Mitsubishi 2012 Annual Report Download - page 53

(In millions of yen)
March 31, 2011
Hedged
item
Notional
amount
Due more
than 1 year
Fair value
Pay-fixed, receive-
floating (recorded
as fair value):
Long-term
debt ¥9,724 ¥9,724 ¥8
Pay-fixed, receive-
floating (special
hedge provisions):
Long-term
debt 4,000 750 (*)
Total ¥ — ¥ — ¥8
(*) As interest rate swaps under the special hedge provisions are accounted
together with hedged item (long-term debt), their fair values are reflected
in the fair value of long-term loans payable.
17. Retirement Benefits
MMC and its consolidated subsidiaries have defined benefit pension
plans including contributory plans in accordance with the Welfare
Pension Institute Law of Japan, defined benefit corporate pension
plans and lump-sum payment plans, and defined contribution pen-
sion plans. Additional retirement benefits are paid in certain cases
upon an employee’s retirement and similar.
MMC and its certain domestic consolidated subsidiaries trans-
ferred part of their retirement benefit plans (tax-qualified pension
plans) to the defined contribution pension plans and defined
benefit pension plans this year.
Information of multi-employer pension plans included in the
above plans for which the required contribution has been accounted
for as pension expense was as follows at March 31, 2011 and 2010:
(In millions of yen)
March 31,
2011 2010
Pension Plan assets ¥24,702 ¥25,127
Benefit obligations under pension plan rules 25,165 24,630
Difference ¥ (463) ¥ 497
The ratio of MMC and its consolidated subsidiaries’ payments
to total contributions of the multi-employer plans as of March 31,
2011 and 2010 was 58.0%. This ratio is not equal to the ratio of
the amount actually contributed by the MMC group.
Defined Benefit Plans
The discount rates used to determine the retirement benefit obliga-
tion were 1.5% ~ 2.0% for MMC and its domestic consolidated
subsidiaries at March 31, 2012 and 2011, 3.5% ~ 6.2% and 4.6%
~ 8.0% for its foreign consolidated subsidiaries at March 31, 2012
and 2011, respectively. The rates of return on plan assets assumed
were 0.7% ~ 4.0% for MMC and its domestic consolidated sub-
sidiaries, 5.0% ~ 8.0% for its foreign consolidated subsidiaries at
March 31, 2012 and 2011.
Prior service cost is amortized using the straight line method
over periods of 1 to 15 years for the years ended March 31, 2012
and 2011. These periods are within the estimated average remain-
ing service years of the employees.
The amortization period for actuarial gains and losses starts from
the subsequent year and actuarial gains and losses are amortized by
the straight line method over periods of 5 to 15 years ended March
31, 2012 and 2011. These periods are within the estimated average
remaining service years of the employees.
Unrecognized net obligations and assets at the date of initial
application are amortized within one year.
The retirement benefit obligation for MMC and its consolidated
subsidiaries’ employees’ defined benefit plans at March 31, 2012
and 2011 are summarized as follows:
(In millions of yen)
(In thousands
of U.S. dollars)
March 31,
2012 2011 2012
Retirement benefits obligation
¥(175,551) ¥(172,469) $(2,135,918)
Pension plan assets at fair
value 61,962 59,607 753,897
Unfunded status
(113,588) (112,862) (1,382,020)
Unrecognized actuarial losses
24,600 18,525 299,312
Unrecognized prior service
costs (10,724) (4,957) (130,487)
Net recognized retirement
benefits obligation (99,712) (99,294) (1,213,195)
Prepaid pension premiums
8,889 7,626 108,162
Provision for retirement
benefits ¥(108,602) ¥(106,921) $(1,321,358)
MITSUBISHI MOTORS CORPORATION
Annual Report 2012 51