Ricoh 2008 Annual Report Download - page 51

50
ANNUAL REPORT 2008
To Our Shareholders
and Customers
Fiscal 2008 Highlights
Fiscal 2008 Milestones 16th Mid-Term
Management Plan
Corporate Governance /
CSR
Financial Section
Sustainable Environmental
Management
Secured loans are collateralized by land, buildings and lease
receivables with a book value of ¥3,200 million ($32,000 thousand)
as of March 31, 2008.
All bonds outstanding as of March 31, 2008 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, 2008.
The Company issued Euro Yen Zero Coupon Convertible Bonds of
¥55,275 million in December 2006. Bondholders are able to
convert their holdings into common stock under certain
circumstances. As of March 31, 2008, 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
11. LONG-TERM INDEBTEDNESS
Long-term indebtedness as of March 31, 2007 and 2008 consists of the followings:
Thousands of
Millions of Yen U.S. Dollars
2007 2008 2008
Bonds-
1.34%, straight bonds, payable in yen, due March 2009 ¥ 25,000 ¥ 25,000 $ 250,000
0.70%, straight bonds, payable in yen, due June 2007 issued by a consolidated subsidiary 10,000 – –
2.10%, straight bonds, payable in yen, due October 2009 issued by a consolidated subsidiary 10,000 10,000 100,000
1.11%, straight bonds, payable in yen, due March 2010 issued by a consolidated subsidiary 10,000 10,000 100,000
1.30%, straight bonds, payable in yen, due December 2010 issued by a consolidated subsidiary 9,999 9,999 99,990
Euro Yen Zero Coupon Convertible Bonds, due December 2011 55,256 55,202 552,020
Total bonds 120,255 110,201 1,102,010
Unsecured loans-
Banks and insurance companies,1.66% weighted average, due through 2012 200,983 196,353 1,963,530
Secured loans-
Banks, insurance companies and other financial institution, 0.32% weighted average, due through 2013 597 465 4,650
Capital lease obligations (see Note 2(j)) 1,623 1,177 11,770
Total 323,458 308,196 3,081,960
SFAS 133 fair value adjustment 517 392 3,920
Less - Current maturities included in current liabilities (87,174) (82,658) (826,580)
Total ¥236,801 ¥225,930 $2,259,300
10. SHORT-TERM BORROWINGS
Short-term borrowings as of March 31, 2007 and 2008 consist of the following:
Weighted average Thousands of
interest rate Millions of Yen U.S. Dollars
2007 2008 2007 2008 2008
Borrowings, principally from banks 2.4% 1.3% ¥21,682 ¥ 5,599 $ 55,990
Commercial paper 3.7 2.3 69,991 67,070 670,700
Medium-Term Notes - 3.5 - 3,114 31,140
¥91,673 ¥75,784 $757,840
These short-term borrowings included borrowings, principally from
banks, commercial paper and medium-term notes denominated in
foreign currencies amounting to ¥57,480 million and ¥41,413
million ($414,130 thousand) as of March 31, 2007 and 2008,
respectively.
The Company and certain of its subsidiaries enter into the contracts
with financial institutions regarding lines of credit and overdrawing.
Those same financial institutions hold the issuing programs of
commercial paper and medium-term notes. Ricoh had aggregate
lines of credit of ¥806,526 million and ¥784,645 million
($7,846,450 thousand) as of March 31, 2007 and 2008,
respectively. Unused lines of credit amounted to ¥693,791 million
and ¥675,959 million ($6,759,590 thousand) as of March 31, 2007
and 2008, respectively, of which ¥237,854 million and ¥232,023
million ($2,320,230 thousand) related to commercial paper and
¥129,855 million and ¥101,957 million ($1,019,570 thousand)
related to medium-term notes programs at prevailing interest rates
and the unused portion is available for immediate borrowings.