XML 36 R20.htm IDEA: XBRL DOCUMENT v3.22.1
Pension Plans and Other Retirement Benefits
 12 Months Ended
Jan. 29, 2022
Retirement Benefits [Abstract]  
Pension Plans and Other Retirement Benefits Pension Plans and Other Retirement Benefits
Pension
TJX has a funded defined benefit retirement plan that covers eligible U.S. employees hired prior to February 1, 2006. No employee contributions are required, or permitted, and benefits are based principally on compensation earned in each year of service. TJX’s funded defined benefit retirement plan assets are invested in domestic and international equity and fixed income securities, both directly and through investment funds. The plan does not invest in TJX securities. TJX also has an unfunded supplemental retirement plan that covers certain key employees and provides additional retirement benefits based on final average compensation for certain of those employees (the “primary benefit”) or, alternatively, based on benefits that would be provided under the funded retirement plan absent Internal Revenue Code limitations (the “alternative benefit”).
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. The Company has elected the practical expedient pursuant to ASU 2015-4– Compensation-retirement benefits (Topic 715) and has selected the measurement date of January 31, the calendar month end closest to the Company’s fiscal year end.
  Funded Plan
Fiscal Year Ended		Unfunded Plan
Fiscal Year Ended
In thousandsJanuary 29,
2022		January 30,
2021		January 29,
2022		January 30,
2021
Change in projected benefit obligation:
Projected benefit obligation at beginning of year$1,619,274 $1,532,416 $113,478 $104,823 
Service cost49,116 50,123 2,426 2,430 
Interest cost52,097 50,210 3,099 3,283 
Actuarial losses29,350 13,758 233 8,229 
Benefits paid(29,548)(24,527)(4,447)(5,287)
Expenses paid(3,034)(2,706)— — 
Projected benefit obligation at end of year$1,717,255 $1,619,274 $114,789 $113,478 
Accumulated benefit obligation at end of year$1,560,239 $1,481,505 $100,108 $97,451 
  Funded Plan
Fiscal Year Ended		Unfunded Plan
Fiscal Year Ended
In thousandsJanuary 29,
2022		January 30,
2021		January 29,
2022		January 30,
2021
Change in plan assets:
Fair value of plan assets at beginning of year$1,686,735 $1,562,274 $— $— 
Actual return on plan assets59,422 151,594 — — 
Employer contribution100 100 4,447 5,287 
Benefits paid(29,548)(24,527)(4,447)(5,287)
Expenses paid(3,034)(2,706)— — 
Fair value of plan assets at end of year$1,713,675 $1,686,735 $— $— 
Reconciliation of funded status:
Projected benefit obligation at end of year$1,717,255 $1,619,274 $114,789 $113,478 
Fair value of plan assets at end of year1,713,675 1,686,735 — — 
Funded status – excess obligation (asset)$3,580 $(67,461)$114,789 $113,478 
Net liability (asset) recognized on Consolidated Balance Sheets$3,580 $(67,461)$114,789 $113,478 
Amounts not yet reflected in net periodic benefit cost and included in Accumulated other comprehensive income (loss):
Prior service cost$426 $803 $— $— 
Accumulated actuarial losses297,336 245,506 31,599 35,880 
Amounts included in Accumulated other comprehensive income (loss)$297,762 $246,309 $31,599 $35,880 
The Consolidated Balance Sheets reflect the funded status of the plans with any unrecognized prior service cost and actuarial gains and losses recorded in Accumulated other comprehensive income (loss). The combined net accrued liability of $118 million at January 29, 2022 is reflected on the Consolidate Balance Sheets as of that date as a current liability of $4 million and a long-term liability of $114 million. The combined net accrued liability of $46 million at January 30, 2021 is reflected on the Consolidated Balance Sheets as of that date as a current liability of $7 million, a long-term liability of $106 million, and a long-term asset of $67 million.
The increase in the actuarial losses included in Accumulated other comprehensive income (loss) for the funded plan for fiscal 2022 was driven by the actual return on assets which was $37 million less than the Company’s estimated return.
TJX determined the assumed discount rate using the BOND: Link model in fiscal 2022 and fiscal 2021. TJX uses the BOND: Link model as this model allows for the selection of specific bonds resulting in better matches in timing of the plans’ 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 29,
2022		January 30,
2021		January 29,
2022		January 30,
2021
Discount rate3.40 %3.20 %3.30 %2.80 %
Rate of compensation increase(a)
4.00 %4.00 %4.00 %4.00 %
(a)As of fiscal 2020, the rate of compensation increase for the Unfunded Plan, reflects the rate for participants eligible for the alternative benefit as the participants eligible for the primary benefit no longer accrue benefits under this plan.
