D-Link 2005 Annual Report Download - page 47
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D-LINK CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Continued)
(j) Retirement Plans
The following table sets forth the benefit obligation and accrued pension balance as of December
31, 2005 and 2004:
December 31,
2005 2004
Benefit obligation:
Nonvested benefit obligation $ (276,644) (205,138)
Vested benefit obligation (5,776) (20,850)
Accumulated benefit obligation (282,420) (225,988)
Projected future salary increase (182,034) (153,208)
Projected benefit obligation (464,454) (379,196)
Fair value of plan assets 413,789 393,031
Funded status (50,665) 13,835
Unrecognized net transition obligation 236 9,696
Unrecognized net gain (loss) 60,197 14,815
Additional minimum pension liability 8,709 (325)
Prepaid pension cost (Accrued pension cost) $ 18,477 38,021
The components of D-Link’s, DTI’s and Alpha’s net periodic pension cost for 2005 and 2004 are
summarized as follows:
2005 2004
Service cost $ 35,196 46,532
Interest expenses 13,272 11,506
Actual returns on pension fund (5,987) (3,581)
Amortization (7,453) (1,078)
$35,028 53,379
Actuarial assumptions at December 31, 2005 and 2004, are summarized as follows:
December 31,
2005 2004
Discount rate 3.50% 3.50%
Rate of increase in future compensation levels 3.00% 3.00%
Expected long-term rate of return on plan assets 3.50% 3.50%
The pension costs of D-Link and subsidiaries were $75,595 thousand under their defined
contribution pension plans.