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As a result of pension system revisions, Fujitsu Corporate Pension Fund in which the Company and certain consoli-
dated subsidiaries participate, reported unrecognized prior service cost (reduced obligation) at September 1, 2005.
Components of net periodic benefit cost
Yen
(millions)
U.S. Dollars
(thousands)
Years ended March 31 2006 2007 2008 2008
Service cost ¥ 40,751 ¥ 36,424 ¥ 36,646 $ 366,460
Interest cost 28,133 26,205 27,535 275,350
Expected return on plan assets (28,419) (30,724) (30,929) (309,290)
Amortization of unrecognized obligation for
retirement benefits:
Amortization of net obligation at transition 16,228 16,230 16,217 162,170
Amortization of actuarial loss 22,943 5,569 9,863 98,630
Amortization of prior service cost (10,957) (18,653) (18,613) (186,130)
Net periodic benefit cost ¥ 68,679 ¥ 35,051 ¥ 40,719 $ 407,190
In addition to net periodic benefit cost stated above, extra retirement benefits of ¥3,530 million, ¥3,874 million
and ¥3,798 million ($37,980 thousand) were paid for the years ended March 31, 2006, 2007 and 2008, respectively.
The assumptions used in accounting for the plans
At March 31 2007 2008
Discount rate 2.5% 2.5%
Expected rate of return on plan assets 2.7% 2.7%
Method of allocating actuarial loss
Straight-line method over the employees'
average remaining service period
Straight-line method over the
employees' average remaining
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 as income its portion of the unrecognized
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 a trust which was solely established for the retirement
benefit plan.
105
ANNUAL REPORT 2008FUJITSU LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS