Target 2011 Annual Report Download - page 78

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27. Pension and Postretirement Health Care Plans
We have qualified defined benefit pension plans covering 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 early
retirement and prior to Medicare eligibility, 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. Effective January 1,
2009, our qualified defined benefit pension plan was closed to new participants, with limited exceptions.
Change in Projected Benefit Obligation Pension Benefits Postretirement
Qualified Plans Nonqualified Plans Health Care Benefits
(millions) 2011 2010 2011 2010 2011 2010
Benefit obligation at beginning of period $2,525 $2,227 $31 $33 $94 $87
Service cost 116 114 1110 9
Interest cost 135 127 2244
Actuarial (gain)/loss 349 160 7(2) —3
Participant contributions 12——66
Benefits paid (111) (105) (3) (3) (14) (15)
Benefit obligation at end of period $3,015 $2,525 $38 $31 $ 100 $94
Change in Plan Assets Pension Benefits Postretirement
Qualified Plans Nonqualified Plans Health Care Benefits
(millions) 2011 2010 2011 2010 2011 2010
Fair value of plan assets at beginning of period $2,515 $2,157 $— $— $— $—
Actual return on plan assets 364 308 ————
Employer contributions 152 153 3389
Participant contributions 12——66
Benefits paid (111) (105) (3) (3) (14) (15)
Fair value of plan assets at end of period 2,921 2,515 ————
Benefit obligation at end of period 3,015 2,525 38 31 100 94
Funded/(underfunded) status $ (94) $ (10) $(38) $(31) $(100) $ (94)
Qualified Plans Nonqualified Plans (a)Recognition of Funded/(Underfunded) Status
(millions) 2011 2010 2011 2010
Other noncurrent assets $3 $5 $— $—
Accrued and other current liabilities (1) (1) (9) (11)
Other noncurrent liabilities (96) (14) (129) (114)
Net amounts recognized $(94) $(10) $(138) $(125)
(a) Includes postretirement health care benefits.
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:
PostretirementAmounts in Accumulated Other Comprehensive Income
Pension Plans Health Care Plans
(millions) 2011 2010 2011 2010
Net actuarial loss $1,027 $895 $44 $48
Prior service credits —(1) (41) (51)
Amounts in accumulated other comprehensive income $1,027 $894 $3 $(3)
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