Annual report pursuant to Section 13 and 15(d)

Postretirement Health Care and Life Insurance Benefits (Tables)

v3.20.1
Postretirement Health Care and Life Insurance Benefits (Tables) - Other Postretirement Benefits Plan [Member]
12 Months Ended
Feb. 01, 2020
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 postretirement obligations as of February 1, 2020 and February 2, 2019:
 
 
2019
 
2018
 
(millions)
Change in accumulated postretirement benefit obligation
 
 
 
Accumulated postretirement benefit obligation, beginning of year
$
137

 
$
156

Service cost

 

Interest cost
5

 
5

Actuarial loss (gain)
5

 
(11
)
Medicare Part D subsidy

 

Benefits paid
(14
)
 
(13
)
Accumulated postretirement benefit obligation, end of year
133

 
137

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

 

Company contributions
14

 
13

Benefits paid
(14
)
 
(13
)
Fair value of plan assets, end of year

 

Funded status at end of year
$
(133
)
 
$
(137
)
Amounts recognized in the Consolidated Balance Sheets at
February 1, 2020 and February 2, 2019
 
 
 
Accounts payable and accrued liabilities
$
(14
)
 
$
(15
)
Other liabilities
(119
)
 
(122
)
 
$
(133
)
 
$
(137
)
Amounts recognized in accumulated other comprehensive loss at
February 1, 2020 and February 2, 2019
 
 
 
Net actuarial gain
$
(30
)
 
$
(41
)
Prior service credit
(8
)
 
(9
)
 
$
(38
)
 
$
(50
)


Schedule of Net Periodic Benefit Costs
Net postretirement benefit costs and other amounts recognized in other comprehensive loss included the following actuarially determined components:
 
 
2019
 
2018
 
2017
 
(millions)
Net Periodic Postretirement Benefit Cost
 
 
 
 
 
Service cost
$

 
$

 
$

Interest cost
5

 
5

 
5

Amortization of net actuarial gain
(6
)
 
(5
)
 
(5
)
Amortization of prior service credit
(1
)
 
(1
)
 

 
(2
)
 
(1
)
 

Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
 
 
 
 
 
Net actuarial loss (gain)
5

 
(11
)
 
(9
)
Amortization of net actuarial gain
6

 
5

 
5

Amortization of prior service credit
1

 
1

 

Prior service credit

 

 
(10
)
 
12

 
(5
)
 
(14
)
Total recognized
$
10

 
$
(6
)
 
$
(14
)

Weighted Average Assumptions
The following weighted average assumption was used to determine the accumulated postretirement benefit obligations at February 1, 2020 and February 2, 2019:
 
 
2019
 
2018
Discount rate
2.81
%
 
4.02
%


The following weighted average assumption was used to determine the net postretirement benefit costs for the postretirement obligations:
 
 
2019
 
2018
 
2017
Discount rate used to measure interest cost
3.57
%
 
3.28
%
 
3.17
%

Schedule of Health Care Cost Trend Rates
The following provides the assumed health care cost trend rates related to the Company’s accumulated postretirement benefit obligations at February 1, 2020 and February 2, 2019:
 
 
2019
 
2018
Health care cost trend rates assumed for next year
5.25% - 8.63%
 
5.38% - 9.31%
Rates to which the cost trend rate is assumed to decline (the ultimate trend rate)
4.5%
 
4.5%
Year that the rate reaches the ultimate trend rate
2027
 
2027

Schedule Of Effect Of One Percentage Point Change In Assumed Health Care Cost Trend Rates A one-percentage-point change in the assumed health care cost trend rates would have the following effects:
 
 
1 – Percentage
Point Increase
 
1 – Percentage
Point Decrease
 
(millions)
Effect on total of service and interest cost
$

 
$

Effect on accumulated postretirement benefit obligations
$
7

 
$
(6
)

Estimated Future Benefit Payments
The following table reflects the benefit payments estimated to be funded by the Company and paid from the accumulated postretirement benefit obligations and estimated federal subsidies expected to be received under the Medicare Prescription Drug Improvement and Modernization Act of 2003:
 
 
Expected
Benefit
Payments
 
Expected
Federal
Subsidy
 
(millions)
Fiscal Year
 
 
 
2020
$
14

 
$

2021
13

 

2022
12

 

2023
11

 

2024
10

 

2025-2029
41

 
1