Wacom 2006 Annual Report Download - page 28

27 W acom Co., Ltd. Annual Report 2006
7. Shareholders’ equity:
The Japanese Commercial Code provides that:
(1) Upon a resolution of the Board of D irectors, appropriations of
interim cash dividends and the related transfer to the legal
earned reserve as described in (3) below, can be made from
unappropriated retained earnings brought forward;
(2) All other appropriations of retained earnings, including year end
dividends and bonuses to directors and statutory corporate
auditors, require approval by the shareholders at the General
Meeting of Shareholders; and
(3) An amount equal to at least 10% of cash dividends and other
cash distributions paid by the Company from retained earnings
must be appropriated from retained earnings as a legal earned
reserve; no further appropriation is required when the
combined amount of capital reserve and the legal earned
reserve pursuant to the Japanese Commercial Code equals
25% of stated capital.
(4) Legal earned reserve and unappropriated retained earnings are
presented in the retained earnings accounts, and legal capital
reserve and other capital reserves are presented in “Additional
paid-in capital” accounts.
Appropriation for:
Cash dividends, ¥1,000.00 ($8.51) per share
Bonuses to directors and statutory corporate auditors
$3,512
238
$3,750
Thousands of
U.S. dollars
¥412,600
28,000
¥440,600
Thousands of
yen
6. Accrued retirement benefits:
The Company has an unfunded retirement allowance plan (the
“Plan”) covering substantially all of its employees who meet eligibility
requirements under the Plan. In addition, the Company is a member
of the industrial park multi-employer pension plan, which covers
substantially all of its employees and provides for benefits under
the governmental welfare pension benefit plan, which would be
otherwise provided by the Japanese government.
As the Company joins this multi-employer pension plan out of its
retirement allowance plan, this multi-employer pension plan is
excluded from the calculation of projected benefit obligation,
pension assets and net periodic pension expense. Its pension assets
calculated by the ratio of the number of members are ¥ 722,675
thousand and ¥808,798 thousand ($6,885 thousand) for 2005 and
2006, respectively, and contributions to this multi-employer pension
plan are ¥54,292 thousand and ¥ 69,837 thousand ($594 thousand)
for 2005 and 2006, respectively.
Some foreign subsidiaries have defined contribution pension plans.
The accrued retirement benefits for employees as of March 31,
2005 and 2006 can be analyzed as follows:
The following assets are pledged as security for short-term
borrowings and long-term debt at March 31, 2005 and 2006.
Buildings and facilities
Land
Patent N o.
2131145
4,878,553
5,028,745
4,999,461
Title of Invention
PO SITIO N D ETECTIN G APPARATUS
PO SITIO N D ETECTIN G APPARATUS
PO SITIO N D ETECTIN G APPARATUS
CO O RD IN ATES IN PU T APPARATUS
1,477,564
1,348,168
¥2,825,732
1,153,184
1,125,168
¥2,278,352
9,817
9,578
$19,395
Thousands of
U.S. dollars
Thousands of yen
March 31
2005 2006 2006
March 31
(1) Projected benefit obligation
(2) Unrecognized actuarial loss (gain)
(3) Accrued retirement benefits for
employees (1)+(2)
(¥286,213)
20,679
(¥265,534)
(¥311,876)
18,830
(¥293,046)
($2,655)
160
($2,495)
Thousands of
U.S. dollars
Thousands of yen
2005 2006 2006
(1) Service cost
(2) Interest cost
(3) Recognized actuarial loss
(4) Amortization of transition obligation
(5) N et periodic pension expense
¥34,528
5,564
2,525
27,644
¥70,261
¥35,892
5,637
4,044
–
¥45,573
$305
48
34
–
$387
Thousands of
U.S. dollars
Thousands of yen
2005 2006 2006
The components of the net periodic pension expense for the
years ended March 31, 2005 and 2006 are as follows:
The accrued retirement benefits as of March 31, 2005 and 2006
include accrued severance indemnities for directors and statutory
corporate auditors, amounting to ¥155,724 thousand and
¥219,125 thousand ($1,865 thousand), respectively.
(1) Discount rate
(2) Method of attributing the projected
benefits to periods of service
(3) Amortization of unrecognized
transition obligation
(4) Amortization of unrecognized actuarial
differences
2.0%
Straight-line
basis
Straight-line
over 5 years
Straight-line
over 5 years
2.0%
Straight-line
basis
–
Straight-line
over 5 years
2005 2006
The assumptions used as of March 31, 2005 and 2006 are as
follows:
In accordance with customary practice in Japan, appropriations of
retained earnings are recorded in the accounting period in which
shareholders’ approval is obtained. The fiscal 2006 year-end
appropriation of retained earnings of the Company, which was
approved at the General Meeting of Shareholders held in June
2006, is presented below:
* N ote: These patents above were pledged only for the year ended March 31, 2005.