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We adopted the recognition and disclosure provisions of SFAS 158 on February 3, 2007, which require us
to recognize the funded status, which is the difference between the fair value of plan assets and the projected
benefit obligations, of our postretirement benefit plans in the February 3, 2007 Consolidated Statements of
Financial Position, with a corresponding adjustment to accumulated other comprehensive loss, net of tax. The
adjustment to accumulated other comprehensive loss at adoption represents the net unrecognized actuarial
losses and unrecognized prior service costs. The adoption of the recognition provisions of SFAS 158 had no
effect on our Consolidated Statements of Operations at February 3, 2007 or any prior periods.
The following table provides a summary of the changes in the benefit obligations, fair value of plan assets,
and funded status and amounts recognized in our Consolidated Statement of Financial Position for our
postretirement benefit plans:
Pension Benefits
Change in Projected Postretirement
Benefit Obligation Qualified Plans Nonqualified Plans Health Care Benefits
(millions) 2008 2007 2008 2007 2008 2007
Benefit obligation at beginning of
measurement period (a) $1,811 $1,764 $33 $36 $108 $115
Effect of SFAS 158 adoption —8—1—2
Service cost 93 96 1154
Interest cost 114 103 2277
Actuarial (gain)/loss 21 (80) 4(4) 10 (10)
Participant contributions —1——67
Benefits paid (94) (81) (4) (3) (19) (17)
Plan amendments 3—————
Benefit obligation at end of
measurement period $1,948 $1,811 $36 $33 $117 $108
(a) Beginning in 2007, the measurement date is the last day of the fiscal year.
Pension Benefits
Change in Plan Assets Postretirement
Qualified Plans Nonqualified Plans Health Care Benefits
(millions) 2008 2007 2008 2007 2008 2007
Fair value of plan assets at
beginning of measurement
period $2,192 $2,075 $— $— $— $—
Effect of SFAS 158 adoption —75 ————
Actual return on plan assets (430) 119 ————
Employer contribution 103 34313 10
Participant contributions —1——67
Benefits paid (94) (81) (4) (3) (19) (17)
Fair value of plan assets at end of
measurement period 1,771 2,192 ————
Benefit obligation at end of
measurement period 1,948 1,811 36 33 117 108
Funded status $ (177) $ 381 $(36) $(33) $(117) $(108)
Amounts recognized in the Consolidated Statements of Financial Position consist of the following:
Qualified Plans Nonqualified Plans (a)
Recognition of Funded/(Underfunded) Status
(millions) 2008 2007 2008 2007
Other noncurrent assets $1 $394 $— $—
Accrued and other current liabilities (1) —(13) (12)
Other noncurrent liabilities (177) (13) (140) (129)
Net amounts recognized $(177) $381 $(153) $(141)
(a) Includes postretirement health care benefits.
47
PART II