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Retirement Plans and Other Benefits (Tables)
 12 Months Ended
Jan. 31, 2015
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, measured at January 31, 2015 and February 1, 2014:
 
 
 
 
 
 
 
Pension Benefits
 
Postretirement Benefits
  
 
2014
 
2013
 
2014
 
2013
  
 
(in millions)
Change in benefit obligation
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Benefit obligation at beginning of year
 
$
674
 
 
$
706
 
 
$
15
 
 
$
15
 
Service cost
 
 
15
 
 
 
14
 
 
 
—
 
 
 
—
 
Interest cost
 
 
28
 
 
 
25
 
 
 
1
 
 
 
1
 
Plan participants’ contributions
 
 
—
 
 
 
—
 
 
 
2
 
 
 
2
 
Actuarial (gain) loss
 
 
67
 
 
 
(11
) 
 
 
4
 
 
 
—
 
Foreign currency translation adjustments
 
 
(9
) 
 
 
(9
) 
 
 
—
 
 
 
—
 
Runners Point Group acquisition
 
 
—
 
 
 
1
 
 
 
—
 
 
 
—
 
Benefits paid
 
 
(53
) 
 
 
(52
) 
 
 
(3
) 
 
 
(3
) 
Benefit obligation at end of year
 
$
722
 
 
$
674
 
 
$
19
 
 
$
15
 
Change in plan assets
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Fair value of plan assets at beginning of year
 
$
650
 
 
$
673
 
 
 
  
 
 
 
  
 
Actual return on plan assets
 
 
90
 
 
 
33
 
 
 
  
 
 
 
  
 
Employer contributions
 
 
9
 
 
 
5
 
 
 
  
 
 
 
  
 
Foreign currency translation adjustments
 
 
(10
) 
 
 
(9
) 
 
 
  
 
 
 
  
 
Benefits paid
 
 
(53
) 
 
 
(52
) 
 
 
  
 
 
 
  
 
Fair value of plan assets at end of year
 
$
686
 
 
$
650
 
 
 
  
 
 
 
     
 
 
 
 
 
 
 
 
Pension Benefits
 
Postretirement Benefits
  
 
2014
 
2013
 
2014
 
2013
  
 
(in millions)
Funded status
 
$
(36
) 
 
$
(24
) 
 
$
(19
) 
 
$
(15
) 
Amounts recognized on the balance sheet:
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Other assets
 
$
13
 
 
$
4
 
 
$
—
 
 
$
—
 
Accrued and other liabilities
 
 
(3
) 
 
 
(3
) 
 
 
(1
) 
 
 
(1
) 
Other liabilities
 
 
(46
) 
 
 
(25
) 
 
 
(18
) 
 
 
(14
) 
  
 
$
(36
) 
 
$
(24
) 
 
$
(19
) 
 
$
(15
) 
Amounts recognized in accumulated other comprehensive loss, pre-tax:
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Net loss (gain)
 
$
394
 
 
$
399
 
 
$
(6
) 
 
$
(13
) 
Prior service cost
 
 
1
 
 
 
1
 
 
 
—
 
 
 
—
 
  
 
$
395
 
 
$
400
 
 
$
(6
) 
 
$
(13
) 
Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets
Information for those pension plans with an accumulated benefit obligation in excess of plan assets is as follows:
 
 
 
 
 
2014
 
2013
  
 
(in millions)
Projected benefit obligation
 
$
662
 
 
$
603
 
Accumulated benefit obligation
 
 
662
 
 
 
603
 
Fair value of plan assets
 
 
613
 
 
 
575
 
Changes in Accumulated Other Comprehensive Loss (Pre-Tax)
The following tables set forth the changes in accumulated other comprehensive loss (pre-tax) at January 31, 2015:
 
 
 
 
 
Pension
Benefits
 
Postretirement
Benefits
  
 
(in millions)
Net actuarial loss (gain) at beginning of year
 
$
399
 
 
$
(13
) 
Amortization of net (loss) gain
 
 
(15
) 
 
 
3
 
Loss arising during the year
 
 
15
 
 
 
4
 
Foreign currency fluctuations
 
 
(5
) 
 
 
—
 
Net actuarial loss (gain) at end of year(1)
 
$
394
 
 
$
(6
) 
Net prior service cost at end of year(1)
 
 
1
 
 
 
—
 
Total amount recognized
 
$
395
 
 
$
(6
) 
(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 $14 million and $(2) million related to the pension and postretirement plans, respectively. The net prior service cost did not change during the year.
Net Benefit Expense (Income)
The components of net benefit expense (income) are:
 
 
 
 
 
 
 
 
 
Pension Benefits
 
Postretirement Benefits
  
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
  
 
(in millions)
Service cost
 
$
15
 
 
$
14
 
 
$
13
 
 
$
 —
 
 
$
 —
 
 
$
 —
 
Interest cost
 
 
28
 
 
 
25
 
 
 
28
 
 
 
1
 
 
 
1
 
 
 
—
 
Expected return on plan assets
 
 
(38
) 
 
 
(39
) 
 
 
(40
) 
 
 
—
 
 
 
—
 
 
 
—
 
Amortization of prior service cost
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Amortization of net loss (gain)
 
 
15
 
 
 
17
 
 
 
17
 
 
 
(3
) 
 
 
(3
) 
 
 
(4
) 
Net benefit expense (income)
 
$
20
 
 
$
17
 
 
$
18
 
 
$
(2
) 
 
$
(2
) 
 
$
(4
) 
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 on the SERP Medical Plan:
 
 
 
 
 
1% Increase
 
1% (Decrease)
  
 
(in millions)
Effect on total service and interest cost components
 
$
 —
 
 
$
 —
 
Effect on accumulated postretirement benefit obligation
 
 
4
 
 
 
