Macy's 2014 Annual Report Download - page 72

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-25
9. Retirement Plans
The Company has defined contribution plans which cover substantially all employees who work 1,000 hours or more
in a year. In addition, the Company has a funded defined benefit plan (“Pension Plan”) and 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.
Defined Contribution Plans
The Company has a qualified plan that permits participating associates to defer eligible compensation up to the
maximum limits allowable under the Internal Revenue Code and beginning January 1, 2014, also has a non-qualified plan
which permits participating associates to defer eligible compensation above the limits of the qualified plan. The Company
contributes a matching percentage of employee contributions under both the qualified and non-qualified plans. Effective
January 1, 2014, the Company's matching contribution to the qualified plan was enhanced for all participating employees,
with limited exceptions. Prior to January 1, 2014, the matching contribution rate under the qualified plan was higher for
those employees not eligible for the Pension Plan than for employees eligible for the Pension Plan.
At January 31, 2015 and February 1, 2014, the liability related to the qualified plan matching contribution, which is
reflected in accounts payable and accrued liabilities on the Consolidated Balance Sheets, was $97 million and $25 million,
respectively. Expense related to matching contributions for the qualified plan amounted to $89 million for 2014, $24
million for 2013 and $14 million for 2012.
At January 31, 2015, the liability under the non-qualified plan, which is reflected in other liabilities on the
Consolidated Balance Sheets, was $4 million and the liability related to the non-qualified matching contribution, which is
reflected in accounts payable and accrued liabilities on the Consolidated Balance Sheets, was $2 million. Expense related
to matching contributions for the non-qualified plan amounted to $2 million for 2014. In connection with the non-qualified
plan, the Company has mutual fund investments of $4 million, which are included in prepaid expenses and other current
assets on the Consolidated Balance Sheets.
The Company has an additional deferred compensation plan wherein eligible executives elected to defer a portion of
their compensation each year as either stock credits or cash credits. Effective January 1, 2014, no additional compensation
will be deferred, with limited exceptions. The Company has transfered shares to a trust to cover the number estimated for
distribution on account of stock credits currently outstanding. At January 31, 2015 and February 1, 2014, the liability under
the plan, which is reflected in other liabilities on the Consolidated Balance Sheets, was $42 million and $44 million,
respectively. Expense for 2014, 2013 and 2012 was immaterial.