Nordstrom 2014 Annual Report Download - page 51

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Table of Contents
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share, per option and per unit amounts
Nordstrom, Inc. and subsidiaries 51
Benefit Obligations and Funded Status
Our benefit obligation and funded status is as follows:
January 31, 2015 February 1, 2014
Change in benefit obligation:
Benefit obligation at beginning of year $168 $167
Participant service cost 34
Interest cost 87
Benefits paid (6) (5)
Actuarial loss (gain) 36 (5)
Plan amendment (6) —
Benefit obligation at end of year 203 168
Change in plan assets:
Fair value of plan assets at beginning of year ——
Employer contribution 65
Benefits paid (6) (5)
Fair value of plan assets at end of year — —
Underfunded status at end of year ($203) ($168)
The accumulated benefit obligation, which is the present value of benefits, assuming no future compensation changes, was $197 and $162 at
the end of 2014 and 2013. 2014 includes an actuarial loss of $36 driven by decreased interest rates and updated mortality rates, and will be
amortized over the average remaining future service years.
Amounts recognized as liabilities in the Consolidated Balance Sheets consist of the following:
January 31, 2015 February 1, 2014
Current liabilities $8 $7
Noncurrent liabilities 195 161
Net amount recognized $203 $168
Components of SERP Expense
The components of SERP expense recognized in the Consolidated Statements of Earnings are as follows:
Fiscal year 2014 2013 2012
Participant service cost $3 $4 $4
Interest cost 77 7
Amortization of net loss 68 7
Total SERP expense $16 $19 $18
Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following:
January 31, 2015 February 1, 2014
Accumulated loss ($78) ($47)
Prior service credit (cost) 6(1)
Total accumulated other comprehensive loss ($72) ($48)
In 2015, we expect $10 of costs currently in accumulated other comprehensive loss to be recognized as components of SERP expense.