Trust Recovery Growth Vitalization - Marubeni

Notes to Consolidated Financial Statements
The accumulated benefit obligation for all defined benefit pension
plans was ¥201,629 million ($1,884,383 thousand) and ¥235,303
million at March 31, 2005 and 2004, respectively.
The changes in minimum liability included in other comprehensive
income, excluding tax effect, were ¥55 million ($514 thousand) and
¥43 million of losses for the years ended March 31, 2005 and 2004,
respectively.
The components of net pension expense of the Company’s and
certain subsidiaries’ plans for the years ended March 31, 2005, 2004
and 2003 were as follows:
Millions of yen
Thousands of
U.S. dollars
2005 2004 2003 2005
Service cost – benefits earned during the year .................................. ¥ 6,040 ¥ 6,051 ¥ 8,417 $ 56,449
Interest cost on projected benefit obligation ..................................... 5,838 6,245 7,371 54,561
Expected return on plan assets ......................................................... (6,763) (8,214) (7,782) (63,206)
Net amortization and deferrals ........................................................... 4,724 5,799 4,580 44,150
Employees’ contributions ..................................................................
Net loss on transfer of the substitutional portion of the
(257) (253) (706) (2,402)
employee pension fund liabilities ..................................................... 1,453 – – 13,579
Net pension expense ......................................................................... ¥11,035 ¥ 9,628 ¥11,880 $103,131
Details of the net loss on the transfer of the substitutional portion of the employee pension fund liabilities is as follows:
Thousands of
Millions of yen U.S. dollars
Subsidy from government .......................................................................................................................
Settlement loss:
¥(13,405) $(125,281)
Derecognition of accrued salary progression ....................................................................................... (1,064) (9,944)
Recognition of unrealized actuarial loss ............................................................................................... 15,922 148,804
¥ 1,453 $ 13,579
The aggregate projected benefit obligation and aggregate fair value of plan assets for pension plans with projected benefit obligations in
excess of plan assets are as follows:
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
Aggregate projected benefit obligation ......................................................................... ¥33,021 ¥30,455 $308,607
Aggregate fair value of plan assets ............................................................................... 21,802 19,938 203,757
The aggregate accumulated benefit obligation and aggregate fair value of plan assets for pension plans with accumulated benefit obligations in
excess of plan assets are as follows:
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
Aggregate accumulated benefit obligation ................................................................... ¥21,600 ¥19,834 $201,869
Aggregate fair value of plan assets ............................................................................... 12,373 11,201 115,636
The weighted-average assumptions used to determine benefit obligations at March 31, 2005, 2004 and 2003 were as follows:
2005 2004 2003
Discount rates ............................................................................................................... 2.5% 2.5% 2.5%
Rates of increases in future salary levels ...................................................................... 4.7% 4.8% 3.3%
The weighted-average assumptions used to determine net pension expenses for the years ended March 31, 2005, 2004 and 2003 were
as follows:
2005 2004 2003
Discount rates ............................................................................................................... 2.5% 2.5% 3.0%
Rates of increases in future salary levels ...................................................................... 4.8% 3.3% 3.3%
Expected long-term rates of return on plan assets ....................................................... 2.7% 3.0% 3.0%
The expected long-term rates of return are calculated based on the historical returns for certain years adjusted by the target rate of return for
the components of the current asset portfolio.