Pentax 2004 Annual Report Download - page 56

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54
NO»9RETIREMENT BENEFITS AND PENSION PLANS
The Company and certain domestic subsidiaries had two types of pension plans for employees; an unfunded retirement benefit plan and a
contributory funded pension plan. The Company and certain domestic subsidiaries had retirement benefit plans for directors and corpo-
rate auditors.
For the year ended March 31, 2003, the contributory funded pension plan was dissolved and the unfunded retirement benefit plan was
abolished.
The components of net periodic benefit costs for the years ended March 31, 2004, 2003 and 2002 were as follows:
Thousands of
Millions of Yen U.S. Dollars
2004 2003 2002 2004
Service cost 0¥ 1,695 ¥ 1,667 0
Interest cost 1,234 1,879
Expected return on plan assets (1,523) (2,194)
Amortization of prior service cost (122) (163)
Recognized actuarial loss 1,781 1,021
Amortization of transitional obligation (157) (210)
Total 2,908 2,000
Additional expense incurred to dissolve the contributory funded
pension plan ¥ 888 14,949 $ 8,377
Additional expense incurred to abolish the unfunded retirement
benefit plan 351
Additional retirement benefits paid to employees 1,090 3,691 1,996 10,283
Net periodic benefit costs ¥1,978 ¥21,899 ¥ 3,996 $18,660
Additional expenses incurred to dissolve the contributory funded pension plan were loss incurred on the dissolution of the plan for the
year ended March 31, 2004 and the remaining liability exceeding liability for retirement benefit at the dissolution of the plan for the year
ended March 31, 2003.
Additional expense incurred to abolish the unfunded retirement benefit plan was equal to the difference between retirement benefits
paid to employees due to abolishment and the recorded liability for retirement benefits.
Assumptions used for the years ended March 31, 2003 and 2002 were set forth as follows:
2003 2002
Discount rate 2.5%
Expected rate of return on plan assets 0.00.0%5.5% 5.5%
Amortization period of prior service cost 00 years 12 years 12 years
Recognition period of actuarial gain/loss 00 years 12 years 12 years
Amortization period of transitional obligation 00 years 15 years 15 years
Remaining balances of prior service cost, actuarial gain/loss and transitional obligation were charged to income when the contributory
funded pension plan was dissolved and the unfunded retirement benefit plan was abolished in the year ended March 31, 2003.
Accrued retirement benefits for directors and corporate auditors of the Company and its domestic subsidiaries are paid subject to
approval of the shareholders in accordance with the Code. Accrued retirement benefits recorded in the accompanying consolidated
balance sheets at March 31, 2003 represents the accrued retirement benefits for directors and corporate auditors. The Company and its
domestic subsidiaries abolished the retirement benefit plan for directors and corporate auditors for the year ended March 31, 2004.