Pension and Postretirement Plans

6 Months Ended

Jul. 30, 2016

Pension and Postretirement Plans [Abstract]

10. Pension and Postretirement Plans

The Company has defined benefit pension plans covering certain of its North American employees, which are funded in accordance with the provisions of the laws where the plans are in effect. In addition, the Company has a defined benefit pension plan covering certain employees of the Runners Point Group.

In addition to providing pension benefits, the Company sponsors postretirement medical and life insurance plans, which are available to most of its retired U.S. employees. These medical and life insurance plans are contributory and are not funded.

The following are the components of net periodic pension benefit cost and net periodic postretirement benefit income, which is recognized as part of SG&A expense:



	Pension Benefits								Postretirement Benefits
	Thirteen weeks ended				Twenty-six weeks ended				Thirteen weeks ended				Twenty-six weeks ended
	July 30,		August 1,		July 30,		August 1,		July 30,		August 1,		July 30,		August 1,
($ in millions)	2016		2015		2016		2015		2016		2015		2016		2015
Service cost	$	4	$	4	$	8	$	8	$	—	$	—	$	—	$	—
Interest cost		7		6		13		12		—		1		—		1
Expected return on plan assets		(9)		(10)		(18)		(19)		—		—		—		—
Amortization of net loss (gain)		3		4		7		7		—		(1)		(1)		(1)
Net benefit expense (income)	$	5	$	4	$	10	$	8	$	—	$	—	$	(1)	$	—

During the first quarter of 2016, the Company made a contribution of $25 million to the U.S. qualified plan. The Company continually evaluates the amount and timing of any future contributions. The Company contributed $8 million to the U.S. qualified plan on August 31, 2016. The Company currently expects to contribute $4 million to the Canadian qualified plan during the fourth quarter of 2016. Actual contributions are dependent on several factors, including the outcome of the ongoing pension litigation. See Note 12, Legal Proceedings, for further information.