Macy's 2013 Annual Report Download - page 81

Table of Contents

Net postretirement benefit costs and other amounts recognized in other comprehensive loss included the following actuarially determined components:




Net Periodic Postretirement Benefit Cost
Service cost $ —
$ —
$ —
Interest cost 10
12
14
Amortization of net actuarial gain (3)
(4)
(5)
Amortization of prior service cost —
—
—
7
8
9
Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
Net actuarial gain (15)
(4)
(3)
Amortization of net actuarial gain 3
4
5
Amortization of prior service cost —
—
—
(12)
—
2
Total recognized in net periodic postretirement benefit cost and other
comprehensive loss $ (5)
$ 8
$11
The estimated net actuarial gain of the postretirement obligations that will be amortized from accumulated other comprehensive loss into net
postretirement benefit cost during 2014 is $4 million.
The following weighted average assumptions were used to determine the accumulated postretirement benefit obligations at February 1, 2014 and
February 2, 2013:


Discount rate 4.50%
4.15%
The following weighted average assumptions were used to determine the net postretirement benefit costs for the postretirement obligations:
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

Discount rate 4.15%
4.65%
5.40%
The postretirement benefit obligation assumptions are evaluated annually and updated as necessary.
The discount rate used to determine the present value of the Company’s accumulated postretirement benefit obligations 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 accumulated postretirement benefit obligations.
The future medical benefits provided by the Company for certain employees are based on a fixed amount per year of service, and the accumulated
postretirement benefit obligation is not affected by increases in health care costs. However, the future medical benefits provided by the Company for certain
other employees are affected by increases in health care costs.
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