Nordstrom, Inc. and subsidiaries 51 Nordstrom, Inc. Notes to Consolidated Financial Statements Dollar and share amounts in millions except per share, per option and per unit amounts Benefit Obligations and Funded Status Our benefit obligation and funded status is as follows: The accumulated benefit obligation, which is the present value of benefits, assuming no future compensation changes, was $197 and $162 at  the end of 2014 and 2013. 2014 includes an actuarial loss of $36 driven by decreased interest rates and updated mortality rates, and will be  amortized over the average remaining future service years. Amounts recognized as liabilities in the Consolidated Balance Sheets consist of the following: The components of SERP expense recognized in the Consolidated Statements of Earnings are as follows: Components of SERP Expense Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following: In 2015, we expect $10 of costs currently in accumulated other comprehensive loss to be recognized as components of SERP expense. January 31, 2015 February 1, 2014 Change in benefit obligation: Benefit obligation at beginning of year $168 $167 Participant service cost 3 4 Interest cost 8 7 Benefits paid (6) (5) Actuarial loss (gain) 36 (5) Plan amendment (6) — Benefit obligation at end of year 203 168 Change in plan assets: Fair value of plan assets at beginning of year — — Employer contribution 6 5 Benefits paid (6) (5) Fair value of plan assets at end of year — — Underfunded status at end of year ($203) ($168) January 31, 2015 February 1, 2014 Current liabilities $8 $7 Noncurrent liabilities 195 161 Net amount recognized $203 $168 Fiscal year 2014 2013 2012 Participant service cost $3 $4 $4 Interest cost 7 7 7 Amortization of net loss 6 8 7 Total SERP expense $16 $19 $18 January 31, 2015 February 1, 2014 Accumulated loss ($78) ($47) Prior service credit (cost) 6 (1) Total accumulated other comprehensive loss ($72) ($48)