Annual report pursuant to Section 13 and 15(d)

Retirement Plans (Tables)

v2.4.0.8
Retirement Plans (Tables)
12 Months Ended
Feb. 01, 2014
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 February 1, 2014 and February 2, 2013:
 
 
2013
 
2012
 
(millions)
Change in projected benefit obligation
 
 
 
Projected benefit obligation, beginning of year
$
3,555

 
$
3,458

Service cost
112

 
117

Interest cost
143

 
157

Actuarial (gain) loss
(117
)
 
283

Benefits paid
(220
)
 
(206
)
Actuarial gain due to curtailment

 
(254
)
Projected benefit obligation, end of year
3,473

 
3,555

Changes in plan assets
 
 
 
Fair value of plan assets, beginning of year
3,387

 
3,069

Actual return on plan assets
379

 
374

Company contributions

 
150

Benefits paid
(220
)
 
(206
)
Fair value of plan assets, end of year
3,546

 
3,387

Funded status at end of year
$
73

 
$
(168
)
Amounts recognized in the Consolidated Balance Sheets at
February 1, 2014 and February 2, 2013
 
 
 
Other assets
$
73

 
$

Other liabilities

 
(168
)
 
$
73

 
$
(168
)
Amounts recognized in accumulated other comprehensive loss at
February 1, 2014 and February 2, 2013
 
 
 
Net actuarial loss
$
931

 
$
1,326

Schedule of Net Periodic Benefit Costs
Net pension costs and other amounts recognized in other comprehensive loss for the Pension Plan included the following actuarially determined components:
 
 
2013
 
2012
 
2011
 
(millions)
Net Periodic Pension Cost
 
 
 
 
 
Service cost
$
112

 
$
117

 
$
102

Interest cost
143

 
157

 
160

Expected return on assets
(242
)
 
(253
)
 
(248
)
Amortization of net actuarial loss
141

 
141

 
88

Amortization of prior service credit

 
(1
)
 
(1
)
 
154

 
161

 
101

Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
 
 
 
 
 
Net actuarial (gain) loss
(254
)
 
(91
)
 
530

Amortization of net actuarial loss
(141
)
 
(141
)
 
(88
)
Amortization of prior service credit

 
1

 
1

 
(395
)
 
(231
)
 
443

Total recognized in net periodic pension cost and
other comprehensive loss
$
(241
)
 
$
(70
)
 
$
544


Weighted Average Assumptions
The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan at February 1, 2014 and February 2, 2013:
 
 
2013
 
2012
Discount rate
4.50
%
 
4.15
%
Rate of compensation increases
4.10
%
 
4.50
%
The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan:
 
 
2013
 
2012
 
2011
Discount rate
4.15
%
 
4.65
%
 
5.40
%
Expected long-term return on plan assets
7.50
%
 
8.00
%
 
8.00
%
Rate of compensation increases
4.50
%
 
4.50
%
 
4.50
%
Fair Values of Plan Assets
The fair values of the Pension Plan assets as of February 1, 2014, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:
 
 
Fair Value Measurements
 
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(millions)
Cash and cash equivalents
$
211

 
$

 
$
211

 
$

Equity securities:
 
 
 
 
 
 
 
U.S. 
834

 
354

 
480

 

International
748

 

 
748

 

Fixed income securities:
 
 
 
 
 
 
 
U. S. Treasury bonds
221

 

 
221

 

Other Government bonds
39

 

 
39

 

Agency backed bonds
22

 

 
22

 

Corporate bonds
388

 

 
388

 

Mortgage-backed securities and forwards
95

 

 
95

 

Asset-backed securities
20

 

 
20

 

Pooled funds
454

 

 
454

 

Other types of investments:
 
 
 
 
 
 
 
Real estate
214

 

 

 
214

Hedge funds
167

 

 

 
167

Private equity
167

 

 

 
167

Total
$
3,580

 
$
354

 
$
2,678

 
$
548

The fair values of the Pension Plan assets as of February 2, 2013, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:
 
 
Fair Value Measurements
 
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(millions)
Cash and cash equivalents
$
204

 
$

 
$
204

 
$

Equity securities:
 
 
 
 
 
 
 
U.S. 
832

 
290

 
542

 

International
818

 

 
818

 

