Square Enix 2006 Annual Report Download - page 38

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S Q U A R E E N IX C O . , L T D .
6. Redemption schedule of other securities with a maturity
date on those to be held to maturity
Not applicable
D e r iv a t iv e T r a n s a c t io n s
• FY2004 (April 1, 2004 to March 31, 2005)
1. Condition of transaction
(1) Type of transaction and purpose
The Company does not engage in derivative transactions in
principal, however, the Company enters into foreign
exchange forward contracts to reduce the effect of fluctua-
tions in foreign currencies.
(2) Transaction policy
The Company enters into foreign exchange forward con-
tracts to cover anticipated transactions denominated in for-
eign currencies but does not enter into these contracts for
speculation.
(3) Risks
Foreign exchange forward contracts include the market risk
of fluctuations in foreign currencies but in our estimation,
the risk of nonperformance is considered to be low as the
contracts are entered into with prestigious financial institu-
tions.
(4) Risk Management
Contracts are approved by the representative director and
executive director in charge, and the Accounting and
Financing Division administer the risk management.
2. Market value of transaction
Not applicable
• FY2005 (April 1, 2005 to March 31, 2006)
1. Condition of transaction
(1) Type of transaction and purpose
Same as FY2004
(2) Transaction policy
Same as FY2004
(3) Risks
Same as FY2004
(4) Risk Management
Same as FY2004
2. Market value of transaction
Not applicable
R e t ir e m e n t B e n e f it s
• FY2004 (April 1, 2004 to March 31, 2005)
1. Overview of retirement benefit plan applied
The Company and its domestic consolidated subsidiaries
applied a lump-sum retirement payment plan with regard
to its retirement benefit obligation.
The projected benefits are allocated to periods of service
on a straight-line basis. The Company’s domestic consoli-
dated subsidiaries apply the conventional method in the
calculation of retirement benefit obligations. In addition,
certain of the Company’s overseas subsidiaries maintain
defined contribution retirement pension plans.
2. Retirement benefit obligation:
Millions of yen
Retirement benefit obligation ¥0,969
Net unfunded obligation 969
Unrecognized prior service cost 100
Unrecognized actuarial loss 103
Allowance for retirement benefits ¥1,173
3. Retirement benefit expenses:
Millions of yen
Service cost ¥210
Interest cost 15
Amortization of net actuarial gains and losses 10
Retirement benefit expenses ¥235
4. Assumption used in accounting for retirement benefit
obligation:
Periodic allocation method for projected benefits Straight-line basis
Discount rate 1.652%
Years over which prior service costs are amortized 1 year
Years over which net actuarial gains and losses
are amortized 1 year
• FY2005 (April 1, 2005 to March 31, 2006)
1. Overview of retirement benefit plan applied
The Company and its domestic consolidated subsidiaries
applied a lump-sum retirement payment plan with regard
to its retirement benefit obligation.
The projected benefits are allocated to periods of service
on a straight-line basis. The Company’s domestic consoli-
dated subsidiaries apply the conventional method in the
calculation of retirement benefit obligations. In addition,
certain of the Company’s overseas subsidiaries maintain
defined contribution retirement pension plans.