Nordstrom 2010 Annual Report Download - page 58

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50
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share, per option and unit amounts
NOTE 6: POSTRETIREMENT BENEFITS
We have an unfunded defined benefit Supplemental Executive Retirement Plan (“SERP”), which provides retirement benefits to certain officers and
select employees. The SERP has different benefit levels depending on the participant’s role in the company. At the end of 2010 and 2009, there were
36 and 35 officers and select employees eligible for SERP benefits. This plan is non-qualified and does not have a minimum funding requirement.
Benefit Obligations and Funded Status
January 29, 2011 January 30, 2010
Change in benefit obligation:
Benefit obligation at beginning of year $102 $85
Participant service cost 2 2
Interest cost 6 6
Benefits paid (4) (4)
Actuarial loss 16 13
Benefit obligation at end of year $122 $102
Change in plan assets:
Fair value of plan assets at beginning of year — —
Employer contribution $4 $4
Benefits paid (4) (4)
Fair value of plan assets at end of year — —
Underfunded status at end of year $(122) $(102)
The accumulated benefit obligation, which is the present value of benefits, assuming no future compensation changes, was $116 and $96 at the end
of 2010 and 2009.
Amounts recognized as liabilities in the consolidated balance sheets consist of the following:
January 29, 2011 January 30, 2010
Current liabilities $5 $5
Noncurrent liabilities 117 97
Net amount recognized $122 $102
Components of SERP Expense
The components of SERP expense recognized in the consolidated statements of earnings are as follows:
Fiscal year 2010 2009 2008
Participant service cost $2 $2 $2
Interest cost 6 6 6
Amortization of net loss 2 - 2
Amortization of prior service cost – - 1
Total SERP expense $10 $8 $11
Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following:
January 29, 2011 January 30, 2010
Accumulated loss $(36) $(22)
Prior service cost (2) (2)
Total accumulated other comprehensive loss $(38) $(24)
In 2011, we expect $4 of costs currently in accumulated other comprehensive loss to be recognized as components of SERP expense.