EMC 2008 Annual Report Download - page 91
Download and view the complete annual report
Please find page 91 of the 2008 EMC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81 -
82 -
83 -
84 -
85 -
86 -
87 -
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
 |
 |
Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
accumulated other comprehensive loss. We expect that $14.6 million of the total balance included in accumulated other comprehensive loss at December 31,
2008 will be recognized as a component of net periodic benefit costs in 2009. We do not expect to receive any refunds from the Pension Plans in 2009.
The components of net periodic benefit credit of the Pension Plans are as follows (table in thousands):
2008 2007 2006
Interest cost $ 21,876 $ 20,857 $ 20,143
Expected return on plan assets (34,142) (32,928) (29,738)
Recognized actuarial loss 2,683 4,861 8,207
Net periodic benefit credit $ (9,583)$ (7,210)$ (1,388)
The weighted-average assumptions used in the Pension Plans to determine benefit obligations at December 31 are as follows:
December 31,
2008 December 31,
2007 December 31,
2006
Discount rate 6.6% 6.6% 5.9%
Rate of compensation increase N/A N/A N/A
The weighted-average assumptions used in the Pension Plans to determine periodic benefit cost for the years ended December 31 are as follows:
December 31,
2008 December 31,
2007 December 31,
2006
Discount rate 6.6% 5.9% 5.7%
Expected long-term rate of return on plan assets 8.25% 8.25% 8.25%
Rate of compensation increase N/A N/A N/A
The expected long-term rate of return on plan assets considers the current level of expected returns on risk free investments (primarily government
bonds), the historical level of the risk premium associated with the other asset classes in which the portfolio is invested and the expectations for future returns
of each asset class. The expected return for each asset class was weighted based on the target asset allocation to develop the expected long-term rate of return
on assets. The weighted average asset allocations are as follows:
December 31,
2008 December 31,
2007
Equity securities 58% 70%
Debt securities 41 30
Cash 1 0
Total 100% 100%
The target allocation of the assets in the Pension Plans at December 31, 2008 consisted of equity securities of 70% and debt securities of 30%.
Our Pension Plan assets are managed by outside investment managers. Our investment strategy with respect to pension assets is to maximize returns
while preserving principal.
85