Target 2009 Annual Report Download - page 74

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Position Valuation Technique
Cash and cash equivalents Initially valued at transaction price. Carrying value of cash equivalents
(including money market funds) approximates fair value because maturities
are generally less than three months.
Equity securities Valued at the closing price reported on the major market on which the
individual securities are traded.
Common collective funds/ Valued using the net asset value (‘‘NAV’’) provided by the administrator of
balanced funds/certain the fund. The NAV is a quoted transactional price for participants in the fund,
multi-strategy hedge which do not represent an active market.
funds
Fixed income securities Valued using matrix pricing models and quoted prices of securities with
similar characteristics.
Private equity/real estate/ Valued by deriving Target’s proportionate share of equity investment from
certain multi-strategy audited financial statements. Private equity and real estate investments
hedge funds require significant judgment on the part of the fund manager due to the
absence of quoted market prices, inherent lack of liquidity, and the
long-term nature of such investments. Certain multi-strategy hedge funds
represent funds of funds that include liquidity restrictions and for which
timely valuation information is not available.
Contributions
In 2009, we made discretionary contributions of $252 million to our qualified defined benefit pension
plans. We are not required to make any contributions in 2010, although we may choose to make discretionary
contributions of up to $100 million. We expect to make contributions in the range of $10 million to $15 million
to our postretirement health care benefit plan in 2010.
Estimated Future Benefit Payments
Benefit payments by the plans, which reflect expected future service as appropriate, are expected to be
paid as follows:
Postretirement
Estimated Future Benefit Payments
Pension Health Care
(millions) Benefits Benefits
2010 $122 $10
2011 131 9
2012 138 7
2013 145 8
2014 155 8
2015-2019 895 60
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PART II