Target 2007 Annual Report Download - page 62

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Pension Benefits
Change in Projected Postretirement
Benefit Obligation Qualified Plans Nonqualified Plans Health Care Benefits
(millions) 2007 2006 2007 2006 2007 2006
Benefit obligation at beginning of
measurement period (a) $1,764 $1,626 $36 $33 $115 $105
Effect of SFAS 158 adoption 8—1—2—
Service cost 96 82 1143
Interest cost 103 91 2276
Actuarial (gain)/loss (80) 32 (4) 5(10) 13
Participant contributions 1———79
Benefits paid (81) (76) (3) (5) (17) (21)
Plan amendments —9————
Benefit obligation at end of
measurement period $1,811 $1,764 $33 $36 $108 $115
Pension Benefits
Change in Plan Assets Postretirement
Qualified Plans Nonqualified Plans Health Care Benefits
(millions) 2007 2006 2007 2006 2007 2006
Fair value of plan assets at
beginning of measurement
period $2,075 $1,845 $— $— $— $—
Effect of SFAS 158 adoption 75 —————
Actual return on plan assets 119 303 ————
Employer contribution 333510 12
Participant contributions 1———79
Benefits paid (81) (76) (3) (5) (17) (21)
Fair value of plan assets at end of
measurement period 2,192 2,075 ————
Funded status $ 381 $ 311 $(33) $(36) $(108) $(115)
(a) Beginning in 2007, the measurement date is the last day of the fiscal year. In 2006, the measurement date was October 31.
Amounts recognized in the balance sheet consist of the following amounts:
Nonqualified Plans
Recognition of Funded/(Underfunded) Status (including postretirement
Qualified Plans health care benefits)
(millions) 2007 2006 2007 2006
Other noncurrent assets $394 $325 $— $—
Accrued and other current liabilities ——(12) (16)
Other noncurrent liabilities (13) (14) (129) (135)
Net amounts recognized $381 $311 $(141) $(151)
No plan assets are expected to be returned to us during 2008.
The following table summarizes the amounts recorded in accumulated other comprehensive income,
which have not yet been recognized as a component of net periodic benefit expense:
Amounts in Accumulated Other Comprehensive Income Postretirement
Pension Plans Health Care Plans
(millions) 2007 2006 2007 2006
Net actuarial loss $227 $405 $9 $20
Prior service credits (15) (20) ——
Amounts in accumulated other comprehensive income $212 $385 $9 $20
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