Macy's 2013 Annual Report Download - page 71

Table of Contents
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 
The Company has a funded defined benefit plan (“Pension Plan”) and defined contribution plans (“Retirement Plans”) 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. Effective January 1, 2012, the Pension Plan was closed to new
participants, with limited exceptions, and effective January 2, 2012, the SERP was closed to new participants.
In February 2013, the Company announced changes to the Pension Plan and SERP whereby eligible employees no longer earn future pension service
credits after December 31, 2013, with limited exceptions. All retirement benefits attributable to service in subsequent periods will be provided through defined
contribution plans. As a result of these changes, the Company recognized reductions in the projected benefit obligations of the Pension Plan of $254 million
and the SERP of $42 million as of February 2, 2013.
Pension Plan
The following provides a reconciliation of benefit obligations, plan assets, and funded status of the Pension Plan as of February 1, 2014 and
February 2, 2013:
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
Change in projected benefit obligation
Projected benefit obligation, beginning of year $3,555
$ 3,458
Service cost 112
117
Interest cost 143
157
Actuarial (gain) loss (117)
283
Benefits paid (220)
(206)
Actuarial gain due to curtailment —
(254)
Projected benefit obligation, end of year 3,473
3,555
Changes in plan assets
Fair value of plan assets, beginning of year 3,387
3,069
Actual return on plan assets 379
374
Company contributions —
150
Benefits paid (220)
(206)
Fair value of plan assets, end of year 3,546
3,387
Funded status at end of year $73
$ (168)
Amounts recognized in the Consolidated Balance Sheets at
February 1, 2014 and February 2, 2013
Other assets $73
$ —
Other liabilities —
(168)
$73
$ (168)
Amounts recognized in accumulated other comprehensive loss at
February 1, 2014 and February 2, 2013
Net actuarial loss $ 931
$1,326
The accumulated benefit obligation for the Pension Plan was $3,453 million as of February 1, 2014 and $3,496 million as of February 2, 2013.
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