Target 2012 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2012 Target annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 94

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94

Position Valuation Technique
Cash and cash equivalents These investments are cash holdings and investment vehicles valued using the Net Asset
Value (NAV) provided by the administrator of the fund. The NAV for the investment vehicles
is based on the value of the underlying assets owned by the fund minus applicable costs
and liabilities, and then divided by the number of shares outstanding.
Equity securities Valued at the closing price reported on the major market on which the individual securities
are traded.
Common collective trusts/ Valued using the NAV provided by the administrator of the fund. The NAV is a quoted
balanced funds/ certain transactional price for participants in the fund, which do not represent an active market.
multi-strategy hedge funds
Fixed income and Valued using matrix pricing models and quoted prices of securities with similar
government securities characteristics.
Private equity/ real estate/ Valued by deriving Target’s proportionate share of equity investment from audited financial
certain multi-strategy statements. Private equity and real estate investments require significant judgment on the
hedge funds/ other 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
Our obligations to plan participants can be met over time through a combination of company contributions to these
plans and earnings on plan assets. In 2012 and 2011, we made discretionary contributions of $122 million and
$152 million, respectively, to our qualified defined benefit pension plans. We are not required to make any
contributions in 2013. However, depending on investment performance and plan funded status, we may elect to
make a contribution. We expect to make contributions in the range of $6 million to $7 million to our postretirement
health care benefit plan in 2013.
Estimated Future Benefit Payments
Benefit payments by the plans, which reflect expected future service as appropriate, are expected to be paid as
follows:
Estimated Future Benefit Payments Pension Postretirement
(millions) Benefits Health Care Benefits
2013 $ 141 $ 6
2014 150 7
2015 158 7
2016 167 8
2017 176 8
2018-2022 1,007 48
62