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
	July 29,			July 30,			July 29,		July 30,
In thousands	2017			2016			2017		2016
Service cost	$	11,804		$	11,209		$	587	$	542
Interest cost		13,759			14,362			843		875
Expected return on plan assets		(17,382	)		(17,935	)		—		—
Recognized actuarial losses		5,574			7,210			833		864

Total expense	$	13,755		$	14,846		$	2,263	$	2,281


	Funded Plan						Unfunded Plan
	Twenty-Six Weeks Ended						Twenty-Six Weeks Ended
	July 29,			July 30,			July 29,		July 30,
In thousands	2017			2016			2017		2016
Service cost	$	23,609		$	22,418		$	1,175	$	1,083
Interest cost		27,518			28,724			1,686		1,750
Expected return on plan assets		(34,764	)		(35,870	)		—		—
Recognized actuarial losses		11,154			14,419			1,664		1,729

Total expense	$	27,517		$	29,691		$	4,525	$	4,562

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 2018 for the funded plan. TJX anticipates making payments of $4.1 million to provide current benefits coming due under the unfunded plan in fiscal 2018.

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.

TJX also had maintained an unfunded postretirement medical plan which was closed to new benefits in fiscal 2006. 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.