content_image/18766.jpg content_image/18767.jpg
efit prescribed by JWPIL and a corporate portion based on a contributory defined benefit arrangement established at the discretion of Toshiba Corporation. 

Certain subsidiaries in Japan have tax-qualified non-contributory pension plans which cover all or a part of the indemnities payable to qualified employees at the time of termination. The funding policy for the plans is to con- tribute amounts required to maintain sufficient plan assets to provide for accrued benefits, subject to the limitation on deductibility imposed by Japanese income tax laws. 

For the year ended March 31, 2002, the Company has amended the regulations of the social security benefits por- tion under the contributory trusteed employee pension funds in accordance with the revisions of the JWPIL. This amendment resulted in the reduction of the projected benefit obligations of the funds. 

Net periodic pension and severance cost for the years ended March 31, 2003 and 2002 included the following com- ponents: Thousands of 

<img src='content_image/18766.jpg'>

weighted-average discount rate of 3.0 percent and 3.5 percent, an expected long-term rate of return on plan assets of 4.0 percent and 4.0 percent, and an assumed rate of increase in salary levels of 1.9 percent and 2.1 per- cent were used in measuring the pension obligations at March 31, 2003 and 2002, respectively. 

The changes in the benefit obligations and plan assets and reconciliations of net amount recognized to funded sta- tus and accrued pension and severance costs for the years ended March 31, 2003 and 2002 were as follows: 

<img src='content_image/18767.jpg'>

