NOTE 6: POSTRETIREMENT BENEFITS

We have an unfunded defined benefit Supplemental Executive Retirement Plan (“SERP”), which provides retirement benefits to certain officers and select employees. The SERP has different benefit levels depending on the participant’s role in the Company. At the end of 2017, we had 57 participants in the plan, including 16 officers and select employees eligible for SERP benefits, 40 retirees and one beneficiary. This plan is non-qualified and does not have a minimum funding requirement.

Benefit Obligations and Funded Status

Our benefit obligation and funded status is as follows:



	February 3, 2018			January 28, 2017
Change in benefit obligation:
Benefit obligation at beginning of year		$188			$181
Participant service cost	3			3
Interest cost	7			7
Benefits paid	(8		)	(7		)
Actuarial gain	10			4
Benefit obligation at end of year	200			188
Change in plan assets:
Fair value of plan assets at beginning of year	—			—
Employer contribution	8			7
Benefits paid	(8		)	(7		)
Fair value of plan assets at end of year	—			—
Underfunded status at end of year		($200	)		($188	)

The accumulated benefit obligation, which is the present value of benefits, assuming no future compensation changes, was $197 and $184 at the end of 2017 and 2016.

Amounts recognized as liabilities in the Consolidated Balance Sheets consist of the following:



	February 3, 2018		January 28, 2017
Accrued salaries, wages and related benefits		$9		$8
Other liabilities (noncurrent)	191		180
Net amount recognized		$200		$188

Components of SERP Expense

The components of SERP expense recognized in the Consolidated Statements of Earnings are as follows:



Fiscal year	2017		2016		2015
Participant service cost		$3		$3		$3
Interest cost	7		7		7
Amortization of net loss and other	3		3		11
Total SERP expense		$13		$13		$21

Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following:



	February 3, 2018			January 28, 2017
Accumulated loss		($46	)		($41	)
Prior service credit	2			4
Total accumulated other comprehensive loss		($44	)		($37	)

In 2018, we expect $4 of costs currently in accumulated other comprehensive loss to be recognized as components of SERP expense.

Assumptions

Weighted-average assumptions used to determine our benefit obligation and SERP expense are as follows:



Fiscal year	2017		2016		2015
Assumptions used to determine benefit obligation:
Discount rate	3.95	%	4.31	%	4.55	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%
Assumptions used to determine SERP expense:
Discount rate	4.31	%	4.55	%	3.70	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%

Future Benefit Payments and Contributions

As of February 3, 2018, the expected future benefit payments based upon the assumptions described above and including benefits attributable to estimated future employee service are as follows:



Fiscal year
2018		$9
2019	10
2020	11
2021	11
2022	11
2023 – 2027	61