Dillard's 2015 Annual Report Download - page 62

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F-20
The accumulated benefit obligations, change in projected benefit obligation, change in Pension Plan assets, funded status,
and reconciliation to amounts recognized in the consolidated balance sheets are as follows:
(in thousands of dollars)
January 30,
2016
January 31,
2015
Change in benefit obligation:
Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 196,922 $ 173,870
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,932 4,396
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,736 7,644
Actuarial (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18,788) 13,850
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,992)(2,838)
Benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 184,810 $ 196,922
Change in Pension Plan assets:
Fair value of Pension Plan assets at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $—$—
Employer contribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,992 2,838
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,992)(2,838)
Fair value of Pension Plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $—$—
Funded status (Pension Plan assets less benefit obligation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(184,810)$ (196,922)
Amounts recognized in the balance sheets:
Accrued benefit liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(184,810)$ (196,922)
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(184,810)$ (196,922)
Pretax amounts recognized in accumulated other comprehensive loss:
Net actuarial loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,669 $ 50,153
Prior service cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ——
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,669 $ 50,153
The estimated amounts that will be amortized from accumulated other comprehensive loss
into net periodic cost in 2016:
Net actuarial loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,204
Prior service cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,204
Accumulated benefit obligation at end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(177,228)$ (188,126)
The accrued benefit liability is included in other liabilities.
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 increased to 4.2% as of January 30, 2016 from
3.5% as of January 31, 2015. Weighted average assumptions are as follows:
Fiscal 2015 Fiscal 2014 Fiscal 2013
Discount rate—net periodic pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5% 4.4% 4.1%
Discount rate—benefit obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2% 3.5% 4.4%
Rate of compensation increases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0% 3.0% 3.0%