Toyota 2005 Annual Report Download - page 108

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106 >NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Changes in recognized net actuarial loss for the years
ended March 31, 2003, 2004, and 2005 were primarily due
to changes in estimates made for actuarial assumptions,
changes in differences between expected and actual
returns on plan assets, and the decrease in net actuarial
loss due to the transfers to the government of the
Substitution Portion of the EPF liabilities.
For plans where the accumulated benefit obligation net
of plan assets exceeds the accrued pension and severance
costs, Toyota has recorded a minimum pension liability.
The minimum pension liability amounts at March 31,
2004 and 2005 were ¥96,594 million and ¥56,021 million
($522 million), respectively. Changes in the minimum
pension liability are reflected as adjustments in other
comprehensive income (loss) for the years ended March
31, 2003, 2004 and 2005 as follows:
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for which the accumulated
benefit obligations exceed plan assets are as follows:
U.S. dollars
Yen in millions in millions
March 31, March 31,
2004 2005 2005
Projected benefit obligation ............................................................................................ ¥1,051,841 ¥512,571 $4,773
Accumulated benefit obligation...................................................................................... 954,158 489,975 4,563
Fair value of plan assets ................................................................................................... 349,217 63,675 593
Components of the net periodic pension cost are as follows:
U.S. dollars
Yen in millions in millions
For the year
For the years ended March 31, ended March 31,
2003 2004 2005 2005
Service cost........................................................................................ ¥ 71,873 ¥ 75,988 ¥ 60,715 $ 565
Interest cost....................................................................................... 49,030 48,674 37,790 352
Expected return on plan assets......................................................... (23,003) (24,991) (27,517) (256)
Amortization of prior service costs.................................................. (14,272) (15,092) (16,599) (155)
Recognized net actuarial loss ........................................................... 22,977 45,653 22,366 208
Settlement loss resulting from the transfer
of the substitutional portion .......................................................... — 213,830 74,344 692
Amortization of net transition obligation....................................... 19,630 18,963 9,981 93
Net periodic pension cost ............................................................ ¥126,235 ¥363,025 ¥161,080 $1,499
U.S. dollars
Yen in millions in millions
For the year
For the years ended March 31, ended March 31,
2003 2004 2005 2005
Minimum pension liability adjustments,
included in other comprehensive income (loss)........................... ¥(171,978) ¥273,265 ¥9,780 $91
Weighted-average assumptions used to determine benefit obligations as of March 31, 2004 and 2005 are as follows:
March 31,
2004 2005
Discount rate...................................................................................................................................................... 2.2% 2.6%
Rate of compensation increase ......................................................................................................................... 0.5–9.7% 0.1– 9.7%