DIRECTV 2003 Annual Report Download - page 99

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (continued)
The following table provides assumed health care costs trend rates:
2003 2002
Health care cost trend rate assumed for next year .................................... 9.00% 8.00%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) ............... 5.00% 6.00%
Year that trend rate reaches the ultimate trend rate ................................... 2008 2007
A one-percentage-point change in assumed health care cost trend rates would have the following effects:
1-Percentage
Point Increase
1-Percentage
Point Decrease
(Dollars in Millions)
Effect on total of service and interest cost components ....................... $0.2 $(0.2)
Effect on postretirement benefit obligation ................................. 2.0 (1.7)
Plan Assets
The Company’s target asset allocation for 2004 and actual pension plan weighted average asset allocations
at December 31, 2003 and 2002, by asset categories, are as follows:
Target
Allocation
Percentage of Plan Assets at
December 31,
2004 2003 2002
Equity securities ............................................... 50-70% 55% 43%
Debt securities ................................................. 30-50% 35% 38%
Real estate .................................................... 0-20% 2% 10%
Other ........................................................ 0-20% 8% 9%
Total ........................................................ 100% 100%
The Company’s investment policy includes various guidelines and procedures designed to ensure assets are
invested in a manner necessary to meet expected future benefits earned by participants. The investment
guidelines consider a broad range of economic conditions. Central to the policy are target allocation ranges
(shown above) by major asset categories.
The objectives of the target allocations are to maintain investment portfolios that diversify risk through
prudent asset allocation parameters, achieve asset returns that meet or exceed the Plans’ actuarial assumptions,
and achieve asset returns that are competitive with like institutions employing similar investment strategies.
The investment policy is periodically reviewed by the Company and a designated third-party fiduciary for
investment matters. The policy is established and administered in a manner so as to comply at all times with
applicable government regulations.
There were no shares of the Company’s common stock included in plan assets at December 31, 2003 and
there were no shares of GM Class H common stock shares included in the plan assets at December 31, 2002.
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