Fujitsu 2013 Annual Report Download - page 106

Reference: Status of Retirement Benefit Plans (Unit: billion yen)
Years ended March 31 2012 2013 YoY Change
a. Projected benefit
obligation . . . . . . . . . . (1,868.4) (2,151.1) (282.7)
b. Plan assets . . . . . . . . . . 1,352.0 1,686.9 334.9
c. Projected benefit
obligation in excess of
plan assets (a)+(b) . . . (516.3) (464.2) 52.1
Net of prepaid pension
cost and allowance for
retirement benefits . . . (115.4) 1.6 117.1
Unrecognized Obligation
for Retirement Benefits . . (400.9) (465.8) (64.9)
In Japan . . . . . . . . . . . . . (292.0) (308.7) (16.7)
Outside Japan . . . . . . . . (108.9) (157.1) (48.2)
(Assumptions used in accounting for the plans)
Discount Rates
In Japan . . . . . . . . . . . . . 2.5% 1.7% (0.8%)
Outside Japan
(Mainly in UK) . . . . . . . mainly 5.0% mainly 4.4% (0.6%)
Consolidated total assets at the end of fiscal 2012 amounted to
¥3,049.0 billion ($32,437 million), an increase of ¥103.5 billion from
the end of fiscal 2011. This represented an increase of approximately
¥110.0 billion as a result of yen depreciation. Current assets
increased by ¥20.5 billion compared with the end of fiscal 2011, to
¥1,722.2 billion ($18,322 million). Notes and accounts receivable,
trade decreased by ¥5.3 billion as sales in the fourth quarter (January
to March) of fiscal 2012 were lower than in the same period of fiscal
2011. As shipments of Japan’s Next-Generation Supercomputer
system were completed, inventories at the end of fiscal 2012
decreased to ¥323.0 billion ($3,437 million), down ¥11.0 billion
from the ending balance of fiscal 2011. The monthly inventory turn-
over ratio, which is an indication of asset utilization efficiency, was
1.00 times, essentially unchanged from the end of fiscal 2011. Fixed
assets increased by ¥83.0 billion from the end of fiscal 2011, to
¥1,326.7 billion ($14,115 million). Property, plant and equipment
decreased by ¥22.4 billion compared with the end of fiscal 2011,
primarily as a result of the impairment of fixed assets in the LSI
device business. Intangible assets decreased by ¥42.9 billion from
the end of fiscal 2011, primarily as a result of the impairment of
goodwill relating to FTS (including its consolidated subsidiaries).
Investments and other non-current assets increased ¥148.4 billion,
mainly due to an increase in prepaid pension expense associated
with a special contribution into a defined benefit corporate pension
fund for the Company’s UK-based subsidiary.
Total liabilities amounted to ¥2,139.2 billion ($22,758 million),
an increase of ¥160.3 billion compared to the end of fiscal 2011. The
balance of interest-bearing loans was ¥534.9 billion ($5,691
million), an increase of ¥153.8 billion from the end of fiscal 2011.
Short-term borrowings increased to finance a portion of working
capital and a special contribution into defined benefit corporate
pension fund of the Company’s UK-based subsidiary. As a result, the
D/E ratio was 0.68 times, an increase of 0.23 of a percentage point
compared to the end of fiscal 2011, and the net D/E ratio was 0.32
times, an increase of 0.18 of a percentage point compared to the end
of fiscal 2011. In addition, provision for restructuring charges
increased ¥66.8 billion due to structural reforms in the LSI device
business and businesses outside Japan.
Net assets amounted to ¥909.8 billion ($9,679 million), a
decrease of ¥56.7 billion from the end of fiscal 2011. The decline in
net assets reflects a decrease in shareholders’ equity of ¥93.4 billion,
resulting mainly from the net loss recorded and the payment of
dividends during fiscal 2012. Accumulated other comprehensive
income increased by ¥33.8 billion, primarily as a result of yen depre-
ciation and rising share prices. The decline in owners’ equity lowered
the owners’ equity ratio by 3 percentage points compared to the end
of fiscal 2011, to 25.6%.
Non-consolidated net assets of the Company were ¥410.3 billion
($4,365 million), down ¥348.3 billion from the end of the previous
fiscal year. The decline was due primarily to the Company recording
negative retained earnings of ¥104.3 billion ($1,110 million) in its
non-consolidated results for the year, stemming from a non-
consolidated net loss of ¥338.0 billion ($3,596 million) after a write-
down of shares of subsidiaries related to the LSI devices business and
the Company’s operations in Europe.
The unrecognized obligation for retirement benefits*3 is ¥465.8
billion ($4,955 million). For retirement benefit plans in Japan, the
amount of unrecognized obligation for retirement benefits is ¥308.7
billion ($3,284 million). Although plan assets increased as a result of
good investment performance, the amount of unrecognized obliga-
tion for retirement benefits increased by ¥16.7 billion since the end
of the prior fiscal year because a decline in the discount rate*4 raised
the amount of projected benefit obligation. Similarly, for retirement
benefit plans outside of Japan, even though plan assets increased as
a result of good investment performance, the amount of unrecog-
nized obligation for retirement benefits increased by ¥48.2 billion
since the end of the prior fiscal year, to ¥157.1 billion ($1,672 mil-
lion), because of lower discount rates and a weaker yen. The future
minimum lease payment required under non-cancelable operating
leases at the end of fiscal 2012 amounted to ¥84.7 billion ($902
million). In addition, commitments outstanding at March 31, 2013
for purchases of property, plant and equipment and intangible assets
were ¥11.6 billion ($124 million), and contingent liabilities for
guarantee contracts amounted to ¥1.7 billion ($18 million).
*3 Unrecognized obligations consist primarily of unrecognized actuarial losses.
“Actuarial losses” refer to disparities that occur chiefly as the result of
differences between expected and actual returns from pension plan assets,
differences between the estimates used for the actuarial calculation of
retirement benefit obligations and actual obligations, and changes in
estimates. Of these differences, those that have not yet been expensed are
referred to as “unrecognized actuarial losses.” The Group expenses actuarial
losses over the average remaining service period of its employees.
Up to June 24, 2013, the filing date of the Annual Securities Report,
accounting standards for retirement benefits were revised. Net assets are
expected to decrease when the Group adopts the revised accounting
standards. The details are noted in “Notes to Consolidated Financial State-
ments, 1. Significant Accounting Policies, (u) Accounting standards issued
but not yet effective.”
104 FUJITSU LIMITED ANNUAL REPORT 2013