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70 Fujitsu Limited
As a result of pension system revisions, Fujitsu Corporate Pension Fund which the Company and
certain consolidated subsidiaries participate in reported unrecognized prior service cost (reduced obliga-
tion) at September 1, 2005.
Components of net periodic benefit cost
Yen U.S. Dollars
(millions) (thousands)
Years ended March 31 2004 2005 2006 2006
Service cost ¥ 53,613 ¥ 49,892 ¥ 40,751 $ 345,347
Interest cost 48,004 29,511 28,133 238,415
Expected return on plan assets (36,125) (30,733) (28,419) (240,839)
Amortization of unrecognized obligation
for retirement benefits:
Amortization of net obligation at transition 25,435 16,691 16,228 137,526
Amortization of actuarial loss 39,578 22,609 22,943 194,432
Amortization of prior service cost (8,070) (5) (10,957) (92,856)
Net periodic benefit cost ¥ 122,435 ¥ 87,965 ¥ 68,679 $ 582,025
Gain on transfer of substitutional portion
of employees’ pension funds (146,532) — ——
Total ¥ (24,097) ¥ 87,965 ¥ 68,679 $ 582,025
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 Certified Public Accountants), the Company and certain consolidated subsid-
iaries in Japan accounted for the elimination of the future and past benefit obligations of the substitu-
tional portion as well as the related government-specified portion of the employees’ pension plan assets at
the date of the approval made in the year ended March 31, 2004.
The assumptions used in accounting for the plans
At March 31 2005 2006
Discount rate 2.5% 2.5%
Expected rate of return on plan assets 3.8% 3.2%
Method of allocating actuarial loss Straight-line method over Straight-line method over
the employees’ average remaining the employees’ average remaining
service period service period
Method of allocating prior service cost Straight-line method over 10 years Straight-line method over 10 years
Amortization period for net obligation
at transition 10 years 10 years
For the year ended March 31, 2001, the Company fully recognized in income its portion of the unrec-
ognized net obligation at transition. For additional plan assets to cover the unrecognized net obligation at
transition, the Company placed its holding of marketable securities in trust which was solely established
for the retirement benefit plan.