Macy's 2013 Annual Report Download - page 72

Table of Contents

Net pension costs and other amounts recognized in other comprehensive loss for the Pension Plan included the following actuarially determined
components:




Net Periodic Pension Cost
Service cost $112
$117
$102
Interest cost 143
157
160
Expected return on assets (242)
(253)
(248)
Amortization of net actuarial loss 141
141
88
Amortization of prior service credit —
(1)
(1)
154
161
101
Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
Net actuarial (gain) loss (254)
(91)
530
Amortization of net actuarial loss (141)
(141)
(88)
Amortization of prior service credit —
1
1
(395)
(231)
443
Total recognized in net periodic pension cost and
other comprehensive loss $(241)
$(70)
$544
The estimated net actuarial loss for the Pension Plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost
during 2014 is $26 million.
The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan at February 1, 2014 and
February 2, 2013:


Discount rate 4.50%
4.15%
Rate of compensation increases 4.10%
4.50%
The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan:



Discount rate 4.15%
4.65%
5.40%
Expected long-term return on plan assets 7.50%
8.00%
8.00%
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.
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