[X] | ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
A. | Full title of the plan and the address of the plan, if different from that of the issuer named below: |
B. | Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: |
Financial Statements and Supplemental Schedule Limited Brands, Inc. Savings and Retirement Plan Years Ended December 31, 2011 and 2010 With Report of Independent Registered Public Accounting Firm |
December 31, | ||||||||
2011 | 2010 | |||||||
Assets | ||||||||
Investments (at fair value) | $ | 749,243,772 | $ | 705,191,312 | ||||
Wrapper contracts (at fair value) | 17,599 | 655,277 | ||||||
Total investments | 749,261,371 | 705,846,589 | ||||||
Receivable for contributions from employer | 32,331,995 | 31,160,453 | ||||||
Cash and cash equivalents | 2,605,817 | 1,334,181 | ||||||
Due from brokers | 60,668 | 128,505 | ||||||
Other earnings | 89,066 | 297,147 | ||||||
Accrued interest and dividends | 224 | 748 | ||||||
Total assets | 784,349,141 | 738,767,623 | ||||||
Liabilities | ||||||||
Due to brokers | 1,090,380 | 13,887,196 | ||||||
Administrative expenses payable | 376,921 | 507,376 | ||||||
Total liabilities | 1,467,301 | 14,394,572 | ||||||
Net assets reflecting all investments at fair value | 782,881,840 | 724,373,051 | ||||||
Adjustment from fair value to contract value for fully benefit-responsive investment contracts | (2,042,411 | ) | (32,825 | ) | ||||
Net assets available for benefits | $ | 780,839,429 | $ | 724,340,226 | ||||
See accompanying notes. |
Years Ended December 31, | ||||||||
2011 | 2010 | |||||||
Additions: | ||||||||
Investment income: | ||||||||
Net appreciation in fair value of investments | $ | 25,407,780 | $ | 88,343,126 | ||||
Dividends | 15,091,629 | 17,589,589 | ||||||
Earnings from mutual funds | 3,483,763 | 3,222,848 | ||||||
Earnings from investment contracts | 2,753,856 | 2,611,419 | ||||||
Earnings from common collective trusts | 3,432 | 4,365 | ||||||
Other earnings | 532,995 | 768,165 | ||||||
Total investment income | 47,273,455 | 112,539,512 | ||||||
Contributions: | ||||||||
Employer | 51,008,667 | 48,843,351 | ||||||
Participant deferrals | 33,261,685 | 30,643,912 | ||||||
Participant rollovers | 2,444,512 | 1,515,770 | ||||||
Total contributions | 86,714,864 | 81,003,033 | ||||||
Total additions | 133,988,319 | 193,542,545 | ||||||
Deductions: | ||||||||
Distributions to participants | 75,625,953 | 58,254,366 | ||||||
Administrative expenses | 1,863,163 | 2,125,976 | ||||||
Total deductions | 77,489,116 | 60,380,342 | ||||||
Net increase | 56,499,203 | 133,162,203 | ||||||
Net assets available for benefits: | ||||||||
Beginning of year | 724,340,226 | 591,178,023 | ||||||
End of year | $ | 780,839,429 | $ | 724,340,226 | ||||
See accompanying notes. |
Years of Vested Service | Earnings Up To Social Security Wage Base | Earnings Above Social Security Wage Base | ||
Less than 5 years | 3% | 6% | ||
5 or more years | 4% | 8% |
Years of Vested Service | Percentage | |
Less than 2 years | —% | |
2 years | 20% | |
3 years | 40% | |
4 years | 60% | |
5 years | 80% | |
6 or more years | 100% |
December 31, | |||||||
2011 | 2010 | ||||||
