Target 2012 Annual Report Download - page 77

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Plan Assets
Our asset allocation policy is designed to reduce the long-term cost of funding our pension obligations. The plan
invests with both passive and active investment managers depending on the investment’s asset class. The plan
also seeks to reduce the risk associated with adverse movements in interest rates by employing an interest rate
hedging program, which may include the use of interest rate swaps, total return swaps and other instruments.
Actual AllocationAsset Category Current Targeted
Allocation 2012 2011
Domestic equity securities (a) 19% 20% 19%
International equity securities 12 11 11
Debt securities 25 27 29
Balanced funds 30 29 25
Other (b) 14 13 16
Total 100% 100% 100%
(a) Equity securities include our common stock in amounts substantially less than 1 percent of total plan assets as of February 2, 2013 and
January 28, 2012.
(b) Other assets include private equity, mezzanine and high-yield debt, natural resources and timberland funds, multi-strategy hedge funds,
derivative instruments and a 4 percent allocation to real estate.
Fair Value at February 2, 2013 Fair Value at January 28, 2012Fair Value Measurements
(millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Cash and cash equivalents $ 174 $ 5 $ 169 $ — $ 263 $11 $ 252 $ —
Common collective trusts (a) 878 — 878 — 653 — 653 —
Government securities (b) 296 — 296 — 356 — 356 —
Fixed income (c) 560 — 560 — 466 — 466 —
Balanced funds (d) 925 — 925 — 744 — 744 —
Private equity funds (e) 236 — — 236 283 — — 283
Other (f) 154 — 32 122 156 — 41 115
Total plan assets $3,223 $ 5 $2,860 $358 $2,921 $11 $2,512 $398
(a) Passively managed index funds with holdings in domestic and international equities.
(b) Investments in government securities and passively managed index funds with holdings in long-term government bonds.
(c) Investments in corporate bonds, mortgage-backed securities and passively managed index funds with holdings in long-term corporate
bonds.
(d) Investments in equities, nominal and inflation-linked fixed income securities, commodities and public real estate.
(e) Includes investments in venture capital, mezzanine and high-yield debt, natural resources and timberland funds.
(f) Investments in multi-strategy hedge funds (including domestic and international equity securities, convertible bonds and other alternative
investments), real estate and derivative investments.
Actual Return on Plan Assets (a)Level 3 Reconciliation
Relating to Relating to
Balance at Assets Still Held Assets Sold Purchases, Transfer in
Beginning of at the Reporting During the Sales and and/or out of Balance at
(millions) Period Date Period Settlements Level 3 End of Period
2011
Private equity funds $327 $ (6) $26 $(64) $— $283
Other 127 9 — (21) — 115
2012
Private equity funds $283 $17 $25 $(89) $— $236
Other 115 4 — 3 — 122
(a) Represents realized and unrealized gains (losses) from changes in values of those financial instruments only for the period in which the
instruments were classified as Level 3.
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PART II