Trend Micro 2014 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2014 Trend Micro annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 51

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51

(Employee retirement benefit plans)
(Millions of yen)
At the end of previous fiscal year
(As of Dec 31, 2013)
At the end of current fiscal year
(As of Dec 31, 2014)
1. Pension and severance plans
The parent company has an unfunded retirement plan
("Plan") as a defined benefit plan and has been a
member of Kanto IT Software welfare pension fund.
Kanto IT Software pension fund is categorized as
multi-employer pension fund.
The consolidated subsidiaries adopt defined benefit
plan or defined contribution plan and certain
subsidiary has a 401(k) retirement plan.
The overview of multi-employer pension fund is as
follows.
(1) Funded status of Kanto IT Software pension plan
 (as of Mar 31, 2013)
 Pension asset 222,956
 Benefit obligation 206,135
 Variance 16,821
(2) The ratio of the Company's contribution for
Kanto IT Software pension fund (as of Mar 31, 2013)
 1.05%
(3) Supplemental information
The reasons for the variance of (1) are as follows.
 Shortage of carried forward (10,082)
 Surplus 26,903
 Variance 16,821
The unfunded prior service cost is amortized evenly
over 20 years.
1. Pension and severance plans
The parent company has an unfunded retirement plan
("Plan") as a defined benefit plan and has been a
member of Kanto IT Software welfare pension fund.
Kanto IT Software pension fund is categorized as
multi-employer pension fund.
The consolidated subsidiaries adopt funded defined
benefit plan or defined contribution plan and
certain subsidiary has a 401(k) retirement plan.
The retirement benefit assets and the retirement
benefit liabilities of certain subsidiaries are
calculated by compendium method.
2. Defined benefit plan
(1)Reconciliations of beginning and ending balance
of the defined benefit obligations are as follows
(excluding the plan adopting the compendium method);
 Beginning balance 3,719
 Current service cost 352
 Interest cost 61
 Actuarial gains and losses 251
 Benefits paid (54)
 Others 161
 Ending balance 4,493
(2)Reconciliations of beginning and ending balance
of the plan assets are as follows (excluding the
plan adopting the compendium method);
2. Allowance for retirement benefits
 1.Benefit obligation (3,749)
 2.Plan assets 243
 3.Unfunded status (1 + 2 ) (3,506)
 4.Unrecognized net actuarial loss 610
 5.Allowance for retirement benefits
 (3 + 4) (2,896)
(Note) In calculation of allowance for retirement
benefits, certain subsidiaries adopt compendium
method.

 Beginning balance 243
 Expected return on plan assets 4
 Actuarial gains and losses 0
 Contributions from the employer 43
 Benefits paid (4)
 Others 24
 Ending balance 311
(3)Reconciliations of beginning and ending balance
of the retirement benefit liabilities adopting the
compendium method are as follows;
 Beginning balance 30
3.Pension expense
 1.Service cost 338
 2.Interest cost 50
 3.Expected return of plan assets (3)
 4.Recognition of actuarial gain / loss 101
 Sub-total (1+2+3+4) 487
 5.Contribution to Kanto IT Software
 pension plan 215
 6.Pension expense for
  Defined contribution plan 1,295
 Net periodic pension cost
 (1+2+3+4+5+6) 1,998
(Note) Pension expenses of the consolidated
subsidiaries adopting compendium method are booked
as service cost.
 Pension expense 12
 Benefits paid (3)
 Others 3
 Ending balance 43
(4)Ending balance of the defined benefit
obligations / assets and the retirement benefits
liabilities recognized in the consolidated balance
sheets
(including the plan adopting the compendium method)
Funded defined benefit obligations 1,846
Plan assets (311)
 1,535
Unfunded defined benefit obligations 2,689
Balance in the consolidated FS 4,225
Retirement benefit liabilities 4,225
Balance in the consolidated FS 4,225
(5)Pension expense
4. Assumption used for calculating the pension
benefit obligation
 1. Projected cost allocation method
 Straight line basis
 Service cost 352
 Interest cost 61
 Expected return on plan assets (4)
 Recognition of actuarial gain / loss 110
34