Omron 2010 Annual Report Download - page 90

90
Notes to Consolidated Financial Statements
Omron Corporation and Subsidiaries
11. Shareholders’ Equity
Japanese companies are subjected to the Corporate Law.
The Corporate Law requires that all shares of common
stock be issued with no par value and at least 50% of
amount paid of the issue price of new shares is required
to be recorded as common stock and the remaining net
proceeds are required to be presented as additional paid-
in capital, which is included in capital surplus. The Corporate
Law permits Japanese companies, upon approval of the
Board of Directors, to issue shares to existing shareholders
without consideration by way of a stock split. Such issuance
of shares generally does not give rise to changes within
the shareholders’ accounts.
Cash Flows
Contributions
The Companies expect to contribute ¥8,912 million ($95,828 thousand) to their domestic termination and retirement benefit
plans in the year ending March 31, 2011.
Benefit Payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Certain employees of European subsidiaries are covered
by a defined benefit pension plan. The projected benefit
obligation for the plan and related fair value of plan assets
were ¥3,401 million ($36,570 thousand) and ¥2,801 mil-
lion ($30,118 thousand), respectively, at March 31, 2010
and ¥2,691 million and ¥2,135 million, respectively, at
March 31, 2009.
The Companies also have unfunded noncontributory
termination plans administered by the Companies. These
plans provide lump-sum termination benefits which are
paid at the earlier of the employee’s termination or manda-
tory retirement age, except for payments to directors and
corporate auditors which require approval by the share-
holders before payment. The Companies record provisions
for termination benefits sufficient to state the liability equal
to the plans’ vested benefits, which exceed the plans’ pro-
jected benefit obligations.
The aggregate liability for the termination plans exclud-
ing the funded contributory termination and retirement
plan in Japan, as of March 31, 2010 and 2009 was ¥4,546
million ($48,882 thousand) and ¥4,776 million, respec-
tively. The aggregate net periodic benefit cost for such
plans for the years ended March 31, 2010, 2009 and 2008
was ¥515 million ($5,538 thousand), ¥702 million and ¥258
million, respectively.
Years ending March 31
2011
2012
2013
2014
2015
2016–2020
Millions of yen
Thousands of
U.S. dollars
¥ 6,517
7,017
7,227
6,948
7,273
37,142
$ 70,075
75,452
77,710
74,710
78,204
399,376
The Company’s pension plan assets classified as Level 3 (except for assets in retirement benefit trust) for the year ended March
31, 2010 are as follows:
Balance at beginning of year
Total gain and loss
(realized or unrealized)
Current period’s holding
Current period’s sale
Purchase, issuance and settlement
Current period’s
transfer to (from) Level 3
Balance at end of year
Millions of yen Thousands of U.S. dollars
Private equity
¥ 1,025
122
—
(800)
—
¥ 347
Hedge fund
¥ 1,408
5
—
(905)
—
¥ 508
Total
¥ 2,433
127
—
(1,705)
—
¥ 855
Private equity
$ 11,022
1,311
—
(8,602)
—
$ 3,731
Hedge fund
$ 15,140
54
—
(9,731)
—
$ 5,463
Total
$ 26,162
1,365
—
(18,333)
—
$ 9,194