Note H. Pension Plans and Other Retirement Benefits

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


	Funded Plan						Unfunded Plan
	Thirteen Weeks Ended						Thirteen Weeks Ended
In thousands	August 2, 2014			August 3, 2013			August 2, 2014		August 3, 2013

Service cost	$	10,123		$	11,274		$	449	$	521
Interest cost		12,297			11,325			694		593
Expected return on plan assets		(16,302	)		(14,624	)		—		—
Amortization of prior service cost		—			—			—		1
Recognized actuarial losses		3,256			6,919			306		560

Total expense	$	9,374		$	14,894		$	1,449	$	1,675


	Funded Plan						Unfunded Plan
	Twenty-Six Weeks Ended						Twenty-Six Weeks Ended
In thousands	August 2, 2014			August 3, 2013			August 2, 2014		August 3, 2013

Service cost	$	20,246		$	22,548		$	899	$	1,042
Interest cost		24,594			22,650			1,388		1,186
Expected return on plan assets		(32,605	)		(29,247	)		—		—
Amortization of prior service cost		—			—			1		2
Recognized actuarial losses		6,513			13,837			609		1,120

Total expense	$	18,748		$	29,788		$	2,897	$	3,350

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 2015 for the funded plan. TJX anticipates making payments of $3.4 million to provide current benefits coming due under the unfunded plan in fiscal 2015.

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.

TJX also has an unfunded postretirement medical plan which was closed to new benefits in fiscal 2006. The liability as of August 2, 2014 is estimated at $1.2 million, all of which is included in non-current liabilities on the balance sheet.

The amendment to the plan benefits in fiscal 2006 resulted in a negative plan amendment which is being amortized to income over the estimated average remaining life of the active plan participants. Amortization from other comprehensive income to net income was $864,226 for the quarter ended August 2, 2014 and $862,856 for the quarter ended August 3, 2013. Amortization from other comprehensive income to net income was $1.7 million for the both the twenty six weeks ended August 2, 2014 and the twenty six weeks ended August 3, 2013.