Wacom 2010 Annual Report Download - page 19

35
13. Provision for retirement benefits:
The Company has an unfunded retirement allowance plan
(the “Plan”) covering substantially all of its employees who
meet eligibility requirements under the Plan. In addition,
the Company is a member of the Saitama prefectural
industrial park multi-employer pension plan, which covers
substantially all of its employees and provides for benefits
under the governmental welfare pension benefit plan,
which would otherwise be provided by the Japanese
government.
This multi-employer pension plan does not permit us to
reasonably calculate the value of the pension plan assets
based on our contributions. As a result, this multi-
employer pension plan is excluded from the calculation of
projected benefit obligation.
Overview of the multi-employer pension plan is as follow,
under which the required contributions to the plan are
charged to income.
(1) The funded status of the pension plan as of March 31,
2009 and 2010
(2) The ratio of the number of company’s employees to
total employees in the multi-employer pension plan as of
March 31, 2009 is 16.2% and 2010 is 17.6%, respectively.
The provision for retirement benefits for employees as of
March 31, 2009 and 2010 can be analyzed as follows:
The components of the net periodic pension expense for
the years ended March 31, 2009 and 2010 are as follows:
$17,290
4,894
392
1,862
-
($699)
61
-
(38)
($676)
($699)
61
-
(38)
($676)
Foreign exchange forward contracts:
To sell U.S. dollars
To sell Euros
To sell British Pound
To buy U.S. dollars
Total
Thousands of U.S. dollars
March 31, 2010
Contract
amount Fair value Unrealized
gain/(loss)
The amount of pension assets
The amount of benefit obligations
under pension funding programs
Net
Thousands of
U.S. dollars
Thousands of
yen
March 31
2010
March 31
2009 2010
$64,008
(83,919)
($19,911)
¥5,955,349
(7,807,823)
(¥1,852,474)
¥6,998,395
(7,458,524)
(¥460,129)
(1) Projected benefit obligation
(2) Unrecognized actuarial loss
(3) Provision for retirement benefits
for employees (1)+(2)
Thousands of
U.S. dollars
Thousands of yen
20102009 2010
($5,053)
345
($4,708)
(¥470,090)
32,066
(¥438,024)
(¥425,615)
5,464
(¥420,151)
(1) Service cost
(2) Interest cost
(3) Recognized actuarial loss
(4) Contribution
(5) Extra retirement payments
(6) Net periodic pension expense
Thousands of
U.S. dollars
Thousands of yen
2010
2009 2010
$536
104
(6)
966
577
$2,177
¥49,904
9,665
(545)
89,908
53,632
¥202,564
¥45,161
7,282
6,186
88,076
-
¥146,705
The assumptions used as of March 31, 2009 and 2010
are as follows:
Certain of our consolidated foreign subsidiaries have
defined contribution pension plans.
14. Stock options:
The following represents stock options granted to
directors and employees, which would result in an
increase in the number of common shares with the
following exercise prices.
The contents of stock options, the changes in stock
options and price per share information for the year
ended March 31, 2009 are as follows:
2010
(1) Discount rate
(2) Method of attributing the projected
benefits to periods of service
(3) Amortization of unrecognized actuarial
differences
2009
Mainly 1.39%
Straight-line
basis
Mainly
straight-line
over 5 years
2.0%
Straight-line
basis
Straight-line
over 5 years
November 8, 2002
June 26, 2003
June 24, 2004
June 23, 2005
Date of
ordinary
shareholders’
meeting
113
6
33
4
66
13
2
4
9
1
6
9
Employees
Subsidiaries’ executive officers
Subsidiaries’ employees
Executive officers
Employees
Subsidiaries’ employees
Executive officers
Employees
Subsidiaries’ employees
Executive officers
Employees
Subsidiaries’ employees
Person granted
19,160
7,440
1,200
800
28,600
Number of
options granted
(shares)
November 8, 2002
June 26, 2003
June 24, 2004
June 23, 2005
Date of
ordinary
shareholders’
meeting
¥17,659
158,951
306,139
242,865
Exercise price
per share
(exact yen)
¥203,550
256,391
-
-
Average price
per share
at exercise
(exact yen) Exercise periods
From November 9, 2004 to
October 31, 2011
From June 27, 2005 to
June 26, 2008
From June 25, 2006 to
June 24, 2009
From June 24, 2007 to
June 23, 2010
Outstanding
at March 31, 2008
Granted
Exercised
Expired
Outstanding
at March 31, 2009
Exercise periods
1,200
-
140
-
1,060
From November 9,
2004 to October
31, 2011
2,140
-
1,400
740
-
From June 27,
2005 to June
26, 2008
844
-
-
40
804
From June 25,
2006 to June
24, 2009
800
-
-
-
800
From June 24,
2007 to June
23, 2010
Date of ordinary
shareholders’ meeting
November 8,
2002
June 26,
2003
June 24,
2004
June 23,
2005
（Unit:shares）
36
Notes to Consolidated Financial Statements
The contents of stock options, the changes in stock
options and price per share information for the year
ended March 31, 2010 are as follows:
15. Income taxes:
The significant components of deferred tax assets and
liabilities for the years ended March 31, 2009 and 2010
are as follows:
November 8, 2002
June 24, 2004
June 23, 2005
Date of
ordinary
shareholders’
meeting
113
6
33
2
4
9
1
6
9
Employees
Subsidiaries’ executive officers
Subsidiaries’ employees
Executive officers
Employees
Subsidiaries’ employees
Executive officers
Employees
Subsidiaries’ employees
Person granted
19,160
1,200
800
21,160
Number of
options granted
(shares)
Outstanding
at March 31, 2009
Granted
Exercised
Expired
Outstanding
at March 31, 2010
Exercise periods
800
-
-
20
780
From June 24,
2007 to June
23, 2010
Date of ordinary
shareholders’ meeting
June 23,
2005
（Unit:shares）
804
-
-
804
-
From June 25,
2006 to June
24, 2009
June 24,
2004
1,060
-
120
-
940
From November 9,
2004 to October
31, 2011
November 8,
2002
November 8, 2002
June 24, 2004
June 23, 2005
Date of
ordinary
shareholders’
meeting
¥17,659
242,865
Exercise price
per share
(exact yen)
¥156,650
-
-
Average price
per share
at exercise
(exact yen) Exercise periods
From November 9, 2004 to
October 31, 2011
From June 25, 2006 to
June 24, 2009
From June 24, 2007 to
June 23, 2010
Deferred tax assets:
Inventory-inter-company profit
Accrued retirement benefits
Accrued severance
indemnities for directors
and statutory corporate auditors
Accrued bonuses
Accrued expenses
Enterprise tax
Account receivables
Software development costs
Net loss carried forward
for tax purposes
Lump-sum depreciation assets
Deferred assets
Inventories
Accrued vacation payable
Investment securities
Trademark rights
Others
Total deferred tax assets
Deferred tax liabilities:
Undistributed earnings of
overseas subsidiaries
Fixed assets of overseas subsidiaries
Others
Total deferred tax liabilities
Net deferred tax assets
Thousands of yen Thousands of
U.S. dollars
20102009 2010
$2,427
1,813
1,783
1,095
902
701
410
393
290
150
146
118
117
85
71
404
10,905
(5,329)
(302)
(364)
(5,995)
$4,910
¥225,775
168,679
165,915
101,856
83,934
65,200
38,129
36,562
26,990
13,953
13,540
10,997
10,943
7,939
6,612
37,518
1,014,542
(495,783)
(28,087)
(33,893)
(557,763)
¥456,779
¥444,472
162,331
136,470
114,052
72,633
38,846
20,744
39,125
27,597
17,118
-
28,682
-
-
7,556
32,329
1,141,955
(442,402)
(31,269)
(44,383)
(518,054)
¥623,901
The difference between the statutory income tax rate
and the effective income tax rate for the year ended
March 31, 2009 was less than 5% of the statutory
income tax rate, and accordingly, the reconciliation
between these two rates has been omitted.
The reconciliation between the statutory tax rate and
the effective income tax rate in the consolidated
statement of income for the year ended March 31,
2010 is as follows:
16. Segment information:
(1) Segments by industry -
Statutory effective tax rate
Tax credit of corporation tax
Taxes on undistributed earnings
of overseas subsidiaries
Non deductible expenses for tax purposes
Equalization tax
Others
Effective income tax rate
39.7%
(4.8)
1.7
0.7
0.4
(0.8)
36.9%
March 31,
2010
Year ended March 31, 2009
I. Net sales:
(1) Outside customers
(2) Inter-segment
Total
Operating expenses
Operating income
II. Assets, depreciation
and capital expenditure:
Assets
Depreciation
Capital expenditure
¥750,742
-
750,742
701,693
¥49,049
¥33,809,138
-
33,809,138
27,548,793
¥6,260,345
¥ -
(-)
(-)
1,948,967
(¥1,948,967)
¥33,809,138
-
33,809,138
29,497,760
¥4,311,378
¥33,058,396
-
33,058,396
26,847,100
¥6,211,296
¥14,480,863
513,311
940,194
¥476,060
45,177
24,643
¥14,956,923
558,488
964,837
¥10,674,134
105,951
209,659
¥25,631,057
664,439
1,174,496
Thousands of yen
ECS
business
ESD
business Total
Elimination/
Corporate
Consolidated
Year ended March 31, 2010
I. Net sales:
(1) Outside customers
(2) Inter-segment
Total
Operating expenses
Operating income
II. Assets, depreciation
and capital expenditure:
Assets
Depreciation
Capital expenditure
¥410,777
-
410,777
519,787
(¥109,010)
¥32,044,578
-
32,044,578
27,273,603
¥4,770,975
¥ -
(-)
(-)
1,643,153
(¥1,643,153)
¥32,044,578
-
32,044,578
28,916,756
¥3,127,822
¥31,633,801
-
31,633,801
26,753,816
¥4,879,985
¥17,699,823
601,094
573,774
¥468,556
31,623
22,361
¥18,168,379
632,717
596,135
¥10,031,050
124,450
789,114
¥28,199,429
757,167
1,385,249
Thousands of yen
ECS
business
ESD
business Total
Elimination/
Corporate
Consolidated