| (3) |
Movements in the present value of the defined benefit obligations for the years ended December 31, 2016 and 2017 are as follows: |
|
(In millions of yen)
|
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| 2016 | 2017 | |||||||
|
Defined benefit obligations at the beginning of year |
5,495 | 6,204 | ||||||
|
Current service costs |
1,620 | 1,933 | ||||||
|
Interest costs |
127 | 208 | ||||||
|
Remeasurement losses/(gains): |
||||||||
|
Actuarial losses arising from changes in demographic assumptions(1) |
7,742 | (28 | ) | |||||
|
Actuarial gains arising from changes in financial assumptions(2) |
(8,314 | ) | (1,513 | ) | ||||
|
Experience adjustments(3) |
(102 | ) | (552 | ) | ||||
|
Payments from the plan |
(174 | ) | (453 | ) | ||||
|
Net transfer(4) |
49 | (57 | ) | |||||
|
Increase due to business combinations |
— | 261 | ||||||
|
Exchange differences on translation of foreign operations |
(239 | ) | 186 | |||||
|
|
|
|
|
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|
Defined benefit obligations at the end of year |
6,204 | 6,189 | ||||||
|
|
|
|
|
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| (1) |
In 2016, actuarial losses arising from changes in demographic assumptions resulted mainly from a decrease in estimated termination rates compared with 2015. The decrease in the estimated termination rates primarily related to the fact that the rate of the increase of the number of separation fell below compared to that of the number of employee who are subject to defined benefit plans compared to 2015. In 2017, there is no material change of the estimated termination rates compared with those in 2016. |
| (2) |
In 2016, actuarial gains arising from changes in financial assumptions resulted mainly from an increase in the discount rate and a decrease in the period end weighted average salary increase rate at year end 2016, as compared to corresponding rates at year end in 2015. The increase in the discount rate primarily related to the fact that the estimated duration, which is used to calculate the retirement benefit obligation, increased due to the decrease in estimated termination rates described above. The decrease in the weighted average salary increase rate primarily related to the fact that the salary increase rates for the current year and the estimated future inflation rate decreased. |
In 2017, actuarial gains arising from changes in financial assumptions resulted mainly from an increase in discount rate in comparison with 2016 and a decrease in the weighted average salary increase rate. The increase in the discount rate primarily related to the fact that the estimated duration, which is used to calculate the retirement benefit obligations, increased due to the decrease in estimated termination rates described above. The decrease in the weighted average salary increase rate primarily related to the fact that the salary increase rates for the current year and the estimated future inflation rate decreased.
| (3 ) |
Experience adjustments represent the impact on the liabilities of differences between actual experiences during the year compared with the previous actuarial assumptions. |
| (4) |
Net transfer primarily represents the transfer of defined benefit obligations associated with employees of NAVER or other NAVER group companies joining LINE Plus Corporation, LINE PLAY Corporation, LINE Biz Plus Corporation and LINE Friends Corporation and vice versa. |