Target 2008 Annual Report Download - page 66

repurchases totaled 4.7 million, 3.4 million and 1.6 million shares, respectively, and are included in the total
share repurchases described in Note 24.
Prepaid Forward Contracts on Target Common Stock
(millions, except per share data)
Number of Shares Current Fair Value at
Contractual Contract Price
Settlement Date January 31, 2009 February 2, 2008 per Share January 31, 2009 February 2, 2008
May 2008 250,000 $48.76 $14
July 2008 72,832 62.46 4
August 2008 57,331 62.25 3
August 2008 145,894 61.69 9
August 2008 371,262 61.95 21
October 2008 247,524 60.60 14
November 2008 288,001 59.03 17
February 2008 177,085 56.47 10
February 2008 157,960 50.65 9
January 2009 400,000 48.11 23
October 2009 1,946,169 41.11 $61
November 2009 255,200 31.35 8
2,201,369 2,167,889 $69 $124
The settlement dates of these instruments are regularly renegotiated with the counterparty, so settlement
may not occur during the months listed on the table above.
Defined Contribution Plan Expenses
(millions) 2008 2007 2006
401(k) Defined Contribution Plan
Matching contributions expense $178 $172 $141
Nonqualified Deferred Compensation Plans
Benefits expense/(income) $ (80) $46 $98
Related investment loss/(income) (a) 83 (26) (68)
Nonqualified plan net expense $3 $20 $30
(a) Investment income includes changes in unrealized gains and losses on prepaid forward contracts and realized gains and losses on
company-owned life insurance policies.
27. Pension and Postretirement Health Care Plans
We have qualified defined benefit pension plans covering all U.S. team members who meet age and
service requirements, including in certain circumstances date of hire. We also have unfunded nonqualified
pension plans for team members with qualified plan compensation restrictions. Eligibility for, and the level of,
these benefits varies depending on team members’ date of hire, length of service and/or team member
compensation. Upon retirement, team members also become eligible for certain health care benefits if they
meet minimum age and service requirements and agree to contribute a portion of the cost.
SFAS No. 158, ‘‘Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans, an
amendment of FASB Statements No. 87, 88, 106, and 132(R)’’ (SFAS 158) requires plan sponsors of defined
benefit pension and other postretirement benefit plans (collectively postretirement benefit plans) to recognize
the funded status of their postretirement benefit plans in the statement of financial position, measure the fair
value of plan assets and benefit obligations as of the date of the fiscal year-end statement of financial position
and provide additional disclosures.
At the beginning of fiscal 2007, we early adopted the measurement date provisions of SFAS 158 which
require us to measure the fair value of plan assets and benefit obligations as of the date of the year-end
statement of financial position. Before 2007, we measured our pension and postretirement benefit obligations
at the end of October each year. As a result, we recorded a $16 million decrease to retained earnings, a
$54 million increase to accumulated other comprehensive income, a $65 million increase to other noncurrent
assets, a $3 million increase to other noncurrent liabilities, and a $24 million decrease to deferred income
taxes. The adoption of the measurement date provisions of SFAS 158 had no effect on our Consolidated
Statements of Financial Position at February 4, 2007 or any prior periods.
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