Supplemental Executive Retirement Plan

6 Months Ended

Jul. 30, 2011

Supplemental Executive Retirement Plan

Supplemental Executive Retirement Plan

(12)         Supplemental Executive Retirement Plan

The components of net periodic pension cost for the three and six months ended July 30, 2011 and July 31, 2010 were as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 30, 2011		July 31, 2010		July 30, 2011		July 31, 2010
Service cost	$	—	$	69	$	—	$	138
Interest cost	659		558		1,316		1,116
Net amortization of unrecognized prior service cost	242		186		630		622
Net amortization of actuarial losses	545		140		1,134		280
Curtailment expense	1,242		—		1,242		5,819
Net periodic defined benefit pension cost	$	2,688	$	953	$	4,322	$	7,975

As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has and expects to 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 future payments may vary, depending on the future years of service, future annual compensation of the participants and investment performance of the trust. The cash surrender values of the insurance policies were $35.3 million and $32.9 million as of July 30, 2011 and January 29, 2011, 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 an unrealized loss of $1.1 million and an unrealized gain of $0.4 million in other income and expense during the three and six months ended July 30, 2011, respectively, and an unrealized loss of $0.6 million and an unrealized gain of $0.6 million during the three and six months ended July 31, 2010, respectively.

During the three months ended July 30, 2011, the Company recorded a supplemental executive retirement plan curtailment expense of $1.2 million before taxes related to the accelerated amortization of prior service cost resulting from the announced retirement of Maurice Marciano as an employee and executive officer, effective upon the expiration of his current employment agreement on January 28, 2012.  Mr. Marciano will not receive or earn any additional SERP-related benefits in connection with his retirement.  During the three months ended May 1, 2010, the Company recorded a supplemental executive retirement plan curtailment expense of $5.8 million before taxes related to the accelerated amortization of prior service cost resulting from the departure of Carlos Alberini, the Company’s former President and Chief Operating Officer. Mr. Alberini did not receive any termination payments in connection with his departure and, as of the date of his departure, he ceased vesting or accruing any additional benefits under the terms of the SERP. Mr. Marciano’s retirement and Mr. Alberini’s departure resulted in a significant reduction in the total expected remaining years of future service of all SERP participants combined, resulting in the pension curtailment during each of the separate periods.

A reconciliation of the changes in the projected benefit obligation for the fiscal year ended January 29, 2011 and six months ended July 30, 2011 is as follows (in thousands):

	Projected Benefit Obligation
Balance at January 30, 2010	$	37,165
Service cost	69
Interest cost	2,177
Actuarial losses	8,361
Balance at January 29, 2011	$	47,772
Interest cost	1,316
Actuarial Losses	1,609
Balance at July 30, 2011	$	50,697