Omron 2009 Annual Report Download - page 77

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75
Components of net Periodic Benefit Cost
The expense recorded for the contributory termination and retirement plans included the following components for the years
ended March 31:
2008 2007
2009
Service cost, less employees’ contributions
Interest cost on projected benefit obligation
Expected return on plan assets
Amortization
Net periodic benefit cost
Millions of yen
Thousands of
U.S. dollars
¥ 3,976
3,180
(3,128)
826
¥ 4,854
¥ 3,992
3,091
(2,955)
625
¥ 4,753
¥ 3,954
3,091
(3,411)
612
¥ 4,246
2009
$ 40,571
32,449
(31,918)
8,429
$ 49,531
The estimated net actuarial loss and prior service benefit
that will be amortized from accumulated other compre-
hensive income (loss) into net periodic benefit cost for the
year ending March 31, 2010 are summarized as follows:
The unrecognized net actuarial loss and the prior service benefit are being amortized over 15 years.
Net actuarial loss
Prior service cost
Thousands of
U.S. dollars
Millions of yen
$ 27,806
(18,908)
¥ 2,725
(1,853)
Measurement Date
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.
Assumptions
Weighted-average assumptions used to determine benefit obligations at March 31, 2009 and 2008 are as follows:
Discount rate
Compensation increase rate
2009 2008
2.0%
2.0%
2.0%
2.0%
Weighted-average assumptions used to termination and retirement benefit cost for the years ended March 31, 2009,
2008 and 2007 are as follows:
The expected return on plan assets is determined by estimating the future rate of return on each category of plan assets
considering actual historical returns and current economic trends and conditions.
Discount rate
Compensation increase rate
Expected long-term rate of return on plan assets
2008
2009 2007
2.0%
2.0%
3.0%
2.0%
2.0%
3.0%
2.0%
2.0%
3.0%
Plan Assets
The Company’s pension plan weighted-average asset allocation (except for assets in retirement benefit trust) by asset cat-
egory is as follows:
Asset category
Cash
Equity securities
Debt securities
Life insurance company general accounts
Other
Total
2009
0.9%
19.4%
44.5%
17.1%
18.1%
100.0%
2008
1.7%
16.3%
48.4%
14.6%
19.0%
100.0%