Famous Footwear 2011 Annual Report Download - page 60

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58 2011 BROWN SHOE COMPANY, INC. FORM 10-K
Funded Status
The over-funded status as of January 28, 2012 and January 29, 2011, for pension benefi ts was $59.8 million and $50.5 million,
respectively. The under-funded status as of January 28, 2012 and January 29, 2011, for other postretirement benefi ts was
$3.5 million and $3.2 million, respectively.
Amounts recognized in the consolidated balance sheets consist of:
Pension Benefi ts Other Postretirement Benefi ts
($ thousands) 2011 2010 2011 2010
Prepaid pension costs (noncurrent asset) . . . . . . . . . . . . . . . . . . . . $ 68,054 $ 63,250 $ – $ −
Accrued benefi t liabilities (current liability) . . . . . . . . . . . . . . . . . . . (226) (7,219) (322) (327)
Accrued benefi t liabilities (noncurrent liability) . . . . . . . . . . . . . . . . . (7,988) (5,556) (3,163) (2,903)
Net amount recognized at end of year . . . . . . . . . . . . . . . . . . . . . . $ 59,840 $ 50,475 $ (3,485) $ (3,230)
The projected benefi t obligation, the accumulated benefi t obligation and the fair value of plan assets for pension plans
with a projected benefi t obligation in excess of plan assets and for pension plans with an accumulated benefi t obligation in
excess of plan assets, which includes only the Company’s SERP, were as follows:
Projected Benefi t Accumulated Benefi t
Obligation Exceeds Obligation Exceeds
the Fair Value of Plan Assets the Fair Value of Plan Assets
($ thousands) 2011 2010 2011 2010
End of Year
Projected benefi t obligation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,997 $ 12,710 $ 7,997 $ 12,710
Accumulated benefi t obligation. . . . . . . . . . . . . . . . . . . . . . . . . . 6,208 11,080 6,208 11,080
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – − – −
The accumulated postretirement benefi t obligation exceeds assets for all of the Company’s other postretirement benefi t plans.
The amounts in accumulated other comprehensive (income) loss that have not yet been recognized as components of net
periodic benefi ts cost (income) at January 28, 2012 and January 29, 2011, and the expected amortization of the January 28, 2012
amounts as components of net periodic benefi t cost (income) for the year ended February 2, 2013, are as follows:
Pension Benefi ts Other Postretirement Benefi ts
($ thousands) 2011 2010 2011 2010
Components of accumulated other
comprehensive (income) loss, net of tax:
Net actuarial (gain) loss. . . . . . . . . . . . . . . . . . . . . . . . . . $ (2,658) $ 669 $ (492) $ (745)
Net prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 (32) – −
Net transition asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31) (65) – −
$ (2,622) $ 572 $ (492) $ (745)
Pension Benefi ts Other Postretirement Benefi ts
($ thousands) 2012 2012
Expected amortization, net of tax:
Amortization of net actuarial losses (gains) . . . . . . . . . . . . . . . $ 195 $ (31)
Amortization of net prior service cost . . . . . . . . . . . . . . . . . . 6 −
Amortization of net transition asset. . . . . . . . . . . . . . . . . . . . 26 −
$ 227 $ (31)
Net Periodic Benefi t Cost
Net periodic benefi t cost (income) for 2011, 2010 and 2009 for all domestic and Canadian plans included the
following components:
Pension Benefi ts Other Postretirement Benefi ts
($ thousands) 2011 2010 2009 2011 2010 2009
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,256 $ 7,826 $ 6,790 $ – $ – $ –
Interest cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,533 12,102 11,573 176 186 219
Expected return on assets . . . . . . . . . . . . . . . . . . . . . (20,741) (20,183) (19,494) – – –
Amortization of:
Actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . 400 172 120 (99) (112) (85)
Prior service cost. . . . . . . . . . . . . . . . . . . . . . . . (8) (8) (12) – – –
Net transition asset . . . . . . . . . . . . . . . . . . . . . . (47) (46) (137) – – –
Settlement cost. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,100 878 127 – – –
Total net periodic benefi t cost (income) . . . . . . . . . . . . . $ 3,493 $ 741 $ (1,033) $ 77 $ 74 $ 134
Weighted-average assumptions used to determine net cost (income):
Pension Benefi ts Other Postretirement Benefi ts
2011 2010 2009 2011 2010 2009
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.75% 6.00% 6.50% 5.75% 6.00% 6.50%
Rate of compensation increase . . . . . . . . . . . . . . . . . . 4.00% 4.25% 4.25% N/A N/A N/A
Expected return on plan assets . . . . . . . . . . . . . . . . . . 8.50% 8.50% 8.50% N/A N/A N/A