Target 2015 Annual Report Download - page 64

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28. Pension and Postretirement Health Care Plans
We have qualified defined benefit pension plans covering team members who meet age and service requirements,
including date of hire in certain circumstances. Effective January€1, 2009, our U.S. qualified defined benefit pension
plan was closed to new participants, with limited exceptions. 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 each team members' date of hire, length of service and/or team member compensation. Effective April
1, 2016, we will discontinue the postretirement health care benefits that were offered to team members upon early
retirement and prior to Medicare eligibility.€ This decision resulted in a $58 million reduction in the projected
postretirement health care benefit obligation and a $43 million curtailment gain recorded in SG&A during 2015. As of
January 30, 2016, we have extinguished the remaining benefit obligation related to this plan.
Change in Projected Benefit Obligation Qualified Plans Nonqualified Plans
(millions) 2015 2014 2015 2014
Benefit obligation at beginning of period $3,844 $3,173 $43 $35
Service cost 108 111 1 1
Interest cost 152 148 2 1
Actuarial (gain)/loss (400)556 (4)9
Participant contributions 6 3 — —
Benefits paid (155)(147)(3)(3)
Plan amendments 3 — — —
Benefit obligation at end of period $3,558 $3,844 $39 $43
€Change€in€Plan€Assets Qualified Plans Nonqualified Plans
(millions) 2015 2014 2015 2014
Fair€value€of€plan€assets€at€beginning€of€period $3,784 $3,267 $—$—
Actual return on plan assets (231)507 — —
Employer contributions 203 154 3 3
Participant contributions 6 3 — —
Benefits paid (155)(147)(3)(3)
Fair value of plan assets at end of period 3,607 3,784 — —
Benefit obligation at end of period 3,558 3,844 39 43
Funded/(underfunded) status $49 $(60) $ (39) $ (43)
Recognition of Funded/(Underfunded) Status Qualified Plans Nonqualified€Plans
(millions) 2015 2014 2015 2014
Other noncurrent assets $66 $—$—$—
Accrued and other current liabilities (1)(1)(6)(4)
Other noncurrent liabilities (16)(59)(33)(39)
Net amounts recognized $49 $(60) $ (39) $ (43)
Amounts€in€Accumulated€Other€Comprehensive€Income
(millions) 2015 2014
Net actuarial loss $1,022 $1,018
Prior service credits (57)(69)
Amounts in accumulated other comprehensive income $965 $949
59