Omron 1999 Annual Report Download - page 37

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35
The following table is the reconciliation of beginning and ending balances of the benefit obligations and the
fair value of the plan assets at March 31:
Thousands of
Millions of yen U.S. dollars
1999 1998 1999
Change in benefit obligations:
Benefit obligations at beginning of year............................................... ¥154,614 ¥143,941 $1,277,802
Service cost ......................................................................................... 10,227 8,670 84,521
Interest cost ......................................................................................... 5,411 5,758 44,719
Plan amendments ................................................................................ 1,030 08,512
Actuarial gains and losses ................................................................... 10,653 (2,496) 88,041
Benefits paid ........................................................................................ (1,468) (1,259) (12,132)
Benefit obligation at end of year ...................................................... ¥180,467 ¥154,614 $1,491,463
Change in plan assets:
Fair value of plan assets at beginning of year...................................... 92,927 85,316 767,992
Actual return on plan assets ................................................................ (1,035) 1,556 (8,554)
Employers’ contributions ..................................................................... 6,448 6,324 53,289
Employees’ contributions..................................................................... 1,012 990 8,364
Benefits paid ........................................................................................ (1,468) (1,259) (12,132)
Fair value of plan assets at end of year ........................................... ¥ 97,884 ¥ 92,927 $ 808,959
Funded status .......................................................................................... (82,583) (61,687) (682,504)
Unrecognized net actuarial loss............................................................... 58,095 41,122 480,124
Unrecognized transition obligation .......................................................... 1,348 1,618 11,140
Net amount recognized.................................................................... ¥ (23,140) ¥ (18,947) $ (191,240)
Amounts recognized in the statement of
cash flows consist of:
Accrued liability.................................................................................... ¥ (38,379) ¥ (23,422) $ (317,182)
Intangible assets .................................................................................. 1,348 1,618 11,140
Accumulated other comprehensive income (gross of tax)................... 13,891 2,857 114,802
Net amount recognized.................................................................... ¥ (23,140) ¥ (18,947) $ (191,240)
Accumulated benefit obligation at end of year ........................................ ¥136,263 ¥116,349 $1,126,141
The provisions of SFAS No. 87, “Employers’ Accounting for Pensions,” require the recognition of an addi-
tional minimum pension liability for each defined benefit plan to the extent that a plan’s accumulated benefit
obligation exceeds the fair value of plan assets and accrued pension liabilities. The net change in the minimum
pension liability is reflected as other comprehensive income, net of related deferred tax benefits. The unrecog-
nized transition obligation and the unrecognized net actuarial loss are being amortized over 15 years.
Key assumptions utilized in calculating the actuarial present value of benefit obligations are as follows:
1999 1998 1997
Discount rate................................................................................................................ 3.5% 4.0% 4.0%
Compensation increase rate........................................................................................ 3.6 3.8 3.8
Expected long-term rate of return on plan assets ....................................................... 3.5 3.5 3.5