EMC 2010 Annual Report Download - page 78
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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Investment Strategy
Our Pension Plan's assets are managed by outside investment managers. Our investment strategy with respect to pension assets is to maximize returns
while preserving principal.
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 target asset allocations are as follows:
December 31,
2010
U.S. Large Capitalization Equities 40%
U.S. Small Capitalization Equities 9
International Equities 11
U.S. Core Fixed Income 34
High Yield Fixed Income 6
Total 100%
The actual allocation of the assets in the Pension Plan at December 31, 2010 and 2009 were as follows:
December 31,
2010
December 31,
2009
U.S. Large Capitalization Equities 39% 48%
U.S. Small Capitalization Equities 9 10
International Equities 11 13
U.S. Core Fixed Income 35 22
High Yield Fixed Income 6 7
Total 100% 100%
M. Commitments and Contingencies
Operating Lease Commitments
We lease office and warehouse facilities and equipment under various operating leases. Facility leases generally include renewal options. Rent expense
was as follows (table in thousands):
2010 2009 2008
Rent expense $ 276,030 $ 300,609 $ 299,481
Sublease proceeds (7,090) (6,114) (10,740)
Net rent expense $ 268,940 $ 294,495 $ 288,741
Our future operating lease commitments as of December 31, 2010 are as follows (table in thousands):
2011 $ 267,089
2012 223,914
2013 178,264
2014 142,507
2015 104,155
Thereafter 375,975
Total minimum lease payments $ 1,291,904
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