Oki 2011 Annual Report Download - page 37

Annual Report 2011 35
Projected benefit obligation
Fair value of plan assets
Funded status
Transition differences arising from initial adoption of new accounting
standard for retirement benefits
Unrecognized actuarial gain or loss
Unrecognized prior service cost
Obligation recognized in the consolidated balance sheets
Prepaid pension cost
Allowance for retirement benefits
2011 2010 2011
¥(114,979)
75,935
(39,043)
8,730
23,023
(9,061)
(16,350)
—
¥ (16,350)
¥ (139,227)
65,439
(73,788)
17,990
24,129
(7,987)
(39,655)
—
¥ (39,655)
$(1,385,289)
914,879
(470,397)
105,180
277,385
(109,168)
(196,987)
—
$ (196,987)
Millions of yen
Thousands of
U.S. dollars
(1) Certain domestic consolidated subsidiaries have applied a simplified method, as permitted, to calculate their projected benefit obligation.
(2) The above “Allowance for retirement benefits” does not include the “allowance for retirement benefits to directors and statutory audi-
tors.” Therefore, it differs from the retirement benefits reported in the accompanying consolidated balance sheets.
(3) Pursuant to a transfer of its lump-sum retirement payment plans to defined contribution plans, the projected benefit obligation of
¥29,157 million ($351,289 thousand) and the allowance for retirement benefits of ¥17,001 million ($204,831 thousand) were reduced
for the year ended March 31, 2011.
Components of net periodic pension cost for the years ended March 31, 2011, 2010 and 2009 were as follows:
2. Financial instruments whose fair value is considered extremely difficult to assess
Unlisted equity securities (¥12,338 million ($148,650 thousand) and ¥12,223 million) and investments in a limited liability joint business
partnership (¥86 million ($1,036 thousand) and ¥110 million) at March 31, 2011 and 2010 are not included in (3) Securities and invest-
ments in securities because they have no market price and it is deemed extremely difficult to assess their fair values.
8. RETIREMENT BENEFITS
The Company and domestic consolidated subsidiaries have a noncontributory defined benefit pension plan and lump-sum retirement pay-
ment plans which cover substantially all employees who terminate their employment with the Group. Certain overseas consolidated
subsidiaries have defined benefit and defined contribution pension plans. In addition, the Company has pension and retirement benefit
trust. Furthermore, eligible employees, upon termination of their employment with the Group, may receive certain additional payments
under the plans.
The Company and 21 domestic consolidated subsidiaries joined the OKI Pension Fund which was established on January 1, 2005.
The Company and the domestic consolidated subsidiaries that joined the OKI Pension Fund will transfer some portion of their lump-
sum retirement payment plans to defined contribution plans on June 1, 2011.
The following is a summary of the plans at March 31, 2011 and 2010:
Service cost during the year
Interest cost on projected benefit obligation
Expected return on plan assets
Amortization of obligation at transition
Amortization of actuarial difference
Amortization of prior service cost
Net periodic pension cost
2010 2009 2011
¥ 4,982
2,938
(305)
3,598
3,585
(866)
¥ 13,933
2011
¥ 4,305
2,948
(654)
3,598
3,736
(1,019)
¥ 12,915
¥ 7,154
3,203
(1,863)
3,992
2,617
(973)
¥ 14,130
$ 51,867
35,518
(7,879)
43,349
45,012
(12,277)
$ 155,602
Millions of yen
Thousands of
U.S. dollars
(1) Special retirement payments of ¥11,807 million ($142,253 thousand), ¥814 million and ¥3,213 million in the aggregate were made in
addition to the net periodic pension cost presented in the above table for the years ended March 31, 2011, 2010 and 2009, and these
payments are included in “Special retirement expense” and “Business structure improvement expenses.”
(2) The allowance for retirement benefits was determined by the simplified method by certain consolidated subsidiaries and their net
periodic pension cost has been included in service cost of benefits earned during the year.
(3) In addition to the net periodic pension cost presented in the above table, for the year ended March 31, 2011, a loss of ¥20,333 million
($244,975 thousand) was caused by the transfer to defined contribution plans, and a change in method of accounting in certain
domestic subsidiaries, and it is included in “Loss on revision of retirement benefit plan.”