Foot Locker 2011 Annual Report Download - page 84

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FOOT LOCKER, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
20. Retirement Plans and Other Benefits − (continued)
The fair values of the Company’s Canadian pension plan assets at January 28, 2012 and January 29, 2011
are as follows:
Level 1 Level 2 Level 3
2011
Total
2010
Total*
(in millions)
Cash and cash
equivalents $ — $ 5 $ — $ 5 $ 1
Equity securities:
Canadian and
International
(1)
—5—5 6
Debt securities:
Cash matched
bonds
(2)
— 83 — 83 83
Total assets at fair
value $ — $ 93 $ — $ 93 $ 90
* Each category of plan assets is classified within the same level of the fair value hierarchy for 2011 and 2010.
(1) In 2011, this category comprises one mutual fund that invests primarily in a diverse portfolio of Canadian securities. In 2010,
this category comprised two mutual funds that invested primarily in a diverse portfolio of Canadian and international
equity securities.
(2) This category consists of fixed-income securities, including strips and coupons, issued or guaranteed by the Government of
Canada, provinces or municipalities of Canada including their agencies and crown corporations, as well as other governmental
bonds and corporate bonds.
No Level 3 assets were held by the Canadian pension plan during 2011.
During 2011 the Company made contributions of $25 million and $3 million to its U.S. and Canadian plans,
respectively. The Company continuously evaluates the amount and timing of any future contributions.
Additional contributions will depend on the plan asset performance and other factors.
Estimated future benefit payments for each of the next five years and the five years thereafter are
as follows:
Pension
Benefits
Postretirement
Benefits
(in millions)
2012 $ 75 $ 1
2013 59 1
2014 58 1
2015 56 1
2016 54 1
2017 − 2021 249 5
In February 2007, the Company and its U.S. pension plan, the Foot Locker Retirement Plan, were named as
defendants in a class action in federal court in New York. The Complaint alleged that the Company’s
pension plan violated the Employee Retirement Income Security Act of 1974, including, without limitation,
its age discrimination and notice provisions, as a result of the Company’s conversion of its defined benefit
plan to a defined benefit pension plan with a cash balance feature in 1996. The Company is defending the
action vigorously. The Company is currently unable to make an estimate of loss or range of loss.
Management does not believe that the outcome of any such proceedings would have a material adverse
effect on the Company’s consolidated financial position, liquidity, or results of operations, taken as a whole.
64