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Pension Plans and Other Retirement Benefits | 9 Months Ended
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Oct. 29, 2016
Pension Plans and Other Retirement Benefits | Note H. Pension Plans and Other Retirement Benefits 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 periods shown:
|  | Funded Plan |  |  | Unfunded Plan |
|  | Thirteen Weeks Ended |  |  | Thirteen Weeks Ended |
In thousands |  | October 29, 2016 |  |  | October 31, 2015 |  |  | October 29, 2016 |  |  | October 31, 2015 |
Service cost |  | $ | 11,360 |  |  | $ | 11,453 |  |  | $ | 293 |  |  | $ | (215 | )
Interest cost |  |  | 14,023 |  |  |  | 12,885 |  |  |  | 793 |  |  |  | 533 |
Expected return on plan assets |  |  | (17,633 | ) |  |  | (19,546 | ) |  |  | — |  |  |  | — |
Recognized actuarial losses |  |  | 7,943 |  |  |  | 8,048 |  |  |  | 783 |  |  |  | 211 |
Expense related to current period |  |  | 15,693 |  |  |  | 12,840 |  |  |  | 1,869 |  |  |  | 529 |
Pension settlement charge |  |  | 31,173 |  |  |  | — |  |  |  | — |  |  |  | — |
Total expense |  | $ | 46,866 |  |  | $ | 12,840 |  |  | $ | 1,869 |  |  | $ | 529 |
|  | Funded Plan |  |  | Unfunded Plan |
|  | Thirty-Nine Weeks Ended |  |  | Thirty-Nine Weeks Ended |
In thousands |  | October 29, 2016 |  |  | October 31, 2015 |  |  | October 29, 2016 |  |  | October 31, 2015 |
Service cost |  | $ | 33,778 |  |  | $ | 37,561 |  |  | $ | 1,376 |  |  | $ | 1,172 |
Interest cost |  |  | 42,747 |  |  |  | 38,783 |  |  |  | 2,543 |  |  |  | 2,275 |
Expected return on plan assets |  |  | (53,503 | ) |  |  | (58,532 | ) |  |  | — |  |  |  | — |
Recognized actuarial losses |  |  | 22,362 |  |  |  | 25,142 |  |  |  | 2,512 |  |  |  | 2,969 |
Net periodic pension cost |  |  | 45,384 |  |  |  | 42,954 |  |  |  | 6,431 |  |  |  | 6,416 |
Pension settlement charge |  |  | 31,173 |  |  |  | — |  |  |  | — |  |  |  | — |
Total expense |  | $ | 76,557 |  |  | $ | 42,954 |  |  | $ | 6,431 |  |  | $ | 6,416 |
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 2017 for the funded plan. TJX anticipates making payments of $3.3 million to provide current benefits coming due under the unfunded plan in fiscal 2017. The amounts included in 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. During the third quarter, TJX offered eligible, former TJX Associates, who had not yet commenced receiving their pension benefit, an opportunity to receive a lump sum payout of their vested pension benefit. On October 21, 2016 the Company’s pension plan paid $103.2 million from pension plan assets to those who accepted this offer, thereby reducing its pension benefit obligations. The transaction had no cash impact on TJX but did result in a non-cash pre-tax pension settlement charge of $31.2 million, which is reported separately on the consolidated statements of income. As a result of the lump sum payout the Company re-measured the funded status of its pension plan as of September 30, 2016. The assumptions for pension expense presented above includes a discount rate of 4.80% through the measurement date and 3.80% thereafter. The expected rate of return on plan assets is 6.50% through the measurement date and 6.00% thereafter. The discount rate for determining the obligation at the measurement date is 3.80%. Presented below is the funded status of the plan as a result of this measurement and lump sum payment:
In thousands |  |  |
Change in projected benefit obligation: |  |  |  |
Projected benefit obligation at beginning of year |  | $ | 1,213,000 |
Service cost |  |  | 28,337 |
Interest cost |  |  | 38,754 |
Actuarial (gains) losses |  |  | 231,636 |
Benefits paid including lump sum payment |  |  | (122,029 | )
Expenses paid |  |  | (2,980 | )
Projected benefit obligation at measurement date |  | $ | 1,386,718 |
Change in plan assets: |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 1,119,842 |
Actual return on plan assets |  |  | 159,787 |
Employer contribution |  |  | — |
Benefits paid including lump sum payment |  |  | (122,029 | )
Expenses paid |  |  | (2,980 | )
Fair value of plan assets at measurement date |  | $ | 1,154,620 |
Funded status: |  |  |  |
Projected benefit obligation at measurement date |  | $ | 1,386,718 |
Fair value of plan assets at measurement date |  |  | 1,154,620 |
Funded status – excess obligation at measurement date |  | $ | 232,098 |
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss): |  |  |  |
Prior service cost |  | $ | 2,438 |
Accumulated actuarial losses |  |  | 416,873 |
Amounts included in accumulated other comprehensive income (loss) |  | $ | 419,311 |
TJX also has an unfunded postretirement medical plan which was closed to new benefits in fiscal 2006. The amendment to the plan benefits in fiscal 2006 resulted in a negative plan amendment which was being amortized to income over the estimated average remaining life of the eligible plan participants. During the first quarter of fiscal 2017, TJX terminated the unfunded postretirement medical plan and made a discretionary lump sum payment to participants. The settlement of the liability and the recognition of the remaining negative plan amendment resulted in a pre-tax benefit of $5.5 million in the first quarter of fiscal 2017. Amortization from other comprehensive income to net income was $864,000 for the quarter ended October 31, 2015 and $2.6 million for the thirty-nine weeks ended October 31, 2015.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 80 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=65877416&loc=SL14450702-114947 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65897934&loc=d3e2410-114920 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39675-114964 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66047640&loc=d3e39622-114963 + Details
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