Benefit Plans

The Company has a retirement plan with a 401(k)-salary deferral feature for eligible employees. Under the terms of the plan, eligible employees could contribute up to the lesser of $18,500 ($24,500 if at least 50 years of age) or 75% of eligible pay. Eligible employees with 1 year of service, who elect to participate in the plan or are auto-enrolled, receive a Company matching contribution. Company matching contributions are calculated on the eligible employee's first 6% of elective deferrals with the first 1% being matched 100% and the next 5% being matched 50%. The Company matching contributions are used to purchase Class A Common Stock of the Company for the benefit of the employee. This stock may be immediately diversified into any of the other funds within the plan at the election of the employee. The terms of the plan provide a two-year vesting schedule for the Company matching contribution portion of the plan.

The Company incurred benefit plan expense of approximately $19 million for fiscal 2018 and $18 million for each of fiscal 2017 and 2016. Benefit plan expenses are included in selling, general and administrative expenses.

The Company has an unfunded, nonqualified defined benefit plan ("Pension Plan") for its officers. The Pension Plan is noncontributory and provides benefits based on years of service and compensation during employment. Pension expense is determined using an actuarial cost method to estimate the total benefits ultimately payable to officers and allocates this cost to service periods. The actuarial assumptions used to calculate pension costs are reviewed annually. The service cost component of net periodic benefit costs is included in selling, general and administrative expenses, and the interest costs and net actuarial loss components are included in other expense in the consolidated statements of income.

The accumulated benefit obligations, change in projected benefit obligation, change in Pension Plan assets, funded status, and reconciliation to amounts recognized in the consolidated balance sheets are as follows:



(in thousands of dollars)	February 2, 2019			February 3, 2018
Change in benefit obligation:
Benefit obligation at beginning of year	$	194,733		$	183,617
Service cost	3,687			3,494
Interest cost	7,131			7,229
Actuarial (gain) loss	(6,294		)	5,701
Benefits paid	(5,392		)	(5,308		)
Benefit obligation at end of year	$	193,865		$	194,733
Change in Pension Plan assets:
Fair value of Pension Plan assets at beginning of year	$	—		$	—
Employer contribution	5,392			5,308
Benefits paid	(5,392		)	(5,308		)
Fair value of Pension Plan assets at end of year	$	—		$	—
Funded status (Pension Plan assets less benefit obligation)	$	(193,865	)	$	(194,733	)
Amounts recognized in the balance sheets:
Accrued benefit liability	$	(193,865	)	$	(194,733	)
Net amount recognized	$	(193,865	)	$	(194,733	)
Pretax amounts recognized in accumulated other comprehensive loss:
Net actuarial loss	$	16,880		$	23,702
Prior service cost	—			—
Net amount recognized	$	16,880		$	23,702

Accumulated benefit obligation at end of year	$	(192,982	)	$	(193,824	)

The accrued benefit liability is included in other liabilities. At February 2, 2019 and February 3, 2018, the current portion of the accrued benefit liability of $5.3 million $5.0 million, respectively, is included in trade accounts payable and accrued expenses.

The discount rate that the Company utilizes for determining future pension obligations is based on the FTSE Above Median Pension Index Curve (formerly the Citigroup Above Median Pension Index Curve) on its annual measurement date as of the end of each fiscal year and is matched to the future expected cash flows of the benefit plans by annual periods. The discount rate increased to 4.0% as of February 2, 2019 from 3.7% as of February 3, 2018. Weighted average assumptions are as follows:



	Fiscal 2018		Fiscal 2017		Fiscal 2016
Discount rate—net periodic pension cost	3.7	%	4.0	%	4.2	%
Discount rate—benefit obligations	4.0	%	3.7	%	4.0	%
Rate of compensation increases	2.0	%	2.0	%	3.0	%

The components of net periodic benefit costs are as follows:



(in thousands of dollars)	Fiscal 2018			Fiscal 2017		Fiscal 2016
Components of net periodic benefit costs:
Service cost	$	3,687		$	3,494	$	3,934
Interest cost	7,131			7,229		7,678
Net actuarial loss	529			—		1,204
Amortization of prior service cost	—			—		—
Plan curtailment gain	—			—		—
Net periodic benefit costs	$	11,347		$	10,723	$	12,816
Other changes in benefit obligations recognized in other comprehensive (income) loss:
Net actuarial (gain) loss	$	(6,823	)	$	5,701	$	(9,668	)
Amortization of prior service cost	—			—		—
Total recognized in other comprehensive (income) loss	$	(6,823	)	$	5,701	$	(9,668	)
Total recognized in net periodic benefit costs and other comprehensive income or loss	$	4,524		$	16,424	$	3,148

The estimated future benefits payments for the nonqualified benefit plan are as follows:



(in thousands of dollars)
Fiscal Year
2019	$	5,391	*
2020	9,363
2021	9,601
2022	10,980
2023	11,409
2024 - 2028	70,409
Total payments for next ten fiscal years	$	117,153

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* The estimated benefit payment for fiscal 2019 also represents the amount the Company expects to contribute to the Pension Plan for fiscal 2019.