Pioneer 2016 Annual Report Download - page 40

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(1) The changes in projected benefit obligation for the years ended March 31, 2016 and 2015, were as follows:
(2) The changes in plan assets for the years ended March 31, 2016 and 2015, were as follows:
Defined benefit pension plans
Millions of Yen
Thousands of
U.S. Dollars
2016 2015 2016
Balance at beginning of year (as previously reported) ¥87,270 ¥85,628 $772,301
Cumulative effect of changes in accounting policies –(812) –
Balance at beginning of year (as restated) 87,270 84,816 772,301
Service cost 1,354 2,318 11,982
Interest cost 1,575 1,617 13,938
Actuarial losses 8,238 3,132 72,903
Benefits paid (9,571) (4,122) (84,699)
Others (1,506) (491) (13,328)
Balance at end of year ¥87,360 ¥87,270 $773,097
Millions of Yen
Thousands of
U.S. Dollars
2016 2015 2016
Balance at beginning of year ¥56,186 ¥51,637 $497,221
Expected return on plan assets 2,140 2,118 18,938
Actuarial losses (1,782) 2,828 (15,770)
Contributions from the employer 3,331 3,823 29,478
Benefits paid (9,541) (4,122) (84,434)
Others (1,167) (98) (10,327)
Balance at end of year ¥49,167 ¥56,186 $435,106
Note: Certain consolidated subsidiaries apply the simplified method in computing projected benefit obligation.
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 subsid-
iaries 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.
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.
38 Pioneer Corporation Annual Report 2016