9. EMPLOYEE BENEFIT PLANS

The Company provides eligible employees with retirement benefits under a 401(k) salary reduction and employer contribution plan (the "Plan"). Employees become eligible to receive company contributions after they reach the age of 18, complete one year of service and have worked 1,000 hours in their first year of service or, if not, in any calendar year thereafter. Participants are eligible to receive a company matching contribution if they have contributed match eligible pre-tax dollars to the Plan and are employed on the last day of the Plan year with exceptions for retirement, death and disability. The company matching contributions consist of two parts: a match based on an employee's years of service and a profit sharing match. Under the Plan provisions, the majority of eligible employees are permitted to contribute up to 50% of their compensation to the Plan. Employees are permitted to begin non-matching contributions to the Plan after three months of service in a benefit status position. Employees are permitted to begin match-eligible contributions to the Plan after they complete one year of service and have worked 1,000 hours in their first year of service or, if not, in any calendar year thereafter. Employees are automatically enrolled to contribute 3% of pay unless the employee actively modifies or declines the election. Company matching contributions, not to exceed 6% of eligible employees' compensation, are at the discretion of the Company. Company matching contributions under the Plan become fully vested for eligible employees after three years of service in which the employee works 1,000 hours annually.

The Plan also allows for a company retirement contribution. Participants are eligible to receive a company retirement contribution in the Plan if they have worked 1,000 hours in the calendar year and are employed on the last day of the Plan year. Company retirement contributions made during 2008 and beyond become fully vested after three years of service.

The Company's 2014, 2013 and 2012 expense under the Plan was $1,571, $1,546 and $3,925, respectively. Pursuant to the provisions of the Plan, the Company determined that only a company matching contribution would be made for 2014, 2013 and 2012.

The Company provides a non-qualified defined benefit supplementary pension plan to certain former key executives. Former employees became 100% vested in the plan benefits after achieving a specific age as defined in each employee's agreement. The benefits from this unfunded plan are paid upon retirement, providing the employee is age 60.

In addition, as a result of an acquisition, the Company assumed a liability for a non-qualified defined benefit supplementary pension plan. The benefits from this unfunded plan are paid upon retirement, provided that the participant is age 65 or older. All participants in this plan are fully vested.

As part of an acquisition, the Company acquired a qualified defined benefit pension plan and an unfunded non-qualified defined benefit supplemental pension plan. In connection with the acquisition, all future benefit accruals in the qualified defined benefit plan were frozen. The qualified defined benefit pension plan is also closed to new participants.

The Company also acquired an unfunded postretirement benefit plan as part of an acquisition. The unfunded postretirement plan provides medical and life insurance benefits. The medical portion of the plan is contributory, and contains cost-sharing features such as deductibles and co-insurance. The life insurance benefits of this plan are noncontributory.

Benefit obligations, fair value of plan assets and funded status of the plans are as follows:

	Pension Benefits						Medical and Life Insurance Benefits
	2014			2013			2014			2013
Change in benefit obligation:
Benefit obligation at beginning of year	$	198,360		$	219,135		$	2,322		$	3,493
Interest cost		7,990			7,993			89			122
Participant contributions		—			—			82			100
Benefits paid		(17,997	)		(15,520	)		(272	)		(329	)
Actuarial loss (gain)		32,184			(13,248	)		(49	)		(1,064	)

Benefit obligation at end of year		220,537			198,360			2,172			2,322

Change in the fair value of plan assets:
Plan assets at beginning of year		147,994			137,577			—			—
Actual return on plan assets		8,882			12,707			—			—
Company contributions		12,945			13,230			190			229
Participant contributions		—			—			82			100
Benefits paid		(17,997	)		(15,520	)		(272	)		(329	)

Plan assets at end of year		151,824			147,994			—			—

Funded status	$	(68,713	)	$	(50,366	)	$	(2,172	)	$	(2,322	)

Amounts recognized in the consolidated balance sheets consist of:

	Pension Benefits						Medical and Life Insurance Benefits
	2014			2013			2014			2013
Accrued expenses	$	(701	)	$	(808	)	$	(355	)	$	(411	)
Other long-term liabilities		(68,012	)		(49,558	)		(1,817	)		(1,911	)

