Annual report pursuant to Section 13 and 15(d)

Retirement Plans (Tables)

v3.24.1
Retirement Plans (Tables)
 12 Months Ended
Feb. 03, 2024
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:
2023 2022 2021
(millions)
401(k) Qualified Defined Contribution Plan $ 85  $ 86  $ 76 
Non-Qualified Defined Contribution Plan 1  1  1 
Pension Plan (38) (42) (85)
Supplementary Retirement Plan 30  26  24 
Postretirement Obligations (3) (4) (4)
$ 75  $ 67  $ 12 
Schedule of 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 February 3, 2024 and January 28, 2023:
Pension Plan SERP
2023 2022 2023 2022
(millions)
Change in projected benefit obligation
Projected benefit obligation, beginning of year $ 1,979  $ 2,406  $ 508  $ 606 
Interest cost 83  68  23  15 
Actuarial gain (65) (301) (19) (71)
Benefits paid (441) (194) (45) (42)
Projected benefit obligation, end of year 1,556  1,979  467  508 
Changes in plan assets        
Fair value of plan assets, beginning of year 2,389  2,900  —  — 
Actual return (loss) on plan assets 63  (317) —  — 
Company contributions —  —  45  42 
Benefits paid (441) (194) (45) (42)
Fair value of plan assets, end of year 2,011  2,389  —  — 
Funded status at end of year $ 455  $ 410  $ (467) $ (508)
Amounts recognized in the Consolidated Balance Sheets at February 3, 2024 and January 28, 2023
        
Other assets $ 455  $ 410  $ —  $ — 
Accounts payable and accrued liabilities —  —  (53) (48)
Other liabilities —  —  (414) (460)
$ 455  $ 410  $ (467) $ (508)
Amounts recognized in accumulated other comprehensive loss at February 3, 2024 and January 28, 2023
        
Net actuarial loss $ 563  $ 704  $ 149  $ 175 
Prior service cost —  —  4  5 
$ 563  $ 704  $ 153  $ 180 
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
2023 2022 2021 2023 2022 2021
(millions)
Net Periodic Pension Cost
Service cost $ —  $ —  $ 1  $ —  $ —  $ — 
Interest cost 83  68  49  23  15  11 
Expected return on assets (125) (122) (161) —  —  — 
Amortization of net actuarial loss 4  12  26  7  11  13 
(38) (42) (85) 30  26  24 
           
Settlement charges 134  39  96  —  —  — 
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Income (Loss)            
Net actuarial (gain) loss (3) 138  (55) (19) (71) (32)
Amortization of net actuarial loss (4) (12) (26) (7) (11) (13)
Settlement charges (134) (39) (96) —  —  — 
(141) 87  (177) (26) (82) (45)
Total recognized $ (45) $ 84  $ (166) $ 4  $ (56) $ (21)
Schedule of Weighted Average Assumptions
The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan and SERP at February 3, 2024 and January 28, 2023:
Pension Plan SERP
2023 2022 2023 2022
Discount rate 5.06  % 4.73  % 5.08  % 4.74  %
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
2023 2022 2021 2023 2022 2021
Discount rate used to measure service cost
4.88% - 6.27%
3.35% - 5.76%
2.69% - 3.07%
 —  —  — 
Discount rate used to measure interest cost
4.72% - 5.96%
2.55% - 5.49%
1.76% - 2.07%
 4.71  % 2.53  % 1.74  %
Expected long-term return on plan assets 5.30  % 4.60  % 5.75  % —  —  — 
Rate of compensation increases 3.50  % 3.50  % 3.45  % —  —  — 
Cash balance plan interest crediting rate 5.00  % 5.00  % 5.00  % —  —  — 
Schedule of Fair Values of Plan Assets
The fair values of the Pension Plan assets as of February 3, 2024 and January 28, 2023, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:
Fair Value Category 2023 2022
(millions)
Money market funds Level 1 82  78 
Equity securities:      
U.S. pooled funds Level 1 62  69 
International pooled funds Level 1 27  26 
Fixed income securities:      
U.S. Treasury bonds Level 2 20  41 
Other Government bonds Level 2 58  60 
Corporate bonds Level 2 1,270  1,592 
Mortgage-backed securities Level 2 33  14 
Pooled funds Level 1 37  48 
Other types of investments:      
Derivatives in a positive position Level 2 9  11 
Derivatives in a negative position Level 2 (2) (3)
Pooled funds (a) 274  271 
Real estate (a) 15  19 
Private equity (a) 114  133 
Total $ 2,000  $ 2,359 
(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.
Schedule of 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
2024 $ 193  $ 53 
2025 160  42 
2026 154  46 
2027 145  40 
2028 138  42 
2029-2033 576  171