Quarterly report pursuant to Section 13 or 15(d)

Benefit Plans

v3.19.2
Benefit Plans
6 Months Ended
Aug. 03, 2019
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]  
Benefit Plans Benefit Plans
The Company has defined contribution plans which cover substantially all employees who work 1,000 hours or more in a year. In addition, the Company has a funded defined benefit plan ("Pension Plan") and an unfunded defined benefit supplementary retirement plan ("SERP"), which provides benefits, for certain employees, in excess of qualified plan limitations. Effective January 1, 2012, the Pension Plan was closed to new participants, with limited exceptions, and effective January 2, 2012, the SERP was closed to new participants.
In February 2013, the Company announced changes to the Pension Plan and SERP whereby eligible employees no longer earn future pension service credits after December 31, 2013, with limited exceptions. All retirement benefits attributable to service in subsequent periods are provided through defined contribution plans.
In addition, certain retired employees currently are provided with specified health care and life insurance benefits ("Postretirement Obligations"). Eligibility requirements for such benefits vary, but generally state that benefits are available to eligible employees who were hired prior to a certain date and retire after a certain age with specified years of service. Certain employees are subject to having such benefits modified or terminated.
The defined contribution plan expense and actuarially determined components of the net periodic benefit cost (income) associated with the defined benefit plans are as follows:
 
13 Weeks Ended
 
26 Weeks Ended
 
August 3, 2019
 
August 4, 2018
 
August 3, 2019
 
August 4, 2018
 
(millions)
 
(millions)
401(k) Qualified Defined Contribution Plan
$
24

 
$
24

 
$
49

 
$
47

 
 
 
 
 
 
 
 
Non-Qualified Defined Contribution Plan
$
1

 
$
1

 
$
2

 
$
1

 
 
 
 
 
 
 
 
Pension Plan
 
 
 
 
 
 
 
Service cost
$
1

 
$
1

 
$
2

 
$
3

Interest cost
26

 
27

 
52

 
53

Expected return on assets
(48
)
 
(53
)
 
(96
)
 
(106
)
Recognition of net actuarial loss
7

 
8

 
14

 
16

Amortization of prior service credit

 

 

 

 
$
(14
)
 
$
(17
)
 
$
(28
)
 
$
(34
)
Supplementary Retirement Plan
 
 
 
 
 
 
 
Service cost
$

 
$

 
$

 
$

Interest cost
6

 
5

 
12

 
11

Recognition of net actuarial loss
2

 
2

 
4

 
4

Amortization of prior service cost

 

 

 

 
$
8

 
$
7

 
$
16

 
$
15

 
 
 
 
 
 
 
 
Total Retirement Expense
$
19

 
$
15

 
$
39

 
$
29

 
 
 
 
 
 
 
 
Postretirement Obligations
 
 
 
 
 
 
 
Service cost
$

 
$

 
$

 
$

Interest cost
1

 
1

 
2

 
2

Recognition of net actuarial gain
(2
)
 
(1
)
 
(3
)
 
(2
)
Amortization of prior service credit

 

 

 

 
$
(1
)
 
$

 
$
(1
)
 
$




For the 13 and 26 weeks ended August 4, 2018, the Company incurred non-cash settlement charges of $50 million related to the Company's defined benefit plans. These charges relate to the pro-rata recognition of net actuarial losses associated with the Company's defined benefit plans and are the result of an increase in lump sum distributions associated with store closings, organizational restructuring and periodic distribution activity.