Pension and Postretirement Plans

3 Months Ended

Apr. 28, 2012

Pension and Postretirement Plans

8. 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 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:

	Pension						Postretirement
	Benefits						Benefits
	April 28,			April 30,			April 28,			April 30,
(in millions)	2012			2011			2012			2011
Service cost	$	3		$	3		$	—		$	—
Interest cost		7			8			—			—
Expected return on plan assets		(10	)		(10	)		—			—
Amortization of net loss (gain)		4			4			(1	)		(1	)
Net benefit expense (income)	$	4		$	5		$	(1	)	$	(1	)

No pension contributions to the U.S. or Canadian qualified plans were made during the thirteen weeks ended April 28, 2012. Additionally, no pension contributions to its U.S. or Canadian qualified plans are required in 2012. During the thirteen weeks ended April 30, 2011 the Company made a $1 million contribution to its Canadian qualified plan.

The Company and the Company’s U.S. retirement plan are defendants in a purported class action in which the plaintiff alleges that, in connection with the 1996 conversion of the retirement plan to a defined benefit plan with a cash balance formula, the Company and the retirement plan failed to properly advise plan participants of the “wear-away” effect of the conversion. Plaintiff asserts claims for breach of fiduciary duty under the Employee Retirement Income Security Act of 1974 (ERISA) and violation of the statutory provisions governing the content of the Summary Plan Description. Claims for alleged violations of the notice provision of Section 204(h) of ERISA and ERISA’s age discrimination provisions were dismissed by the court. The case is currently in the discovery stage. Because of the inherent uncertainties of such matters, and because discovery has not been completed, the Company is currently unable to make an estimate of loss or range of loss for this case. Management does not believe that the outcome of this legal proceeding would have a material adverse effect on the Company’s consolidated financial position, liquidity, or results of operations, taken as a whole.