Nordstrom 2015 Annual Report Download - page 49

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NOTE 6:€€SELF-INSURANCE
Our self-insurance reserves are summarized as follows:
January 30, 2016 January 31, 2015
Workers€ compensation $68 $70
Employee health and welfare 28 23
Other liability 16 16
Total self-insurance reserve $112 $109
Our workers€ compensation policies have a retention per claim of $1 or less and no policy limits.
We are self-insured for the majority of our employee health and welfare coverage and we do not use stop-loss coverage. Participants
contribute to the cost of their coverage through both premiums and out-of-pocket expenses and are subject to certain plan limits and
deductibles.
Our liability policies, encompassing employment practices liability and commercial general liability, have a retention per claim of $3 or less
and a policy limit up to $30 and $150, respectively.
NOTE 7:€€401(k) PLAN
We provide a 401(k) plan for our employees that allows for employee elective contributions and discretionary Company contributions.
Employee elective contributions are funded through voluntary payroll deductions. Our discretionary Company contribution is funded in an
amount determined by our Board of Directors each year. Our expense related to Company contributions totaled $62, $77 and $77 in 2015,
2014 and 2013.
NOTE 8:€€POSTRETIREMENT BENEFITS
We have an unfunded defined benefit Supplemental Executive Retirement Plan (‚SERPƒ), 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 2015,
we had 59 participants in the plan, including 26 officers and select employees eligible for SERP benefits, 32 retirees and one beneficiary. This
plan is non-qualified and does not have a minimum funding requirement.
Benefit Obligations and Funded Status
Our benefit obligation and funded status is as follows:
January 30, 2016 January 31, 2015
Change in benefit obligation:
Benefit obligation at beginning of year $203 $168
Participant service cost 33
Interest cost 78
Benefits paid (6)(6)
Actuarial (gain) loss (26)36
Plan amendment —(6)
Benefit obligation at end of year 181 203
Change in plan assets:
Fair value of plan assets at beginning of year —…
Employer contribution 66
Benefits paid (6)(6)
Fair value of plan assets at end of year — …
Underfunded status at end of year ($181)($203)
The accumulated benefit obligation, which is the present value of benefits, assuming no future compensation changes, was $177 and $197 at
the end of 2015 and 2014. The actuarial gain of $26 in 2015 was driven primarily by increased interest rates, and will be amortized over the
average remaining future service years.
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 49