Foot Locker 2014 Annual Report Download - page 83

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FOOT LOCKER, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
19. Fair Value Measurements − (continued)
There were no transfers into or out of Level 1, Level 2, or Level 3 assets and liabilities for any of the periods
presented
The carrying value and estimated fair value of long-term debt and obligations under capital leases were as
follows:
2014 2013
(in millions)
Carrying value $134 $139
Fair value $163 $159
The fair value of long-term debt is determined by using model-derived valuations in which all significant inputs
or significant value-drivers are observable in active markets and therefore are classified as Level 2. The carrying
values of cash and cash equivalents, short-term investments, and other current receivables and payables
approximate their fair value.
20. Retirement Plans and Other Benefits
Pension and Other Postretirement Plans
The Company has defined benefit pension plans covering certain of its North American employees, which are
funded in accordance with the provisions of the laws where the plans are in effect. In addition, the Company has
a defined benefit plan for certain individuals of Runners Point Group. The Company also sponsors
postretirement medical and life insurance plans, which are available to most of its retired U.S. employees.
These plans are contributory and are not funded. The measurement date of the assets and liabilities is the last
day of the fiscal year.
The following tables set forth the plans’ changes in benefit obligations and plan assets, funded status, and
amounts recognized in the Consolidated Balance Sheets, measured at January 31, 2015 and February 1, 2014:
Pension Benefits Postretirement Benefits
2014 2013 2014 2013
(in millions)
Change in benefit obligation
Benefit obligation at beginning of year $674 $706 $15 $15
Service cost 15 14 ——
Interest cost 28 25 11
Plan participants’ contributions ——22
Actuarial (gain) loss 67 (11) 4—
Foreign currency translation adjustments (9) (9) ——
Runners Point Group acquisition —1——
Benefits paid (53) (52) (3) (3)
Benefit obligation at end of year $722 $674 $19 $15
Change in plan assets
Fair value of plan assets at beginning of year $650 $673
Actual return on plan assets 90 33
Employer contributions 95
Foreign currency translation adjustments (10) (9)
Benefits paid (53) (52)
Fair value of plan assets at end of year $686 $650
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