Dillard's 2012 Annual Report Download - page 74

Download and view the complete annual report

Please find page 74 of the 2012 Dillard's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

Notes to Consolidated Financial Statements (Continued)
8. Benefit Plans (Continued)
Pretax amounts recognized in accumulated other comprehensive loss for fiscal 2012 consisted of
net actuarial losses and prior service cost of $50.5 million and $0.1 million, respectively. Pretax amounts
recognized in accumulated other comprehensive loss for fiscal 2011 consisted of net actuarial losses and
prior service cost of $60.3 million and $0.7 million, respectively. Pretax amounts recognized in
accumulated other comprehensive loss for fiscal 2010 consisted of net actuarial losses and prior service
cost of $26.6 million and $1.3 million, respectively.
The accrued benefit liability is included in other liabilities.
The estimated actuarial loss and prior service cost for the nonqualified defined benefit plans that
will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the
next fiscal year approximate $4.5 million and $0.1 million, respectively.
The discount rate that the Company utilizes for determining future pension obligations is based on
the Citigroup Above Median Pension Index Curve on its annual measurement date as of the end of
each fiscal year and is matched to the future expected cash flows of the benefit plans by annual
periods. The discount rate had decreased to 4.0% as of February 2, 2013 from 4.3% as of January 28,
2012. Weighted average assumptions are as follows:
Fiscal 2012 Fiscal 2011 Fiscal 2010
Discount rate—net periodic pension cost ....... 4.3% 5.5% 5.7%
Discount rate—benefit obligations ............ 4.0% 4.3% 5.5%
Rate of compensation increases .............. 3.0% 3.0% 3.0%
The components of net periodic benefit costs are as follows:
(in thousands of dollars) Fiscal 2012 Fiscal 2011 Fiscal 2010
Components of net periodic benefit costs:
Service cost ........................... $ 3,267 $ 3,326 $ 2,886
Interest cost .......................... 7,294 7,200 7,269
Net actuarial loss ...................... 5,132 1,967 2,376
Amortization of prior service cost ........... 626 626 626
Net periodic benefit costs ................ $16,319 $13,119 $13,157
The estimated future benefits payments for the nonqualified benefit plan are as follows:
(in thousands of dollars)
Fiscal Year
2013 .................................................... $ 4,820
2014 .................................................... 4,362
2015 .................................................... 7,163
2016 .................................................... 6,967
2017 .................................................... 8,012
2018 - 2022 ............................................... 45,566
Total payments for next ten fiscal years ........................... $76,890
F-24