Benefit Plans

The Company has defined contribution plans which cover substantially all employees who work 1,000 hours or more in a year. In addition, the Company has a funded defined benefit plan ("Pension Plan") and an unfunded defined benefit supplementary retirement plan ("SERP"), which provides benefits, for certain employees, in excess of qualified plan limitations. Effective January 1, 2012, the Pension Plan was closed to new participants, with limited exceptions, and effective January 2, 2012, the SERP was closed to new participants.

In February 2013, the Company announced changes to the Pension Plan and SERP whereby eligible employees no longer earn future pension service credits after December 31, 2013, with limited exceptions. All retirement benefits attributable to service in subsequent periods are provided through defined contribution plans.

In addition, certain retired employees currently are provided with specified health care and life insurance benefits ("Postretirement Obligations"). Eligibility requirements for such benefits vary, but generally state that benefits are available to eligible employees who were hired prior to a certain date and retire after a certain age with specified years of service. Certain employees are subject to having such benefits modified or terminated.

The defined contribution plan expense and actuarially determined components of the net periodic benefit cost (income) associated with the defined benefit plans are as follows:



	13 Weeks Ended						26 Weeks Ended
	August 4, 2018			July 29, 2017			August 4, 2018			July 29, 2017
	(millions)						(millions)
401(k) Qualified Defined Contribution Plan	$	24		$	24		$	47		$	45

Non-Qualified Defined Contribution Plan	$	1		$	—		$	1		$	—

Pension Plan
Service cost	$	1		$	2		$	3		$	3
Interest cost	27			27			53			54
Expected return on assets	(53		)	(57		)	(106		)	(113		)
Recognition of net actuarial loss	8			8			16			16
Amortization of prior service credit	—			—			—			—
	$	(17	)	$	(20	)	$	(34	)	$	(40	)
Supplementary Retirement Plan
Service cost	$	—		$	—		$	—		$	—
Interest cost	5			5			11			11
Recognition of net actuarial loss	2			2			4			4
Amortization of prior service cost	—			—			—			—
	$	7		$	7		$	15		$	15

Total Retirement Expense	$	15		$	11		$	29		$	20

Postretirement Obligations
Service cost	$	—		$	—		$	—		$	—
Interest cost	1			2			2			3
Recognition of net actuarial gain	(1		)	(1		)	(2		)	(2		)
Amortization of prior service credit	—			—			—			—
	$	—		$	1		$	—		$	1

For the 13 and 26 weeks ended August 4, 2018 and July 29, 2017, the Company incurred non-cash settlement charges of $50 million and $51 million, respectively, related to the Company's defined benefit plans. These charges relate to the pro-rata recognition of net actuarial losses associated with the Company's defined benefit plans and are the result of an increase in lump sum distributions associated with store closings, organizational restructuring and a voluntary separation program, and periodic distribution activity.