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
	November 1,			November 2,			November 1,		November 2,
In thousands	2014			2013			2014		2013

Service cost	$	10,115		$	10,919		$	149	$	245
Interest cost		12,547			10,758			863		650
Expected return on plan assets		(16,285	)		(16,108	)		—		—
Amortization of prior service cost		—			—			1		—
Recognized actuarial losses		3,873			7,009			1,000		1,041

Total expense	$	10,250		$	12,578		$	2,013	$	1,936


	Funded Plan						Unfunded Plan
	Thirty-Nine Weeks Ended						Thirty-Nine Weeks Ended
	November 1,			November 2,			November 1,		November 2,
In thousands	2014			2013			2014		2013

Service cost	$	30,361		$	33,467		$	1,048	$	1,287
Interest cost		37,141			33,408			2,251		1,835
Expected return on plan assets		(48,890	)		(45,355	)		—		—
Amortization of prior service cost		—			—			2		2
Recognized actuarial losses		10,386			20,846			1,609		2,163

Total expense	$	28,998		$	42,366		$	4,910	$	5,287

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 made a voluntary contribution of $25.0 million to the funded plan in September 2014. 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 November 1, 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 eligible plan participants. Amortization from other comprehensive income to net income was $864,000 for the quarter ended November 1, 2014 and $863,000 for the quarter ended November 2, 2013. Amortization from other comprehensive income to net income was $2.6 million for both the thirty nine weeks ended November 1, 2014 and the thirty nine weeks ended November 2, 2013.