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Strategy FINANCIAL SECTION
66 Corporate DataBusiness Segment Corporate Structure
11. EMPLOYEE RETIREMENT AND SEVERANCE BENEFITS
The Company and certain of its subsidiaries have contribu-
tory and noncontributory defined benefit pension plans cov-
ering substantially all of their employees. Benefits payable
under the plans are based on employee earnings and years of
service. The Company and certain of its subsidiaries also have
defined contribution pension plans covering substantially
all of their employees.
The amounts of cost recognized for the defined contribu-
tion pension plans of the Company and certain of its subsid-
iaries for the years ended December 31, 2013, 2012 and 2011
were ¥14,383 million ($136,981 thousand), ¥13,021 million
and ¥12,511 million, respectively.
Obligations and funded status
Reconciliations of beginning and ending balances of the benefit obligations and the fair value of the plan assets are as follows:
December 31 Japanese plans Foreign plans
Millions of yen
Thousands of
U.S. dollars Millions of yen
Thousands of
U.S. dollars
2013 2012 2013 2013 2012 2013
Change in benefit obligations:
Benefit obligations at beginning of year ¥ 651,520 ¥ 626,924 $ 6,204,952 ¥ 364,609 ¥ 262,130 $ 3,472,467
Service cost 26,005 25,738 247,667 9,448 5,884 89,981
Interest cost 11,655 11,788 111,000 14,299 13,176 136,181
Plan participants’ contributions — — — 2,617 2,315 24,924
Actuarial loss 14,959 6,049 142,466 8,981 45,145 85,534
Benefits paid (19,297) (18,979) (183,780) (9,415) (10,407) (89,668)
Curtailments and settlements — — — (2,868) — (27,314)
Foreign currency exchange rate changes — — — 98,901 46,366 941,914
Benefit obligations at end of year 684,842 651,520 6,522,305 486,572 364,609 4,634,019
Change in plan assets:
Fair value of plan assets at beginning
of year
495,452 448,736 4,718,590 249,534 192,033 2,376,514
Actual return on plan assets 84,382 41,593 803,638 20,640 25,290 196,571
Employer contributions 19,810 22,589 188,667 28,705 7,832 273,381
Plan participants’ contributions — — — 2,617 2,315 24,924
Benefits paid (17,648) (17,466) (168,076) (9,106) (9,825) (86,724)
Settlements — — — (2,656) — (25,295)
Foreign currency exchange rate changes — — — 70,793 31,889 674,219
Fair value of plan assets at end of year 581,996 495,452 5,542,819 360,527 249,534 3,433,590
Funded status at end of year ¥ (102,846) ¥ (156,068) $ (979,486) ¥ (126,045) ¥ (115,075) $ (1,200,429)