Macy's 2010 Annual Report Download - page 77

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
11. Retirement Plans
The Company has a funded defined benefit plan (“Pension Plan”) and a defined contribution plan
(“Retirement 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.
Pension Plan
The following provides a reconciliation of benefit obligations, plan assets, and funded status of the Pension
Plan as of January 29, 2011 and January 30, 2010:
2010 2009
(millions)
Change in projected benefit obligation
Projected benefit obligation, beginning of year ........................ $2,879 $ 2,444
Service cost ................................................... 99 81
Interest cost ................................................... 158 173
Actuarial loss .................................................. 103 401
Benefits paid .................................................. (215) (220)
Projected benefit obligation, end of year ............................. $3,024 $ 2,879
Changes in plan assets
Fair value of plan assets, beginning of year ........................... $1,865 $ 1,438
Actual return on plan assets ....................................... 329 277
Company contributions .......................................... 825 370
Benefits paid .................................................. (215) (220)
Fair value of plan assets, end of year ................................ $2,804 $ 1,865
Funded status at end of year ........................................... $ (220) $(1,014)
Amounts recognized in the Consolidated Balance Sheets at
January 29, 2011 and January 30, 2010
Other liabilities ................................................ $ (220) $(1,014)
Amounts recognized in accumulated other comprehensive (income) loss at
January 29, 2011 and January 30, 2010
Net actuarial loss ............................................... $1,116 $ 1,186
Prior service credit .............................................. (2) (3)
$1,114 $ 1,183
The accumulated benefit obligation for the Pension Plan was $2,791 million as of January 29, 2011 and
$2,657 million as of January 30, 2010.
F-29