Pioneer 2015 Annual Report Download - page 20

The current portion of long-term debt amounting to
¥6,367 million ($53,058 thousand) as of March 31,
2015, was borrowed by the Company in accordance
with the syndicated loan agreement entered into with
the banks on March 27, 2015. This agreement in-
cludes certain financial covenants which require the
Company to maintain certain levels of equity on a
consolidated and nonconsolidated basis and certain
levels of operating income on a consolidated basis.
In addition, long-term debt amounting to ¥10,000
million ($83,333 thousand) as of March 31, 2015,
was borrowed by the Company in accordance with
the syndicated loan agreement entered into with
the banks on September 25, 2014. This agreement
includes certain financial covenants which require the
Company to maintain with the banks on September 25,
2014. This agreement includes certain financial cov-
enants which require the Company to maintain certain
levels of equity on a consolidated and nonconsoli-
dated basis.
The current portion of long-term debt amounting
to ¥52,270 million as of March 31, 2014, was borrowed
by the Company and Tohoku Pioneer Corporation in
accordance with the syndicated loan agreements en-
tered into with the banks on September 25, 2013 and
March 31, 2014. These agreements include certain
financial covenants which require the Company to
maintain certain levels of equity on a consolidated and
nonconsolidated basis and certain levels of operat-
ing income and net income on a consolidated basis,
as well as Tohoku Pioneer Corporation maintaining
certain levels of equity on a nonconsolidated basis.
In addition, the current portion of long-term debt
amounting to ¥10,000 million as of March 31, 2014,
was borrowed by the Company in accordance with
the syndicated loan agreement contracted with the
banks on September 27, 2011. This agreement in-
cludes certain financial covenants which require the
Company to maintain certain levels of equity on a
consolidated and nonconsolidated basis.
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 retirement occurred. The cumulative points are
accumulated based on years of service and job class.
In some cases, additional retirement benefits are paid
when an employee retires.
The Company and certain consolidated subsidiaries
have joined multi-employer pension fund plans. Each
company’s portion of plan assets corresponding to
its contributions has been reasonably computed
and included in the tables below for defined benefit
pension plans.
Certain consolidated subsidiaries apply the
simplified method in computing accrued pension
and severance costs and retirement benefit costs
for their defined benefit pension plans and lump-
sum severance payment plans. Reconciliations of
the plans to which the simplified method is applied
are omitted because they are immaterial.
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.
(1) The changes in projected benefit obligation for the years ended March 31, 2015 and 2014, were as follows:
(2) The changes in plan assets for the years ended March 31, 2015 and 2014, were as follows:
Defined benefit pension plans
Years ending March 31 Millions of Yen
Thousands of
U.S. Dollars
2016 ¥ 8,135 $ 67,792
2017 761 6,342
2018 10,175 84,791
2019 – –
2020 – –
2021 and thereafter – –
Total ¥19,071 $158,925
As of March 31, 2015 and 2014, the following assets were pledged as collateral for short-term borrowings and
long-term debt of the Group:
Annual maturities of long-term debt and long-term capital lease obligations as of March 31, 2015, and for the next
five years and thereafter were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Land ¥10,594 ¥12,953 $ 88,283
Building and structures 13,184 14,016 109,867
Investment securities 2,090 4,594 17,417
Total ¥25,868 ¥31,563 $215,567
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Balance at beginning of year (as previously reported) ¥85,628 ¥80,185 $713,567
Cumulative effect of changes in accounting policies (812) –(6,767)
Balance at beginning of year (as restated) 84,816 80,185 706,800
Service cost 2,318 2,273 19,317
Interest cost 1,617 2,215 13,475
Actuarial losses 3,132 8,740 26,100
Benefits paid (4,122) (9,694) (34,350)
Others (491) 1,909 (4,092)
Balance at end of year ¥87,270 ¥85,628 $727,250
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Balance at beginning of year ¥51,637 ¥52,292 $430,308
Expected return on plan assets 2,118 2,053 17,650
Actuarial losses 2,828 1,821 23,567
Contributions from the employer 3,823 3,830 31,858
Benefits paid (4,122) (9,694) (34,350)
Others (98) 1,335 (816)
Balance at end of year ¥56,186 ¥51,637 $468,217
36 Pioneer Corporation Annual Report 2015 37
Pioneer Corporation Annual Report 2015