Olympus 2014 Annual Report Download - page 45

(2) For the year ended March 31, 2014
Employees of the Company and certain consolidated subsidiaries have funded defi ned benefi t pension plans, defi ned contribution plans
andunfunded retirement allowance plans. The Company and certain consolidated subsidiaries have cash balance plans by applying a point
pension system to the defi ned contribution pension plans.
Directors and corporate auditors of several domestic consolidated subsidiaries have unfunded retirement allowance plans.
The amounts of pension payments and retirement allowances are generally determined on the basis of length of service and basic salary
at the time of termination of service.
It is the Company’s policy to fund amounts required to maintain suffi cient plan assets to provide for accrued benefi ts.
The changes in retirement benefi t obligation during the year ended March 31, 2014 were as follows (excluding retirement benefi t obligation
for the consolidated subsidiaries adopting the simplifi ed method):
Millions of yen
Thousands of
U.S. dollars
2014 2014
Retirement benefi t obligation at April 1, 2013 ..................................................................................................................... ¥155,208 $1,506,874
Service costs ................................................................................................................................................................. 6,003 58,282
Interest cost ................................................................................................................................................................... 4,854 47,126
Actuarial gain ................................................................................................................................................................. (274) (2,660)
Retirement benefi t paid .................................................................................................................................................. (4,385) (42,573)
Prior service cost ........................................................................................................................................................... (3) (29)
Effect of foreign exchange translation ............................................................................................................................. 10,072 97,786
Other ............................................................................................................................................................................. 162 1,573
Retirement benefi t obligation at March 31, 2014 ................................................................................................................ ¥171,637 $1,666,379
The changes in plan assets during the year ended March 31, 2014 were as follows:
Millions of yen
Thousands of
U.S. dollars
2014 2014
Plan assets at April 1, 2013 ............................................................................................................................................... ¥152,476 $1,480,350
Expected return on plan assets ...................................................................................................................................... 7,106 68,990
Actuarial gain ................................................................................................................................................................. 3,058 29,689
Contributions by the Company ....................................................................................................................................... 5,418 52,602
Retirement benefi t paid .................................................................................................................................................. (3,927) (38,126)
Effect of foreign exchange translation ............................................................................................................................. 11,025 107,039
Other ............................................................................................................................................................................. 40 388
Retirement benefi t obligation at March 31, 2014 ................................................................................................................ ¥175,196 $1,700,932
The changes in retirement benefi t obligation for the consolidated subsidiaries adopting the simplifi ed method were as follows:
Millions of yen
Thousands of
U.S. dollars
2014 2014
Provision for retirement benefi ts at April 1, 2013 ................................................................................................................ ¥2,618 $25,417
Retirement benefi t expense ............................................................................................................................................ 339 3,291
Retirement benefi t paid .................................................................................................................................................. (222) (2,155)
Other ............................................................................................................................................................................. (102) (990)
Liability for retirement benefi ts at March 31, 2014 .............................................................................................................. ¥2,633 $25,563
The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of March 31,
2014 for the Company’s and the consolidated subsidiaries’ defi ned benefi t plans:
Millions of yen
Thousands of
U.S. dollars
2014 2014
Funded retirement benefi t obligation .................................................................................................................................. ¥ 162,627 $ 1,578,903
Plan assets at fair value ..................................................................................................................................................... (175,196) (1,700,932)
(12,569) (122,029)
Unfunded retirement benefi t obligation ............................................................................................................................... 11,643 113,039
Net liability for retirement benefi ts in the balance sheet ...................................................................................................... (926) (8,990)
Liability for retirement benefi ts ............................................................................................................................................ 27,291 264,961
Net defi ned benefi t assets ................................................................................................................................................. (28,217) (273,951)
Net amount ....................................................................................................................................................................... ¥ (926) $ (8,990)
The components of retirement benefi t expense for the year ended March 31, 2014 were as follows:
Millions of yen
Thousands of
U.S. dollars
2014 2014
Service costs ................................................................................................................................................................. ¥ 6,003 $ 58,282
Interest cost on projected benefi t obligation ................................................................................................................... 4,854 47,126
Expected return on plan assets ...................................................................................................................................... (7,106) (68,990)
Amortization of actuarial loss .......................................................................................................................................... 4,506 43,748
Amortization of prior service costs .................................................................................................................................. (1,886) (18,311)
Retirement benefi t expense for consolidated subsidiaries adopting the simplifi ed method .............................................. 339 3,291
Other ............................................................................................................................................................................. 73 709
Retirement benefi t expense ............................................................................................................................................... ¥ 6,783 $ 65,855
Unrecognized prior service cost and unrecognized actuarial loss included in accumulated other comprehensive income (before tax effect) as
of March 31, 2014 were as follows:
Millions of yen
Thousands of
U.S. dollars
2014 2014
Unrecognized prior service cost ......................................................................................................................................... ¥ (2,721) $ (26,417)
Unrecognized actuarial loss ............................................................................................................................................... 10,858 105,417
Total .................................................................................................................................................................................. ¥ 8,137 $ 79,000
The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2014 were as follows:
2014
Bonds ............................................................................................................................................................................................................. 41%
Stocks ............................................................................................................................................................................................................. 28%
General accounts ............................................................................................................................................................................................ 27%
Other ............................................................................................................................................................................................................... 4%
Total ................................................................................................................................................................................................................ 100%
The expected return on assets has been estimated based on the current and anticipated allocation to each asset class and the expected
long-term returns on assets held in each category.
The assumptions used in accounting for the above plans were as follows:
Discount rate ................................................................................................................................................................................................... mainly 1.5%
Expected rate of return on plan assets ............................................................................................................................................................. mainly 4.0%
The amount of the contribution to the defi ned contribution plans was ¥3,498 million ($33,961 thousand) for the year ended March
31, 2014.
12. Allowance for Doubtful Accounts
The non-current allowance for doubtful accounts primarily represents an allowance recorded upon the consequences of the fi ndings as
discussed in Note 1 “Summary of signifi cant accounting policies” (a) “Basis of presenting consolidated fi nancial statements.” Illegitimate
payments for fees to external collaborators of ¥7,211 million ($70,010 thousand) were recorded as a non-current receivable andincluded
in non-current other assets on the balance sheets as of March 31, 2013 and 2014. The Company did not agree to the fees andis seeking
collection of the amounts paid; however, collection of such amounts was determined to be doubtful and full allowance wasrecorded
against the non-current receivable.
Notes to the Consolidated Financial Statements
87
OLYMPUS Annual Report 2014
86 OLYMPUS Annual Report 2014