Old COPPER Company, Inc. - 10-K filing on 2012-03-28

Retirement Benefit Plans (Tables)

12 Months Ended

Jan. 28, 2012

Jan. 29, 2011

Schedule of Defined Contribution Plan Expense [Text Block]

($ in millions)	2011	2010	2009
Savings Plan – 401(k)	$ 52	$ 41	$ 55
Savings Plan – retirement account	11	12	8
Mirror Savings Plan	4	3	2

Total	$ 67	$ 56	$ 65

Pension Plans, Defined Benefit [Member]

Schedule of Pension Plan Expense/(Income)


	2011			2010			2009
($ in millions)	Primary Plan	Supp. Plans	Total	Primary Plan	Supp. Plans	Total	Primary Plan	Supp. Plans	Total
Service cost	$ 88	$ 2	$ 90	$ 88	$ 1	$ 89	$ 80	$ 3	$ 83
Interest cost	247	13	260	248	14	262	253	17	270
Projected return on assets	(385)	-	(385)	(352)	-	(352 )	(304 )	-	(304 )
Amortization of actuarial loss	137	19	156	237	19	256	269	19	288

Net periodic pension plan expense	$ 87	$ 34	$ 121	$ 221	$ 34	$ 255	$ 298	$ 39	$ 337

Schedule of Changes in Projected Benefit Obligations [Table Text Block]


	Primary Plans		Supplemental Plans
($ in millions)	2011	2010	2011	2010
Change in PBO
Beginning balance	$ 4,488	$ 4,326	$ 222	$ 257
Service cost	88	88	2	1
Interest cost	247	248	13	14
Special termination benefits	133	-	43	-
Amendments	-	-	3	-
Actuarial loss/(gain)	612	80	65	(18)
Benefits (paid)	(271)	(254)	(39)	(32)

Balance at measurement date	$ 5,297	$ 4,488	$ 309	$ 222

Change in fair value of plan assets
Beginning balance	$ 5,251	$ 4,314	$ -	$ -
Company contributions	-	392	39	32
Actual return on assets⁽¹⁾	196	799	-	-
Benefits (paid)	(271)	(254)	(39)	(32)

Balance at measurement date	$ 5,176	$ 5,251	$ -	$ -

Funded status of the plan	$ (121)⁽²⁾	$ 763⁽³⁾	$ (309)⁽⁴⁾	$ (222)⁽⁴⁾

(1) Includes plan administrative expenses.

(2) Included in other liabilities in the Consolidated Balance Sheets.

(3) Presented as prepaid pension in the Consolidated Balance Sheets.

(4) $45 million in 2011 and $28 million in 2010 were included in other accounts payable and accrued expenses on the Consolidated Balance Sheets, and the remaining amounts were included in other liabilities.

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]


	Primary Plan		Supplemental Plans
($ in millions)	2011	2010	2011	2010
Net loss	$ 2,148⁽¹⁾	$ 1,484	$ 163⁽¹⁾	$ 117
Prior service cost	1	1	4	1

	$ 2,149	$ 1,485	$ 167	$ 118

(1) Approximately $231 million for the primary plan and $22 million for the supplemental plans are expected to be amortized from accumulated other comprehensive (loss)/income into net periodic benefit expense/(income) in 2012.

Schedule of Allocation of Plan Assets [Table Text Block]


($ in millions)	Investments at Fair Value at Year-End 2011 1
	Level 1⁽¹⁾	Level 2⁽¹⁾	Level 3	Total
Cash	$ 6	$ -	$ -	$ 6
Common collective trusts	-	42	-	42

Cash and cash equivalents total	6	42	-	48

Common collective trusts – domestic	-	341	-	341
Common collective trusts – international	-	400	-	400
Equity securities – domestic	1,379	-	-	1,379
Equity securities – international	335	14	-	349
Private equity	-	-	299	299

Equity securities total	1,714	755	299	2,768

Common collective trusts	-	1,070	-	1,070
Corporate bonds	-	720	36	756
Municipal bonds	-	80	-	80
Government securities	-	8	-	8
Mortgage backed securities	-	42	-	42

Fixed income total	-	1,920	36	1,956

Real estate	106	44	255	405

Real estate total	106	44	255	405

Total investment assets at fair value	$ 1,826	$ 2,761	$ 590	$ 5,177

Accounts payable, net				(1)

Total				$ 5,176


($ in millions)	Investments at Fair Value at Year-End 2010
	Level 1⁽¹⁾	Level 2⁽¹⁾	Level 3	Total
Cash	$ 4	$ -	$ -	$ 4
Common collective trusts	-	70	-	70

Cash and cash equivalents total	4	70	-	74

Common collective trusts - domestic	-	117	-	117
Common collective trusts – international	-	465	-	465
Equity securities - domestic	2,261	3	-	2,264
Equity securities – international	407	1	-	408
Private equity	-	-	291	291

Equity securities total	2,668	586	291	3,545

Common collective trusts	-	649	-	649
Corporate bonds	-	476	4	480
Municipal bonds	-	23	-	23
Government securities	-	13	-	13
Mortgage backed securities	-	10	-	10
Other fixed income	-	11	-	11

Fixed income total	-	1,182	4	1,186

Real estate	163	38	251	452

Real estate total	163	38	251	452

Total investment assets at fair value	$ 2,835	$ 1,876	$ 546	$ 5,257

Accounts payable, net				(6)

Total				$ 5,251

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block]


Level 3 Investment Assets Year-End 2011
Level 3 Investment Assets Year-End 2011
($ in millions)	Private Equity Funds	Real Estate	Corporate Bonds
Balance, beginning of year	$ 291	$ 251	$ 4
Transfers, net	-	-	11
Realized gains	33	10	-
Unrealized (losses)/gains	(17)	24	(1)
Purchases and issuances	53	12	33
Sales, maturities and settlements	(61)	(42)	(11)

Balance, end of year	$ 299	$ 255	$ 36


Level 3 Investment Assets Year-End 2010
Level 3 Investment Assets Year-End 2010
($ in millions)	Private Equity Funds	Real Estate	Corporate Bonds
Balance, beginning of year	$ 252	$ 231	$ -
Realized gains	21	15	4
Unrealized (losses)/gains	19	(31)	-
Purchases and issuances	46	61	-
Sales, maturities and settlements	(47)	(25)	-

Balance, end of year	$ 291	$ 251	$ 4

Schedule of Expected Benefit Payments [Table Text Block]


($ in millions)	Primary Plan Benefits	Supplemental Plan Benefits
2012	$ 284	$ 46
2013	302	45
2014	302	42
2015	307	40
2016	312	34
2017-2021	1,662	82

Schedule of Target Allocation Ranges for Defined Benefit Plan Assets [Text Block]


		Plan Assets
	2011 Target Allocation Ranges	2011	2010
Asset Class
Asset Class
Equity	45% - 60%	53%	68%
Fixed income	35% - 45%	38%	22%
Real estate, cash and other	5% - 15%	9%	10%

Total		100%	100%

Weighted-Average Actuarial Assumptions Used To Determine Expense [Member]

Schedule of Assumptions Used [Table Text Block]


	2011	2010	2009
Expected return on plan assets	7.5%	8.4%	8.4%
Discount rate	5.65%⁽¹⁾	5.90%	6.86%⁽²⁾
Salary increase	4.7%	4.7%	4.7%

⁽¹⁾The discount rate used for the Supplemental Retirement Program and Benefit Restoration Plan was revised to 5.06% on the remeasurement date of October 15, 2011 as a result of the VERP.

⁽²⁾For the first four months of 2009, the initial discount rate was 6.95% as determined by the January 31, 2009 annual measurement. The discount rate was revised to 6.86% on the remeasurement date of May 18, 2009. The supplemental plans and retiree medical plans used 6.95% for the year, since those plans were not subject to remeasurement.

Weighted Average Actuarial Assumptions Used To Determine Liability [Member]

Schedule of Assumptions Used [Table Text Block]


	2011	2010	2009
Discount rate	4.82%	5.65%	5.90%
Salary progression rate	4.7%	4.7%	4.7%

Other Postretirement Benefit Plans, Defined Benefit [Member]

Schedule of Pension Plan Expense/(Income)


($ in millions)	2011	2010	2009
Service cost	$ -	$ -	$ -
Interest cost	1	1	1
Amortization of prior service (credit)	(26)	(26 )	(26 )

Net periodic postretirement benefit (income)	$ (25)	$ (25)	$ (25 )

Schedule of Changes in Projected Benefit Obligations [Table Text Block]


($ in millions)	2011	2010
Change in APBO
Beginning balance	$ 15	$ 18
Interest cost	1	1
Participant contributions	11	11
Actuarial (gain)/loss	9	(3)
Benefits (paid)	(12)	(12)

Balance at measurement date	$ 24	$ 15

Change in fair value of plan assets
Beginning balance	$ -	$ -
Participant contributions	11	11
Company contributions	1	1
Benefits (paid)	(12)	(12)

Balance at measurement date	$ -	$ -

Funded status of the plan	$ (24)⁽¹⁾	$ (15)⁽¹⁾

(1) Of the total accrued liability, $3 million for 2011 and 2010 was included in other accounts payable and accrued expenses in the Consolidated Balance Sheets, and the remaining amounts were included in other liabilities.

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]


	Postretirement Plans
($ in millions)	2011	2010
Net (gain)	$ (5)⁽¹⁾	$ (14)
Prior service (credit)	(43)⁽¹⁾	(68)

	$ (48)	$ (82)

(1) In 2012, approximately $(15) million of prior service (credit) and no net (gain) for the postretirement plan are expected to be amortized from accumulated other comprehensive loss into net periodic postretirement benefit (income).

Schedule of Expected Benefit Payments [Table Text Block]


($ in millions)	Other Postretirement Benefits
2012	$ 4
2013	3
2014	3
2015	3
2016	3
2017-2021	10