Nikon 2004 Annual Report Download - page 33

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The liability for employees’ retirement benefits at March 31, 2004 and 2003 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
2004
$1,095,121
(675,224)
(220,347)
(5,920)
193,630
5,156
$198,786
2003
¥116,719
(53,439)
(42,960)
(721)
19,599
281
¥19,880
2004
¥115,743
(71,364)
(23,288)
(626)
20,465
545
¥21,010
Millions of Yen
The components of net periodic benefit costs for the fiscal years ended March 31, 2004 and 2003 were as follows:
Service cost
Interest cost
Expected return on plan assets
Recognized actuarial loss
Amortization of prior service cost
Net periodic benefit costs
Thousands of
U.S. Dollars
2004
$48,652
28,770
(12,441)
42,227
780
$107,988
2003
¥5,094
3,129
(1,583)
3,545
89
¥10,274
2004
¥5,142
3,041
(1,315)
4,463
82
¥11,413
Millions of Yen
Assumptions used for the fiscal years ended March 31, 2004 and 2003 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
2003
2.5%
2.0%
10 years
10 years
2004
2.5%
2.0%
10 years
10 years
8. SHAREHOLDERS’ EQUITY
The Company is subject to the Japanese Commercial Code (the “Code”) to which various amendments have become effective since October
1, 2001.
The Code was revised whereby common stock par value was eliminated resulting in all shares being recorded with no par value and at
least 50% of the issue price of new shares is required to be recorded as common stock and the remaining net proceeds as additional paid-in
capital, which is included in capital surplus. The Code permits Japanese companies, upon approval of the Board of Directors, to issue shares
to existing shareholders without consideration as a stock split. Such issuance of shares generally does not give rise to changes within the
shareholders’ accounts.
The revised Code also provides that an amount at least equal to 10% of the aggregate amount of cash dividends and certain other
appropriations of retained earnings associated with cash outlays applicable to each period shall be appropriated as a legal reserve (a compo-
nent of retained earnings) until such reserve and additional paid-in capital equals 25% of common stock. The amount of total additional
paid-in capital and legal reserve that exceeds 25% of the common stock may be available for dividends by resolution of the shareholders.
In addition, the Code permits the transfer of a portion of additional paid-in capital and legal reserve to the common stock by resolution of the
Board of Directors.
The revised Code eliminated restrictions on the repurchase and use of treasury stock allowing Japanese companies to repurchase treasury
stock by a resolution of the shareholders at the general shareholders meeting and dispose of such treasury stock by resolution of the Board of
Directors. The repurchased amount of treasury stock cannot exceed the amount available for future dividends plus the amounts common stock,
additional paid-in capital or legal reserve to be reduced in the case where such reduction was resolved at the general shareholders meeting.
The amount of retained earnings available for dividends under the Code was ¥50,209 million ($475,057 thousand) as of March 31, 2004,