Ricoh 2009 Annual Report Download - page 57

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ANNUAL REPORT 2009
To Our Shareholders
and Customers
Fiscal 2009
Highlights
Progress of the
16th MTP
Creating New
Customer Value
RICOH
Milestones
Sustainable Environ-
mental Management
Corporate Social
Responsibility
Financial
Section
Secured loans are collateralized by land, buildings and lease
receivables with a book value of ¥14,664 million ($148,121
thousand) as of March 31, 2009.
All bonds outstanding as of March 31, 2009 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 was in compliance with such covenants as of
March 31, 2009.
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, 2009, 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 with respect to
any material borrowings.
The aggregate annual maturities of long-term indebtedness
subsequent to March 31, 2009 are as follows:
12. PENSION AND RETIREMENT ALLOWANCE PLANS
The Company and certain of its subsidiaries have various
contributory and noncontributory employees’ pension fund plans in
trust covering substantially 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.
Contributions to these plans have been made to provide future
pension payments in conformity with an actuarial calculation
determined by the current basic rate of pay.
On March 31, 2007, Ricoh adopted the recognition and disclosure
provisions of SFAS No.158, “Employers’ Accounting for Defined
Benefit Pension and Other Postretirement Plans,” for the
measurement of pension liabilities. Upon adoption, Ricoh
recognized the funded status (i.e., the difference between the fair
value of plan assets and the projected benefit obligations) of its
pension fund plans in the consolidated balance sheets as of March
31, 2007, with a corresponding adjustment in initially applying
SFAS 158 to accumulated other comprehensive income, net of tax.
The adjustment to accumulated other comprehensive income at
adoption represents the unrecognized net actuarial loss,
unrecognized prior service cost, and unrecognized transition
obligations, all of which were previously netted against the plans’
funded status in the consolidated balance sheets pursuant to the
provisions of SFAS 87. These amounts will be subsequently
recognized as net periodic benefit cost pursuant to Ricoh’s
historical accounting policy for amortizing such amounts.
Furthermore, actuarial gains and losses that arise in subsequent
periods and are not recognized as net periodic benefit cost in the
same periods will be recognized as a component of other
comprehensive income (loss). Those amounts will be subsequently
recognized as a component of total net periodic benefit cost on the
same basis as the amounts recognized in accumulated other
comprehensive income (loss) at adoption of SFAS 158.
For periods prior to the year ended March 31, 2009, Ricoh used a
December 31 measurement date for determining benefit obligations
and fair value of plan assets. Ricoh adopted the measurement date
provisions of SFAS No. 158 as of March 31, 2009. The adoption of
the measurement date provisions resulted in adjustments to
decrease retained earnings by ¥ 643 million, and increase other
comprehensive loss by ¥ 6 million as of April 1, 2008.
Thousands of
Years ending March 31 Millions of Yen U.S. Dollars
2010 ¥ 85,505 $ 863,687
2011 98,556 995,515
2012 146,242 1,477,192
2013 56,933 575,081
2014 158,304 1,599,030
2015 and thereafter 49,232 497,293
Total ¥594,772 $6,007,798