Express 2013 Annual Report Download - page 60

Table of Contents
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 $2.6 million, $3.5 million, and $3.6 million, in 2013, 2012, and 2011, 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:



Balance, beginning of period $ 24,089
$19,170
Contributions:
Employee 1,460
2,833
Company 1,758
2,246
Interest 1,307
1,534
Distributions (2,861)
(1,694)
Forfeitures —
—
Balance, end of period $25,753
$ 24,089
In addition, as of February 1, 2014 and February 2, 2013, the Company accrued $0.8 million and $1.3 million, respectively, of contributions related to the
respective current year that will be credited to employee accounts in the following year. These amounts along with the above-mentioned amounts of $25.8
million and $24.1 million for the period ended February 1, 2014 and February 2, 2013, total $26.6 million and $25.4 million, respectively, and are included
in other long-term liabilities on the Consolidated Balance Sheets.
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During 2013 and 2014, the Company received letters from two individuals claiming that it unlawfully collected their zip codes in connection with a retail
purchase made at a Massachusetts store and thereafter used that information to send them unwanted marketing materials. These letters indicate that the
individuals may file suit on behalf of a class of customers whose zip codes were collected and recorded at Company stores in Massachusetts in connection
with credit card purchases, and claims that the Company used the collected zip code data to obtain customers’ addresses for purposes of mailing them
unwanted advertising material. These letters further seek monetary damages pursuant to a claim under Chapter 93A of the General Laws of Massachusetts.
The Company believes the allegations in the letters are without merit and intends to vigorously defend against any claims that are filed in court. Due to the
uncertainties of litigation, it is reasonably possible that the Company may incur a loss related to these potential suits. However, the amount of such loss, if
any, cannot be estimated as of the date these financial statements are issued.
From time to time the Company is subject to other various claims and contingencies arising out of the normal course of business. Management believes that the
ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company's results of operations,
financial condition, or cash flows.
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