Annual Report 2007 - Komatsu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other postretirement benefit plan
Some U.S. subsidiaries provide certain postretirement health
care and life insurance benefits for substantially all of their employees.
The plans are contributory, with contributions indexed
to salary levels. Employee contributions are adjusted to provide
for any costs of the plans in excess of those paid for by the
subsidiaries. The policy is to fund the cost of these benefits as
claims and premiums are paid. These benefits are currently unfunded.
Accumulated postretirement benefit obligation and funded status of the U.S. subsidiaries' plans at March 31,2007 and 2006:
Millions of yen
Thousands of
U.S. dollars
2007 2006 2007
Accumulated postretirement benefit obligation ¥ 11,614 ¥ 12,224 $ 98,424
Funded status, end of year ¥(11,614) ¥(12,224) $(98,424)
Current liability ¥ (756) — $ (6,407)
Accrued benefit liability (10,858) — (92,017)
¥(11,614) — $(98,424)
Amounts recognized in accumulated other comprehensive income (loss) at March 31, 2007:
Actuarial loss ¥ 1,733 — $ 14,686
Prior service cost 3,534 — 29,949
¥ 5,267 — $ 44,635
Funded status of the postretirement benefit plan at March 31, 2006:
Funded status — ¥(12,224) —
Unrecognized net loss — 4,561 —
Unrecognized prior service cost — 1,976 —
Accrued benefit liability — ¥ (5,687) —
Components of net periodic postretirement benefit cost
Net periodic postretirement benefit cost of the U.S. subsidiaries' plans for the years ended March 31, 2007, 2006 and 2005,
included the following components:
Thousands of
Millions of yen
U.S. dollars
2007 2006 2005 2007
Service cost ¥ 329 ¥ 266 ¥ 253 $ 2,788
Interest cost 608 625 663 5,153
Net amortization 419 369 353 3,551
Net periodic postretirement benefit cost ¥1,356 ¥1,260 ¥1,269 $11,492
The estimated actuarial loss and prior service cost for the postretirement benefit plans that will be amortized from accumulated
other comprehensive income into net periodic postretirement benefit cost over the next fiscal year are summarized as follows.
Thousands of
Millions of yen U.S. dollars
Actuarial loss ¥226 $1,915
Prior service cost 148 1,254
71 Annual Report 2007