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RETIREMENT PLANS
 12 Months Ended
Mar. 31, 2012
RETIREMENT PLANS [Abstract]  
RETIREMENT PLANS
8.
RETIREMENT PLANS

CSC sponsors a qualified defined benefit pension plan which covers its employees and employees of certain of its controlled affiliates.  The following information about the plan represents amounts and information related to CSC's participation in the plan and is presented as though CSC sponsored a single-employer plan.  Benefits are based on years of service and an average of the highest five consecutive years of compensation during the last 10 years of employment.  The funding policy of the plan is to contribute annual amounts that are currently deductible for tax reporting purposes.  No contribution was made to the plan during the three years ended March 31, 2012.

Additionally, CSC sponsors an unfunded Retirement Restoration Plan, which is a nonqualified plan that provides for the payment, upon retirement, of the difference between the maximum annual payment permissible under the qualified retirement plan pursuant to Federal limitations and the amount which would otherwise have been payable under the qualified plan.

The following tables set forth the qualified plan's net pension benefit, benefit obligation, fair value of plan assets, and amounts recognized in our consolidated statements of operations at March 31, 2012, 2011 and 2010, as well as amounts recognized in our consolidated statements of assets and liabilities at March 31, 2012 and 2011:
   
Years Ended March 31
 
   
2012
  
2011
  
2010
 
Net pension benefit
         
Service cost-benefits earned during the year
 $133,729  $161,047  $116,746 
Interest cost on projected benefit obligation
  256,558   231,332   191,936 
Expected return on assets
  (781,299)  (771,025)  (735,366)
Net amortization
  9,377   9,377   9,006 
Net pension benefit from qualified plan
 $(381,635) $(369,269) $(417,678)
 
   
Years Ended March 31
 
   
2012
  
2011
  
2010
 
Change in benefit obligation
         
Benefit obligation at beginning of year
 $4,213,349  $3,450,443  $2,914,813 
Service cost
  133,729   161,047   116,746 
Interest cost
  256,558   231,332   191,936 
Actuarial gain (loss)
  601,402   437,959   295,379 
Benefits paid
  (68,483)  (67,432)  (68,131)
Benefit obligation at end of year
 $5,136,555  $4,213,349  $3,450,743 

   
Years Ended March 31
 
   
2012
  
2011
  
2010
 
Change in plan assets
         
Fair value of plan assets at beginning of year
 $11,610,994  $10,519,400  $8,383,373 
Actual return on plan assets
  943,365   1,159,026   2,204,158 
Benefits paid
  (68,483)  (67,432)  (68,131)
Fair value of plan assets at end of year
 $12,485,876  $11,610,994  $10,519,400 

   
Years Ended March 31
 
   
2012
  
2011
 
Funded status and amounts recognized in consolidated statements of assets and liabilities
      
Actuarial present value of benefit obligations: Accumulated benefit obligation
 $(4,755,675) $(3,859,769)
Projected benefit obligation for service rendered to date
 $(5,136,555) $(4,213,349)
Plan assets at fair value*
  12,485,876   11,610,994 
Funded status
  7,349,321   7,397,645 
Unrecognized net  loss from past experience different from that assumed and effects of changes in assumptions
  1,818,042   1,378,706 
Unrecognized prior service costs
  131,956   141,333 
ASC 715 adjustment
  (1,949,998)  (1,520,039)
Prepaid pension cost included in pension assets
  7,349,321  $7,397,645 
 
*
Primarily equities and bonds including approximately 25,000 shares of CSC Common Stock.

The following tables set forth the retirement restoration plan's net pension benefit and benefit obligation amounts at March 31, 2012, 2011 and 2010, as well as amounts recognized in our consolidated statements of assets and liabilities at March 31, 2012, 2011:
 
   
Years Ended March 31
 
   
2012
  
2011
  
2010
 
Net pension cost
         
Service cost-benefits earned during the year
 $18,163  $33,216  $26,847 
Interest cost on projected benefit obligation
  79,056   69,248   60,334 
Net amortization
  (15,428)  (24,507)  (38,605)
Net pension cost from qualified plan
 $81,791  $77,957  $48,576 


   
Years Ended March 31
 
   
2012
  
2011
  
2010
 
Change in benefit obligation
         
Benefit obligation at beginning of year
 $1,256,895  $1,082,941  $934,428 
Service cost
  18,163   33,216   26,847 
Interest cost
  79,056   69,248   60,334 
Actuarial gain (loss)
  214,278   132,940   61,332 
Other adjustments
  -   (61,450)  - 
Benefit obligation at end of year
 $1,568,392  $1,256,895  $1,082,941 

   
Years Ended March 31
 
   
2012
  
2011
 
Amounts recognized in our consolidated statements of assets and liabilities
      
Projected benefit obligation
 $(1,568,392) $(1,256,895)
Unrecognized net (gain) loss from past experience different from that assumed and effects of changes in assumptions
  8,556   (205,722)
Unrecognized prior service costs
  (130,798)  (146,226)
ASC 715 adjustment
  122,242   351,948 
Accrued pension cost included in pension liabilities
 $(1,568,392) $(1,256,895)

