Toshiba 2012 Annual Report Download - page 113

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TOSHIBA Annual Report 2012
For the year ended March 31, 2012, the Company contributed certain marketable equity securities to employee retirement
benefit trusts, with no cash proceeds thereon. The fair value of these securities at the time of contribution was ¥14,800
million ($180,488 thousand). The Group expects to contribute ¥65,125 million ($794,207 thousand) to its defined benefit
plans, included Cash Balance Plan, in the year ending March 31, 2013.
The following benefit payments are expected to be paid:
Year ending March 31 Millions of yen
Thousands of
U.S. dollars
2013 ¥ 90,236 $ 1,100,439
2014 86,682 1,057,098
2015 91,691 1,118,183
2016 96,346 1,174,951
2017 94,535 1,152,866
2018 - 2022 508,733 6,204,061
Weighted-average assumptions used to determine benefit obligations as of March 31, 2012 and 2011 and net periodic
pension and severance cost for the years then ended are as follows:
March 31 2012 2011
Discount rate 2.2% 2.6%
Rate of compensation increase 3.3% 3.2%
Year ended March 31 2012 2011
Discount rate 2.6% 2.7%
Expected long-term rate of return on plan assets 2.9% 3.6%
Rate of compensation increase 3.2% 3.1%
The Group determines the expected long-term rate of return in consideration of the target allocation of the plan assets,
the current expectation of long-term returns on the assets and actual returns on plan assets.
The Group's investment policies and strategies are to assure adequate plan assets to provide for future payments of
pension and severance benefits to participants, with reasonable risks. The Group designs the basic target allocation of
the plan assets to mirror the best portfolio based on estimation of mid-term and long-term return on the investments.
The Group periodically reviews the actual return on the investments and adjusts the portfolio to achieve the assumed
long-term rate of return on the investments. The Group targets its investments in equity securities at 25 percent or more
of total investments, and investments in equity securities, debt securities and life insurance company general accounts at
70 percent or more of total investments.
The equity securities are selected primarily from stocks that are listed on the securities exchanges. Prior to investing,
the Group has investigated the business condition of the investee companies, and appropriately diversified investments
by type of industry and other relevant factors. The debt securities are selected primarily from government bonds,
municipal bonds and corporate bonds. Prior to investing, the Group has investigated the quality of the issue, including
rating, interest rate, and repayment dates and has appropriately diversified the investments. Pooled funds are selected
using strategies consistent with the equity securities and debt securities described above. Hedge funds are selected
following a variety of strategies and fund managers, and the Group has appropriately diversified the investments. Real
estate is selected for the eligibility of investment and expected return and other relevant factors, and the Group has
appropriately diversified the investments. As for investments in life insurance company general accounts, the contracts
with the insurance companies include a guaranteed interest and return of capital.