Retirement Plans and Other Benefits (Tables)

12 Months Ended

Jan. 30, 2021

Defined Benefit Plan Disclosure [Line Items]

Changes in Benefit Obligations and Plan Assets, Funded Status, and Amounts Recognized in Consolidated Balance Sheets

The following tables set forth the plans’ changes in benefit obligations and plan assets, funded status, and amounts recognized in the Consolidated Balance Sheets:

	Pension Benefits				Postretirement Benefits
($ in millions)	2020		2019		2020		2019
Change in benefit obligation
Benefit obligation at beginning of year	$	775	$	739	$	11	$	12
Service cost		14		20		—		—
Interest cost		21		27		—		—
Plan participants’ contributions		—		—		1		1
Actuarial loss		8		76		2		—
Foreign currency translation adjustments		2		(1)		—		—
Benefits paid		(67)		(85)		(1)		(2)
Settlement		—		(1)		—		—
Benefit obligation at end of year	$	753	$	775	$	13	$	11
Change in plan assets
Fair value of plan assets at beginning of year	$	715	$	644
Actual return on plan assets		65		100
Employer contributions		1		57
Foreign currency translation adjustments		2		(1)
Benefits paid		(67)		(85)
Fair value of plan assets at end of year	$	716	$	715
Funded status	$	(37)		(60)	$	(13)	$	(11)
Amounts recognized on the consolidated balance sheet:
Other assets	$	3	$	3	$	—	$	—
Accrued and other liabilities		(2)		(2)		(1)		(1)
Other liabilities		(38)		(61)		(12)		(10)
	$	(37)	$	(60)	$	(13)	$	(11)

Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets

Accordingly, the table below reflects both the U.S. qualified plan and the non-qualified plans for both 2020 and 2019.

Changes in Accumulated Other Comprehensive Loss (Pre-Tax)

The following table provides the amounts recognized in AOCL on a pre-tax basis:

	Pension		Postretirement
($ in millions)	Benefits		Benefits
Net actuarial loss (gain) at beginning of year	$	392	$	(5)
Amortization of net (loss) gain		(12)		1
(Gain) loss arising during the year		(20)		2
Foreign currency fluctuations		1		—
Net actuarial loss (gain) at end of year	$	361	$	(2)

Assumptions Used in the Calculation of Net Benefit Cost

Assumptions used in the calculation of net benefit cost include the discount rate selected and disclosed at the end of the previous year, as well as other assumptions detailed in the table below:

	Pension Benefits						Postretirement Benefits
	2020		2019		2018		2020		2019		2018
Discount rate (1)	2.9	%	4.0	%	4.0	%	3.0	%	4.1	%	3.7	%
Rate of compensation increase	3.6	%	3.6	%	3.6	%
Expected long-term rate of return on assets	5.5	%	5.8	%	5.9	%

(1) The U.S qualified pension plan was remeasured during the second quarter of 2018 in connection with the pension litigation. The discount rate used to determine the benefit obligation in 2018 before the remeasurement was 3.7%.

Net Benefit Expense (Income)

The following are the components of net periodic pension benefit cost and net periodic postretirement benefit income.

	Pension Benefits						Postretirement Benefits
($ in millions)	2020		2019		2018		2020		2019		2018
Service cost	$	14	$	20	$	18	$	—	$	—	$	—
Interest cost		21		27		29		—		—		—
Expected return on plan assets		(37)		(37)		(38)		—		—		—
Amortization of net loss (gain)		12		12		12		(1)		(1)		(1)
Net benefit expense (income)	$	10	$	22	$	21	$	(1)	$	(1)	$	(1)

Assumed Health Care Cost Trend Rates Related to Measurement of SERP Medical Plan

The following initial and ultimate cost trend rate assumptions were used to determine the benefit obligations under the SERP Medical Plan:

	Medical Trend Rate						Dental Trend Rate
	2020		2019		2018		2020		2019		2018
Initial cost trend rate	6.3	%	6.5	%	6.5	%	5.0	%	5.0	%	5.0	%
Ultimate cost trend rate	5.0	%	5.0	%	5.0	%	5.0	%	5.0	%	5.0	%
Year that the ultimate cost trend rate is reached	2025		2025		2025		2020		2020		2019

