Olympus 2015 Annual Report Download - page 49

The changes in retirement benefit obligation for the consolidated subsidiaries adopting the simplified method were as follows:
Millions of yen
Thousands of
U.S. dollars
2014 2015 2015
Provision for retirement benefits at April 1 .............................................................................................. ¥2,618 ¥ 2,633 $ 21,942
Retirement benefit expense ................................................................................................................... 339 242 2,017
Retirement benefit paid .......................................................................................................................... (222) (88) (733)
Effect of changing from simplified method to standard method ............................................................. — (1,676) (13,967)
Other ..................................................................................................................................................... (102) (92) (767)
Liability for retirement benefits at March 31 ............................................................................................ ¥2,633 ¥ 1,019 $ 8,492
The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheets as of March
31, 2014 and 2015 for the Company’s and the consolidated subsidiaries’ defined benefit plans:
Millions of yen
Thousands of
U.S. dollars
2014 2015 2015
Funded retirement benefit obligation ...................................................................................................... ¥ 162,627 ¥ 181,425 $ 1,511,875
Plan assets at fair value ......................................................................................................................... (175,196) (191,399) (1,594,992)
(12,569) (9,974) (83,117)
Unfunded retirement benefit obligation ................................................................................................... 11,643 11,856 98,800
Net (assets) liability for retirement benefits in the balance sheet .............................................................. (926) 1,882 15,683
Liability for retirement benefits ................................................................................................................ 27,291 38,429 320,241
Net defined benefit assets ..................................................................................................................... (28,217) (36,547) (304,558)
Net amount ........................................................................................................................................... ¥ (926) ¥ 1,882 $ 15,683
The components of retirement benefit expense for the years ended March 31, 2014 and 2015 were as follows:
Millions of yen
Thousands of
U.S. dollars
2014 2015 2015
Service cost ........................................................................................................................................... ¥ 6,003 ¥ 6,230 $ 51,917
Interest cost on projected benefit obligation ........................................................................................... 4,854 4,713 39,275
Expected return on plan assets ............................................................................................................. (7,106) (7,795) (64,958)
Amortization of actuarial loss ................................................................................................................. 4,506 427 3,558
Amortization of prior service cost ........................................................................................................... (1,886) (1,897) (15,808)
Retirement benefit expense for consolidated subsidiaries adopting the simplified method. ..................... 339 211 1,758
Amortization of changing from simplified method to standard method ................................................... — 212 1,767
Other ..................................................................................................................................................... 73 94 783
Retirement benefit expense ................................................................................................................... ¥ 6,783 ¥ 2,195 $ 18,292
The components of retirement benefits liability adjustments included in other comprehensive income (before tax effect) for the years
ended March 31, 2014 and 2015 were as follows:
Millions of yen
Thousands of
U.S. dollars
2014 2015 2015
Prior service cost ................................................................................................................................... ¥— ¥1,930 $16,083
Actuarial loss ......................................................................................................................................... — 2,245 18,709
Total ...................................................................................................................................................... ¥— ¥4,175 $34,792
The components of retirement benefit liability adjustments included in accumulated other comprehensive income (before tax effect) as of
March 31, 2014 and 2015 were as follows:
Millions of yen
Thousands of
U.S. dollars
2014 2015 2015
Unrecognized prior service cost ............................................................................................................. ¥ (2,721) ¥ (791) $ (6,592)
Unrecognized actuarial loss ................................................................................................................... 10,858 13,103 109,192
Total ...................................................................................................................................................... ¥ 8,137 ¥12,312 $102,600
The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2014 and 2015 were as follows:
2014 2015
Bonds ................................................................................................................................................................................ 41% 40%
Stocks ................................................................................................................................................................................ 28% 29%
General accounts ............................................................................................................................................................... 27% 28%
Other .................................................................................................................................................................................. 4% 3%
Total ................................................................................................................................................................................... 100% 100%
The expected return on assets has been estimated based on the current and anticipated allocation to each asset class and the expected
long-term returns on assets held in each category.
The assumptions used in accounting for the above plans were as follows:
2014 2015
Discount rate ...................................................................................................................................................................... mainly 1.5% mainly 1.5%
Expected rate of return on plan assets................................................................................................................................ mainly 4.0% mainly 4.0%
The contributions to the defined contribution plans by the Company and its consolidated subsidiaries were ¥3,498 million and ¥4,638
million ($38,650 thousand) in the years ended March 31, 2014 and 2015, respectively.
12. Allowance for Doubtful Accounts
The non-current allowance for doubtful accounts primarily represents an allowance recorded upon restatement and consolidation of the
Funds as discussed in Note 1 “Summary of significant accounting policies” (a) “Basis of presenting consolidated financial statements.”
Illegitimate payments for fees to external collaborators of ¥7,211 million and ¥7,211 million ($60,092 thousand) were recorded as a non-cur-
rent receivable and included in non-current other assets on the balance sheets as of March 31, 2014 and 2015, respectively. The Company
did not agree to the fees and is seeking collection of the amounts paid, however, collection of such amounts was determined to be doubtful
and a full allowance was recorded against the non-current receivable.
13. Stock Option Plans
A summary of information regarding the consolidated subsidiaries’ stock option plans for the years ended March 31, 2014 and 2015 were
as follows:
First series of stock subscription rights Second series of stock subscription rights
Qualified beneficiaries ............................................................ 5 directors, 20 executive officers 5 directors, 20 executive officers
Class and number of shares for which
new subscription rights were offered .................................... Common stock Common stock
40,100 41,000
Grant date ............................................................................. August 26, 2013 July 11, 2014
Exercise period ...................................................................... From August 27, 2013 to August 26, 2043 From July 12, 2014 to July 11, 2044
Number of unvested stock options:
As of March 31, 2014 ........................................................ — —
Granted ............................................................................. — 41,000
Lapsed .............................................................................. — —
Vested ............................................................................... — 41,000
As of March 31, 2015 ........................................................ — —
Number of vested stock options:
As of March 31, 2014 ........................................................ 39,100 —
Vested ............................................................................... — 41,000
Exercised ........................................................................... — —
Lapsed .............................................................................. — 1,000
As of March 31, 2015 ........................................................ 39,100 40,000
For stock options exercised during the year:
Exercise price (yen) ............................................................ ¥1 ¥1
Average price of common stock
at the date of exercise (yen) .............................................. ¥— ¥—
Fair value per share at the grant date:
Exercise price (yen) ............................................................ ¥2,940 ¥3,625
No stock options were exercised during the years ended March 31, 2014 and 2015.
Notes to the Consolidated Financial Statements
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OLYMPUS Annual Report 2015
94 OLYMPUS Annual Report 2015