PENSION AND PROFIT SHARING PLANS

12 Months Ended

Mar. 02, 2013

Compensation and Retirement Disclosure [Abstract]

PENSION AND PROFIT SHARING PLANS

NOTE 6 – PENSION AND PROFIT SHARING PLANS

a. Pension Plan - Syms sponsored a defined benefit pension plan for certain eligible employees not covered under a collective bargaining agreement. The pension plan was frozen effective December 31, 2006. As of March 2, 2013 and February 25, 2012, the Company had a recorded liability of $5.5 million and $7.9 million, respectively, within accrued expenses which represents the estimated cost to the Company of terminating the plan in a standard termination, which would require the Company to make additional contributions to the plan so that the assets of the plan are sufficient to satisfy all benefit liabilities. The Company had contemplated other courses of action, including a distress termination, whereby the PBGC takes over the plan. On February 27, 2012, the Company notified the PBGC and other affected parties of its consideration to terminate the plan in a distress termination. However, the estimated total cost associated with a distress termination was approximately $15 million. As a result of the cost savings associated with the standard termination approach, the Company has elected not to terminate the plan in a distress termination and has formally notified the PBGC of this decision. Although the Company has accrued the liability associated with a standard termination, it has not taken any steps to commence such a termination and has made no commitment to do so by a certain date.

Presented below is financial information relating to this plan for the fiscal years indicated:

	March 2, 2013			February 25, 2012
	(in thousands)
CHANGE IN BENEFIT OBLIGATION:
Net benefit obligation - beginning of period	$	11,217		$	10,077
Interest cost		556			600
Actuarial loss		(821	)		(197	)
Gross benefits received		562			737
Net benefit obligation - end of period	$	11,514		$	11,217
CHANGE IN PLAN ASSETS:
Fair value of plan assets - beginning of period	$	8,094		$	7,862
Employer contributions		685			515
Gross benefits paid		(562	)		(577	)
Actual return on plan assets		520			294
Fair value of plan assets - end of period	$	8,737		$	8,094
Funded Status at end of year	$	(2,777	)	$	(3,123	)

Pension expense includes the following components:

	March 2, 2013			February 25, 2012			February 26, 2011
	(in thousands)
COMPONENTS OF NET PERIODIC COST:
Service cost	$	-		$	-		$	-
Interest cost		556			600			584
Loss of assets		(520	)		(294	)		(990	)
Amortization of loss (gain)		204			(174	)		553
Net periodic cost	$	240		$	132		$	147
WEIGHTED-AVERAGE ASSUMPTION USED:
Discount rate		5.0	%		6.1	%		6.1	%
Rate of compensation increase		0.0	%		0.0	%		0.0	%

As of March 2, 2013 the benefits expected to be paid in the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in thousands):

Year	Amount
2013	$	257
2014		437
2015		353
2016		711
2017		384
2018-2022		2,777

The fair values and asset allocation of the Company’s plan assets as of March 2, 2013 and the target allocation for fiscal 2013, by asset category, are presented in the following table (in thousands). All fair values are based on quoted prices in active markets for identical assets (Level 1 in the fair value hierarchy).

				% of Plan
Asset Category	Asset Allocation	Fair Value		Assets
	(in thousands)
Cash and equivalents	0% to 10%	$	347		4	%
Equity Securities	30% to 50%		3,756		43	%
Fixed Income Securities	35% to 55%		4,023		46	%
Alternative Investments	5% to 25%		611		7	%
Total		$	8,737		100	%

The Company adopted SFAS 158 (now ASC Topic 715) for fiscal 2006. Under the provisions of ASC 715, the Company is required to recognize in its consolidated balance sheet the unfunded status of a benefit plan. This is measured as the difference between plan assets at fair value and the projected benefit obligation. For the pension plan, this is equal to the accumulated benefit obligation.

Certain employees covered by collective bargaining agreements participate in multiemployer pension plans. Syms ceased to have an obligation to contribute to these plans in 2012, thereby triggering a complete withdrawal from the plans within the meaning of section 4203 of ERISA. Consequently, the Company is subject to the payment of a withdrawal liability to these pension funds. The additional costs have been estimated at approximately $6.9 million for the multiemployer pension plans. The Company had a recorded liability of $6.1 million and $6.9 million which is reflected in accrued expenses as of March 2, 2013 and February 25, 2012, respectively.

In accordance with minimum funding requirements, the Company paid approximately $0.8 million to the Syms sponsored plan and approximately $0.8 million to the multiemployer plans from September 17, 2012 through March 2, 2013.

b. Profit-Sharing and 401(k) Plan - The Company maintained a profit-sharing plan and 401(k) plan for all employees other than those covered under collective bargaining agreements. In 1995, the Company established a defined contribution 401(k) savings plan for substantially all of its eligible employees. Employees were able to contribute a percentage of their salary to the plan subject to statutory limits. No contributions were made by the Company to this plan in fiscal 2012, fiscal 2011 or fiscal 2010. The 401K Plan was terminated in November 2012 and distributions were made to its participants.