Macy's, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Postretirement Health Care and Life Insurance Benefits (Tables)

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