Famous Footwear 2012 Annual Report Download - page 62

60 2012 BROWN SHOE COMPANY, INC. FORM 10-K
• Investments in corporate stocks – common, U.S. government securities, mutual fund, money market funds, real estate
investment trusts and S&P 500 Index put and call options (traded on security exchanges) are classified within Level 1
of the fair value hierarchy because the fair values are based on unadjusted quoted market prices in active markets with
sucient volume and frequency.
• Corporate debt instruments and interest rate swap agreements are valued at fair value based on vendor-quoted pricing for
which inputs are observable and can be corroborated; therefore, these are classified within Level 2 of the fair value hierarchy.
• The limited partnership investment represents the pension plan’s undivided interest in a limited partnership. The
limited partnership invests primarily in a diversified portfolio of equity securities of U.S. and non-U.S. issuers whose fair
values are based on unadjusted quoted market prices in active markets with sucient volume and frequency. Limited
partnership assets are allocated to the pension plan by assigning the pension plan transactions that can be specifically
identified and allocating non-specific transactions in proportion to the pension plan’s beneficial interest in the limited
partnership. This contract is classified within Level 2 of the fair value hierarchy. There are currently no redemption
restrictions on the limited partnership investment.
• The group trust investment is a unitized fund classied within Level 2 of the fair value hierarchy because the fair
value is estimated using the NAV per unit based on vendor-quoted pricing for which inputs are observable. There are
currently no redemption restrictions on the group trust investment.
• The unallocated insurance contract is valued at contract value, which approximates fair value; therefore, this contract is
classified within Level 3 of the fair value hierarchy. The unallocated insurance contract fair value was $0.1 million as of
both February 2, 2013 and January 28, 2012.
The fair values of the Company’s pension plan assets at February 2, 2013 by asset category are as follows:
Fair Value Measurements at February 2, 2013
($ thousands) Total Level 1 Level 2 Level 3
Asset
Money market funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,729 $ 4,729 $ – $ –
U.S. government securities . . . . . . . . . . . . . . . . . . . . . . . . . . 59,342 59,342 – –
Mutual fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,168 75,168 – –
Limited partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,982 – 35,982 –
Real estate investment trusts. . . . . . . . . . . . . . . . . . . . . . . . . 3,239 3,239 – –
Corporate debt instruments . . . . . . . . . . . . . . . . . . . . . . . . . 28,357 – 28,357 –
Corporate stocks – common . . . . . . . . . . . . . . . . . . . . . . . . . 136,275 136,275 – –
S&P 500 Index options . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,495) (2,495) – –
Interest rate swap agreements . . . . . . . . . . . . . . . . . . . . . . . . (4,258) – (4,258) –
Unallocated insurance contract. . . . . . . . . . . . . . . . . . . . . . . . 106 – – 106
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 336,445 $ 276,258 $ 60,081 $ 106
The fair values of the Company’s pension plan assets at January 28, 2012 by asset category are as follows:
Fair Value Measurements at January 28, 2012
($ thousands) Total Level 1 Level 2 Level 3
Asset
Money market funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,723 $ 4,723 $ – $ –
U.S. government securities . . . . . . . . . . . . . . . . . . . . . . . . . . 68,667 68,667 – –
Mutual fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,078 11,078 – –
Limited partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,461 – 31,461 –
Group trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,306 – 7,306 –
Real estate investment trusts. . . . . . . . . . . . . . . . . . . . . . . . . 2,047 2,047 – –
Corporate debt instruments . . . . . . . . . . . . . . . . . . . . . . . . . 68,240 – 68,240 –
Corporate stocks – common . . . . . . . . . . . . . . . . . . . . . . . . . 112,795 112,795 – –
S&P 500 Index options . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,472 1,472 – –
Interest rate swap agreements . . . . . . . . . . . . . . . . . . . . . . . . 13,406 – 13,406 –
Unallocated insurance contract. . . . . . . . . . . . . . . . . . . . . . . . 104 – – 104
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 321,299 $ 200,782 $ 120,413 $ 104
The following table sets forth changes in the fair value of plan assets, including all domestic and Canadian plans:
Pension Benefits Other Postretirement Benefits
($ thousands) 2012 2011 2012 2011
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . $ 321,299 $265,848 $ – $ –
Actual return on plan assets. . . . . . . . . . . . . . . . . . . . . . . . . . 26,167 66,527 – –
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413 7,523 190 236
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . 12 11 13 17
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,464) (18,590) (203) (253)
Foreign exchange rate changes . . . . . . . . . . . . . . . . . . . . . . . . 18 (20) – –
Fair value of plan assets at end of year. . . . . . . . . . . . . . . . . . . . $ 336,445 $ 321,299 $ – $ –
The majority of employer contributions for 2011 related to payments due under our SERP. Employer contributions and
benefits paid in the above table include both those amounts contributed directly to and paid directly from plan assets and
those amounts paid directly to plan participants.