Pension Plans

6 Months Ended

Jul. 28, 2012

Pension Plans

Note 7 – Pension Plans

The Company has a pension plan that covers a select group of management employees (“Payless Plan”), a pension plan that covers certain PLG employees (“PLG Plan”) and a pension plan that covers certain employees in Asia (“Asia Plan”). To calculate pension expense, the Company uses assumptions to estimate the total benefits ultimately payable to each management employee and allocates this cost to service periods.

Payless Plan

The Payless Plan is a nonqualified, supplementary account balance defined benefit plan for a select group of management employees. The plan is an unfunded, noncontributory plan. The components of pension expense for the plan were:

	13 Weeks Ended				26 Weeks Ended
(dollars in millions)	July 28, 2012		July 30, 2011		July 28, 2012		July 30, 2011
Components of pension expense:
Service cost	$	0.2	$	0.2	$	0.4	$	0.4
Interest cost		0.3		0.4		0.7		0.9
Amortization of prior service cost		0.4		0.4		0.8		0.8
Amortization of actuarial loss		0.6		0.4		1.1		0.8
Total	$	1.5	$	1.4	$	3.0	$	2.9

PLG Plan

The PLG Plan is a noncontributory defined benefit pension plan, which no longer accrues future benefits, covering certain eligible PLG associates. The components of pension expense for the plan were:

	13 Weeks Ended						26 Weeks Ended
(dollars in millions)	July 28, 2012			July 30, 2011			July 28, 2012			July 30, 2011
Components of pension expense:
Interest cost	$	1.1		$	1.2		$	2.3		$	2.4
Expected return on net assets		(1.4	)		(1.4	)		(2.8	)		(2.7	)
Amortization of actuarial loss		0.6			0.3			1.3			0.6
Total	$	0.3		$	0.1		$	0.8		$	0.3

Asia Plan

The Asia Plan is a nonqualified, supplementary account balance defined benefit plan for a select group of employees in Asia. The plan is an unfunded, noncontributory plan. The components of pension expense for the plan were not significant for the twenty-six weeks ended July 28, 2012 and July 30, 2011.