Pioneer 2015 Annual Report Download - page 21

(b) Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering the long-term rates of return which are
expected currently and in the future from various components of the plan assets.
A salary increase index by age on March 31, 2013 as the base date is mainly used for measuring the projected
benefit obligation.
(8) Assumptions used for the years ended March 31, 2015 and 2014, were set forth as follows:
2015 2014
Discount rate 1.3%–4.3% 1.3%–4.5%
Expected rate of return on plan assets 3.00%–7.25% 3.00%–7.25%
Defined contribution pension plan
The required contribution amount to the defined contribution plan of the Company and its consolidated subsidiaries
is ¥482 million ($4,017 thousand) and ¥509 million as of March 31, 2015 and 2014, respectively.
(7) Plan assets
(a) Components of plan assets
Plan assets as of March 31, 2015 and 2014, consisted of the following:
2015 2014
Debt investments securities 41% 47%
Equity investments securities 32%33%
Cash and cash equivalents 10%14%
Others 17% 6%
Total 100% 100%
(3) The reconciliation between the liability recorded in the consolidated balance sheet and the balances of projected
benefit obligation and plan assets at March 31, 2015 and 2014, was as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Funded projected benefit obligation ¥ 85,935 ¥ 84,442 $ 716,125
Plan assets (56,186) (51,637) (468,217)
29,749 32,805 247,908
Unfunded projected benefit obligation 1,335 1,186 11,125
Net liability for projected benefit obligation ¥ 31,084 ¥ 33,991 $ 259,033
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Accrued pension and severance costs ¥32,202 ¥34,585 $268,350
Asset for retirement benefits (1,118) (594) (9,317)
Net liability for projected benefit obligation ¥31,084 ¥33,991 $259,033
(4) The components of net periodic retirement benefit costs for the years ended March 31, 2015 and 2014, were
as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Service cost ¥ 2,318 ¥ 2,273 $ 19,317
Interest cost 1,617 2,215 13,475
Expected return on plan assets (2,118) (2,053) (17,650)
Recognized actuarial losses 3,223 2,762 26,858
Amortization of prior service gain (886) (886) (7,383)
Amortization of transitional obligations for retirement benefits 181 202 1,508
Additional retirement benefits for an early retirement incentive plan 7,647 –63,725
Others (72) (11) (600)
Net periodic retirement benefit costs ¥11,910 ¥ 4,502 $ 99,250
(5) Amounts recognized in other comprehensive income (before income tax effect) in respect of defined retirement
benefit plans for the years ended March 31, 2015 and 2014, were as follows:
(6) Amounts recognized in accumulated other comprehensive income (before income tax effect) in respect of
defined retirement benefit plans as of March 31, 2015 and 2014, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Prior service cost ¥ 1,018 –$ 8,483
Actuarial (gains) (3,004) –(25,033)
Transitional obligation for retirement benefits (182) –(1,517)
Total ¥(2,168) –$ (18,067)
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Unrecognized prior service gain ¥ (5,403) ¥ (6,421) $ (45,025)
Unrecognized actuarial losses 28,103 31,107 234,192
Unrecognized transitional obligation for retirement benefits –182 –
Total ¥22,700 ¥24,868 $189,167
Note: This table includes plans to which the simplified method is applied.
Note: This table includes plans to which the simplified method is applied.
38 Pioneer Corporation Annual Report 2015 39
Pioneer Corporation Annual Report 2015