Pension and Postretirement Health Care Plans (Tables)

12 Months Ended

Feb. 02, 2013

Pension and Postretirement Health Care Plans

Schedule of change in projected benefit obligation

	Pension Benefits
Change in Projected Benefit Obligation													Postretirement Health Care Benefits
	Qualified Plans						Nonqualified Plans
(millions)	2012			2011			2012			2011			2012			2011
Benefit obligation at beginning of period	$	3,015		$	2,525		$	38		$	31		$	100		$	94
Service cost		120			116			1			1			10			10
Interest cost		137			135			2			2			3			4
Actuarial (gain)/loss		107			349			—			7			18			—
Participant contributions		1			1			—			—			5			6
Benefits paid		(126	)		(111	)		(3	)		(3	)		(12	)		(14	)
Plan amendments		(90	)		—			(1	)		—			(3	)		—
Benefit obligation at end of period	$	3,164		$	3,015		$	37		$	38		$	121		$	100

Schedule of change in plan assets

	Pension Benefits
Change in Plan Assets													Postretirement Health Care Benefits
	Qualified Plans						Nonqualified Plans
(millions)	2012			2011			2012			2011			2012			2011
Fair value of plan assets at beginning of period	$	2,921		$	2,515		$	—		$	—		$	—		$	—
Actual return on plan assets		305			364			—			—			—			—
Employer contributions		122			152			3			3			7			8
Participant contributions		1			1			—			—			5			6
Benefits paid		(126	)		(111	)		(3	)		(3	)		(12	)		(14	)
Fair value of plan assets at end of period		3,223			2,921			—			—			—			—
Benefit obligation at end of period		3,164			3,015			37			38			121			100
Funded/(underfunded) status	$	59		$	(94	)	$	(37	)	$	(38	)	$	(121	)	$	(100	)

Amounts recognized in Balance Sheet

Recognition of Funded/(Underfunded) Status	Qualified Plans						Nonqualified Plans (a)
(millions)	2012			2011			2012			2011
Other noncurrent assets	$	81		$	3		$	—		$	—
Accrued and other current liabilities		(1	)		(1	)		(9	)		(9	)
Other noncurrent liabilities		(21	)		(96	)		(149	)		(129	)
Net amounts recognized	$	59		$	(94	)	$	(158	)	$	(138	)

(a)

Includes postretirement health care benefits.

Amounts recorded in accumulated other comprehensive income, not yet recognized as component of net periodic benefit expense

Amounts in Accumulated Other Comprehensive Income						Postretirement Health Care Plans
	Pension Plans
(millions)	2012			2011		2012			2011
Net actuarial loss	$	947		$	1,027	$	58		$	44
Prior service credits		(91	)		—		(34	)		(41	)
Amounts in accumulated other comprehensive income	$	856		$	1,027	$	24		$	3

Changes in AOCI, Pension and Other Post Retirement Plans

Change in Accumulated Other Comprehensive Income							Postretirement Health Care Benefits
	Pension Benefits
(millions)	Pretax			Net of Tax			Pretax			Net of Tax
January 29, 2011	$	894		$	543		$	(3	)	$	(2	)
Net actuarial loss		198			120			—			—
Amortization of net actuarial losses		(67	)		(41	)		(4	)		(2	)
Amortization of prior service costs and transition		2			1			10			6
January 28, 2012		1,027			623			3			2
Net actuarial loss		23			13			18			11
Amortization of net actuarial losses		(103	)		(63	)		(4	)		(2	)
Amortization of prior service costs and transition		—			—			10			6
Plan amendments		(91	)		(56	)		(3	)		(2	)
February 2, 2013	$	856		$	517		$	24		$	15

Amounts in accumulated other comprehensive income expected to be amortized and recognized as a component of net periodic benefit expense in 2013

Expected Amortization of Amounts in Accumulated Other Comprehensive Income (millions)	Pretax			Net of Tax
Net actuarial loss	$	108		$	65
Prior service credits		(27	)		(16	)
Total amortization expense	$	81		$	49

Net Pension and Postretirement Health Care Benefits Expense

Net Pension and Postretirement Health Care Benefits Expense										Postretirement Health Care Benefits
	Pension Benefits
(millions)	2012			2011			2010			2012			2011			2010
Service cost benefits earned during the period	$	121		$	117		$	115		$	10		$	10		$	9
Interest cost on projected benefit obligation		139			137			129			3			4			4
Expected return on assets		(220	)		(206	)		(191	)		—			—			—
Amortization of losses		103			67			44			3			4			4
Amortization of prior service cost		—			(2	)		(3	)		(10	)		(10	)		(10	)
Total	$	143		$	113		$	94		$	6		$	8		$	7

Defined Benefit Pension Plan Information

Defined Benefit Pension Plan Information (millions)	2012		2011
Accumulated benefit obligation (ABO) for all plans (a)	$	3,140	$	2,872
Projected benefit obligation for pension plans with an ABO in excess of plan assets (b)		59		55
Total ABO for pension plans with an ABO in excess of plan assets		53		48

(a)

The present value of benefits earned to date assuming no future salary growth.

