Analyzing and Interpreting Retirement Benefit Footnote
Abercrombie & Fitch Co. discloses the following footnote relating to its retirement plans in its 2012 10-K report.
Retirement Benefits: The Company maintains the Abercrombie & Fitch Co. Savings & Retirement Plan, a qualified plan. All U.S. associates are eligible to participate in this plan if they are at least 21 years of age and have completed a year of employment with 1,000 or more hours of service. In addition, the Company maintains the Abercrombie & Fitch Co. Nonqualified Saving and Supplemental Retirement, composed of two sub-plans (Plan 1 and Plan 2). Plan 1 contains contributions made through December 31, 2004, while Plan 2 contains contributions made on and after January 1, 2005. Participation in these plans is based on service and compensation. The Company’s contributions are based on percentage of associates’ eligible annual compensation. The cost of the Company’s contributions to these plans was $21.1 million in Fiscal 2012, $16.4 million in Fiscal 2011 and $19.4 million in Fiscal 2010.
Does Abercrombie have a defined contribution or defined benefit pension plan? Explain.
How does Abercrombie account for its contributions to its retirement plan?
How does Abercrombie report its obligation for its retirement plan on the balance sheet?