Macy's 2015 Annual Report Download - page 77

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-28
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 are provided through defined contribution plans.
Retirement expenses included the following components:
2015 2014 2013
(millions)
401(k) Qualified Defined Contribution Plan...................................... $ 88 $ 89 $ 24
Non-Qualified Defined Contribution Plan ......................................... 2 2 —
Pension Plan ....................................................................................... (54)(64) 154
Supplementary Retirement Plan......................................................... 41 38 57
$ 77 $ 65 $ 235
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. Beginning January 1, 2014, the Company 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.
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 at January 30, 2016 and January 31, 2015. Expense related
to matching contributions for the qualified plan amounted to $88 million for 2015, $89 million for 2014 and $24 million
for 2013.
At January 30, 2016 and January 31, 2015, the liability under the non-qualified plan, which is reflected in other
liabilities on the Consolidated Balance Sheets, was $13 million and $4 million, respectively. The liability related to the
non-qualified plan matching contribution, which is reflected in accounts payable and accrued liabilities on the Consolidated
Balance Sheets, was $2 million at January 30, 2016 and January 31, 2015. Expense related to matching contributions for
the non-qualified plan amounted to $2 million for 2015 and 2014. In connection with the non-qualified plan, the Company
had mutual fund investments at January 30, 2016 and January 31, 2015 of $13 million and $4 million, respectively, 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, 2015, no additional compensation
is eligible for deferral. The Company has transfered shares to a trust to cover the number estimated for distribution on
account of stock credits currently outstanding. At January 30, 2016 and January 31, 2015, the liability under the plan,
which is reflected in other liabilities on the Consolidated Balance Sheets, was $39 million and $42 million, respectively.
Expense for 2015, 2014 and 2013 was immaterial.