Ricoh 1999 Annual Report Download - page 48

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The amounts paid by plan participants for the year ended March 31,
1997 and 1998 were reclassified as plan participants’ contribution in the year
ended March 31, 1999, and excluded from net periodic benefit costs for the
years then ended in order to conform with SFAS 132.
The projected benefit obligation, accumulated benefit obligation, and
fair value of plan assets for the pension plan with accumulated benefit obliga-
tion in excess of plan assets were ¥253,808 million, ¥202,971 million and
¥170,987 million, respectively, as of March 31, 1998 and ¥281,012 million
($2,322,413 thousand), ¥226,871 million ($1,874,967 thousand) and
¥182,280 million ($1,506,446 thousand), respectively, as of March 31, 1999.
In accordance with the provisions of SFAS No. 87, the Company was
required to record an additional minimum pension liability at March 31,
1998 and 1999. This amount represents the excess of the accumulated
benefit obligations over the fair value of plan assets. This excess is primarily
attributable to a substantial reduction in the discount rate used in pension
11. SHAREHOLDERS’ INVESTMENT
The Japanese Commercial Code provides that an amount equivalent to
at least 10% of cash dividends paid and other cash outlays resulting from
appropriation of retained earnings with respect to each fiscal or interim six-
month period be appropriated as a legal reserve until such reserve equals
25% of the stated capital. This reserve and additional paid-in capital are not
available for dividends but may be used to reduce a deficit by resolution of
the shareholders or may be capitalized by resolution of the Board of
Directors.
Semiannual cash dividends are approved by the shareholders after the
end of each fiscal period or are declared by the Board of Directors after the
end of each interim six-month period. Such dividends are payable to share-
holders of record at the end of each such fiscal or interim six-month period.
At the general meeting held on June 29, 1999, the shareholders approved
the declaration of a cash dividend on the common stock totaling ¥3,804 mil-
lion ($31,438 thousand), which will be paid to shareholders of record as of
March 31, 1999, and the related appropriation of retained earnings total-
ing ¥395 million ($3,264 thousand) by a transfer to the legal reserve. In
accordance with the Japanese Commercial Code, the declaration of this divi-
dend and the related transfer of retained earnings to the legal reserve have
not been reflected in the consolidated financial statements as of March 31,
1999.
The Japanese Commercial Code provides that at least one-half of the
proceeds from shares issued at a price in excess of par value be included in
common stock. In conformity therewith, the Company has divided the
principal amount of bonds converted into common stock equally between
common stock and additional paid-in capital.
calculation and represents a net loss not yet recognized as net periodic
pension cost. Since there is no unrecognized prior service cost, this excess is
reported in an accumulated other comprehensive income (loss), at net of tax
benefits. The net changes in pension liability adjustment for the years ended
March 31, 1998 and 1999 were both increases of ¥5,746 million and ¥4,509
million ($37,265 thousand), respectively.
Employees of certain subsidiaries not covered by the EPF plan and direc-
tors of Ricoh are primarily covered by unfunded retirement allowances plans.
Under the unfunded plans described in the preceding paragraph, the
amounts required if all employees and directors had voluntarily terminated
their employment at each balance sheet date are fully accrued. The payments
to directors are subject to shareholders’ approval. The total provisions
charged to income under these plans in fiscal 1997, 1998 and 1999 were
¥4,498 million, ¥2,942 million and ¥6,084 million ($50,281 thousand),
respectively.