Funding shortfalls and installment contributions arising from the dissolution of a pension fund under a multi-employer scheme

「On 5 December 2017, the National Electronics and Information Technology Industries Employees’ Pension Fund decided at its representative meeting to dissolve the fund as of 31 March 2018. Accordingly, during the current consolidated fiscal year, ¥1,886 million of liabilities related to special contributions under the multi-employer plan, previously recorded as provisions, was reversed and recognized as reductions in cost of sales, selling, general and administrative expenses, and R&D expenses. The ¥285 million funding shortfall to be covered by the Company was recognized in long-term financial liabilities and recorded in cost of sales, selling, general and administrative expenses, and R&D expenses.」

「On 5 December 2017, the National Electronics and Information Technology Industries Employees’ Pension Fund, a multi-employer plan in which we participate, decided at its representative meeting to dissolve the fund as of 31 March 2018. The fund’s remaining assets will be distributed to its participants, deferred participants and beneficiaries. Employees who wish to do so will be transferred to a defined contribution pension plan. We will cover the funding shortfall, representing the difference between the amount originally payable to employees and the distributions. We plan to make contributions in installments over the 4 years following payment of the distributions to cover the shortfall associated with the transfer to the defined contribution plan.」