Macy's 2012 Annual Report Download - page 73
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-26
Net pension costs and other amounts recognized in other comprehensive loss for the Pension Plan included the following
actuarially determined components:
2012 2011 2010
(millions)
Net Periodic Pension Cost
Service cost.............................................................................................. $ 117 $ 102 $ 99
Interest cost.............................................................................................. 157 160 158
Expected return on assets......................................................................... (253)(248)(218)
Amortization of net actuarial loss............................................................ 141 88 61
Amortization of prior service credit......................................................... (1)(1)(1)
161 101 99
Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
Net actuarial (gain) loss ........................................................................... (91) 530 (9)
Amortization of net actuarial loss............................................................ (141)(88)(61)
Amortization of prior service credit......................................................... 1 1 1
(231) 443 (69)
Total recognized in net periodic pension cost and
other comprehensive loss ............................................................................ $(70) $ 544 $ 30
The estimated net actuarial loss for the Pension Plan that will be amortized from accumulated other comprehensive loss
into net periodic benefit cost during 2013 is $142 million.
The following weighted average assumptions were used to determine the projected benefit obligations for the Pension
Plan at February 2, 2013 and January 28, 2012:
2012 2011
Discount rate............................................................................................................................... 4.15% 4.65%
Rate of compensation increases.................................................................................................. 4.50% 4.50%
The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan:
2012 2011 2010
Discount rate ................................................................................................... 4.65% 5.40% 5.65%
Expected long-term return on plan assets ....................................................... 8.00% 8.00% 8.75%
Rate of compensation increases...................................................................... 4.50% 4.50% 4.50%
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 maturities. Each year’s expected
future benefit payments are discounted to their present value at the appropriate yield curve rate, thereby generating the overall
discount rate for the projected benefit obligation.