Panasonic 2003 Annual Report Download - page 60

58 Matsushita Electric Industrial 2003
Reconciliation of beginning and ending balances of the benefit obligations of the contributory, funded benefit
pension plans, the unfunded lump-sum payment plans, and the cash balance pension plans, and the fair value of
the plan assets at March 31, 2003 and 2002, and actuarial assumptions used as of March 31, 2003, 2002 and 2001
are as follows:
Thousands of
Millions of yen U.S. dollars
2003 2002 2003
Change in benefit obligations:
Benefit obligations at beginning of year ....................... ¥2,481,297 ¥2,239,364 $ 20,677,475
Service cost ................................................................. 73,536 86,465 612,800
Interest cost ................................................................. 78,909 84,846 657,575
Plan participants’ contributions.................................... 3,442 13,676 28,683
Prior service benefit .................................................... (6,570) (36,802) (54,750)
Actuarial loss ............................................................... 213,564 290,672 1,779,700
Benefits paid................................................................ (53,261) (199,138) (443,842)
Foreign currency exchange impact............................... (3,229) 2,214 (26,908)
Benefit obligations at end of year ................................. 2,787,688 2,481,297 23,230,733
Change in plan assets:
Fair value of plan assets at beginning of year................. 1,310,040 1,341,212 10,917,000
Actual return on plan assets.......................................... (163,296) (75,284) (1,360,800)
Employer contributions ............................................... 137,273 73,238 1,143,942
Plan participants’ contributions.................................... 3,442 13,676 28,683
Benefits paid................................................................ (28,089) (44,535) (234,075)
Foreign currency exchange impact............................... (2,448) 1,733 (20,400)
Fair value of plan assets at end of year .......................... 1,256,922 1,310,040 10,474,350
Funded status ................................................................. (1,530,766) (1,171,257) (12,756,383)
Unrecognized net transition obligation........................... —3,298 —
Unrecognized prior service benefit................................. (97,136) (97,008) (809,467)
Unrecognized actuarial loss ............................................ 1,103,917 786,287 9,199,308
Net amount recognized.................................................. ¥ (523,985) ¥(478,680) $ (4,366,542)
Amounts recognized in the consolidated balance sheets
consist of:
Retirement and severance benefits ............................... ¥(1,375,143) ¥ (722,857) $(11,459,525)
Accumulated other comprehensive income (loss),
gross of tax ................................................................ 851,158 244,177 7,092,983
Net amount recognized.................................................. ¥ (523,985) ¥ (478,680) $ (4,366,542)
2003 2002 2001
Weighted average actuarial assumptions:
Discount rate ............................................................................. 2.7% 3.2% 4.0%
Expected return on plan assets.................................................... 3.5% 4.0% 4.0%
Rate of compensation increase................................................... 2.0% 2.6% 2.6%
During the year ended March 31, 2003, the balance
of “Retirement and severance benefits” increased, as a
result of the recognition of an additional minimum
pension liability, due to the decrease of discount rate,
negative return on plan assets, and the aforementioned
plan amendments. The plan amendments increased
accumulated benefit obligations mainly as a result of
the introduction of the point-based benefits system
thereby ensuring future benefits of a similar level
under the old plans to current employees.