Ricoh 2009 Annual Report Download - page 60

59 ANNUAL REPORT 2009
Ricoh and certain subsidiaries have defined contribution plans. The
cost of defined contribution plans for the years ended March 31,
2007, 2008 and 2009 were ¥3,795 million, ¥5,108 million and
¥6,768 million ($68,364 thousand), respectively.
13. SHAREHOLDERS’ INVESTMENT
The Corporation Law of Japan provides that an amount equal to
10% of cash dividends and other distributions from retained
earnings paid by the Company and its domestic subsidiaries be
appropriated as additional paid-in capital or legal reserve. No
further appropriation is required when the total amount of the
additional paid-in capital and legal reserve equals to 25% of
common stock. Certain foreign subsidiaries are also required to
appropriate their earnings to legal reserves under the laws of the
respective countries. Legal reserves included in retained earnings
as of March 31, 2008 and 2009 were ¥17,462 million and ¥18,345
million ($185,303 thousand), respectively, and are restricted from
being used as dividends.
The Corporation Law of Japan requires a company to obtain the
approval of shareholders for transferring on amount between
common stock and additional paid-in capital. The Law also permits
a company to transfer an amount of common stock or additional
paid-in capital to retained earnings in principle upon approval of
shareholders.
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 Ordinary General Meeting of Shareholders
held on June 25, 2009, the shareholders approved the declaration
of a cash dividend (¥15 per share) on the common stock totaling
¥10,885 million ($109,949 thousand), which would be paid to
shareholders of record as of March 31, 2009. The declaration of
this dividend has not been reflected in the consolidated financial
statements as of March 31, 2009.
The amount of retained earnings legally available for dividend
distribution is that recorded in the Company’s non-consolidated
books and amounted to ¥430,717 million ($4,350,677 thousand) as
of March 31, 2009.
Ricoh’s benefit plan asset allocation as of March 31, 2008 and 2009
are as follows:
Common stock and bonds of the Company and certain of its
domestic subsidiaries included in plan assets were immaterial at
March 31, 2008 and 2009.
Ricoh’s investment policies and strategies for the pension benefits
do not use target allocations for the individual asset categories.
Ricoh’s investment goals are to maximize returns subject to specific
risk management policies. Its risk management policies permit
investments in mutual funds and debt and equity securities and
prohibit speculative investment in derivative financial instruments.
Ricoh addresses diversification by the use of mutual fund
investments whose underlying investments are in domestic and
international fixed income securities and domestic and international
equity securities. These mutual funds are readily marketable and
can be sold to fund benefit payment obligations as they become
payable.
Ricoh expects to contribute ¥15,760 million to its pension plans for
the year ending March 31, 2010. The estimated net actuarial loss
and prior service credit for Ricoh’s pension fund plans that will be
amortized from accumulated other comprehensive income (loss)
into net periodic pension cost over the next year ending March,
2010 are ¥9,732 million and ¥(4,078) million, respectively.
The following benefit payments, which reflect expected future
service, as appropriate, are expected to be paid:
Thousands of
Years ending March 31 Millions of Yen U.S. Dollars
2010 ¥ 23,803 $ 240,434
2011 21,518 217,354
2012 21,866 220,869
2013 23,255 234,899
2014 21,837 220,576
2015– 2019 127,939 1,292,313
2008
2009
Equity securities 45.7%
33.6%
Debt securities 20.9%
40.4%
Life insurance company general accounts 15.1%
17.5%
Other 18.3%
8.5%
Total 100.0%
100.0%