Alpine 2011 Annual Report Download - page 27

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8. Net assets
The Japanese Corporate Law (“the Law”) became effective on May 1, 2006, replacing the Japanese Commercial Code (“the Code”). The Law is generally
applicable to events and transactions occurring after April 30, 2006 and for fiscal years ending after that date.
Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock. However, a company may,
by a resolution of the Board of Directors, designate an amount not exceeding one-half of the price of the new shares as additional paid-in capital, which is
included in capital surplus.
Under the Law, in cases where a dividend distribution of surplus is made, the smaller of an amount equal to 10% of the dividend or the excess, if any,
of 25% of common stock over the total of additional paid-in-capital and legal earnings reserve must be set aside as additional paid-in-capital or legal
earnings reserve. Legal earnings reserve is included in retained earnings in the accompanying consolidated balance sheets.
Under the Law, legal earnings reserve and additional paid-in capital can be used to eliminate or reduce a deficit, and also can be capitalized by a
resolution of the shareholders’ meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Law, all additional paid-in-capital and all legal earnings
reserve may be transferred to other capital surplus and retained earnings, respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated financial statements of the Company in
accordance with Japanese laws and regulations.
At the annual shareholders’ meeting held on June 23, 2011, the shareholders approved cash dividends amounting to ¥697 million ($8,390 thousand).
Such appropriations have not been accrued in the consolidated financial statements as of March 31, 2011. Such appropriations are recognized in the
period in which they are approved by the shareholders.
7. Provision for Retirement Benefits
Provision for retirement benefits included in the liability in the consolidated balance sheets and the related expenses for 2011 and 2010, which were
determined based on the amounts obtained by actuarial calculations, were as follows:
The components of employee’s severance and pension expenses for the years ended March31, 2011, 2010 and 2009 were as follows.
An overseas subsidiary withdrew from the defined benefit pension scheme in a multi-employer pension fund, and the loss on abolishment of retirement
benefit plan was ¥513 million (US$6,170 thousand) for the year ended March 31, 2011.
The discount rate and the rate of expected return on plan assets used by the Company were mainly 2.5% for 2011, 2010 and 2009. The estimated
amount of all retirement benefits to be paid at the future retirement date was allocated equally to each service year using the estimated number of total
service years. Prior service costs were recognized as expense within one year, and actuarial gains or losses were recognized as income or expense using
the straight-line method mainly over 16 years.
Millions of Yen Thousands of U.S. Dollars
2011 2010 2011
Projected benefit obligation ¥(10,094) ¥(10,767) $(121,395)
Unamortized actuarial differences 1,975 2,231 23,752
Pension assets 8,305 9,029 99,879
Prepaid pension expense (921) (1,152) (11,076)
Provision for retirement benefits: ¥ (735) ¥ (659) $ (8,840)
Millions of Yen Thousands of U.S. Dollars
2011 2010 2009 2011
Service costs – Benefits earned during the year ¥ 533 ¥526 ¥476 $ 6,410
Interest costs on projected benefit obligation 221 215 211 2,658
Expected return on plan assets (192) (186) (205) (2,309)
Amortization of actuarial differences 224 194 171 2,694
Other expenses
(Defined Contribution, etc.) 141 174 144 1,695
Loss on abolishment of retirement
benefit plan 513 - - 6,170
Total ¥1,440 ¥923 ¥797 $17,318