Staples 2012 Annual Report Download - page 149

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C-37
STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (continued)
January 28, 2012
U.S. Pension Plans International Plans
Quoted
Prices in
Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs Unobservable
Inputs
Quoted
Prices in
Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs Unobservable
Inputs
Asset Category:
Fair
Market
Value Level 1 Level 2 Level 3 Fair Market
Value Level 1 Level 2 Level 3
Equity securities
(1) $ 10,731 $ 10,731 $ — $ — $ 323,373 $ 295,455 $ 27,918 $ —
Debt securities (2) 16,703 6,765 — 9,938 524,357 517,346 7,011 —
Real estate (3) 2,206 2,206 — — 88,871 80,824 8,047 —
Cash — — — — 56,980 56,980 — —
Other (4) — — — — 71,088 15,026 56,062 —
Total $ 29,640 $ 19,702 $ — $ 9,938 $1,064,669 $ 965,631 $ 99,038 $ —
(1) This category includes investments in equity securities of large, small and medium sized companies in the U.S. and in
foreign companies, including those in developing countries. The funds are valued using the net asset value method in
which an average of the market prices for the underlying investments is used to value the fund. For securities with
unobservable inputs, the value is based on audited statements for the underlying fund.
(2) This category includes investments in investment grade fixed income instrument, U.S. dollar denominated debt securities
of emerging market issuers and high yield fixed-income securities that are rated below investment grade. The funds are
valued using the net asset value method in which an average of the market prices for the underlying investments is issued
to value the fund. For securities with unobservable inputs, the value is based on discounted future cash flows.
(3) This category includes investments in mortgage-backed and asset-backed securities. The funds are valued using the net
asset value method in which an average of the market prices for the underlying investments is used to value the fund.
(4) This category includes commodities of approximately $22.8 million and $49.9 million and non-separated investments
with insurance companies of approximately $12.4 million and $13.1 million for the years ended February 2, 2013 and
January 28, 2012 respectively. Commodities are valued using the net asset value method in which an average of the
market prices for the underlying investments is used; the insurance contracts are based on discounted future cash flows.
The change in the fair value for the pension assets valued using significant unobservable inputs (Level 3) was due to the
following:
U.S. Plans International Plans
Balance at January 28, 2012 $ 9,938 $ —
Reclassification into Level 3 — 48,419
Actual Return on Plan Assets:
Relating to assets still held at the reporting date (220) 1,414
Relating to assets sold during the period ——
Purchases, sales and settlements ——
Translation adjustments — 1,208
Balance at February 2, 2013 $ 9,718 $ 51,041