Annual report pursuant to Section 13 and 15(d)

Retirement Plans (Tables)

v3.7.0.1
Retirement Plans (Tables)
12 Months Ended
Jan. 28, 2017
Schedule of Costs of Retirement Plans
Retirement expenses, excluding settlement charges, included the following components:
 
2016
 
2015
 
2014
 
(millions)
401(k) Qualified Defined Contribution Plan
$
94

 
$
88

 
$
89

Non-Qualified Defined Contribution Plan
2

 
2

 
2

Pension Plan
(83
)
 
(54
)
 
(64
)
Supplementary Retirement Plan
31

 
41

 
38

 
$
44

 
$
77

 
$
65

Pension Plan [Member]  
Reconciliation of Benefit Obligations, Plan Assets, and Funded Status Pension Plan
The following provides a reconciliation of benefit obligations, plan assets, and funded status of the Pension Plan as of January 28, 2017 and January 30, 2016:
 
 
2016
 
2015
 
(millions)
Change in projected benefit obligation
 
 
 
Projected benefit obligation, beginning of year
$
3,585

 
$
3,966

Service cost
5

 
6

Interest cost
108

 
137

Actuarial (gain) loss
55

 
(282
)
Benefits paid
(284
)
 
(242
)
Projected benefit obligation, end of year
3,469

 
3,585

Changes in plan assets
 
 
 
Fair value of plan assets, beginning of year
3,256

 
3,636

Actual return on plan assets
402

 
(138
)
Company contributions

 

Benefits paid
(284
)
 
(242
)
Fair value of plan assets, end of year
3,374

 
3,256

Funded status at end of year
$
(95
)
 
$
(329
)
Amounts recognized in the Consolidated Balance Sheets at
January 28, 2017 and January 30, 2016
 
 
 
Other liabilities
$
(95
)
 
$
(329
)
 

 

Amounts recognized in accumulated other comprehensive loss at
January 28, 2017 and January 30, 2016
 
 
 
Net actuarial loss
$
1,232

 
$
1,451

Schedule of Net Periodic Benefit Costs
Net pension costs, settlement charges and other amounts recognized in other comprehensive loss for the Pension Plan included the following actuarially determined components:
 
 
2016
 
2015
 
2014
 
(millions)
Net Periodic Pension Cost
 
 
 
 
 
Service cost
$
5

 
$
6

 
$
6

Interest cost
108

 
137

 
151

Expected return on assets
(227
)
 
(235
)
 
(246
)
Amortization of net actuarial loss
31

 
38

 
25

Amortization of prior service credit

 

 

 
(83
)
 
(54
)
 
(64
)
 
 
 
 
 
 
Settlement charges
68

 

 

 
 
 
 
 
 
Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
 
 
 
 
 
Net actuarial (gain) loss
(120
)
 
92

 
491

Amortization of net actuarial loss
(31
)
 
(38
)
 
(25
)
Amortization of prior service credit

 

 

Settlement charges
(68
)
 

 

 
(219
)
 
54

 
466

Total recognized
$
(234
)
 
$

 
$
402


Weighted Average Assumptions
The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan:
 
 
2016
 
2015
 
2014
Discount rate used to measure service cost
3.79% - 4.26%

 
3.55
%
 
4.50
%
Discount rate used to measure interest cost
2.96% - 3.30%

 
3.55
%
 
4.50
%
Expected long-term return on plan assets
7.00
%
 
7.00
%
 
7.50
%
Rate of compensation increases
4.10
%
 
4.10
%
 
4.10
%
The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan at January 28, 2017 and January 30, 2016:
 
 
2016
 
2015
Discount rate
4.00
%
 
4.17
%
Rate of compensation increases
4.10
%
 
4.10
%
Fair Values of Plan Assets
The fair values of the Pension Plan assets as of January 28, 2017, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:
 
 
Fair Value Measurements
 
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(millions)
Short term investments
$
14

 
$

 
$
14

 
$

Money market funds
74

 
74

 

 

Equity securities:
 
 
 
 
 
 
 
U.S. stocks
309

 
309

 

 

U.S. pooled funds (a)
654

 
446

 

 

International pooled funds (a)
649

 
131

 

 

Fixed income securities:
 
 
 
 
 
 
 
U. S. Treasury bonds
194

 

 
194

 

Other Government bonds
40

 

 
40

 

Agency backed bonds
24

 

 
24

 

Corporate bonds
453

 

 
453

 

Mortgage-backed securities
85

 

 
85

 

Asset-backed securities
17

 

 
17

 

Pooled funds
461

 
461

 

 

Other types of investments:
 
 
 
 
 
 
 
Real estate (a)
223

 

 

 

Private equity (a)
186

 

 

 

Derivatives in a positive position
13

 

 
13

 

Derivatives in a negative position
(19
)
 

 
(19
)
 

Total
$
3,377

 
$
1,421

 
$
821

 
$


(a) Certain investments that are measured at fair value using the net asset value per share as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets.