The following assumptions were used in estimating the actuarial present value of the projected benefit obligations:

   
Years Ended March 31
 
   
2012
  
2011
  
2010
 
Discount rate                                                        
  5.25%  6.00%  6.00%
Rate of compensation increases
  5.00%  5.00%  5.00%

The following assumptions were used in estimating the net periodic (income)/expense:

   
Years Ended March 31
 
   
2012
  
2011
  
2010
 
Discount rate                                                        
  5.25%  6.00%  6.50%
Expected return on plan assets                                                        
  6.50%  6.50%  6.50%
Rate of compensation increases
  5.00%  5.00%  5.00%

Following are the expected benefit payments for the next five years and in the aggregate for the years 2018-2022:

(In thousands)
 
2013
  
2014
  
2015
  
2016
  
2017
   2018-2022 
Qualified Plan                               
 $208  $274  $265  $262  $312  $1,704 
Restoration Plan                               
 $104  $103  $101  $100  $98  $573 

The expected rate of return on assets assumption was determined based on the anticipated performance of the various asset classes in the plan's portfolio and the allocation of assets to each class.  The anticipated asset class return is developed using historical and predicted asset return performance, considering the investments underlying each asset class and expected investment performance based on forecasts of inflation, interest rates and market indices for fixed income and equity securities.

Plan Assets

Our pension plan is administered by a board-appointed committee that has fiduciary responsibility for the plan's management.  The trustee of the plan is JPMorgan Asset Management.  Currently, approximately 18% of the assets are selected and managed by the trustee and the remainder of the assets is managed by the committee, invested mostly in equity securities, including our stock.  The plan assets are invested using a total return approach whereby a mix of equity securities, debt securities and other investments are used to preserve asset values, diversify risk and achieve our targeted investment return benchmark.  Investment performance and asset allocation are measured and monitored on an ongoing basis.

Plan assets are managed in a balanced portfolio comprised of two major components: an equity portion and a fixed income portion.  The expected role of plan equity investments is to maximize the long-term real growth of the plan's assets, while the role of fixed income investments is to generate current income, provide for more stable periodic returns and provide some protection against prolonged decline in the market value of the plan's equity investments.

The current target allocations for plan assets are 60-80% equity, 15-40% for fixed income, and 0-15% for cash and cash equivalents.  Equity investments include U.S. and foreign equities, as well as publicly traded and non-publicly traded mutual funds.  Fixed income securities include long-duration government obligations, government agency obligations and corporate obligations.
Our pension plan asset allocations are as follows:

   
Percentage of Plan Assets at
March 31
 
Asset Category
 
2012
  
2011
 
Equity securities
  77.7%  77.2%
Fixed income securities
  16.6%  16.8%
Cash and cash equivalents
  5.7%  6.0%
    100.0%  100.0%

Below is our pension plan asset for Capital Southwest Corporation and its affiliates, of which Capital Southwest assets were $12,485,876 and $11,610,994 as of March 31, 2012 and 2011 respectively. The following fair value hierarchy table sets forth our pension plan investment portfolio by level as of March 31, 2012 (in millions):

      
Fair Value Measurements at Reporting Date Using
 
Asset Category
 
Total
  
Quoted Prices
in Active
Markets for
Identical
Assets Level I
  
Significant
Other
Observable
Inputs Level 2
  
Significant
Observable
Inputs Level 3
 
Equity securities (a)                                    
 $32.9  $21.4  $11.5  $- 
Fixed income securities (b)
  7.0   -   7.0   - 
Cash and cash equivalents
  2.4   2.4   -   - 
Total                                    
 $42.3  $23.8  $18.5  $- 

The following fair value hierarchy table sets forth our pension plan investment portfolio by level as of March 31, 2011 (in millions):

      
Fair Value Measurements at Reporting Date Using
 
Asset Category
 
Total
  
Quoted Prices
in Active
Markets for
Identical
Assets Level I
  
Significant
Other
Observable
Inputs Level 2
  
Significant
Observable
Inputs Level 3
 
Equity securities (a)                                    
 $30.8  $25.0  $5.8  $- 
Fixed income securities (b)
  6.7   -   6.7   - 
Cash and cash equivalents
  2.4   2.4   -   - 
Total                                    
 $39.9  $27.4  $12.5  $- 

There were no plan assets valued using significant unobservable inputs (level 3) as of March 31, 2012 or 2011.

(a)  
This category includes investment in equity securities of large, medium and small companies and equity investments in foreign companies.  Mutual funds included in this category are valued using the net asset value per unit as of the valuation date.  These investments include shares of our common stock.  At March 31, 2012 and 2011, our common stock represented 19.7% and 20.2%, respectively, of the plan assets.

(b)  
 This category includes investments in investment grade fixed income instruments, primarily U.S. government obligations.