Macy's 2011 Annual Report Download - page 64

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-24
10. 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. Effective January 1, 2012, the Pension Plan
was closed to new participants, with limited exceptions. 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. Effective January 2, 2012, the SERP was closed to new participants.
Pension Plan
The following provides a reconciliation of benefit obligations, plan assets, and funded status of the Pension Plan as of
January 28, 2012 and January 29, 2011:
2011 2010
(millions)
Change in projected benefit obligation
Projected benefit obligation, beginning of year ....................................................... $ 3,024 $ 2,879
Service cost .............................................................................................................. 102 99
Interest cost .............................................................................................................. 160 158
Actuarial loss............................................................................................................ 375 103
Benefits paid............................................................................................................. (203)(215)
Projected benefit obligation, end of year ................................................................. $ 3,458 $ 3,024
Changes in plan assets
Fair value of plan assets, beginning of year............................................................. $ 2,804 $ 1,865
Actual return on plan assets ..................................................................................... 93 329
Company contributions ............................................................................................ 375 825
Benefits paid............................................................................................................. (203)(215)
Fair value of plan assets, end of year ....................................................................... $ 3,069 $ 2,804
Funded status at end of year............................................................................................ $ (389) $ (220)
Amounts recognized in the Consolidated Balance Sheets at
January 28, 2012 and January 29, 2011
Other liabilities......................................................................................................... $ (389) $ (220)
Amounts recognized in accumulated other comprehensive (income) loss at
January 28, 2012 and January 29, 2011
Net actuarial loss...................................................................................................... $ 1,558 $ 1,116
Prior service credit ................................................................................................... (1)(2)
$ 1,557 $ 1,114
The accumulated benefit obligation for the Pension Plan was $3,178 million as of January 28, 2012 and $2,791 million as
of January 29, 2011.