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40 TOSHIBA Annual Report 2014
Toshiba Corporation and Subsidiaries
March 31, 2014
Notes to Consolidated Financial Statements
12. 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, 2014 and 2013 and the funded status
at March 31, 2014 and 2013 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 2014 2013 2014
Change in benefit obligation:
Benefit obligation at beginning of year ¥ 1,675,280 ¥ 1,607,643 $ 16,264,854
Service cost 59,304 54,841 575,767
Interest cost 34,105 34,463 331,117
Planparticipants'contributions 4,709 4,401 45,718
Plan amendments (1,589) − (15,427)
Actuarialloss(gain) (5,514) 37,338 (53,534)
Benefits paid (81,433) (87,009) (790,612)
Acquisitionsanddivestitures − 1,974 −
Foreign currency exchange impact 25,951 21,629 251,952
Benefit obligation at end of year ¥ 1,710,813 ¥ 1,675,280 $ 16,609,835
Change in plan assets:
Fair value of plan assets at beginning of year ¥ 959,081 ¥ 828,636 $ 9,311,466
Actualreturnonplanassets 87,425 91,958 848,786
Employer contributions 85,378 75,441 828,913
Planparticipants'contributions 4,709 4,401 45,719
Benefits paid (54,466) (55,722) (528,796)
Acquisitionsanddivestitures − 134 −
Foreign currency exchange impact 18,344 14,233 178,097
Fair value of plan assets at end of year ¥ 1,100,471 ¥ 959,081 $ 10,684,185
Funded status ¥ (610,342) ¥ (716,199) $ (5,925,650)
Amounts recognized in the consolidated balance sheets at March 31, 2014 and 2013 are as follows:
Millions of yen
Thousands of
U.S. dollars
March 31 2014 2013 2014
Other assets ¥ 1,390 ¥ 198 $ 13,495
Other current liabilities (1,140) (947) (11,067)
Accruedpensionandseverancecosts (610,592) (715,450) (5,928,078)
¥ (610,342) ¥ (716,199) $ (5,925,650)