Annual Report 2009 - Daiichi Sankyo

11.
Retirement and Termination Benefits Plans
Retirement benefits included in the liability section of the consolidated balance sheets as of March 31, 2009 and 2008 consisted
of the following:
Thousands of
Millions of yen
U.S. dollars
2009 2008 2009
Projected benefit obligation ¥(97,837) ¥(90,003) $(998,337)
Plan assets at fair value 74,391 81,261 759,092
Under-funded projected benefit obligations in excess of plan assets (23,446) (8,742) (239,245)
Unrecognized actuarial losses 19,778 9,984 201,816
Unrecognized prior service costs — — —
Net pension liabilities recognized in the consolidated balance sheet (3,668) 1,242 (37,429)
Prepaid pension assets 6,921 8,023 70,622
Accrued employees’ severance and retirement benefits ¥(10,589) ¥0(6,781) $(108,051)
In the fiscal year ended March 31, 2008, the Company and certain domestic consolidated subsidiaries transferred a part of
the unfunded lump-sum severance and retirement benefit plan to a defined contribution pension plan. As a result, projected
benefit obligation, prior service costs, and accrued employees’ severance and retirement benefits decreased by ¥5,440 million,
¥208 million, and ¥5,648 million, respectively.
The transferred amount to a defined contribution pension plan was ¥5,610 million which will be implemented for four years.
The outstanding balance to be transferred as of March 31, 2008 was ¥4,033 million and was included in other current liabilities
and other long-term liabilities.
The Companies withdrew from the multi-employer pension fund by the end of the year ended March 31, 2008.
Additional retirement benefits which are not subject to the actuarial valuation in accordance with the accounting standards for
the severance and retirement benefits may be paid to employees upon retirement.
Periodic employees’ severance and retirement benefit expenses for the years ended March 31, 2009, 2008, and 2007 consist
of the following:
Thousands of
Millions of yen
U.S. dollars
2009 2008 2007 2009
Service costs for benefits earned ¥04,627 ¥5,538 ¥10,333 $047,214
Interest costs 2,661 1,979 3,172 27,153
Expected return on plan assets (2,479) (2,582) (2,567) (25,296)
Amortization of actuarial loss (gain) 2,106 552 404 21,490
Amortization of prior service costs — (9,469) (763) —
Additional retirement benefits and other — 2,890 53,571 —
Other 3,730 3,901 808 38,061
Total ¥10,645 ¥2,809 ¥64,958 $108,622
The discount rates for calculating the projected benefit obligation and the rates of expected return on plan assets used by the
Companies were as follows:
%
2009 2008 2007
Discount rates for calculating projected benefit obligation Principally 2.5% Principally 2.5% Principally 2.5%
Rates of expected return on plan assets Principally 3.0% 3.0% 2.5 to 3.0%
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Daiichi Sankyo Co., Ltd. Annual Report 2009