EMC 2011 Annual Report Download - page 79

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Table of Contents
EMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The weighted-average assumptions used in the Pension Plan to determine periodic benefit cost for the years ended December 31 are as follows:
December 31,
2011
December 31,
2010
December 31,
2009
Discount rate 5.4% 6.0% 6.6%
Expected long-term rate of return on plan assets 6.75% 6.75% 8.25%
Rate of compensation increase N/A N/A N/A
The benefit payments are expected to be paid in the following years (table in thousands):
2012 $ 20,260
2013 21,247
2014 22,343
2015 23,642
2016 25,168
2017-2021 148,392
Fair Value of Plan Assets
Following is a description of the valuation methodologies used for assets measured at fair value at December 31, 2011:
Common Collective Trusts – valued at the net asset value calculated by the fund manager based on the underlying investments. These are all classified
within Level 2 of the valuation hierarchy. These include: Collective Trust High Yield Fund, EB Daily Valued Large Cap Growth Stock Index Fund, EB Daily
Valued Large Cap Value Stock Index Fund, EB Daily Valued Small Cap Stock Index Fund, EB Daily Valued Stock Index Fund, EB Daily Valued
International Stock Index Fund, EB Daily Valued Emerging Markets Index Fund, EB Long Term Credit Bond Index and EB Long Term Government Bond
Index Fund.
Corporate Debt Securities – valued daily at the closing price reported in active U.S. financial markets and are classified within Level 2 of the valuation
hierarchy.
The following table sets forth, by level within the fair value hierarchy, the Pension Plan's assets at fair value as of December 31, 2011 and 2010 (tables
in thousands):
December 31, 2011
Level 1 Level 2 Level 3 Total
Common collective trusts $ — $ 284,250 $ — $ 284,250
Mutual funds — 2,666 — 2,666
U.S. treasury securities 2,979 — — 2,979
Corporate debt securities — 105,082 — 105,082
Total $ 2,979 $ 391,998 $ — $ 394,977
Plan payables, net of accrued interest and dividends 882
Total $ 395,859
December 31, 2010
Level 1 Level 2 Level 3 Total
Common collective trusts $ — $ 278,447 $ — $ 278,447
Mutual funds — 3,656 — 3,656
U.S. agency securities — 20,700 — 20,700
U.S. treasury securities 11,799 — — 11,799
Corporate debt securities — 57,067 — 57,067
Municipal obligations — 980 — 980
Asset-backed securities — 2,602 — 2,602
Mortgaged-backed securities — 3,837 — 3,837
Total $ 11,799 $ 367,289 $ — $ 379,088
Plan payables, net of accrued interest and dividends 529
Total $ 379,617
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