Nikon 2001 Annual Report Download - page 29

page 27
6. RETIREMENT AND PENSION PLANS
The Company and major subsidiaries have non-contributory funded pension plans covering substantially all of its employees. Certain foreign
subsidiaries also have contributory pension plans.
Effective April 1, 2000, the Group adopted a new accounting standard for employees’ retirement benefits.
The liability for employees’ retirement benefits at March 31, 2001 consisted of the following:
Thousands of
Millions of Yen U.S. Dollars
Projected benefit obligation ¥ 95,988 $ 774,721
Fair value of plan assets (63,942) (516,075)
Unrecognized actuarial gain (12,279) (99,104)
Unrecognized transitional obligation (9,743) (78,638)
Net Liability ¥ 10,024 $ 80,904
The components of net periodic benefit costs for the year ended March 31, 2001 were as follows:
Thousands of
Millions of Yen U.S. Dollars
Service cost ¥ 3,861 $ 31,161
Interest cost 3,190 25,750
Expected return on plans assets (2,477) (19,992)
Amortization of transitional obligation 16,459 132,843
Net periodic benefit costs ¥ 21,033 $ 169,762
Assumptions used for the year ended March 31, 2001 were principally set forth as follows:
Discount rate 3.0%
Expected rate of return on plans assets 4.0%
Recognition period of actuarial gain (loss) 10 years
Amortization period of transitional obligation 2 years
7. SHAREHOLDERS’ EQUITY
The Japanese Commercial Code (the “Code”) requires at least 50% of the issue price of new shares, with a minimum of the par value thereof,
to be designated as stated capital as determined by resolution of the Board of Directors. Proceeds in excess of amounts designated as stated
capital are credited to additional paid-in capital. The Code also requires companies to appropriate from retained earnings to legal reserve an
amount equal to at least 10% of all cash payments which are made as an appropriation of retained earnings until such reserve equals 25% of
stated capital. The Company may transfer portions of additional paid-in capital and legal reserve to stated capital by resolution of the Board of
Directors. The Company may also transfer portions of unappropriated retained earnings, available for dividends, to stated capital by resolution
of the shareholders.
Under the Code, the Company may issue new shares of common stock to existing shareholders without consideration as a stock split pur-
suant to resolution of the Board of Directors. The Company may make such a stock split to the extent that the aggregate par value of the
shares outstanding after the stock split does not exceed the stated capital. However, the amount calculated by dividing the total amount of
shareholders’ equity by the number of outstanding shares after the stock split shall not be less than ¥50.
Dividends are approved by the shareholders at a meeting held subsequent to the fiscal year to which the dividends are applicable. Interim
dividends may also be paid upon resolution of the Board of Directors, subject to certain limitations imposed by the Code.
Under the Code, the Company may resolve to repurchase its treasury stock for retirement and related reduction of retained earnings pur-
suant to resolution of the Board of Directors, subject to approval by the shareholders.