Retirement Plans (Tables)
|
12 Months Ended |
Feb. 03, 2018 |
|---|
| Schedule of Costs of Retirement Plans |
Retirement expenses, excluding settlement charges, included the following components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
|
(millions) |
401(k) Qualified Defined Contribution Plan |
$ |
93 |
|
|
$ |
94 |
|
|
$ |
88 |
|
Non-Qualified Defined Contribution Plan |
1 |
|
|
2 |
|
|
2 |
|
Pension Plan |
(82 |
) |
|
(83 |
) |
|
(54 |
) |
Supplementary Retirement Plan |
31 |
|
|
31 |
|
|
41 |
|
|
$ |
43 |
|
|
$ |
44 |
|
|
$ |
77 |
|
|
| 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 3, 2018 and January 28, 2017:
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
(millions) |
Change in projected benefit obligation |
|
|
|
Projected benefit obligation, beginning of year |
$ |
3,469 |
|
|
$ |
3,585 |
|
Service cost |
6 |
|
|
5 |
|
Interest cost |
104 |
|
|
108 |
|
Actuarial loss |
82 |
|
|
55 |
|
Benefits paid |
(390 |
) |
|
(284 |
) |
Projected benefit obligation, end of year |
3,271 |
|
|
3,469 |
|
Changes in plan assets |
|
|
|
Fair value of plan assets, beginning of year |
3,374 |
|
|
3,256 |
|
Actual return on plan assets |
425 |
|
|
402 |
|
Company contributions |
— |
|
|
— |
|
Benefits paid |
(390 |
) |
|
(284 |
) |
Fair value of plan assets, end of year |
3,409 |
|
|
3,374 |
|
Funded status at end of year |
$ |
138 |
|
|
$ |
(95 |
) |
Amounts recognized in the Consolidated Balance Sheets at
February 3, 2018 and January 28, 2017 |
|
|
|
Other assets (liabilities) |
$ |
138 |
|
|
$ |
(95 |
) |
|
|
|
|
Amounts recognized in accumulated other comprehensive loss at
February 3, 2018 and January 28, 2017 |
|
|
|
Net actuarial loss |
$ |
992 |
|
|
$ |
1,232 |
|
|
| 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
|
(millions) |
Net Periodic Pension Cost |
|
|
|
|
|
Service cost |
$ |
6 |
|
|
$ |
5 |
|
|
$ |
6 |
|
Interest cost |
104 |
|
|
108 |
|
|
137 |
|
Expected return on assets |
(223 |
) |
|
(227 |
) |
|
(235 |
) |
Amortization of net actuarial loss |
31 |
|
|
31 |
|
|
38 |
|
Amortization of prior service credit |
— |
|
|
— |
|
|
— |
|
|
(82 |
) |
|
(83 |
) |
|
(54 |
) |
|
|
|
|
|
|
Settlement charges |
89 |
|
|
68 |
|
|
— |
|
|
|
|
|
|
|
Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss |
|
|
|
|
|
Net actuarial (gain) loss |
(120 |
) |
|
(120 |
) |
|
92 |
|
Amortization of net actuarial loss |
(31 |
) |
|
(31 |
) |
|
(38 |
) |
Amortization of prior service credit |
— |
|
|
— |
|
|
— |
|
Settlement charges |
(89 |
) |
|
(68 |
) |
|
— |
|
|
(240 |
) |
|
(219 |
) |
|
54 |
|
Total recognized |
$ |
(233 |
) |
|
$ |
(234 |
) |
|
$ |
— |
|
|
| Weighted Average Assumptions |
The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan:
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
Discount rate used to measure service cost |
3.75% - 4.06% |
|
|
3.79% - 4.26% |
|
|
3.55 |
% |
Discount rate used to measure interest cost |
3.12% - 3.31% |
|
|
2.96% - 3.30% |
|
|
3.55 |
% |
Expected long-term return on plan assets |
7.00 |
% |
|
7.00 |
% |
|
7.00 |
% |
Rate of compensation increases |
4.10 |
% |
|
4.10 |
% |
|
4.10 |
% |
The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan at February 3, 2018 and January 28, 2017:
|
|
|
|
|
|
|
|
2017 |
|
2016 |
Discount rate |
3.74 |
% |
|
4.00 |
% |
Rate of compensation increases |
4.00 |
% |
|
4.10 |
% |
|
| Fair Values of Plan Assets |
The fair values of the Pension Plan assets as of February 3, 2018, 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) |
Short term investments |
$ |
5 |
|
|
$ |
— |
|
|
$ |
5 |
|
|
$ |
— |
|
Money market funds |
35 |
|
|
35 |
|
|
— |
|
|
— |
|
Equity securities: |
|
|
|
|
|
|
|
U.S. stocks |
157 |
|
|
157 |
|
|
— |
|
|
— |
|
U.S. pooled funds |
481 |
|
|
481 |
|
|
— |
|
|
— |
|
International pooled funds (a)
|
447 |
|
|
114 |
|
|
— |
|
|
— |
|
Fixed income securities: |
|
|
|
|
|
|
|
U. S. Treasury bonds |
44 |
|
|
— |
|
|
44 |
|
|
— |
|
Other Government bonds |
59 |
|
|
— |
|
|
59 |
|
|
— |
|
Agency backed bonds |
13 |
|
|
— |
|
|
13 |
|
|
— |
|
Corporate bonds |
538 |
|
|
— |
|
|
538 |
|
|
— |
|
Mortgage-backed securities |
15 |
|
|
— |
|
|
15 |
|
|
— |
|
Asset-backed securities |
6 |
|
|
— |
|
|
6 |
|
|
— |
|
Pooled funds |
1,310 |
|
|
1,310 |
|
|
— |
|
|
— |
|
Other types of investments: |
|
|
|
|
|
|
|
Real estate (a)
|
148 |
|
|
— |
|
|
— |
|
|
— |
|
Private equity (a)
|
183 |
|
|
— |
|
|
— |
|
|
— |
|
Derivatives in a positive position |
9 |
|
|
— |
|
|
9 |
|
|
— |
|
Derivatives in a negative position |
(3 |
) |
|
— |
|
|
(3 |
) |
|
— |
|
Total |
$ |
3,447 |
|
|
$ |
2,097 |
|
|
$ |
686 |
|
|
$ |
— |
|
(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 January 28, 2017, 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) |
Short term investments |
$ |
14 |
|
|
$ |
— |
|
|
$ |
14 |
|
|
$ |
— |
|
Money market funds |
74 |
|
|
74 |
|
|
— |
|
|
— |
|
Equity securities: |
|
|
|
|
|
|
|
|
U.S. stocks |
309 |
|
|
309 |
|
|
— |
|
|
— |
|
U.S. pooled funds (a)
|
654 |
|
|
446 |
|
|
— |
|
|
— |
|
International pooled funds (a)
|
649 |
|
|
131 |
|
|
— |
|
|
— |
|
Fixed income securities: |
|
|
|
|
|
|
|
|
U. S. Treasury bonds |
194 |
|
|
— |
|
|
194 |
|
|
— |
|
Other Government bonds |
40 |
|
|
— |
|
|
40 |
|
|
— |
|
Agency backed bonds |
24 |
|
|
— |
|
|
24 |
|
|
— |
|
Corporate bonds |
453 |
|
|
— |
|
|
453 |
|
|
— |
|
Mortgage-backed securities |
85 |
|
|
— |
|
|
85 |
|
|
— |
|
Asset-backed securities |
17 |
|
|
— |
|
|
17 |
|
|
— |
|
Pooled funds |
461 |
|
|
461 |
|
|
— |
|
|
— |
|
Other types of investments: |
|
|
|
|
|
|
|
|
Real estate (a)
|
223 |
|
|
— |
|
|
— |
|
|
— |
|
Private equity (a)
|
186 |
|
|
— |
|
|
— |
|
|
— |
|
Derivatives in a positive position |
13 |
|
|
— |
|
|
13 |
|
|
— |
|
Derivatives in a negative position |
(19 |
) |
|
— |
|
|
(19 |
) |
|
— |
|
Total |
$ |
3,377 |
|
|
$ |
1,421 |
|
|
$ |
821 |
|
|
$ |
— |
|
(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 |
