Oki 2012 Annual Report Download - page 37

Annual Report 2012 35
20112012 2012
2012 2011 2012
2. Financial instruments whose fair value is considered extremely difficult to assess
Unlisted equity securities (¥7,921 million ($96,597 thousand) and ¥12,338 million) and investments in a limited liability joint business
partnership (¥77 million ($939 thousand) and ¥86 million) at March 31, 2012 and 2011, respectively, are not included in (3) Securities and
investments in securities because they have no market price and it is deemed extremely difficult to assess their fair values.
8. RETIREMENT BENEFITS
The Company and domestic consolidated subsidiaries have a noncontributory defined benefit pension plan and lump-sum retirement pay-
ment plans which cover substantially all employees who terminate their employment with the Group.
The Company and the domestic consolidated subsidiaries that joined the OKI Pension Fund transferred some portion of their lump-
sum retirement payment plans to defined contribution pension plans on June 1, 2011.
Several overseas consolidated subsidiaries have defined benefit and defined contribution pension plans.
Eligible employees, upon termination of their employment with the Group, may receive certain additional payments under the plans.
The Company has pension and retirement benefit trust.
The Company and 19 domestic consolidated subsidiaries joined the OKI Pension Fund which was established on January 1, 2005.
The following is a summary of the plans at March 31, 2012 and 2011:
Millions of yen
Millions of yen
Thousands of
U.S. dollars
Thousands of
U.S. dollars
Projected benefit obligation
Fair value of plan assets
Funded status
Transition differences arising from initial adoption
of new accounting standard for retirement benefits
Unrecognized actuarial gain or loss
Unrecognized prior service cost
Obligation recognized in the consolidated balance sheets
Prepaid pension cost
Allowance for retirement benefits
Service cost during the year
Interest cost on projected benefit obligation
Expected return on plan assets
Amortization of obligation at transition
Amortization of actuarial difference
Amortization of prior service cost
Other cost
Net periodic pension cost
¥ (106,707)
78,636
(28,071)
6,363
13,950
(11,155)
(18,912)
—
¥ (18,912)
¥ 4,305
2,948
(654)
3,598
3,736
(1,019)
—
¥ 12,915
¥ 2,415
2,503
(1,137)
2,367
3,775
(1,506)
1,657
¥ 10,075
¥ (114,979)
75,935
(39,043)
8,730
23,023
(9,061)
(16,350)
—
¥ (16,350)
$ (1,301,304)
958,975
(342,329)
77,597
170,121
(136,036)
(230,634)
—
$ (230,634)
$ 29,451
30,524
(13,865)
28,865
46,036
(18,365)
20,207
$ 122,865
(1) Certain domestic consolidated subsidiaries have applied a simplified method, as permitted, to calculate their projected benefit obligation.
(2) The above “Allowance for retirement benefits” does not include the “allowance for retirement benefits to directors and statutory audi-
tors.” Therefore, it differs from the retirement benefits reported in the accompanying consolidated balance sheets.
(3) Pursuant to a transfer of its lump-sum retirement payment plans to defined contribution plans, the projected benefit obligation of
¥29,157 million and the allowance for retirement benefits of ¥17,001 million were reduced for the year ended March 31, 2011.
Components of net periodic pension cost for the years ended March 31, 2012 and 2011 were as follows:
(1) Special retirement payments of ¥372 million ($4,536 thousand) and ¥11,807 million in the aggregate were made in addition to the net
periodic pension cost presented in the above table for the years ended March 31, 2012 and 2011, respectively.
(2) The allowance for retirement benefits was determined by the simplified method by certain consolidated subsidiaries and their net pe-
riodic pension cost has been included in service cost of benefits earned during the year.
(3) Other cost is the contributions paid for defined contribution pension plans.
(4) In addition to the net periodic pension cost presented in the above table, for the year ended March 31, 2011, a loss of ¥20,333 million
was caused by the transfer to defined contribution plans, and a change in method of accounting in certain domestic subsidiaries, and
it is included in “Loss on revision of retirement benefit plan.”