Express 2010 Annual Report Download - page 103

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The Company elected not to fund an additional amount to the Qualified Plan for 2008. Additionally, the
Company elected to suspend the employer matching contribution to the Qualified Plan effective March 6, 2009.
The matching contribution to the Qualified Plan was reinstated for 2010.
Participation in the Non-Qualified Plan is made available to employees who meet certain age, service, job level,
and compensation requirements. The Non-Qualified Plan is an unfunded plan which provides benefits beyond the
IRC limits for qualified defined contribution plans. The plan permits employees to elect contributions up to a
maximum percentage of eligible compensation. The Company matches employee contributions according to a
pre-determined formula and credits additional amounts based on a percentage of the employees’ eligible
compensation and years of service. The Non-Qualified Plan also permits employees to defer additional
compensation up to a maximum amount. The Company does not match the contributions for additional deferred
compensation. Employees’ accounts are credited with interest using a rate determined annually by the Retirement
Plan Committee based on a methodology consistent with historical practices. Employee contributions and the
related interest vest immediately. Company contributions and the related interest are subject to vesting based on
years of service. Employees may elect an in-service distribution for the additional deferred compensation
component only. Employees are not permitted to take a withdrawal from any other portion of the Non-Qualified
Plan while actively employed with the Company. The remaining vested portion of employees’ accounts in the
Non-Qualified Plan will be distributed upon termination of employment in either a lump sum or in equal annual
installments over a specified period of up to ten years. Total expense recognized related to the Non-Qualified
Plan was $2.0 million, $1.3 million, and $2.2 million in 2010, 2009, and 2008, respectively.
The Company elected to account for this cash balance plan based on the participant account balances, excluding
actuarial considerations as permitted by the applicable authoritative guidance.
The annual activity for the Company’s Non-Qualified Plan and the year-end liability, which is included in other
long-term liabilities on the Consolidated Balance Sheets, was as follows:
January 29, 2011 January 30, 2010
(in thousands)
Balance, beginning of period .............. $10,733 $11,119
Contributions:
Employee ......................... 2,798 422
Company .......................... — —
Interest ............................... 960 762
Distributions ........................... (211) (1,541)
Forfeitures ............................. (40) (29)
Balance, end of period ................... $14,240 $10,733
14. Commitments and Contingencies
Express is named as a defendant in a purported class action lawsuit action alleging various California state labor
law violations. The complaint was originally filed on February 18, 2009, and an amended complaint was filed on
March 18, 2009. The amended complaint contains six counts: (1) failure to provide required meal breaks to the
class members and failure to pay the class members for missed meal breaks, including premium payments
required by California law; (2) failure to provide required rest breaks to the class members and failure to pay the
class members for missed rest breaks, including premium payments required by California law; (3) failure to pay
wages in a timely manner to employees who were terminated or quit; (4) failure to pay overtime or premium
payments in a timely manner; (5) failure to provide accurate wage statements; and (6) violations of
Section 17200 of the California Business and Professions Code.
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