Honda 2007 Annual Report Download - page 105

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103
Honda investment policies for the domestic and foreign pension benefit are designed to maximize total returns that are avail-
able to provide future payments of pension benefits to eligible participants under accepted risks. Honda sets target assets allo-
cations for the individual asset categories based on the estimated returns and risks in the long future. Plan assets are invested
in individual equity and debt securities using the target assets allocation.
Obligations
The accumulated benefit obligations for all domestic defined benefit plans at March 31, 2006 and 2007 were ¥1,019,764 million
and ¥1,088,890 million ($9,224 million), respectively. The accumulated benefit obligations for all foreign defined benefit plans at
March 31, 2006 and 2007 were ¥303,509 million and ¥340,527 million ($2,885 million), respectively.
Cash flows
Honda expects to contribute ¥33,953 million to its domestic pension plans and ¥37,187 million to its foreign pension plans in
the year ending March 31, 2008.
Estimated future benefit Payment
The following table presents estimated future gross benefit payments:
Yen
(millions)
Japanese plans Foreign plans
2008 ¥040,130 ¥04,540
2009 42,885 5,138
2010 45,546 6,144
2011 43,660 7,178
2012 45,339 8,582
2013–2017 250,746 74,946
Certain of the Company’s subsidiaries in North America provide certain health care and life insurance benefits to retired
employees. Such benefits have no material effect on Honda’s financial position and results of operations.
14. Supplemental Disclosures of Cash Flow Information
U.S. dollars
Yen (millions)
(millions) (note 2)
2005 2006 2007 2007
Cash paid during the year for:
Interest ¥099,475 ¥134,609 ¥187,268 $1,586
Income taxes 159,041 282,986 351,225 2,975
During the fiscal year ended March 31, 2005, the Com-
pany retired shares totaling 46,000,000 shares at a cost of
¥216,371 million by offsetting with capital surplus of ¥190
million and unappropriated retained earnings of ¥ 216,181
million based on the resolution of board of directors.
During the year ended March 31, 2006, the Company
reissued certain of its treasury stock at fair value of ¥802
million to the minority shareholder of subsidiary, which the
Company made a wholly owned subsidiary, and the
Company retired shares totaling 11,000,000 shares at a cost
of ¥66,224 million by offsetting with capital surplus of ¥2 mil-
lion and unappropriated retained earnings of ¥ 66,221 million
based on the resolution of board of directors.
During the year ended March 31, 2007, the Company
reissued certain of its treasury stock at fair value of ¥18,521
million ($155 million) to the outside shareholder of affiliates to
obtain 100% share of these companies.