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57
Annual Report 2005
10. Retirement Benefits
The Company and the majority of the consolidated subsidiaries in Japan have unfunded lump-sum retirement plans
which, in general, cover all employees who retire before a retirement age prescribed in their internal codes. The employees
are entitled to the benefits primarily based on their length of service and basic salary as of the retirement date.
In addition, the Company and the majority of the consolidated subsidiaries in Japan participate in contributory defined
benefit plans which cover substantially all employees. The major contributory defined benefit plan (the “Plan”), which is
referred to as the Fujitsu Welfare Pension Fund, entitles employees upon retirement at the normal retirement age to either a
lump-sum payment or pension annuity payments for life commencing at age 60, or a combination of both based on their length
of service, basic salary as of the retirement date and the number of years of participation in the Plan. The contributions of the
Company and the subsidiaries covered by the Plan and their employees are made to the Fujitsu Welfare Pension Fund which
is an external organization. Regarding the employees’ pension plan, in response to the enactment of the Japanese Welfare
Pension Insurance Law on defined-benefit pension plans, the Fujitsu Welfare Pension Fund applied for an exemption from
the obligation to pay benefits for future employee services related to the substitutional portion, and on March 23, 2004 received
approval of the exemption from the Minister of Health, Labour and Welfare.
The majority of the consolidated subsidiaries outside Japan have defined benefit plans and/or defined contribution
plans covering substantially all their employees.
The balances of the projected benefit obligation and plan assets, funded status and the amounts recognized in the
consolidated financial statements as of March 31, 2004 and 2005, and the components of net periodic benefit cost for the
years ended March 31, 2003, 2004 and 2005 are summarized as follows:
Projected benefit obligation and plan assets
Yen U.S. Dollars
(millions) (thousands)
At March 31 (Consolidated domestic accounts) 2004 2005 2005
Projected benefit obligation ¥(1,209,288) ¥(1,247,141) $(11,655,523)
Plan assets 799,058 876,758 8,194,000
Projected benefit obligation in excess of plan assets (410,230) (370,383) (3,461,523)
Unrecognized net obligation at transition 98,874 81,653 763,112
Unrecognized actuarial loss 335,285 314,353 2,937,878
Unrecognized prior service cost (reduced obligation) (682) (593) (5,542)
Prepaid pension cost (102,447) (110,777) (1,035,299)
Accrued retirement benefits ¥ (79,200) ¥(85,747) $ (801,374)
Applying the transitional provisions as prescribed in paragraph 47-2 of “Practical Guidelines of Accounting and
Retirement Benefits-Interim Report” (Accounting Committee Report No.13 issued by the Japanese Institute of Certi-
fied Public Accountants), the Company and certain consolidated subsidiaries in Japan accounted for the elimination of
the future and past benefit obligations of the substitutional portion as well as the related government-specified portion of
the employees’ pension plan assets at the date of the approval.