Sears 2011 Annual Report Download - page 82

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
Fair Value of Pension and Postretirement Benefit Plan Assets
Level 1 cash equivalents and other short-term investments, common and preferred stock, pooled equity
funds and fixed income securities are valued using a market approach based on quoted market prices of identical
instruments. Level 2 cash equivalents and short-term investments are valued daily by the fund using a market
approach with inputs that include quoted market prices for similar instruments. Level 2 fixed income securities
are valued at the net asset value provided by the fund administrator and have daily or monthly liquidity. The
following table presents our plan assets using the fair value hierarchy at January 28, 2012 and January 29, 2011:
SHC Domestic
Investment Assets at Fair Value at
January 28, 2012
millions Total Level 1 Level 2 Level 3
Cash equivalents and short-term investments ......................... $ 216 $ — $ 216 $—
Equity securities
U.S. companies ............................................... 1,102 1,102 — —
International companies ........................................ 120 120 — —
Registered investment companies ................................ 1 1 — —
Fixed income securities
Corporate bonds and notes ...................................... 2,186 — 2,184 2
Sears Holdings Corporation senior secured notes .................... 203 — 203 —
U.S. government and agencies ................................... 39 — 39 —
Mortgage backed and asset backed ............................... 9 — 9 —
Municipal and foreign government ............................... 20 — 20 —
Ventures and partnerships ........................................ 15 — — 15
Total investment assets at fair value ................................ $3,911 $1,223 $2,671 $ 17
Cash ......................................................... 111
Accounts receivable ............................................. 54
Accounts payable ............................................... (25)
Net assets available for plan benefits ................................ $4,051
SHC Domestic
Investment Assets at Fair Value at
January 29, 2011
millions Total Level 1 Level 2 Level 3
Cash equivalents and short-term investments ......................... $ 248 $ — $ 248 $—
Equity securities
U.S. companies ............................................... 1,231 1,231 — —
International companies ........................................ 185 185 — —
Registered investment companies ................................ 1 1 — —
Fixed income securities
Corporate bonds and notes ...................................... 1,952 — 1,952 —
Sears Holdings Corporation senior secured notes .................... 240 — 240 —
U.S. government and agencies ................................... 15 — 15 —
Mortgage backed and asset backed ............................... 32 — 31 1
Municipal and foreign government ............................... 58 — 58 —
Ventures and partnerships ........................................ 21 — 1 20
Total investment assets at fair value ................................ $3,983 $1,417 $2,545 $ 21
Cash ......................................................... 60
Accounts receivable ............................................. 47
Accounts payable ............................................... (36)
Net assets available for plan benefits ................................ $4,054
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