Kroger 2012 Annual Report Download - page 122

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A-64
NO T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S , CO N T I N U E D
In February 2013, the Company contributed $100 to the Company-sponsored defined benefit pension
plans and does not expect to make additional contributions in 2013. The Company expects contributions
made during 2013 will decrease its required contributions in future years. Among other things, investment
performance of plan assets, the interest rates required to be used to calculate the pension obligations, and
future changes in legislation, will determine the amounts of any additional contributions. The Company
expects 2013 expense for Company-sponsored defined benefit pension plans to be approximately $80. In
addition, the Company expects 401(k) Retirement Savings Account Plan cash contributions and expense from
automatic and matching contributions to participants to increase slightly in 2013, compared to 2012.
Assumed health care cost trend rates have a significant effect on the amounts reported for the health
care plans. The Company used a 7.20% initial health care cost trend rate and a 4.50% ultimate health care cost
trend rate to determine its expense. A one-percentage-point change in the assumed health care cost trend
rates would have the following effects:
1% Point
Increase
1% Point
Decrease
Effect on total of service and interest cost components ......................... $ 5 $ (4)
Effect on postretirement benefit obligation ................................... $ 46 $ (44)
The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of
February 2, 2013 and January 28, 2012:
AS S E T S A T F A I R VA L U E A S O F F E B R U A R Y 2 , 2 0 1 3
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Total
Cash and cash equivalents ................. $ 17 $ — $ — $ 17
Corporate Stocks ......................... 375 — — 375
Corporate Bonds ......................... — 72 — 72
U.S. Government Securities ................ — 66 — 66
Mutual Funds/Collective Trusts ............. 130 559 — 689
Partnerships/Joint Ventures ................ — 378 — 378
Hedge Funds ............................ — — 739 739
Private Equity ........................... — — 180 180
Real Estate .............................. — — 91 91
Other .................................. — 139 — 139
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $522 $1,214 $1,010 $ 2,746