ANNUAL REPORT 2011 for the year ended March 31, 2011

Notes To Consolidated Financial Statements

Credit Saison Co., Ltd. and Consolidated Subsidiaries
For the Years Ended March 31, 2011 and 2010

12. Available-For-Sale Securities

(A) As of March 31, 2011 and 2010 acquisition costs and carrying amounts on the consolidated balance sheets of available-for-sale securities that have market value are summarized below:


  Millions of yen Thousands of U.S. dollars
2011 2010 2011
Acquisition
cost
Carrying
amount
Difference Acquisition
cost
Carrying
amount
Difference Acquisition
cost
Carrying
amount
Difference
Balance sheet amount
exceeding acquisition cost:
                 
Equity shares ¥18,526 ¥26,311 ¥ 7,785 ¥18,147 ¥27,461 ¥ 9,314 $222,798 $316,425 $ 93,627
Bonds                  
Corporate - - - 47 47 - - - -
Other 958 993 35 1,162 1,249 87 11,525 11,943 418
Subtotal 19,484 27,304 7,820 19,356 28,757 9,401 234,323 328,368 94,045
Balance sheet amount not
exceeding acquisition cost:
                 
Equity shares 4,893 3,554 (1,339) 4,624 3,883 (741) 58,846 42,741 (16,105)
Bonds                  
Corporate 147 104 (43) 100 78 (22) 1,766 1,252 (514)
Other 900 865 (35) - - - 10,824 10,400 (424)
Other 154 124 (30) 983 956 (27) 1,853 1,490 (363)
Subtotal 6,094 4,647 (1,447) 5,707 4,917 (790) 73,289 55,883 (17,406)
Total ¥25,578 ¥31,951 ¥ 6,373 ¥25,063 ¥33,674 ¥8,611 $307,612 $384,251 $ 76,639

(B) Proceeds from sales of available-for-sale securities for the years ended March 31, 2011 and 2010 were ¥1,672 million (US$20,107 thousand) and ¥76 million, respectively.

Gross realized gains and losses on these sales, computed on the moving-average cost basis, were ¥2 million (US$18 thousand) and ¥100 million (US$1,200 thousand), respectively, for the year ended March 31, 2011 and ¥59 million and ¥1 million, respectively, for the year ended March 31, 2010.

(C) As of March 31, 2011, the carrying values of debt securities by contractual maturities for securities classified as available-forsale securities were as follows:


  Millions of yen   Thousands of
U.S. dollars
2011   2011
Due in one year or less ¥ 5,982   $ 71,944
Due in one to five years 2,800   33,674
Due in five to ten years -   -
Due after ten years 969   11,651
Total ¥ 9,751   $ 117,269

13. Retirement Benefit Plans

The Company and some of its consolidated subsidiaries had defined benefit plans composed of a corporate pension plan and a lump-sum payment plan.

Effective October 1, 2004, the Company and certain of its consolidated subsidiaries changed the former defined benefit pension plans to cash balance plans. Moreover, as per the Defined Contribution Pension Plan Law, a certain portion of future benefits was shifted either to defined contribution plans or to prepaid retirement benefit payment plans at the employee's option.


(A) Accurued Pension And Severance Costs

Accrued pension and severance costs as of March 31, 2011 and 2010 are calculated below:


  Millions of yen   Thousands of
U.S. dollars
2011 2010   2011
Projected benefit obligation ¥ (10,260) ¥ (10,628)   $ (123,398)
Fair value of plan assets 7,035 6,667   84,612
Funded status (3,225) (3,961)   (38,786)
Unrecognized actuarial differences 3,013 3,289   36,230
Unrecognized prior service costs (1,967) (2,581)   (23,655)
Accrued pension and severance costs ¥ (2,179) ¥ (3,253)   $ (26,211)

(B) Retirement Benefit Expenses

Retirement benefit expenses for the years ended March 31, 2011 and 2010 are stated below:


  Millions of yen   Thousands of
U.S. dollars
2011 2010   2011
Service costs ¥ 490 ¥ 513   $ 5,896
Interest costs 212 217   2,556
Expected return on plan assets (268) (151)   (3,227)
Actuarial differences recognized as expenses 838 907   10,073
Prior service costs recognized as expenses (613) (623)   (7,376)
Other* 319 323   3,845
Retirement benefit expenses ¥ 978 ¥1,186   $11,767
  • * Other represents payments to defined contribution pension fund, and other items.

The principal assumptions used in determining retirement benefit obligations and other components for the Companies' plans are stated below:


  2011 2010
Discount rate 2.0% 2.0%
Expected rate of return on plan assets 4.0% 2.5%
Period of recognition of prior service costs 9-11 years evenly 9-11 years evenly
Period of recognition of actuarial differences 9-11 years evenly 9-11 years evenly

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