Annual report pursuant to Section 13 and 15(d)

Retirement Plans (Tables)

v3.21.1
Retirement Plans (Tables)
12 Months Ended
Jan. 30, 2021
Schedule of Costs of Retirement Plans

Retirement expenses, excluding settlement charges, included the following components:

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

 

 

 

 

(millions)

 

 

 

 

 

401(k) Qualified Defined Contribution Plan

 

$

68

 

 

$

96

 

 

$

96

 

Non-Qualified Defined Contribution Plan

 

 

1

 

 

 

2

 

 

 

1

 

Pension Plan

 

 

(73

)

 

 

(54

)

 

 

(64

)

Supplementary Retirement Plan

 

 

26

 

 

 

30

 

 

 

31

 

 

 

$

22

 

 

$

74

 

 

$

64

 

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 30, 2021 and February 1, 2020:

 

 

 

2020

 

 

2019

 

 

 

(millions)

 

Change in projected benefit obligation

 

 

 

 

 

 

 

 

Projected benefit obligation, beginning of year

 

$

3,321

 

 

$

3,011

 

Service cost

 

 

4

 

 

 

5

 

Interest cost

 

 

66

 

 

 

103

 

Actuarial loss

 

 

12

 

 

 

463

 

Benefits paid

 

 

(373

)

 

 

(261

)

Projected benefit obligation, end of year

 

 

3,030

 

 

 

3,321

 

Changes in plan assets

 

 

 

 

 

 

 

 

Fair value of plan assets, beginning of year

 

 

3,359

 

 

 

3,018

 

Actual return on plan assets

 

 

373

 

 

 

602

 

Company contributions

 

 

 

 

 

 

Benefits paid

 

 

(373

)

 

 

(261

)

Fair value of plan assets, end of year

 

 

3,359

 

 

 

3,359

 

Funded status at end of year

 

$

329

 

 

$

38

 

Amounts recognized in the Consolidated Balance Sheets at January 30, 2021 and

   February 1, 2020

 

 

 

 

 

 

 

 

Other assets

 

$

329

 

 

$

38

 

Amounts recognized in accumulated other comprehensive loss at January 30, 2021 and

   February 1, 2020

 

 

 

 

 

 

 

 

Net actuarial loss

 

$

794

 

 

$

1,086

 

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:

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(millions)

 

Net Periodic Pension Cost

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

4

 

 

$

5

 

 

$

5

 

Interest cost

 

 

66

 

 

 

103

 

 

 

109

 

Expected return on assets

 

 

(183

)

 

 

(191

)

 

 

(206

)

Amortization of net actuarial loss

 

 

40

 

 

 

29

 

 

 

28

 

Amortization of prior service credit

 

 

 

 

 

 

 

 

 

 

 

 

(73

)

 

 

(54

)

 

 

(64

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Settlement charges

 

 

74

 

 

 

45

 

 

 

78

 

Other Changes in Plan Assets and Projected Benefit Obligation

   Recognized in Other Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial (gain) loss

 

 

(178

)

 

 

51

 

 

 

223

 

Amortization of net actuarial loss

 

 

(40

)

 

 

(29

)

 

 

(28

)

Settlement charges

 

 

(74

)

 

 

(45

)

 

 

(78

)

 

 

 

(292

)

 

 

(23

)

 

 

117

 

Total recognized

 

$

(291

)

 

$

(32

)

 

$

131

 

Weighted Average Assumptions

The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan at January 30, 2021 and February 1, 2020:

 

 

 

2020

 

 

2019

 

Discount rate

 

 

2.43

%

 

 

2.83

%

Rate of compensation increases

 

 

3.45

%

 

 

3.25

%

Cash balance plan interest crediting rate

 

 

5.00

%

 

 

5.00

%

 

The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan:

 

 

 

2020

 

 

2019

 

 

2018

 

Discount rate used to measure service cost

 

2.35% - 2.96%

 

 

 

4.09

%

 

3.77% - 4.46%

 

Discount rate used to measure interest cost

 

1.65% - 2.46%

 

 

 

3.67

%

 

3.39% - 4.06%

 

Expected long-term return on plan assets

 

 

6.25

%

 

 

6.50

%

 

 

6.75

%

Rate of compensation increases

 

 

3.25

%

 

 

4.00

%

 

 

4.00

%

Cash balance plan interest crediting rate

 

 

5.00

%

 

 

5.00

%

 

 

5.00

%

Fair Values of Plan Assets

The fair values of the Pension Plan assets as of January 30, 2021, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:

 

 

 

Fair Value

Measurements

 

 

 

 

 

 

 

Quoted Prices in

 

 

Significant

 

 

Significant

 

 

 

 

 

 

 

Active Markets for

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Identical Assets

 

 

Inputs

 

 

Inputs

 

 

 

Total

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

 

 

 

 

 

(millions)

 

 

 

 

 

 

 

 

 

Short term investments

 

$

3

 

 

$

 

 

$

3

 

 

$

 

Money market funds

 

 

136

 

 

 

136

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. pooled funds

 

 

356

 

 

 

356

 

 

 

 

 

 

 

International pooled funds (a)

 

 

333

 

 

 

37

 

 

 

 

 

 

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bonds

 

 

270

 

 

 

 

 

 

270

 

 

 

 

Other Government bonds

 

 

63

 

 

 

 

 

 

63

 

 

 

 

Corporate bonds

 

 

1,609

 

 

 

 

 

 

1,609

 

 

 

 

Mortgage-backed securities

 

 

11

 

 

 

 

 

 

11

 

 

 

 

Asset-backed securities

 

 

1

 

 

 

 

 

 

1

 

 

 

 

Pooled funds

 

 

271

 

 

 

271

 

 

 

 

 

 

 

Other types of investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate (a)

 

 

31

 

 

 

 

 

 

 

 

 

 

Private equity (a)

 

 

160

 

 

 

 

 

 

 

 

 

 

Derivatives in a positive position

 

 

8

 

 

 

 

 

 

8

 

 

 

 

Derivatives in a negative position

 

 

(4

)

 

 

(4

)

 

 

 

 

 

 

Total

 

$

3,248

 

 

$

796

 

 

$

1,965

 

 

$

 

 

(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 February 1, 2020, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:

 

 

 

Fair Value Measurements

 

 

 

 

 

 

 

Quoted Prices in

 

 

Significant

 

 

Significant

 

 

 

 

 

 

 

Active Markets for

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Identical Assets

 

 

Inputs

 

 

Inputs

 

 

 

Total

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

 

(millions)

 

Money market funds

 

$

37

 

 

$

37

 

 

$

 

 

$

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. stocks

 

 

122

 

 

 

122

 

 

 

 

 

 

 

U.S. pooled funds

 

 

474

 

 

 

474

 

 

 

 

 

 

 

International pooled funds (a)

 

 

357

 

 

 

82

 

 

 

 

 

 

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bonds

 

 

58

 

 

 

 

 

 

58

 

 

 

 

Other Government bonds

 

 

61

 

 

 

 

 

 

61

 

 

 

 

Agency backed bonds

 

 

13

 

 

 

 

 

 

13

 

 

 

 

Corporate bonds

 

 

615

 

 

 

 

 

 

615

 

 

 

 

Mortgage-backed securities

 

 

23

 

 

 

 

 

 

23

 

 

 

 

Asset-backed securities

 

 

10

 

 

 

 

 

 

10

 

 

 

 

Pooled funds

 

 

1,442

 

 

 

1,442

 

 

 

 

 

 

 

Other types of investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate (a)

 

 

37

 

 

 

 

 

 

 

 

 

 

Private equity (a)

 

 

167

 

 

 

 

 

 

 

 

 

 

Derivatives in a positive position

 

 

4

 

 

 

 

 

 

4

 

 

 

 

Derivatives in a negative position

 

 

(6

)

 

 

 

 

 

(6

)

 

 

 

Total

 

$

3,414

 

 

$

2,157

 

 

$

778

 

 

$

 

 

(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.

