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Annual Report 2009 39
Components of net periodic pension cost for the years ended March 31, 2009, 2008 and 2007 were as follows:
Millions of yen
Thousands of
U.S. dollars
2009 2008 2007 2009
Service cost during the year ¥ 7,154 ¥ 5,602 ¥ 5,089 $ 73,000
Interest cost on projected benefit obligation 3,203 3,599 3,427 32,683
Expected return on plan assets (1,863) (2,045) (1,907) (19,010)
Amortization of obligation at transition 3,992 4,395 4,333 40,734
Amortization of actuarial difference 2,617 2,542 2,331 26,704
Amortization of prior service cost (973) (1,138) (1,093) (9,928)
Net periodic pension cost ¥14,130 ¥12,955 ¥12,180 $144,183
(1) Special retirement payments of ¥2,936 million ($29,959 thousand), ¥1,380 million and ¥884 million in the aggregate were made in addition to
the net periodic pension cost presented in the above table for the years ended March 31, 2009, 2008 and 2007, respectively.
(2) The allowance for retirement benefits was determined by the simplified method by certain consolidated subsidiaries and their net periodic pen-
sion cost has been included in service cost of benefits earned during the year.
Assumptions used in the actuarial calculation:
Years ended March 31
2009 2008
Discount rate: 2.10% 2.10%
Expected rates of return: 2.30% 2.30%
Amortization period for prior service cost: 14 years (amortized by the straight-line method over a period which falls within the
average remaining years of service of the participants in the plans, commencing the year
subsequent to the year in which the cost was incurred)
Amortization period for actuarial difference: 13-14 years (amortized by the straight-line method over a period which falls within the
average remaining years of service of the participants in the plans, in the year subsequent
to the year in which such difference was incurred) except for certain overseas subsidiaries
which charged it directly to retained earnings for the years ended March 31, 2008.
Amortization period for transition obligation arising from the
initial adoption of a new method of accounting:
15 years, except for certain consolidated subsidiaries which charged or credited it to
income when incurred, and certain overseas subsidiaries which charge it directly to
retained earnings.
8.
INCOME TAXES
Deferred tax assets and liabilities at March 31, 2009 and 2008 consisted of the following:
Millions of yen
Thousands of
U.S. dollars
2009 2008 2009
Deferred tax assets:
Loss carryforwards ¥ 30,344 ¥ 27,618 $ 309,632
Nondeductible retirement benefits 16,656 18,916 169,959
Nondeductible write-downs of inventories 3,495 3,002 35,663
Nondeductible accrued bonuses 2,410 5,700 24,591
Nondeductible loss on impairment of fixed assets 1,742 1,685 17,775
Other 5,686 5,170 58,020
Gross deferred tax assets 60,334 62,094 615,653
Less: Valuation allowance (51,015) (47,545) (520,561)
Total deferred tax assets 9,319 14,548 95,091
Deferred tax liabilities:
Nondeductible unrealized gain on contribution of securities to a pension trust (1,567) (1,567) (15,989)
Net unrealized holding gain on other securities —(480) —
Other (101) (102) (1,030)
Total deferred tax liabilities (1,668) (2,149) (17,020)
Net deferred tax assets ¥ 7,650 ¥ 12,398 $ 78,061