Annual report [Section 13 and 15(d), not S-K Item 405]

Retirement Plans (Tables)

v3.25.1
Retirement Plans (Tables)
12 Months Ended
Feb. 01, 2025
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]  
Schedule of Costs of Retirement Plans
Retirement expenses (income), excluding settlement charges, included the following components:
2024 2023 2022
(millions)
401(k) Qualified Defined Contribution Plan $ 89  $ 85  $ 86 
Non-Qualified Defined Contribution Plan
Pension Plan (40) (38) (42)
Supplementary Retirement Plan 28  30  26 
Postretirement Obligations (4) (3) (4)
$ 74  $ 75  $ 67 
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 1, 2025 and February 3, 2024:
Pension Plan SERP
2024 2023 2024 2023
(millions)
Change in projected benefit obligation
Projected benefit obligation, beginning of year $ 1,556  $ 1,979  $ 467  $ 508 
Interest cost 73  83  22  23 
Actuarial gain (57) (65) (17) (19)
Benefits paid (181) (441) (47) (45)
Projected benefit obligation, end of year 1,391  1,556  425  467 
Changes in plan assets        
Fair value of plan assets, beginning of year 2,011  2,389  —  — 
Actual return on plan assets 51  63  —  — 
Company contributions —  —  47  45 
Benefits paid (181) (441) (47) (45)
Fair value of plan assets, end of year 1,881  2,011  —  — 
Funded status at end of year $ 490  $ 455  $ (425) $ (467)
Amounts recognized in the Consolidated Balance Sheets at February 1, 2025 and February 3, 2024
       
Other assets $ 490  $ 455  $ —  $ — 
Accounts payable and accrued liabilities —  —  (43) (53)
Other liabilities —  —  (382) (414)
$ 490  $ 455  $ (425) $ (467)
Amounts recognized in accumulated other comprehensive loss at February 1, 2025 and February 3, 2024
       
Net actuarial loss $ 521  $ 563  $ 126  $ 149 
Prior service cost —  — 
$ 521  $ 563  $ 130  $ 153 
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
2024 2023 2022 2024 2023 2022
(millions)
Net Periodic Pension Cost
Interest cost $ 73  $ 83  $ 68  $ 22  $ 23  $ 15 
Expected return on assets (116) (125) (122) —  —  — 
Amortization of net actuarial loss 12  11 
(40) (38) (42) 28  30  26 
           
Settlement charges 46  134  39  —  —  — 
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Income (Loss)            
Net actuarial (gain) loss (3) 138  (17) (19) (71)
Amortization of net actuarial loss (3) (4) (12) (6) (7) (11)
Settlement charges (46) (134) (39) —  —  — 
(42) (141) 87  (23) (26) (82)
Total recognized $ (36) $ (45) $ 84  $ $ $ (56)
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 1, 2025 and February 3, 2024:
Pension Plan SERP
2024 2023 2024 2023
Discount rate 5.52  % 5.06  % 5.54  % 5.08  %
Rate of compensation increases 3.00  % 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
2024 2023 2022 2024 2023 2022
Discount rate used to measure service cost 5.24  %
4.88% - 6.27%
3.35% - 5.76%
—  —  — 
Discount rate used to measure interest cost 4.98  %
4.72% - 5.96%
2.55% - 5.49%
4.96  % 4.71  % 2.53  %
Expected long-term return on plan assets 5.30  % 5.30  % 4.60  % —  —  — 
Rate of compensation increases 3.50  % 3.50  % 3.50  % —  —  — 
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 1, 2025 and February 3, 2024, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:
Fair Value Category 2024 2023
(millions)
Money market funds Level 1 $ 154  $ 82 
Equity securities:      
U.S. pooled funds Level 1 65  62 
International pooled funds Level 1 26  27 
Fixed income securities:      
U.S. Treasury bonds Level 2 36  20 
Other Government bonds Level 2 55  58 
Agency backed bonds Level 2 — 
Corporate bonds Level 2 1,080  1,270 
Mortgage-backed securities Level 2 40  33 
Asset-backed securities Level 2
Pooled funds Level 1 39  37 
Other types of investments:      
Derivatives in a positive position Level 2 13 
Derivatives in a negative position Level 2 (3) (2)
Pooled funds (a) 273  274 
Real estate (a) 12  15 
Private equity (a) 81  114 
Total $ 1,874  $ 2,000 
(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
2025 $ 159  $ 43 
2026 146  47 
2027 141  38 
2028 137  42 
2029 132  38 
2030-2034 546  165