Ricoh 2001 Annual Report Download - page 45

4 3
The projected benefit obligations, accum ulated benefit obligations, and fair
value of plan assets for the pension plans with accumulated benefit obligations in
excess of plan assets were ¥23,178 million, ¥18,566 million and ¥8,253 million
respectively, as of March 31, 2000 and ¥303,113 million ( $2,405,659 thousand) ,
¥247,897 m illion ( $1,967,437 thousand) and ¥213,929 million ( $1,697,849
thousand) , respectively, as of March 31, 2001.
In accordance with the provisions of SFAS No. 87, the Com pany was required
to record an adjustment for m inim um pension liability at March 31, 2000 and
2001. This liability represents the excess of the accum ulated 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 accum ulated other com -
1 2 . SHAREHOLDERS’ INVESTMENT
The Japanese Comm ercial 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 m ay be capi-
talized by resolution of the Board of Directors.
Sem iannual 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 28, 2001, the shareholders approved the declaration of a cash
dividend on the common stock totaling ¥4,156 million ( $32,984 thousand) ,
which will be paid to shareholders of record as of March 31, 2001, and the related
appropriation of retained earnings totaling ¥432 m illion ( $3,429 thousand) by a
transfer to the legal reserve. In accordance with the Japanese Com mercial 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 statem ents
as of March 31, 2001.
The Japanese Comm ercial 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 conform ity therewith, the Com pany has divided the principal amount of bonds
converted into com mon stock equally between comm on stock and additional
paid-in capital.
prehensive incom e ( loss) , at net of tax benefits. The net changes in pension liabil-
ity adjustment were a decrease of ¥17,245 million for the year ended March 31,
2000 and an increase of ¥21,979 m illion ( $174,436 thousand) for the year ended
March 31, 2001, respectively.
As discussed in Note 6, Ricoh contributed certain m arketable 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
2 0 0 1
Millions of yen
2 0 0 1
20001999
¥1 5 ,4 4 9
1 1 ,7 0 6
( 1 3 ,4 1 0 )
1 ,1 2 3
¥1 4 ,8 6 8
$ 1 2 2 ,6 1 1
9 2 ,9 0 5
( 1 0 6 ,4 2 9 )
8 ,9 1 3
$1 1 8 ,0 0 0
¥18,662
13,365
( 10,306)
3,210
¥24,931
¥16,872
13,282
( 8,611)
3,812
¥25,355
The discount rate, rate of increase in compensation and expected long-term rate
of return on plan assets of domestic pension plans were 3.0%, 3.7% and 4.5%, re-
spectively, for the years ended March 31, 2000 and 2001. The other data shown
above are those of foreign pension plans.
The net periodic benefit costs of the defined benefit plans for the three years
ended March 31, 2001 consisted of the following components: