Crucial 2012 Annual Report Download - page 266

21
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
(15) Accrued Pension Liabilities
(a) The pension costs and related accounts for the years ended December 31, 2009, 2010 and 2011, were as follows:
December 31,
2009 2010 2011
Balance of the retirement fund $ 82,729 95,830 106,548
Periodic pension costs
Defined benefit plan cost 5,923 2,571 1,762
Defined contribution plan cost 99,801 102,823 115,418
Accrued pension liabilities-defined benefit plan 25,344 16,964 8,313
Accrued expenses-defined contribution plan 25,252 28,336 31,421
(b) The funded status was reconciled to accrued pension liability as of December 31, 2010 and 2011 as follows:
December 31,
2010 2011
Benefit obligation:
Vested benefit obligation $ (5,931) (6,672)
Non-vested benefit obligation (48,552) (58,102)
Accumulated benefit obligation (54,483) (64,774)
Projected compensation increase (48,988) (45,447)
Projected benefit obligation (103,471) (110,221)
Fair value of plan assets 97,027 108,300
Funded status (6,444) (1,921)
Unamortized pension gain or losses (10,520) (6,392)
Accrued pension liability $ (16,964) (8,313)
(c) As of December 31, 2010 and 2011, the actuarial present value of the vested benefits for the Company's
employees in accordance with the retirement benefit plan was approximately $6,374 and $7,329, respectively.
(d) Major assumptions used to determine the pension plan funded status for the years ended December 31, 2009,
2010, and 2011, were as follows:
For the years ended December 31,
2009 2010 2011
Discount rate 2.75% 2.75% 2.00%
Rate of increase in compensation 3.00% 3.00% 2.50%
Expected long-term rate of return on plan assets 2.75% 2.75% 2.00%