Investments at fair value as determined by: | |||||||
Quoted market price: | |||||||
Common stocks: | |||||||
Limited Brands, Inc. | $ | 165,946,356 | $ | 128,902,578 | |||
Common stocks - other | 1,992,419 | 2,572,234 | |||||
Mutual funds: | |||||||
Vanguard Institutional Index Fund | 86,981,647 | 86,880,437 | |||||
Managers Cadence Capital Appreciation Fund | — | 47,463,867 | |||||
Nuveen Winslow Large-Cap Growth Fund | 46,406,047 | — | |||||
Dodge & Cox Stock Fund | 43,709,380 | 45,156,202 | |||||
Artisan International Investor Shares | 36,085,802 | 36,976,537 | |||||
Mutual funds - other | 33,040,301 | 58,405,910 | |||||
Other investments | 23,975 | 27,422 | |||||
Estimated fair value: | |||||||
Synthetic investment contracts: | |||||||
Invesco Short Term Bond Fund | 48,603,231 | — | |||||
Synthetic investment contracts - other | 107,282,445 | 165,874,928 | |||||
Common collective trusts: | |||||||
Schwab Managed Retirement Trust - 2040 | 48,190,995 | 37,733,504 | |||||
Schwab Managed Retirement Trust - 2030 | 47,822,983 | 33,524,294 | |||||
Common collective trusts - other | 47,086,667 | 29,294,090 | |||||
Pimco - Unitized pooled mutual fund | 36,089,123 | 33,034,586 | |||||
Total investments at fair value | $ | 749,261,371 | $ | 705,846,589 |
December 31, | |||||||
2011 | 2010 | ||||||
Net appreciation (depreciation) in fair value of investments determined by: | |||||||
Quoted market price: | |||||||
Common stocks | $ | 39,919,770 | $ | 43,238,203 | |||
Mutual funds | (8,609,995 | ) | 30,256,468 | ||||
Other investments | (16,643 | ) | (14,587 | ) | |||
31,293,132 | 73,480,084 | ||||||
Estimated fair value: | |||||||
Common collective trusts | (6,796,607 | ) | 12,562,978 | ||||
Unitized pooled mutual fund | 911,255 | 2,300,064 | |||||
(5,885,352 | ) | 14,863,042 | |||||
Net appreciation in fair value of investments | $ | 25,407,780 | $ | 88,343,126 |
Level 1 | Quoted market prices in active markets for identical assets or liabilities. |
Level 2 | Observable inputs other than quoted market prices included in Level 1, such as quoted prices of similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant observable inputs. |
Assets at Fair Value as of December 31, 2011 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Target maturity funds: | |||||||||||||||
CCT equity funds (a) | $ | — | $ | 141,202,930 | $ | — | $ | 141,202,930 | |||||||
CCT bond funds (b) | — | 1,897,715 | — | 1,897,715 | |||||||||||
Total target maturity funds | — | 143,100,645 | — | 143,100,645 | |||||||||||
Common stocks: | |||||||||||||||
Retail industry | 166,156,390 | — | — | 166,156,390 | |||||||||||
Other | 1,782,385 | — | — | 1,782,385 | |||||||||||
Total common stocks | 167,938,775 | — | — | 167,938,775 | |||||||||||
Mutual funds: | |||||||||||||||
Equity funds | 120,655,361 | — | — | 120,655,361 | |||||||||||
Index funds | 87,000,866 | — | — | 87,000,866 | |||||||||||
International funds | 36,328,505 | — | — | 36,328,505 | |||||||||||
Fixed income funds | 1,825,696 | — | — | 1,825,696 | |||||||||||
Other funds | 412,729 | — | — | 412,729 | |||||||||||
Total mutual funds | 246,223,157 | — | — | 246,223,157 | |||||||||||
