Canon 2007 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 of the 2007 Canon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

82
Other changes in plan assets and benefit obligations
recognized in other comprehensive income (loss) for the year
ended December 31, 2007 were summarized as follows:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES
Japanese plans Foreign plans
Thousands of Thousands of
Millions of yen U.S. dollars Millions of yen U.S. dollars
Current year actuarial (gain) loss ¥ 32,321 $ 283,518 ¥(149) $(1,307)
Amortization of actuarial loss (4,868) (42,702) (887) (7,780)
Prior service credit due to amendments (101,620) (891,404) — —
Amortization of prior service credit 13,479 118,237 86 754
Amortization of net transition obligation (722) (6,333) — —
¥ (61,410) $(538,684) ¥(950) $(8,333)
The estimated net transition obligation, prior service credit
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:
Japanese plans Foreign plans
Thousands of Thousands of
Millions of yen U.S. dollars Millions of yen U.S. dollars
Net transition obligation ¥ 722 $ 6,333 ¥ — $ —
Prior service credit (13,361) (117,202) (86) (754)
Actuarial loss 6,685 58,640 849 7,447
Components of net periodic benefit cost and other
amounts recognized in other comprehensive income (loss)
Net periodic benefit cost for Canon’s employee retirement and
severance defined benefit plans for the years ended December
31, 2007, 2006 and 2005 consisted of the following components:
Years ended December 31 Japanese plans Foreign plans
Thousands of Thousands of
Millions of yen U.S. dollars Millions of yen U.S. dollars
2007 2006 2005 2007 2007 2006 2005 2007
Service cost ¥ 20,161 ¥ 23,916 ¥ 22,799 $ 176,851 ¥ 4,016 ¥ 3,483 ¥ 3,002 $ 35,228
Interest cost 11,888 13,411 12,769 104,281 4,947 3,898 3,403 43,395
Expected return on plan assets (21,148) (21,705) (15,964) (185,509) (5,427) (4,494) (3,687) (47,605)
Amortization of
net transition obligation 722 345 345 6,333 — —— —
Amortization of
prior service credit (13,479) (7,436) (6,855) (118,237) (86) (113) (1,152) (754)
Amortization of actuarial loss 4,868 3,377 8,222 42,702 887 402 2,320 7,780
¥ 3,012 ¥ 11,908 ¥ 21,316 $ 26,421 ¥ 4,337 ¥ 3,176 ¥ 3,886 $ 38,044
Assumptions
Weighted-average assumptions used to determine benefit
obligations are as follows:
December 31 Japanese plans Foreign plans
2007 2006 2007 2006
Discount rate 2.5% 2.5% 5.1% 4.5%
Assumed rate of increase in future compensation levels 2.9% 2.9% 3.1% 2.9%