|
2018 |
$ |
335 |
|
2019 |
318 |
|
2020 |
257 |
|
2021 |
247 |
|
2022 |
233 |
|
2023-2027 |
1,045 |
|
|
| 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 February 3, 2018 and January 28, 2017:
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
(millions) |
Change in projected benefit obligation |
|
|
|
Projected benefit obligation, beginning of year |
$ |
747 |
|
|
$ |
823 |
|
Service cost |
— |
|
|
— |
|
Interest cost |
22 |
|
|
22 |
|
Actuarial loss |
20 |
|
|
26 |
|
Benefits paid |
(86 |
) |
|
(124 |
) |
Projected benefit obligation, end of year |
703 |
|
|
747 |
|
Change in plan assets |
|
|
|
Fair value of plan assets, beginning of year |
— |
|
|
— |
|
Company contributions |
86 |
|
|
124 |
|
Benefits paid |
(86 |
) |
|
(124 |
) |
Fair value of plan assets, end of year |
— |
|
|
— |
|
Funded status at end of year |
$ |
(703 |
) |
|
$ |
(747 |
) |
Amounts recognized in the Consolidated Balance Sheets at
February 3, 2018 and January 28, 2017 |
|
|
|
Accounts payable and accrued liabilities |
$ |
(69 |
) |
|
$ |
(86 |
) |
Other liabilities |
(634 |
) |
|
(661 |
) |
|
$ |
(703 |
) |
|
$ |
(747 |
) |
Amounts recognized in accumulated other comprehensive loss at
February 3, 2018 and January 28, 2017 |
|
|
|
Net actuarial loss |
$ |
244 |
|
|
$ |
248 |
|
Prior service cost |
7 |
|
|
8 |
|
|
$ |
251 |
|
|
$ |
256 |
|
|
| 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
|
(millions) |
Net Periodic Pension Cost |
|
|
|
|
|
Service cost |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Interest cost |
22 |
|
|
22 |
|
|
31 |
|
Amortization of net actuarial loss |
8 |
|
|
9 |
|
|
10 |
|
Amortization of prior service cost |
1 |
|
|
— |
|
|
— |
|
|
31 |
|
|
31 |
|
|
41 |
|
|
|
|
|
|
|
Settlement charges |
16 |
|
|
30 |
|
|
— |
|
|
|
|
|
|
|
Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss |
|
|
|
|
|
Net actuarial (gain) loss |
20 |
|
|
26 |
|
|
(70 |
) |
Prior service cost |
— |
|
|
— |
|
|
— |
|
Amortization of net actuarial loss |
(8 |
) |
|
(9 |
) |
|
(10 |
) |
Amortization of prior service cost |
(1 |
) |
|
— |
|
|
— |
|
Settlement charges |
(16 |
) |
|
(30 |
) |
|
— |
|
|
(5 |
) |
|
(13 |
) |
|
(80 |
) |
Total recognized |
$ |
42 |
|
|
$ |
48 |
|
|
$ |
(39 |
) |
|
| Weighted Average Assumptions |
The following weighted average assumption was used to determine the projected benefit obligations for the supplementary retirement plan at February 3, 2018 and January 28, 2017:
|
|
|
|
|
|
|
|
2017 |
|
2016 |
Discount rate |
3.78 |
% |
|
4.07 |
% |
The following weighted average assumption was used to determine net pension costs for the supplementary retirement plan:
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
Discount rate used to measure interest cost |
3.10% - 3.26% |
|
2.65% - 3.16% |
|
3.55 |
% |
|
| 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 |
|
2018 |
$ |
69 |
|
2019 |
49 |
|
2020 |
48 |
|
2021 |
49 |
|
2022 |
48 |
|
2023-2027 |
223 |
|
|