Brother International 2008 Annual Report Download - page 31

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29Brother Annual Report 2008
The liability for employees’ retirement benefits at March 31, 2008 and 2007 consisted of the following:
Thousands of
Millions of Yen U.S. Dollars
2008 2007 2008
Projected benefit obligation ¥ (58,387) ¥ (60,868) $ (583,870)
Fair value of plan assets 51,783 58,652 517,830
Unrecognized actuarial loss 10,531 5,564 105,310
Unrecognized prior service benefit (409) (466) (4,090)
Net liability 3,518 2,882 35,180
Prepaid pension cost 10,064 9,181 100,640
Liability for employees’ retirement benefits ¥ (6,546) ¥ (6,299) $ (65,460)
The components of net periodic benefit costs were as follows:
Thousands of
Millions of Yen U.S. Dollars
2008 2007 2008
Service cost ¥ 2,808 ¥ 2,587 $ 28,080
Interest cost 1,529 1,427 15,290
Expected return on plan assets (2,043) (1,882) (20,430)
Recognized actuarial loss 589 776 5,890
Amortization of prior service cost (58) (60) (580)
Prior retirement benefits cost in foreign subsidiaries 192 —1,920
Additional retirement payments and others* 83 900 830
Amounts contributed from employees — (6) —
Cumulative effect of adoption of actuarial calculation from the simplified method — 213 —
Contribution to defined contribution pension plans 1,037 985 10,370
Net periodic retirement benefits cost ¥ 4,137 ¥ 4,940 $ 41,370
* Includes special termination benefits of ¥725 million paid by a certain consolidated subsidiary for the year ended March 31, 2007.
Assumptions used for the years ended March 31, 2008 and 2007 were as follows:
2008 2007
Periodic recognition of projected benefit obligation Straight-line method Straight-line method
Discount rate Principally from 1.5% to 2.0% Principally from 1.5% to 2.0%
Expected rate of return on plan assets Principally 3.0% Principally 3.0%
Recognition period of actuarial gain / loss Principally from 7 years to 14 years Principally from 7 years to 14 years
Amortization period of prior service benefit / cost Principally from 7 years to 15 years Principally from 7 years to 14 years