Canon 2006 Annual Report Download - page 79

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The accumulated benefit obligation for all defined benefit
plans was as follows:
December 31 Thousands of
Millions of yen U.S. dollars
2006 2005 2006
Accumulated benefit obligation ¥ 641,199 578,627 $5,388,227
December 31 Thousands of
Millions of yen U.S. dollars
2006 2005 2006
Plans with projected benefit obligations in excess of plan assets:
Projected benefit obligations ¥ 656,722 587,162 $5,518,673
Fair value of plan assets 572,756 510,287 4,813,076
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligations 608,812 545,375 5,116,067
Fair value of plan assets 568,615 506,634 4,778,277
The projected benefit obligations and the fair value of plan
assets for the pension plans with projected benefit obligations
in excess of plan assets, and the accumulated benefit obligations
and the fair value of plan assets for the pension plans with
accumulated benefit obligations in excess of plan assets are
as follows:
77
Components of Net Periodic Benefit Cost
Net periodic benefit cost for Canon’s employee retirement and
Year ended December 31 Thousands of
Millions of yen U.S. dollars
2006 2005 2004 2006
Service cost ¥27,399 25,801 26,571 $230,244
Interest cost 17,309 16,172 19,108 145,454
Expected return on plan assets (26,199) (19,651) (17,054) (220,160)
Amortization of net transition obligation 345 345 344 2,899
Amortization of prior service cost (7,549) (8,007) (6,814) (63,437)
Recognized actuarial loss 3,779 10,542 12,505 31,756
Settlement loss resulting from plan termination —— 2,784 —
Settlement loss resulting from transfer of
substitutional portion of EPFs to the Japanese government ——69,651 —
¥ 15,084 25,202 107,095 $ 126,756
severance defined benefit plans for the years ended December
31, 2006, 2005 and 2004 consisted of the following components:
The above prior service cost that will be amortized over the
next year includes amortization amounting to ¥5,834 million
($49,025 thousand) of prior service cost resulting from the plan
amendment effective January 1, 2007.
The estimated net transition obligation, prior service cost
and actuarial loss for the defined benefit pension plans that
will be amortized from accumulated other comprehensive
income (loss) into net periodic benefit cost over the next year
are summarized as follows.
Thousands of
Millions of yen U.S. dollars
Net transition obligation ¥ 345 $ 2,899
Prior service cost (13,491) (113,370)
Actuarial loss 6,100 51,261