Pension Plans and Other Retirement Benefits (Tables)

12 Months Ended

Feb. 01, 2014

Changes in Funded and Unfunded Pension and Retirement Plan

Presented below is financial information relating to TJX’s funded defined benefit pension plan (qualified pension plan or funded plan) and its unfunded supplemental pension plan (unfunded plan) for the fiscal years indicated:


	Funded Plan Fiscal Year Ended						Unfunded Plan Fiscal Year Ended
In thousands	February 1, 2014			February 2, 2013			February 1, 2014			February 2, 2013
				(53 weeks)						(53 weeks)
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	1,018,712		$	850,687		$	61,033		$	53,351
Service cost		44,623			41,813			1,716			1,448
Interest cost		44,654			42,029			2,447			2,321
Correction of prior years pension accruals		—			33,788			—			—
Actuarial losses (gains)		(84,970	)		70,438			(2,925	)		6,666
Benefits paid		(23,431	)		(17,989	)		(2,705	)		(2,753	)
Expenses paid		(2,620	)		(2,054	)		—			—
Projected benefit obligation at end of year	$	996,968		$	1,018,712		$	59,566		$	61,033
Accumulated benefit obligation at end of year	$	921,723		$	939,905		$	49,957		$	49,879


	Funded Plan Fiscal Year Ended						Unfunded Plan Fiscal Year Ended
In thousands	February 1, 2014			February 2, 2013			February 1, 2014			February 2, 2013
				(53 weeks)						(53 weeks)
Change in plan assets:
Fair value of plan assets at beginning of year	$	876,083		$	750,797		$	—		$	—
Actual return on plan assets		64,769			70,329			—			—
Employer contribution		30,000			75,000			2,705			2,753
Benefits paid		(23,431	)		(17,989	)		(2,705	)		(2,753	)
Expenses paid		(2,620	)		(2,054	)		—			—
Fair value of plan assets at end of year	$	944,801		$	876,083		$	—		$	—
Reconciliation of funded status:
Projected benefit obligation at end of year	$	996,968		$	1,018,712		$	59,566		$	61,033
Fair value of plan assets at end of year		944,801			876,083			—			—
Funded status – excess obligation	$	52,167		$	142,629		$	59,566		$	61,033
Net liability recognized on consolidated balance sheets	$	52,167		$	142,629		$	59,566		$	61,033

Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss):
Prior service cost	$	—		$	—		$	2		$	5
Accumulated actuarial losses		205,923			323,258			11,792			17,601
Amounts included in accumulated other comprehensive income (loss)	$	205,923		$	323,258		$	11,794		$	17,606

Weighted Average Assumptions for Obligation

Presented below are weighted average assumptions for measurement purposes for determining the obligation at the year-end measurement date:


	Funded Plan Fiscal Year Ended						Unfunded Plan Fiscal Year Ended
	February 1, 2014			February 2, 2013			February 1, 2014			February 2, 2013
Discount rate		5.00	%		4.40	%		4.80	%		4.00	%
Rate of compensation increase		4.00	%		4.00	%		6.00	%		6.00	%

Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income

The following are the components of net periodic benefit cost and other amounts recognized in other comprehensive income related to our pension plans:


	Funded Plan Fiscal Year Ended									Unfunded Plan Fiscal Year Ended
Dollars in thousands	February 1, 2014			February 2, 2013			January 28, 2012			February 1, 2014			February 2, 2013			January 28, 2012
				(53 weeks)									(53 weeks)
Net periodic pension cost:
Service cost	$	44,623		$	41,813		$	33,858		$	1,716		$	1,448		$	1,188
Interest cost		44,654			42,029			38,567			2,447			2,321			2,410
Expected return on plan assets		(60,474	)		(54,759	)		(49,059	)		—			—			—
Amortization of prior service cost		—			—			—			3			3			4
Amortization of net actuarial loss		28,070			25,373			10,854			2,884			1,465			666

Expense related to current period		56,873			54,456			34,220			7,050			5,237			4,268
Correction of prior years pension accruals		—			26,964			—			—			—			—

