NOTE 7: POSTRETIREMENT BENEFITS

We have an unfunded defined benefit Supplemental Executive Retirement Plan ("SERP"), which provides retirement benefits to certain officers and select employees. The SERP has different benefit levels depending on the participant's role in the company. At the end of 2011, we had 61 participants in the plan, including 36 officers and select employees eligible for SERP benefits, 24 retirees and 1 beneficiary. This plan is non-qualified and does not have a minimum funding requirement.

Benefit Obligations and Funded Status


	January 28, 2012			January 29, 2011
Change in benefit obligation:
Benefit obligation at beginning of year		$122			$102
Participant service cost		3			2
Interest cost		7			6
Benefits paid		(5	)		(4	)
Actuarial loss		25			16
Benefit obligation at end of year		$152			$122
Change in plan assets:
Fair value of plan assets at beginning of year		–			–
Employer contribution		$5			$4
Benefits paid		(5	)		(4	)
Fair value of plan assets at end of year		–			–
Underfunded status at end of year		$(152	)		$(122	)

The accumulated benefit obligation, which is the present value of benefits, assuming no future compensation changes, was $144 and $116 at the end of 2011 and 2010.

Amounts recognized as liabilities in the consolidated balance sheets consist of the following:


	January 28, 2012		January 29, 2011
Current liabilities		$6		$5
Noncurrent liabilities		146		117
Net amount recognized		$152		$122

Components of SERP Expense

The components of SERP expense recognized in the consolidated statements of earnings are as follows:

		00000000000		00000000000		00000000000
Fiscal year	2011		2010		2009
Participant service cost		$3		$2		$2
Interest cost		7		6		6
Amortization of net loss		4		2		–
Total SERP expense		$14		$10		$8

Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following:


	January 28, 2012			January 29, 2011
Accumulated loss		$(58	)		$(36	)
Prior service cost		(1	)		(2	)
Total accumulated other comprehensive loss		$(59	)		$(38	)

In 2012, we expect $7 of costs currently in accumulated other comprehensive loss to be recognized as components of SERP expense.

Assumptions

Weighted-average assumptions used to determine our benefit obligation and SERP expense are as follows:

00000000000

Fiscal year

2011

2010

2009

Assumptions used to determine benefit obligation:

Discount rate

4.50%

5.60%

5.95%

Rate of compensation increase

3.00%

3.00%

Assumptions used to determine SERP expense:

Discount rate

5.60%

5.95%

6.95%

Rate of compensation increase

3.00%

3.00%

Future Benefit Payments and Contributions

As of January 28, 2012, the expected future benefit payments based upon the assumptions described above and including benefits attributable to estimated future employee service are as follows:


Fiscal year
2012			$6
2013			6
2014			7
2015			8
2016			8
2017–2021			48

In 2012, we expect to make contributions and pay benefits of $6.