Nikon 2013 Annual Report Download - page 47

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NIKON CORPORATION ANNUAL REPORT 2013
FINANCIAL SECTION
The liability for employees’ retirement benefits at March 31, 2012 and 2013 consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2012 2013 2013
Projected benefit obligation ¥114,775 ¥117,246 $1,246,630
Fair value of plan assets (105,686) (119,398) (1,269,517)
Unrecognized actuarial gain (19,410) (10,845) (115,305)
Unrecognized prior service cost 5,026 2,644 28,112
(5,295) (10,353) (110,080)
Prepayment of service cost 8,995 13,230 140,666
Net liability ¥ 3,700 ¥ 2,877 $ 30,586
The plan assets include contributions to the employee retirement benefit trust of ¥14,358 million and ¥9,217 million
($98,004 thousand) at March 31, 2012 and 2013, respectively.
The components of net periodic benefit costs for the fiscal years ended March 31, 2012 and 2013 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2012 2013 2013
Service cost ¥3,447 ¥3,637 $38,674
Interest cost 2,766 2,362 25,112
Expected return on plan assets (2,035) (2,344) (24,926)
Recognized actuarial loss 2,997 1,485 15,791
Amortization of prior service cost (1,901) (1,999) (21,252)
Net periodic retirement benefit costs ¥5,274 ¥3,141 $33,399
In addition to the above, the Company and certain foreign subsidiaries charged contributions of ¥1,857 million and ¥2,212 million
($23,517 thousand) to the defined contribution pension plans to income during the fiscal years ended March 31, 2012 and 2013,
respectively.
Assumptions used for the fiscal years ended March 31, 2012 and 2013 were principally as set forth below:
2012 2013
Discount rate 1.80% 1.80%
Expected rate of return on plans 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.
The Companies Act permits companies to distribute dividends
in kind (noncash assets) to shareholders subject to a certain
limitation and additional requirements.
Semiannual interim dividends may also be paid once a year
upon resolution by the Board of Directors if the articles of incor-
poration of the company so stipulate. The Companies Act pro-
vides certain limitations on the amounts available for dividends
or the purchase of treasury stock. The limitation is defined as
the amount available for distribution to the shareholders, but
the amount of net assets after dividends must be maintained
at no less than ¥3 million.