Macy's 2013 Annual Report Download - page 78

Table of Contents

Net pension costs and other amounts recognized in other comprehensive loss for the supplementary retirement plan included the following actuarially
determined components:




Net Periodic Pension Cost
Service cost $ 6
$ 6
$ 6
Interest cost 32
35
36
Amortization of net actuarial loss 19
17
8
Amortization of prior service credit —
(1)
(1)
57
57
49
Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
Net actuarial (gain) loss (17)
34
90
Prior service cost 8
—
—
Amortization of net actuarial loss (19)
(17)
(8)
Amortization of prior service credit —
1
1
(28)
18
83
Total recognized in net periodic pension cost and
other comprehensive loss $29
$75
$132
The estimated net actuarial loss for the supplementary retirement plan that will be amortized from accumulated other comprehensive loss into net
periodic benefit cost during 2014 is $5 million.
The following weighted average assumptions were used to determine the projected benefit obligations for the supplementary retirement plan at
February 1, 2014 and February 2, 2013:


Discount rate 4.50%
4.15%
Rate of compensation increases N/A
4.90%
The following weighted average assumptions were used to determine net pension costs for the supplementary retirement plan:



Discount rate 4.15%
4.65%
5.40%
Rate of compensation increases 4.90%
4.90%
4.90%
The supplementary retirement 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 supplementary retirement 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.
The Company developed its rate of compensation increase assumption based on recent experience and reflected an estimate of future compensation levels
taking into account general increase levels, seniority, promotions and other factors. The salary increase assumption was used to project employees’ pay in
future years and its impact on the projected benefit obligation for the supplementary retirement plan.
F-32