Net amount recognized	$	(68,713	)	$	(50,366	)	$	(2,172	)	$	(2,322	)

Amounts recognized in accumulated other comprehensive income or loss ("AOCI") consist of:

	Pension Benefits				Medical and Life Insurance Benefits
	2014		2013		2014			2013
Net actuarial loss (gain):
Gross amount recognized	$	77,073	$	47,586	$	(2,289	)	$	(2,759	)
Deferred tax expense		5,346		5,346		275			275

Net amount recognized	$	82,419	$	52,932	$	(2,014	)	$	(2,484	)

The accumulated benefit obligation for all of the defined benefit and supplemental pension plans was $220,537 and $198,360 at January 31, 2015 and February 1, 2014, respectively. The benefit obligation and the accumulated benefit obligation for each of the pension benefit plans exceeded its assets at January 31, 2015 and February 1, 2014.

Components of net periodic benefit expense (income) and other amounts recognized in other comprehensive income or loss ("OCI") before income taxes are as follows:

	Pension Benefits									Medical and Life Insurance Benefits
	2014			2013			2012			2014			2013			2012
Net periodic benefit expense (income):
Interest cost	$	7,990		$	7,993		$	8,468		$	89		$	122		$	142
Expected return on plan assets		(9,959	)		(8,942	)		(8,628	)		—			—			—
Recognition of net actuarial loss (gain)		3,774			6,566			6,758			(519	)		(363	)		(374	)

Net periodic benefit expense (income)		1,805			5,617			6,598			(430	)		(241	)		(232	)

Other changes in plan assets and benefit obligations recognized in OCI, before taxes:
Actuarial net loss (gain)		33,261			(17,013	)		5,374			(49	)		(1,064	)		(104	)
Recognition of net actuarial (loss) gain		(3,774	)		(6,566	)		(6,758	)		519			363			374

Total recognized in OCI, before taxes		29,487			(23,579	)		(1,384	)		470			(701	)		270

Total recognized in net periodic cost and OCI, before taxes	$	31,292		$	(17,962	)	$	5,214		$	40		$	(942	)	$	38

The Company estimates the following amounts will be amortized from AOCI to net periodic cost during 2015:

		Pension Benefits			Medical and Life Insurance Benefits
Net actuarial loss (gain)		$	6,792		$	(426	)

Weighted average assumptions used to determine benefit obligations are as follows:

	Pension Benefits						Medical and Life Insurance Benefits
	2014			2013			2014			2013
Discount rate		3.20	%		4.20	%		3.20	%		4.20	%
Rate of compensation increase		N/A			N/A			N/A			N/A

Weighted average assumptions used to determine net periodic benefit expense (income) are as follows:

	Pension Benefits									Medical and Life Insurance Benefits
	2014			2013			2012			2014			2013			2012
Discount rate		4.20	%		3.80	%		4.10	%		4.20	%		3.80	%		4.10	%
Expected long-term return on plan assets		6.80	%		6.60	%		7.20	%		N/A			N/A			N/A
Rate of compensation increase		N/A			N/A			N/A			N/A			N/A			N/A

For measurement of the medical and life insurance benefits plan, the Company assumed a 6.5% annual rate of increase in the per capita cost of covered health care benefits for 2015, grading down to 5.0% by 2018.

Assumed health care cost trend rate can have a significant effect on the amounts reported for the postretirement health care plan. A one-percentage point change in assumed health care costs would have the following effects:

	One- Percentage Point Increase		One- Percentage Point Decrease
Effect on total service and interest cost components	$	4	$	(3	)
Effect on postretirement benefit obligation		96		(85	)

The Company's discount rate assumption is evaluated annually. The Company utilizes the Citibank Pension Discount Curve to develop its discount rate assumption. A single constant discount rate is developed based on the expected timing of the benefit payments.

The Company bases its asset return assumption on current and expected allocations of assets, as well as a long-term view of expected returns on the plan asset categories. The Company assesses the appropriateness of the expected rate of return on an annual basis and, when necessary, revises the assumption.

At January 31, 2015, the Company's target pension plan asset allocation was 49% equity securities, 41% debt securities and 10% hedge funds. Investment objectives for the pension plan assets include:

•	Providing a long-term return on plan assets that provides sufficient assets to fund pension plan liabilities at an acceptable level of risk.
•	Attempting to achieve a consistent, above-average rate of return through appreciation, income and reinvestment of funds consistent with a reasonable level of growth.
•	Diversifying investments within asset classes to reduce the impact of losses in a single investment.

