Foot Locker 2010 Annual Report Download - page 78

The following table is a reconciliation of the fair value of the U.S. pension plan’s real estate investments
classified as Level 3:
(in millions) Level 3
Balance at January 31, 2009........................................ $ 7
Changes during the year......................................... —
Balance at January 30, 2010........................................ $ 7
Appreciation on appraised value of real estate .......................... 2
Balance at January 29, 2011........................................ $ 9
The fair values of the Company’s Canadian pension plan assets at January 29, 2011 and January 30, 2010 are
as follows:
(in millions) Level 1 Level 2 Level 3 2010 Total 2009 Total*
Cash and cash equivalents ................ $— $ 1 $— $ 1 $—
Equity securities:
Canadian and International
(1)
............ — 6 — 6 6
Debt securities:
Cash matched bonds
(2)
................. — 83 — 83 79
Total assets at fair value ................. $— $90 $— $90 $85
* Each category of plan assets is classified within the same level of the fair value hierarchy for 2010 and 2009.
(1) This category comprises two mutual funds that invest primarily in a diverse portfolio of Canadian and international equity securities.
(2) This category consists of fixed income securities, including strips and coupons, issued or guaranteed by the Government of Canada,
provinces or municipalities of Canada including their agencies and crown corporations, as well as other governmental bonds and
corporate bonds.
No Level 3 assets were held by the Canadian pension plan during 2010.
During 2010 the Company made contributions of $30 million and $2 million to its U.S. and Canadian plans,
respectively. The Company contributed approximately $1 million to its Canadian pension plan in February 2011.
The Company continuously evaluates the amount and timing of any future contributions. Additional
contributions will depend on the plan asset performance and other factors.
Estimated future benefit payments for each of the next five years and the five years thereafter are as
follows:
Pension
Benefits Postretirement Benefits
(in millions)
2011 ......................................... $ 73 $1
2012 ......................................... 62 1
2013 ......................................... 59 1
2014 ......................................... 57 1
2015 ......................................... 56 1
2016-2020 ......................................... 257 5
In February 2007, the Company and its U.S. pension plan, the Foot Locker Retirement Plan, were named as
defendants in a class action in federal court in New York. The Complaint alleged that the Company’s pension plan
violated the Employee Retirement Income Security Act of 1974, including, without limitation, its age
discrimination and notice provisions, as a result of the Company’s conversion of its defined benefit plan to a
defined benefit pension plan with a cash balance feature in 1996. The Company is defending the action
vigorously. The Company is currently unable to make an estimate of loss or range of loss. Management does not
believe that the outcome of any such proceedings would have a material adverse effect on the Company’s
consolidated financial position, liquidity, or results of operations, taken as a whole.
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