Pension Plans and Other Retirement Benefits (Tables)

12 Months Ended

Jan. 31, 2015

Financial Information Related to Funded Defined Benefit Pension Plan and Unfunded Supplemental 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	January 31, 2015			February 1, 2014			January 31, 2015			February 1, 2014
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	996,968		$	1,018,712		$	59,566		$	61,033
Service cost		40,481			44,623			1,398			1,716
Interest cost		49,522			44,654			3,001			2,447
Actuarial losses (gains)		251,144			(84,970	)		19,552			(2,925	)
Benefits paid		(28,348	)		(23,431	)		(1,279	)		(2,705	)
Expenses paid		(2,945	)		(2,620	)		—			—
Plan amendment		3,067			—			—			—
Projected benefit obligation at end of year	$	1,309,889		$	996,968		$	82,238		$	59,566
Accumulated benefit obligation at end of year	$	1,203,464		$	921,723		$	68,591		$	49,957


	Funded Plan Fiscal Year Ended						Unfunded Plan Fiscal Year Ended
In thousands	January 31, 2015			February 1, 2014			January 31, 2015			February 1, 2014
Change in plan assets:
Fair value of plan assets at beginning of year	$	944,801		$	876,083		$	—		$	—
Actual return on plan assets		107,240			64,769			—			—
Employer contribution		150,000			30,000			1,279			2,705
Benefits paid		(28,348	)		(23,431	)		(1,279	)		(2,705	)
Expenses paid		(2,945	)		(2,620	)		—			—
Fair value of plan assets at end of year	$	1,170,748		$	944,801		$	—		$	—
Reconciliation of funded status:
Projected benefit obligation at end of year	$	1,309,889		$	996,968		$	82,238		$	59,566
Fair value of plan assets at end of year		1,170,748			944,801			—			—
Funded status – excess obligation	$	139,141		$	52,167		$	82,238		$	59,566
Net liability recognized on consolidated balance sheets	$	139,141		$	52,167		$	82,238		$	59,566
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss):
Plan amendment	$	3,067		$	—		$	—		$	2
Accumulated actuarial losses		401,165			205,923			29,198			11,792
Amounts included in accumulated other comprehensive income (loss)	$	404,232		$	205,923		$	29,198		$	11,794

Weighted Average Assumptions for Obligation

expected cash flows. 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
	January 31, 2015			February 1, 2014			January 31, 2015			February 1, 2014
Discount rate		4.00	%		5.00	%		3.70	%		4.80	%
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	January 31, 2015			February 1, 2014			February 2, 2013			January 31, 2015			February 1, 2014			February 2, 2013
	(53 weeks)									(53 weeks)
Net periodic pension cost:
Service cost	$	40,481		$	44,623		$	41,813		$	1,398		$	1,716		$	1,448
Interest cost		49,522			44,654			42,029			3,001			2,447			2,321
Expected return on plan assets		(65,187	)		(60,474	)		(54,759	)		—			—			—
Amortization of prior service cost		—			—			—			2			3			3
Amortization of net actuarial loss		13,848			28,070			25,373			2,146			2,884			1,465
Expense related to current period		38,664			56,873			54,456			6,547			7,050			5,237
Correction of prior years pension accruals		—			—			26,964			—			—			—
Total expense	$	38,664		$	56,873		$	81,420		$	6,547		$	7,050		$	5,237
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net (gain) loss	$	209,091		$	(89,265	)	$	61,692		$	19,552		$	(2,925	)	$	6,666
Amortization of net (loss)		(13,848	)		(28,070	)		(25,373	)		(2,146	)		(2,884	)		(1,465	)
Plan amendment		3,067			—			—			(2	)		(3	)		(3	)
Total recognized in other comprehensive income	$	198,310		$	(117,335	)	$	36,319		$	17,404		$	(5,812	)	$	5,198
Total recognized in net periodic benefit cost and other comprehensive income	$	236,974		$	(60,462	)	$	117,739		$	23,951		$	1,238		$	10,435
Weighted average assumptions for expense purposes:
Discount rate		5.00%			4.40%			4.80%			4.80%			4.00%			4.40%
Expected rate of return on plan assets		7.00%			7.00%			7.40%			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
2016	$	30,120	$	3,252
2017		33,387		6,543
2018		37,166		6,658
2019		41,199		6,978
2020		45,375		7,396
2021 through 2025		294,930		31,804

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 January 31, 2015:


	Funded Plan
In thousands	Level 1		Level 2		Level 3		Total
Asset category:
Short-term investments	$	136,276	$	—	$	—	$	136,276
Equity Securities:
Domestic equity		77,373		—		—		77,373
International equity		157,392		—		—		157,392
Fixed Income Securities:
Corporate and government bond funds		—		300,761		—		300,761
Common/Collective Trusts		—		485,619		8,283		493,902
Limited Partnerships		—		—		5,044		5,044
Fair value of plan assets	$	371,041	$	786,380	$	13,327	$	1,170,748

The following table presents the fair value hierarchy 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		—		214,954		—		214,954
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

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 January 31, 2015 and February 1, 2014:


In thousands	Common/Collective Trusts			Limited Partnerships
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
Earned income, net of management expenses		557			786
Unrealized gain on investment		51			76
Purchases, sales, issuances and settlements, net		(2,746	)		(3,531	)
Balance as of January 31, 2015	$	8,283		$	5,044

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

January 31,
2015

February 1,
2014

Equity securities

50%

44%

51%

Fixed income

50%

45%

44%

All other – primarily cash

—

11%