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Hitachi, Ltd. Annual Report 2006 63
Reconciliations of beginning and ending balances of the benefit obligation of the funded defined benefit pension plans
and the unfunded defined benefit pension plans and the fair value of the plan assets are as follows:
Thousands of
Millions of yen U.S. dollars
2006 2005 2006
Change in benefit obligation:
Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . ¥2,307,266 ¥2,717,784 $19,720,222
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,131 85,500 633,598
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,166 63,637 480,051
Plan amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,844) (57,625) (67,043)
Actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,105 18,377 43,633
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (139,896) (138,245) (1,195,692)
Acquisitions and divestitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,339 13,559 19,991
Transfer to defined contribution pension plan . . . . . . . . . . . . . . . . (1,644) (18,308) (14,051)
Transfer of substitutional portion . . . . . . . . . . . . . . . . . . . . . . . . . . (70,823) (368,132) (605,325)
Curtailment and settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . –(10,956) –
Foreign currency exchange rate changes . . . . . . . . . . . . . . . . . . . . 5,500 1,675 47,009
Benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,230,300 2,307,266 19,062,393
Change in plan assets:
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . 1,159,007 1,257,195 9,906,043
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,792 59,117 1,716,171
Employers’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124,577 130,247 1,064,760
Employees’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731 3,187 6,248
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (100,157) (98,183) (856,043)
Acquisitions and divestitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,122 2,441 9,590
Transfer to defined contribution pension plan . . . . . . . . . . . . . . . . (660) (1,209) (5,641)
Transfer of substitutional portion . . . . . . . . . . . . . . . . . . . . . . . . . . (34,274) (186,650) (292,940)
Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . –(8,234) –
Foreign currency exchange rate changes . . . . . . . . . . . . . . . . . . . . 3,585 1,096 30,641
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . 1,354,723 1,159,007 11,578,829
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (875,577) (1,148,259) (7,483,564)
Unrecognized prior service benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . (227,851) (235,757) (1,947,444)
Unrecognized actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 548,019 803,104 4,683,923
Net amount recognized in the consolidated balance sheet . . . . . . . . ¥ (555,409) ¥ (580,912) $ (4,747,085)
Amounts recognized in the consolidated balance sheet consist of:
Prepaid benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 9,870 ¥ 2,212 $ 84,359
Accrued benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (827,669) (1,033,005) (7,074,094)
Intangible asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 915 1,416 7,821
Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . 261,475 448,465 2,234,829
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ (555,409) ¥ (580,912) $ (4,747,085)