Alpine 2008 Annual Report Download - page 26

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26
7. Employees’ Severance and Retirement Benefits
Employees’ severance and retirement benefits included in the liability in the consolidated balance sheets and the related expenses for 2008 and 2007,
which were determined based on the amounts obtained by actuarial calculations, were as follows:
2008 2007 2008
Employees’ severance and retirement benefits:
Projected benefit obligation ¥(9,594) ¥(9,376) $(95,758)
Unamortized actuarial differences 1,665 622 16,618
Pension assets 8,812 9,772 87,953
Prepaid pension expense (1,552) (1,638) (15,490)
Employees’ severance and retirement benefits ¥(669) ¥(620) $ (6,677)
Thousands of U.S. DollarsMillions of Yen
2008 2007 2006 2008
Severance and retirement benefit expenses:
Service costs – Benefits earned during the year ¥450 ¥382 ¥360 $4,491
Interest costs on projected benefit obligation 208 200 192 2,076
Expected return on plan assets (229) (217) (182) (2,285)
Amortization of prior service costs — — (1,097) —
Amortization of actuarial differences 99 111 179 988
Additional retirement benefit — 48 2 —
Other expenses (Defined Contribution, etc.) 134 144 152 1,337
Severance and retirement benefit expenses ¥662 ¥668 ¥(394) $6,607
Gain on return of the substitutional portion of
welfare pension insurance — — (10) —
Total ¥662 ¥668 ¥(404) $6,607
Millions of Yen Thousands of U.S. Dollars
An overseas subsidiary has adopted defined benefit pension scheme in a multi-employer pension fund, and the subsidiary accounted for the expenses
based on the amounts of contribution. The pension assets and liabilities of the whole pension fund were as follows
Pension Assets ¥2,491 $ 24,863
Pension Liabilities 2,824 28,186
Surplus (Deficit) ¥(333) $(3,323)
The ratio of the subsidiary’s contribution to the whole fund was 22.6%.
Thousands of U.S. DollarsMillions of Yen
The discount rate and the rate of expected return on plan assets used by the Company were 2.5% for 2008, 2007 and 2006. The estimated amount of all
retirement benefits to be paid at the future retirement date was allocated equally to each service year using the estimated number of total service years.
Prior service costs were recognized as expense within one year, and actuarial gains or losses were recognized as income or expense using the straight-
line method over 16 years.