Pioneer 2013 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
classes.
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, 2013 and 2012, were as follows:
The components of net periodic retirement benefit costs for the years ended March 31, 2013 and 2012, were as follows:
Assumptions used for the years ended March 31, 2013 and 2012, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Projected benefit obligation ¥(64,693) ¥(63,738) $(688,223)
Fair value of plan assets 41,397 36,880 440,393
Unfunded retirement obligation (23,296) (26,858) (247,830)
Unrecognized prior service gain (7,310) (8,163) (77,766)
Unrecognized actuarial loss 21,825 27,038 232,181
Unrecognized transitional obligation 382 606 4,064
Net retirement obligations (8,399) (7,377) (89,351)
Prepaid pension cost 157 245 1,670
Accrued pension and severance costs ¥ (8,556) ¥ (7,622) $ (91,021)
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Service cost ¥ 2,755 ¥ 3,146 $ 29,309
Interest cost 1,555 1,786 16,542
Expected return on plan assets (1,192) (1,637) (12,681)
Amortization of prior service gain (885) (344) (9,415)
Recognized actuarial loss 2,710 2,857 28,830
Amortization of transitional obligations for retirement benefits 194 210 2,064
Net periodic retirement benefit costs ¥ 5,137 ¥ 6,018 $ 54,649
2013 2012
Discount rate 1.5–2.5% 2.5%
Expected rate of return on plan assets 3.0% 3.0–4.0%
Amortization period of prior service gain or cost Mainly 10 to 15 years Mainly 10 to 15 years
Recognition period of actuarial gain or loss Mainly 10 to 18 years Mainly 10 to 18 years
Amortization period of transitional obligation Mainly 15 years Mainly 15 years
Japan
Pioneer Corporation Annual Report 2013
38