Synthetic investment contracts: | |||||||||||||||
CCT bond funds (b) | — | 151,307,345 | — | 151,307,345 | |||||||||||
Mutual Fund - Fixed Income | 4,560,732 | — | — | 4,560,732 | |||||||||||
Wrapper contracts | — | — | 17,599 | 17,599 | |||||||||||
Total synthetic investment contracts | 4,560,732 | 151,307,345 | 17,599 | 155,885,676 | |||||||||||
Unitized pooled mutual bond fund (d) | — | 36,089,123 | — | 36,089,123 | |||||||||||
Other investments | 23,995 | — | — | 23,995 | |||||||||||
Total assets at fair value | $ | 418,746,659 | $ | 330,497,113 | $ | 17,599 | $ | 749,261,371 |
Assets at Fair Value as of December 31, 2010 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
CCT equity funds (a) | $ | — | $ | 100,551,888 | $ | — | $ | 100,551,888 | |||||||
Common stocks: | |||||||||||||||
Retail industry | 129,147,969 | — | — | 129,147,969 | |||||||||||
Other | 2,326,843 | — | — | 2,326,843 | |||||||||||
Total common stocks | 131,474,812 | — | — | 131,474,812 | |||||||||||
Mutual funds: | |||||||||||||||
Balanced funds | 27,460,766 | — | — | 27,460,766 | |||||||||||
Equity funds | 207,905,086 | — | — | 207,905,086 | |||||||||||
International funds | 37,234,012 | — | — | 37,234,012 | |||||||||||
Other funds | 2,283,089 | — | — | 2,283,089 | |||||||||||
Total mutual funds | 274,882,953 | — | — | 274,882,953 | |||||||||||
Synthetic investment contracts: | |||||||||||||||
CCT bond funds (b) | — | 24,111,697 | — | 24,111,697 | |||||||||||
Corporate bonds | — | 34,123,884 | — | 34,123,884 | |||||||||||
CCT fixed income funds (c) | — | 24,170,533 | — | 24,170,533 | |||||||||||
Government obligations | 8,324,407 | 73,933,028 | 556,102 | 82,813,537 | |||||||||||
Wrapper contracts | — | — | 655,277 | 655,277 | |||||||||||
Total synthetic investment contracts | 8,324,407 | 156,339,142 | 1,211,379 | 165,874,928 | |||||||||||
Unitized pooled mutual bond fund (d) | — | 33,034,586 | — | 33,034,586 | |||||||||||
Other investments | 27,422 | — | — | 27,422 | |||||||||||
Total assets at fair value | $ | 414,709,594 | $ | 289,925,616 | $ | 1,211,379 | $ | 705,846,589 |
(a) | This category includes funds designed to provide single investment portfolios that adjust over time to meet the changing risk and return objectives of investors based on retirement date. The funds are diversified across several asset classes, including, but not limited, to Large Cap Equities, Mid Cap Equities, Small Cap Equities, International Equities, Fixed Income and Stable Value. |
Level 3 Assets Year Ended December 31, 2011 | ||||||||||||
Government Obligations | Wrapper Contracts | Total | ||||||||||
Balance at December 31, 2010 | $ | 556,102 | $ | 655,277 | $ | 1,211,379 | ||||||
Total net unrealized losses included in net investment income in the Statements of Changes in Net Assets Available for Benefits | — | (637,678 | ) | (637,678 | ) | |||||||
Total net realized losses included in net investment income in the Statements of Changes in Net Assets Available for Benefits | (1,149 | ) | — | (1,149 | ) | |||||||
Total net unrealized gains not included in net investment income in the Statements of Changes in Net Assets Available for Benefits | — | — | — | |||||||||
