Toshiba 2006 Annual Report Download - page 74

Certain of the secured loan agreements contain provisions, which permit the lenders to require additional collateral.
Substantially all of the unsecured loan agreements permit the lenders to require collateral or guarantors for such loans.
Certain of the secured and unsecured loan agreements require prior approval by the banks and trustees before any distribu-
tions (including cash dividends) may be made from current or retained earnings.
Assets pledged as collateral for long-term debt at March 31, 2006 were property, plant and equipment with a book value of
¥14,353 million ($122,675 thousand).
The aggregate annual maturities of long-term debt, excluding those of capital lease obligations are as follows:
Thousands of
Year ending March 31 Millions of yen U.S. dollars
2007 ¥150,197 $ 1,283,735
2008 89,818 767,675
2009 115,588 987,932
2010 174,536 1,491,761
2011 72,558 620,154
Thereafter 138,405 1,182,949
¥741,102 $ 6,334,206
10. ISSUANCE OF CONTINGENTLY CONVERTIBLE BOND
In July, 2004, Toshiba Corporation issued ¥50,000 million Zero Coupon Convertible Bonds due 2009 (the “2009 Bonds”)
and ¥100,000 million Zero Coupon Convertible Bonds due 2011 (the “2011 Bonds”).
The bonds include stock acquisition rights which entitle bondholders to acquire common stock under certain circum-
stances, and are exercisable on and after August 4, 2004 up to, and including, July 7, 2009 (in the case of the 2009 Bonds) and
up to, and including, July 7, 2011 (in the case of the 2011 Bonds).
The initial conversion prices are ¥587 per share (in the case of the 2009 Bonds) and ¥542 (in the case of the 2011 Bonds),
subject to adjustment for certain events such as a stock split, consolidation of stock or issuance of stock at a consideration per
share which is less than the current market price.
(Conditions allowing exercise of stock acquisition rights)
In the case that as of the last trading day of any calendar quarter, the closing
price of the shares for any 20 trading days in a period of 30 consecutive
trading days ending on the last trading day of such quarter is more than
120% of the conversion price in effect on each such trading day.
At any time after the closing price of the shares on at least one trading
day is more than 120% of the conversion price in effect on each such
trading day.
The additional 85,178,875 shares and 184,501,845 shares relating to the potential conversion of the 2009 Bonds and the
2011 Bonds were included in the diluted net income per share calculations for the year ended March 31, 2006 and 2005.
11. ACCRUED PENSION AND SEVERANCE COSTS
All employees who retire or are terminated are usually entitled to lump-sum severance indemnities or pension benefits deter-
mined by reference to their current basic rate of pay, length of service and conditions under which their employment termi-
nates. The obligation for the severance indemnity benefit is provided for through accruals, funding of tax-qualified non-con-
tributory pension plans and the corporate pension plan.
The Company had Employees’ Pension Fund (“EPF”) Plans, which were contributory defined benefit pension plans
under the Japanese Welfare Pension Insurance Law (“JWPIL”). These plans were composed of a substitutional portion
which was the obligation related to the government-defined benefit prescribed by JWPIL, and a corporate portion based on
a contributory defined benefit arrangement established at the discretion of Toshiba Corporation and these subsidiaries.
Among the EPF Plans that the Company participated in, certain subsidiaries’ EPF Plans were reorganized and became cor-
porate pension plans under the Japanese Defined Benefit Corporate Pension Law during the year ended March 31, 2006 and
2005. The Toshiba EPF plan was reorganized and became corporate pension plans during the year ended March 31, 2004.
The period prior to (but not including) July
21, 2008 (in the case of the 2009 Bonds) or
July 21, 2010 (in the case of the 2011 Bonds)
The period on or after July 21, 2008 (in the
case of the 2009 Bonds) or July 21, 2010 (in
the case of the 2011 Bonds)
Notes to Consolidated Financial Statements
Toshiba Corporation and Subsidiaries
March 31, 2006