Target 2010 Annual Report Download - page 85

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Position Valuation Technique
Cash and cash equivalents These investments are cash holdings and investment vehicles valued using the Net
Asset Value (NAV) provided by the administrator of the fund. The NAV for the
investment vehicles is based on the value of the underlying assets owned by the fund
minus applicable costs and liabilities, and then divided by the number of shares
outstanding.
Equity securities Valued at the closing price reported on the major market on which the individual
securities are traded.
Common collective trusts/ Valued using the NAV provided by the administrator of the fund. The NAV is a quoted
balanced funds/certain multi- transactional price for participants in the fund, which do not represent an active market.
strategy hedge funds
Fixed income and Valued using matrix pricing models and quoted prices of securities with similar
government securities characteristics.
Private equity/real estate/ Valued by deriving Target’s proportionate share of equity investment from audited
certain multi-strategy hedge financial statements. Private equity and real estate investments require significant
funds/other judgment on the part of the fund manager due to the absence of quoted market prices,
inherent lack of liquidity, and the long-term nature of such investments. Certain multi-
strategy hedge funds represent funds of funds that include liquidity restrictions and for
which timely valuation information is not available.
Contributions
In 2010 and 2009, we made discretionary contributions of $153 million and $252 million, respectively, to our
qualified defined benefit pension plans. Even though we are not required to make any contributions, we may elect
to make contributions depending on investment performance and the pension plan funded status in 2011. We
expect to make contributions in the range of $10 million to $15 million to our postretirement health care benefit plan
in 2011.
Estimated Future Benefit Payments
Benefit payments by the plans, which reflect expected future service as appropriate, are expected to be paid as
follows:
Estimated Future Benefit Payments Postretirement
Pension Health Care
(millions) Benefits Benefits
2011 $129 $8
2012 138 7
2013 145 7
2014 154 8
2015 161 9
2016-2020 935 67
63
PART II