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48 OLYMPUS 2010
11. NOTES AND ACCOUNTS PAYABLE
Notes and accounts payable as of March 31, 2010 and 2009 consisted of the following:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2010
Unconsolidated subsidiaries and affiliates ................................................................... ¥189 ¥ 326 $2,100
Trade ............................................................................................................................ 73,885 66,278 820,944
Total ............................................................................................................................. ¥74,074 ¥ 66,604 $823,044
12. SEVERANCE AND RETIREMENT ALLOWANCE
The Company and its consolidated subsidiaries adopted accounting standards for employees' severance and retirement benefits, under which
the liabilities and expenses for severance and retirement benefits are determined based on the amounts obtained by actuarial calculations.
The liabilities for severance and retirement allowance included in the liability section of the consolidated balance sheets as of March 31,
2010 and 2009 consisted of the following:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2010
Projected benefit obligation ......................................................................................... ¥135,781 ¥ 127,003 $1,508,678
Unrecognized prior service costs .................................................................................. 125 1,009 1,389
Unrecognized actuarial difference ................................................................................ (14,354) (25,540) (159,489)
Fair value of pension assets ......................................................................................... (123,472) (105,200) (1,371,911)
Prepaid pension expenses ............................................................................................ 21,808 21,472 242,311
Allowance for employees’ severance and retirement benefits ...................................... 19,888 18,744 220,978
Severance and retirement allowance for directors and corporate auditors ................... 147 130 1,633
Total severance and retirement allowance ................................................................... ¥20,035 ¥ 18,874 $222,611
Included in the consolidated statements of operations for the years ended March 31, 2010 and 2009, were employees' severance and
retirement benefit expenses comprising the following:
Millions of yen
Thousands of
U.S. dollars
2010 2009 2010
Service costs—benefits earned during the year ........................................................... ¥6,407 ¥ 6,641 $71,189
Interest cost on projected benefit obligation ................................................................ 3,820 3,523 42,444
Expected return on plan assets .................................................................................... (5,138) (5,717) (57,089)
Amortization of actuarial difference ............................................................................. 5,034 1,868 55,933
Amortization of prior service costs ............................................................................... (802) (786) (8,910)
Severance and pension benefit expenses ..................................................................... ¥9,321 ¥ 5,529 $103,567
The discount rates used by the Company were mainly 2.0% in fiscal 2010 and 2009. The rate of expected return on plan assets used by
the Company is mainly 4.0% in fiscal 2010 and 2009. The estimated amount of all retirement benefits to be paid at the future retirement
date is allocated equally to each service year using the estimated number of total service years. Prior service costs were recognized as
expense (or income) in equal amounts over mainly five years in fiscal 2010 and 2009, and actuarial gains (or losses) were recognized as
income (or expense) in equal amounts over mainly five years in fiscal 2010 and 2009.