Yamaha 2010 Annual Report Download - page 64

million below the carrying value of such land on the these companies’ balance sheets.
The breakdown of principal assets and liabilities of NEXO S.A. (as of July 1, 2008), which is newly consolidated as a result of the pur-
chase of its shares by the Company, for the year ended March 31, 2009:
Millions of Yen
Current assets ¥ 1,974
Noncurrent assets 1,491
Goodwill 4,537
Current liabilities (1,036)
Noncurrent liabilities (46)
Subtotal 6,920
Shares held prior to acquisition of a controlling interest and others (888)
Expenditures for acquisition of NEXO S.A. shares ¥(6,032)
Expenditures for the acquisition of additional shares after the consolidation of the company have amounted to ¥2,041 million.
20. LEGAL RESERVE AND ADDITIONAL PAID-IN CAPITAL
The Corporation Law of Japan (the “Law”) provides that amounts from capital surplus and retained earnings may be distributed to the
shareholders at any time by resolution of the shareholders or by the Board of Directors if certain provisions are met subject to the extent of
the applicable sources of such distributions. The Law further provides that amounts equal to 10% of such distributions be transferred to
additional paid-in capital included in capital surplus or the legal reserve based on the applicable sources of such distributions until the sum
of additional paid-in capital and the legal reserve equals 25% of the capital stock account.
21. RETIREMENT BENEFITS
The Company and its domestic consolidated subsidiaries have defined benefit pension plans, such as welfare pension plans and lump-sum
payment plans.
In certain cases, the Company pays employees who are retiring, etc., additional retirement benefits that are not considered to be retire-
ment benefit obligations as calculated under actuarial methods according to retirement benefit accounting principles.
Certain overseas consolidated subsidiaries have either defined benefit plans or defined contribution pension plans.
The following table sets forth the funded and accrued status of the plans, and the amounts recognized in the accompanying consoli-
dated balance sheets at March 31, 2010 and 2009 for the Company’s and the consolidated subsidiaries’ defined benefit pension plans:
Millions of Yen
Thousands of
U.S. Dollars
(Note 3)
2010 2009 2010
Retirement benefit obligation ¥(134,771) ¥(150,109) $(1,448,528)
Plan assets at fair value 78,546 82,281 844,218
Unfunded retirement benefit obligation (56,224) (67,828) (604,299)
Unrecognized actuarial gain or loss 25,013 42,784 268,841
Unrecognized prior service cost (2,464) (2,444) (26,483)
Net retirement benefit obligation at transition (33,675) (27,488) (361,941)
Prepaid pension expenses —139 —
Provision for retirement benefits ¥ (33,675) ¥ (27,628) $ (361,941)
The components of retirement benefit expenses for the years ended March 31, 2010 and 2009 are outlined as follows:
Millions of Yen
Thousands of
U.S. Dollars
(Note 3)
2010 2009 2010
Service cost ¥ 5,152 ¥ 4,907 $ 55,374
Interest cost 2,930 2,935 31,492
Expected return on plan assets (2,843) (4,060) (30,557)
Amortization of prior service cost (157) (157) (1,687)
Amortization of actuarial gain or loss 7,065 4,849 75,935
Additional retirement benefit expenses 807 1,545 8,674
Total ¥12,955 ¥10,020 $139,241
62 Yamaha Corporation