Macy's 2014 Annual Report Download - page 80

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-33
Net pension costs and other amounts recognized in other comprehensive loss for the supplementary retirement plan
included the following actuarially determined components:
2014 2013 2012
(millions)
Net Periodic Pension Cost
Service cost ....................................................................................... $ — $ 6 $ 6
Interest cost ....................................................................................... 33 32 35
Amortization of net actuarial loss..................................................... 5 19 17
Amortization of prior service credit.................................................. — — (1)
38 57 57
Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
Net actuarial (gain) loss .................................................................... 170 (17) 34
Prior service cost............................................................................... — 8 —
Amortization of net actuarial loss..................................................... (5)(19)(17)
Amortization of prior service credit.................................................. — — 1
165 (28) 18
Total recognized in net periodic pension cost and
other comprehensive loss...................................................................... $ 203 $ 29 $ 75
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 2015 is $10 million.
The following weighted average assumption was used to determine the projected benefit obligations for the
supplementary retirement plan at January 31, 2015 and February 1, 2014:
2014 2013
Discount rate........................................................................................................................ 3.55% 4.50%
The following weighted average assumptions were used to determine net pension costs for the supplementary
retirement plan:
2014 2013 2012
Discount rate ............................................................................................ 4.50% 4.15% 4.65%
Rate of compensation increases ............................................................... N/A 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.