\474 million for machinery, \253 million for land, \117 million for other for the year ended December 31, 2007. The impairment loss for idle assets was measured based on the sealing prices and the nominal value of the idle assets. 8. Short-Term Bank Loans and Long-Term Debt Short-term bank loans, principally unsecured, consisted of notes payable to banks bearing annual interest rates of 1.20% and 1.74% at December 31, 2008 and 2007, respectively. Long-term debt at December 31, 2008 and 2007 consisted of the following: Millions of yen Thousands of U.S. dollars 2008 2007 2008 Loans with collateral from banks, insurance companies and other, bearing annual interest rates of 1.44% and 1.58% for current portion of long-term debt and lease obligations and long-term debt and lease obligations less current portion at December 31, 2008, respectively ........ \9,856 \10,592 $108,277 9,856 10,592 108,277 Less: current portion ...................... (1,858) (3,725) (20,418) \7,997 \ 6,867 $ 87,859 Assets pledged as collateral for short-term bank loans and long-term debt at December 31, 2008 and 2007 were as follows: Millions of yen Thousands of U.S. dollars 2008 2007 2008 Property, plant and equipment at net book value ...................... \23,975 \25,566 $263,376 The aggregate annual maturities of long-term debt and lease obligations subsequent to December 31, 2009 were summarized as follows: Year ending December 31, Millions of yen Thousands of U.S. dollars 2009............................................................ \1,858 $ 20,418 2010............................................................ 357 3,930 2011............................................................ 3,655 40,160 2012............................................................ 353 3,886 2013............................................................ 3,344 36,740 2014 and thereafter ..................................... 285 3,141 \9,856 $108,277 9. Retirement Benefit Plans for Employees The Company and its domestic consolidated subsidiaries have defined benefit plans, tax-qualified pension plans and lump-sum payment plans covering substantially all employees who are entitled to lump-sum or annuity payments, the amounts of which are determined by reference to their basic rates of pay, length of service and the conditions under which termination occurs. The following table sets forth the funded and accrued status of the plans, and the amounts recognized in the consolidated balance sheets as of December 31, 2008 and 2007 related to the Company’s and the consolidated subsidiaries’ defined benefit plans: Millions of yen Thousands of U.S. dollars 2008 2007 2008 Projected benefit obligation ........ \(16,157) \(17,098) $(177,493) Plan assets at fair value ............... 11,464 16,228 125,937 Funded status ............................. (4,693) (870) (51,556) Unrecognized actuarial gain ........ 5,460 852 59,987 Unrecognized prior service cost ... (203) (229) (2,236) Prepaid pension cost ................... 1,219 476 13,399 Accrued retirement benefits ........ \ (655) \ (723) $ (7,204) The components of net periodic retirement benefit expenses for the years ended December 31, 2008 and 2007 were outlined as follows: Millions of yen Thousands of U.S. dollars 2008 2007 2008 Service cost ................................. \780 \ 834 $ 8,571 Interest cost ................................ 317 332 3,492 Expected return on plan assets .... (191) (116) (2,106) Amortization of actuarial (gain) loss ... 87 (19) 962 Amortization of unrecognized prior service cost ....................... (25) (25) (283) Total ........................................... \968 \1,004 $10,636 The assumptions used in accounting for the defined benefit plans were as follows: December 31, 2008 2007 Discount rate ............................................ Mainly 2.0% Mainly 2.0% Expected rate of return on plan assets ....... Mainly 2.0% Mainly 0.75% 10. Income Taxes The Company and its domestic consolidated subsidiaries are subject to a number of taxes based on earnings, i.e. corporation tax, inhabitants’ taxes and enterprise tax, which, in the aggregate, resulted in a statutory tax rate of approximately 40.5 per cent for the years ended December 31, 2008 and 2007. The effective tax rates reflected in the consolidated statements of income for the years ended December 31, 2008 and 2007 differ from the statutory tax rate for the following reasons: 2008 2007 Statutory tax rate ...................................................... 40.5% 40.5% Effect of: Permanent difference . entertainment expenses ... 2.0 0.7 Permanent difference . dividend income............... (1.4) (2.8) Inhabitants’ taxes per capital ................................. 1.2 0.6 Amortization of goodwill ...................................... 1.9 (0.0) Equity in gain of affiliates ...................................... (1.6) (1.6) Valuation allowance ............................................. 23.5 (0.3) Different tax rates applied to income of foreign consolidated subsidiaries ......................... 2.1 1.3 Tax deduction of experiment and research expenses ... (4.5) (3.5) Prior year income taxes ......................................... . 6.9 Other, net ............................................................. (1.4) 3.2 Effective tax rates ...................................................... 62.4% 45.0% Toagosei Co., Ltd. 35