Canon 2002 Annual Report Download - page 63

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61
(10) Trade Payables
Trade payables are summarized as follows:
Thousands of
Millions of yen U.S. dollars
2002 2001 2002
Notes ¥62,894 86,432 $ 524,117
Accounts 345,570 268,014 2,879,750
¥408,464 354,446 $ 3,403,867
Thousands of
Millions of yen U.S. dollars
2002 2001 2000 2002
Service cost — benefits earned during the year ¥39,206 36,553 31,712 $ 326,717
Interest cost on projected benefit obligation 19,270 20,341 16,512 160,583
Expected return on plan assets (14,523) (13,636) (9,834) (121,025)
Net amortization 11,841 8,755 5,016 98,675
¥55,794 52,013 43,406 $ 464,950
Weighted-average assumptions:
Discount rate 2.7% 2.7% 3.0%
Assumed rate of increase in future compensation levels 3.4% 3.3% 2.1%
Expected long-term rate of return on plan assets 3.5% 3.5% 4.0%
(11)
Employee Retirement and Severance Benefits
The Company and certain of its subsidiaries have contributory
and noncontributory defined benefit plans covering substantially
all employees after one year of service. Other subsidiaries
sponsor unfunded retirement and severance plans. Benefits
payable under the plans are based on employee earnings and
years of service. The contributory plans mainly represent the
Employees’ Pension Fund plans (“EPFs”), composed of the
substitutional portions based on the pay-related part of the old
age pension benefits prescribed by the Welfare Pension
Insurance Law in Japan and the corporate portions based on
contributory defined benefit pension arrangements established
at the discretion of the Company and its subsidiaries.
Management considers that substitutional portions of the EPFs,
which are administered by a board of trustees composed of
management and labor representatives, represent welfare
pension plans carried on behalf of the Japanese government.
These contributory and noncontributory plans are funded in
conformity with the funding requirements of applicable
Japanese governmental regulations.
Net periodic benefit cost for Canon’s employee retirement
and severance defined benefit plans for the years ended
December 31, 2002, 2001 and 2000 consisted of the
following components: