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SECURITIES AND EXCHANGE COMMISSION |
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FORM 11-K |
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[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE |
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For fiscal year ended December 31, 2003 |
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[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE |
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For the transition period from to |
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Commission file number: 1-13536 |
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A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Executive Deferred Compensation Plan of Federated Department Stores, Inc. |
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B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: |
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Federated Department Stores, Inc. |
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EXECUTIVE DEFERRED COMPENSATION PLAN OF |
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FEDERATED DEPARTMENT STORES, INC. |
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Financial Statements |
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As of December 31, 2003 and 2002 and for |
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the Years Ended December 31, 2003, 2002 and 2001 |
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With Independent Auditors' Report Thereon |
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EXECUTIVE DEFERRED COMPENSATION PLAN OF |
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FEDERATED DEPARTMENT STORES, INC. |
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Index |
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Independent Auditors' Report |
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Statements of Assets Available for Plan Benefits - |
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December 31, 2003 and 2002 |
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Statements of Changes in Assets Available for Plan Benefits - |
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Years Ended December 31, 2003, 2002 and 2001 |
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Notes to Financial Statements |
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Independent Auditors' Report |
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Pension and Profit Sharing Committee |
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We have audited the accompanying statements of assets available for plan benefits of the Executive Deferred Compensation Plan of Federated Department Stores, Inc. (the Plan) as of December 31, 2003 and 2002, and the related statements of changes in assets available for plan benefits for each of the years in the three year period ended December 31, 2003. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. |
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We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. |
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In our opinion, the financial statements referred to above present fairly, in all material respects, the assets available for plan benefits of the Plan as of December 31, 2003 and 2002, and the changes in assets available for plan benefits for the years in the three year period ended December 31, 2003 in conformity with accounting principles generally accepted in the United States of America. |
KPMG LLP |
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Cincinnati, Ohio |
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EXECUTIVE DEFERRED COMPENSATION PLAN OF |
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FEDERATED DEPARTMENT STORES, INC. |
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Statements of Assets Available for Plan Benefits |
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December 31, 2003 and 2002 |
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2003 |
2002 |
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Receivables from Federated Department Stores, Inc. - |
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Federated Department Stores, Inc. common stock - |
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Assets available for plan benefits |
$44,687,377 |
$33,731,373 |
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The accompanying notes are an integral part of these financial statements. |
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EXECUTIVE DEFERRED COMPENSATION PLAN OF |
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FEDERATED DEPARTMENT STORES, INC. |
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Statement of Changes in Assets Available for Plan Benefits |
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Year Ended December 31, 2003 |
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Cash |
Stock |
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Interest income |
$ 431,331 |
$ - |
$ 431,331 |
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Dividend income |
- |
188,933 |
188,933 |
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Unrealized appreciation on Federated Department |
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Participant contributions |
2,677,021 |
769,427 |
3,446,448 |
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Total additions |
3,108,352 |
10,211,100 |
13,319,452 |
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Distributions |
1,701,780 |
661,668 |
2,363,448 |
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Net additions to assets available for plan benefits |
1,406,572 |
9,549,432 |
10,956,004 |
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Assets available for plan benefits: |
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Beginning of year |
19,018,045 |
14,713,328 |
33,731,373 |
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End of year |
$20,424,617 |
$24,262,760 |
$44,687,377 |
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The accompanying notes are an integral part of these financial statements. |
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EXECUTIVE DEFERRED COMPENSATION PLAN OF |
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FEDERATED DEPARTMENT STORES, INC. |
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Statement of Changes in Assets Available for Plan Benefits |
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Year Ended December 31, 2002 |
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Cash |
Stock |
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Interest income |
$ 660,247 |
$ - |
$ 660,247 |
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Unrealized depreciation on Federated Department |
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Participant contributions |
2,525,765 |
1,238,405 |
3,764,170 |
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Total additions (reductions) |
3,186,012 |
(4,830,050) |
(1,644,038) |
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Distributions |
805,687 |
448,133 |
1,253,820 |
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Net additions (reductions) to assets |
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Assets available for plan benefits: |
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Beginning of year |
16,637,720 |
19,991,511 |
36,629,231 |
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End of year |
$19,018,045 |
$14,713,328 |
$33,731,373 |
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The accompanying notes are an integral part of these financial statements. |
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EXECUTIVE DEFERRED COMPENSATION PLAN OF |
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FEDERATED DEPARTMENT STORES, INC. |
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Statement of Changes in Assets Available for Plan Benefits |
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Year Ended December 31, 2001 |
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Cash |
Stock |
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Interest income |
$ 657,971 |
$ - |
$ 657,971 |
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Unrealized appreciation on Federated Department |
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Participant contributions |
2,551,276 |
1,747,992 |
4,299,268 |
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Total additions |
3,209,247 |
4,818,444 |
8,027,691 |
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Distributions |
974,114 |
1,680,973 |
2,655,087 |
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Net additions to assets available for plan benefits |
2,235,133 |
3,137,471 |
5,372,604 |
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Assets available for plan benefits: |
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Beginning of year |
14,402,587 |
16,854,040 |
31,256,627 |
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End of year |
$16,637,720 |
$19,991,511 |
$36,629,231 |
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The accompanying notes are an integral part of these financial statements. |
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EXECUTIVE DEFERRED COMPENSATION PLAN OF |
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FEDERATED DEPARTMENT STORES, INC. |
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Notes to Financial Statements |
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December 31, 2003, 2002 and 2001 |
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1. Description of the Plan |
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The following brief description of the Executive Deferred Compensation Plan of Federated Department Stores, Inc. (the "Plan") is provided for general information purposes only. Participants should refer to the Plan document for more complete information. |
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General |
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The Plan is sponsored by Federated Department Stores, Inc. (the "Company"). The Plan, as amended, enables key employees of the Company to defer cash and certain stock option compensation for personal income tax purposes. The nonqualified Plan was adopted in 1993 and is not subject to the provisions of the Employee Retirement Income Security Act of 1974 and is not subject to income taxation. |
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Eligibility and Vesting |
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The Plan covers key employees, as designated by the Company. Participation is voluntary and participants can elect to make contributions to the Plan. Participants are 100% vested in the Plan at all times. |
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Participant Accounts |
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An account is maintained for each participant in the Plan which shows the participant's separate interest in the Cash Credit and Stock Credit portions of the Plan. If a Cash Credit is elected, the participant's account shall be credited, as of the end of each calendar quarter, with the dollar amount of deferred compensation. At the end of each calendar quarter, the Cash Credit account shall be credited with interest at a rate equal to one-quarter of the percent per annum on United States Five-Year Treasury Bills as of the last day of such calendar quarter. If a Stock Credit is elected, the participant's account shall be credited, as of the end of each calendar quarter, with a stock equivalent which shall be the number of full shares of common stock of the Company that is transferred to or purchased by the Grantor Trust (defined later) with the amount of deferred compensation and with the dollar amount of any part of such credit that is not convertible into a full share. At the end of each calendar quarter, the Stock Credit account shall be credited with a dividend equivalent as declared by the Company, if any, upon each share of common stock during such calendar quarter. |
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Participants are eligible for distribution of their benefits upon retirement, death, termination of service, in the event of a designated change of control of the Company and in the event of immediate unexpected financial needs of the participant, as the Plan is not subject to the hardship rules of Section 401 of the Internal Revenue Code. Participants, prior to termination, may request to receive the balance of their cash and stock credit accounts in one to fifteen approximately equal installments. Such requests are subject to committee approval. |
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Effective January 1, 2002, participants have the ability to defer cash compensation on a short-term basis, for a minimum of five years. At the time of such deferral election, participants may request to receive the balance of this short-term deferral account in one to fifteen approximately equal installments. Notwithstanding, participants are eligible for distribution of this short-term account as well as other balances due them under the Plan upon retirement, death, termination of service, in the event of a designated change of control of the Company and in the event of immediate unexpected financial needs of the participant, as the Plan is not subject to the hardship rules of Section 401 of the Internal Revenue Code. |
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Grantor Trust |
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The Company established a Grantor (Rabbi) Trust, a wholly owned subsidiary of the Company, intended to meet the safe harbor provisions of RevProc 92-64, for the benefit of participants' Stock Credits under the Plan. The Trust shall be governed by and subject to the terms of a trust agreement entered into between the Company, as grantor, and the trustee. |
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2. Summary of Significant Accounting Policies |
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a) Basis of Presentation |
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The accompanying financial statements of the Plan have been prepared on the accrual basis of accounting. |
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b) Investments |
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The Plan's investments consist of receivables from the Company and common stock of the Company, both of which exceed 5% of assets available for plan benefits. The Company maintains separate book accounts for the benefit of each Plan participant and periodically credits such accounts for deferred compensation, interest and dividend income and distributions. Stock holdings are recorded at their cost at the time of purchase and are presented at their fair market values. The stock credits had a cost basis of $17,543,460 and $17,442,942 at December 31, 2003 and December 31, 2002, respectively. |
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c) Use of Estimates |
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The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the plan administrator to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions are subject to inherent uncertainties, which may result in actual amounts differing from reported amounts. |
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3. Plan Termination |
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Although the Company has not expressed any intent to terminate the Plan, it may do so at any time. In the event the Plan is terminated, all sums credited to individual accounts would be distributed to participants. |
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4. Administrative Expenses |
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All administrative costs of the Plan are borne by the Company. |
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Pursuant to the requirements of the Securities and Exchange Act of 1934, the members of the Pension and Profit Sharing Committee (which is the administrative committee for the Executive Deferred Compensation Plan of Federated Department Stores, Inc.) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. |
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Executive Deferred Compensation Plan of |
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FEDERATED DEPARTMENT STORES, INC. |
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Dated March 30, 2004 |
By: /s/ Ronald W. Tysoe |
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Ronald W. Tysoe, Member |
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Pension and Profit Sharing Committee |
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Federated Department Stores, Inc. |
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