Toshiba 2006 Annual Report Download - page 75

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29
28
Certain subsidiaries in Japan have tax-qualified non-contributory pension plans which cover all or a part of the indemnities
payable to qualified employees at the time of termination. The funding policy for the plans is to contribute amounts required
to maintain sufficient plan assets to provide for accrued benefits, subject to the limitation on deductibility imposed by
Japanese income tax laws.
The Company uses a March 31 measurement date for the majority of its plans.
The changes in the benefit obligation and plan assets and reconciliations of net amount recognized to funded status and
accrued pension and severance costs for the years ended March 31, 2006 and 2005 are as follows:
Thousands of
Millions of yen U.S. dollars
March 31 2006 2005 2006
Change in benefit obligation:
Benefit obligation at beginning of year ¥1,296,805 ¥1,290,504 $11,083,804
Service cost 46,403 44,106 396,607
Interest cost 32,244 33,134 275,590
Plan participants’ contributions 2,329 2,932 19,906
Plan amendments (5,278) 2,110 (45,111)
Actuarial loss 57,557 22,024 491,940
Benefits paid (61,357) (69,032) (524,419)
Return of substitutional portion to the government (20,637) (29,767) (176,385)
Foreign currency exchange impact 1,702 794 14,547
Benefit obligation at end of year ¥1,349,768 ¥1,296,805 $11,536,479
Change in plan assets:
Fair value of plan assets at beginning of year ¥647,836 ¥617,832 $5,537,060
Actual return on plan assets 152,106 26,028 1,300,051
Employer contributions 55,007 54,223 470,146
Plan participants’ contributions 2,329 2,932 19,906
Benefits paid (37,052) (38,794) (316,684)
Return of substitutional portion to the government (10,541) (15,019) (90,094)
Foreign currency exchange impact 1,616 634 13,812
Fair value of plan assets at end of year ¥811,301 ¥647,836 $6,934,197
Funded status ¥538,467 ¥648,969 $4,602,282
Unrecognized actuarial loss (397,246) (499,433) (3,395,265)
Unrecognized net obligation at transition —(12,495) —
Unrecognized prior service cost 59,590 57,737 509,316
Net amount recognized ¥200,811 ¥194,778 $1,716,333
Amounts recognized in the consolidated balance sheets consist of:
Prepaid pension cost ¥(3,849) ¥(2,672) $(32,897)
Accrued pension and severance costs 474,198 581,598 4,052,974
Accumulated other comprehensive loss, pre-tax (269,538) (384,148) (2,303,744)
Net amount recognized ¥200,811 ¥194,778 $1,716,333
Accumulated benefit obligation at end of year ¥1,285,079 ¥1,229,014 $10,983,581
The components of the net periodic pension and severance cost for the years ended March 31, 2006 and 2005 are as follows:
Thousands of
Millions of yen U.S. dollars
Year ended March 31 2006 2005 2006
Service cost—benefits earned during the year ¥46,403 ¥44,106 $396,607
Interest cost on projected benefit obligation 32,244 33,134 275,590
Expected return on plan assets (21,504) (18,637) (183,795)
Amortization of unrecognized net obligation at transition 12,495 12,025 106,795
Amortization of prior service cost (3,455) (3,584) (29,530)
Recognized actuarial loss 23,575 24,894 201,495
Settlement loss 5,045 7,992 43,120
Net periodic pension and severance cost ¥94,803 ¥99,930 $810,282
The Company expects to contribute ¥57,947 million ($495,274 thousand) to its defined benefit plans in the year ending
March 31, 2007.