12. 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. The Company also 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. In conjunction with the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, service cost continues to be recognized as part of SG&A expense, while the remaining pension and postretirement expense components are now recognized as part of other income. Prior periods were not reclassified as required by this ASU as the amounts were not considered significant.



	Pension Benefits								Postretirement Benefits
	Thirteen weeks ended				Thirty-nine weeks ended				Thirteen weeks ended				Thirty-nine weeks ended
	Nov. 3,		Oct. 28,		Nov. 3,		Oct. 28,		Nov. 3,		Oct. 28,		Nov. 3,		Oct. 28,
($ in millions)	2018		2017		2018		2017		2018		2017		2018		2017
Service cost	$	5	$	4	$	14	$	12	$	—	$	—	$	—	$	—
Interest cost		8		6		21		19		—		—		—		—
Expected return on plan assets		(10)		(9)		(29)		(28)		—		—		—		—
Amortization of net loss (gain)		3		3		9		10		—		—		(1)		(1)
Net benefit expense (income)	$	6	$	4	$	15	$	13	$	—	$	—	$	(1)	$	(1)

The Company contributed $30 million in May 2018 and $98 million in September 2018 to the U.S. qualified pension plan. The Company continually evaluates the amount and timing of any future contributions.

In connection with the pension litigation more fully disclosed in Note 14, Legal Proceedings, the Company reformed its U.S. qualified pension plan during the second quarter of 2018, which resulted in the reclassification of the accrued liability previously recorded and the remeasurement of the liability. The Company reclassified $194 million, after the payment of class counsel fees, to the U.S. qualified pension plan liability. After this reclassification, the remeasurement resulted in an increase to the benefit obligation of $12 million, with a corresponding charge to accumulated other comprehensive loss of $9 million, net of tax. The assumptions used to determine the remeasured benefit obligation did not change from the beginning of the year with the exception of the discount rate which increased from 3.7 percent to 4.0 percent.