Neiman Marcus 2014 Annual Report Download - page 133

Table of Contents
could occur within the next twelve months as a result of settlements with tax authorities or expiration of statutes of limitation. At this time, we do not believe
such adjustments will have a material impact on our Consolidated Financial Statements.
Subsequent to the Acquisition, Parent and its subsidiaries, including the Company, file U.S. federal income taxes as a consolidated group. The
Company has elected to be treated as a corporation for U.S. federal income tax purposes and all operations of Parent are conducted through Holdings and its
subsidiaries, including the Company. Income taxes are presented as if the Company and its subsidiaries are separate taxpayers from Parent. There are no
differences between the Company's and Parent's current and deferred income taxes.

Description of Benefit Plans. We currently maintain defined contribution plans consisting of a retirement savings plan (RSP) and a defined
contribution supplemental executive retirement plan (Defined Contribution SERP Plan). As of January 1, 2011, employees make contributions to the RSP
and we match an employee’s contribution up to a maximum of 6% of the employee’s compensation subject to statutory limitations for a potential maximum
match of 75% of employee contributions. We also sponsor an unfunded key employee deferred compensation plan, which provides certain employees with
additional benefits. Our aggregate expense related to these plans was approximately $30.5 million in fiscal year 2015, $23.5 million for the thirty-nine
weeks ended August 2, 2014, $7.1 million for the thirteen weeks ended November 2, 2013 and $30.4 million in fiscal year 2013.
In addition, we sponsor a defined benefit pension plan (Pension Plan) and an unfunded supplemental executive retirement plan (SERP Plan) which
provides certain employees additional pension benefits. As of the third quarter of fiscal year 2010, benefits offered to all participants in our Pension Plan and
SERP Plan were frozen. Retirees and active employees hired prior to March 1, 1989 are eligible for certain limited postretirement health care benefits
(Postretirement Plan) if they meet certain service and minimum age requirements.
Obligations for our employee benefit plans, included in other long-term liabilities, are as follows:







Pension Plan
$ 218,612
$ 189,890
SERP Plan
111,157
113,787
Postretirement Plan
9,121
10,945
338,890
314,622
Less: current portion
(6,724)
(6,602)
Long-term portion of benefit obligations
$ 332,166
$ 308,020
As of August 1, 2015, we have $31.5 million (net of taxes of $20.3 million) of adjustments to state such obligations at fair value recorded as
increases to accumulated other comprehensive loss.
Funding Policy and Status. Our policy is to fund the Pension Plan at or above the minimum level required by law. For fiscal years 2015 and 2014,
we were not required to make contributions to the Pension Plan. As of August 1, 2015, we do not believe we will be required to make contributions to the
Pension Plan for fiscal year 2016. 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:





















Projected benefit obligation
$ 612,762
$ 592,918
$ 111,157
$ 113,787
$ 9,121
$ 10,945
Fair value of plan assets
(394,150)
(403,028)
—
—
—
—
Accrued obligation
$ 218,612
$ 189,890
$ 111,157
$ 113,787
$ 9,121
$ 10,945
F-30