Casio 2009 Annual Report Download - page 40

38 CASIO COMPUTER CO., LTD.
Included in the consolidated statements of operations for the years ended March 31, 2009 and 2008 are provision for retire-
ment benefit expenses comprised of the following:
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Service cost—benefits earned during the year .................................................... ¥3,567 ¥3,136 $36,398
Interest cost on projected benefit obligation ...................................................... 1,597 1,495 16,296
Expected return on plan assets ........................................................................... (1,527) (1,791) (15,582)
Amortization of prior service costs ..................................................................... (871) (908) (8,888)
Amortization of actuarial differences .................................................................. 1,474 415 15,041
Amortization of net transition obligation ............................................................ 1,170 1,170 11,939
Other ................................................................................................................. 152 125 1,551
Provision for retirement benefit expenses ...................................................... ¥5,562 ¥3,642 $56,755
The discount rate and the rate of expected return on plan assets used by the Company are 2.5% and 3.0% in both 2009 and
2008.
The estimated amount of all retirement benefits to be paid at the future retirement date is allocated equally to each service year
using the estimated number of total service years. Actuarial gains and losses are to be recognized in expenses using the straight-line
method over 9–15 years (a certain period not exceeding the average of the estimated remaining service lives commencing with the
next period). Prior service costs are to be recognized in expenses using the straight-line method over 9–15 years (a certain period
not exceeding the average of the estimated remaining service lives).
11. Provision for Directors’ Retirement Benefits
The Company and certain subsidiaries provide for retirement allowance to directors and corporate auditors at an estimate of the
amount which would be required to be paid if all directors and corporate auditors had retired at each balance sheet date.
12. Net Assets
Under the Japanese Corporation Law (“the Law”) and regulations, the entire amount paid for new shares is required to be desig-
nated as capital 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.
In cases where 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 capital 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.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. However, 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 the Law.
Notes to Consolidated Financial Statements Years ended March 31, 2009 and 2008 Casio Computer Co., Ltd. and Subsidiaries