Omron 2004 Annual Report Download - page 53

51
Periodic pension benefits required under the substitutional portion are prescribed by the Japanese Ministry of Health, Labour and
Welfare, commence at age 65 and continue until the death of the surviving spouse. Benefits under the additional portion are usually
paid in a lump sum at the earlier of termination or retirement although periodic payments are available under certain conditions.
In January 2003, Emerging Issues Task Force ("EITF") reached a final consensus on Issue 03-2, “Accounting for the Transfer to the
Japanese Government of the Substitutional Portion of Employee Pension Fund Liabilities.” EITF Issue 03-2 addresses accounting for a
transfer to the Japanese government of a substitutional portion of an Employees’ Pension Fund plan.
The process of separating the substitutional portion from the corporate portion occurs in four phases. EITF Issue 03-2 requires that
the separation process should be accounted for upon completion of the transfer to the government of the substitutional portion of the
benefit obligation and related plan assets as the culmination of a series of steps in a single settlement transaction. Under the consensus
reached, at the time the assets are transferred to the government in an amount sufficient to complete the separation process, the
transaction is considered to be complete and the elimination of the entire substitutional portion of the benefit obligation would be
accounted for as a settlement at that time. The difference between the obligation settled and the assets transferred to the government
should be accounted for as a subsidy from the government.
On April 26, 2004, the Company received the Japanese government’s approval of exemption from the obligation for benefits related
to future employee service under the substitutional portion of its pension plan. The effect on the consolidated financial statements of the
future transfer of the assets and liabilities related to the substitutional portion of its pension plan has not yet been determined
Obligations and Funded status
The following table is the reconciliation of beginning and ending balances of the benefit obligations and the fair value of the plan assets
at March 31:
Change in benefit obligation:
Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Service cost, less employees’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employees’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlement paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in plan assets:
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employers’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employees’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecognized net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecognized prior service credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecognized transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amounts recognized in the consolidated balance sheets:
Accrued liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive loss (gross of tax) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥(232,178
9,611
5,804
942
13,340
(8,829)
(4,668)
¥(248,378
119,487
(17,608)
6,233
942
(3,743)
¥,105,311
(143,067)
113,301
(3,904)
268
¥1(33,402)
¥(117,382)
83,980
¥0(33,402)
¥,222,693
¥248,378
7,981
4,968
931
2,813
(4,443)
(981)
¥259,647
105,311
8,368
5,789
931
(3,228)
¥117,171
(142,476)
108,395
(3,603)
—
¥(37,684)
¥(115,784)
78,100
¥(37,684)
¥232,955
$ 2,343,189
75,292
46,868
8,783
26,538
(41,915)
(9,255)
$ 2,449,500
993,500
78,943
54,613
8,783
(30,453)
$ 1,105,386
(1,344,114)
1,022,594
(33,991)
—
$ (355,511)
$(1,092,302)
736,792
$ (355,510)
$ 2,197,689
Thousands of
U.S. dollars
Millions of yen
2003 20042004