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43
NIKON CORPORATION ANNUAL REPORT 2012
FINANCIAL SECTION
auditors, in accordance with the resolution at the Annual
General Shareholders’ Meeting. This led to a reduction to zero
of the provision for retirement benefits for officers, which used
to be included in retirement benefit obligation, and the posting
of the amount of final payment as long-term accounts
payable—other.
Consequently, provision for retirement benefits for officers
is excluded from retirement benefit obligation.
The liability for employees’ retirement benefits at March 31, 2011 and 2012 consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2011 2012 2012
Projected benefit obligation ¥106,517 ¥114,775 $1,396,457
Fair value of plan assets (84,657) (105,686) (1,285,875)
Unrecognized actuarial gain and loss (13,793) (19,410) (236,161)
Unrecognized prior service cost 6,211 5,026 61,151
14,278 (5,295) (64,428)
Prepayment of service cost 673 8,995 109,448
Net liability ¥ 14,951 ¥ 3,700 $ 45,020
The plan assets include contributions to the employee retirement benefit trust of ¥2,544 million and ¥14,358 million
($174,696 thousand) at March 31, 2011 and 2012, respectively.
The components of net periodic benefit costs for the fiscal years ended March 31, 2011 and 2012 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2011 2012 2012
Service cost ¥3,428 ¥3,447 $41,935
Interest cost 2,775 2,766 33,650
Expected return on plan assets (2,000) (2,035) (24,765)
Recognized actuarial loss 3,953 2,997 36,466
Amortization of prior service cost (1,899) (1,901) (23,113)
Net periodic retirement benefit costs ¥6,257 ¥5,274 $64,173
In addition to the above, the Company and certain of its overseas subsidiaries charged contributions of ¥1,794 million and
¥1,857 million ($22,598 thousand) to the defined-contribution pension plan to income during the fiscal years ended March 31, 2011
and 2012, respectively.
Assumptions used for the fiscal years ended March 31, 2011 and 2012 were principally as set forth below:
2011 2012
Discount rate 2.50% 1.80%
Expected rate of return on plan assets 2.00% 2.00%
Recognition period of actuarial gain (loss) 10 years 10 years
Amortization period of prior service cost 10 years 10 years
8. Equity
Japanese companies are subject to the Companies Act of
Japan (the “Companies Act”). The significant provisions in the
Companies Act that affect financial and accounting matters
are summarized below:
(a) Dividends
Under the Companies Act, companies can pay dividends at any
time during the fiscal year in addition to the year-end dividend
upon resolution at the shareholders’ meeting. For companies
that meet certain criteria, such as: (1) having the Board of
Directors, (2) having independent auditors, (3) having the
Board of Corporate Auditors, and (4) the term of service of the
directors is prescribed as one year rather than two years of
normal term by its articles of incorporation, the Board of
Directors of such company may declare dividends (except
for dividends in kind) at any time during the fiscal year if the
company has prescribed so in its articles of incorporation.
The Company meets all the above criteria.