RETIREMENT AND BENEFIT PLANS

The Company has five qualified defined benefit pension plans as of November 1, 2015 covering substantially all employees resident in the United States who meet certain age and service requirements. The plans provide monthly benefits upon retirement generally based on career average compensation and years of credited service. Vesting in plan benefits generally occurs after five years of service. The Company refers to these five noncontributory plans as its “Pension Plans.” The Company also acquired as part of the Warnaco acquisition a defined benefit pension plan for certain of Warnaco’s former employees in Europe. This plan was not considered to be material for disclosure purposes for any period presented.

The Company also has for certain members of Tommy Hilfiger’s domestic senior management a supplemental executive retirement plan, which is an unfunded non-qualified supplemental defined benefit pension plan. Such plan is frozen and, as a result, participants do not accrue additional benefits. In addition, the Company has a capital accumulation program, which is an unfunded non-qualified supplemental defined benefit plan. Under the individual participants’ agreements, the participants in this plan will receive a predetermined amount during the 10 years following the attainment of age 65, provided that prior to the termination of employment with the Company, the participant has been in the plan for at least 10 years and has attained age 55. The Company also has for certain employees resident in the United States who meet certain age and service requirements an unfunded non-qualified supplemental defined benefit pension plan, which provides benefits for compensation in excess of Internal Revenue Service earnings limits and requires payments to vested employees upon, or shortly after, employment termination or retirement. The Company refers to these three noncontributory plans as its “SERP Plans.”

The Company also provides certain postretirement health care and life insurance benefits to certain retirees resident in the United States. Retirees contribute to the cost of this plan, which is unfunded. During 2002, the postretirement plan was amended to eliminate the Company contribution, which partially subsidized benefits, for active participants who, as of January 1, 2003, had not attained age 55 and 10 years of service. As a result of the Company’s acquisition of Warnaco, the Company also provides certain postretirement health care and life insurance benefits to certain Warnaco retirees resident in the United States. Retirees contribute to the cost of this plan, which is unfunded. This plan was frozen on January 1, 2014. The Company refers to these two plans as its “Postretirement Plans.”

Net benefit cost related to the Pension Plans was recognized in selling, general and administrative expenses in the Company’s Consolidated Income Statements as follows:



	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
(In millions)	11/1/15			11/2/14			11/1/15			11/2/14

Service cost, including plan expenses	$	7.7		$	4.9		$	23.0		$	14.7
Interest cost	7.0			7.2			20.9			21.4
Expected return on plan assets	(10.7		)	(10.8		)	(31.9		)	(32.6		)
Total	$	4.0		$	1.3		$	12.0		$	3.5

Net benefit cost related to the SERP Plans was recognized in selling, general and administrative expenses in the Company’s Consolidated Income Statements as follows:



	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
(In millions)	11/1/15			11/2/14			11/1/15			11/2/14

Service cost, including plan expenses	$	1.4		$	1.1		$	4.2		$	3.3
Interest cost	0.9			1.1			2.7			3.1
Amortization of prior service credit	(0.0		)	(0.1		)	(0.0		)	(0.1		)
Total	$	2.3		$	2.1		$	6.9		$	6.3

Net benefit cost related to the Postretirement Plans was recognized in selling, general and administrative expenses in the Company’s Consolidated Income Statements as follows:



	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
(In millions)	11/1/15			11/2/14			11/1/15			11/2/14

Interest cost	$	0.2		$	0.2		$	0.5		$	0.6
Amortization of prior service credit	(0.1		)	(0.2		)	(0.3		)	(0.6		)
Total	$	0.1		$	0.0		$	0.2		$	0.0

The Company made contributions of $1.5 million to the Pension Plans in the thirty-nine weeks ended November 1, 2015 and does not expect to make additional contributions to the Pension Plans during the remainder of 2015.