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18 18. Retirement Benefit Plans The Bank and the consolidated subsidiaries have defined-benefit corporation pension funds and lump-sum retirement benefits. The following table sets forth the funded and accrued status of the plans and the amounts recognized in the consolidated balance sheet for the Bank's and the consolidated subsidiaries' defined retirement benefit plans: (1) The changes on the retirement benefit obligation during the year ended March 31, 2014 are as follows: (4) The components of retirement benefit expense for the year ended March 31, 2014 are as follows: 3. Information of ordinary income, profit or loss, assets, liabilities and other items by reportable segment Year ended March 31, 2014 Reportable segment Other Total Adjustments Banking Leasing Total (Millions of yen) Consolidated financial statements (Millions of yen) (Thousands of U.S.dollars) Retirement benefit obligation at April 1, 2013... \ 15,637 $ 151,933 Service cost.. Interest cost Service cost... 487 4,731 Expected return on plan assets Interest cost. 171 1,661 Actuarial gain/loss. Retirement benefits paid 10 (958) 97 Amortization of actuarial gain/loss cost.. (9,308) Amortization of prior service cost Other..... Prior service cost. Retirement benefit expense. Other. Retirement benefit obligation at March 31, 2014... ¥ 15,348 $ 149,125 Notes (Millions of yen) (Thousands of U.S.dollars) Ordinary income External customers ¥ ¥ 427 $ 4,148 Intersegment 39,175 144 171 (141) 1,661 Total 39,319 ¥ 4,684 112 4,796 ¥ 43,859 ¥ 1,948 256 595 44,116 2,544 678 (1,369) 6,587 Segment profit 10,316 ¥ 1,136 $ 11,037 (2) The changes in plan assets during the year ended March 31, 2014 are as follows: (Millions of yen) (Thousands of U.S.dollars) Plan assets at April 1, 2013.. Expected return on plan assets. ¥ 12,874 141 $ 125,087 Actuarial gain/loss.. 1,009 1,369 9,803 Contributions by employers. 1,535 14,914 Contributions by employees. 59 Retirement benefits paid.. (955) 573 (9,279) (Millions of yen) (Thousands of U.S.dollars) Other..... Plan assets at March 31, 2014.. ¥ 14,664 $ 142,479 Unrecognized prior service cost.... Unrecognized actuarial gain/loss. ¥ $ (43) (417) Other.. Total ¥ (43) $ (417) 1. Concerning the consolidated subsidiaries that use a simplified method, all of the retirement benefit cost is included in the service cost. 2. Service cost does not include the amounts contributed by employees with respect to corporate pension fund plans. Segment assets Segment liabilities Other items Depreciation Interest income 2,367,246 2,232,173 217 12,579 8,857 10,533 2,379,826 2,241,031 739 17,335 13,188 ¥ 45,807 ¥ (69) 852 46,660 11,273 2,397,161 2,254,219 ¥ 45,738 (852) (922) 45,738 (69) (17,851) (16,591) 11,203 2,379,310 2,237,627 Interest expense 1,136 26,768 3,021 23 3 1,160 26,771 9 151 70 3,091 52 1,169 26,923 3,144 (98) (94) 1,169 26,824 Increase in tangible fixed assets and intangible fixed assets 1,251 89 1,341 1 1,343 3,050 1,343 Notes 1. Ordinary income is substituted for sales of companies in other industries. "Adjustments" is elimination of intersegment transactions. 2. "Other" represents business segments that are not the reportable segments and comprises business support service, credit guarantee service, data processing, credit card business, venture capital business, etc. (5) 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: Year ended March 31, 2013 (Millions of yen) Reportable segment Consolidated Other Total Adjustments financial statements Banking Leasing Total (3) The 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 bank's and the Consolidated subsidiaries' defined benefit plans: (6) The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2014 are as follows: (Millions of yen) (Thousands of Funded retirement benefit obligation........ Plan assets at fair value.. ¥ 15,308 (14,664) U.S.dollars) $ 148,736 643 (142,479) 6,247 Unfunded retirement benefit obligation...... 40 388 Net liability for retirement benefits. 684 6,645 in the consolidated balance sheet Liability for retirement benefits. 684 6,645 Asset for retirement benefits.. Net liability for retirement benefits. ¥ 684 $ 6,645 in consolidated balance sheet Bonds Stocks. General account Other.. Total Notes 35% 40% 22% 3% 100% 1. The expected long-term return on assets has been estimated based on the anticipated allocation to each asset class and the expected long-term return on assets held in each category. Ordinary income External customers ¥ 41,120 Intersegment 150 Total Segment profit Segment assets Segment liabilities Other items Depreciation Interest income 41,270 8,708 2,301,085 2,173,235 ¥ 4,903 119 5,022 ¥ 46,023 270 46,293 ¥ 2,008 577 2,585 ¥ 48,031 847 48,879 ¥ (104) (847) ¥ 47,927 (951) 47,927 346 12,160 8,569 9,054 836 2,313,246 2,181,805 16,171 12,519 9,890 2,329,417 2,194,325 (108) 9,782 (17,003) (15,760) 2,312,413 2,178,564 1,215 27,624 26 Interest expense 3,109 Increase in tangible fixed assets and intangible fixed assets 1,027 84 50 1,242 27,627 3,194 1,077 10 166 46 3 1,252 27,793 3,241 1,080 1,252 (105) (101) 27,688 3,140 1,080 Year ended March 31, 2014 (Thousands of U.S.dollars) (7) The assumptions used in accounting for the above plans were as follows: 1) Discount rate: Ordinary income 2) Expected rate of long-term return on assets: Reportable segment Other Total Adjustments Banking Leasing Total Consolidated financial statements 1.1% 1.1% External customers Intersegment $ 380,635 $ 45,511 1,399 1,088 Total 382,034 46,599 Segment profit Segment assets Segment liabilities Other items Depreciation Interest income 100,233 2,108 23,000,835 21,688,427 122,221 86,057 $ 426,146 2,487 428,643 102,341 23,123,066 21,774,494 $ 18,927 5,781 24,718 $ 445,073 8,278 $ (680) $ 444,403 (8,287) 453,361 (8,968) 444,403 7,180 109,531 (680) 108,851 168,431 128,138 23,291,498 21,902,633 (173,455) (161,212) 23,118,052 21,741,420 19. Segment Information 1. Outline of reportable segments Reportable segments are components for which separate financial information is available and that are subject to periodic examination by the Board of Directors to determine the allocation of management resources and assess performances. The Bank and its consolidated subsidiaries comprise of the Bank and 7 consolidated subsidiaries that are engaged in the financial services business that includes mainly banking services as well as leasing services. Therefore, the reportable segments of the Bank and its consolidated subsidiaries comprise 'Banking' and 'Leasing' that are distinguished by the type of the business. 'Banking' includes deposit taking, lending, investment in securities and exchange services. 'Leasing' represents lease business by Yamagin Lease Co., Ltd., one of the consolidated subsidiaries. 2. Calculation method of ordinary income, profit or loss, assets, liabilities and other items by reportable segment The accounting policies in Note 3, "Summary of Significant Accounting Policies", are adopted for the reportable segments. Reportable segment profit corresponds to ordinary profits. Ordinary income arising from intersegment transactions is based on arm's length prices. 11,037 260,085 Interest expense 29,352 Increase in tangible fixed assets and intangible fixed assets 12,155 223 29 680 864 11,270 260,114 30,033 13,029 87 1,467 505 11,358 261,591 30,547 (961) 11,358 260,629 (923) 29,634 9 13,048 13,048 Notes 1. Ordinary income is substituted for sales of companies in other industries. "Adjustments" is elimination of intersegment transactions. 2. "Other" represents business segments that are not the reportable segments and comprises business support service, credit guarantee service, data processing, credit card business, venture capital business, etc. 19