Famous Footwear 2012 Annual Report Download - page 63

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2012 BROWN SHOE COMPANY, INC. FORM 10-K 61
Funded Status
The over-funded status as of February 2, 2013 and January 28, 2012, for pension benefits was $45.9 million and $59.8 million,
respectively. The under-funded status as of February 2, 2013 and January 28, 2012, for other postretirement benefits was
$3.2 million and $3.5 million, respectively.
Amounts recognized in the consolidated balance sheets consist of:
Pension Benefits Other Postretirement Benefits
($ thousands) 2012 2011 2012 2011
Prepaid pension costs (noncurrent asset) . . . . . . . . . . . . . . . . . . . . $ 54,532 $ 68,054 $ – $ –
Accrued benefit liabilities (current liability) . . . . . . . . . . . . . . . . . . . (1,191) (226) (311) (322)
Accrued benefit liabilities (noncurrent liability) . . . . . . . . . . . . . . . . . (7,430) (7,988) (2,896) (3,163)
Net amount recognized at end of year . . . . . . . . . . . . . . . . . . . . . . $ 45,911 $ 59,840 $ (3,207) $ (3,485)
The projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets for pension plans
with a projected benefit obligation in excess of plan assets and for pension plans with an accumulated benefit obligation
in excess of plan assets, which includes only the Company’s SERP, were as follows:
Projected Benefit Accumulated Benefit
Obligation Exceeds Obligation Exceeds
the Fair Value of Plan Assets the Fair Value of Plan Assets
($ thousands) 2012 2011 2012 2011
End of Year
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,393 $ 7,997 $ 8,393 $ 7,997
Accumulated benefit obligation. . . . . . . . . . . . . . . . . . . . . . . . . . 6,872 6,208 6,872 6,208
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . − − − −
The accumulated postretirement benefit obligation exceeds assets for all of the Company’s other postretirement benefit plans.
The amounts in accumulated other comprehensive loss (income) that have not yet been recognized as components of net
periodic benefit (income) cost at February 2, 2013 and January 28, 2012, and the expected amortization of the February 2, 2013
amounts as components of net periodic benefit (income) cost for the year ended February 1, 2014, are as follows:
Pension Benefits Other Postretirement Benefits
($ thousands) 2012 2011 2012 2011
Components of accumulated other comprehensive
comprehensive loss (income), net of tax:
Net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,475 $ (2,658) $ (587) $ (492)
Net prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 67 − −
Net transition asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . − (31) − −
$ 6,534 $ (2,622) $ (587) $ (492)
Pension Benefits Other Postretirement Benefits
($ thousands) 2013 2013
Expected amortization, net of tax:
Amortization of net actuarial losses. . . . . . . . . . . . . . . . . . . . . . $539 $49
Amortization of net prior service cost . . . . . . . . . . . . . . . . . . . . 8 −
Amortization of net transition asset . . . . . . . . . . . . . . . . . . . . . . – −
$547 $49
Net Periodic Benefit Cost
Net periodic benefit (income) cost for 2012, 2011 and 2010 for all domestic and Canadian plans included the
following components:
Pension Benefits Other Postretirement Benefits
($ thousands) 2012 2011 2010 2012 2011 2010
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,523 $ 9,256 $ 7,826 $ – $ – $ –
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,727 12,533 12,102 148 176 186
Expected return on assets . . . . . . . . . . . . . . . . . . . . . (25,073) (20,741) (20,183) – – –
Amortization of:
Actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . 204 400 172 (82) (99) (112)
Prior service cost. . . . . . . . . . . . . . . . . . . . . . . . 13 (8) (8) – – –
Net transition asset . . . . . . . . . . . . . . . . . . . . . . (43) (47) (46) – – –
Settlement cost . . . . . . . . . . . . . . . . . . . . . . . . . . . – 2,100 878 – – –
Total net periodic benefit (income) cost . . . . . . . . . . . . . $ (649) $ 3,493 $ 741 $ 66 $ 77 $ 74
Weighted-average assumptions used to determine net (income) cost:
Pension Benefits Other Postretirement Benefits
2012 2011 2010 2012 2011 2010
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.75% 5.75% 6.00% 4.75% 5.75% 6.00%
Rate of compensation increase . . . . . . . . . . . . . . . . . . 3.50% 4.00% 4.25% N/A N/A N/A
Expected return on plan assets . . . . . . . . . . . . . . . . . . 8.25% 8.50% 8.50% N/A N/A N/A