Supplemental Executive Retirement Plan

The components of net periodic pension cost for the three and nine months ended November 1, 2014 and November 2, 2013 were as follows (in thousands):



	Three Months Ended						Nine Months Ended
	Nov 1, 2014			Nov 2, 2013			Nov 1, 2014			Nov 2, 2013
Interest cost	$	573		$	586		$	1,717		$	1,758
Net amortization of unrecognized prior service (credit) cost	(58		)	(58		)	(174		)	253
Net amortization of actuarial losses	234			277			703			831
Net periodic defined benefit pension cost	$	749		$	805		$	2,246		$	2,842

In July 2013, the Company amended the SERP to limit the amount of eligible wages under the plan that count toward the SERP benefit for the active participant. As a result, the projected benefit obligation and unrecognized prior service cost were reduced by $4.5 million during fiscal 2014.

As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has made, and may continue to make, periodic payments into insurance policies held in a rabbi trust to fund the expected obligations arising under the non-qualified SERP. The amount of any future payments into the insurance policies may vary, depending on any changes to the estimates of final annual compensation levels and investment performance of the trust. The cash surrender values of the insurance policies were $54.4 million and $51.4 million as of November 1, 2014 and February 1, 2014, respectively, and were included in other assets in the Company’s condensed consolidated balance sheets. As a result of changes in the value of the insurance policy investments, the Company recorded unrealized gains of $0.8 million and $3.0 million in other income during the three and nine months ended November 1, 2014, respectively, and unrealized gains of $1.3 million and $3.8 million in other income during the three and nine months ended November 2, 2013, respectively. The projected benefit obligation was $55.6 million and $54.7 million as of November 1, 2014 and February 1, 2014, respectively, and was included in accrued expenses and other long-term liabilities in the Company’s condensed consolidated balance sheets depending on the expected timing of payments. SERP benefit payments of $0.6 million and $0.8 million were made during the three and nine months ended November 1, 2014, respectively.