Net purchases | — | — | — | |||||||||
Net sales | (554,953 | ) | — | (554,953 | ) | |||||||
Net transfers out of Level 3 | — | — | — | |||||||||
Balance at December 31, 2011 | $ | — | $ | 17,599 | $ | 17,599 | ||||||
The amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | — | $ | (148,895 | ) | $ | (148,895 | ) |
Level 3 Assets Year Ended December 31, 2010 | |||||||||||||||
Corporate Bonds | Government Obligations | Wrapper Contracts | Total | ||||||||||||
Balance at December 31, 2009 | $ | 513,259 | — | $ | 541,035 | $ | 1,054,294 | ||||||||
Total net unrealized gains included in net investment income in the Statements of Changes in Net Assets Available for Benefits | 566,569 | — | — | 566,569 | |||||||||||
Total net realized losses included in net investment income in the Statements of Changes in Net Assets Available for Benefits | (444,650 | ) | — | — | (444,650 | ) | |||||||||
Total net unrealized gains not included in net investment income in the Statements of Changes in Net Assets Available for Benefits | — | 114,242 | 114,242 | ||||||||||||
Net purchases | (277,736 | ) | 556,102 | — | 278,366 | ||||||||||
Net transfers out of Level 3 | (357,442 | ) | — | — | (357,442 | ) | |||||||||
Balance at December 31, 2010 | $ | — | $ | 556,102 | $ | 655,277 | $ | 1,211,379 | |||||||
The amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | — | $ | — | $ | — | $ | — |
• | The level of market interest rates; |
• | The amount and timing of participant contributions, transfers and withdrawals in/out of the wrapper contract; |
• | The investment returns generated by the fixed income investments that back the wrapper contract; and |
• | The duration of the underlying fixed income investments backing the wrapper. |
December 31, | |||||||
2011 | 2010 | ||||||
Net assets available for benefits per the financial statements | $ | 780,839,429 | $ | 724,340,226 | |||
Contract value above (below) fair value | 2,042,411 | 32,825 | |||||
Amounts allocated to withdrawing participants | (110,319 | ) | (764,887 | ) | |||
Net assets available for benefits per Form 5500 | $ | 782,771,521 | $ | 723,608,164 |
Year Ended December 31, 2011 | ||||
Total additions per the financial statements | $ | 133,988,319 | ||
Adjustments from contract value to fair value | 2,009,586 | |||
Total income per Form 5500 | $ | 135,997,905 |
Year Ended December 31, 2011 | ||||
Benefits paid to participants per the financial statements | $ | 75,625,953 | ||
Amounts allocated to withdrawing participants: | ||||
At December 31, 2011 | 110,319 | |||
At December 31, 2010 | (764,887 | ) | ||
Benefits paid to participants per Form 5500 | $ | 74,971,385 |
Limited Brands, Inc. Savings and Retirement Plan | ||||||||
EIN #31-1048997 Plan #002 | ||||||||
Schedule H, Line 4i | ||||||||
Schedule of Assets (Held at End of Year) | ||||||||
December 31, 2011 | ||||||||
(a) | (b) | (c) | (e) | |||||
Identity of Issue, Borrower, Lessor, or Similar Party | Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value | Current Value | ||||||
* | Limited Brands, Inc. | Common Stock - 4,122,673 - shares | $ | 165,946,356 | ||||
