Company: TAK
Filing Date: 2025-06-25
Form Type: 20-F
Source: 0001395064-25-000095
Chunk: 257

Company: TAKEDA PHARMACEUTICAL CO LTD
Filing Date: 2025-06-25
Form: 20-F
Item: Item 19
Chunk 257
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 based on actuarial valuations that are dependent upon a number of assumptions, including discount rates and future salary (benefit) increases. Service costs charged to operating expense related to defined benefit plans represent the increase in the defined benefit liability arising from pension benefits earned by active participants in the current period. Takeda is exposed to investment and other experience risks and may need to make additional contributions where it is estimated that the benefits will not be met from regular contributions, expected investment income, and assets held.

In addition, during the fiscal year ended March 31, 2025, a pension buyout was implemented for a certain retirement pension plan with participants in multiple U. S. subsidiaries. As a result, an insurance company assumed the defined benefit obligation and the plan assets at an amount that includes fees and other charges added to the obligation with the plan assets. The insurance company is henceforth responsible for providing benefit payments to the plan participants. Consequently, the investment risk of the plan assets and the risk of increasing defined benefit obligations due to factors such as the longevity of beneficiaries have been eliminated for pension benefits to active employees, vested deferred members and retired employees under the plan. This pension buyout does not have a significant impact on the consolidated statement of profit or loss.

F-48

The amounts recognized in the consolidated statements of profit or loss and the consolidated statements of financial position are as follows:

Consolidated statements of profit or loss JPY (millions)
For the Year Ended March 31
2023 2024 2025
──────────────────────────────────────────────────────────────────────────────────────────────────────────────────
Japan ¥ 2,990 ¥ 2,741 ¥ 4,182
Foreign 13,782 15,956 13,925
Defined benefit costs ¥ 16,772 ¥ 18,697 ¥ 18,106

Consolidated statements of financial position JPY (millions)
As of March 31, 2024
Japan Foreign Total
───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
Present value of defined benefit obligations ¥ 143,712 ¥ 301,078 ¥ 444,790
Fair value of plan assets 226,229 165,514 391,743
Effect of asset ceiling 63,422 - 63,422
Net defined benefit liabilities (assets) ¥ ( 19,096) ¥ 135,564 ¥ 116,469
Consolid