|
 |
Financial Information:
Annual Report 2003
| Notes
to Consolidated Financial Statements |
NSK Ltd. and Subsidiaries
For the year ended March 31, 2003
| 8. Accrued
Expenses and Other Current Liabilities |
 |
At March 31, 2003 and 2002, accrued expenses and other current
liabilities consisted of the following:
| Millions
of yen |
Thousands
of
U.S. dollars |
| As
of March 31 |
2003 |
2002 |
2003 |
| Accrued bonuses |
¥8,432 |
¥6,628 |
$70,267 |
| Dividends payable |
1,370 |
1,376 |
11,417 |
| Other |
23,209 |
25,195 |
193,408 |
|
| |
¥33,012 |
¥33,200 |
$275,100 |
|
| 9. Long-Term
Debt |
|
At March 31, 2003 and 2002, long-term debt consisted of the
following:
| Millions
of yen |
Thousands
of
U.S. dollars |
| As
of March 31 |
2003 |
2002 |
2003 |
| Secured loans from banks, insurance companies and others,
due through 2014 at interest rates ranging from 0.95 percent
to 7.6 percent |
¥5,199 |
¥6,391 |
$43,325 |
| Unsecured loans from banks, insurance companies and others,
due through 2022 at interest rates ranging from 0.72 percent
to 17.4 percent |
58,326 |
55,859 |
486,050 |
Unsecured yen convertible bonds:
At an
interest rate of 1.6 percent, due through 2005
|
16,989 |
16,989 |
141,575 |
Unsecured yen bonds:
At interest rates
ranging from 0.86 percent to 3.6 percent, due through
2010 |
100,000 |
100,000 |
833,333 |
|
| |
180,514 |
179,239 |
1,504,283 |
| Less current portion |
(15,837) |
(25,332) |
(131,975) |
|
| |
¥164,677 |
¥153,906 |
$1,372,308 |
|
Convertible bonds, unless previously redeemed, are convertible
into shares of common stock of the Company at the following conversion
prices:
| Convertible
bonds |
Conversion
price
per share |
Conversion
period |
| 1.6 percent (Series 21) in yen, due 2005 |
¥1,370.00 |
December 1, 1989 -March 30, 2005 |
|
Under the terms of the trust deeds, each conversion price
is subject to adjustment in certain cases which include stock
splits. Sufficient shares of common stock are reserved for the
conversion of all outstanding convertible bonds.
The aggregate annual maturities of long-term debt subsequent
to March 31, 2003 are summarized as follows:
| For the years ending March
31 |
Millions
of yen |
Thousands
of
U.S. dollars |
| 2004 |
¥15,837 |
$131,975 |
| 2005 |
39,741 |
331,175 |
| 2006 |
21,132 |
176,100 |
| 2007 |
23,681 |
197,342 |
| 2008 and thereafter |
80,121 |
667,675 |
|
| |
¥180,514 |
$1,504,283 |
|
The assets pledged as collateral for short-term debt, notes and
accounts payable and long-term debt at March 31, 2003 were as
follows:
| As of March 31, 2003 |
Millions
of yen |
Thousands
of
U.S. dollars |
| Investment securities |
¥153 |
$1,275 |
| Property, plant and equipment, at net book value |
9,716 |
80,967 |
| Other |
22 |
183 |
|
| |
¥9,893 |
$82,442 |
|
| 10. Retirement
Benefit Plans |
|
The Company and its domestic subsidiaries have defined benefit
plans, i.e., tax-qualified pension plans and lump-sum payment
plans, covering substantially all employees who are entitled to
lump-sum or annuity payments, the amounts of which are determined
by reference to their basic rates of pay, length of service, and
the conditions under which termination occurs. Certain foreign
subsidiaries also have defined benefit pension plans.
The following tables set forth the funded and accrued status
of the plans, and the amounts recognized in the consolidated balance
sheets as of March 31, 2003 and 2002 for the Company‘s and
the subsidiaries‘ defined benefit plans:
| Millions
of yen |
Thousands
of
U.S. dollars |
| As
of March 31 |
2003 |
2002 |
2003 |
| Retirement benefit obligation |
¥(128,061) |
¥(119,300) |
$(1,067,175) |
| Plan assets at fair value |
100,423 |
93,587 |
836,858 |
|
| Unfunded retirement benefit obligation |
(27,637) |
(25,713) |
(230,308) |
| Unrecognized actuarial gain or loss |
35,056 |
11,472 |
292,133 |
| Unrecognized prior service cost |
920 |
1,099 |
7,667 |
|
| Net retirement benefit obligation |
¥8,338 |
¥(13,141) |
$69,483 |
|
| Prepaid pension cost |
¥14,842 |
¥ - |
$123,683 |
|
| Accrued retirement benefits |
¥(6,503) |
¥(13,141) |
$(54,192) |
|
The components of retirement benefit expenses for the years
ended March 31, 2003 and 2002 are outlined as follows:
| Millions
of yen |
Thousands
of
U.S. dollars |
| For
the years ended March 31 |
2003 |
2002 |
2003 |
| Service cost |
¥4,838 |
¥5,061 |
$40,317 |
| Interest cost |
2,848 |
2,710 |
23,733 |
| Expected return on plan assets |
(2,475) |
(2,176) |
(20,625) |
| Amortization of actuarial gain or loss |
1,143 |
470 |
9,525 |
| Amortization of prior service cost |
175 |
223 |
1,458 |
| Other |
151 |
- |
1,258 |
|
| Total |
¥6,680 |
¥6,289 |
$55,667 |
|
The assumptions used in accounting for the above plans
were as follows:
| For
the years ended March 31 |
2003 |
2002 |
| Discount rate |
Mainly 2.2% |
Mainly 3.0% |
| Expected rate of return on plan assets |
Mainly 3.0% |
Mainly 3.0% |
|
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