Suzuki 2003 Annual Report Download - page 34

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SUZUKI MOTOR CORPORATION
6. Accrued retirement & severance benefits
(a) Outline of an adopted retirement benefit system
In the case of the Company, as a defined benefit plan, Employee Pension Fund, Approved
Retirement Annuity System and Termination Allowance Plan are established.
The Company and some of domestic subsidiaries were given approval of exemption from payment
obligation of benefit for future service associated with the substitute component (the Company; on
April 18, 2002, domestic subsidiaries; on April 23, 2002)by Minister of Health, Labor and Welfare.
(b) Items related to a retirement benefit obligation
Remarks:1).
The premium retirement allowance paid on a temporary basis is not included.
2).
Some of subsidiaries adopt simplified methods for the calculation of retirement benefits.
3).
Associated with the substitute component, adopted the transitional treatment
provided in Articles 47-2 of the "Practical Guideline on Accounting for Postretirement
Benefit (Interim Report)" ( The 13th report prepared by the Accounting System
Committee of the Japan Institute of Certified Public Accountants), and regarded the
liabilities (projected benefit obligation or PBO) and the pension assets
corresponding to the expected returning amount of the substitute component as
disappearing from the Company's balance sheet. The expected returning amount
appropriated as of the end of current fiscal year is 57,410 million yen.
(c) Items related to retirement benefit cost
Remarks:1)
The amount of employees' contribution to Employees' Pension Fund is deducted.
2)
The retirement benefit cost of subsidiaries where simplified methods are adopted is
accounted for “a. Service cost”.
2003 2002 2003
a. Retirement benefit obligation ¥(136,959) ¥(251,620) $(1,139,434)
b. Pension assets 58,810 126,858 489,273
c.
Unrecognized retirement benefit obligation (a + b)
¥ (78,149) ¥(124,762) $ (650,160)
d. Unrecognized transition liability —32,337 —
e.
Unrecognized difference by an actuarial calculation
23,846 32,822 198,393
f
.
Unrecognized prior service cost(decrease of liabilities)
(63) (68) (525)
g.
Accrued retirement & severance benefits (c+d+e+f)
¥ (54,365) ¥ (59,670) $ (452,293)
Millions of
yen Thousands of
U.S. dollars
2003 2002 2003
a. Service cost ¥ 7,184 ¥ 8,392 $ 59,774
b. Interest cost 2,123 5,047 17,669
c. Assumed return on investment (1,644) (4,483) (13,683)
d. Amortized amount of transition liability 12,908 10,779 107,393
e. Amortized amount of actuarial difference 7,945 11,743 66,100
f. Amortized amount of prior service cost (4) (4) (40)
g. Retirement benefit cost (a+b+c+d+e+f) ¥28,513 ¥31,474 $237,215
h. Profit from the return of the substitute
components of Employees Pension Fund assets
(24,101) —(200,507)
i. Total(g+h) ¥ 4,412 ¥31,474 $ 36,707
Thousands of
U.S. dollars
Millions of
yen
34