(b)

The present value of benefits earned to date by plan participants, including the effect of assumed future salary increases.

Benefit Obligation Weighted Average Assumptions

Benefit Obligation Weighted Average Assumptions							Postretirement Health Care Benefits
	Pension Benefits
	2012			2011			2012			2011
Discount rate		4.40	%		4.65	%		2.75	%		3.60	%
Average assumed rate of compensation increase		3.00			3.50			n/a			n/a

Net Periodic Benefit Expense Weighted Average Assumptions

Net Periodic Benefit Expense Weighted Average Assumptions
										Postretirement Health Care Benefits
	Pension Benefits
	2012			2011			2010			2012			2011			2010
Discount rate		4.65	%		5.50	%		5.85	%		3.60	%		4.35	%		4.85	%
Expected long-term rate of return on plan assets		8.00			8.00			8.00			n/a			n/a			n/a
Average assumed rate of compensation increase		3.50			4.00			4.00			n/a			n/a			n/a

Effect of a one percent change in assumed health care cost trend rates

Health Care Cost Trend Rates – 1% Change (millions)	1% Increase		1% Decrease
Effect on total of service and interest cost components of net periodic postretirement health care benefit expense	$	1	$	(1	)
Effect on the health care component of the accumulated postretirement benefit obligation		9		(8	)

Target and actual allocation of defined benefit Plan Assets

				Actual Allocation
Asset Category	Current Targeted Allocation
				2012			2011
Domestic equity securities (a)		19	%		20	%		19	%
International equity securities		12			11			11
Debt securities		25			27			29
Balanced funds		30			29			25
Other (b)		14			13			16
Total		100	%		100	%		100	%

(a)

Equity securities include our common stock in amounts substantially less than 1 percent of total plan assets as of February 2, 2013 and January 28, 2012.

(b)

Other assets include private equity, mezzanine and high-yield debt, natural resources and timberland funds, multi-strategy hedge funds, derivative instruments and a 4 percent allocation to real estate.

Fair value of pension plan assets, by asset category

Fair Value Measurements			Fair Value at February 2, 2013								Fair Value at January 28, 2012
(millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	174	$	5	$	169	$	—	$	263	$	11	$	252	$	—
Common collective trusts (a)		878		—		878		—		653		—		653		—
Government securities (b)		296		—		296		—		356		—		356		—
Fixed income (c)		560		—		560		—		466		—		466		—
Balanced funds (d)		925		—		925		—		744		—		744		—
Private equity funds (e)		236		—		—		236		283		—		—		283
Other (f)		154		—		32		122		156		—		41		115
Total plan assets	$	3,223	$	5	$	2,860	$	358	$	2,921	$	11	$	2,512	$	398

(a)

Passively managed index funds with holdings in domestic and international equities.

(b)

Investments in government securities and passively managed index funds with holdings in long-term government bonds.

(c)

Investments in corporate bonds, mortgage-backed securities and passively managed index funds with holdings in long-term corporate bonds.

(d)

Investments in equities, nominal and inflation-linked fixed income securities, commodities and public real estate.

(e)

Includes investments in venture capital, mezzanine and high-yield debt, natural resources and timberland funds.

(f)

Investments in multi-strategy hedge funds (including domestic and international equity securities, convertible bonds and other alternative investments), real estate and derivative investments.

Reconciliation of assets' fair value using significant unobservable inputs (Level 3)

Level 3 Reconciliation			Actual Return on Plan Assets (a)
(millions)	Balance at Beginning of Period		Relating to Assets Still Held at the Reporting Date			Relating to Assets Sold During the Period		Purchases, Sales and Settlements			Transfer in and/or out of Level 3		Balance at End of Period
2011
Private equity funds	$	327	$	(6	)	$	26	$	(64	)	$	—	$	283
Other		127		9			—		(21	)		—		115
2012
Private equity funds	$	283	$	17		$	25	$	(89	)	$	—	$	236
Other		115		4			—		3			—		122

(a)

Represents realized and unrealized gains (losses) from changes in values of those financial instruments only for the period in which the instruments were classified as Level 3.

Estimated Future Benefit Payments

Estimated Future Benefit Payments (millions)	Pension Benefits		Postretirement Health Care Benefits
2013	$	141	$	6
2014		150		7
2015		158		7
2016		167		8
2017		176		8
2018-2022		1,007		48