Konica Minolta 2010 Annual Report Download - page 46

Loss on impairment and reversals of loss on impairment of leased
assets for the years ended March 31, 2010 and 2009 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Loss on impairment ¥ 1 ¥198 $ 11
Reversals of loss 190 19 2,042
2) Operating Leases
The scheduled maturities of future rental payments of operating non-
cancelable leases as of March 31, 2010 and 2009 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Due within one year ¥ 5,299 ¥ 5,978 $ 56,954
Due over one year 13,011 17,175 139,843
Total ¥18,311 ¥23,153 $196,808
As Lessor
Operating Leases
The scheduled maturities of future rental incomes of operating non-
cancelable leases as of March 31, 2010 and 2009 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
Due within one year ¥1,521 ¥ 920 $16,348
Due over one year 2,207 1,189 23,721
Total ¥3,729 ¥2,109 $40,080
22. RETIREMENT BENEFIT PLANS
The Companies have defined benefit retirement plans that include
corporate defined benefit pensions plans, tax-qualified pension plans
and lump-sum payment plans. In addition, the Companies have defined
contributory pension plans. The Companies may pay additional retire-
ment benefits to employees at their discretion.
Additionally, the Company and certain domestic consolidated subsid-
iaries contribute to retirement benefit trust.
The reserve for retirement benefits as of March 31, 2010 and 2009 is
calculated as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 March 31
2010 2009 2010
a. Retirement benefit obligations ¥(146,078) ¥(140,843) $(1,570,056)
b. Plan assets 85,965 74,124 923,957
c. Unfunded retirement benefit
obligations (a+b) (60,112) (66,718) (646,088)
d. Unrecognized actuarial
differences 13,545 18,621 145,583
e. Unrecognized prior service costs (5,322) (7,033) (57,201)
f. Net amount on consolidated
balance sheets (c+d+e) (51,889) (55,130) (557,706)
g. Prepaid pension costs 2,356 2,831 25,322
h. Accrued retirement benefits (f–g) ¥ (54,245) ¥ (57,962) $ (583,029)
Note: Certain subsidiaries use a simplified method for the calculation of benefit obligation.
Net retirement benefit costs for the years ended March 31, 2010 and
2009 are as follows:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2010
a. Service costs ¥ 4,098 ¥ 5,181 $ 44,046
b. Interest costs 4,002 4,074 43,014
c. Expected return on plan assets (1,596) (2,280) (17,154)
d. Amortization of actuarial
differences 3,372 1,860 36,242
e. Amortization of prior service
costs (1,402) 643 (15,069)
f. Retirement benefit costs
(a+b+c+d+e) 8,473 9,479 91,068
g. Contributions to defined
contribution pension plans 2,449 3,168 26,322
Total (f+g) ¥10,922 ¥12,647 $117,390
Note: Retirement benefit costs of consolidated subsidiaries using a simplified method
are included in “a. Service costs.”
Assumptions used in the calculation of the above information for the
main schemes of the Company and its domestic consolidated subsid-
iaries are as follows:
2010 2009
Method of attributing retirement
benefits to periods of service
Periodic
allocation
method for
projected benefit
obligations
Periodic
allocation
method for
projected benefit
obligations
Discount rate Mainly 2.5% Mainly 2.5%
Expected rate of return on plan assets Mainly 1.25% Mainly 1.25%
Amortization of unrecognized
prior service cost Mainly 10 years Mainly 10 years
Amortization of unrecognized
actuarial differences Mainly 10 years Mainly 10 years
23. DERIVATIVES
The Companies utilize derivative instruments including foreign currency
exchange forward contracts, interest rate swaps and currency swaps,
to hedge against the adverse effects of fluctuations in foreign currency
exchange rate and interest rate risk. Additionally, the Companies
have a policy of limiting the activity of such transactions to only hedge
identified exposures and not to hold transactions for speculative or
trading purposes.
Risks associated with derivative transactions
Although the Companies are exposed to credit-related risks and risks
associated with the changes in interest rates and foreign exchange
rates, such derivative instruments are limited to hedging purposes only
and the risks associated with these transactions are limited. All deriva-
tive contracts entered into by the Companies are with selected major
financial institutions based upon their credit ratings and other factors.
Such credit-related risks are not anticipated to have a significant impact
on the Companies’ results.
Risk control system for derivative transactions
In order to manage market and credit risks, the Finance Division of the
Company is responsible for setting or managing the position limits and
credit limits under the Company’s internal policies for derivative instru-
ments. Resources are assigned to each function, including transaction
execution, administration, and risk management, independently, in
order to clarify the responsibility and the role of each function.
44 KONICA MINOLTA HOLDINGS, INC. ANNUAL REPORT 2010