Konica Minolta 2004 Annual Report Download - page 52

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On February 1, 2004, the Ministry of Health, Labour and Welfare
permitted the substitutional portion of the Konica Welfare Pension Fund to
be returned to the government, and the remaining portion of the Fund
was integrated into a CDBP.
On March 1, 2004, the Ministry of Health, Labour and Welfare per-
mitted that the substitutional portion of the Minolta Welfare Pension Fund
to be returned to the government, and the remaining portion of the Fund
was integrated into a CDBP. A portion of the Minolta lump-sum payment
plan was transferred to a CDBP on the same date.
On April 1, 2004, a portion of the Minolta lump-sum payment plan
was transferred to a defined contribution pension plan.
The reserve for retirement benefits as of March 31, 2004 and 2003
are analyzed as follows:
Thousands of
Millions of yen U.S. dollars
2004 2003 2004
a.Retirement benefit obligations ¥(138,418) ¥(79,163) $(1,309,660)
b.Plan assets 72,427 34,853 685,278
c. Unfunded retirement benefit
obligations (a+b) (65,991) (44,309) (624,383)
d.Unrecognized transition amounts 521 2,391 4,930
e.Unrecognized actuarial differences 14,425 19,645 136,484
f. Unrecognized prior service costs (11,808) (65) (111,723)
g.Net amount on consolidated
balance sheets (c+d+e+f) (62,853) (22,337) (594,692)
h. Prepaid pension costs 2,061 1,965 19,500
i. Accrued retirement benefits (g–h) ¥ (64,915) ¥(24,303) $ (614,202)
Notes: 1. The Company and certain of its consolidated subsidiaries amended their
welfare pension fund plans and tax-qualified pension plans in order to
reduce their benefit payments. In addition, as described above, they
changed some of the pension plans and transferred certain funds between
the plans. As a result of these transactions, prior service costs were
generated.
2. Some subsidiaries adopt a simplified method for the calculation of benefit
obligation.
3. The transition from a portion of the Minolta lump-sum payment plan to a
defined contribution pension plan resulted in the following changes at
March 31, 2004:
Thousands of
Millions of yen U.S. dollars
Decrease of the retirement benefit
obligations ¥4,721 $44,668
Unrecognized actuarial differences (769) (7,276)
Unrecognized prior service costs 658 6,226
Decrease of accrued retirement benefits ¥4,610 $43,618
4. The transition from a portion of the Konica lump-sum payment plan to a
defined contribution pension plan resulted in the following changes at
March 31, 2003:
Thousands of
Millions of yen U.S. dollars
Decrease of the retirement benefit
obligations ¥6,182 $58,492
Unrecognized actuarial differences (371) (3,510)
Decrease of accrued retirement benefits ¥5,810 $54,972
The assets to be transferred to the defined contribution pension plan
equal ¥4,790 million and will be transferred over 4 years. The amount
of ¥4,790 million is recorded as accrued expenses and other long-term
liabilities at March 31, 2004. The assets to be transferred from the
Konica lump-sum payment plan to a defined contribution plan was
recorded as other long-term liabilities at March 31, 2003.
Net pension expenses related to the retirement benefits for the year
ended March 31, 2004 and 2003 are as follows:
Thousands of
Millions of yen U.S. dollars
2004 2003 2004
a.Service costs ¥ 5,645 ¥ 4,776 $ 53,411
b.Interest costs 2,670 2,975 25,263
c. Expected return on plan assets (358) (545) (3,387)
d.Amortization of transition amounts 1,540 1,325 14,571
e.Actuarial differences that are
accounted for as expenses 1,968 1,285 18,620
f. Prior service costs that are
accounted for as expenses (519) (156) (4,911)
g.Retirement benefit costs
(a+b+c+d+e+f) 10,946 9,662 103,567
h. Gain on transfer to the government
of the substitutional portion —(8,081) —
i. Loss on the transition to defined
contribution plans from defined
benefit plans 180 2,993 1,703
j. Contribution to defined contribution
pension plans 1,488 —14,079
Total (g+h+i+j) ¥12,615 ¥ 4,574 $119,359
Note: Retirement allowance costs of consolidated subsidiaries using the simplified
method are included in “a. Service costs.”
Assumptions used in calculation of the above information are as
follows:
2004 2003
a. Method of attributing the retirement Straight-line Straight-line
benefits to periods of service basis basis
b. Discount rate Mainly 2.5% Mainly 3.0%
c. Expected rate of return on plan assets Mainly 1.25% Mainly 1.5%
d. Amortization of unrecognized prior Mainly Mainly
service cost 10 years 10 years
e. Amortization of unrecognized actuarial Mainly Mainly
differences 10 years 10 years
f. Amortization of transition amount
The Company: Fully amortized Fully amortized
Subsidiaries: Mainly 5 years Mainly 5 years