Canon 2008 Annual Report Download - page 81

79
The Company and certain of its subsidiaries have contributory
and noncontributory defi ned benefi t pension plans covering
substantiall
y
all o
f
their emplo
y
ees. Bene
fi
ts pa
y
able under the
plans are based on emplo
y
ee earnin
g
s and
y
ears o
f
service.
Certain foreign subsidiaries also have defi ned contribution
pension plans covering substantially all of their employees
.
E
ff
ective January 1, 2007, the Company and certain o
f
its
domestic subsidiaries amended their
f
unded de
fi
ned bene
fi
t
p
ension
p
lans. Under these funded defi ned benefi t
p
ension
p
lans,
the lifetime pension benefi t is based upon amounts payable
during an initial period a
f
ter retirement (the “guarantee period”)
and the subsequent period lastin
g
f
or the remainder o
f
the
retiree’s li
f
etime (the “post-
g
uarantee period”). The Compan
y
and certain of its domestic subsidiaries amended these
p
lans to
increase the duration of this guarantee period from 15 years to
20 years to re
fl
ect an increase in the average li
f
espan o
f
their
emplo
y
ees, resultin
g
in reduced amounts pa
y
able durin
g
each o
f
13. Emplo
y
ee Retirement and Severance Benefi ts
the
g
uarantee and post-
g
uarantee periods. As a result of these
changes, the projected benefi t obligation decreased by ¥101,620
million. In conjunction with these plan changes, the Company
and certain o
f
its domestic subsidiaries also have implemented
an un
f
unded retirement and severance plan and a de
fi
ned
contribution
p
ension
p
lan for certain future
p
ension benefi ts
attributable to employees’ future services
.
The amounts o
f
cost recognized
f
or the de
fi
ned contribution
pension plans o
f
the Compan
y
and certain o
f
its subsidiaries
f
or
t
h
e
y
ears en
d
e
d
Decem
b
er 31, 2008, 2007 an
d
2006 were
¥10,840 million
(
$119,121 thousand
)
, ¥10,262 million and
¥6,233 million, respectively
.
Obligations and
f
unded statu
s
Reconciliations of beginning and ending balances of the benefi t
obligations and the fair value of the plan assets are as follows
:
December 3
1
J
apanese p
l
ans Foreign p
l
an
s
M
illions o
f
ye
n
Thousands o
f
U.S.
d
o
ll
ar
s
Millions o
f
yen
T
housands o
f
U
.S.
d
o
ll
ars
2008 2007 2008 2008 2007 2008
Change in bene
fi
t obligations
:
Benefi t obligations at beginning of yea
r
¥ 493,478 ¥ 57
8,086
$ 5,422,835 ¥ 113,833 ¥ 11
0,
5
05
$ 1,250,912
Se
rv
ice
cost
20,786
20
,1
6
1 228,418 3,141 4,
0
1
6
34,516
I
nterest cost 12,253 11,88
8
134,648 4,991 4,947 54,846
Plan
p
artici
p
ants’ contributions —
—
— 1,460 1
,
61
3
16,044
A
m
e
n
d
m
e
n
ts
(204) (101,620
)
(2,242) (86)
—
(945)
A
ctuarial
(
gain
)
los
s
10,160
(
4,623
)
111,649 (4,521)
(
3,293
)
(49,681)
Bene
fi
ts pai
d
(14,488)
(
12,888
)
(159,209) (2,210)
(
3,177
)
(24,286)
A
c
q
u
i
s
i
t
i
o
n
—
2
,47
4
— —
—
—
Forei
g
n currenc
y
exc
h
an
g
e rate c
h
an
g
es
gyg g
—
—
— (38,140)
(
778
)
(419,120)
Benefi t obli
g
ations at end of
y
ear 521,985 4
93
,47
8
5,736,099 78,468 11
3
,
833
862,286
Chan
g
e in plan assets
:
F
air value of plan assets at be
g
innin
g
of
y
ea
r
511,450 5
20
,47
6
5,620,330 92,908
8
7,17
3
1,020,967
A
ctua
l
return on p
l
an assets (81,981)
(
15,796
)
(900,890) (8,453) 2,28
3
(92,890)
Emp
l
oyer contri
b
ution
s
14,716 17
,
51
0
161,714 8,317 4
,
21
0
91,396
Plan
p
artici
p
ants’ contributions —
—
— 1,460 1,
6
1
3
16,044
Bene
fi
ts pai
d
(14,315)
(
12,498
)
(157,308) (1,556)
(
2,242
)
(17,099)
A
cquisitio
n
— 1
,
75
8
— —
—
—
Forei
g
n currenc
y
exchan
g
e rate chan
g
es —
—
— (29,680)
(
129
)
(326,154)
F
air value of plan assets at end of
y
ea
r
429,870 511,45
0
4,723,846 62,996
92
,
908
692,264
Funded status at end o
f
year ¥ (92,115) ¥ 17
,
97
2
$ (1,012,253) ¥ (15,472) ¥
(
20,925
)
$ (170,022)