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Hitachi, Ltd. Annual Report 2007
64
The Company and certain subsidiaries accounted for the entire separation process as a single settlement transaction
upon the completion of the transfer to the government in accordance with EITF Issue No. 03-2, “Accounting for the
Transfer to the Japanese Government of the Substitutional Portion of Employee Pension Fund Liabilities.”
Reconciliations of beginning and ending balances of the benefit obligation of the funded defined benefit pension plans
and the unfunded defined benefit pension plans and the fair value of the plan assets are as follows:
Thousands of
Millions of yen U.S. dollars
2007 2006 2007
Change in benefit obligation:
Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . ¥2,230,300 ¥2,307,266 $18,900,847
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,648 74,131 615,661
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,888 56,166 473,627
Plan amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,486) (7,844) (12,593)
Actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,038 5,105 127,441
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (125,370) (139,896) (1,062,458)
Acquisitions and divestitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,184 2,339 188,000
Transfer to defined contribution pension plan . . . . . . . . . . . . . . . . . (10,713) (1,644) (90,788)
Transfer of substitutional portion . . . . . . . . . . . . . . . . . . . . . . . . . . . –(70,823) –
Foreign currency exchange rate changes . . . . . . . . . . . . . . . . . . . . . 3,769 5,500 31,941
Benefit obligation at end of year 2,262,258 2,230,300 19,171,678
Change in plan assets:
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . 1,354,723 1,159,007 11,480,703
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,017 200,792 567,941
Employers’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,904 124,577 1,109,356
Employees’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,211 731 10,263
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (88,857) (100,157) (753,025)
Acquisitions and divestitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,351 1,122 36,873
Transfer to defined contribution pension plan . . . . . . . . . . . . . . . . . (3,612) (660) (30,610)
Transfer of substitutional portion . . . . . . . . . . . . . . . . . . . . . . . . . . . –(34,274) –
Foreign currency exchange rate changes . . . . . . . . . . . . . . . . . . . . . 3,187 3,585 27,008
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . 1,468,924 1,354,723 12,448,509
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (793,334) (875,577) (6,723,169)
Amounts recognized in the consolidated balance sheet as of March 31, 2007 are as follows:
Thousands of
Millions of yen U.S. dollars
2007 2007
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 57,180 $ 484,576
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32,057) (271,669)
Retirement and severance benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (818,457) (6,936,076)
¥(793,334) $(6,723,169)
Amounts recognized in accumulated other comprehensive loss as of March 31, 2007 consist of:
Thousands of
Millions of yen U.S. dollars
2007 2007
Prior service benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(210,853) $(1,786,890)
Actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473,548 4,013,119
¥ 262,695 $ 2,226,229