Fujitsu 2007 Annual Report Download - page 77

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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 2005 2006 2007 2007
Service cost ¥ 49,892 ¥ 40,751 ¥ 36,424 $ 308,678
Interest cost 29,511 28,133 26,205 222,076
Expected return on plan assets (30,733) (28,419) (30,724) (260,373)
Amortization of unrecognized obligation for
retirement benefits:
Amortization of net obligation at transition 16,691 16,228 16,230 137,542
Amortization of actuarial loss 22,609 22,943 5,569 47,195
Amortization of prior service cost (5) (10,957) (18,653) (158,076)
Net periodic benefit cost ¥ 87,965 ¥ 68,679 ¥ 35,051 $ 297,042
In addition to net periodic benefit cost stated above, extra retirement benefits of ¥5,421 million,
¥3,530 million and ¥3,874 million ($32,831 thousand) were paid for the years ended March 31, 2005,
2006 and 2007, respectively.
The assumptions used in accounting for the plans
At March 31 2006 2007
Discount rate 2.5% 2.5%
Expected rate of return on plan assets 3.2% 2.7%
Method of allocating actuarial loss Straight-line method over the Straight-line method over the
employees’ average remaining 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
Method of allocating net
obligation at transition Straight-line method over 10 years Straight-line method over 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.
Annual Report 2007 75