Retirement Plans and Other Benefits (Tables)

12 Months Ended

Jan. 28, 2012

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, measured at January 28, 2012 and January 29, 2011:

	Pension Benefits						Postretirement Benefits
	2011			2010			2011			2010
	(in millions)
Change in benefit obligation
Benefit obligation at beginning of year	$	669		$	654		$	12		$	13
Service cost		12			13			—			—
Interest cost		32			33			1			—
Plan participants’ contributions		—			—			3			3
Actuarial loss		47			24			2			—
Foreign currency translation adjustments		(1	)		6			—			—
Plan amendment		—			—			1			—
Benefits paid		(55	)		(61	)		(4	)		(4	)
Benefit obligation at end of year	$	704		$	669		$	15		$	12
Change in plan assets
Fair value of plan assets at beginning of year	$	601		$	550
Actual return on plan assets		63			70
Employer contributions		31			36
Foreign currency translation adjustments		(1	)		6
Benefits paid		(55	)		(61	)
Fair value of plan assets at end of year	$	639		$	601
Funded status	$	(65	)	$	(68	)	$	(15	)	$	(12	)
Amounts recognized on the Balance Sheet:
Other assets	$	8		$	2		$	—		$	—
Accrued and other liabilities		(3	)		(3	)		(1	)		(1	)
Other liabilities		(70	)		(67	)		(14	)		(11	)
	$	(65	)	$	(68	)	$	(15	)	$	(12	)
Amounts recognized in accumulated other comprehensive loss, pre-tax:
Net loss (gain)	$	446		$	438		$	(21	)	$	(28	)
Prior service cost (credit)		1			1			—			(2	)
	$	447		$	439		$	(21	)	$	(30	)

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

Information for pension plans with an accumulated benefit obligation in excess of plan assets is as follows:

	2011		2010
	(in millions)
Projected benefit obligation	$	619	$	581
Accumulated benefit obligation		619		581
Fair value of plan assets		546		511

Changes in Accumulated Other Comprehensive Loss (Pre-Tax)

The following tables set forth the changes in accumulated other comprehensive loss (pre-tax) at January 28, 2012:

	Pension Benefits			Postretirement Benefits
	(in millions)
Net actuarial loss (gain) at beginning of year	$	438		$	(28	)
Amortization of net (loss) gain		(15	)		5
Loss arising during the year		24			2
Foreign currency translation adjustments		(1	)		—
Net actuarial loss (gain) at end of year(1)	$	446		$	(21	)
Net prior service cost (benefit) at beginning of year	$	1		$	(2	)
Amortization of prior service cost		—			1
Loss arising during the year		—			1
Net prior service cost at end of year(1)	$	1		$	—
Total amount recognized	$	447		$	(21	)

(1) The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (income) during the next year are approximately $16 million and $(4) million related to the pension and postretirement plans, respectively. Additionally, $(1) million is expected to be recognized representing postretirement benefits prior-service costs.

Net Benefit Expense (Income)

The components of net benefit expense (income) are:

	Pension Benefits									Postretirement Benefits
	2011			2010			2009			2011			2010			2009
	(in millions)
Service cost	$	12		$	13		$	11		$	—		$	—		$	—
Interest cost		32			33			36			1			—			1
Expected return on plan assets		(40	)		(40	)		(43	)		—			—			—
Amortization of prior service cost		—			—			1			(1	)		—			—
Amortization of net loss (gain)		15			17			13			(5	)		(6	)		(7	)
Net benefit expense (income)	$	19		$	23		$	18		$	(5	)	$	(6	)	$	(6	)

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

The assumed health care cost trend rates related to the measurement of the Company’s SERP Medical Plan obligations for the year ended January 28, 2012 are as follows:

	Medical			Dental
Initial cost trend rate		8.00	%		5.50	%
Ultimate cost trend rate		5.00	%		5.00	%
Year that the ultimate cost trend rate is reached		2018			2013

Effect of One Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one percentage-point change in the assumed health care cost trend rates would have the following effects:

	1% Increase		1% (Decrease)
	(in millions)
Effect on total service and interest cost components	$	—	$	—
Effect on accumulated postretirement benefit obligation		2		(2	)

Estimated Future Benefit Payments

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

	Pension Benefits		Postretirement Benefits
	(in millions)
2012	$	75	$	1
2013		59		1
2014		58		1
2015		56		1
2016		54		1
2017 – 2021		249		5

Benefit Obligations

Weighted-Average Assumptions used to Determine Benefit Obligations and Net Benefit Cost

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

	Pension Benefits						Postretirement Benefits
	2011			2010			2011			2010
Discount rate		4.16	%		4.98	%		4.00	%		4.60	%
Rate of compensation increase		3.69	%		3.68	%

Net Periodic Benefit Cost

Weighted-Average Assumptions used to Determine Benefit Obligations and 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
	2011			2010			2009			2011			2010			2009
Discount rate		4.99	%		5.25	%		6.22	%		4.60	%		4.90	%		6.20	%
Rate of compensation increase		3.69	%		3.68	%		3.67	%
Expected long-term rate of return on assets		6.59	%		7.22	%		7.63	%

U.S. Qualified Pension Plan

Fair Value of Pension Plan Assets

The fair values of the Company’s U.S. pension plan assets at January 28, 2012 and January 29, 2011 are as follows:

	Level 1		Level 2		Level 3		2011 Total		2010 Total*
	(in millions)
Cash and cash equivalents	$	—	$	13	$	—	$	13	$	4
Equity securities:
U.S. large-cap(1)		—		120		—		120		137
U.S. mid-cap(1)		—		42		—		42		40
International(2)		—		72		—		72		70
Corporate stock(3)		11		—		—		11		7
Fixed-income securities:
Long duration corporate and government bonds(4)		—		221		—		221		214
Intermediate duration corporate and government bonds(5)		—		58		—		58		29
Other types of investments:
Real estate		—		—		8		8		9
Insurance contracts		—		1		—		1		1
Total assets at fair value	$	11	$	527	$	8	$	546	$	511

* Each category of plan assets is classified within the same level of the fair value hierarchy for 2011 and 2010.

(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 two 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 a fixed-income fund that invests primarily in intermediate duration bonds, as well as a combination of other funds, that together are designed to track the performance of the Barclays Capital U.S. Intermediate Credit Index.

Reconciliation of Fair Value of U.S. Pension Plan's Real Estate Investments Classified as Level 3

The following table is a reconciliation of the fair value of the U.S. pension plan’s real estate investments classified as Level 3:

(in millions)	Level 3
Balance at January 30, 2010	$	7
Changes during the year		2
Balance at January 29, 2011	$	9
Unrealized loss on appraised value of real estate		(1	)
Balance at January 28, 2012	$	8

Canadian Qualified Pension Plan

Fair Value of Pension Plan Assets

The fair values of the Company’s Canadian pension plan assets at January 28, 2012 and January 29, 2011 are as follows:

	Level 1		Level 2		Level 3		2011 Total		2010 Total*
	(in millions)
Cash and cash equivalents	$	—	$	5	$	—	$	5	$	1
Equity securities:
Canadian and International(1)		—		5		—		5		6
Debt securities:
Cash matched bonds(2)		—		83		—		83		83
Total assets at fair value	$	—	$	93	$	—	$	93	$	90

* Each category of plan assets is classified within the same level of the fair value hierarchy for 2011 and 2010.

(1) In 2011, this category comprises one mutual fund that invests primarily in a diverse portfolio of Canadian securities. In 2010, this category comprised two mutual funds that invested primarily in a diverse portfolio of Canadian and international equity 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.