Assumptions used for the years ended March 31, 2010 and  2009 are set forth below: other corporate bonds of ¥280 million ($3,009 thousand) and long- term debt of ¥16,382 million ($176,076 thousand) at March 31,  2010 were as follows: The Group has cash balance pension fund plans, tax-qualified  pension fund plans, defined contribution pension plans and plans  of retirement lump-sum grants as defined benefit plans. Also, the  Group occasionally pays a premium retirement allowance to  employees upon retirement, and this is not subject to an actuarial  calculation based on retirement allowance accounting. The liability for employees’ retirement benefits at March 31,  2010 and 2009 consisted of the following: Japanese companies are subject to the Companies Act of Japan (the  “Companies Act”). The significant provisions in the Companies Act  that affect financial and accounting matters are summarized below: Under the Companies Act, companies can pay dividends at any  time during the fiscal year in addition to the year-end dividend upon  resolution at the shareholders meeting. For companies that meet  certain criteria such as; (1) having the Board of Directors, (2) having  independent auditors, (3) having the Board of Corporate Auditors,  and (4) the term of service of the directors is prescribed as one year  rather than two years of normal term by its articles of incorporation,  the Board of Directors may declare dividends (except for dividends  in kind) at any time during the fiscal year if the company has pre- scribed so in its articles of incorporation. The Company meets all  the above criteria. The Companies Act permits companies to distribute dividends- in-kind (non-cash assets) to shareholders subject to a certain limita- tion and additional requirements. The Companies Act provides  certain limitations on the amounts available for dividends or the  purchase of treasury stock. The limitation is defined as the amount  available for distribution to the shareholders, but the amount of net  assets after dividends must be maintained at no less than ¥3 million. The components of net periodic retirement benefit costs for the  years ended March 31, 2010 and 2009 were as follows: The Companies Act requires that an amount equal to 10% of divi- dends must be appropriated as a legal reserve (a component of  retained earnings) or as additional paid-in capital (a component of  capital surplus) depending on the equity account charged upon the  payment of such dividends until the total of the aggregate amount  of legal reserve and additional paid-in capital equals 25% of the  common stock. Under the Companies Act, the total amount of  additional paid-in capital and legal reserve may be reversed without  limitation. The Companies Act also provides that common stock,  legal reserve, additional paid-in capital, other capital surplus and  retained earnings can be transferred among the accounts under  certain conditions upon resolution of the shareholders. The Companies Act also provides for companies to purchase trea- sury stock and dispose of such treasury stock by resolution of the  Board of Directors. The amount of treasury stock purchased  cannot exceed the amount available for distribution to the share- holders which is determined by a specific formula. Under the   Companies Act, stock acquisition rights are presented as a sepa- rate component of equity. The Companies Act also provides that  companies can purchase both treasury stock acquisition rights and  b. Increases/Decreases and Transfer of Common Stock,  Reserve and Surplus c. Treasury Stock and Treasury Stock Acquisition Rights Note: Some consolidated subsidiaries adopt the simplified method when calculating  retirement allowance liabilities. Notes: 1. In addition to retirement allowance costs above, ¥2,442 million ($26,246  thousand) and ¥129 million for the years ended March 31, 2010 and 2009  were appropriated as special payments due to early retirement. 2. Retirement allowance costs of consolidated subsidiaries using the simplified  method are included in “Service cost.” 3. “Other” represents the payment for a defined contribution pension plan. JS Group Corporation Annual Report 2010 71 a. Dividends Note: Actuarial gains and losses are immediately amortized as they arise. 2010 2009 Discount rate 1.5%–2.0% 2.0% Expected rate of return on plan assets 0.0%–2.0% 0.0%–2.0% Recognition period of actuarial gain/loss (Note) (Note) 10. Retirement and Pension Plans 11. Equity Millions of Yen Thousands of U.S. Dollars 2010 2010 Cash and cash equivalents ¥ 2,844 $ 30,570 Land 17,883 192,207 Buildings and structures 10,056 108,079 Other 12 126 Investment securities 52 560 Total ¥30,847 $331,542 Millions of Yen Thousands of U.S. Dollars 2010 2009 2010 Projected benefit obligation ¥ 67,361 ¥ 65,729 $ 724,003 Fair value of plan assets (including a pension trust) (64,205) (63,103) (690,075) Prepaid pension expense 7,845 8,908 84,314 Net liability ¥ 11,001 ¥ 11,534 $ 118,242 Millions of Yen Thousands of U.S. Dollars 2010 2009 2010 Service cost ¥3,644 ¥4,384 $39,166 Interest cost 1,235 1,469 13,271 Expected return on plan assets (57) (184) (615) Recognized actuarial gain (17) (637) (181) Loss (gain) on transition to defined contribution pension plans from defined benefit plans (125) 757 (1,346) Other (see Note 3 below) 2,487 1,457 26,733 Net periodic retirement benefit costs ¥7,167 ¥7,246 $77,028