Annual report pursuant to Section 13 and 15(d)

Retirement Plans (Tables)

v3.23.1
Retirement Plans (Tables)
 12 Months Ended
Jan. 28, 2023
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]  
Schedule of Costs of Retirement Plans
Retirement expenses, excluding settlement charges, included the following components:
2022 2021 2020
(millions)
401(k) Qualified Defined Contribution Plan $ 86  $ 76  $ 68 
Non-Qualified Defined Contribution Plan 1  1  1 
Pension Plan (42) (85) (73)
Supplementary Retirement Plan 26  24  26 
Postretirement Obligations (4) (4) (3)
$ 67  $ 12  $ 19 
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 28, 2023 and January 29, 2022:
Pension Plan SERP
2022 2021 2022 2021
(millions)
Change in projected benefit obligation
Projected benefit obligation, beginning of year $ 2,406  $ 3,030  $ 606  $ 673 
Service cost —  1  —  — 
Interest cost 68  49  15  11 
Actuarial gain (301) (172) (71) (32)
Benefits paid (194) (502) (42) (46)
Projected benefit obligation, end of year 1,979  2,406  508  606 
Changes in plan assets        
Fair value of plan assets, beginning of year 2,900  3,359  —  — 
Actual return (loss) on plan assets (317) 43  —  — 
Company contributions —  —  42  46 
Benefits paid (194) (502) (42) (46)
Fair value of plan assets, end of year 2,389  2,900  —  — 
Funded status at end of year $ 410  $ 494  $ (508) $ (606)
Amounts recognized in the Consolidated Balance Sheets at January 28, 2023 and January 29, 2022
        
Other assets $ 410  $ 494  $ —  $ — 
Accounts payable and accrued liabilities —  —  (48) (47)
Other liabilities —  —  (460) (559)
$ 410  $ 494  $ (508) $ (606)
Amounts recognized in accumulated other comprehensive loss at January 28, 2023 and January 29, 2022
        
Net actuarial loss $ 704  $ 617  $ 175  $ 257 
Prior service cost —  —  5  5 
$ 704  $ 617  $ 180  $ 262 
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
2022 2021 2020 2022 2021 2020
(millions)
Net Periodic Pension Cost
Service cost $ —  $ 1  $ 4  $ —  $ —  $ — 
Interest cost 68  49  66  15  11  14 
Expected return on assets (122) (161) (183) —  —  — 
Amortization of net actuarial loss 12  26  40  11  13  12 
(42) (85) (73) 26  24  26 
           
Settlement charges 39  96  74  —  —  10 
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Loss            
Net actuarial (gain) loss 138  (55) (178) (71) (32) 40 
Amortization of net actuarial loss (12) (26) (40) (11) (13) (12)
Settlement charges (39) (96) (74) —  —  (10)
87  (177) (292) (82) (45) 18 
Total recognized $ 84  $ (166) $ (291) $ (56) $ (21) $ 54 
Weighted Average Assumptions
The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan and SERP at January 28, 2023 and January 29, 2022:
Pension Plan SERP
2022 2021 2022 2021
Discount rate 4.73  % 3.06  % 4.74  % 3.10  %
Rate of compensation increases 3.50  % 3.50  % —  — 
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
2022 2021 2020 2022 2021 2020
Discount rate used to measure service cost
3.35% - 5.76%
2.69% - 3.07%
2.35% - 2.96%
 —  —  — 
Discount rate used to measure interest cost
2.55% - 5.49%
1.76% - 2.07%
1.65% - 2.46%
 2.53  % 1.74  %
1.65% - 2.44%
Expected long-term return on plan assets 4.60  % 5.75  % 6.25  % —  —  — 
Rate of compensation increases 3.50  % 3.45  % 3.25  % —  —  — 
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 28, 2023 and January 29, 2022, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:
Fair Value Category 2022 2021
(millions)
Short term investments Level 2 $ —  $ 10 
Money market funds Level 1 78  206 
Equity securities:      
U.S. pooled funds Level 1 69  77 
International pooled funds Level 1 26  31 
Fixed income securities:      
U.S. Treasury bonds Level 2 41  121 
Other Government bonds Level 2 60  74 
Corporate bonds Level 2 1,592  1,877 
Mortgage-backed securities Level 2 14  10 
Asset-backed securities Level 2 —  1 
Pooled funds Level 1 48  72 
Other types of investments:      
Derivatives in a positive position Level 2 11  12 
Derivatives in a negative position Level 2 (3) (1)
Pooled funds (a) 271  164 
Real estate (a) 19  32 
Private equity (a) 133  186 
Total $ 2,359  $ 2,872 
(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
2023 $ 215  $ 48 
2024 192  46 
2025 187  44 
2026 180  49 
2027 171  42 
2028-2032 725  185