Square Enix 2010 Annual Report Download - page 50

4. Securities sold during the fiscal year ended March 31, 2010
Millions of yen
Item
Proceeds Aggregate gain
on sale
Aggregate loss
on sale
(1) Stocks 72 0
(2) Bonds
a. Government bonds
and municipal
bonds
—— —
b. Corporate bonds —— —
c. Other 00—
(3) Other —— —
Total 72 0
5. Investment securities subject to impairment
In the fiscal year under review, other investment securities
(shares) were subject to impairment amounting to ¥166 million.
With regard to the impairment of shares, shares whose fair value
has fallen to below 50% of the acquisition price are fully impaired,
and shares whose fair value has fallen to between 30% and 50%
of the acquisition price are impaired by an appropriate amount
after taking into consideration the materiality of the amount
involved and the likelihood of recovery.
Derivative Transactions
■ Year ended March 31, 2009
1. Terms of transactions
(1) Types and purposes of transactions
In principle, the Company does not engage in derivative transactions.
However, from time to time, the Company enters into forward
foreign exchange contracts for the purpose of reducing the risk of
exposure to foreign exchange rate fluctuations.
(2) Transaction policy
The Company enters into forward foreign exchange contracts to
cover anticipated transactions denominated in foreign currencies
but does not enter into such contracts for speculative purposes.
(3) Risks
Forward foreign exchange contracts are subject to market risk
arising from fluctuations in foreign exchange rates. The Company
deems the risk of nonperformance by the counterparties to for-
ward foreign exchange contracts to be low because the Company
only enters into such contracts with financial institutions that
have high credit ratings.
(4) Risk management
Contracts are approved by a representative director and the
director with responsibility for this area. The Accounting and
Finance Division administers risk management.
2. Market valuation of transactions
Not applicable
■ Year ended March 31, 2010
1. Derivative transactions for which hedge accounting has not been
applied
Not applicable
2. Derivative transactions for which hedge accounting has been
applied
Not applicable
Retirement Benefits
■ Year ended March 31, 2009
1. Overview of retirement benefit plan
The Company and its domestic consolidated subsidiaries have
a lump-sum retirement payment plan in accordance with their
internal bylaws.
The projected benefits are allocated to periods of service on a
straight-line basis. The Company’s domestic consolidated subsid-
iaries apply a simplified method in the calculation of the retire-
ment 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 ¥(12,003)
Fair value of plan assets 6,858
Net unfunded obligation (5,145)
Unrecognized prior service cost (472)
Unrecognized actuarial loss 3,973
Allowance for retirement benefits ¥ (1,644)
3. Retirement benefit expenses:
Millions of yen
Service cost ¥ 518
Interest cost 197
Expected return on plan assets (144)
Amortization of prior service cost (333)
Amortization of net actuarial gain 244
Retirement benefit expenses ¥ 482
Notes to Consolidated Financial Statements (JPNGAAP)
48