XML 38 R18.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Retirement Plans | 12 Months Ended
--- | ---
Jan. 30, 2016
Pension and Other Postretirement Benefit Expense [Abstract] |
Retirement Plans | Retirement Plans The Company has defined contribution plans which cover substantially all employees who work 1,000 hours or more in a year. In addition, the Company has a funded defined benefit plan (“Pension Plan”) and an unfunded defined benefit supplementary retirement plan (“SERP”), which provides benefits, for certain employees, in excess of qualified plan limitations. Effective January 1, 2012, the Pension Plan was closed to new participants, with limited exceptions, and effective January 2, 2012, the SERP was closed to new participants. In February 2013, the Company announced changes to the Pension Plan and SERP whereby eligible employees no longer earn future pension service credits after December 31, 2013, with limited exceptions. All retirement benefits attributable to service in subsequent periods are provided through defined contribution plans. Retirement expenses included the following components:
| 2015 |  | 2014 |  | 2013
| (millions)
401(k) Qualified Defined Contribution Plan | $ | 88 |  |  | $ | 89 |  |  | $ | 24 |
Non-Qualified Defined Contribution Plan | 2 |  |  | 2 |  |  | — |
Pension Plan | (54 | ) |  | (64 | ) |  | 154 |
Supplementary Retirement Plan | 41 |  |  | 38 |  |  | 57 |
| $ | 77 |  |  | $ | 65 |  |  | $ | 235 |
Defined Contribution Plans The Company has a qualified plan that permits participating associates to defer eligible compensation up to the maximum limits allowable under the Internal Revenue Code. Beginning January 1, 2014, the Company has a non-qualified plan which permits participating associates to defer eligible compensation above the limits of the qualified plan. The Company contributes a matching percentage of employee contributions under both the qualified and non-qualified plans. Effective January 1, 2014, the Company's matching contribution to the qualified plan was enhanced for all participating employees, with limited exceptions. Prior to January 1, 2014, the matching contribution rate under the qualified plan was higher for those employees not eligible for the Pension Plan than for employees eligible for the Pension Plan. The liability related to the qualified plan matching contribution, which is reflected in accounts payable and accrued liabilities on the Consolidated Balance Sheets, was $97 million at January 30, 2016 and January 31, 2015. Expense related to matching contributions for the qualified plan amounted to $88 million for 2015, $89 million for 2014 and $24 million for 2013. At January 30, 2016 and January 31, 2015, the liability under the non-qualified plan, which is reflected in other liabilities on the Consolidated Balance Sheets, was $13 million and $4 million, respectively. The liability related to the non-qualified plan matching contribution, which is reflected in accounts payable and accrued liabilities on the Consolidated Balance Sheets, was $2 million at January 30, 2016 and January 31, 2015. Expense related to matching contributions for the non-qualified plan amounted to $2 million for 2015 and 2014. In connection with the non-qualified plan, the Company had mutual fund investments at January 30, 2016 and January 31, 2015 of $13 million and $4 million, respectively, which are included in prepaid expenses and other current assets on the Consolidated Balance Sheets. The Company has an additional deferred compensation plan wherein eligible executives elected to defer a portion of their compensation each year as either stock credits or cash credits. Effective January 1, 2015, no additional compensation is eligible for deferral. The Company has transfered shares to a trust to cover the number estimated for distribution on account of stock credits currently outstanding. At January 30, 2016 and January 31, 2015, the liability under the plan, which is reflected in other liabilities on the Consolidated Balance Sheets, was $39 million and $42 million, respectively. Expense for 2015, 2014 and 2013 was immaterial. Pension Plan The following provides a reconciliation of benefit obligations, plan assets, and funded status of the Pension Plan as of January 30, 2016 and January 31, 2015:
| 2015 |  | 2014
| (millions)
Change in projected benefit obligation |  |  |
Projected benefit obligation, beginning of year | $ | 3,966 |  |  | $ | 3,473 |
Service cost | 6 |  |  | 6 |
Interest cost | 137 |  |  | 151 |
Actuarial (gain) loss | (282 | ) |  | 563 |
Benefits paid | (242 | ) |  | (227 | )
Projected benefit obligation, end of year | 3,585 |  |  | 3,966 |
Changes in plan assets |  |  |
Fair value of plan assets, beginning of year | 3,636 |  |  | 3,546 |
Actual return on plan assets | (138 | ) |  | 317 |
Company contributions | — |  |  | — |
Benefits paid | (242 | ) |  | (227 | )
Fair value of plan assets, end of year | 3,256 |  |  | 3,636 |