The fair values of the Pension Plan assets as of January 30, 2016, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:
 
 
Fair Value Measurements
 
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(millions)
Cash and cash equivalents
$
15

 
$
15

 
$

 
$

Short term investments
36

 

 
36

 

Money market funds
46

 
46

 

 

Equity securities:
 
 
 
 
 
 
 
U.S. stocks
280

 
280

 

 

U.S. pooled funds (a)
391

 
207

 

 

International pooled funds (a)
575

 
336

 

 

Fixed income securities:
 
 
 
 
 
 
 
U. S. Treasury bonds
233

 

 
233

 

Other Government bonds
41

 

 
41

 

Agency backed bonds
31

 

 
31

 

Corporate bonds
433

 

 
433

 

Mortgage-backed securities
112

 

 
112

 

Asset-backed securities
28

 

 
28

 

Pooled funds
427

 
427

 

 

Other types of investments:
 
 
 
 
 
 
 
Real estate (a)
238

 

 

 

Hedge funds (a)
179

 

 

 

Private equity (a)
188

 

 

 

Derivatives in a positive position
15

 

 
15

 

Derivatives in a negative position
(22
)
 

 
(22
)
 

Total
$
3,246

 
$
1,311

 
$
907

 
$


Estimated Future Benefit Payments
The following benefit payments are estimated to be paid from the Pension Plan:
 
 
(millions)
Fiscal year
 
2017
$
383

2018
309

2019
299

2020
286

2021
246

2022-2026
1,113

Supplemental Employee Retirement Plan  
Reconciliation of Benefit Obligations, Plan Assets, and Funded Status Pension Plan
The following provides a reconciliation of benefit obligations, plan assets and funded status of the supplementary retirement plan as of January 28, 2017 and January 30, 2016:
 
 
2016
 
2015
 
(millions)
Change in projected benefit obligation
 
 
 
Projected benefit obligation, beginning of year
$
823

 
$
920

Service cost

 

Interest cost
22

 
31

Actuarial (gain) loss
26

 
(70
)
Benefits paid
(124
)
 
(58
)
Projected benefit obligation, end of year
747

 
823

Change in plan assets
 
 
 
Fair value of plan assets, beginning of year

 

Company contributions
124

 
58

Benefits paid
(124
)
 
(58
)
Fair value of plan assets, end of year

 

Funded status at end of year
$
(747
)
 
$
(823
)
Amounts recognized in the Consolidated Balance Sheets at
January 28, 2017 and January 30, 2016
 
 
 
Accounts payable and accrued liabilities
$
(86
)
 
$
(138
)
Other liabilities
(661
)
 
(685
)
 
$
(747
)
 
$
(823
)
Amounts recognized in accumulated other comprehensive loss at
January 28, 2017 and January 30, 2016
 
 
 
Net actuarial loss
$
248

 
$
261

Prior service cost
8

 
8

 
$
256

 
$
269

Schedule of Net Periodic Benefit Costs
Net pension costs, settlement charges and other amounts recognized in other comprehensive loss for the supplementary retirement plan included the following actuarially determined components:
 
 
2016
 
2015
 
2014
 
(millions)
Net Periodic Pension Cost
 
 
 
 
 
Service cost
$

 
$

 
$

Interest cost
22

 
31

 
33

Amortization of net actuarial loss
9

 
10

 
5

Amortization of prior service credit

 

 

 
31

 
41

 
38

 
 
 
 
 
 
Settlement charges
30

 

 

 
 
 
 
 
 
Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
 
 
 
 
 
Net actuarial (gain) loss
26

 
(70
)
 
170

Prior service cost

 

 

Amortization of net actuarial loss
(9
)
 
(10
)
 
(5
)
Amortization of prior service credit

 

 

Settlement charges
(30
)
 

 

 
(13
)
 
(80
)
 
165

Total recognized
$
48

 
$
(39
)
 
$
203


Weighted Average Assumptions
The following weighted average assumption was used to determine the projected benefit obligations for the supplementary retirement plan at January 28, 2017 and January 30, 2016:
 
 
2016
 
2015
Discount rate
4.07
%
 
4.23
%
The following weighted average assumption was used to determine net pension costs for the supplementary retirement plan:
 
 
2016
 
2015
 
2014
Discount rate used to measure interest cost
2.65% - 3.16%
 
3.55
%
 
4.50
%

Estimated Future Benefit Payments
The following benefit payments are estimated to be funded by the Company and paid from the supplementary retirement plan:
 
 
(millions)
Fiscal year
 
2017
$
86

2018
78

2019
46

2020
48

2021
48

2022-2026
228