Fixed income securities:
 
 
 
 
 
 
 
U. S. Treasury bonds
136

 

 
136

 

Other Government bonds
34

 

 
34

 

Agency backed bonds
6

 

 
6

 

Corporate bonds
338

 

 
338

 

Mortgage-backed securities and forwards
102

 

 
102

 

Asset-backed securities
24

 

 
24

 

Pooled funds
303

 

 
303

 

Other types of investments:
 
 
 
 
 
 
 
Real estate
280

 

 

 
280

Hedge funds
154

 

 

 
154

Private equity
160

 

 

 
160

Total
$
3,391

 
$
290

 
$
2,507

 
$
594


Changes in Fair Value of Level 3 Assets
The following table sets forth a summary of changes in fair value of the Pension Plan’s level 3 assets for 2013 and 2012:
 
 
2013
 
2012
 
(millions)
Balance, beginning of year
$
594

 
$
533

Actual gain on plan assets:
 
 
 
Relating to assets still held at the reporting date
1

 
7

Relating to assets sold during the period
48

 
23

Purchases
77

 
71

Sales
(172
)
 
(40
)
Balance, end of year
$
548

 
$
594

Estimated Future Benefit Payments
The following benefit payments are estimated to be paid from the Pension Plan:
 
 
(millions)
Fiscal year
 
2014
$
274

2015
256

2016
248

2017
244

2018
240

2019-2023
1,107

Supplementary Retirement 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 supplementary retirement plan as of February 1, 2014 and February 2, 2013:
 
 
2013
 
2012
 
(millions)
Change in projected benefit obligation
 
 
 
Projected benefit obligation, beginning of year
$
795

 
$
771

Service cost
6

 
6

Interest cost
32

 
35

Actuarial (gain) loss
(17
)
 
76

Plan amendment
8

 

Benefits paid
(54
)
 
(51
)
Actuarial gain due to curtailment

 
(42
)
Projected benefit obligation, end of year
770

 
795

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

 

Company contributions
54

 
51

Benefits paid
(54
)
 
(51
)
Fair value of plan assets, end of year

 

Funded status at end of year
$
(770
)
 
$
(795
)
Amounts recognized in the Consolidated Balance Sheets at
February 1, 2014 and February 2, 2013
 
 
 
Accounts payable and accrued liabilities
$
(59
)
 
$
(58
)
Other liabilities
(711
)
 
(737
)
 
$
(770
)
 
$
(795
)
Amounts recognized in accumulated other comprehensive loss at
February 1, 2014 and February 2, 2013
 
 
 
Net actuarial loss
$
176

 
$
212

Prior service cost
8

 

 
$
184

 
$
212

Schedule of Net Periodic Benefit Costs
Net pension costs and other amounts recognized in other comprehensive loss for the supplementary retirement plan included the following actuarially determined components:
 
 
2013
 
2012
 
2011
 
(millions)
Net Periodic Pension Cost
 
 
 
 
 
Service cost
$
6

 
$
6

 
$
6

Interest cost
32

 
35

 
36

Amortization of net actuarial loss
19

 
17

 
8

Amortization of prior service credit

 
(1
)
 
(1
)
 
57

 
57

 
49

Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
 
 
 
 
 
Net actuarial (gain) loss
(17
)
 
34

 
90

Prior service cost
8

 

 

Amortization of net actuarial loss
(19
)
 
(17
)
 
(8
)
Amortization of prior service credit

 
1

 
1

 
(28
)
 
18

 
83

Total recognized in net periodic pension cost and
other comprehensive loss
$
29

 
$
75

 
$
132


Weighted Average Assumptions
The following weighted average assumptions were used to determine net pension costs for the supplementary retirement plan:
 
 
2013
 
2012
 
2011
Discount rate
4.15
%
 
4.65
%
 
5.40
%
Rate of compensation increases
4.90
%
 
4.90
%
 
4.90
%

The following weighted average assumptions were used to determine the projected benefit obligations for the supplementary retirement plan at February 1, 2014 and February 2, 2013:
 
 
2013
 
2012
Discount rate
4.50
%
 
4.15
%
Rate of compensation increases
N/A

 
4.90
%
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
 
2014
$
59

2015
63

2016
62

2017
63

2018
59

2019-2023
277