Ricoh 2002 Annual Report Download - page 47

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The projected benefit obligations, accum ulated benefit obligations, and fair
value of plan assets for the pension plans with accum ulated benefit obligations in
excess of plan assets were ¥303,113 million, ¥247,897 million and ¥213,929 mil-
lion, respectively, as of March 31, 2001 and ¥335,517 million ( $2,522,684 thou-
sand) , ¥280,930 m illion ( $2,112,256 thousand) and ¥208,712 million
( $1,569,263 thousand) , respectively, as of March 31, 2002.
In accordance with the provisions of SFAS No. 87, Ricoh was required to
record an adjustment for minim um pension liability at March 31, 2001 and 2002.
This liability represents the excess of the accum ulated benefit obligations over the
fair value of plan assets. This excess is primarily attributable to a substantial re-
1 2 . SHAREHOLDERS’ INVESTMENT
The Japanese Comm ercial Code provided that an amount equivalent to at least
10% of cash dividends paid and other cash outlays resulting from appropriation
of retained earnings with respect to each fiscal or interim six-m onth period be
appropriated as a legal reserve until such reserve equals 25% of the stated capital.
This legal reserve and additional paid-in capital were not available for dividends
but may be used to reduce a deficit by resolution of the shareholders or may be
capitalized by resolution of the Board of Directors. The Japanese Com mercial
Code, am ended effective on October 1, 2001, provides that an am ount equal to at
least 10% of appropriations paid in cash be appropriated as a legal reserve until
an aggregated am ount of additional paid-in capital and the legal reserve equals
25% of comm on stock, and this legal reserve and additional paid-in capital ex-
ceeding 25% of comm on stock may be reduced by resolution of the shareholders.
Sem iannual cash dividends are approved by the shareholders after the end of
each fiscal period or are declared by the Board of Directors after the end of each
interim six-m onth period. Such dividends are payable to shareholders of record at
the end of each such fiscal or interim six-m onth period. At the general m eeting to
be held on June 27, 2002, the shareholders will approve the declaration of a cash
dividend on the com mon stock totaling ¥5,090 million ( $38,271 thousand) ,
which will be paid to shareholders of record as of March 31, 2002. In accordance
with the Japanese Comm ercial Code, the declaration of this dividend has not been
reflected in the consolidated financial statem ents as of March 31, 2002.
The Japanese Comm ercial Code provides that at least one-half of the proceeds
from shares issued at a price need to be included in common stock. In conformity
therewith, the Com pany has divided the principal am ount of bonds converted into
comm on stock equally between common stock and additional paid-in capital.
The am ount of retained earnings legally available for distribution is that
recorded in the Company’s books and am ounted to ¥253,867 million ( $1,908,774
thousand) as of March 31, 2002.
duction in the discount rate used in pension calculation and loss on plan assets,
and represents a net loss not yet recognized as net periodic benefit cost. Since there
is no unrecognized prior service cost, this excess is reported in an accum ulated
other com prehensive income ( loss) , at net of tax benefits. The net changes in pen-
sion liability adjustment were an increase of ¥21,979 million for the year ended
March 31, 2001 and an increase of ¥16,131 m illion ( $121,286 thousand) for the
year ended March 31, 2002, respectively.
Employees of certain subsidiaries not covered by the EPF plan and directors of
Ricoh are primarily covered by unfunded retirement allowances plans. The pay-
ments to directors are subj ect to shareholders’ approval.
Service costs
Interest costs
Expected return on plan assets
Net am ortization
Settlem ent loss
Net periodic benefit cost
Thousands of
U.S. dollars
2 0 0 2
Millions of yen
2 0 0 2
20012000
¥ 1 5 ,6 3 6
1 3 ,6 9 3
( 1 3 ,0 3 1 )
4 ,7 0 7
183
¥ 2 1 ,1 8 8
$117,564
1 0 2 ,9 5 5
( 9 7 ,9 7 8 )
3 5 ,3 9 1
1,376
$159,308
¥16,872
13,282
( 8,611)
3,812
—
¥25,355
¥15,449
11,706
( 13,410)
1,123
—
¥14,868
The discount rate, rate of increase in com pensation and expected long-term rate
of return on plan assets of the domestic pension plans were 3.0%, 3.7% and 4.5%,
respectively, for the year ended March 31, 2001 and 2.8%– 3.0%, 3.3% and
1.5%– 4.5%, respectively, for the year ended March 31, 2002. The other data
shown above are those of foreign pension plans.
The net periodic benefit costs of the defined benefit plans for the three years
ended March 31, 2002 consisted of the following components: