Employee Benefit Plans

12 Months Ended

Jan. 28, 2012

Compensation and Retirement Disclosure [Abstract]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

Pension Benefits

We maintain the Pension Plan and Supplemental Pension Plan covering certain employees whose hire date was on or before April 1, 1994. Benefits under each plan are based on credited years of service and the employee's compensation during the last five years of employment. The Supplemental Pension Plan is maintained for certain highly compensated executives whose benefits were frozen in the Pension Plan in 1996. The Supplemental Pension Plan is designed to pay benefits in the same amount as if the participants continued to accrue benefits under the Pension Plan. We have no obligation to fund the Supplemental Pension Plan, and all assets and amounts payable under the Supplemental Pension Plan are subject to the claims of our general creditors.

The components of net periodic pension expense were comprised of the following:

	2011			2010			2009
(in thousands)
Service cost - benefits earned in the period	$	2,211		$	2,433		$	2,261
Interest cost on projected benefit obligation	3,496			3,254			3,726
Expected investment return on plan assets	(4,627		)	(4,249		)	(3,172		)
Amortization of prior service cost	(34		)	(34		)	(34		)
Amortization of transition obligation	13			13			13
Amortization of actuarial loss	1,796			2,217			2,691
Settlement loss	298			1,785			175
Net periodic pension cost	$	3,153		$	5,419		$	5,660

In 2011, 2010, and 2009, we incurred pretax non-cash settlement charges of $0.3 million, $1.8 million and $0.2 million, respectively. The settlement charges were caused by lump sum benefit payments made to plan participants in excess of combined annual service cost and interest cost for each year.

The weighted-average assumptions used to determine net periodic pension expense were:

	2011		2010		2009
Discount rate	5.7	%	5.7	%	7.3	%
Rate of increase in compensation levels	3.9	%	3.5	%	3.5	%
Expected long-term rate of return	8.0	%	8.0	%	8.0	%

The weighted-average assumptions used to determine benefit obligations were:

	2011		2010
Discount rate	5.0	%	5.7	%
Rate of increase in compensation levels	3.5	%	3.9	%

The following schedule provides a reconciliation of projected benefit obligations, plan assets, funded status, and amounts recognized for the Pension Plan and Supplemental Pension Plan at January 28, 2012 and January 29, 2011:

	January 28, 2012			January 29, 2011
(In thousands)
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	62,554		$	59,526
Service cost	2,211			2,433
Interest cost	3,496			3,254
Benefits and settlements paid	(6,522		)	(7,135		)
Actuarial loss	8,203			4,476
Projected benefit obligation at end of year	$	69,942		$	62,554
Change in plan assets:
Fair market value at beginning of year	$	59,976		$	56,865
Actual return on plan assets	4,123			9,153
Employer contributions	1,085			1,093
Benefits and settlements paid	(6,522		)	(7,135		)
Fair market value at end of year	$	58,662		$	59,976
Under funded and net amount recognized	$	(11,280	)	$	(2,578	)
Amounts recognized in the consolidated balance sheets consist of:
Noncurrent assets	$	—		$	3,884
Current liabilities	(441		)	(623		)
Noncurrent liabilities	(10,839		)	(5,839		)
Net amount recognized	$	(11,280	)	$	(2,578	)

The following are components of accumulated other comprehensive income and, as such, are not yet reflected in net periodic pension expense:

	2011			2010
(In thousands)
Unrecognized transition obligation	$	(25	)	$	(39	)
Unrecognized past service credit	125			159
Unrecognized actuarial loss	(24,089		)	(17,476		)
Accumulated other comprehensive loss, pretax	$	(23,989	)	$	(17,356	)

We expect to reclassify $2.7 million of the actuarial loss along with immaterial amounts of transition obligation and past service credit into net periodic pension expense during 2012.

The following table sets forth certain information for the Pension Plan and the Supplemental Pension Plan at January 28, 2012 and January 29, 2011:

	Pension Plan				Supplemental Pension Plan
	January 28, 2012		January 29, 2011		January 28, 2012		January 29, 2011
(In thousands)
Projected benefit obligation	$	62,992	$	56,092	$	6,950	$	6,462
Accumulated benefit obligation	55,708		49,127		5,581		4,750
Fair market value of plan assets	$	58,662	$	59,976	$	—	$	—

We elected not to make a discretionary contribution to the Pension Plan in 2011 or in 2010. Our funding policy of the Pension Plan is to make annual contributions based on advice from our actuaries and the evaluation of our cash position, but not less than the minimum required by applicable regulations. Currently, we expect no required contributions to the Pension Plan during 2012, however, discretionary contributions could be made depending upon further analysis.

Using the same assumptions as those used to measure our benefit obligations, the Pension Plan and the Supplemental Pension Plan benefits expected to be paid in each of the following fiscal years are as follows:

Fiscal Year
(In thousands)
2012	$	5,355
2013	5,330
2014	5,418
2015	5,553
2016	5,649
2017 - 2021	$	28,160

Our overall investment strategy is to earn a long-term rate of return sufficient to meet the liability needs of the Pension Plan, within prudent risk constraints.  In order to develop the appropriate asset allocation and investment strategy, an actuarial review of the Pension Plan's expected future distributions was completed.  The strategy provides a well-defined risk management approach designed to reduce risks based on the Pension Plan's funded status.

Assets can generally be considered as filling one of the following roles within the strategy: (1) Liability-hedging assets, which are designed to meet the cash payment needs of the plan's obligation and provide downside protection, primarily invested in intermediate and long maturity investment grade bonds; or (2) Return-seeking assets, which are designed to deliver returns in excess of the Pension Plan's obligation growth rates, with broadly diversified assets including U.S. and non-U.S. equities, real estate, and high yield bonds. The current target allocation is approximately 80% liability-hedging assets and 20% return-seeking assets. Target allocations may change over time due to changes in the plan's funded status, or in response to changes in plan or market conditions. All assets must have readily ascertainable market values and be easily marketable. The portfolio of assets maintains a high degree of liquidity in order to meet benefit payment requirements and to allow responsiveness to evolving Pension Plan and market conditions.

Previously, our pension investment policy allowed ownership of our common shares. At January 28, 2012 and January 29, 2011, the Pension Plan owned zero and 1,081 of our common shares, respectively.

The investment managers have the discretion to invest within sub-classes of assets within the parameters of their investment guidelines. Fixed income managers can adjust duration exposure as deemed appropriate given current or expected market conditions.  Additionally, the investment managers have the authority to invest in financial futures contracts and financial options contracts for the purposes of implementing hedging strategies.  There were no futures contracts owned directly by the Pension Plan at January 28, 2012 and January 29, 2011. The primary benchmark for assessing the effectiveness of the Pension Plan investments is that of the plan's liabilities themselves. Asset class returns are also judged relative to common benchmark indices such as the Russell 3000 and Barclay's Capital Long Credit Bond. Investment results and plan funded status are monitored daily, with a detailed performance review completed on a quarterly basis.

The fair value of our Pension Plan assets at January 28, 2012 and January 29, 2011 by asset category was comprised of the following:

	January 28, 2012								January 29, 2011
(In thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Cash and Cash Equivalents	$	1,196	$	1,196	$	—	$	—	$	1,328	$	1,328	$	—	$	—
Equity Securities
Consumer Discretionary	—		—		—		—		645		645		—		—
Consumer Staples	—		—		—		—		156		156		—		—
Energy	—		—		—		—		249		249		—		—
Financial	—		—		—		—		399		399		—		—
Health Care	—		—		—		—		172		172		—		—
Industrials	—		—		—		—		550		550		—		—
Information Technology	—		—		—		—		565		565		—		—
Materials	—		—		—		—		235		235		—		—
Telecommunication Services	—		—		—		—		73		73		—		—
Utilities	—		—		—		—		305		305		—		—
Mutual Funds (a)
Diversified Emerging Markets	—		—		—		—		2,641		2,641		—		—
International Large Blend	—		—		—		—		2,824		2,824		—		—
Large Blend	—		—		—		—		7,797		7,797		—		—
Large Growth	—		—		—		—		5,857		5,857		—		—
Large Value	—		—		—		—		4,731		4,731		—		—
Mid-Cap Growth	—		—		—		—		2,920		2,920		—		—
Mid-Cap Value	—		—		—		—		1,942		1,942		—		—
Real Estate	—		—		—		—		3,410		3,410		—		—
Small Blend	—		—		—		—		5,466		5,466		—		—
Fixed Income Securities
U.S. Government	9,016		2,423		6,593		—		8,774		3,264		5,510		—
Corporate (b)	6,776		—		6,776		—		8,937		—		8,937		—
Mortgage Bonds	714		—		714		—		—		—		—		—
Common / Collective Trusts
Long Credit	17,728		—		17,728		—		—		—		—		—
Intermediate Credit	11,258		—		11,258		—		—		—		—		—
Global Real Estate	3,065		—		3,065		—		—		—		—		—
High Yield	2,923		—		2,923		—		—		—		—		—
International Equities	2,413		—		2,413		—		—		—		—		—
U.S. Equity Index	2,369		—		2,369		—		—		—		—		—
U.S. Small Cap	1,204		—		1,204		—		—		—		—		—
Total	$	58,662	$	3,619	$	55,043	—		$	59,976	$	45,529	$	14,447	—

(a) Mutual funds are listed by their respective investment strategy as classified by Morningstar Inc.

(b) This category represents investment grade bonds of corporate issuers from diverse industries.

Savings Plans

We have a savings plan with a 401(k) deferral feature and a nonqualified deferred compensation plan with a similar deferral feature for eligible employees. We contribute a matching percentage of employee contributions. Our matching contributions are subject to Internal Revenue Service (“IRS”) regulations. For 2011, 2010, and 2009, we expensed $5.2 million, $5.6 million, and $5.6 million, respectively, related to our matching contributions. In connection with our nonqualified deferred compensation plan, we had liabilities of $20.4 million and $20.2 million at January 28, 2012 and January 29, 2011, respectively.