Pioneer 2010 Annual Report Download - page 40

At March 31, 2010 and 2009, the following assets were pledged as collateral for short-term borrowings and long-term debt
of the Group:
Millions of Yen
Thousands of
U.S. Dollars
2010 2009 2010
Finished products ¥ 6,414 ¥11,440 $ 68,968
Building and structures 23,970 31,473 257,742
Land 16,812 24,366 180,774
Investment securities 13,010 4,615 139,892
Total ¥60,206 ¥71,894 $647,376
Long-term debt amounting to ¥89,430 million ($961,613
thousand) (in which current portion of long-term debt was
¥2,353 million) was borrowed by the Company and Tohoku
Pioneer Corporation in accordance with the syndicated loan
agreement contracted with the banks on March 29, 2010.
Accrued pension and severance costs for the years ended March 31, 2010 and 2009 were analyzed as follows:
Domestic
Millions of Yen
Thousands of
U.S. Dollars
2010 2009 2010
Projected benefit obligation ¥(75,659) ¥(93,818) $(813,538)
Fair value of plan assets 43,335 50,348 465,968
Unfunded retirement obligation (32,324) (43,470) (347,570)
Unrecognized prior service gain (422) (758) (4,538)
Unrecognized actuarial loss 30,332 40,776 326,150
Unrecognized transitional obligation 1,101 1,758 11,839
Net retirement obligations (1,313) (1,694) (14,119)
Prepaid pension cost 4,224 5,068 45,419
Accrued pension and severance costs ¥ (5,537) ¥ (6,762) $ (59,538)
This agreement includes certain financial covenants which
require the Company to maintain certain levels of equity on
consolidated and non-consolidated basis and certain level of
operating income on consolidated basis.
8. Retirement and Pension Plans
The Company and major domestic subsidiaries have non-
contributory defined benefit pension plans which cover
substantially all of their employees. The benefits are in the
form of annuity payments and/or lump-sum payments and are
determined based on the sum of cumulative points. The
points are accumulated based on years of service, job class
and conditions under which termination occurs. The Group’s
policy is to fund amounts required to maintain sufficient plan
assets to provide for accrued benefits, subject to the limita-
tion on deductibility imposed by the Japanese income tax
laws. The Group also sponsors a domestic non-contributory
defined-benefit Corporate Pension Fund (“CPF”) under the
Defined Benefit Corporate Pension Law of Japan, which
covers substantially all of its Japanese employees. The
benefits are determined based on the sum of cumulative
points accumulated based on years of service, job class and
conditions under which termination occurs.
Substantially all of the employees of U.S. and European
subsidiaries are covered by defined benefit pension plans.
Under such plans, the related cost of benefit is funded or
accrued. The benefits are based on the level of salary at
retirement or earlier termination of employment, the years of
service and conditions under which termination occurs.
Certain other foreign subsidiaries sponsor defined contribu-
tion pension plans or lump-sum payment plans.
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PIONEER CORPORATION Annual Report 2010