Neiman Marcus 2009 Annual Report Download - page 124

Table of Contents
Changes in our obligations pursuant to our Pension Plan, SERP Plan and Postretirement Plan during fiscal years 2010 and
2009 are as follows:
Pension Plan SERP Plan Postretirement Plan
Fiscal years Fiscal years Fiscal years
(in thousands) 2010 2009 2010 2009 2010 2009
Projected benefit obligations:
Beginning of year $ 427,995 $ 354,229 $ 92,152 $ 77,566 $ 17,920 $ 20,336
Service cost 5,687 6,057 680 689 72 92
Interest cost 25,230 24,361 5,399 5,312 1,017 1,343
Actuarial loss 48,041 55,554 9,206 11,001 23 665
Curtailment (16,606) — (8,426) — — —
Benefits paid, net (14,121) (12,206) (2,605) (2,416) (1,118) (1,525)
Plan amendments — — — — — (2,991)
End of year $ 476,226 $ 427,995 $ 96,406 $ 92,152 $ 17,914 $ 17,920
Accumulated benefit obligations:
Beginning of year $ 407,297 $ 336,016 $ 84,254 $ 68,253
End of year $ 476,226 $ 407,297 $ 96,406 $ 84,254
In connection with the actions in the third quarter of fiscal year 2010 to freeze benefits offered under our Pension Plan and
SERP Plan, we recognized a gain of $25.0 million. Of the aggregate gain, $23.5 million was recorded as a reduction of accumulated
other comprehensive loss and $1.5 million was recorded as a curtailment gain.
A summary of expected benefit payments related to our Pension Plan, SERP Plan and Postretirement Plan is as follows:
(in thousands)
Pension
Plan
SERP
Plan
Postretirement
Plan
Fiscal year 2011 $ 15,456 $ 4,719 $ 855
Fiscal year 2012 17,011 5,032 913
Fiscal year 2013 18,623 5,380 961
Fiscal year 2014 20,237 5,757 988
Fiscal year 2015 21,832 5,946 1,020
Fiscal years 2016-2020 $ 130,404 $ 33,167 $ 5,514
Funding Policy and Status. Our policy is to fund the Pension Plan at or above the minimum required by law. In fiscal years
2010 and 2009, we were not required to make contributions to the Pension Plan; however, we made voluntary contributions to our
Pension Plan of $30.0 million in fiscal year 2010 and $15.0 million in fiscal year 2009. As of July 31, 2010, we are not required to
make contributions to the Pension Plan for fiscal year 2011. We will continue to evaluate voluntary contributions to our Pension Plan
based upon the unfunded position of the Pension Plan, our available liquidity and other factors.
The funded status of our Pension Plan, SERP Plan and Postretirement Plan is as follows:
Pension Plan SERP Plan Postretirement Plan
Fiscal years Fiscal years Fiscal years
(in thousands) 2010 2009 2010 2009 2010 2009
Projected benefit obligation $ 476,226 $ 427,995 $ 96,406 $ 92,152 $ 17,914 $ 17,920
Fair value of plan assets 314,466 271,994 — — — —
Accrued obligation $ (161,760)$ (156,001)$ (96,406)$ (92,152)$ (17,914)$ (17,920)
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