Epson 2007 Annual Report Download - page 73

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71
Annual Report 2007
10. Goodwill
Epson had goodwill and negative goodwill as at March 31, 2006 and 2007. Negative goodwill was recorded in
other long-term liabilities account after being offset against goodwill. The amount of negative goodwill as at March
31, 2006 was ¥3,968 million. The amounts of goodwill and negative goodwill before offsetting as at March 31, 2007
were as follows:
Thousands of
Millions of yen U.S. dollars
Goodwill ¥256 $ 2,169
Negative goodwill 4,621 39,144
11. Pension and severance costs
The Company and its Japanese subsidiaries maintain corporate defined benefit pension plans and defined contribu-
tion pension plans covering the majority of their employees.
Some of the Company’s Japanese subsidiaries maintain tax qualified pension plans that are non-contributory
defined benefit pension plans. These companies contribute amounts required to maintain sufficient plan assets to
provide for accrued benefits, subject to limitations on expense deductibility under Japanese income tax laws.
The funded status of these plans at March 31, 2006 and 2007 was as follows:
Thousands of
Millions of yen U.S. dollars
March 31 March 31,
2006 2007 2007
Projected benefit obligations ¥202,922 ¥218,077 $1,847,327
Plan assets at fair value 191,883 203,930 1,727,488
Unfunded status 11,039 14,147 119,839
Unrecognized items:
Prior service cost reduction from plan amendment 7,441 6,449 54,629
Actuarial gains 7,208 3,600 30,496
Accrued pension and severance costs — net 25,688 24,196 204,964
Prepaid pension cost 5,709 1,360 11,521
Accrued pension and severance costs ¥ 31,397 ¥25,556 $ 216,485