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80
December 31 Japanese plans Foreign plans
Thousands of Thousands of
Millions of yen U.S. dollars Millions of yen U.S. dollars
2007 2006 2007 2007 2006 2007
Change in benefit obligations:
Benefit obligations at beginning of year ¥ 578,086 ¥539,212 $5,070,930 ¥110,505 ¥ 81,281 $ 969,342
Service cost 20,161 23,916 176,851 4,016 3,483 35,228
Interest cost 11,888 13,411 104,281 4,947 3,898 43,395
Plan participants’ contributions ——— 1,613 1,412 14,149
Amendments (101,620) (954) (891,404) — ——
Actuarial gain (loss) (4,623) 13,200 (40,553) (3,293) 10,386 (28,886)
Benefits paid (12,888) (11,413) (113,053) (3,177) (1,651) (27,868)
Acquisition 2,474 714 21,702 — ——
Foreign currency exchange rate changes ——— (778) 11,696 (6,825)
Benefit obligations at end of year 493,478 578,086 4,328,754 113,833 110,505 998,535
Change in plan assets:
Fair value of plan assets at beginning
of year 520,476 475,344 4,565,579 87,173 70,174 764,676
Actual return on plan assets (15,796) 14,803 (138,562) 2,283 4,055 20,026
Employer contributions 17,510 41,422 153,596 4,210 3,559 36,930
Plan participants’ contributions ——— 1,613 1,412 14,149
Benefits paid (12,498) (11,413) (109,632) (2,242) (1,651) (19,667)
Acquisition 1,758 320 15,422 — ——
Foreign currency exchange rate changes ——— (129) 9,624 (1,132)
Fair value of plan assets at end of year 511,450 520,476 4,486,403 92,908 87,173 814,982
Funded status at end of year ¥ 17,972 ¥ (57,610) $ 157,649 ¥ (20,925) ¥ (23,332) $(183,553)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES
comprehensive income (loss), net of tax. The adjustment to
accumulated other comprehensive income (loss) at adoption
represented the unrecognized actuarial loss, unrecognized prior
service credit, and unrecognized net transition obligation, all of
which were previously netted against the plans’ funded status
in the consolidated balance sheet pursuant to the provisions of
SFAS 87. These amounts are subsequently recognized as net
periodic benefit cost pursuant to Canon’s historical accounting
policy for amortizing such amounts. Further, actuarial gains and
losses that arise in subsequent periods and are not recognized
as net periodic benefit cost in the same periods are recognized
as a component of other comprehensive income (loss). Those
amounts are subsequently recognized as a component of net
periodic benefit cost on the same basis as the amounts recog-
nized in accumulated other comprehensive income (loss) at
adoption of SFAS 158. The adoption of SFAS 158 had no effect
on the consolidated statement of income for the year ended
December 31, 2006, or for any prior period presented, and it
will not affect Canon’s operating results in future periods.
Obligations and funded status
Reconciliations of beginning and ending balances of the benefit
obligations and the fair value of the plan assets are as follows: