EMC 2008 Annual Report Download - page 20
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Table of Contents
We also seek to invest in businesses that offer complementary products, services or technologies. These investments are accompanied by risks similar to
those encountered in an acquisition of a business.
Our pension and retirement benefit plan assets are subject to market volatility.
We have noncontributory defined benefit pension plans and a post-retirement benefit plan assumed as part of our Data General acquisition. The plans'
assets are invested in common stocks, bonds and cash. The expected long-term rate of return on the plans' assets is 8.0%. For the ten years ended
December 31, 2007, the actual long-term rate of return was 6.0%. In 2008, we experienced a 27.0% loss on the plans' assets. As such, the actual long-term rate
of return achieved on the plans' assets for the ten years ended December 31, 2008 was 1.6%. Given current market conditions, should we not achieve the
expected rate of return on our plans' assets or if our plans experience a decline in the fair value of their assets, we may be required to contribute assets to the
plans which could materially adversely affect our results of operations or financial condition.
Our business could be materially adversely affected by changes in regulations or standards regarding energy use of our products.
We continually seek ways to increase the energy efficiency of our products. Recent analyses have estimated the amount of global carbon emissions that
are due to information technology products. As a result, governmental and non-governmental organizations have turned their attention to development of
regulations and standards to drive technological improvements and reduce such amount of carbon emissions. There is a risk that the rush to development of
these standards will not fully address the complexity of the technology developed by the IT industry or will favor certain technological approaches.
Depending on the regulations or standards that are ultimately adopted, compliance could adversely affect our business, results of operations or financial
condition.
Our business could be materially adversely affected as a result of war or acts of terrorism.
Terrorist acts or acts of war may cause damage or disruption to our employees, facilities, customers, partners, suppliers, distributors and resellers, which
could have a material adverse effect on our business, results of operations or financial condition. Such conflicts may also cause damage or disruption to
transportation and communication systems and to our ability to manage logistics in such an environment, including receipt of components and distribution of
products.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
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