Annual report pursuant to Section 13 and 15(d)

Retirement Plans (Tables)

Retirement Plans (Tables)

12 Months Ended

Jan. 29, 2022

Pension And Other Postretirement Benefit Expense [Abstract]

Retirement expenses, excluding settlement charges, included the following components:

	2021			2020			2019
				(millions)
401(k) Qualified Defined Contribution Plan	$	76		$	68		$	96
Non-Qualified Defined Contribution Plan		1			1			2
Pension Plan		(85	)		(73	)		(54	)
Supplementary Retirement Plan		24			26			30
	$	16		$	22		$	74

Reconciliation of Benefit Obligations, Plan Assets, and Funded Status Pension Plan and SERP

The following provides a reconciliation of benefit obligations, plan assets, and funded status of the Pension Plan and SERP as of January 29, 2022 and January 30, 2021:

	Pension Plan						SERP
	2021			2020			2021			2020
	(millions)
Change in projected benefit obligation
Projected benefit obligation, beginning of year	$	3,030		$	3,321		$	673		$	681
Service cost		1			4			—			—
Interest cost		49			66			11			14
Actuarial (gain) loss		(172	)		12			(32	)		42
Benefits paid		(502	)		(373	)		(46	)		(64	)
Projected benefit obligation, end of year		2,406			3,030			606			673
Changes in plan assets
Fair value of plan assets, beginning of year		3,359			3,359			—			—
Actual return on plan assets		43			373			—			—
Company contributions		—			—			46			64
Benefits paid		(502	)		(373	)		(46	)		(64	)
Fair value of plan assets, end of year		2,900			3,359			—			—
Funded status at end of year	$	494		$	329		$	(606	)	$	(673	)
Amounts recognized in the Consolidated Balance Sheets at January 29, 2022 and January 30, 2021
Other assets	$	494		$	329		$	—		$	—
Accounts payable and accrued liabilities		—			—			(47	)		(49	)
Other liabilities		—			—			(559	)		(624	)
	$	494		$	329		$	(606	)	$	(673	)
Amounts recognized in accumulated other comprehensive loss at January 29, 2022 and January 30, 2021
Net actuarial loss	$	617		$	794		$	257		$	301
Prior service cost		—			—			5			6
	$	617		$	794		$	262		$	307

Schedule of Net Periodic Benefit Costs

Net pension costs, settlement charges and other amounts recognized in other comprehensive loss for the Pension Plan and SERP included the following actuarially determined components:

	Pension Plan									SERP
	2021			2020			2019			2021			2020			2019
	(millions)
Net Periodic Pension Cost
Service cost	$	1		$	4		$	5		$	—		$	—		$	—
Interest cost		49			66			103			11			14			21
Expected return on assets		(161	)		(183	)		(191	)		—			—			—
Amortization of net actuarial loss		26			40			29			13			12			9
		(85	)		(73	)		(54	)		24			26			30

Settlement charges		96			74			45			—			10			13
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Loss
Net actuarial (gain) loss		(55	)		(178	)		51			(32	)		40			87
Amortization of net actuarial loss		(26	)		(40	)		(29	)		(13	)		(12	)		(9	)
Settlement charges		(96	)		(74	)		(45	)		—			(10	)		(13	)
		(177	)		(292	)		(23	)		(45	)		18			65
Total recognized	$	(166	)	$	(291	)	$	(32	)	$	(21	)	$	54		$	108

Weighted Average Assumptions

In 2020 and 2021, the Company incurred non-cash settlement charges of $84 million and $96 million, respectively. For 2020, these charges related to the pro-rata recognition of net actuarial losses associated with the Company’s defined benefit retirement plans and were the result of lump sum distributions associated with retiree distribution elections and restructuring activity. For 2021, these charges relate to the pro-rata recognition of net actuarial losses associated with the Company’s Pension Plan and is the result of the transfer of pension obligations for certain retirees and beneficiaries under the Pension Plan through the purchase of a group annuity contract with an insurance company. The Company transferred $256 million of Pension Plan assets to the insurance company in the second quarter of 2021, thereby reducing its Pension Plan benefit obligations.

The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan and SERP at January 29, 2022 and January 30, 2021:

	Pension Plan						SERP
	2021			2020			2021			2020
Discount rate		3.06	%		2.43	%		3.10	%		2.51	%
Rate of compensation increases		3.50	%		3.45	%		—			—
Cash balance plan interest crediting rate		5.00	%		5.00	%		—			—

The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan and SERP:

	Pension Plan									SERP
	2021			2020			2019			2021			2020		2019
Discount rate used to measure service cost	2.69% - 3.07%			2.35% - 2.96%				4.09	%		—			—		—
Discount rate used to measure interest cost	1.76% - 2.07%			1.65% - 2.46%				3.67	%		1.74	%	1.65% - 2.44%		2.65% - 3.69%
Expected long-term return on plan assets		5.75	%		6.25	%		6.50	%		—			—		—
Rate of compensation increases		3.45	%		3.25	%		4.00	%		—			—		—
Cash balance plan interest crediting rate		5.00	%		5.00	%		5.00	%		—			—		—

Fair Values of Plan Assets

The fair values of the Pension Plan assets as of January 29, 2022 and January 30, 2021, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:

	Fair Value Category	2021			2020
		(millions)
Short term investments	Level 2	$	10		$	3
Money market funds	Level 1		206			136
Equity securities:
U.S. pooled funds	Level 1		77			356
International pooled funds	Level 1		31			37
Fixed income securities:
U.S. Treasury bonds	Level 2		121			270
Other Government bonds	Level 2		74			63
Corporate bonds	Level 2		1,877			1,609
Mortgage-backed securities	Level 2		10			11
Asset-backed securities	Level 2		1			1
Pooled funds	Level 1		72			271
Other types of investments:
Derivatives in a positive position	Level 2		12			8
Derivatives in a negative position	Level 1		—			(4	)
Derivatives in a negative position	Level 2		(1	)		—
Pooled funds (a)			164			296
Real estate (a)			32			31
Private equity (a)			186			160
Total		$	2,872		$	3,248

(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 and from the SERP:

	Pension Plan		SERP
	(millions)
Fiscal year
2022	$	224	$	47
2023		206		47
2024		193		45
2025		188		44
2026		180		48
2027-2031		768		190