Saks Fifth Avenue 2011 Annual Report Download - page 73

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SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share amounts)
Fair Value Measurements
The following table sets forth the fair value of the Pension Plan’s financial assets by level within the fair value
hierarchy as of January 28, 2012 and January 29, 2011:
January 28, 2012 January 29, 2011
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Common/collective trust
funds:
Equity securities ..... $ — $ 44,535 $ — $ 44,535 $ — $ 71,065 $ — $ 71,065
Fixed income
securities ......... — 75,635 — 75,635 — 51,860 — 51,860
Real estate
securities ......... — — 6,306 6,306 — — 5,620 5,620
Total ............ $ — $ 120,170 $ 6,306 $ 126,476 $ — $ 122,925 $ 5,620 $ 128,545
The following table summarizes changes in the fair value of Level 3 assets for the year ended January 28, 2012
and January 29, 2011:
Real Estate Securities
January 28,
2012
January 29,
2011
Fair value at beginning of year ........................................... $ 5,620 $ 4,878
Actual return on plan assets:
Relating to assets still held at year-end ................................. 686 742
Relating to assets sold during the year ................................. — —
Purchases, sales and settlements ....................................... — —
Fair value at end of year ................................................ $ 6,306 $ 5,620
There have been no changes in the valuation techniques used to measure the fair value of the Pension Plan’s
assets as of January 28, 2012 and January 29, 2011. Investments in common/collective trust funds are valued at
the net asset value per unit as determined by the trustee of the common/collective trust funds on each
valuation date, without further adjustment as a practical expedient. The net asset value per unit is determined
by the trustee of the common/collective trust funds based on the fair values of the underlying assets.
Underlying assets that are traded on national securities exchanges are valued based on the last reported sale or
settlement price for each such security on the valuation date. Underlying assets that are not traded in public
markets or for which quoted prices are not readily available are valued based on broker/dealer quotes or
valuation estimates from internal pricing models, which utilize inputs that are primarily observable. Underlying
assets consisting of real estate are valued based on periodic independent appraisals.
The common/collective trust funds have various procedures regarding liquidity, which may include advance
notification requirements and specific periodic dates for providing such liquidity. The real estate common/
collective trust fund has certain restrictions whereby the trustee may reserve the right to limit the portion of an
investment that may be redeemed at any one time, either by an individual investor or in the aggregate by all
such investors of the fund. Additionally, this fund only permits transactions on a quarterly basis and requires
advance notification of 110 calendar days. The majority of the common/collective trust funds in which the
Pension Plan invests do not have restrictions on redemption frequency, nor do they have advance notification
requirements.
F-28