Nordstrom 2011 Annual Report Download - page 51

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Nordstrom, Inc. and subsidiaries 51
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share, per option and unit amounts
Components of SERP Expense
The components of SERP expense recognized in the consolidated statements of earnings are as follows:
Fiscal year 2011 2010 2009
Participant service cost $3 $2 $2
Interest cost 7 6 6
Amortization of net loss 4 2 -
Total SERP expense $14 $10 $8
Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following:
January 28, 2012 January 29, 2011
Accumulated loss $(58)
$(36)
Prior service cost (1) (2)
Total accumulated other comprehensive loss $(59) $(38)
In 2012, we expect $7 of costs currently in accumulated other comprehensive loss to be recognized as components of SERP expense.
Assumptions
Weighted-average assumptions used to determine our benefit obligation and SERP expense are as follows:
Fiscal year 2011 2010 2009
Assumptions used to determine benefit obligation:
Discount rate 4.50% 5.60% 5.95%
Rate of compensation increase 3.00% 3.00% 3.00%
Assumptions used to determine SERP expense:
Discount rate 5.60% 5.95% 6.95%
Rate of compensation increase 3.00% 3.00% 3.00%
Future Benefit Payments and Contributions
As of January 28, 2012, the expected future benefit payments based upon the assumptions described above and including benefits attributable
to estimated future employee service are as follows:
Fiscal year
2012 $6
2013 6
2014 7
2015 8
2016 8
2017-2021 48
In 2012, we expect to make contributions and pay benefits of $6.