Foot Locker 2009 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2009 Foot Locker 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 100

  • 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
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

The components of net benefit expense (income) are:
Pension Benefits Postretirement Benefits
2009 2008 2007 2009 2008 2007
(in millions)
Service cost .................. $11 $10 $10 $— $— $—
Interest cost ................. 36 36 36 1 1 —
Expected return on plan assets ..... (43) (53) (56) — — —
Amortization of prior service cost
(benefit) .................. 1 1 1 — — (1)
Amortization of net loss (gain) ..... 13 11 11 (7) (8) (8)
Net benefit expense (income) ...... $18 $ 5 $ 2 $(6) $(7) $(9)
The following tables set forth the changes in accumulated other comprehensive loss (pre-tax) at January 30,
2010:
Pension
Benefits Postretirement
Benefits
(in millions)
Net actuarial loss (gain) at beginning of year .................. $448 $(41)
Amortization of net (loss) gain ........................... (13) 7
Loss (gain) arising during the year ......................... 15 (1)
Foreign currency translation adjustments .................... 7 —
Net actuarial loss (gain) at end of year
(1)
..................... $457 $(35)
Net prior service cost (benefit) at beginning of year ............. $ 2 $ (3)
Amortization of prior service cost .......................... (1) —
Loss arising during the year .............................. — 2
Net prior service cost (benefit) at end of year .................. $ 1 $ (1)
Total amount recognized ............................... $458 $(36)
(1) The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost
(income) during the next year are approximately $18 million and $(6) million related to the pension and postretirement plans,
respectively.
The following weighted-average assumptions were used to determine the benefit obligations under the
plans:
Pension Benefits Postretirement Benefits
2009 2008 2009 2008
Discount rate ........................... 5.25% 6.22% 4.90% 6.20%
Rate of compensation increase ............... 3.67% 3.72%
The following weighted-average assumptions were used to determine net benefit cost:
Pension Benefits Postretirement Benefits
2009 2008 2007 2009 2008 2007
Discount rate ................. 6.22% 5.88% 5.66% 6.20% 6.10% 5.80%
Rate of compensation increase ..... 3.67% 3.72% 3.75%
Expected long-term rate of return on
assets .................... 7.63% 8.17% 8.85%
55