Brother International 2013 Annual Report Download - page 41

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40
10. Retirement and Pension Plans
The liability for retirement benefits in the accompanying consolidated balance sheet consisted of retirement allowances for directors and Audit & Supervisory Board
members of ¥407 million ($4,330 thousand) and ¥105 million at March 31, 2013 and 2012, respectively, and employees’ retirement benefits of ¥8,672 million ($92,255
thousand) and ¥6,981 million at March 31, 2013 and 2012, respectively.
Retirement Allowances for Directors and Audit & Supervisory Board members
Retirement allowances for directors and Audit & Supervisory Board members are paid subject to approval of the shareholders in accordance with the Companies
Act of Japan (the “Companies Act”).
Certain domestic consolidated subsidiaries recorded liabilities for their unfunded retirement allowance plan covering all of their directors and Audit & Supervisory
Board members.
Employees’ Retirement Benefits
Under the pension plan, employees terminating their employment are, in most circumstances, entitled to pension payments based on their average pay during their
employment, length of service and certain other factors.
The asset and liability for employees’ retirement benefits at March 31, 2013 and 2012, consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Projected benefit obligation ¥ (61,717) ¥ (51,533) $ (656,564)
Fair value of plan assets 52,062 42,878 553,851
Unrecognized actuarial loss 11,871 11,875 126,288
Unrecognized prior service (cost) benefit (38) 1,570 (404)
Net assets 2,178 4,790 23,171
Prepaid pension cost 10,850 11,771 115,426
Liability for employees’ retirement benefits ¥ (8,672) ¥ (6,981) $ (92,255)
The components of net periodic benefit costs for the years ended March 31, 2013 and 2012, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Service cost ¥ 1,813 ¥ 1,733 $ 19,287
Interest cost 1,470 1,463 15,638
Expected return on plan assets (1,517) (1,531) (16,138)
Recognized actuarial loss 1,814 1,618 19,298
Amortization of prior service benefit (258) (404) (2,745)
Additional retirement payments and others 177 213 1,883
Contribution to defined contribution pension plans 1,725 1,569 18,351
Net periodic retirement benefits cost ¥ 5,224 ¥ 4,661 $ 55,574
Notes to Consolidated Financial Statements
Brother Industries, Ltd. and Consolidated Subsidiaries
Year ended March 31, 2013