Yamaha 2011 Annual Report Download - page 84

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82 Yamaha Corporation
The Company and its domestic consolidated subsidiaries have defined benefit pension plans, such as welfare pension plans and lump-sum pay-
ment plans.
In certain cases, the Company pays employees who are retiring, etc., additional retirement benefits that are not considered to be retirement
benefit obligations as calculated under actuarial methods according to retirement benefit accounting principles.
Certain overseas consolidated subsidiaries have either defined benefit plans or defined contribution pension plans.
The following table sets forth the funded and accrued status of the plans, and the amounts recognized in the accompanying consolidated
balance sheets at March 31, 2011 and 2010 for the Company’s and the consolidated subsidiaries’ defined benefit pension plans:
Millions of yen
Thousands of
U.S. dollars (Note 3)
2011 2010 2011
Retirement benefit obligation ¥(131,788) ¥(134,771) $(1,584,943)
Plan assets at fair value 73,917 78,546 888,960
Unfunded retirement benefit obligation (57,871) (56,224) 695,983
Unrecognized actuarial gain or loss 22,541 25,013 271,088
Unrecognized prior service cost (2,269) (2,464) (27,288)
Net retirement benefit obligation at transition (37,599) (33,675) (452,183)
Prepaid pension expenses — — —
Provision for retirement benefits ¥ (37,599) ¥ (33,675) $ (452,183)
The components of retirement benefit expenses for the years ended March 31, 2011 and 2010 are outlined as follows:
Millions of yen
Thousands of
U.S. dollars (Note 3)
2011 2010 2011
Service cost ¥ 4,433 ¥ 5,152 $ 53,313
Interest cost 2,600 2,930 31,269
Expected return on plan assets (2,745) (2,843) (33,013)
Amortization of prior service cost (194) (157) (2,333)
Amortization of actuarial gain or loss 5,672 7,065 68,214
Additional retirement benefit expenses 606 807 7,288
Total ¥10,373 ¥12,955 $124,750
The assumptions used in accounting for the above plans are summarized as follows:
2011 2010
Discount rate 2.0% 2.0%
Expected rate of return on plan assets 3.5% 3.5%
Amortization of prior service cost 10 years (straight-line method) 10 years (straight-line method)
Amortization of actuarial gain or loss 10 years (straight-line method) 10 years (straight-line method)
23. Retirement Benefits