RETIREMENT AND BENEFIT PLANS

The Company has five qualified defined benefit pension plans as of May 1, 2016 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 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 The Warnaco Group, Inc. (“Warnaco”) in 2013, 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 was recognized in selling, general and administrative expenses in the Company’s Consolidated Income Statements as follows:



	Pension Plans						SERP Plans					Postretirement Plans
	Thirteen Weeks Ended						Thirteen Weeks Ended					Thirteen Weeks Ended
(In millions)	5/1/16			5/3/15			5/1/16			5/3/15		5/1/16			5/3/15

Service cost, including plan expenses	$	6.5		$	7.1		$	1.3		$	1.3	$	—		$	—
Interest cost	7.5			7.1			1.0			0.9		0.2			0.2
Expected return on plan assets	(9.0		)	(10.8		)	—			—		—			—
Amortization of prior service cost (credit)	0.0			0.0			(0.0		)	(0.0)		(0.1		)	(0.1		)
Total	$	5.0		$	3.4		$	2.3		$	2.2	$	0.1		$	0.1

Currently, the Company expects to make a contribution of approximately $6.4 million to the Pension Plans in 2016. The Company’s actual contributions may differ from planned contributions due to many factors including changes in tax and other benefit laws, or significant differences between expected and actual pension asset performance or interest rates.