Sharp 2004 Annual Report Download - page 46

44 Sharp Annual Report 2004
9. Employees’ Severance and Pension Benefits
Allowance for severance and pension benefits of the Company and its domestic consolidated subsidiaries as of March 31,
2003 and 2004 consisted of the following:
Projected benefit obligation ......................................................................
Less-Fair value of plan assets ...........................................................
Less-Unrecognized actuarial differences ...........................................
Less-Unrecognized net transition obligation ......................................
Unrecognized prior service costs ......................................................
Prepaid pension cost ........................................................................
Allowance for severance and pension benefits ..................................
In addition, allowance for severance and pension benefits
of ¥935 million as of March 31, 2003, and ¥925 million
($8,810 thousand) as of March 31, 2004, were provided by
certain overseas consolidated subsidiaries in conformity with
generally accepted accounting principles and practices
prevailing in the respective countries of domicile.
As explained in Note 1(K), the Company and its certain
domestic consolidated subsidiaries obtained the approval
from the Minister of Health, Labor and Welfare on August
13, 2002, for an exemption from the future benefit
obligation related to the substituted government’s portion of
pension benefits provided by social welfare pension funds.
The Company and its certain domestic consolidated
subsidiaries, on the approval date, recognized the
relinquishment of the substituted portion of benefit
obligation of welfare pension funds and the corresponding
portion of plan assets in accordance with the transitional
measures prescribed in Article 47-2 "Practical Guidelines of
Accounting for Retirement Benefits (Interim Report)" issued
by the Japanese Institute of Certified Public Accountants.
$ 3,150,086
(2,430,419)
(970,991)
(107,019)
461,305
38,600
$ 141,562
¥ 330,759
(255,194)
(101,954)
(11,237)
48,437
4,053
¥ 14,864
¥ 370,398
(202,800)
(148,162)
(14,046)
—
3,601
¥ 8,991
Service costs, net of plan participants’ contributions .........................
Interest costs on projected benefit obligation ....................................
Expected return on plan assets.........................................................
Amortization of net transition obligation .............................................
Recognized actuarial loss ...................................................................
Amortization of prior service costs.......................................................
Expenses for severance and pension benefits...................................
Gain on return of substituted portion of employee pension fund............
$ 125,010
84,343
(86,914)
26,752
90,257
(9,810)
229,638
—
$ 229,638
¥ 13,126
8,856
(9,126)
2,809
9,477
(1,030)
24,112
—
¥ 24,112
The discount rate used by the Company and its
domestic consolidated subsidiaries was 2.5% for the
years ended March 31, 2003 and 2004. The rate of
expected return on plan assets used by the Company and its
domestic consolidated subsidiaries for the years ended
March 31, 2003 and 2004 was 4.5%. The estimated
amount of all retirement benefits to be paid at future
retirement dates is allocated equally to each service year
using the estimated number of total service years.
20042004
Yen
(millions) U.S. Dollars (thousands)
200420042003
Yen
(millions) U.S. Dollars (thousands)
¥ 13,938
12,419
(12,697)
5,163
4,187
—
23,010
(7,961)
¥ 15,049
2003
Expenses for severance and pension benefits of the Company and its domestic consolidated subsidiaries for the years
ended March 31, 2003 and 2004 consisted of the following: