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Retirement Plans (Tables)
 12 Months Ended
Jan. 29, 2022
Pension And Other Postretirement Benefit Expense [Abstract]  
Schedule of Costs of Retirement Plans

Retirement expenses, excluding settlement charges, included the following components:

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

 

 

 

 

(millions)

 

 

 

 

 

401(k) Qualified Defined Contribution Plan

 

$

76

 

 

$

68

 

 

$

96

 

Non-Qualified Defined Contribution Plan

 

 

1

 

 

 

1

 

 

 

2

 

Pension Plan

 

 

(85

)

 

 

(73

)

 

 

(54

)

Supplementary Retirement Plan

 

 

24

 

 

 

26

 

 

 

30

 

 

 

$

16

 

 

$

22

 

 

$

74

 
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 January 29, 2022 and January 30, 2021:

 

 

 

Pension Plan

 

 

SERP

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(millions)

 

Change in projected benefit obligation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected benefit obligation, beginning of year

 

$

3,030

 

 

$

3,321

 

 

$

673

 

 

$

681

 

Service cost

 

 

1

 

 

 

4

 

 

 

—

 

 

 

—

 

Interest cost

 

 

49

 

 

 

66

 

 

 

11

 

 

 

14

 

Actuarial (gain) loss

 

 

(172

)

 

 

12

 

 

 

(32

)

 

 

42

 

Benefits paid

 

 

(502

)

 

 

(373

)

 

 

(46

)

 

 

(64

)

Projected benefit obligation, end of year

 

 

2,406

 

 

 

3,030

 

 

 

606

 

 

 

673

 

Changes in plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets, beginning of year

 

 

3,359

 

 

 

3,359

 

 

 

—

 

 

 

—

 

Actual return on plan assets

 

 

43

 

 

 

373

 

 

 

—

 

 

 

—

 

Company contributions

 

 

—

 

 

 

—

 

 

 

46

 

 

 

64

 

Benefits paid

 

 

(502

)

 

 

(373

)

 

 

(46

)

 

 

(64

)

Fair value of plan assets, end of year

 

 

2,900

 

 

 

3,359

 

 

 

—

 

 

 

—

 

Funded status at end of year

 

$

494

 

 

$

329

 

 

$

(606

)

 

$

(673

)

Amounts recognized in the Consolidated Balance Sheets at

   January 29, 2022 and January 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

$

494

 

 

$

329

 

 

$

—

 

 

$

—

 

Accounts payable and accrued liabilities

 

 

—

 

 

 

—

 

 

 

(47

)

 

 

(49

)

Other liabilities

 

 

—

 

 

 

—

 

 

 

(559

)

 

 

(624

)

 

 

$

494

 

 

$

329

 

 

$

(606

)

 

$

(673

)

Amounts recognized in accumulated other comprehensive

   loss at January 29, 2022 and January 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

$

617

 

 

$

794

 

 

$

257

 

 

$

301

 

Prior service cost

 

 

—

 

 

 

—

 

 

 

5

 

 

 

6

 

 

 

$

617

 

 

$

794

 

 

$

262

 

 

$

307

 

 

 
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

 

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

 

 

(millions)

 

Net Periodic Pension Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

1

 

 

$

4

 

 

$

5

 

 

$

—

 

 

$

—

 

 

$

—

 

Interest cost

 

 

49

 

 

 

66

 

 

 

103

 

 

 

11

 

 

 

14

 

 

 

21

 

Expected return on assets

 

 

(161

)

 

 

(183

)

 

 

(191

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of net actuarial loss

 

 

26

 

 

 

40

 

 

 

29

 

 

 

13

 

 

 

12

 

 

 

9

 

 

 

 

(85

)

 

 

(73

)

 

 

(54

)

 

 

24

 

 

 

26

 

 

 

30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Settlement charges

 

 

96

 

 

 

74

 

 

 

45

 

 

 

—

 

 

 

10

 

 

 

13

 

Other Changes in Plan Assets and

   Projected Benefit Obligation

   Recognized in Other

   Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial (gain) loss

 

 

(55

)

 

 

(178

)

 

 

51

 

 

 

(32

)

 

 

40

 

 

 

87

 

Amortization of net actuarial loss

 

 

(26

)

 

 

(40

)

 

 

(29

)

 

 

(13

)

 

 

(12

)

 

 

(9

)

Settlement charges

 

 

(96

)

 

 

(74

)

 

 

(45

)

 

 

—

 

 

 

(10

)

 

 

(13

)

 

 

 

(177

)

 

 

(292

)

 

 

(23

)

 

 

(45

)

 

 

18

 

 

 

65

 

Total recognized

 

$

(166

)

 

$

(291

)

 

$

(32

)

 

$

(21

)

 

$

54

 

 

$

108

 
Weighted Average Assumptions

In 2020 and 2021, the Company incurred non-cash settlement charges of $84 million and $96 million, respectively. For 2020, these charges related to the pro-rata recognition of net actuarial losses associated with the Company’s defined benefit retirement plans and were the result of lump sum distributions associated with retiree distribution elections and restructuring activity. For 2021, these charges relate to the pro-rata recognition of net actuarial losses associated with the Company’s Pension Plan and is the result of the transfer of pension obligations for certain retirees and beneficiaries under the Pension Plan through the purchase of a group annuity contract with an insurance company. The Company transferred $256 million of Pension Plan assets to the insurance company in the second quarter of 2021, thereby reducing its Pension Plan benefit obligations.

The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan and SERP at January 29, 2022 and January 30, 2021:

 

 

 

Pension Plan

 

 

SERP

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Discount rate

 

 

3.06

%

 

 

2.43

%

 

 

3.10

%

 

 

2.51

%

Rate of compensation increases

 

 

3.50

%

 

 

3.45

%

 

 

—

 

 

 

—

 

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

 

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

Discount rate used to measure

   service cost

 

2.69% - 3.07%

 

 

2.35% - 2.96%

 

 

 

4.09

%

 

 

—

 

 

 

—

 

 

 

—

 

Discount rate used to measure

   interest cost

 

1.76% - 2.07%

 

 

1.65% - 2.46%

 

 

 

3.67

%

 

 

1.74

%

 

1.65% - 2.44%

 

 

2.65% - 3.69%

 

Expected long-term return on

   plan assets

 

 

5.75

%

 

 

6.25

%

 

 

6.50

%

 

 

—

 

 

 

—

 

 

 

—

 

Rate of compensation increases

 

 

3.45

%

 

 

3.25

%

 

 

4.00

%

 

 

—

 

 

 

—

 

 

 

—

 

Cash balance plan interest

   crediting rate

 

 

5.00

%

 

 

5.00

%

 

 

5.00

%

 

 

—

 

 

 

—

 

 

 

—

 
Fair Values of Plan Assets

The fair values of the Pension Plan assets as of January 29, 2022 and January 30, 2021, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:

 

 

 

Fair Value Category

 

2021

 

 

2020

 

 

 

 

 

(millions)

 

Short term investments

 

Level 2

 

$

10

 

 

$

3

 

Money market funds

 

Level 1

 

 

206

 

 

 

136

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

U.S. pooled funds

 

Level 1

 

 

77

 

 

 

356

 

International pooled funds

 

Level 1

 

 

31

 

 

 

37

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bonds

 

Level 2

 

 

121

 

 

 

270

 

Other Government bonds

 

Level 2

 

 

74

 

 

 

63

 

Corporate bonds

 

Level 2

 

 

1,877

 

 

 

1,609

 

Mortgage-backed securities

 

Level 2

 

 

10

 

 

 

11

 

Asset-backed securities

 

Level 2

 

 

1

 

 

 

1

 

Pooled funds

 

Level 1

 

 

72

 

 

 

271

 

Other types of investments:

 

 

 

 

 

 

 

 

 

 

Derivatives in a positive position

 

Level 2

 

 

12

 

 

 

8

 

Derivatives in a negative position

 

Level 1

 

 

—

 

 

 

(4

)

Derivatives in a negative position

 

Level 2

 

 

(1

)

 

 

—

 

Pooled funds (a)

 

 

 

 

164

 

 

 

296

 

Real estate (a)

 

 

 

 

32

 

 

 

31

 

Private equity (a)

 

 

 

 

186

 

 

 

160

 

Total

 

 

 

$

2,872

 

 

$

3,248

 

 

(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 and from the SERP:

 

 

 

Pension Plan

 

 

SERP

 

 

 

(millions)

 

Fiscal year

 

 

 

 

 

 

 

 

2022

 

$

224

 

 

$

47

 

2023

 

 

206

 

 

 

47

 

2024

 

 

193

 

 

 

45

 

2025

 

 

188

 

 

 

44

 

2026

 

 

180

 

 

 

48

 

2027-2031

 

 

768

 

 

 

190