Annual report pursuant to Section 13 and 15(d)

Postretirement Health Care and Life Insurance Benefits (Tables)

v3.21.1
Postretirement Health Care and Life Insurance Benefits (Tables) - Other Postretirement Benefits Plan [Member]
12 Months Ended
Jan. 30, 2021
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 January 30, 2021 and February 1, 2020:

 

 

 

2020

 

 

2019

 

 

 

(millions)

 

Change in accumulated postretirement benefit obligation

 

 

 

 

 

 

 

 

Accumulated postretirement benefit obligation, beginning of year

 

$

133

 

 

$

137

 

Service cost

 

 

 

 

 

 

Interest cost

 

 

2

 

 

 

5

 

Actuarial loss (gain)

 

 

(6

)

 

 

5

 

Medicare Part D subsidy

 

 

 

 

 

 

Benefits paid

 

 

(10

)

 

 

(14

)

Accumulated postretirement benefit obligation, end of year

 

 

119

 

 

 

133

 

Change in plan assets

 

 

 

 

 

 

 

 

Fair value of plan assets, beginning of year

 

 

 

 

 

 

Company contributions

 

 

10

 

 

 

14

 

Benefits paid

 

 

(10

)

 

 

(14

)

Fair value of plan assets, end of year

 

 

 

 

 

 

Funded status at end of year

 

$

(119

)

 

$

(133

)

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

   February 1, 2020

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

(13

)

 

$

(14

)

Other liabilities

 

 

(106

)

 

 

(119

)

 

 

$

(119

)

 

$

(133

)

Amounts recognized in accumulated other comprehensive loss at

  January 30, 2021 and February 1, 2020

 

 

 

 

 

 

 

 

Net actuarial gain

 

$

(32

)

 

$

(30

)

Prior service credit

 

 

(7

)

 

 

(8

)

 

 

$

(39

)

 

$

(38

)

Schedule of Net Periodic Benefit Costs

Net postretirement benefit costs and other amounts recognized in other comprehensive loss included the following actuarially determined components:

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(millions)

 

Net Periodic Postretirement Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

 

 

$

 

 

$

 

Interest cost

 

 

2

 

 

 

5

 

 

 

5

 

Amortization of net actuarial gain

 

 

(4

)

 

 

(6

)

 

 

(5

)

Amortization of prior service credit

 

 

(1

)

 

 

(1

)

 

 

(1

)

 

 

 

(3

)

 

 

(2

)

 

 

(1

)

Other Changes in Plan Assets and Projected Benefit Obligation

   Recognized in Other Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

 

 

(6

)

 

 

5

 

 

 

(11

)

Amortization of net actuarial gain

 

 

4

 

 

 

6

 

 

 

5

 

Amortization of prior service credit

 

 

1

 

 

 

1

 

 

 

1

 

Prior service credit

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

12

 

 

 

(5

)

Total recognized

 

$

(4

)

 

$

10

 

 

$

(6

)

Weighted Average Assumptions

The following weighted average assumption was used to determine the accumulated postretirement benefit obligations at January 30, 2021 and February 1, 2020:

 

 

 

2020

 

 

2019

 

Discount rate

 

 

2.32

%

 

 

2.81

%

 

The following weighted average assumption was used to determine the net postretirement benefit costs for the postretirement obligations:

 

 

 

2020

 

 

2019

 

 

2018

 

Discount rate used to measure interest cost

 

 

2.30

%

 

 

3.57

%

 

 

3.28

%

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 January 30, 2021 and February 1, 2020:

 

 

 

2020

 

 

2019

 

Health care cost trend rates assumed for next year

 

4.9% - 8.0%

 

 

5.25% - 8.63%

 

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

 

2029

 

 

2027

 

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

 

 

 

(millions)

 

Fiscal Year

 

 

 

 

2021

 

$

13

 

2022

 

 

12

 

2023

 

 

11

 

2024

 

 

10

 

2025

 

 

9

 

2026-2030

 

 

36