Macy's 2009 Annual Report Download - page 80

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
14. Retirement Plans
The Company has a funded defined benefit plan (“Pension Plan”) and a defined contribution plan (“Savings
Plan”) which cover substantially all employees who work 1,000 hours or more in a year. In addition, the
Company has an unfunded defined benefit supplementary retirement plan (“SERP”), which provides benefits, for
certain employees, in excess of qualified plan limitations. For 2009, 2008 and 2007, retirement expense for these
plans totaled $119 million, $151 million and $170 million, respectively.
Effective February 4, 2007, the Company adopted the measurement date provision of Statement of Financial
Accounting Standards No. 158, “Employers’ Accounting for Defined Benefit and Other Postretirement Plans –
an amendment of FASB Statements No. 87, 88, 106 and 132(R) (subsequently included in ASC Subtopic 715-30,
“Defined Benefit Plans – Pension”). This required a change in the Company’s measurement date, which was
previously December 31, to be the date of the Company’s fiscal year-end. As a result, the Company recorded a
$6 million decrease to accumulated equity, a $29 million decrease to accumulated other comprehensive loss, a
$37 million decrease to other liabilities and a $14 million increase to deferred income taxes.
Pension Plan
The following provides a reconciliation of benefit obligations, plan assets, and funded status of the Pension
Plan as of January 30, 2010 and January 31, 2009:
2009 2008
(millions)
Change in projected benefit obligation
Projected benefit obligation, beginning of year ....................... $2,444 $ 2,656
Service cost ................................................... 81 97
Interest cost ................................................... 173 159
Actuarial (gain) loss ............................................ 401 (221)
Benefits paid .................................................. (220) (247)
Projected benefit obligation, end of year ............................ $2,879 $ 2,444
Changes in plan assets
Fair value of plan assets, beginning of year .......................... $1,438 $ 2,319
Actual return on plan assets ...................................... 277 (634)
Company contributions .......................................... 370 –
Benefits paid .................................................. (220) (247)
Fair value of plan assets, end of year ............................... $1,865 $ 1,438
Funded status at end of year .......................................... $(1,014) $(1,006)
Amounts recognized in the Consolidated Balance Sheets at
January 30, 2010 and January 31, 2009
Other liabilities ................................................ $(1,014) $(1,006)
Amounts recognized in accumulated other comprehensive loss at
January 30, 2010 and January 31, 2009
Net actuarial loss .............................................. $1,186 $ 875
Prior service credit ............................................. (3) (4)
$ 1,183 $ 871
The accumulated benefit obligation for the Pension Plan was $2,657 million as of January 30, 2010 and
$2,261 million as of January 31, 2009.
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