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42 TOSHIBA Annual Report 2013
Toshiba Corporation and Subsidiaries
March 31, 2013
Notes to Consolidated Financial Statements
13. ACCRUED PENSION AND SEVERANCE COSTS
All employees who retire or are terminated are usually entitled to lump-sum severance indemnities or pension benefits
determined by reference to service credits allocated to employees each year according to the regulation of retirement
benefit, length of service and conditions under which their employment terminates. The obligation for the severance
indemnity benefit is provided for through accruals and funding of the defined benefit corporate pension plan.
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, 2013 and 2012 and the funded status
at March 31, 2013 and 2012 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 2013 2012 2013
Change in benefit obligation:
Benefit obligation at beginning of year ¥ 1,607,643 ¥ 1,524,466 $ 17,102,585
Service cost 54,841 52,940 583,415
Interest cost 34,463 38,265 366,628
Plan participants' contributions 4,401 4,390 46,819
Plan amendments − 649 −
Actuarial loss 37,338 77,645 397,213
Benefits paid (87,009) (79,617) (925,628)
Acquisitions and divestitures 1,974 (9,736) 21,000
Foreign currency exchange impact 21,629 (1,359) 230,096
Benefit obligation at end of year ¥ 1,675,280 ¥ 1,607,643 $ 17,822,128
Change in plan assets:
Fair value of plan assets at beginning of year ¥ 828,636 ¥ 790,399 $ 8,815,277
Actual return on plan assets 91,958 12,207 978,277
Employer contributions 75,441 72,769 802,564
Plan participants' contributions 4,401 4,390 46,819
Benefits paid (55,722) (53,405) (592,787)
Acquisitions and divestitures 134 3,234 1,425
Foreign currency exchange impact 14,233 (958) 151,415
Fair value of plan assets at end of year ¥ 959,081 ¥ 828,636 $ 10,202,990
Funded status ¥ (716,199) ¥ (779,007) $ (7,619,138)
Amounts recognized in the consolidated balance sheets at March 31, 2013 and 2012 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 2013 2012 2013
Other assets ¥ 198 ¥ 1,175 $ 2,106
Other current liabilities (947) (768) (10,074)
Accrued pension and severance costs (715,450) (779,414) (7,611,170)
¥ (716,199) ¥ (779,007) $ (7,619,138)