Annual report pursuant to Section 13 and 15(d)

Retirement Plans (Tables)

v2.4.1.9
Retirement Plans (Tables)
12 Months Ended
Jan. 31, 2015
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 31, 2015 and February 1, 2014:
 
 
2014
 
2013
 
(millions)
Change in projected benefit obligation
 
 
 
Projected benefit obligation, beginning of year
$
3,473

 
$
3,555

Service cost
6

 
112

Interest cost
151

 
143

Actuarial (gain) loss
563

 
(117
)
Benefits paid
(227
)
 
(220
)
Projected benefit obligation, end of year
3,966

 
3,473

Changes in plan assets
 
 
 
Fair value of plan assets, beginning of year
3,546

 
3,387

Actual return on plan assets
317

 
379

Company contributions

 

Benefits paid
(227
)
 
(220
)
Fair value of plan assets, end of year
3,636

 
3,546

Funded status at end of year
$
(330
)
 
$
73

Amounts recognized in the Consolidated Balance Sheets at
January 31, 2015 and February 1, 2014
 
 
 
Other assets
$

 
$
73

Other liabilities
(330
)
 

 
$
(330
)
 
$
73

Amounts recognized in accumulated other comprehensive loss at
January 31, 2015 and February 1, 2014
 
 
 
Net actuarial loss
$
1,397

 
$
931

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:
 
 
2014
 
2013
 
2012
 
(millions)
Net Periodic Pension Cost
 
 
 
 
 
Service cost
$
6

 
$
112

 
$
117

Interest cost
151

 
143

 
157

Expected return on assets
(246
)
 
(242
)
 
(253
)
Amortization of net actuarial loss
25

 
141

 
141

Amortization of prior service credit

 

 
(1
)
 
(64
)
 
154

 
161

Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
 
 
 
 
 
Net actuarial (gain) loss
491

 
(254
)
 
(91
)
Amortization of net actuarial loss
(25
)
 
(141
)
 
(141
)
Amortization of prior service credit

 

 
1

 
466

 
(395
)
 
(231
)
Total recognized in net periodic pension cost and
other comprehensive loss
$
402

 
$
(241
)
 
$
(70
)

Weighted Average Assumptions
The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan at January 31, 2015 and February 1, 2014:
 
 
2014
 
2013
Discount rate
3.55
%
 
4.50
%
Rate of compensation increases
4.10
%
 
4.10
%
The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan:
 
 
2014
 
2013
 
2012
Discount rate
4.50
%
 
4.15
%
 
4.65
%
Expected long-term return on plan assets
7.50
%
 
7.50
%
 
8.00
%
Rate of compensation increases
4.10
%
 
4.50
%
 
4.50
%
Fair Values of Plan Assets
The fair values of the Pension Plan assets as of January 31, 2015, 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
$
248

 
$

 
$
248

 
$

Equity securities:
 
 
 
 
 
 
 
U.S. 
821

 
344

 
477

 

International
659

 

 
659

 

Fixed income securities:
 
 
 
 
 
 
 
U. S. Treasury bonds
272

 

 
272

 

Other Government bonds
55

 

 
55

 

Agency backed bonds
28

 

 
28

 

Corporate bonds
434

 

 
434

 

Mortgage-backed securities and forwards
91

 

 
91

 

Asset-backed securities
19

 

 
19

 

Pooled funds
458

 

 
458

 

Other types of investments:
 
 
 
 
 
 
 
Real estate
244

 

 

 
244

Hedge funds
175

 

 

 
175

Private equity
181

 

 

 
181

Total
$
3,685

 
$
344

 
$
2,741

 
$
600

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


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 2014 and 2013:
 
 
2014
 
2013
 
(millions)
Balance, beginning of year
$
548

 
$
594

Actual gain on plan assets:
 
 
 
Relating to assets still held at the reporting date
18

 
1

Relating to assets sold during the period
22

 
48

Purchases
71

 
77

Sales
(59
)
 
(172
)
Balance, end of year
$
600

 
$
548

Estimated Future Benefit Payments
The following benefit payments are estimated to be paid from the Pension Plan:
 
 
(millions)
Fiscal year
 
2015
$
301

2016
286

2017
280

2018
272

2019
270

2020-2024
1,236

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 31, 2015 and February 1, 2014:
 
 
2014
 
2013
 
(millions)
Change in projected benefit obligation
 
 
 
Projected benefit obligation, beginning of year
$
770

 
$
795

Service cost

 
6

Interest cost
33

 
32

Actuarial (gain) loss
170

 
(17
)
Plan amendment

 
8

Benefits paid
(53
)
 
(54
)
Projected benefit obligation, end of year
920

 
770

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

 

Company contributions
53

 
54

Benefits paid
(53
)
 
(54
)
Fair value of plan assets, end of year

 

Funded status at end of year
$
(920
)
 
$
(770
)
Amounts recognized in the Consolidated Balance Sheets at
January 31, 2015 and February 1, 2014
 
 
 
Accounts payable and accrued liabilities
$
(69
)
 
$
(59
)
Other liabilities
(851
)
 
(711
)
 
$
(920
)
 
$
(770
)
Amounts recognized in accumulated other comprehensive loss at
January 31, 2015 and February 1, 2014
 
 
 
Net actuarial loss
$
341

 
$
176

Prior service cost
8

 
8

 
$
349

 
$
184

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:
 
 
2014
 
2013
 
2012
 
(millions)
Net Periodic Pension Cost
 
 
 
 
 
Service cost
$

 
$
6

 
$
6

Interest cost
33

 
32

 
35

Amortization of net actuarial loss
5

 
19

 
17

Amortization of prior service credit

 

 
(1
)
 
38

 
57

 
57

Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
 
 
 
 
 
Net actuarial (gain) loss
170

 
(17
)
 
34

Prior service cost

 
8

 

Amortization of net actuarial loss
(5
)
 
(19
)
 
(17
)
Amortization of prior service credit

 

 
1

 
165

 
(28
)
 
18

Total recognized in net periodic pension cost and
other comprehensive loss
$
203

 
$
29

 
$
75


Weighted Average Assumptions
The following weighted average assumption was used to determine the projected benefit obligations for the supplementary retirement plan at January 31, 2015 and February 1, 2014:
 
 
2014
 
2013
Discount rate
3.55
%
 
4.50
%
The following weighted average assumptions were used to determine net pension costs for the supplementary retirement plan:
 
 
2014
 
2013
 
2012
Discount rate
4.50
%
 
4.15
%
 
4.65
%
Rate of compensation increases
N/A

 
4.90
%
 
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
 
2015
$
69

2016
68

2017
70

2018
64

2019
68

2020-2024
267