Toshiba 2011 Annual Report Download - page 107

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The Group expects to contribute ¥55,569 million ($669,506 thousand) to its defined benefit plans, included Cash Balance
Plan, in the year ending March 31, 2012.
The following benefit payments are expected to be paid:
Year ending March 31 Millions of yen
Thousands of
U.S. dollars
2012 ¥ 88,391 $ 1,064,952
2013 86,337 1,040,205
2014 83,099 1,001,193
2015 89,395 1,077,048
2016 92,334 1,112,458
2017 - 2021 484,314 5,835,108
Weighted-average assumptions used to determine benefit obligations as of March 31, 2011 and 2010 and net periodic
pension and severance cost for the years then ended are as follows:
March 31 2011 2010
Discount rate 2.6% 2.7%
Rate of compensation increase 3.2% 3.1%
Year ended March 31 2011 2010
Discount rate 2.7% 3.3%
Expected long-term rate of return on plan assets 3.6% 3.5%
Rate of compensation increase 3.1% 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 40 percent or more
of total investments, and investments in equity and debt securities at 75 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.