Target 2013 Annual Report Download - page 66

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61
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/
balanced funds/ certain
multi-strategy hedge funds
Valued using the NAV provided by the administrator of the fund. The NAV is a
quoted transactional price for participants in the fund, which do not represent an
active market.
Fixed income and government
securities Valued using matrix pricing models and quoted prices of securities with similar
characteristics.
Private equity/ real estate/
certain multi-strategy hedge
funds/ other
Valued by deriving Target's proportionate share of equity investment from audited
financial statements. Private equity and real estate investments require
significant judgment on the part of the fund manager due to the absence of
quoted market prices, inherent lack of liquidity, and the long term 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
Our obligations to plan participants can be met over time through a combination of company contributions to these
plans and earnings on plan assets. In 2013 we made no contributions to our qualified defined benefit pension plans.
In 2012, we made discretionary contributions of $122 million. We are not required to make any contributions in 2014.
However, depending on investment performance and plan funded status, we may elect to make a contribution. We
expect to make contributions in the range of $5 million to $6 million to our postretirement health care benefit plan in
2014.
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
(millions) Pension
Benefits Postretirement
Health Care Benefits
2014 $ 152 $ 6
2015 159 6
2016 169 7
2017 178 8
2018 188 8
2019-2023 1,058 45