Saks Fifth Avenue 2010 Annual Report Download - page 77

SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
The following provides a reconciliation of benefit obligations, plan assets and the funded status of the
Pension Plan and SERP as of January 29, 2011 and January 30, 2010:
2010 2009
Change in benefit obligation:
Benefit obligation at beginning of period .................................. $153,570 $ 148,671
Service cost ..................................................... — 70
Interest cost ..................................................... 7,314 8,442
Actuarial loss ................................................... 11,260 11,623
Benefits paid .................................................... (13,383) (15,236)
Benefit obligation at end of period ....................................... $158,761 $ 153,570
Change in plan assets:
Fair value of plan assets at beginning of period ............................. $103,755 $ 95,273
Actual return on plan assets ........................................ 16,340 22,643
Employer contributions ........................................... 21,833 1,075
Benefits paid .................................................... (13,383) (15,236)
Administrative expenses ........................................... — —
Fair value of plan assets at end of period .................................. $128,545 $ 103,755
Pension plans’ funding status:
Accumulated benefit obligation ......................................... $(158,761) $(153,570)
Effect of projected salary increases ...................................... — —
Projected benefit obligation ................................................ (158,761) (153,570)
Fair value of plan assets ................................................... 128,545 103,755
Funded status ........................................................... $ (30,216) $ (49,815)
Amounts recognized in the consolidated balance sheets:
Current liabilities .................................................... $ (1,272) $ (1,168)
Noncurrent liabilities ................................................. (28,944) (48,647)
Net amount recognized .................................................... $ (30,216) $ (49,815)
In November 2010 the Company voluntarily contributed 1,755 newly issued shares of the Company’s
common stock valued at $19,961. The purpose of the voluntary contribution was to strengthen the funded status
of the Pension Plan and reduce the amount of future funding requirements. As required by the investment policy
of the Pension Plan, the shares where sold in an orderly manner as soon as practicable after the contribution was
made. As of January 29, 2011, no plan assets were invested in the Company’s stock.
Significant assumptions used in the determination of the benefit obligation and net periodic benefit expense
are as follows:
2010 2009
Weighted-average assumptions used to determine the Company’s benefit obligation:
Pension Plan:
Discount rate ................................................... 4.8% 5.1%
Measurement date ............................................... 1/29/2011 1/30/2010
SERP
Discount rate ................................................... 5.1% 5.5%
Measurement date ............................................... 1/29/2011 1/30/2010
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