Omron 2007 Annual Report Download - page 69

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68
Measurement Date
Components of net Periodic Benefit Cost
The Company and certain of its domestic subsidiaries use March
31 as the measurement date for projected benefit obligation
and plan assets of the termination and retirement benefits.
During the year ended March 31, 2006, the companies changed
the measurement date from December 31 to March 31. The
purpose of this change was to enable more timely reflection of
factors, such as the effect of plan amendments and fluctuation
of number of employees in accounting for the termination and
retirement benefits, in the projected benefit obligation and retire-
ment benefit expense.
A cumulative effect (net of tax) of this change was recog-
nized in the consolidated statement of income for the year ended
March 31, 2006, which reduced net income for the period by
¥1,201 million.
The expense recorded for the contributory termination and retirement plans included the following components for the years ended
March 31:
The estimated net actuarial loss and prior service benefit that
will be amortized from accumulated other comprehensive income
(loss) into net periodic benefit cost for the year ending March
31, 2008 are summarized to the right:
Assumptions
Weighted-average assumptions used to determine benefit obligations at March 31, 2007 and 2006 are as follows:
Service cost, less employees’ contributions
Interest cost on projected benefit obligation
Expected return on plan assets
Amortization
Settlement loss
Derecognition of previously accrued salary progression
Net periodic benefit cost
2006
2007 2005 2007
Millions of yen Thousands of
U.S. dollars
¥5,822
5,022
(4,301)
2,565
—
—
¥9,108
$33,508
26,195
(28,907)
5,186
—
—
$35,982
¥3,979
3,926
(3,620)
2,336
38,294
(8,870)
¥36,045
¥3,954
3,091
(3,411)
612
—
—
¥4,246
Discount rate
Compensation increase rate
2007 2006
2.0%
2.0%
2.0%
2.0%
Net actuarial loss
Prior service cost
Thousands of
U.S. dollars
Millions of yen
$21,008
(15,703)
¥2,479
(1,853)
The accumulated benefit obligation at March 31 was as follows:
Accumulated benefit obligation
2007
$ 1,271,568
2006
¥ 151,959
2007
Thousands of
U.S. dollars
Millions of yen
¥ 150,045
The unrecognized net actuarial loss and the prior service benefit are being amortized over 15 years.