Nikon 2005 Annual Report Download - page 37

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The liability for employees’ retirement benefits at March 31, 2005 and 2004 consisted of the following:
Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial loss
Unrecognized prior service cost
Prepayment of service cost
Net Liability
Thousands of
U.S. Dollars
2005
$ 932,474
(729,669)
(175,691)
145,881
172,995
1,055
$ 174,050
2004
¥115,743
(71,364)
(23,288)
(626)
20,465
545
¥ 21,010
2005
¥ 100,138
(78,359)
(18,867)
15,666
18,578
113
¥ 18,691
Millions of Yen
The components of net periodic benefit costs for the fiscal years ended March 31, 2005 and 2004 were as follows:
Service cost
Interest cost
Expected return on plan assets
Recognized actuarial loss
Amortization of prior service cost
Net periodic benefit costs
Thousands of
U.S. Dollars
2005
$ 31,221
24,469
(16,316)
28,398
(16,002)
$ 51,770
2004
¥ 5,142
3,041
(1,315)
4,463
82
¥ 11,413
2005
¥ 3,353
2,628
(1,752)
3,049
(1,718)
¥ 5,560
Millions of Yen
Assumptions used for the fiscal years ended March 31, 2005 and 2004 were principally set forth as follows:
Discount rate
Expected rate of return on plans assets
Recognition period of actuarial gain (loss)
Amortization period of prior service cost
2004
2.5%
2.0%
10 years
10 years
2005
2.5%
2.0%
10 years
10 years
8. SHAREHOLDERS’ EQUITY
Japanese companies are subject to the Japanese Commercial Code (the “Code”)
The Code requires that all shares of common stock are recorded with no par value and at least 50% of the issue price of new shares is required
to be recorded as common stock and the remaining net proceeds as additional paid-in capital, which is included in capital surplus. The Code permits
Japanese companies, upon approval of the Board of Directors, to issue shares to existing shareholders without consideration as a stock split. Such
issuance of shares generally does not give rise to changes within the shareholders’ accounts.
The Code also provides that an amount at least equal to 10% of the aggregate amount of cash dividends and certain other appropriations of
retained earnings associated with cash outlays applicable to each period shall be appropriated as a legal reserve (a component of retained earnings)
until such reserve and additional paid-in capital equals 25% of the amount of common stock. The amount of total additional paid-in capital and
legal reserve that exceeds 25% of the amount of common stock may be available for dividends by resolution of the shareholders. In addition, the
Code permits the transfer of a portion of additional paid-in capital and legal reserve to the common stock by resolution of the Board of Directors.
The Code allows Japanese companies to repurchase treasury stock and dispose of such treasury stock by resolution of the Board of Directors.
The repurchased amount of treasury stock cannot exceed the amount available for future dividend plus amount of common stock, additional paid-in
capital or legal reserve to be reduced in the case where such reduction was resolved at the shareholders meeting.
In addition to the provision that requires an appropriation for a legal reserve in connection with the cash payment, the Code imposes certain
limitations on the amount of retained earnings available for dividends. The amount of retained earnings available for dividends under the Code was
¥64,126 million ($597,135 thousand) as of March 31, 2005, based on the amount recorded in the parent company’s general books of account.
Dividends are approved by the shareholders at a meeting held subsequent to the fiscal year to which the dividends are applicable. Semiannual
interim dividends may also be paid upon resolution of the Board of Directors, subject to certain limitations imposed by the Code.