AR2017

73/90

(4) Components of retirement benefit expensesMillions of yen Thousands ofU.S. dollars201720162017Service cost¥1,754¥1,352$15,641Interest cost1874261,670Expected return on plan assets(726)(733)(6,479)Amortization of actuarial losses (gains)6814006,073Amortization of prior service cost(283)(284)(2,525)Other(25)(7)(228)Retirement benefit expenses for the defined benefit plans¥1,587¥1,155$14,152Special retirement expenses¥   ―¥  438$    ―Loss on abolishment of retirement benefit plan―265―Notes:i.Retirement benet expenses of consolidated subsidiaries using the simplied method are included in service cost.ii.Employee’s contributions to the corporate pension fund are not included in the retirement benet expenses for the dened benet plans.iii.“Special retirement expenses” and “Loss on abolishment of retirement benet plan” are recognized in extraordinary loss.(5) Remeasurements of defined benefit plansBreakdown of items (before tax effect) recorded in other comprehensive income of remeasurements of defined benefit plans are as follows:Millions of yen Thousands ofU.S. dollars201720162017Prior service cost¥ 283¥  284$ 2,525Actuarial losses (gains)(451)3,990(4,022)Total¥(167)¥4,274$(1,497)(6) Remeasurements of defined benefit plansBreakdown of items (before tax effect) recorded in accumulated other comprehensive income of remeasurements of defined benefit plans are as follows:Millions of yen Thousands ofU.S. dollars201720162017Unrecognized prior service cost¥ (545)¥  (828)$ (4,858)Unrecognized actuarial losses (gains)5,4345,88648,442Total¥4,889¥5,057$43,583(7) Items related to plan assets1.Breakdown of major items The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2017 and 2016 was as follows:20172016Bonds52.9%56.8%Stocks 22.9%20.0%Alternatives15.9%19.4%Cash and deposits5.1%1.0%Other3.2%2.8%Total100.0%100.0%Note: Alternatives are mainly investments on hedge funds.2.Method for determining the expected long-term rate of return on plan assets In determining the expected long-term rate of return on plan assets, estimates are considered based on the current and expected allocation of plan assets and the current and expected long-term rate of return from the various assets comprising the plan assets.(8) Major actuarial assumptions as of March 31, 2017 and 2016 were as follows:20172016Discount rateMainly 0.5%Mainly 0.5%Expected long-term rate of return on plan assetsMainly 3.5%Mainly 3.5%Expected rates of pay raisesMainly 2.8%Mainly 2.8%2. Defined contribution planSome of the consolidated subsidiaries contributed ¥160 million (U.S. $1,426 thousand) and ¥171 million, for the years ended March 31, 2017 and 2016 to the defined contribution plans, respectively.71LINTEC ANNUAL REPORT 2017