Nikon 2003 Annual Report Download - page 33

Download and view the complete annual report

Please find page 33 of the 2003 Nikon 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 46

  • 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

31
As is customary in Japan, the Company maintains substantial deposit balances with banks with which it has borrowings. Such deposit
balances are not legally or contractually restricted as to withdrawal.
General agreements with respective banks provide, as is customary in Japan, that additional collateral must be provided under certain
circumstances if requested by such banks and that certain banks have the right to offset cash deposited with them against any long-term or
short-term debt or obligation that becomes due and, in case of default and certain other specified events, against all other debts payable to
the banks. The Group has never been requested to provide any additional collateral.
6. RETIREMENT AND PENSION PLANS
The Company and major domestic subsidiaries have non-contributory funded pension plans covering substantially all of its employees. Certain
foreign subsidiaries also have contributory pension plans. Under the pension plan, employees terminating their employment are, in most cir-
cumstances, entitled to pension benefits determined by reference to basic rates of pay at the time of termination, length of service and certain
other factors.
The liability for employees’ retirement benefits at March 31, 2003 and 2002 consisted of the followings:
Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial loss
Unrecognized prior service cost
Prepayment of service cost
Net Liability
Thousands of
U.S. Dollars
2003
$971,038
(444,587)
(357,402)
(6,001)
163,048
2,339
$165,387
2002
¥115,380
(66,437)
(31,589)
17,354
65
¥17,419
2003
¥116,719
(53,439)
(42,960)
(721)
19,599
281
¥19,880
Millions of Yen
The components of net periodic benefit costs for the fiscal years ended March 31, 2003 and 2002 were as follows:
Service cost
Interest cost
Expected return on plan assets
Amortization of transitional obligation
Recognized actuarial loss
Amortization of prior actuarial cost
Net periodic benefit costs
Thousands of
U.S. Dollars
2003
$42,382
26,033
(13,172)
29,491
741
$85,475
2002
¥4,039
3,080
(2,739)
9,755
1,133
¥15,268
2003
¥5,094
3,129
(1,583)
3,545
89
¥10,274
Millions of Yen
Assumptions used for the fiscal years ended March 31, 2003 and 2002 were principally set forth as follows:
Discount rate
Expected rate of return on plans assets
Recognition period of actuarial gain (loss)
Amortization period of prior service cost
Amortization period of transitional obligation
2002
2.5%
4.0%
10 years
2 years
2003
2.5%
2.0%
10 years
10 years