Hitachi 2009 Annual Report Download - page 71

The objective of the Company’s investment policy is to ensure a stable return from the plans’ investments over the long term,
which allows the Company’s and certain subsidiaries’ pension funds to meet their future obligations. In order to achieve the
above objective, a target rate of return is established, taking into consideration the composition of participants, level of funded
status, the Company’s and certain subsidiaries’ capacity to absorb risks and the current economic environment. Also, a target
asset allocation is established to achieve the target rate of return, based on expected rate of return by each asset class,
standard deviation of rate of return and correlation coefficient among the assets. The investments are diversified primarily into
domestic and foreign equity and debt securities according to the target asset allocation. Rebalancing will occur if markets
fluctuate in excess of certain levels. The Company and certain subsidiaries periodically review actual returns on assets,
economic environments and their capacity to absorb risk and realign the target asset allocation if necessary.
The Company and its subsidiaries expect to contribute ¥101,335 million ($1,034,031 thousand) to their defined benefit plans
for the year ending March 31, 2010.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid.
Years ending March 31 Millions of yen
Thousands of
U.S. dollars
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥139,731 $1,425,827
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,682 1,333,490
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,915 1,376,684
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136,034 1,388,102
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122,648 1,251,510
2015–2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614,072 6,266,041
(b) Defined contribution plans
The Company and certain subsidiaries have a number of defined contribution plans. The amount of cost recognized for the
Company’s and certain subsidiaries’ contributions to the plans for the years ended March 31, 2009, 2008 and 2007 were
¥18,059 million ($184,276 thousand), ¥15,749 million and ¥11,971 million, respectively.
12. COMMON STOCK
The Company has authorized issuance of 10 billion shares of common stock.
The number of issued shares and the amount of common stock for the years ended March 31, 2009, 2008, 2007 and 2006
are as follows:
Millions of yen
Thousands of
U.S. dollars
Issued shares Amount Amount
Balance as of March 31, 2009, 2008, 2007 and 2006 . . . . . . . . . . . 3,368,126,056 ¥282,033 $2,877,888
Conversions of convertible debt issued subsequent to October 1, 1982 into common stock were accounted for in accordance
with the provisions of the Japanese Commercial Code, the former Japanese Company Law, by crediting one-half of the
conversion price to each of the common stock accounts and the capital surplus accounts.
69
Hitachi, Ltd.
Annual Report 2009