Pension Plans and Other Retirement Benefits

6 Months Ended

Aug. 01, 2015

Pension Plans and Other Retirement Benefits

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 1, 2015			August 2, 2014			August 1, 2015		August 2, 2014
Service cost	$	13,053		$	10,123		$	694	$	449
Interest cost		12,949			12,297			871		694
Expected return on plan assets		(19,493	)		(16,302	)		—		—
Recognized actuarial losses		8,547			3,256			1,379		306

Total expense	$	15,056		$	9,374		$	2,944	$	1,449


	Funded Plan						Unfunded Plan
	Twenty-Six Weeks Ended						Twenty-Six Weeks Ended
In thousands	August 1, 2015			August 2, 2014			August 1, 2015		August 2, 2014
Service cost	$	26,108		$	20,246		$	1,387	$	899
Interest cost		25,898			24,594			1,742		1,388
Expected return on plan assets		(38,986	)		(32,605	)		—		—
Amortization of prior service cost		—			—			—		1
Recognized actuarial losses		17,094			6,513			2,758		609

Total expense	$	30,114		$	18,748		$	5,887	$	2,897

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 2016 for the funded plan. TJX anticipates making payments of $3.3 million to provide current benefits coming due under the unfunded plan in fiscal 2016.

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 the periods presented.

TJX also has an unfunded postretirement medical plan which was closed to new benefits in fiscal 2006. The liability as of August 1, 2015 is estimated at $1.1 million, of which $1.0 million 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 both the quarters ended August 1, 2015 and August 2, 2014. Amortization from other comprehensive income to net income was $1.7 million for both the twenty-six weeks ended August 1, 2015 and the twenty-six weeks ended August 2, 2014.