Foot Locker 2005 Annual Report Download - page 115

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Management Resources Committee sets an annual targeted incentive award under the SERP for each
participant consisting of a percentage of salary and bonus based on the Company’s performance against
target. Achievement of the target causes an 8 percent credit to a participant’s account. The applicable
percentage decreases proportionately to the percentage of the Company’s performance below target,
but not below 4 percent, and increases proportionately to the percentage of the Company’s performance
above target, but not above 12 percent. Participants’ accounts accrue simple interest at the rate of 6
percent annually.
Payment of Retirement Benefits
Table I below provides the estimated annual benefit for each of the named executive officers,
excluding Mr. Hartman, stated as a single life annuity under the Retirement Plan, the Excess Plan, and
the SERP. The estimated benefit projections in this section assume each person’s continued employment
with the Company to his or her normal retirement date (age 65) and that compensation earned during
each year after 2005 to the individual’s normal retirement date remains the same as compensation
earned by him or her during 2005. The projections in Table I are based upon a single life annuity
determined by converting the account balance projected to normal retirement date using a 6 percent
interest rate at the assumed retirement age. The applicable interest rate is the rate specified in Section
417(e)(3)(A)(ii)(II) of the Internal Revenue Code, but not less than 6 percent.
Table II below states the actual benefit for Mr. Hartman under the Retirement Plan and the Excess
Plan paid to him as a lump sum in connection with the termination of his employment in 2005.
Mr. Hartman was not eligible to receive a benefit under the SERP.
Table I. Projections at Normal Retirement Date
Total Annual Benefit Total Annual Benefit
For Years 1-3 For Years 4 and Subsequent
Named Executive Officer Following Retirement(a) Following Retirement(b)
M. D. Serra ....................... $ 950,838 $ 58,259
R. T. Mina ........................ 1,522,027 346,350
G. M. Bahler ...................... 619,006 137,480
J. L. Berk ......................... 694,626 69,862
L. J. Petrucci ...................... 670,455 75,889
(a) The amounts stated in the table above for years 1-3 following retirement include the SERP
benefits, payable as a lump sum spread over a three-year period. The SERP projections include a 4
percent credit to the participants’ accounts for 2005 and assume an annual 8 percent credit going
forward.
(b) Beginning with the fourth year following retirement, the individuals’ annual benefits will not
include any SERP payments and, therefore, their annual benefits for those years will be reduced
accordingly. The amounts stated in this column reflect estimated benefits payable to these
executives from the Retirement Plan and the Excess Plan only.
Table II. Bruce L. Hartman
Actual Total Lump Sum Benefit
Paid from Retirement Plan and
Named Executive Officer Excess Plan
B. L. Hartman ............................... $151,573
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