Note G. Pension Plans and Other Retirement Benefits

Presented below is financial information related to TJX’s funded defined benefit retirement plan (funded plan) and its unfunded supplemental retirement plan (unfunded plan) for the periods shown.


	Funded Plan						Unfunded Plan
	Thirteen Weeks Ended						Thirteen Weeks Ended
	November 2,			October 27,			November 2,		October 27,
In thousands	2013			2012			2013		2012

Service cost	$	10,919		$	11,709		$	245	$	407
Interest cost		10,758			10,856			650		609
Expected return on plan assets		(16,108	)		(13,216	)		—		—
Amortization of prior service cost		—			—			—		1
Recognized actuarial losses		7,009			4,926			1,041		894

Expense related to current period		12,578			14,275			1,936		1,911
Correction of prior years pension accruals		—			22,317			—		—

Total expense	$	12,578		$	36,592		$	1,936	$	1,911


	Funded Plan						Unfunded Plan
	Thirty-Nine Weeks Ended						Thirty-Nine Weeks Ended
	November 2,			October 27,			November 2,		October 27,
In thousands	2013			2012			2013		2012

Service cost	$	33,467		$	31,359		$	1,287	$	1,086
Interest cost		33,408			31,381			1,835		1,749
Expected return on plan assets		(45,355	)		(41,068	)		—		—
Amortization of prior service cost		—			—			2		2
Recognized actuarial losses		20,846			19,121			2,163		1,844

Expense related to current period		42,366			40,793			5,287		4,681
Correction of prior years pension accruals		—			22,317			—		—

Total expense	$	42,366		$	63,110		$	5,287	$	4,681

During the fiscal 2013 third quarter, TJX recorded an adjustment to its pension accrual to correct an understatement related to a computational error that commenced in fiscal 2008. The cumulative impact to correct the understatement of pension expense through the end of fiscal 2012 totaled $27.0 million of which $22.3 million was recorded in the fiscal 2013 third quarter. Management evaluated the impact of correcting the error and determined that there was no material impact on the prior year financial statements as reported.

TJX’s policy with respect to the funded plan is to fund, at a minimum, the amount required to maintain a funded status of 80% of the applicable pension liability (the funding target pursuant to the Internal Revenue Code section 430) or such other amount sufficient to avoid restrictions with respect to the funding of TJX’s nonqualified plans under the Internal Revenue Code. TJX does not anticipate any required funding in fiscal 2014 for the funded plan. TJX anticipates making payments of $3.5 million to provide current benefits coming due under the unfunded plan in fiscal 2014.

The amounts included in amortization of prior service cost and recognized actuarial losses in the table above have been reclassified in their entirety from other comprehensive income to the statements of income, net of related tax effects, for both periods presented.