Macy's 2009 Annual Report Download - page 81

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Net pension costs and other amounts recognized in other comprehensive loss for the Pension Plan included
the following actuarially determined components:
2009 2008 2007
(millions)
Net Periodic Pension Cost
Service cost ......................................................... $ 81 $ 97 $104
Interest cost ......................................................... 173 159 157
Expected return on assets .............................................. (187) (192) (196)
Amortization of net actuarial loss ........................................ – 5 23
Amortization of prior service credit ...................................... (1) – (1)
66 69 87
Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Income
Net actuarial loss ..................................................... 311 604 40
Amortization of net actuarial loss ........................................ – (5) (23)
Amortization of prior service credit ......................................1–1
312 599 18
Total recognized in net periodic pension cost and other comprehensive income ........ $378 $668 $105
The estimated net actuarial loss and prior service credit for the Pension Plan that will be amortized from
accumulated other comprehensive loss (income) into net periodic benefit cost during 2010 are $60 million and
$(1) million, respectively.
As permitted under ASC Subtopic 715-30, “Defined Benefit Plans – Pension,” the amortization of any prior
service cost is determined using a straight-line amortization of the cost over the average remaining service period
of employees expected to receive the benefits under the Pension Plan.
The following weighted average assumptions were used to determine the projected benefit obligations for
the Pension Plan at January 30, 2010 and January 31, 2009:
2009 2008
Discount rate ........................................................... 5.65% 7.45%
Rate of compensation increases ............................................ 4.50% 5.40%
The following weighted average assumptions were used to determine the net periodic pension cost for the
Pension Plan:
2009 2008 2007
Discount rate prior to change in measurement date ................................ – – 5.85%
Discount rate subsequent to change in measurement date ........................... 7.45% 6.25% 5.95%
Expected long-term return on plan assets ....................................... 8.75% 8.75% 8.75%
Rate of compensation increases ............................................... 5.40% 5.40% 5.40%
The Pension Plan’s assumptions are evaluated annually and updated as necessary.
The discount rate used to determine the present value of the projected benefit obligation for the Pension
Plan is based on a yield curve constructed from a portfolio of high quality corporate debt securities with various
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