795 597 5,059
Capital lease obligations (see Note 2(j)) 3,453 1,623 13,754
Total 298,204 323,458 2,741,169
SFAS 133 fair value adjustment 553 517 4,381
Less- Current maturities included in current liabilities (103,131) (87,174) (738,763)
¥195,626 ¥236,801 $2,006,788