Ricoh 2000 Annual Report Download - page 45

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The projected benefit obligations, accumulated benefit obligations, and fair
value of plan assets for the pension plans with accumulated benefit obligations in
excess of plan assets were ¥281,012 million, ¥226,871 million and ¥182,280 mil-
lion respectively, as of March 31, 1999 and ¥23,178 million ($225,029 thousand),
¥18,566 million ($180,252 thousand) and ¥8,253 million ($80,126 thousand),
respectively, as of March 31, 2000.
In accordance with the provisions of SFAS No. 87, the Company was required
to record an adjustment for minimum pension liability at March 31, 1999 and
2000. This liability represents the excess of the accumulated benefit obligations
over the fair value of plan assets. This excess is primarily attributable to a sub-
stantial reduction in the discount rate used in pension calculation and represents
a net loss not yet recognized as net periodic pension cost. Since there is no unrec-
ognized prior service cost, this excess is reported in an accumulated other com-
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 capi-
talized 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 shareholders of record
at the end of each such fiscal or interim six-month period. At the general meet-
ing held on June 29, 2000, the shareholders approved the declaration of a cash
dividend on the common stock totaling ¥3,806 million ($36,951 thousand),
which will be paid to shareholders of record as of March 31, 2000, and the related
appropriation of retained earnings totaling ¥397 million ($3,854 thousand) by a
transfer to the legal reserve. In accordance with the Japanese Commercial Code,
the declaration of this dividend and the related transfer of retained earnings to
the legal reserve have not been reflected in the consolidated financial statements
as of March 31, 2000.
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.
prehensive income (loss), at net of tax benefits. The net changes in pension liabil-
ity adjustment were an increase of ¥4,509 million for the year ended March 31,
1999 and a decrease of ¥17,245 million ($167,427 thousand) for the year ended
March 31, 2000, respectively.
As discussed in Note 5, Ricoh contributed certain marketable equity securities
to an employee retirement benefit trust. The securities held in this trust are quali-
fied as plan assets under SFAS No. 87.
Employees of certain subsidiaries not covered by the EPF plan and directors of
Ricoh are primarily covered by unfunded retirement allowances plans. The pay-
ments to directors are subject to shareholders’ approval.
The tables presented in the preceding paragraph were restated to reflect
the funded status of those retirement benefit plans for employees of certain
subsidiaries.
Service costs
Interest costs
Expected return on plan assets
Net amortization
Net periodic benefit cost
Thousands of
U.S. dollars
2000
Millions of yen
2000
19991998
¥ 16,872
13,282
(8,611)
3,812
¥ 25,355
$ 163,806
128,951
(83,602)
37,010
$ 246,165
¥ 13,090
12,713
(8,341)
2,411
¥ 19,873
¥ 18,662
13,365
(10,306)
3,210
¥ 24,931
The discount rate, rate of increase in compensation and expected long-term rate of return on plan assets of the domestic pension plans were 3.5%, 3.7% and 3.5%, respec-
tively, for the year ended March 31, 1999 and 3.0%, 3.7% and 4.5%, respectively, for the year ended March 31, 2000. The other data shown above are those of foreign pen-
sion plans.
The net periodic benefit costs of the defined benefit plans for the three years ended March 31, 2000 consisted of the following components: