DSW 2011 Annual Report Download - page 73

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Table of Contents DSW INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The amount of securities outstanding related to stock-
based compensation as of the periods presented that were not included in the computation of
dilutive earnings per share because the effect would be anti-dilutive was as follows:
Merger Sub is responsible for the Filene’
s Basement defined benefit pension plan (the "plan") that RVI assumed as part of its sale of Filene's
Basement in fiscal 2009. Benefits were frozen as of April 30, 2000. The Company’
s funding policy is to contribute annually the amount required
to meet ERISA ("Employee Retirement Income Security Act") funding standards. The Company uses a January 31 measurement date for the plan.
On December 1, 2011, DSW adopted a plan amendment to terminate the plan with a proposed termination date of March 22, 2012
. Prior to the
pension plan being fully funded, certain regulatory approvals and participant settlement elections need to be obtained. As the timing of receiving
the regulatory approval is uncertain and may not occur in fiscal 2012, DSW has continued to classify the pension liability in other non-
current
liabilities.
To satisfy the liability under the plan, DSW will issue lump-
sum payments at participant election and purchase non participating group annuity
contracts to cover any participants that do not elect lump-
sum distributions. The purchase price of the contracts will be funded from the assets of
the plan at the date of termination, and any shortfall will be covered by a payment by the Company. The transaction should result in the transfer
and settlement of the pension benefit obligation, thus relieving the Company of any responsibility for the pension plan obligations. Upon the
transfer of the plan obligations and assets described above, DSW expects to record a charge to earnings in the quarter that termination is
completed.
The following provides a reconciliation of projected benefit obligations, plan assets and funded status of the plan for periods presented:
F-29
Fiscal years ended
January 28, 2012
January 29, 2011
January 30, 2010
Diluted earnings (loss) per share from continuing operations, net of
noncontrolling interests
$
4.68
$
0.52
$
(4.04
)
Diluted earnings (loss) per share, net of noncontrolling interests
$
4.54
$
0.82
$
(1.23
)
Fiscal years ended
January 28, 2012
January 29, 2011
January 30, 2010
(in thousands)
RVI SARs
3
52
53
RVI stock options
7
64
81
DSW stock options
243
Total potentially dilutive instruments
253
116
134
10.
PENSION BENEFIT PLAN