AR2017

85/90

26. Short-Term loans payable, Long-Term loans payable and Other Interest-Bearing DebtsShort-term bank loans are represented generally by 30-day or 90-day notes issued by the Company and its consolidated subsidiaries to banks at annual interest rates from 0.51% to 2.05% at March 31, 2017 and from 0.27% to 0.66% at March 31, 2016.Short-term and long-term loans payable as of March 31, 2017 and 2016 consisted of the following: Millions of yen Thousands ofU.S. dollars201720162017Short-term loans payable¥   641¥1,695$  5,720Current portion of long-term loans payable3,051—27,202Long-term loans payable17,795—158,616¥21,488¥1,695$191,539Other interest-bearing debts as of March 31, 2017 and 2016 consisted of the following: Millions of yen Thousands ofU.S. dollars201720162017Short-term lease obligation¥201¥196$1,799Long-term lease obligation2773492,469Planned repayment amounts after the balance sheet date (March 31, 2017) for long-term loans payable and lease obligation are as follows:Millions of yenThousands of U.S. dollars2017Over 1 year within 2 yearsOver 2 years within 3 yearsOver 3 years within 4 yearsOver 4 years within 5 yearsOver 1 year within 2 yearsOver 2 years within 3 yearsOver 3 years within 4 yearsOver 4 years within 5 yearsLong-term loans payable¥3,058¥3,058¥9,321¥1,234$27,263$27,263$83,089$11,000Lease obligation157872081,4037801857527. Subsequent Event1. The following distribution of retained earnings was approved at a meeting of the board of directors held on May 8, 2017.Millions of yen Thousands ofU.S. dollars2017Cash dividends (¥33 per share)¥2,381$21,2222. About rationalization of management at a consolidated subsidiary in the United StatesAt a meeting of the board of directors held on June 22, 2017, the Company resolved to undertake a fundamental management rationalization to improve the profitability of MADICO, INC. (“Madico”), its wholly owned consolidated subsidiary in the United States.(1)Reasons to rationalize managementMadico maintains manufacturing bases in Massachusetts and Florida, the United States and produces and distributes functional specialty films such as window films and PV backsheets. However, Madico is facing in a difficulty to secure profits due to a decline in orders and a rapid fall in prices along with the rapid commoditization of PV backsheets that had led the performance of the business, and a significant operating losses has been recorded since 2012. Despite the continuous work on rationalizing management until now, Madico has not achieved a great and expected effect and it is difficult to recover from the current situation of recording operating losses. Consequently, the decision to undertake a fundamental management rationalization has been made including the withdrawal from PV backsheets business.(2)Overview of rationalization of management1Withdrawal from PV backsheets business Madico will completely withdraw from this business that they manufacture and sell at the Massachusetts base.2Restructuring of production system Madico will integrate our production bases in the base of Florida, and will convert the Massachusetts base as a research and development center for new product development.3Employee reduction Madico will reduce headcounts, mainly from employees at the Massachusetts base.(3)Impact on the business resultsThe Company is currently examining the impact of mentioned above on its business results.83LINTEC ANNUAL REPORT 2017