Suzuki 2008 Annual Report Download - page 41

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40 SUZUKI MOTOR CORPORATION
(c) Items related to retirement benefit cost
Remarks:
The retirement benefit cost of subsidiaries where simplified methods are adopted is accounted for
“a. Service cost”.
Thousands of
U.S. dollars
Millions of
yen
2008 2007 2008
a. Service cost ¥7,274 ¥6,413 $72,603
b. Interest cost 1,491 1,474 14,887
c. Assumed return on investment (443) (112) (4,428)
d. Amortized amount of actuarial difference 908 945 9,064
e. Amortized amount of prior service cost (718) (718) (7,173)
f. Retirement benefit cost (a+b+c+d+e) ¥8,511 ¥8,001 $84,952
Consolidated Financial Statements of 2008
(d) Items related to the calculation standard for the retirement benefit obligation
a. Term allocation of the estimated
amount of retirement benefits : Period fixed amount basis
b. Discount rate : 2008 2.00%
2007 2.00%
c. Assumed return of investment ratio : 2008 0.85% - 1.90%
2007 0.23% - 1.90%
d. Number of years for amortization : Mainly 15 years
of prior service cost To be amortized by straight line method with the employees’
average remaining service years at the time when the
difference was caused.
e. Number of years for amortization of : Mainly 15 years
the difference caused by an actuarial To be amortized from the next fiscal year by straight line
calculation method with the employees’ average remaining service years
at the time when the difference was caused.
NOTE 8: Accrued retirement and 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.
(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.
2008 2007 2008
a. Retirement benefit obligation ¥(109,000) ¥(115,009) $(1,087,936)
b. Pension assets 62,912 61,439 627,933
c.
Unrecognized retirement benefit obligation (a + b)
¥ (46,087) ¥ (53,569) $ (460,003)
d.
Unrecognized difference by an actuarial calculation
7,275 11,430 72,615
e.
Unrecognized prior service cost (decrease of liabilities)
(7,583) (8,302) (75,690)
f.
Accrued retirement and severance benefits (c+d+e)
¥ (46,395) ¥ (50,441) $ (463,078)
Millions of
yen
Thousands of
U.S. dollars