Estimated Future Benefit Payments

The following benefit payments are estimated to be paid from the Pension Plan:

 

 

 

(millions)

 

Fiscal year

 

 

 

 

2021

 

$

298

 

2022

 

 

250

 

2023

 

 

236

 

2024

 

 

223

 

2025

 

 

210

 

2026-2030

 

 

896

 

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 30, 2021 and February 1, 2020:

 

 

 

2020

 

 

2019

 

 

 

(millions)

 

Change in projected benefit obligation

 

 

 

 

 

 

 

 

Projected benefit obligation, beginning of year

 

$

681

 

 

$

644

 

Service cost

 

 

 

 

 

 

Interest cost

 

 

14

 

 

 

21

 

Actuarial loss

 

 

42

 

 

 

87

 

Benefits paid

 

 

(64

)

 

 

(71

)

Projected benefit obligation, end of year

 

 

673

 

 

 

681

 

Change in plan assets

 

 

 

 

 

 

 

 

Fair value of plan assets, beginning of year

 

 

 

 

 

 

Company contributions

 

 

64

 

 

 

71

 

Benefits paid

 

 

(64

)

 

 

(71

)

Fair value of plan assets, end of year

 

 

 

 

 

 

Funded status at end of year

 

$

(673

)

 

$

(681

)

Amounts recognized in the Consolidated Balance Sheets at January 30, 2021 and

   February 1, 2020

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

(49

)

 

$

(55

)

Other liabilities

 

 

(624

)

 

 

(626

)

 

 

$

(673

)

 

$

(681

)

Amounts recognized in accumulated other comprehensive loss at January 30, 2021 and February 1, 2020

 

 

 

 

 

 

 

 

Net actuarial loss

 

$

301

 

 

$

283

 

Prior service cost

 

 

6

 

 

 

6

 

 

 

$

307

 

 

$

289

 

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:

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(millions)

 

Net Periodic Pension Cost

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

 

 

$

 

 

$

 

Interest cost

 

 

14

 

 

 

21

 

 

 

23

 

Amortization of net actuarial loss

 

 

12

 

 

 

9

 

 

 

7

 

Amortization of prior service cost

 

 

 

 

 

 

 

 

1

 

 

 

 

26

 

 

 

30

 

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Settlement charges

 

 

10

 

 

 

13

 

 

 

10

 

Other Changes in Plan Assets and Projected Benefit Obligation

   Recognized in Other Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

 

 

40

 

 

 

87

 

 

 

(9

)

Amortization of net actuarial loss

 

 

(12

)

 

 

(9

)

 

 

(7

)

Amortization of prior service cost

 

 

 

 

 

 

 

 

(1

)

Settlement charges

 

 

(10

)

 

 

(13

)

 

 

(10

)

 

 

 

18

 

 

 

65

 

 

 

(27

)

Total recognized

 

$

54

 

 

$

108

 

 

$

14

 

Weighted Average Assumptions

The following weighted average assumption was used to determine the projected benefit obligations for the supplementary retirement plan at January 30, 2021 and February 1, 2020:

 

 

 

2020

 

 

2019

 

Discount rate

 

 

2.51

%

 

 

2.89

%

 

The following weighted average assumption was used to determine net pension costs for the supplementary retirement plan:

 

 

 

2020

 

2019

 

2018

Discount rate used to measure interest cost

 

1.65% - 2.44%

 

2.65% - 3.69%

 

3.39% - 4.09%

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

 

 

 

 

2021

 

$

49

 

2022

 

 

49

 

2023

 

 

47

 

2024

 

 

44

 

2025

 

 

44

 

2026-2030

 

 

200