DSW 2013 Annual Report Download - page 72

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Table of Contents


For the periods presented, other changes in plan assets and benefit obligations recognized in net periodic cost and other comprehensive income loss consist of:
Fiscal years ended
February 1, 2014
February 2, 2013
January 28, 2012
(in thousands)
Net actuarial loss $671
$1,717
$3,444
Loss recognized due to settlements (14,224)
(67)
—
Amortization of net loss (494)
(398)
(296)
Total recognized in other comprehensive (income) loss (14,047)
1,252
3,148
Net periodic benefit cost 14,753
176
354
Total recognized in net periodic benefit cost and other comprehensive income $ 706
$ 1,428
$ 3,502
The expected long-term rate of return was based on historical average annual returns for S&P 500, Russell 2000 and Barclay Capital for 5 years and 10 years
and since inception of the assets. Due to DSW's expectation of plan termination in fiscal 2013, DSW reduced both the discount rate and expected rate of return
to be consistent with the expected short-term nature of the plan as of February 2, 2013. Assumptions used in each year of the actuarial computations to
determine both the liability as of February 2, 2013 and the expense for the fiscal year were as follows:
February 2, 2013
Discount rate 3.7%
Expected long-term rate of return 4.0%
DSW’s investment strategy was to meet the liabilities of the plan as they were due and to maximize the return on invested assets within appropriate risk
tolerances. As a result of the expected termination, DSW shifted out of equity securities. The weighted average allocation of plan assets by category was as
follows for fiscal 2012:
Fiscal year ended
February 2, 2013
Fixed securities 71.3%
Cash and equivalents 28.7%
Total 100.0%
DSW classifies its fair value measurements under the fair value hierarchy discussed in Note 3. The following table presents the activity related to fair value
measurements of pension plan assets as of February 2, 2013:
February 2, 2013
Total
Level 1
Level 2
(in thousands)
Cash and equivalents $5,289
$5,289
—
Fixed income 13,172
—
$ 13,172
Fair market value at end of year $18,461
$5,289
$ 13,172
Other Benefit Plans
DSW 401(k) Plan- DSW sponsors a 401(k) Plan. Eligible employees may contribute up to fifty percent of their compensation to the 401(k) Plan, on a pre-tax
basis, subject to Internal Revenue Service limitations. As of the first day of the month following an employee’s completion of one year of service as defined
under the terms of the 401(k) Plan, DSW matches employee deferrals, 100% on the first 3% of eligible compensation deferred and 50% on the next 2% of
eligible compensation deferred. Additionally, DSW may contribute a discretionary profit sharing amount to the Plan each year but has not for the past three
F- 29
Source: DSW Inc., 10-K, March 27, 2014 Powered by Morningstar® Document Research℠
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