Oki 2013 Annual Report Download - page 41

39
Annual Report 2013
8. RETIREMENT BENEFITS
The Company and domestic consolidated subsidiaries have a noncontributory defi ned benefi t pension plan and lump-sum retirement payment 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 retire-
ment payment plans to defi ned contribution pension plans on June 1, 2011.
Several overseas consolidated subsidiaries have defi ned benefi t and defi ned 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 benefi t trust.
The Company and 18 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, 2013 and 2012:
2. Financial instruments whose fair value is considered extremely diffi cult to assess
Unlisted equity securities (¥8,746 million ($94,043 thousand) and ¥7,921 million) and investments in a limited liability joint business partner-
ship (¥55 million ($591 thousand) and ¥77 million) at March 31, 2013 and 2012, respectively, are not included in (3) Securities and investments
in securities because they have no market price and it is deemed extremely diffi cult to assess their fair values.
(1) Certain domestic consolidated subsidiaries have applied a simplifi ed method, as permitted, to calculate their projected benefi t obligation.
(2) The above “Allowance for retirement benefi ts” does not include the “allowance for retirement benefi ts to directors and statutory audi-
tors.” Therefore, it differs from the retirement benefi ts reported in the accompanying consolidated balance sheets.
Components of net periodic pension cost for the years ended March 31, 2013 and 2012 were as follows:
(1) Special retirement payments of ¥372 million in the aggregate were made in addition to the net periodic pension cost presented in the
above table for the year ended March 31, 2012.
(2) The allowance for retirement benefi ts was determined by the simplifi ed method by certain consolidated subsidiaries and their net peri-
odic pension cost has been included in service cost of benefi ts earned during the year.
(3) Other cost is the contributions paid for defi ned contribution pension plans.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Millions of yen
Thousands of U.S.
dollars
2013 2012 2013
Projected benefi t obligation ¥ (111,578) ¥ (106,707) $ (1,199,763)
Fair value of plan assets 95,331 78,636 1,025,064
Funded status (16,247) (28,071) (174,698)
Transition differences arising from initial adoption
of new accounting standard for retirement benefi ts 4,242 6,363 45,612
Unrecognized actuarial gain or loss 1,732 13,950 18,623
Unrecognized prior service cost (9,550) (11,155) (102,688)
Obligation recognized in the consolidated balance sheets (19,823) (18,912) (213,150)
Prepaid pension cost
— — —
Allowance for retirement benefi ts ¥ (19,823) ¥ (18,912) $ (213,150)
Millions of yen
Thousands of U.S.
dollars
2013 2012 2013
Service cost during the year ¥ 3,311 ¥ 2,415 $ 35,602
Interest cost on projected benefi t obligation 2,279 2,503 24,505
Expected return on plan assets (1,965) (1,137) (21,129)
Amortization of obligation at transition 2,121 2,367 22,806
Amortization of actuarial difference 3,263 3,775 35,086
Amortization of prior service cost (1,604) (1,506) (17,247)
Other cost 2,064 1,657 22,193
Net periodic pension cost ¥ 9,469 ¥ 10,075 $ 101,817