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Retirement Plans
9 Months Ended
Oct. 29, 2022
Pension And Other Postretirement Benefit Expense [Abstract]  
Retirement Plans

5.

Retirement Plans

The Company has defined contribution plans that cover substantially all colleagues 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 colleagues, 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 colleagues 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 colleagues 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 colleagues who were hired prior to a certain date and retire after a certain age with specified years of service. Certain colleagues 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

 

 

39 Weeks Ended

 

 

 

October 29, 2022

 

 

October 30, 2021

 

 

October 29, 2022

 

 

October 30, 2021

 

 

 

(millions)

 

 

(millions)

 

401(k) Qualified Defined Contribution Plan

 

$

21

 

 

$

20

 

 

$

66

 

 

$

59

 

Pension Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

 

 

$

 

 

$

 

 

$

1

 

Interest cost

 

 

14

 

 

 

11

 

 

 

44

 

 

 

36

 

Expected return on assets

 

 

(31

)

 

 

(39

)

 

 

(93

)

 

 

(122

)

Recognition of net actuarial loss

 

 

4

 

 

 

5

 

 

 

11

 

 

 

22

 

 

 

$

(13

)

 

$

(23

)

 

$

(38

)

 

$

(63

)

Supplementary Retirement Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest cost

 

 

4

 

 

 

3

 

 

 

11

 

 

 

8

 

Recognition of net actuarial loss

 

 

3

 

 

 

3

 

 

 

9

 

 

 

10

 

 

 

$

7

 

 

$

6

 

 

$

20

 

 

$

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Retirement Expense

 

$

15

 

 

$

3

 

 

$

48

 

 

$

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement Obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest cost

 

 

1

 

 

 

1

 

 

 

2

 

 

 

1

 

Recognition of net actuarial gain

 

 

(1

)

 

 

(1

)

 

 

(4

)

 

 

(4

)

Amortization of prior service credit

 

 

(1

)

 

 

 

 

 

(1

)

 

 

 

 

 

$

(1

)

 

$

 

 

$

(3

)

 

$

(3

)

 

 

In connection with the Company's defined benefit plans, for the 13 and 39 weeks ended October 29, 2022, the Company incurred a non-cash settlement charge of $32 million. This charge relates to the pro-rata recognition of net actuarial losses associated with the Company's Pension Plan and are the result of an increase in lump sum distributions associated with retiree distribution elections.

 

In connection with the Company's defined benefit plans, for the 13 and 39 weeks ended October 30, 2021, the Company incurred non-cash settlement charges of $8 million and $90 million, respectively. For the 13 weeks ended October 30, 2021, these charges relate to the pro-rata recognition of net actuarial losses associated with the Company's Pension Plan and are the result of an increase in lump sum distributions associated with retiree distribution elections. For the 39 weeks ended October 31, 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.