Panasonic Announces Incurring Other Income in Operating Profit
Osaka, Japan, February 4, 2019 — Panasonic Corporation ([TSE:6752] “Panasonic”) today announced that Panasonic will incur other income in operating profit in the fourth quarter of the fiscal year ending March 31, 2019 (fiscal 2019).
1. OtherIncomeinOperatingProfit
The Company and certain domestic subsidiaries plan to change the retirement pension system from July 1, 2019. Specifically, regarding part of the past contributions of the defined benefit pension plan, the Company will make a transition to the defined contribution pension plan.
Accordingly, the retirement benefit liabilities will be revised in the Company’s consolidated accounts for the fourth quarter of fiscal 2019, and the Company plans to incur approximately 82.9 billion yen as other income in operating profit.
This change will be effective upon the authorization of the Ministry of Health, Labour and Welfare.
This other income to be recorded in operating profit pertains to an accounting adjustment, arising from the conversion of the obligation under the defined benefit pension plan to an asset under the defined contribution pension plan, and the Company assumes there is no impact on the level of payment to employees.
2. Outlook
This other income is included in the revised financial forecasts for fiscal 2019 which the Company announced today