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Retirement Plans (Tables)
12 Months Ended
Feb. 02, 2019
Schedule of Costs of Retirement Plans
Retirement expenses, excluding settlement charges, included the following components:
 
2018
 
2017
 
2016
 
(millions)
401(k) Qualified Defined Contribution Plan
$
96

 
$
93

 
$
94

Non-Qualified Defined Contribution Plan
1

 
1

 
2

Pension Plan
(64
)
 
(82
)
 
(83
)
Supplementary Retirement Plan
31

 
31

 
31

 
$
64

 
$
43

 
$
44

Pension Plan [Member]  
Reconciliation of Benefit Obligations, Plan Assets, and Funded Status Pension Plan
The following provides a reconciliation of benefit obligations, plan assets, and funded status of the Pension Plan as of February 2, 2019 and February 3, 2018:
 
 
2018
 
2017
 
(millions)
Change in projected benefit obligation
 
 
 
Projected benefit obligation, beginning of year
$
3,271

 
$
3,469

Service cost
5

 
6

Interest cost
109

 
104

Actuarial (gain) loss
(27
)
 
82

Benefits paid
(347
)
 
(390
)
Projected benefit obligation, end of year
3,011

 
3,271

Changes in plan assets
 
 
 
Fair value of plan assets, beginning of year
3,409

 
3,374

Actual return on plan assets
(44
)
 
425

Company contributions

 

Benefits paid
(347
)
 
(390
)
Fair value of plan assets, end of year
3,018

 
3,409

Funded status at end of year
$
7

 
$
138

Amounts recognized in the Consolidated Balance Sheets at
February 2, 2019 and February 3, 2018
 
 
 
Other assets
$
7

 
$
138

 

 

Amounts recognized in accumulated other comprehensive loss at
February 2, 2019 and February 3, 2018
 
 
 
Net actuarial loss
$
1,109

 
$
992

Schedule of Net Periodic Benefit Costs
Net pension costs, settlement charges and other amounts recognized in other comprehensive loss for the Pension Plan included the following actuarially determined components:
 
 
2018
 
2017
 
2016
 
(millions)
Net Periodic Pension Cost
 
 
 
 
 
Service cost
$
5

 
$
6

 
$
5

Interest cost
109

 
104

 
108

Expected return on assets
(206
)
 
(223
)
 
(227
)
Amortization of net actuarial loss
28

 
31

 
31

Amortization of prior service credit

 

 

 
(64
)
 
(82
)
 
(83
)
 
 
 
 
 
 
Settlement charges
78

 
89

 
68

 
 
 
 
 
 
Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
 
 
 
 
 
Net actuarial (gain) loss
223

 
(120
)
 
(120
)
Amortization of net actuarial loss
(28
)
 
(31
)
 
(31
)
Settlement charges
(78
)
 
(89
)
 
(68
)
 
117

 
(240
)
 
(219
)
Total recognized
$
131

 
$
(233
)
 
$
(234
)
Weighted Average Assumptions
The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan at February 2, 2019 and February 3, 2018:
 
 
2018
 
2017
Discount rate
4.03
%
 
3.74
%
Rate of compensation increases
4.00
%
 
4.00
%
The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan:
 
 
2018
 
2017
 
2016
Discount rate used to measure service cost
3.77% - 4.46%

 
3.75% - 4.06%

 
3.79% - 4.26%

Discount rate used to measure interest cost
3.39% - 4.06%

 
3.12% - 3.31%

 
2.96% - 3.30%

Expected long-term return on plan assets
6.75
%
 
7.00
%
 
7.00
%
Rate of compensation increases
4.00
%
 
4.10
%
 
4.10
%
Fair Values of Plan Assets
The fair values of the Pension Plan assets as of February 2, 2019, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:
 
 
Fair Value Measurements
 
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(millions)
Short term investments
$
1

 
$

 
$
1

 
$

Money market funds
33

 
33

 

 

Equity securities:
 
 
 
 
 
 
 
U.S. stocks
117

 
117

 

 

U.S. pooled funds
398

 
398

 

 

International pooled funds (a)
347

 
78

 

 

Fixed income securities:
 
 
 
 
 
 
 
U.S. Treasury bonds
52

 

 
52

 

Other Government bonds
53

 

 
53

 

Agency backed bonds
11

 

 
11

 

Corporate bonds
513

 

 
513

 

Mortgage-backed securities
15

 

 
15

 

Asset-backed securities
11

 

 
11

 

Pooled funds
1,270

 
1,270

 

 

Other types of investments:
 
 
 
 
 
 
 
Real estate (a)
56

 

 

 

Private equity (a)
185

 

 

 

Derivatives in a positive position
6

 

 
6

 

Derivatives in a negative position
(2
)
 

 
(2
)
 

Total
$
3,066

 
$
1,896

 
$
660

 
$

(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.

