Suzuki 2012 Annual Report Download - page 55

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Consolidated Financial Statements
SUZUKI MOTOR CORPORATION 53
(d) Items related to the calculation standard for the retirement benefit obligation
NOTE 7: Retirement and severance benefit
(a) Outline of an adopted retirement benefit system
As for The Company, cash balance corporate pension plan and lump-sum retirement benefit plan are established. And as for
some of consolidated subsidiaries, defined benefit corporate pension plan and termination allowance plan are established.
(b) Component of retirement benefit obligation as of March 31, 2012 and 2011
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.
(c) Component of retirement benefit cost for years ended March 31, 2012 and 2011
Remarks: The retirement benefit cost of subsidiaries where simplified methods are adopted is accounted for
“a. Service cost”
Millions of yen
Thousands of
U.S. dollars
2012 2011 2012
a. Retirement benefit obligation ¥(105,874) ¥(104,625) $(1,288,170)
b. Pension assets 76,475 70,228 930,467
c. Unfunded retirement benefit obligation (a+b) ¥ (29,399) ¥ (34,397) $ (357,703)
d. Unrecognized difference by an actuarial calculation 1,377 2,701 16,764
e. Unrecognized prior service cost (decrease of liabilities) (4,875) (5,427) (59,315)
f. Net amount in consolidated balance sheet (c+d+e) (32,896) (37,122) (400,254)
g Prepaid pension cost 3,750 —45,628
h. Provision for retirement benefits (f-g) ¥ (36,647) ¥ (37,122) $ (445,882)
Millions of yen
Thousands of
U.S. dollars
2012 2011 2012
a. Service cost ¥5,338 ¥6,278 $64,954
b. Interest cost 1,760 1,613 21,418
c. Assumed return on investment (579) (487) (7,056)
d. Amortized amount of actuarial difference 1,155 1,167 14,053
e. Amortized amount of prior service cost (750) (722) (9,130)
f. Retirement benefit cost (a+b+c+d+e) ¥6,923 ¥7,849 $84,240
a. Allocation method of the estimated
amount of retirement benefits : Straight line basis
b. Discount rate : 2012 Mainly 2.00%
2011 Mainly 2.00%
c. Reassessment rate : 2012 1.50%
2011 1.50%
d. Assumed return of investment ratio : 2012 Mainly 0.70%
2011 0.61% – 1.90%
e. Number of years for amortization : Mainly 15 years
of prior service cost To be amortized by straight line method with certain term
within the employees’ average remaining service years at the
time when the difference was caused.
f. Number of years for amortization : Mainly 15 years
of actuarial difference
To be amortized from the next fiscal year by straight line method
with certain term within the employees’ average remaining
service years at the time when the difference was
caused.