Target 2012 Annual Report Download - page 73

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we invested $19 million and $61 million, respectively, in such investment instruments, and this activity is included in
the Consolidated Statements of Cash Flows within other investing activities. Adjusting our position in these
investment vehicles may involve repurchasing shares of Target common stock when settling the forward contracts
as described in Note 25. The settlement dates of these instruments are regularly renegotiated with the counterparty.
ContractualPrepaid Forward Contracts on Target Common Stock
Number of Price Paid Contractual Total Cash
(millions, except per share data) Shares per Share Fair Value Investment
January 28, 2012 1.4 $44.21 $69 $61
February 2, 2013 1.2 $45.46 $73 $54
Plan Expenses
(millions) 2012 2011 2010
401(k) plan
Matching contributions expense $218 $197 $190
Nonqualified deferred compensation plans
Benefits expense (a) 78 38 63
Related investment loss/(income) (b) (43) (10) (31)
Nonqualified plan net expense $35 $28 $32
(a) Includes market-performance credits on accumulated participant account balances and annual crediting for additional benefits earned
during the year.
(b) Includes investment returns and life-insurance proceeds received from company-owned life insurance policies and other investments
used to economically hedge the cost of these plans.
28. Pension and Postretirement Health Care Plans
We have qualified defined benefit pension plans covering team members who meet age and service requirements,
including in certain circumstances, date of hire. We also have unfunded nonqualified pension plans for team
members with qualified plan compensation restrictions. Eligibility for, and the level of, these benefits varies
depending on team members’ date of hire, length of service and/or team member compensation. Upon early
retirement and prior to Medicare eligibility, team members also become eligible for certain health care benefits if
they meet minimum age and service requirements and agree to contribute a portion of the cost. Effective January 1,
2009, our qualified defined benefit pension plan was closed to new participants, with limited exceptions.
Change in Projected Benefit Obligation Pension Benefits Postretirement
Qualified Plans Nonqualified Plans Health Care Benefits
(millions) 2012 2011 2012 2011 2012 2011
Benefit obligation at beginning of period $3,015 $2,525 $38 $31 $ 100 $94
Service cost 120 116 1110 10
Interest cost 137 135 2234
Actuarial (gain)/loss 107 349 —718 —
Participant contributions 11——56
Benefits paid (126) (111) (3) (3) (12) (14)
Plan amendments (90) —(1) —(3) —
Benefit obligation at end of period $3,164 $3,015 $37 $38 $ 121 $ 100
57
PART II