Sharp 2012 Annual Report Download - page 64

62 SHARP CORPORATION
Financial Section
10. Employees’ Severance and Pension Benefits
Allowance for severance and pension benefits of the Company and its domestic consolidated subsidiaries as of March
31, 2011 and 2012 consisted of the following:
Projected benefit obligation
Less - fair value of plan assets
Less - unrecognized actuarial losses
Unrecognized prior service costs
Prepaid pension cost
Allowance for severance and pension benefits
Service costs
Interest costs on projected benefit obligation
Expected return on plan assets
Actuarial losses
Prior service costs
Expenses for severance and pension benefits
¥ 353,413
(282,757)
(123,995)
26,049
29,063
¥ 1,773
¥ 12,700
8,897
(13,091)
10,813
(3,012)
¥ 16,307
¥ 348,986
(268,758)
(129,560)
23,122
27,975
¥ 1,765
¥ 12,398
8,832
(10,458)
11,814
(3,017)
¥ 19,569
$ 4,308,469
(3,318,000)
(1,599,506)
285,457
345,370
$ 21,790
$ 153,062
109,037
(129,111)
145,852
(37,247)
$ 241,593
2011
2011
2012
2012
Yen
(millions)
Yen
(millions)
2012
2012
U.S. Dollars
(thousands)
U.S. Dollars
(thousands)
In addition, allowances for severance and pension benefits of ¥2,845 million as of March 31, 2011 and ¥4,235 million
($52,284 thousand) as of March 31, 2012 were provided by certain overseas consolidated subsidiaries.
The discount rate used by the Company and its do-
mestic consolidated subsidiaries was 2.5% for the years
ended March 31, 2011 and 2012. The rate of expected re-
turn on plan assets used by the Company and its domestic
consolidated subsidiaries for the years ended March 31,
2011 was 4.5% and 2012 was 3.7% respectively.
The estimated amount of all retirement benefits to be
paid at future retirement dates is allocated to each service
year mainly based on points.
11. Segment Information
General information about reportable segments
The Company Group’s reportable segments are compo-
nents of the Group whose operating results are regularly
reviewed by the Board of Directors when making re-
source allocation and performance assessment decisions,
and for which discrete financial information is available.
The Group’s reportable segments consist of the Con-
sumer/Information Products business and the Electronic
Components business, based on a classification by
similarity in the manufacturing and marketing method of
products.
The Consumer/Information Products business seg-
ment includes audio-visual and communication equipment,
health and environmental equipment and information
equipment. The Electronic Components business segment
includes LCDs, solar cells and other electronic devices.
Basis of measurement about reported segment profit or loss, segment assets and other material items
The accounting policies for the reportable segments are
basically the same as those described in Note 1. Sum-
mary of Significant Accounting and Reporting Policies.
Intersegment sales and income (loss) are recognized
based on the current market price.
Depreciable assets of sales and distribution groups
of the Company’s headquarters and the sales subsidiar-
ies depreciable assets not directly allocated to product
groups are not allocated to reportable segments. On the
other hand, depreciation and amortization of the assets
are allocated to reportable segments in accordance with
reasonable standards.
Expenses for severance and pension benefits recognized in profit or loss of the Company and its domestic consoli-
dated subsidiaries for the years ended March 31, 2011 and 2012 consisted of the following: