Canon 2002 Annual Report Download - page 64

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62
Reconciliations of beginning and ending balances of the benefit
obligations and the fair value of the plan assets are as follows:
Thousands of
Millions of yen U.S. dollars
2002 2001 2002
Change in benefit obligations:
Benefit obligations at beginning of year ¥718,091 614,187 $ 5,984,092
Service cost 39,206 36,553 326,717
Interest cost 19,270 20,341 160,583
Plan participants’ contributions 3,825 3,517 31,875
Amendments —(56,664) —
Actuarial loss (gain) (1,916) 69,352 (15,967)
Benefits paid (13,019) (9,816) (108,492)
Other 995 40,621 8,292
Benefit obligations at end of year 766,452 718,091 6,387,100
Change in plan assets:
Fair value of plan assets at beginning of year 429,483 338,223 3,579,025
Actual return on plan assets (33,813) (34,942) (281,775)
Employer contributions 33,661 89,626 280,508
Plan participants’ contributions 3,825 3,517 31,875
Benefits paid (13,019) (9,816) (108,492)
Other 1,505 42,875 12,542
Fair value of plan assets at end of year 421,642 429,483 3,513,683
Funded status (344,810) (288,608) (2,873,417)
Unrecognized actuarial loss 329,240 295,664 2,743,667
Unrecognized prior service cost (52,773) (56,664) (439,775)
Unrecognized net transition obligation being recognized over 22 years 4,988 5,333 41,567
Net amount recognized ¥(63,355) (44,275) $ (527,958)
Amounts recognized in the consolidated balance sheets consist of:
Prepaid pension cost ¥2,664 1,394 $ 22,200
Accrued pension and serverance cost (285,129) (237,537) (2,376,075)
Intangible assets 144 —1,200
Accumulated other comprehensive income (loss), gross of tax 218,966 191,868 1,824,717
Net amount recognized ¥(63,355) (44,275) $ (527,958)
Employer contributions for the year ended December 31,
2001 include contribution of equity securities to an employee
pension trust. The fair value of those securities at the time of
contribution was ¥38,954 million.
The projected benefit obligation, accumulated benefit
obligation, and fair value of plan assets for the pension plans
with accumulated benefit obligations in excess of plan assets
were ¥709,881 million ($5,915,675 thousand), ¥650,339
million ($5,419,492 thousand) and ¥369,777 million
($3,081,475 thousand) as of December 31, 2002.
Directors and certain employees are not covered by the
programs described above. Benefits paid to such persons and
meritorious service payments are charged to income as paid,
since amounts vary with circumstances, and it is therefore not
practicable to compute the liability for future payments.
CANON INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED