Old COPPER Company, Inc. - 10-K filing on 2013-03-20

Retirement Benefit Plans (Tables)

12 Months Ended

Feb. 02, 2013

Jan. 28, 2012

Schedule of Pension Plan Expense/(Income)


($ in millions)
Primary Pension Plan	2012		2011		2010
Service cost	$	87	$	88	$	88
Interest cost		242		247		248
Expected return on plan assets		(382)		(385)		(352)
Amortization of actuarial loss/(gain)		220		137		237
Settlement expense		148		-		-
Net periodic benefit expense/(income)	$	315	$	87	$	221

Supplemental Pension Plans
Service cost	$	1	$	2	$	1
Interest cost		13		13		14
Amortization of actuarial loss/(gain)		23		18		18
Amortization of prior service cost/(credit)		1		1		1
Net periodic benefit expense/(income)	$	38	$	34	$	34

Primary and Supplemental Pension Plans Total
Service cost	$	88	$	90	$	89
Interest cost		255		260		262
Expected return on plan assets		(382)		(385)		(352)
Amortization of actuarial loss/(gain)		243		155		255
Amortization of prior service cost/(credit)		1		1		1
Settlement charge		148		-		-
Net periodic benefit expense/(income)	$	353	$	121	$	255

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


	Primary Pension Plan						Supplemental Plans
($ in millions)	2012			2011			2012			2011
Change in PBO
Beginning balance	$	5,297		$	4,488		$	309		$	222
Service cost		87			88			1			2
Interest cost		242			247			13			13
Special termination benefits		-			133			-			43
Amendments		42			-			-			3
Curtailments		(80)			-			(13)			-
Settlements		(439)			-			-			-
Actuarial loss/(gain)		204			612			59			65
Benefits (paid)		(311)			(271)			(66)			(39)
Balance at measurement date	$	5,042		$	5,297		$	303		$	309

Change in fair value of plan assets
Beginning balance	$	5,176		$	5,251		$	-		$	-
Company contributions		-			-			66			39
Actual return on assets⁽¹⁾		609			196			-			-
Settlements		(439)			-			-			-
Benefits (paid)		(311)			(271)			(66)			(39)
Balance at measurement date	$	5,035		$	5,176		$	-		$	-
Funded status of the plan	$	(7)	⁽²⁾	$	(121)	⁽²⁾	$	(303)	⁽³⁾	$	(309)	⁽³⁾

(1) Includes plan administrative expenses.

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

(3) $53 million in 2012 and $45 million in 2011 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 Pension Plan					Supplemental Plans
($ in millions)	2012			2011		2012			2011
Net loss	$	1,679	⁽¹⁾	$	2,148	$	185	⁽¹⁾	$	163
Prior service cost		42			1		3			4
Total	$	1,721		$	2,149	$	188		$	167

(1) Approximately $158 million for the Primary Pension Plan and $24 million for the supplemental plans are expected to be amortized from accumulated other comprehensive income/loss into net periodic benefit expense/(income) in 2013.

Schedule of Allocation of Plan Assets [Table Text Block]


	Investments at Fair Value at February 2, 2013
($ in millions)	Level 1⁽¹⁾		Level 2⁽¹⁾		Level 3		Total
Assets
Cash	$	31	$	-	$	-	$	31
Common collective trusts		-		47		-		47
Cash and cash equivalents total		31		47		-		78
Common collective trusts – domestic		-		161		-		161
Common collective trusts – international		-		407		-		407
Equity securities – domestic		1,325		-		-		1,325
Equity securities – international		210		6		-		216
Private equity		-		-		297		297
Equity securities total		1,535		574		297		2,406
Common collective trusts		-		1,171		-		1,171
Corporate bonds		-		871		10		881
Swaps		-		216		-		216
Government securities		-		49		-		49
Corporate loans		-		26		12		38
Municipal bonds		-		54		-		54
Mortgage backed securities		-		8		-		8
Other fixed income		3		35		-		38
Fixed income total		3		2,430		22		2,455
Public REITs		133		-		-		133
Private real estate		-		17		231		248
Real estate total		133		17		231		381
Total investment assets at fair value	$	1,702	$	3,068	$	550	$	5,320
Liabilities
Swaps	$	-	$	(216)	$	-	$	(216)
Other fixed income		-		(54)		-		(54)
Fixed income total		-		(270)		-		(270)
Total liabilities at fair value	$	-	$	(270)	$	-	$	(270)
Accounts payable, net								(15)
Total net assets							$	5,035

(1) There were no significant transfers in or out of level 1 or 2 investments.

	Investments at Fair Value at January 28, 2012
($ in millions)	Level 1⁽¹⁾		Level 2⁽¹⁾		Level 3		Total
Assets
Cash	$	6	$	-	$	-	$	6
Common collective trusts		-		20		-		20
Cash and cash equivalents total		6		20		-		26
Common collective trusts – domestic		-		363		-		363
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		777		299		2,790
Common collective trusts		-		1,070		-		1,070
Corporate bonds		-		710		9		719
Swaps		-		104		-		104
Municipal bonds		-		80		-		80
Mortgage backed securities		-		42		-		42
Corporate loans		-		10		27		37
Government securities		-		8		-		8
Other fixed income		-		4		-		4
Fixed income total		-		2,028		36		2,064
Public REITs		106		-		-		106
Private real estate		-		44		255		299
Real estate total		106		44		255		405
Total investment assets at fair value	$	1,826	$	2,869	$	590	$	5,285
Liabilities
Swaps	$	-	$	(106)	$	-	$	(106)
Other fixed income		-		(2)		-		(2)
Fixed income total		-		(108)		-		(108)
Total liabilities at fair value	$	-	$	(108)	$	-	$	(108)
Accounts payable, net								(1)
Total net assets							$	5,176

(1) There were no significant transfers in or out of level 1 or 2 investments.

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


	2012
	Private		Real		Corporate		Corporate
($ in millions)	Equity		Estate		Loans		Bonds
Balance, beginning of year	$	299	$	255	$	27	$	9
Transfers, net		-		3		-		-
Realized gains/(loss)		33		-		(1)		(1)
Unrealized (losses)/gains		(5)		7		-		-
Purchases and issuances		47		6		3		6
Sales, maturities and settlements		(77)		(40)		(17)		(4)
Balance, end of year	$	297	$	231	$	12	$	10


	2011
	Private		Real		Corporate		Corporate
($ in millions)	Equity		Estate		Loans		Bonds
Balance, beginning of year	$	291	$	251	$	3	$	1
Transfers, net		-		-		2		9
Realized gains/(loss)		33		10		-		-
Unrealized (losses)/gains		(17)		24		-		(1)
Purchases and issuances		53		12		30		3
Sales, maturities and settlements		(61)		(42)		(8)		(3)
Balance, end of year	$	299	$	255	$	27	$	9

Schedule of Expected Benefit Payments [Table Text Block]


	Primary		Supplemental
($ in millions)	Plan Benefits		Plan Benefits
2013	$	358	$	53
2014		359		49
2015		360		48
2016		362		42
2017		366		18
2018-2022		1,794		87

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


	2012 Target	Plan Assets
Asset Class	Allocation Ranges	2012	2011
Equity	40% -60%	48%	54%
Fixed income	35% -50%	43%	38%
Real estate, cash and other	0% - 10%	9%	8%
Total		100%	100%

Schedule of Defined Contribution Plan Expense [Text Block]


($ in millions)	2012		2011		2010
Savings Plan – 401(k)	$	43	$	52	$	41
Savings Plan – retirement account		11		11		12
Mirror Savings Plan		3		4		3
Total	$	57	$	67	$	56

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

Schedule of Assumptions Used [Table Text Block]

	2012		2011		2010
Expected return on plan assets	7.5%		7.5%		8.4%
Discount rate	4.82%	⁽¹⁾	5.65%	⁽²⁾	5.90%
Salary increase	4.7%		4.7%		4.7%

(1)The discount rate used was revised to 4.25% on the remeasurement date of September 30, 2012 as a result of the curtailments.

(2)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.

Weighted Average Actuarial Assumptions Used To Determine Liability [Member]

Schedule of Assumptions Used [Table Text Block]


	2012	2011	2010
Discount rate	4.19%	4.82%	5.65%
Salary progression rate	4.7%	4.7%	4.7%

Other Postretirement Benefit Plans, Defined Benefit [Member]

Schedule of Pension Plan Expense/(Income)


($ in millions)	2012		2011		2010
Interest cost	$	1	$	1	$	1
Amortization of acruarial loss/(gain)		(1)		(1)		(1)
Amortization of prior service cost/(credit)		(14)		(25)		(25)
Net periodic benefit expense/(income)	$	(14)	$	(25)	$	(25)

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

($ in millions)	2012			2011
Change in APBO
Beginning balance	$	24		$	15
Interest cost		1			1
Participant contributions		14			11
Curtailments		(2)			-
Actuarial (gain)/loss		(3)			9
Benefits (paid)		(16)			(12)
Balance at measurement date	$	18		$	24
Change in fair value of plan assets
Beginning balance	$	-		$	-
Participant contributions		14			11
Company contributions		2			1
Benefits (paid)		(16)			(12)
Balance at measurement date	$	-		$	-
Funded status of the plan	$	(18)	⁽¹⁾	$	(24)	⁽¹⁾

(1) Of the total accrued liability, $2 million for 2012 and $3 million for 2011 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]

($ in millions)	2012			2011
Net loss/(gain)	$	(7)	⁽¹⁾	$	(5)
Prior service cost/(credit)		(23)	⁽¹⁾		(43)
Total	$	(30)		$	(48)

(1) In 2013, approximately $(1) million of net loss/(gain) and $(8) million of prior service cost/(credit) 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]


	Other
	Postretirement
($ in millions)	Benefits
2013	$	2
2014		2
2015		2
2016		2
2017		2
2018-2022		8