Schwab Managed Retirement Trust 2040 Class III | Common Collective Trust - 2,735,017 - shares | 48,190,995 | ||||||
Schwab Managed Retirement Trust 2030 Class III | Common Collective Trust - 2,695,771 - shares | 47,822,983 | ||||||
Schwab Managed Retirement Trust 2020 Class III | Common Collective Trust - 1,716,690 - shares | 29,870,399 | ||||||
Schwab Managed Retirement Trust 2010 Class III | Common Collective Trust - 607,414 - shares | 10,247,074 | ||||||
Schwab Managed Retirement Trust 2050 Class III | Common Collective Trust - 546,496 - shares | 5,071,479 | ||||||
Schwab Managed Retirement Trust Income Class III | Common Collective Trust - 140,467 - shares | 1,897,715 | ||||||
Vanguard Institutional Index Fund | Mutual Fund - 756,099 - shares | 86,981,647 | ||||||
Nuveen Winslow Large-Cap Growth Fund | Mutual Fund - 1,541,729 - shares | 46,406,047 | ||||||
Dodge & Cox Stock Fund | Mutual Fund - 430,041 - shares | 43,709,380 | ||||||
Artisan International Investor Shares | Mutual Fund - 1,819,758 - units | 36,085,802 | ||||||
Hartford Midcap Holdings Fund | Mutual Fund - 1,124,155 - shares | 26,721,161 | ||||||
Prudential Jennison Small Company Fund | Mutual Fund - 38,907 - shares | 809,256 | ||||||
RidgeWorth Mid-Cap Value Equity Fund | Mutual Fund - 143,287 - shares | 1,407,079 | ||||||
RidgeWorth Small Cap Value Equity Fund | Mutual Fund - 89,818 - shares | 1,111,952 | ||||||
* | Wells Fargo Heritage Money Market Fund | Mutual Fund - 1,502,613 - shares | 1,502,613 | |||||
PIMCO Total Return Fund | Collective Fund - 2,387,580 - shares | 36,089,123 | ||||||
Self Directed Brokerage Accounts | 3,504,637 | |||||||
Pooled Stable Value Fund | ||||||||
Dreyfus Cash Management Fund | Mutual Fund - 4,560,732 - shares | 4,560,732 | ||||||
Synthetic Contracts and Underlying Investments | ||||||||
Aviva Life and Annuity Co | Contract Wrapper - 0.85% | — | ||||||
Natixis Financial Product | Contract Wrapper - 1.48% | — | ||||||
ING Life & Annuity - A | Contract Wrapper - 1.58% | — | ||||||
ING Life & Annuity - B | Contract Wrapper - 1.49% | — | ||||||
ING Life & Annuity - C | Contract Wrapper - 2.91% | — | ||||||
Monumental | Contract Wrapper - 1.79% | 17,599 | ||||||
Pacific Life Insurance | Contract Wrapper - 1.95% | — | ||||||
Prudential Ins Co | Contract Wrapper - 2.02% | — | ||||||
Invesco Short Term Bond Fund | Collective Fund - 35,544,843 - shares | 48,603,231 | ||||||
Note: Column (d) is not applicable for participant-directed investments. | ||||||||
* Represents a party-in-interest |
Limited Brands, Inc. Savings and Retirement Plan | ||||||||
EIN #31-1048997 Plan #002 | ||||||||
Schedule H, Line 4i | ||||||||
Schedule of Assets (Held at End of Year) | ||||||||
December 31, 2011 | ||||||||
(a) | (b) | (c) | (e) | |||||
Identity of Issue, Borrower, Lessor, or Similar Party | Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value | Current Value | ||||||
Aviva 1-5 Year Government Fund | Collective Fund - 22,443,183 - shares | 22,769,821 | ||||||
Jennison intermediate Government/Credit Fund | Collective Fund - 12,495,696 - shares | 21,661,288 | ||||||
ING Short Duration Bond Fund | Collective Fund - 15,353,156 - shares | 15,796,847 | ||||||
