Omron 2010 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2010 Omron annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

89
Financial Section (U.S. GAAP)
The Company’s fair value of pension plan assets (except for assets in retirement benefit trust) by asset category for the
year ended March 31, 2010 are as follows:
Plan Assets
The Company investment policies are designed to ensure
that adequate plan assets are available to provide future
payments of pension benefits to eligible participants. Taking
into account the expected long-term rate of return on plan
assets, the Company formulates a model portfolio com-
prised of the optimal combination of equity and debt
securities in order to produce a total return that will match
the expected return on a mid-term to long-term basis.
Joint trusts of Equity securities consist of approximately
50% Japanese companies’ listing stocks and 50% foreign
companies’ listing stocks. And, Joint trusts of Debt secu-
rities consist of approximately 50% Japanese government
bonds and 50% foreign government bonds.
The Company evaluates the gap between long-term
expected return and actual return of invested plan assets
to determine if such differences necessitate a revision in
the formulation of the model portfolio. And, in the event
that the Company determines the need for a revision of
the model portfolio to accomplish the expected long-term
rate of return on plan assets, the Company revises the
model portfolio to the extent necessary to achieve it.
Target allocation of plan assets is 20% equity securi-
ties, 66% debt securities and life insurance general account
assets and 14% other. Equity securities are mainly com-
posed of stocks that are listed on the securities exchanges.
The Company has investigated the business condition of
the investee companies and appropriately diversified the
investments by type of industry, brand and other relevant
factors. Debt securities are primarily composed of gov-
ernment bonds, public debt instruments, and corporate
bonds. The Company has investigated the quality of the
issue, including rating, interest rate, and repayment dates
and appropriately diversified the investments. As for invest-
ments in life insurance general account assets, the
contracts with the insurance companies include a guaran-
teed interest and return of capital.
Level 1 assets are comprised principally of equity securi-
ties, which are valued using unadjusted quoted market
prices in active markets with sufficient volume and fre-
quency of transactions.
Level 2 assets are comprised principally of joint trusts
and life insurance general account assets that invest in
equity and debt securities. These joint trusts are valued at
their net asset values that are calculated by the sponsor
of the fund. These life insurance general account assets
are valued at net asset value.
Level 3 assets are comprised of private equities and
hedge funds, which are valued at net asset value.
Total
Equity securities
Domestic stocks
Overseas stocks
Joint trusts (*)
Debt securities
Joint trusts
Other assets
Life insurance general:
account assets
Others
Total
(*) Joint trusts of Equity securities include common stock of the Company in the amounts of ¥11 million ($ 118 thousand) for the year ended March 31, 2010.
Millions of yen Thousands of U.S. dollars
Level 3Level 2Level 1TotalLevel 3Level 2Level 1
¥ 2,533
1,945
—
—
—
43
¥ 4,521
¥—
—
16,939
46,128
13,899
11,580
¥ 88,546
¥—
—
—
—
—
855
¥ 855
¥ 2,533
1,945
16,939
46,128
13,899
12,478
¥ 93,922
$ 27,237
20,914
—
—
—
462
$ 48,613
$ —
—
182,140
496,000
149,452
124,516
$ 952,108
$—
—
—
—
—
9,193
$ 9,193
$ 27,237
20,914
182,140
496,000
149,452
134,171
$ 1,009,914