TJX made aggregate cash contributions of $5 million in fiscal 2022, $5 million in fiscal 2021 and $102 million in fiscal 2020 to the funded plan and to fund current benefit and expense payments under the unfunded plan. 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 as is sufficient to avoid restrictions with respect to the funding of nonqualified plans under the Internal Revenue Code. The Company does not anticipate any required funding in fiscal 2023 for the funded plan. The Company anticipates making contributions of $4 million to provide current benefits coming due under the unfunded plan in fiscal 2023.
The following are the components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) related to the Company’s pension plans:  
  Funded Plan
Fiscal Year Ended		Unfunded Plan
Fiscal Year Ended
In thousandsJanuary 29,
2022		January 30,
2021		February 1,
2020		January 29,
2022		January 30,
2021		February 1,
2020
Net periodic pension cost:
Service cost$49,116 $50,123 $44,685 $2,426 $2,430 $2,059 
Interest cost52,097 50,210 52,172 3,099 3,283 3,740 
Expected return on plan assets(96,002)(88,997)(74,141)— — — 
Amortization of prior service cost377 377 377 — — — 
Amortization of net actuarial loss14,101 22,351 19,055 4,513 4,616 3,124 
Total expense$19,689 $34,064 $42,148 $10,038 $10,329 $8,923 
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net loss (gain)$65,930 $(48,838)$71,590 $233 $8,229 $4,682 
Amortization of net (loss)(14,101)(22,351)(19,055)(4,513)(4,616)(3,124)
Amortization of prior service cost(377)(377)(377)— — — 
Total recognized in other comprehensive income (loss)$51,452 $(71,566)$52,158 $(4,280)$3,613 $1,558 
Total recognized in net periodic benefit cost and other comprehensive income (loss)$71,141 $(37,502)$94,306 $5,758 $13,942 $10,481 
Weighted average assumptions for expense purposes:
Discount rate3.20 %3.30 %4.30 %2.80 %3.10 %4.10 %
Expected rate of return on plan assets5.75 %5.75 %6.00 %N/AN/AN/A
Rate of compensation increase(a)
4.00 %4.00 %4.00 %4.00 %4.00 %6.00 %
(a)For fiscal 2020, the rate of compensation increase for participants eligible for the primary benefit under the unfunded plan is 6.00%. The assumed rate of compensation increase for participants eligible for the alternative benefit under the unfunded plan is 4.00%.
TJX develops its long-term rate of return assumption by evaluating input from professional advisors taking into account the asset allocation of the portfolio and long-term asset class return expectations, as well as long-term inflation assumptions.
The unrecognized gains and losses in excess of 10% of the projected benefit obligation are amortized over the average remaining service life of participants.
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 thousandsFunded Plan
Expected Benefit Payments		Unfunded Plan
Expected Benefit Payments
Fiscal Year:
2023$40,162 $3,888 
202446,253 5,042 
202552,352 6,363 
202658,390 52,601 
202764,463 8,424 
2028 through 2032408,023 41,209 
The following tables present the fair value hierarchy (See Note F—Fair Value Measurements) for pension assets measured at fair value on a recurring basis as of January 29, 2022 and January 30, 2021:
  Funded Plan at January 29, 2022
In thousandsLevel 1Level 2Total
Asset category:
Short-term investments$8,537 $— $8,537 
Equity Securities178,336 — 178,336 
Fixed Income Securities:
Corporate and government bond funds— 1,021,612 1,021,612 
Futures Contracts— 2,806 2,806 
Total assets in the fair value hierarchy$186,873 $1,024,418 $1,211,291 
Assets measured at net asset value(a)
— — 502,384 
Fair value of assets$186,873 $1,024,418 $1,713,675 
  Funded Plan at January 30, 2021
In thousandsLevel 1Level 2Total
Asset category:
Short-term investments$8,598 $— $8,598 
Equity Securities174,691 — 174,691 
Fixed Income Securities:
Corporate and government bond funds— 548,667 548,667 
Futures Contracts— 4,896 4,896 
Total assets in the fair value hierarchy$183,289 $553,563 $736,852 
Assets measured at net asset value(a)
— — 949,883 
Fair value of assets$183,289 $553,563 $1,686,735 
(a)In accordance with Subtopic 820-10, certain investments that were measured using net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the fair value of assets presented above.
Pension plan assets are reported at fair value. Investments in equity securities traded on a national securities exchange are valued at the composite close price, as reported in the Wall Street Journal, as of the financial statement date. This information is provided by the independent pricing sources.
Short-term investments are primarily cash related to funding of the plan which had yet to be invested as of balance sheet dates.
