Sears 2009 Annual Report Download - page 79

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
Sears Canada plan assets were invested in the following classes of securities (none of which were securities
of the Company):
Plan Assets as of
January 30,
2010
January 31,
2009
Equity securities ......................................................... 20% 16%
Fixed income and other debt securities ........................................ 48 50
Alternative investments securities ........................................... 32 34
Total .................................................................. 100% 100%
The Sears Canada plans’ target allocation is determined by taking into consideration the amounts and timing
of projected liabilities, our funding policies and expected returns on various asset classes. At January 30, 2010,
the plan’s target asset allocation was 50% fixed income, 30% alternative investments and 20% equity. To
develop the expected long-term rate of return on assets assumption, we considered the historical returns and the
future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio.
Future Cash Flows of Benefit Plans
Information regarding expected future cash flows for our benefit plans is as follows:
millions
SHC
Domestic
Sears
Canada Total
Pension benefits:
Employer contributions:
Fiscal 2010 (expected) ......................................... $ 278 $— $ 278
Expected benefit payments:
Fiscal 2010 ..................................................... $ 321 $ 89 $ 410
Fiscal 2011 ..................................................... 330 92 422
Fiscal 2012 ..................................................... 340 94 434
Fiscal 2013 ..................................................... 351 97 448
Fiscal 2014 ..................................................... 361 101 462
Fiscal 2015-2019 ................................................. 1,955 556 2,511
Postretirement benefits:
Employer contributions:
Fiscal 2010 (expected) ......................................... $ 37 $— $ 37
Expected benefit payments:
Fiscal 2010 ..................................................... $ 37 $ 18 $ 55
Fiscal 2011 ..................................................... 35 18 53
Fiscal 2012 ..................................................... 33 19 52
Fiscal 2013 ..................................................... 31 19 50
Fiscal 2014 ..................................................... 30 19 49
Fiscal 2015-2019 ................................................. 120 97 217
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