Express 2012 Annual Report Download - page 78

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The pro forma net income for 2010 eliminates the non-cash deferred tax benefit of $31.8 million as a non-
recurring item related to the Reorganization (see Note 8).
14. Retirement Benefits
The employees of the Company, if eligible, participate in a qualified defined contribution retirement plan (the “Qualified
Plan”) and a non-qualified supplemental retirement plan (the “Non-Qualified Plan”) sponsored by the Company.
Participation in the Company’s Qualified Plan is available to employees who meet certain age and service
requirements. The Qualified Plan permits employees to elect contributions up to the maximum limits allowable
under the IRC. The Company matches employee contributions according to a pre-determined formula and
contributes additional discretionary amounts based on a percentage of the employees’ eligible annual
compensation and years of service. Employee contributions and Company matching contributions vest
immediately. Additional discretionary Company contributions and the related investment earnings are subject to
vesting based on years of service.
Total expense recognized related to the Qualified Plan employer match was $2.7 million, $2.6 million, and $2.7 million in
2012, 2011, and 2010, respectively. In addition, the Company recognized expense of $5.4 million, $5.4 million ,and $6.1
million related to discretionary contributions to the Qualified Plan in 2012, 2011, and 2010, respectively.
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 10 years. Total expense recognized related to the Non-Qualified Plan
was $3.5 million, $3.6 million, and $2.5 million, in 2012, 2011, and 2010, 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, was as follows:
February 2, 2013 January 28, 2012
(in thousands)
Balance, beginning of period .............. $19,170 $14,240
Contributions:
Employee ......................... 2,833 2,487
Company .......................... 2,246 2,379
Interest ............................... 1,534 1,239
Distributions ........................... (1,694) (1,151)
Forfeitures ............................. — (24)
Balance, end of period ................... $24,089 $19,170
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