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68
CANON INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
December 31 Thousands of
Millions of yen U.S. dollars
2004 2003 2004
Change in benefit obligations:
Benefit obligations at beginning of year ¥752,390 766,452 $7,234,519
Service cost 26,571 29,024 255,490
Interest cost 19,108 20,806 183,731
Plan participants’ contributions 1,142 2,102 10,981
Amendments (2,781) (52,749) (26,741)
Actuarial gain (5,728) (3,398) (55,077)
Benefits paid (14,143) (12,484) (135,990)
Settlement on plan termination (6,482) —(62,327)
Transfer of substitutional portion of EPFs to the government (191,784) —(1,844,077)
Foreign currency exchange rate changes 3,957 630 38,048
Other (38) 2,007 (365)
Benefit obligations at end of year 582,212 752,390 5,598,192
Change in plan assets:
Fair value of plan assets at beginning of year 472,228 421,642 4,540,654
Actual return on plan assets 32,744 31,008 314,846
Employer contributions 31,018 29,944 298,250
Plan participants’ contributions 1,142 2,102 10,981
Benefit paid (14,143) (12,484) (135,990)
Settlement on plan termination (2,274) —(21,865)
Transfer of substitutional portion of EPFs to the government (104,992) —(1,009,539)
Foreign currency exchange rate changes 3,075 (20) 29,567
Other —36 —
Fair value of plan assets at end of year 418,798 472,228 4,026,904
Funded status (163,414) (280,162) (1,571,288)
Unrecognized actuarial loss 191,376 297,839 1,840,154
Unrecognized prior service cost (102,427) (107,360) (984,875)
Unrecognized net transition obligation being recognized over 22 years 4,300 4,644 41,346
Net amount recognized ¥(70,165) (85,039) $(674,663)
Amounts recognized in the consolidated balance sheets consist of:
Prepaid pension cost ¥3,142 2,515 $30,212
Accrued pension and severance cost (132,522) (238,001) (1,274,250)
Intangible assets 57 86 548
Accumulated other comprehensive income (loss) 59,158 150,361 568,827
Net amount recognized ¥(70,165) (85,039) $(674,663)
Reconciliations of beginning and ending balances of the
benefit obligations and the fair value of the plan assets are as
follows:
The accumulated benefit obligation for all defined benefit
plans was as follows:
December 31 Thousands of
Millions of yen U.S. dollars
2004 2003 2004
Accumulated benefit obligation ¥540,615 702,049 $5,198,221