Foot Locker 2013 Annual Report Download - page 84

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Foot Locker, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
21. Retirement Plans and Other Benefits − (continued)
As of February 1, 2014 and February 2, 2013, the Canadian qualified pension plan’s assets exceeded its accu-
mulated benefit obligation.
Information for pension plans with an accumulated benefit obligation in excess of plan assets is as follows:
2013 2012
(in millions)
Projected benefit obligation $ 603 $625
Accumulated benefit obligation 603 625
Fair value of plan assets 575 585
The following tables set forth the changes in accumulated other comprehensive loss (pre-tax) at February 1, 2014:
Pension
Benefits Postretirement
Benefits
(in millions)
Net actuarial loss (gain) at beginning of year $ 426 $(16)
Amortization of net (loss) gain (17) 3
(Gain) loss arising during the year (5) —
Foreign currency fluctuations (5) —
Net actuarial loss (gain) at end of year
(1)
$ 399 $(13)
Net prior service cost at end of year
(1)
1—
Total amount recognized $ 400 $(13)
(1) The net prior service cost did not change during the year. 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 $16 million and $(3)
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
2013 2012 2013 2012
Discount rate 4.32% 3.79% 4.20% 3.70%
Rate of compensation increase 3.69% 3.68%
Pension expense is actuarially calculated annually based on data available at the beginning of each year. The
expected return on plan assets is determined by multiplying the expected long-term rate of return on assets by
the market-related value of plan assets for the U.S. qualified pension plan and market value for the Canadian
qualified pension plan. The market-related value of plan assets is a calculated value that recognizes investment
gains and losses in fair value related to equities over three or five years, depending on which computation
results in a market-related value closer to market value. Market-related value for the U.S. qualified plan was
$579 million and $550 million for 2013 and 2012, respectively.
61