The following initial and ultimate cost trend rate assumptions were used to determine the net periodic cost under the SERP Medical Plan:

	Medical Trend Rate						Dental Trend Rate
	2020		2019		2018		2020		2019		2018
Initial cost trend rate	6.5	%	6.5	%	7.0	%	5.0	%	5.0	%	5.0	%
Ultimate cost trend rate	5.0	%	5.0	%	5.0	%	5.0	%	5.0	%	5.0	%
Year that the ultimate cost trend rate is reached	2025		2025		2025		2020		2019		2018

Estimated Future Benefit Payments

Estimated future benefit payments for each of the next five years and the five years thereafter are as follows:

	Pension		Postretirement
($ in millions)	Benefits		Benefits
2021	$	65	$	1
2022		53		1
2023		51		1
2024		49		—
2025		46		—
2026-2030		208		3

United States

Defined Benefit Plan Disclosure [Line Items]

Fair Value of Pension Plan Assets

The fair values of the U.S. pension plan assets at January 30, 2021 and February 1, 2020 were as follows:

($ in millions)	Level 1		Level 2		Level 3		2020 Total		2019 Total*
Cash equivalents	$	—	$	4	$	—	$	4	$	3
Equity securities:
U.S. large-cap (1)		—		117		—		117		116
U.S. mid-cap (1)		—		34		—		34		34
International (2)		—		84		—		84		78
Corporate stock (3)		17		—		—		17		15
Fixed-income securities:
Long duration corporate and government bonds (4)		—		269		—		269		273
Intermediate duration corporate and government bonds (5)		—		119		—		119		121
Other types of investments:
Real estate securities (6)		—		22		—		22		23
Insurance contracts		—		—		—		—		1
Total assets at fair value	$	17	$	649	$	—	$	666	$	664

* Each category of plan assets is classified within the same level of the fair value hierarchy for 2020 and 2019.

(1) These categories consist of various managed funds that invest primarily in common stocks, as well as other equity securities and a combination of other funds.

(2) This category comprises three managed funds that invest primarily in international common stocks, as well as other equity securities and a combination of other funds.

(3) This category consists of the Company’s common stock.

(4) This category consists of various fixed-income funds that invest primarily in long-term bonds, as well as a combination of other funds, that together are designed to exceed the performance of related long-term market indices.

(5) This category consists of two fixed-income funds that invest primarily in intermediate duration bonds, as well as a combination of other funds, that together are designed to exceed the performance of related indices.

(6) This category consists of one fund that invests in global real estate securities.

CANADA

Defined Benefit Plan Disclosure [Line Items]

Fair Value of Pension Plan Assets

($ in millions)	Level 1		Level 2		Level 3		2020 Total		2019 Total*
Cash equivalents	$	—	$	—	$	—	$	—	$	1
Equity securities:
Canadian and international (1)		3		—		—		3		2
Fixed-income securities:
Cash matched bonds (2)		—		47		—		47		48
Total assets at fair value	$	3	$	47	$	—	$	50	$	51

* Each category of plan assets is classified within the same level of the fair value hierarchy for 2020 and 2019.

(1) This category comprises one mutual fund that invests primarily in a diverse portfolio of Canadian securities.

(2) This category consists of fixed-income securities, including strips and coupons, issued or guaranteed by the Government of Canada, provinces or municipalities of Canada including their agencies and crown corporations, as well as other governmental bonds and corporate bonds.

Benefit Obligations [Member]

Defined Benefit Plan Disclosure [Line Items]

Assumptions Used in the Calculation of Net Benefit Cost

The following weighted-average assumptions were used to determine the benefit obligations under the plans:

	Pension Benefits				Postretirement Benefits
	2020		2019		2020		2019
Discount rate	2.5	%	2.9	%	2.8	%	3.0	%
Rate of compensation increase	3.6	%	3.6	%