Toshiba 2011 Annual Report Download - page 105

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39
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 Company and certain subsidiaries in Japan have amended their pension plan under the agreement between employees
and managements in January 2011, and introduced Cash Balance Plan from April 2011. This plan is designed that each
plan participant has a notional account, which is accumulated based on salary standards, interest rates in financial markets
and others.
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 changes in the benefit obligation and plan assets for the years ended March 31, 2011 and 2010 and the funded status
at March 31, 2011 and 2010 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 2011 2010 2011
Change in benefit obligation:
Benefi t obligation at beginning of year ¥ 1,523,910 ¥ 1,380,791 $ 18,360,361
Service cost 52,120 47,904 627,952
Interest cost 38,687 44,282 466,109
Plan participants’ contributions 4,114 3,889 49,566
Plan amendments (18,951) 108 (228,325)
Actuarial loss 28,533 117,277 343,771
Benefi ts paid (83,185) (77,711) (1,002,229)
Acquisitions and divestitures (10,638) 11,273 (128,169)
Foreign currency exchange impact (10,124) (3,903) (121,976)
Benefi t obligation at end of year ¥ 1,524,466 ¥ 1,523,910 $ 18,367,060
Change in plan assets:
Fair value of plan assets at beginning of year ¥ 800,883 ¥ 660,699 $ 9,649,193
Actual return on plan assets (7,926) 117,554 (95,494)
Employer contributions 52,207 60,896 629,000
Plan participants’ contributions 4,114 3,889 49,566
Benefi ts paid (51,773) (47,262) (623,771)
Acquisitions and divestitures 93 7,586 1,121
Foreign currency exchange impact (7,199) (2,479) (86,735)
Fair value of plan assets at end of year ¥ 790,399 ¥ 800,883 $ 9,522,880
Funded status ¥ (734,067) ¥ (723,027) $ (8,844,180)
Amounts recognized in the consolidated balance sheets at March 31, 2011 and 2010 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 2011 2010 2011
Other assets ¥ 870 ¥ 3,312 $ 10,482
Other current liabilities (628) (719) (7,566)
Accrued pension and severance costs (734,309) (725,620) (8,847,096)
¥ (734,067) ¥ (723,027) $ (8,844,180)