Macy's 2008 Annual Report Download - page 83

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
return assumption by evaluating input from several professional advisors taking into account the asset allocation
of the portfolio and long-term asset class return expectations, as well as long-term inflation assumptions.
The following provides the weighted average asset allocations, by asset category, of the assets of the
Company’s Pension Plan as of January 31, 2009 and February 2, 2008 and the policy targets:
Targets 2008 2007
Equity securities ........................................................... 60% 49% 58%
Debt securities ............................................................ 25 27 26
Real estate ............................................................... 10 15 11
Other .................................................................... 5 9 5
100% 100% 100%
The assets of the Pension Plan are managed by investment specialists with the primary objectives of
payment of benefit obligations to the Plan participants and an ultimate realization of investment returns over
longer periods in excess of inflation. The Company employs a total return investment approach whereby a mix of
domestic and foreign equity securities, fixed income securities and other investments is used to maximize the
long-term return of the assets of the Pension Plan for a prudent level of risk. Risks are mitigated through the asset
diversification and the use of multiple investment managers.
No funding contributions were required, and the Company made no funding contributions to the Pension
Plan in 2008 or 2007. As of the date of this report, the Company is anticipating making required funding
contributions to the Pension Plan totaling approximately $295 million to $370 million prior to January 30, 2010.
This includes the initiation of quarterly contributions of approximately $30 million and a 2008 Plan year
contribution in September 2009 of approximately $175 million to $250 million.
The following benefit payments are estimated to be paid from the Pension Plan:
(millions)
Fiscal year:
2009 ......................................................... $ 254
2010 ......................................................... 241
2011 ......................................................... 236
2012 ......................................................... 238
2013 ......................................................... 241
2014-2018 ..................................................... 1,118
F-35