Saks Fifth Avenue 2011 Annual Report Download - page 74

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SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share amounts)
Contributions and Estimated Future Benefit Payments
The Company generally funds pension costs currently, subject to regulatory funding requirements. The
Company expects funding requirements of approximately $4,378 in 2012.
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 were sold in an orderly manner as soon as practicable after the contribution was
made.
As of January 28, 2012, the following Pension Plan and SERP benefit payments are expected to be paid:
Benefit
Payments
2012 ........................................................................ $ 18,262
2013 ........................................................................ 17,544
2014 ........................................................................ 17,697
2015 ........................................................................ 16,702
2016 ........................................................................ 16,092
2017 - 2021 .................................................................. 44,913
$ 131,210
NOTE 9: SHAREHOLDERS’ EQUITY
The Company has a share repurchase program that authorizes it to purchase shares of the Company’s common
stock. During August 2011, the Company repurchased and retired an aggregate of 3,537 shares of common
stock at an average price of $8.18 per share and a total cost of $28,932. There were no shares repurchased
during 2010 and 2009. As of January 28, 2012, there were 29,172 shares remaining available for repurchase
under the Company’s share repurchase program.
In July 2009, the Company filed a shelf registration statement with the SEC permitting the Company to issue
securities, in one or more offerings, with a maximum aggregate offering price of $400,000. The shelf
registration statement covers a variety of securities including common stock, preferred stock, warrants, and
debt securities.
Under the shelf registration statement, the Company completed a public offering of approximately 14,925
shares of its common stock in October 2009, at an offering price of $6.70 per share for $95,095 in proceeds, net
of issuance costs. The net proceeds were used to reduce borrowings under the Company’s revolving credit
facility and for general corporate purposes.
In November 2010, the Company contributed 1,755 shares of the Company’s common stock to the Company’s
Pension Plan, in consideration for a credit against future funding obligations, which is considered a non-cash
financing activity. The shares were valued for purposes of the contribution at $19,961 (See Note 8). As required
by the investment policy of the Pension Plan, the shares were sold by the Pension Plan in an orderly manner as
soon as practicable after the contribution was made. The Company filed with the SEC prospectus supplements
to the Company’s existing effective shelf registration statement covering the resale of the shares by the Pension
Plan.
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