(3
) 
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)
2015
 
$
66
 
 
$
1
 
2016
 
 
55
 
 
 
1
 
2017
 
 
53
 
 
 
1
 
2018
 
 
52
 
 
 
1
 
2019
 
 
53
 
 
 
1
 
2020 – 2024
 
 
232
 
 
 
5
 
Benefit Obligations  
Defined Benefit Plan Disclosure [Line Items]  
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
  
 
2014
 
2013
 
2014
 
2013
Discount rate
 
 
3.43
% 
 
 
4.32
% 
 
 
3.40
% 
 
 
4.20
% 
Rate of compensation increase
 
 
3.67
% 
 
 
3.69
% 
 
 
  
 
 
 
  
 
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
  
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Initial cost trend rate
 
 
7.00
% 
 
 
7.00
% 
 
 
7.50
% 
 
 
5.00
% 
 
 
5.00
% 
 
 
5.00
% 
Ultimate cost trend rate
 
 
5.00
% 
 
 
5.00
% 
 
 
5.00
% 
 
 
5.00
% 
 
 
5.00
% 
 
 
5.00
% 
Year that the ultimate cost trend rate is reached
 
 
2019
 
 
 
2018
 
 
 
2018
 
 
 
2013
 
 
 
2013
 
 
 
2013
Net Periodic Benefit Cost  
Defined Benefit Plan Disclosure [Line Items]  
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
  
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Discount rate
 
 
4.33
% 
 
 
3.79
% 
 
 
4.16
% 
 
 
4.20
% 
 
 
3.70
% 
 
 
4.00
% 
Rate of compensation increase
 
 
3.67
% 
 
 
3.69
% 
 
 
3.68
% 
 
 
  
 
 
 
  
 
 
 
  
 
Expected long-term rate of return on assets
 
 
6.25
% 
 
 
6.24
% 
 
 
6.63
% 
 
 
  
 
 
 
  
 
 
 
  
 
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 net periodic cost under the SERP Medical Plan:
 
 
 
 
 
 
 
 
 
Medical Trend Rate
 
Dental Trend Rate
  
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Initial cost trend rate
 
 
7.00
% 
 
 
7.50
% 
 
 
8.00
% 
 
 
5.00
% 
 
 
5.00
% 
 
 
5.50
% 
Ultimate cost trend rate
 
 
5.00
% 
 
 
5.00
% 
 
 
5.00
% 
 
 
5.00
% 
 
 
5.00
% 
 
 
5.00
% 
Year that the ultimate cost trend rate is reached
 
 
2018
 
 
 
2018
 
 
 
2018
 
 
 
2013
 
 
 
2013
 
 
 
2013
 
U.S. Qualified Pension Plan  
Defined Benefit Plan Disclosure [Line Items]  
Fair Value of Pension Plan Assets
The fair values of the Company’s U.S. pension plan assets at January 31, 2015 and February 1, 2014 were as follows:
 
 
 
 
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
2014
Total
 
2013
Total*
  
 
(in millions)
Cash and cash equivalents
 
$
 —
 
 
$
 1
 
 
$
 —
 
 
$
 1
 
 
$
 —
 
Equity securities:
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
U.S. large-cap(1)
 
 
—
 
 
 
102
 
 
 
—
 
 
 
102
 
 
 
101
 
U.S. mid-cap(1)
 
 
—
 
 
 
31
 
 
 
—
 
 
 
31
 
 
 
30
 
International(2)
 
 
—
 
 
 
71
 
 
 
—
 
 
 
71
 
 
 
67
 
Corporate stock(3)
 
 
21
 
 
 
—
 
 
 
—
 
 
 
21
 
 
 
15
 
Fixed-income securities:
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Long duration corporate and government bonds(4)
 
 
—
 
 
 
254
 
 
 
—
 
 
 
254
 
 
 
236
 
Intermediate duration corporate and government bonds(5)
 
 
—
 
 
 
110
 
 
 
—
 
 
 
110
 
 
 
105
 
Other types of investments:
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Real estate securities(6)
 
 
—
 
 
 
20
 
 
 
—
 
 
 
20
 
 
 
20
 
Insurance contracts
 
 
—
 
 
 
1
 
 
 
—
 
 
 
1
 
 
 
1
 
Other(7)
 
 
—
 
 
 
2
 
 
 
—
 
 
 
2
 
 
 
—
 
Total assets at fair value
 
$
21
 
 
$
592
 
 
$
—
 
 
$
613
 
 
$
575
 
*
Each category of plan assets is classified within the same level of the fair value hierarchy for 2014 and 2013.
(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. The increase from the prior year is due to price appreciation No additional stock was contributed during the year.
(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 invests 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.
(7)
This category consists primarily of cash related to net pending trade purchases and sales.
Canadian Qualified Pension Plan  
Defined Benefit Plan Disclosure [Line Items]  
Fair Value of Pension Plan Assets
The fair values of the Company’s Canadian pension plan assets at January 31, 2015 and February 1, 2014 were as follows:
 
 
 
 
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
2014
Total
 
2013
Total*
  
 
(in millions)
Cash and cash equivalents
 
$
 —
 
 
$
3
 
 
$
 —
 
 
$
3
 
 
$
 —
 
Equity securities:
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Canadian and international(1)
 
 
5
 
 
 
—
 
 
 
—
 
 
 
5
 
 
 
5
 
Fixed-income securities:
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Cash matched bonds(2)
 
 
—
 
 
 
65
 
 
 
—
 
 
 
65
 
 
 
70
 
Total assets at fair value
 
$
5
 
 
$
68
 
 
$
—
 
 
$
73
 
 
$
75
 
*
Each category of plan assets is classified within the same level of the fair value hierarchy for 2014 and 2013.
(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.