Pioneer 2012 Annual Report Download - page 40

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8. Retirement and Pension Plans
The Company and major Japanese subsidiaries
have defined benefit pension plans and defined
contribution pension plans. The benefits are
determined based on the sum of cumulative points
and conditions under which termination occurred.
The cumulative points are accumulated based
on years of service and job class. Following the
abolishment of qualified retirement pension plan,
the Company and certain Japanese subsidiaries
transferred part of defined benefit pension plans into
defined contribution pension plans effective January
1, 2012, and October 1, 2011, respectively, and also
revised the defined benefit pension plans.
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 contribution
pension plans or lump-sum payment plans.
Accrued pension and severance costs for the years ended March 31, 2012 and 2011, were as follows:
The effect of partial transition from defined benefit pension plans to the defined contribution pension plans for the
year ended March 31, 2012, was as follows:
Plan assets amounting to ¥8,748 million ($106,683 thousand) were transferred to the defined contribution pension plans.
The components of net periodic retirement benefit costs for the years ended March 31, 2012 and 2011, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2012 2011 2012
Projected benefit obligation ¥(63,738) ¥(77,461) $(777,293)
Fair value of plan assets 36,880 44,477 449,756
Unfunded retirement obligation (26,858) (32,984) (327,537)
Unrecognized prior service gain (8,163) (354) (99,548)
Unrecognized actuarial loss 27,038 29,794 329,732
Unrecognized transitional obligation 606 882 7,390
Net retirement obligations (7,377) (2,662) (89,963)
Prepaid pension cost 245 3,699 2,988
Accrued pension and severance costs ¥ (7,622) ¥ (6,361) $ (92,951)
Millions of Yen
Thousands of
U.S. Dollars
2012 2011 2012
Service cost ¥3,146 ¥3,038 $38,366
Interest cost 1,786 1,879 21,780
Expected return on plan assets (1,637) (1,720) (19,963)
Amortization of prior service gain (344) (69) (4,195)
Recognized actuarial loss 2,857 2,738 34,841
Amortization of transitional obligations for retirement benefits 210 221 2,561
Net periodic retirement benefit costs ¥6,018 ¥6,087 $73,390
Millions of Yen
Thousands of
U.S. Dollars
2012 2012
Decrease in projected benefit obligation ¥8,690 $105,975
Unrecognized actuarial loss (3,756) (45,805)
Unrecognized transitional obligation (94) (1,146)
Decrease in accrued pension and severance costs ¥4,840 $ 59,024
Japan
38 Pioneer Corporation Annual Report 2012