Certain corporate and government bonds are valued at the closing price reported in the active market in which the bond is traded. Other bonds are valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the bond is valued under a discounted cash flow approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. All bonds are priced by independent pricing sources.
Assets measured at net asset value include investments in limited partnerships which are stated at the fair value of the plan’s partnership interest based on information supplied by the partnerships as compared to financial statements of the limited partnership or other fair value information as determined by management. Cash equivalents or short-term investments are stated at cost which approximates fair value, and the fair value of common/collective trusts is determined based on net asset value as reported by their fund managers.
Following is the asset allocation under the qualified pension plan as of the valuation date for the fiscal years presented:
  January 29,
2022		January 30,
2021
Return-seeking assets45%48%
Liability-hedging assets55%51%
All other – primarily cash—%1%
Under TJX’s investment policy, qualified pension plan assets are to be invested with the objective of generating investment returns that, in combination with funding contributions, provide adequate assets to meet all current and reasonably anticipated future benefit obligations under the plan. The investment policy includes a dynamic asset allocation strategy, whereby, over time, in connection with improvements in the plan’s funded status, the target allocation of return-seeking assets (generally, equities and other instruments with similar risk profile) may decline and the target allocation of liability-hedging assets (generally, fixed income and other instruments with a similar risk profile) may increase. Under the investment policy guidelines, the target asset allocation of return-seeking assets and liability-hedging assets was 44% and 56%, respectively, as of January 29, 2022. Risks are sought to be mitigated through asset diversification and the use of multiple investment managers. Investment risk is measured and monitored on an ongoing basis through investment portfolio reviews, annual liability measurements and periodic asset/liability studies.
Other Retirement Benefits
TJX also sponsors an employee savings plan under Section 401(k) of the Internal Revenue Code for all eligible U.S. employees and a similar type of plan for eligible employees in Puerto Rico. Employees may contribute up to 50% of eligible pay, subject to limitations. TJX matches employee contributions, up to 5% of eligible pay, including a basic match at rates of 25% or 75% (based upon date of hire and other eligibility criteria) plus a discretionary match, generally up to 25%, based on TJX’s performance. TJX may also make additional discretionary contributions. Eligible employees are automatically enrolled in the U.S. Plan and, effective February 1, 2022, the Puerto Rico savings plan at a 2% deferral rate, unless the employee elects otherwise. The total cost of TJX contributions to these plans was $83 million in fiscal 2022, $61 million in fiscal 2021 and $59 million in fiscal 2020.
TJX also has a nonqualified savings plan (the Executive Savings Plan) for certain U.S. employees. TJX matches employee deferrals at various rates which amounted to $7 million in fiscal 2022, $3 million in fiscal 2021 and $7 million in fiscal 2020. Although the plan is unfunded, in order to help meet its future obligations TJX transfers an amount generally equal to employee deferrals and the related company match to a separate “rabbi” trust. The trust assets, which are invested in a variety of mutual funds, are included in other assets on the balance sheets.
In addition to the plans described above, TJX also contributes to retirement/deferred savings programs for eligible Associates at certain of its foreign subsidiaries. The Company contributed $26 million for these programs in fiscal 2022, $22 million for these programs in fiscal 2021 and $20 million in fiscal 2020.
Multiemployer Pension Plans
TJX contributes to certain multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover union-represented employees. TJX contributed $25 million in fiscal 2022, $19 million in fiscal 2021 and $20 million in fiscal 2020 to the Legacy Plan of the National Retirement Fund (EIN #13-6130178, plan #1), the Adjustable Plan of the National Retirement Fund (EIN #13-6130178, plan #2), the Legacy Plan of the UNITE HERE Retirement Fund (EIN #82-0994119, plan #1) and the Adjustable Plan of the UNITE HERE Retirement Fund (EIN #82-0994119, plan #2). TJX was listed in the Form 5500 for the Legacy Plan of the National Retirement Fund and the Adjustable Plan of the National Retirement Fund as providing more than 5% of the total contributions for the plan year ending December 31, 2020. In addition, based on information available to TJX, the Pension Protection Act Zone status for the Legacy Plan of the National Retirement Fund is critical and for the Legacy Plan of the UNITE HERE Retirement Fund is critical and declining, and rehabilitation plans have been adopted by these plans.
The risks of participating in multiemployer pension plans are different from the risks of single-employer pension plans in certain respects, including the following: (a) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (b) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; (c) if TJX ceases to have an obligation to contribute to a multiemployer plan in which the Company had been a contributing employer, or in certain other circumstances, the Company may be required to pay to the plan an amount based on the Company’s allocable share of the underfunded status of the plan, referred to as a withdrawal liability.