Total expense	$	56,873		$	81,420		$	34,220		$	7,050		$	5,237		$	4,268

Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net (gain) loss	$	(89,265	)	$	61,692		$	148,759		$	(2,925	)	$	6,666		$	3,582
Amortization of net (loss)		(28,070	)		(25,373	)		(10,854	)		(2,884	)		(1,465	)		(666	)
Amortization of prior service cost		—			—			—			(3	)		(3	)		(4	)

Total recognized in other comprehensive income	$	(117,335	)	$	36,319		$	137,905		$	(5,812	)	$	5,198		$	2,912

Total recognized in net periodic benefit cost and other comprehensive income	$	(60,462	)	$	117,739		$	172,125		$	1,238		$	10,435		$	7,180

Weighted average assumptions for expense purposes:
Discount rate		4.40%			4.80%			5.75%			4.00%			4.40%			5.25%
Expected rate of return on plan assets		7.00%			7.40%			7.50%			N/A			N/A			N/A
Rate of compensation increase		4.00%			4.00%			4.00%			6.00%			6.00%			6.00%

Schedule of Benefits Expected to be Paid in Each of Next Five Fiscal Years and Thereafter

The following is a schedule of the benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter:


In thousands	Funded Plan Expected Benefit Payments		Unfunded Plan Expected Benefit Payments
Fiscal Year
2015	$	26,650	$	3,395
2016		29,667		2,418
2017		33,045		4,513
2018		36,970		4,591
2019		40,952		4,735
2020 through 2024		268,314		21,163

Fair Value for Pension Assets Measured at Fair Value on Recurring Basis

The following table presents the fair value hierarchy (See Note G) for pension assets measured at fair value on a recurring basis as of February 1, 2014:


	Funded Plan
In thousands	Level 1		Level 2		Level 3		Total
Asset category:
Short-term investments	$	57,217	$	—	$	—	$	57,217
Equity Securities:
Domestic equity		74,415		—		—		74,415
International equity		150,149		—		—		150,149
Fixed Income Securities:
Corporate and government bond funds		—		214,752		—		214,752
Futures Contracts		—		202		—		202
Common/Collective Trusts		—		429,932		10,421		440,353
Limited Partnerships		—		—		7,713		7,713

Fair value of plan assets	$	281,781	$	644,886	$	18,134	$	944,801

The following table presents the fair value hierarchy for pension assets measured at fair value on a recurring basis as of February 2, 2013:


	Funded Plan
In thousands	Level 1		Level 2		Level 3		Total
Asset category:
Short-term investments	$	144,008	$	—	$	—	$	144,008
Equity Securities:
Domestic equity		65,105		—		—		65,105
International equity		61,944		—		—		61,944
Fixed Income Securities:
Corporate and government bond funds		—		203,931		—		203,931
Common/Collective Trusts		—		376,873		13,158		390,031
Limited Partnerships		—		—		11,064		11,064

Fair value of plan assets	$	271,057	$	580,804	$	24,222	$	876,083

Reconciliation of Level 3 Plan Assets Measured at Fair Value

The following table presents a reconciliation of Level 3 plan assets measured at fair value for the years ended February 1, 2014 and February 2, 2013:


In thousands	Common/Collective Trusts			Limited Partnerships
Balance as of January 28, 2012	$	14,775		$	12,042
Earned income, net of management expenses		1,258			348
Unrealized gain on investment		39			595
Purchases, sales, issuances and settlements, net		(2,914	)		(1,921	)
Balance as of February 2, 2013	$	13,158		$	11,064
Earned income, net of management expenses		671			312
Unrealized gain on investment		676			507
Purchases, sales, issuances and settlements, net		(4,084	)		(4,170	)
Balance as of February 1, 2014	$	10,421		$	7,713

Summary of Target Allocation for Plan Assets Along with Actual Allocation of Plan Assets as of Valuation Date

The following is a summary of TJX’s target allocation for plan assets along with the actual allocation of plan assets as of the valuation date for the fiscal years presented:


			Actual Allocation for Fiscal Year Ended
	Target Allocation		February 1, 2014		February 2, 2013
Equity securities		50%		51%		46%
Fixed income		50%		44%		44%
All other – primarily cash		—		5%		10%