MITSUBISHI ESTATE Annual Report 2014

Financial sectionThe following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as of March 31, 2014 for the Company’s and the consolidated subsidiaries’ defined benefit plans:Millions of yenThousands of U.S. dollarsFunded retirement benefit obligation¥ 96,033$ 933,092Plan assets at fair value(95,509)(927,995)524 5,097 Unfunded retirement benefit obligation13,810 134,191 Net liability for retirement benefits in the balance sheet14,335 139,288 Liability for retirement benefits20,380 198,020 Asset for retirement benefits(6,320)(61,414)Other current liabilities276 2,682 Net liability for retirement benefits in the balance sheet¥ 14,335$ 139,288* The accrued employees’ retirement benefits recognized by Rockefeller Group, Inc., a consolidated subsidiary, at March 31, 2014 were included in “Other current liabilities.”The components of retirement benefit expense for the year ended March 31, 2014 are as follows:Millions of yenThousands of U.S. dollarsService cost¥ 4,735$ 46,011Interest cost1,621 15,750 Expected return on plan assets(1,933)(18,782)Amortization of actuarial loss729 7,088 Amortization of prior service cost(61)(599)Amortization of net retirement benefit obligation at transition(116)(1,127)Other442 4,297 Retirement benefit expense¥ 5,417$ 52,638* Retirement benefit expenses for executive officers of the Company and some domestic consolidated subsidiaries adopting the simplified method are included in “Service cost.”Unrecognized prior service cost and unrecognized actuarial loss included in accumulated other comprehensive income (before tax effect) as of March 31, 2014 are as follows:Millions of yenThousands of U.S. dollarsUnrecognized prior service cost¥   328$  3,190 Unrecognized actuarial loss(8,097)(78,674)Total¥(7,768)$(75,484)The fair values of plan assets, by major category, as a percentage of total plan assets as of March 31, 2014 are as follows:Bonds20%Stocks56%General accounts at insurance companies14%Other10%Total100%* Approximately 40% of total plan assets are held in the retirement benefit trust.The expected rate of return on the plan assets was estimated based on the current and anticipated allocation of plan assets as well as the current and anticipated long-term returns on various kinds of assets constituting the plan assets.The assumptions used in accounting for the above plans are as follows:Discount rates1.0 – 3.95%Expected rates of return on plan assets0.5 – 7.5%62MITSUBISHI ESTATE CO., LTD.