The weighted average pension plan asset allocation is as follows:

	2014			2013
Cash and cash equivalents		2	%		1	%
Equity securities		47	%		57	%
Debt securities		41	%		32	%
Hedge funds		10	%		10	%

The fair value of each class of the pension plan assets as of January 31, 2015 is as follows:

	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	11	$	3,358	$	—	$	3,369
Equity securities:
U.S. large-cap companies—diversified sectors		9,472		—		—		9,472
U.S. small-cap companies—diversified sectors		3,365		—		—		3,365
Real estate investment trust companies		446		—		—		446
Mutual funds:
Fixed income(1)		5,059		—		—		5,059
International emerging economies fixed income		5,394		—		—		5,394
Floating rate debt securities		3,888		—		—		3,888
Real estate investment trust companies		4,841		—		—		4,841
Pooled funds(2):
U.S. large-cap equity		—		19,933		—		19,933
U.S. small-cap equity		—		1,323		—		1,323
International small-cap equity		—		4,321		—		4,321
International developed economies equity		—		19,002		—		19,002
International emerging economies equity		—		8,785		—		8,785
Fixed income(1)		—		47,576		—		47,576
Multi-strategy hedge funds(3)		—		15,050		—		15,050

Total	$	32,476	$	119,348	$	—	$	151,824

(1)	Primarily invested in U.S. government securities, municipals, mortgage-backed securities and investment grade and high yield bonds.
(2)	Certain investments in this category are subject to monthly redemption frequency restrictions, subject to 10 day advance notification requirements. Pooled funds consist primarily of common collective trust and 102-12 investment entities.
(3)	These investments are subject to a redemption frequency restriction of quarterly, subject to advance notification requirements ranging from 60 to 91 days.

The fair value of each class of the pension plan assets as of February 1, 2014 is as follows:

	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	66	$	2,193	$	—	$	2,259
Equity securities:
U.S. large-cap companies—diversified sectors		8,097		—		—		8,097
U.S. small-cap companies—diversified sectors		4,082		—		—		4,082
Real estate investment trust companies		537		—		—		537
Mutual funds:
Fixed income(1)		23,841		—		—		23,841
Pooled funds(2):
U.S. large-cap equity		—		39,444		—		39,444
U.S. small-cap equity		—		2,593		—		2,593
International developed economies equity		—		24,933		—		24,933
International emerging economies equity				3,907				3,907
Fixed income(1)		—		24,219		—		24,219
Multi-strategy hedge funds(3)		—		14,082		—		14,082

Total	$	36,623	$	111,371	$	—	$	147,994

(1)	Primarily invested in U.S. government securities, municipals, mortgage-backed securities and investment grade and high yield bonds.
(2)	Certain investments in this category are subject to monthly redemption frequency restrictions, subject to 10 day advance notification requirements. Pooled funds consist primarily of common collective trust and 102-12 investment entities.
(3)	These investments are subject to a redemption frequency restriction of quarterly, subject to advance notification requirements ranging from 60 to 91 days.

Changes in the fair value of the pension plans level 3 assets are as follows:

	2014		2013
Fair value at beginning of year	$	—	$	738
Gain on plan assets relating to assets still held at the reporting date		—		23
Transfers out of level 3, net		—		(761	)

Fair value at end of year	$	—	$	—

The pooled funds and hedge funds are valued using the net asset value ("NAV") provided by the administrator of the funds. The NAV is a quoted transactional price for participants in the fund, based on the underlying investments of the fund. The pension plan assets are invested in compliance with the Employee Retirement Income Security Act, as amended, and any subsequent regulations and laws. The Company does not permit direct purchases of its securities by the Plan.

Information about the expected cash flows related to the pension and other postretirement benefit plans is as follows:

	Pension Benefits		Medical and Life Insurance Benefits
Expected company contributions in 2015	$	6,677	$	355
Expected plan benefit payments (net of expected participant contributions) for year:
2015	$	15,859	$	355
2016		15,233		315
2017		14,634		278
2018		14,188		242
2019		13,580		209
2020-2024		62,598		670