Olympus 2011 Annual Report Download - page 50

48 OLYMPUS 2011
The aggregate annual maturities of long-term debt subsequent to March 31, 2011 were as follows:
Millions of yen
Thousands of
U.S. dollars
2012 ........................................................................................................................................................ ¥ 63,441 $ 793,013
2013 ........................................................................................................................................................ 48,339 604,238
2014 ........................................................................................................................................................ 104,441 1,305,512
2015 ........................................................................................................................................................ 88,219 1,102,738
2016 ........................................................................................................................................................ 51,778 647,225
Thereafter .............................................................................................................................................. 228,475 2,855,937
Total ..................................................................................................................................................... ¥ 584,693 $ 7,308,663
10. NOTES AND ACCOUNTS PAYABLE
Notes and accounts payable as of March 31, 2011 and 2010, consisted of the following:
Millions of yen
Thousands of
U.S. dollars
2011 2010 2011
Unconsolidated subsidiaries and affiliates ................................................................... ¥ 144 ¥ 189 $ 1,800
Trade ............................................................................................................................ 68,571 73,885 857,138
Total ............................................................................................................................. ¥ 68,715 ¥ 74,074 $ 858,938
11. SEVERANCE AND RETIREMENT ALLOWANCE
The Company and its consolidated subsidiaries adopted accounting standards for employees' severance and retirement benefits, under
which the liabilities and expenses for severance and retirement benefits are determined based on the amounts obtained by actuarial
calculations.
The liabilities for severance and retirement allowance included in the liability section of the consolidated balance sheets as of March 31,
2011 and 2010, consisted of the following:
Millions of yen
Thousands of
U.S. dollars
2011 2010 2011
Projected benefit obligation ......................................................................................... ¥ 129,851 ¥ 135,781 $ 1,623,138
Unrecognized prior service costs .................................................................................. 8,717 125 108,963
Unrecognized actuarial difference ................................................................................ (18,054) (14,354) (225,675)
Fair value of pension assets ......................................................................................... (124,724) (123,472) (1,559,050)
Prepaid pension expenses ............................................................................................ 23,008 21,808 287,600
Allowance for employees’ severance and retirement benefits ...................................... 18,798 19,888 234,975
Severance and retirement allowance for directors and corporate auditors ................... 156 147 1,950
Total severance and retirement allowance ................................................................... ¥ 18,954 ¥ 20,035 $ 236,925
Effective September 30, 2010, certain domestic subsidiaries amended their retirement allowance plans so that a portion of the benefits
under these plans was transferred to a newly established defined benefit plan. In addition these subsidiaries have implemented defined
contribution plans. As a result, negative prior service costs of ¥9,703 million ($121,288 thousand) were recorded.
Included in the consolidated statements of operations for the years ended March 31, 2011 and 2010, were employees' severance and
retirement benefit expenses comprising the following:
Millions of yen
Thousands of
U.S. dollars
2011 2010 2011
Service costs—benefits earned during the year ........................................................... ¥ 6,588 ¥ 6,407 $ 82,350
Interest cost on projected benefit obligation ................................................................ 4,024 3,820 50,300
Expected return on plan assets .................................................................................... (5,488) (5,138) (68,600)
Amortization of actuarial difference ............................................................................. 3,950 5,034 49,375
Amortization of prior service costs ............................................................................... (1,070) (802) (13,375)
Severance and pension benefit expenses ..................................................................... 8,004 9,321 100,050
Implementation of defined contribution plans .............................................................. 268 — 3,350
Total ............................................................................................................................. ¥ 8,272 ¥ 9,321 $ 103,400
The discount rates used by the Company were mainly 2.0% in fiscal 2011 and 2010. The rate of expected return on plan assets used by
the Company is mainly 4.0% in fiscal 2011 and 2010. The estimated amount of all retirement benefits to be paid at the future retirement
date is allocated equally to each service year using the estimated number of total service years. Prior service costs were recognized as