Jennison 1-5 Year Government/Credit Fund | Collective Fund - 11,034,096 - shares | 11,394,666 | ||||||
Invesco Multi Manager Core Fixed Income Fund | Collective Fund - 5,352,417 - shares | 8,119,906 | ||||||
Aviva Core Fixed Income Fund | Collective Fund - 5,525,333 - shares | 5,755,204 | ||||||
BlackRock Core Fixed Income Fund | Collective Fund - 1,931,705 - shares | 2,947,396 | ||||||
PIMCO Core Fixed Income Fund | Collective Fund - 1,792,328 - shares | 2,939,777 | ||||||
Invesco Core Fixed Income Fund | Collective Fund - 1,868,694 - shares | 2,935,679 | ||||||
GSAM Core Fixed Income Fund | Collective Fund - 2,092,216 - shares | 2,934,751 | ||||||
PIMCO Intermediate Government/Credit Fund | Collective Fund - 789,945 - shares | 1,820,981 | ||||||
BlackRock Intermediate Government/Credit Fund | Collective Fund - 1,157,119 - shares | 1,815,866 | ||||||
Invesco Intermediate Government/Credit Fund | Collective Fund - 983,181 - shares | 1,811,929 | ||||||
$ | 749,261,371 | |||||||
Note: Column (d) is not applicable for participant-directed investments. | ||||||||
* Represents a party-in-interest |
Limited Brands, Inc. Savings and Retirement Plan | ||
Date: June 26, 2012 | By: | /s/ EZRA D. SINGER |
Ezra D. Singer | ||
Senior Vice President, | ||
Talent Management & Total Rewards |
Exhibit No. | Description | |
23.1 | Consent of Ernst & Young LLP |
/s/ Ernst & Young LLP |
Columbus, Ohio |
June 26, 2012 |
2`I(%1J($54(%$*<2`P(#`@,"!R9R!"5"`S,S`N-S(@-C`W+C
2`I(%1J($54(%$*<2`P M(#`@,"!R9R!"5"`U,3(N-S4@-C`W+C
'!R97-S("D@5&H@150@ M40I"5"`O1C(@,3`N,#`@5&8@150*<2`P(#`@,"!R9R!"5"`U,"XP,"`U.34N M-S`@5&0@*&%N("D@5&H@150@40IQ(#`@,"`P(')G($)4(#8Q+CDT(#4Y-2XW M,"!49"`H;W!I;FEO;B`I(%1J($54(%$*<2`P(#`@,"!R9R!"5"`Y-2XP,"`U M.34N-S`@5&0@*&]N("D@5&H@150@40IQ(#`@,"`P(')G($)4(#$P-RXU,"`U M.34N-S`@5&0@*'1H97-E("D@5&H@150@40IQ(#`@,"`P(')G($)4(#$S,"XU M-"`U.34N-S`@5&0@*&9I;F%N8VEA;"`I(%1J($54(%$*<2`P(#`@,"!R9R!" M5"`Q-C@N,#(@-3DU+C
'!R97-S:6YG("D@5&H@150@40IQ
M(#`@,"`P(')G($)4(#,R-RXW."`U,C,N-S`@5&0@*&%N("D@5&H@150@40IQ
M(#`@,"`P(')G($)4(#,S.2XQ,B`U,C,N-S`@5&0@*&]P:6YI;VX@*2!4:B!%
M5"!1"G$@,"`P(#`@ 6EN9R`I(%1J($54(%$*0E0@+T8R(#$P
M+C`P(%1F($54"G$@,"`P(#`@ 2`I(%1J($54
M(%$*<2`P(#`@,"!R9R!"5"`Q,C$N-38@,S4U+C 2!B96YE9FET+7)E 2`I(%1J($54
M(%$*<2`P(#`@,"!R9R!"5"`Q,3$N,#4@-C4X+C$P(%1D("AO9B`I(%1J($54
M(%$*<2`P(#`@,"!R9R!"5"`Q,C$N.38@-C4X+C$P(%1D("AT:&4@*2!4:B!%
M5"!1"G$@,"`P(#`@ E/"4Q_2F#Z4P+3GQ*8
M_I3`]"<%IC\I,/U)@>E/"DQ_4F#Z$P+3GQ"8_H3`]"<$IC\N,/TG`M-_(C#]
M)P+3?R(P_3&!Z8\)3'],8/IC`M-_+##]QP+3?RPP_<<"TQ\5F/ZHP/1'!:;_
M6ZHP+3'Q68_JC`]$<%IC\B,/T1@>F/"$Q_1ZPP+3'Q:8_K#`](<%IC\D
M,/TA@>D/"4Q_2Z0P+3'Q28_J#`]`<%IO](8/H#`M,?$)C^@,#T!P2F/R`P
M_0&!Z0\(3/^1P/0'!*8_(##]`8'I#PA,OU]@^OT"T^\7F'Z_P/3[!*;?)S#]
M/H'I]PE,_^%_(TSO^!],_Q],_V^#Z=?\W\+T)_]?PO0[_@?3_S_`=`+BDN$*
MI\M.1J/);+'8[0:3R6(QFHS&@S^[B6^SPV:UVJP6J\UDLED=-AL*9E`GDHG'
MFLP<\('N1CN/,)E0LN+#;#!;;#;Q^Z#Y8#`:YQ=IC^019DSI`@>8M=U@LX,7
M%+A9!*QL<]@L3I[>@FD-%F88')N=S)(5BYK:OS\:3>#+R&63U6@V62`I(%1J($54(%$*<2`P(#`@,"!R9R!"5"`S-S8N
M.#8@,S0U+C$P(%1D("AA;F0@*2!4:B!%5"!1"G$@,"`P(#`@_`]!-EX
M\.U"FL"XO_,8])?!XS:T^U$V<%^L*R./4YM3;-'6YMKGAE9DF\\5\J)_V,?1!\=)5K%M/_]4Y_,%G;Z@
M']