The fair values of the Pension Plan assets as of February 3, 2018, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:
 
 
Fair Value Measurements
 
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(millions)
Short term investments
$
5

 
$

 
$
5

 
$

Money market funds
35

 
35

 

 

Equity securities:


 
 
 
 
 
 
U.S. stocks
157

 
157

 

 

U.S. pooled funds
481

 
481

 

 

International pooled funds (a)
447

 
114

 

 

Fixed income securities:


 
 
 
 
 
 
U.S. Treasury bonds
44

 

 
44

 

Other Government bonds
59

 

 
59

 

Agency backed bonds
13

 

 
13

 

Corporate bonds
538

 

 
538

 

Mortgage-backed securities
15

 

 
15

 

Asset-backed securities
6

 

 
6

 

Pooled funds
1,310

 
1,310

 

 

Other types of investments:


 
 
 
 
 
 
Real estate (a)
148

 

 

 

Private equity (a)
183

 

 

 

Derivatives in a positive position
9

 

 
9

 

Derivatives in a negative position
(3
)
 

 
(3
)
 

Total
$
3,447

 
$
2,097

 
$
686

 
$

(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:
 
 
(millions)
Fiscal year
 
2019
$
325

2020
287

2021
269

2022
260

2023
235

2024-2028
1,018

Supplemental Employee Retirement Plan  
Reconciliation of Benefit Obligations, Plan Assets, and Funded Status Pension Plan
The following provides a reconciliation of benefit obligations, plan assets and funded status of the supplementary retirement plan as of February 2, 2019 and February 3, 2018:
 
 
2018
 
2017
 
(millions)
Change in projected benefit obligation
 
 
 
Projected benefit obligation, beginning of year
$
703

 
$
747

Service cost

 

Interest cost
23

 
22

Actuarial (gain) loss
(9
)
 
20

Benefits paid
(73
)
 
(86
)
Projected benefit obligation, end of year
644

 
703

Change in plan assets
 
 
 
Fair value of plan assets, beginning of year

 

Company contributions
73

 
86

Benefits paid
(73
)
 
(86
)
Fair value of plan assets, end of year

 

Funded status at end of year
$
(644
)
 
$
(703
)
Amounts recognized in the Consolidated Balance Sheets at
February 2, 2019 and February 3, 2018
 
 
 
Accounts payable and accrued liabilities
$
(68
)
 
$
(69
)
Other liabilities
(576
)
 
(634
)
 
$
(644
)
 
$
(703
)
Amounts recognized in accumulated other comprehensive loss at
February 2, 2019 and February 3, 2018
 
 
 
Net actuarial loss
$
218

 
$
244

Prior service cost
6

 
7

 
$
224

 
$
251

Schedule of Net Periodic Benefit Costs
Net pension costs, settlement charges and other amounts recognized in other comprehensive loss for the supplementary retirement plan included the following actuarially determined components:
 
 
2018
 
2017
 
2016
 
(millions)
Net Periodic Pension Cost
 
 
 
 
 
Service cost
$

 
$

 
$

Interest cost
23

 
22

 
22

Amortization of net actuarial loss
7

 
8

 
9

Amortization of prior service cost
1

 
1

 

 
31

 
31

 
31

 
 
 
 
 
 
Settlement charges
10

 
16

 
30

 
 
 
 
 
 
Other Changes in Plan Assets and Projected Benefit Obligation
Recognized in Other Comprehensive Loss
 
 
 
 
 
Net actuarial (gain) loss
(9
)
 
20

 
26

Amortization of net actuarial loss
(7
)
 
(8
)
 
(9
)
Amortization of prior service cost
(1
)
 
(1
)
 

Settlement charges
(10
)
 
(16
)
 
(30
)
 
(27
)
 
(5
)
 
(13
)
Total recognized
$
14

 
$
42

 
$
48

Weighted Average Assumptions
The following weighted average assumption was used to determine the projected benefit obligations for the supplementary retirement plan at February 2, 2019 and February 3, 2018:
 
 
2018
 
2017
Discount rate
4.10
%
 
3.78
%


The following weighted average assumption was used to determine net pension costs for the supplementary retirement plan:
 
 
2018
 
2017
 
2016
Discount rate used to measure interest cost
3.39% - 4.09%
 
3.10% - 3.26%
 
2.65% - 3.16%
Estimated Future Benefit Payments
The following benefit payments are estimated to be funded by the Company and paid from the supplementary retirement plan:
 
 
(millions)
Fiscal year
 
2019
$
68

2020
48

2021
47

2022
46

2023
46

2024-2028
211