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2013 BROWN SHOE COMPANY, INC. FORM 10-K 59
Funded Status
The over-funded status as of February 1, 2014 and February 2, 2013, for pension benefits was $76.3 million and $45.9 million,
respectively. The under-funded status as of February 1, 2014 and February 2, 2013, for other postretirement benefits was
$1.1 million and $3.2 million, respectively.
Amounts recognized in the consolidated balance sheets consist of:
Pension Benefits Other Postretirement Benefits
($ thousands) 2013 2012 2013 2012
Prepaid pension costs (noncurrent asset) . . . . . . . . . . . . . . . . . . . . $ 85,561 $ 54,532 $ – $ –
Accrued benefit liabilities (current liability) . . . . . . . . . . . . . . . . . . . (1,002) (1,191) (105) (311)
Accrued benefit liabilities (noncurrent liability) . . . . . . . . . . . . . . . . . (8,203) (7,430) (1,014) (2,896)
Net amount recognized at end of year . . . . . . . . . . . . . . . . . . . . . . $ 76,356 $ 45,911 $ (1,119) $ (3,207)
The projected benefit obligation, the accumulated benefit obligation, and the fair value of plan assets for pension plans
with a projected benefit obligation in excess of plan assets and for pension plans with an accumulated benefit obligation
in excess of plan assets, which includes only the Company’s SERP, were as follows:
Projected Benefit Accumulated Benefit
Obligation Exceeds Obligation Exceeds
the Fair Value of Plan Assets the Fair Value of Plan Assets
($ thousands) 2013 2012 2013 2012
End of Year
Projected benefit obligation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,205 $ 8,393 $ 9,205 $ 8,393
Accumulated benefit obligation. . . . . . . . . . . . . . . . . . . . . . . . . . 7,180 6,872 7,180 6,872
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . − − − −
The accumulated postretirement benefit obligation exceeds assets for all of the Company’s other postretirement benefit plans.
The amounts in accumulated other comprehensive (income) loss that have not yet been recognized as components of net
periodic benefit (income) cost at February 1, 2014 and February 2, 2013, and the expected amortization of the February 1, 2014
amounts as components of net periodic benefit cost (income) for the year ended January 31, 2015, are as follows:
Pension Benefits Other Postretirement Benefits
($ thousands) 2013 2012 2013 2012
Components of accumulated other comprehensive
(income) loss, net of tax:
Net actuarial (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (12,065) $ 6,475 $ (1,628) $ (587)
Net prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 59 − –
Net transition asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . − – − –
$ (11,954) $ 6,534 $ (1,628) $ (587)
Pension Benefits Other Postretirement Benefits
($ thousands) 2014 2014
Expected amortization, net of tax:
Amortization of net actuarial losses . . . . . . . . . . . . . . . . . . . . . $ 82 $ 208
Amortization of net prior service cost . . . . . . . . . . . . . . . . . . . . 20 −
Amortization of net transition asset . . . . . . . . . . . . . . . . . . . . . − −
$ 102 $ 208
Net Periodic Benefit Cost
Net periodic benefit cost (income) for 2013, 2012, and 2011 for all domestic and Canadian plans included
the following components:
Pension Benefits Other Postretirement Benefits
($ thousands) 2013 2012 2011 2013 2012 2011
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,638 $ 11,523 $ 9,256 $ − $ – $ –
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,241 12,727 12,533 55 148 176
Expected return on assets . . . . . . . . . . . . . . . . . . . . . (24,773) (25,073) (20,741) − – –
Amortization of:
Actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . 954 204 400 (351) (82) (99)
Prior service cost. . . . . . . . . . . . . . . . . . . . . . . . 13 13 (8) − – –
Net transition asset . . . . . . . . . . . . . . . . . . . . . . − (43) (47) − – –
Settlement cost . . . . . . . . . . . . . . . . . . . . . . . . . . . − – 2,100 − – –
Total net periodic benefit cost (income) . . . . . . . . . . . . . $ 73 $ (649) $ 3,493 $ (296) $ 66 $ 77
Weighted-average assumptions used to determine net cost (income):
Pension Benefits Other Postretirement Benefits
2013 2012 2011 2013 2012 2011
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.50% 4.75% 5.75% 4.50% 4.75% 5.75%
Rate of compensation increase . . . . . . . . . . . . . . . . . . 3.50% 3.50% 4.00% N/A N/A N/A
Expected return on plan assets . . . . . . . . . . . . . . . . . . 8.25% 8.25% 8.50% N/A N/A N/A