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Financial Information:
Annual Report 2004
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|
Notes
to Consolidated Financial Statements |
| NSK Ltd. and Subsidiaries For the year ended March 31, 2004 |
|
8. Accrued Expenses and Other Current Liabilities
Inventories at March 31, 2004 and 2003 were as follows:
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|
|
|
|
| |
Millions of yen |
Thousands of
U.S. dollars |
|
| As of March 31 |
2004 |
2003 |
2004 |
|
| Finished products |
¥42,891 |
¥46,096 |
$404,632 |
| Work in process |
19,292 |
20,972 |
182,000 |
| Raw materials and supplies |
13,720 |
16,418 |
129,434 |
|
| |
¥75,905 |
¥83,487 |
$716,085 |
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9. Long-Term Debt
At March 31, 2004 and 2003, long-term debt consisted of the following:
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|
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Millions of yen |
Thousands of
U.S. dollars |
|
| As of March 31 |
2004 |
2003 |
2004 |
|
| Secured loans from banks, insurance companies
and others, due through |
| 2014 at interest rates ranging from 0.95 percent to 6.15
percent |
¥3,710 |
¥5,199 |
$35,000 |
| Unsecured loans from banks, insurance companies and others,
due through |
|
|
|
| 2023 at interest rates ranging from 0.72 percent to 16.0
percent |
60,598 |
58,326 |
571,679 |
| Unsecured yen convertible bonds: |
|
|
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| At an interest rate of 1.6 percent, due through 2005 |
16,989 |
16,989 |
160,274 |
| Unsecured yen bonds: |
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|
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| At interest rates ranging from 0.86 percent to 3.6 percent, |
|
|
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| due through 2010 |
90,000 |
100,000 |
849,057 |
|
| |
171,298 |
180,514 |
1,616,019 |
| Less current portion |
(39,157) |
(15,837) |
(369,406) |
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| |
¥132,141 |
¥164,677 |
$1,246,613 |
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Convertible bonds, unless previously redeemed, are convertible into shares
of common stock of the Company at the following
conversion price:
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|
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| 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, the 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, 2004
are summarized as follows:
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| For the years ending March 31 |
Millions of yen |
Thousands of
U.S. dollars |
|
| 2005 |
¥39,157 |
$369,406 |
| 2006 |
21,563 |
203,425 |
| 2007 |
25,718 |
242,623 |
| 2008 |
33,228 |
313,472 |
| 2009 and thereafter |
51,630 |
487,075 |
|
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¥171,298 |
$1,616,019 |
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The assets pledged as collateral for short-term debt, notes and accounts
payable and long-term debt at March 31, 2004
were as follows:
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|
|
|
| As of March 31, 2004 |
Millions of yen |
Thousands of
U.S. dollars |
|
| Investment securities |
¥322 |
$3,038 |
| Property, plant and equipment, at net book value |
9,404 |
88,717 |
|
| |
¥9,727 |
$91,764 |
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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, 2004 and 2003 for the Company’s and the
subsidiaries’ defined benefit plans:
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Millions of yen |
Thousands of
U.S. dollars |
|
| As of March 31 |
2004 |
2003 |
2004 |
|
| Retirement benefit obligation |
¥(134,145) |
¥(128,061) |
$(1,265,519) |
| Plan assets at fair value |
117,871 |
100,423 |
1,111,991 |
|
| Unfunded retirement benefit obligation |
(16,273) |
(27,637) |
(153,519) |
| Unrecognized plan assets |
(3,737) |
- |
(35,255) |
| Unrecognized actuarial gain or loss |
24,202 |
35,056 |
228,321 |
| Unrecognized prior service cost |
715 |
920 |
6,745 |
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| Net retirement benefit obligation |
4,906 |
8,338 |
46,283 |
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| Prepaid pension cost |
22,223 |
14,842 |
209,651 |
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| Accrued retirement benefits |
¥(17,316) |
¥(6,503) |
$(163,358) |
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The components of retirement benefit expenses for the years ended March 31,
2004 and 2003 are outlined as follows:
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Millions of yen |
Thousands of
U.S. dollars |
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| For the years ended March 31 |
2004 |
2003 |
2004 |
|
| Service cost |
¥5,449 |
¥4,838 |
$51,406 |
| Interest cost |
2,420 |
2,848 |
22,830 |
| Expected return on plan assets |
(1,775) |
(2,475) |
(16,745) |
| Amortization of actuarial gain or loss |
3,621 |
1,143 |
34,160 |
| Amortization of prior service cost |
177 |
175 |
1,670 |
| Other |
- |
151 |
- |
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| Total |
¥9,893 |
¥6,680 |
$93,330 |
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The assumptions used in accounting for the above plans were as follows:
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| For the years ended March 31 |
2004 |
2003 |
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| Discount rate |
Mainly 2.2% |
Mainly 2.2% |
| Expected rate of return on plan assets |
Mainly 2.2% |
Mainly 3.0% |
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