Omron 2001 Annual Report Download - page 39

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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
2001 2000 2001
Change in benefit obligation:
Benefit obligation at beginning of year........................................................ ¥189,263 ¥180,467 $1,526,315
Service cost, less employees’ contributions ............................................... 8,846 9,147 71,339
Interest cost................................................................................................. 6,624 6,316 53,419
Employees’ contributions............................................................................ 1,010 1,000 8,145
Actuarial (gains) and losses......................................................................... 4,022 (4,012) 32,435
Benefits paid (including benefits paid by the Companies).......................... (3,858) (3,655) (31,113)
Benefit obligation at end of year.............................................................. ¥205,907 ¥189,263 $1,660,540
Change in plan assets:
Fair value of plan assets at beginning of year............................................. 129,137 97,884 1,041,428
Actual return on plan assets........................................................................ (12,879) 25,555 (103,863)
Employers’ contributions............................................................................. 6,528 6,504 52,645
Employees’ contributions............................................................................ 1,010 1,000 8,145
Benefits paid................................................................................................ (1,921) (1,806) (15,492)
Fair value of plan assets at end of year................................................... ¥121,875 ¥129,137 $ 982,863
Funded status.................................................................................................. (84,032) (60,126) (677,677)
Unrecognized net actuarial loss...................................................................... 49,639 30,232 400,314
Unrecognized transition obligation.................................................................. 808 1,078 6,516
Net amount recognized ........................................................................... ¥ (33,585) ¥ (28,816) $ (270,847)
Amounts recognized in the consolidated balance sheets:
Accrued liability ........................................................................................... ¥ (46,895) ¥ (28,816) $ (378,183)
Intangible assets.......................................................................................... 808 —6,516
Accumulated other comprehensive income (gross of tax).......................... 12,502 —100,820
Net amount recognized ........................................................................... ¥ (33,585) ¥ (28,816) $ (270,847)
Accumulated benefit obligation at end of year........................................... ¥168,769 ¥146,248 $1,361,040
The provisions of SFAS No. 87, “Employers’ Accounting for Pensions,” require the recognition of an additional
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 lia-
bility is reflected as other comprehensive income, net of related tax effect. The unrecognized 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:
2001 2000 1999
Discount rate ............................................................................................................ 3.0% 3.5% 3.5%
Compensation increase rate .................................................................................... 3.0 3.6 3.6
Expected long-term rate of return on plan assets.................................................... 4.0 4.0 3.5
Omron Corporation 37