Funded status at end of year | $ | (329 | ) |  | $ | (330 | )
Amounts recognized in the Consolidated Balance Sheets at January 30, 2016 and January 31, 2015 |  |  |
Other liabilities | $ | (329 | ) |  | $ | (330 | )
Amounts recognized in accumulated other comprehensive loss at January 30, 2016 and January 31, 2015 |  |  |
Net actuarial loss | $ | 1,451 |  |  | $ | 1,397 |
The accumulated benefit obligation for the Pension Plan was $3,574 million as of January 30, 2016 and $3,951 million as of January 31, 2015. Net pension costs and other amounts recognized in other comprehensive loss for the Pension Plan included the following actuarially determined components:
| 2015 |  | 2014 |  | 2013
| (millions)
Net Periodic Pension Cost |  |  |  |  |
Service cost | $ | 6 |  |  | $ | 6 |  |  | $ | 112 |
Interest cost | 137 |  |  | 151 |  |  | 143 |
Expected return on assets | (235 | ) |  | (246 | ) |  | (242 | )
Amortization of net actuarial loss | 38 |  |  | 25 |  |  | 141 |
Amortization of prior service credit | — |  |  | — |  |  | — |
| (54 | ) |  | (64 | ) |  | 154 |
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Loss |  |  |  |  |
Net actuarial (gain) loss | 92 |  |  | 491 |  |  | (254 | )
Amortization of net actuarial loss | (38 | ) |  | (25 | ) |  | (141 | )
Amortization of prior service credit | — |  |  | — |  |  | — |
| 54 |  |  | 466 |  |  | (395 | )
Total recognized in net periodic pension cost and other comprehensive loss | $ | — |  |  | $ | 402 |  |  | $ | (241 | )
The estimated net actuarial loss for the Pension Plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2016 is $31 million. The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan at January 30, 2016 and January 31, 2015:
| 2015 |  | 2014
Discount rate | 4.17 | % |  | 3.55 | %
Rate of compensation increases | 4.10 | % |  | 4.10 | %
The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan:
| 2015 |  | 2014 |  | 2013
Discount rate | 3.55 | % |  | 4.50 | % |  | 4.15 | %
Expected long-term return on plan assets | 7.00 | % |  | 7.50 | % |  | 7.50 | %
Rate of compensation increases | 4.10 | % |  | 4.10 | % |  | 4.50 | %
The Pension Plan’s assumptions are evaluated annually and updated as necessary. The discount rate used to determine the present value of the projected benefit obligation for the Pension Plan is based on a yield curve constructed from a portfolio of high quality corporate debt securities with various maturities. Each year’s expected future benefit payments are discounted to their present value at the appropriate yield curve rate, thereby generating the overall discount rate for the projected benefit obligation. The Company develops its expected long-term rate of return on plan asset assumption by evaluating input from several 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. Expected returns for each major asset class are considered along with their volatility and the expected correlations among them. These expectations are based upon historical relationships as well as forecasts of how future returns may vary from historical returns. Returns by asset class and correlations among asset classes are combined using the target asset allocation to derive an expected return for the portfolio as a whole. Long-term historical returns of the portfolio are also considered. Portfolio returns are calculated net of all expenses, therefore, the Company also analyzes expected costs and expenses, including investment management fees, administrative expenses, Pension Benefit Guaranty Corporation premiums and other costs and expenses. As of January 31, 2015, the Company lowered the assumed annual long-term rate of return for the Pension Plan's assets from 7.50% to 7.00% based on expected future returns on the portfolio of assets. The Company develops its rate of compensation increase assumption based on recent experience and reflects an estimate of future compensation levels taking into account general increase levels, seniority, promotions and other factors. The salary increase assumption is used to project employees’ pay in future years and its impact on the projected benefit obligation for the Pension Plan. The assets of the Pension Plan are managed by investment specialists with the primary objectives of payment of benefit obligations to Plan participants and an ultimate realization of investment returns over longer periods in excess of inflation. The Company employs a total return investment approach whereby a mix of domestic and foreign equity securities, fixed income securities and other investments is used to maximize the long-term return on the assets of the Pension Plan for a prudent level of risk. Risks are mitigated through asset diversification and the use of multiple investment managers. The target allocation for plan assets is currently 50% equity securities, 40% debt securities, 5% real estate and 5% private equities. The Company generally employs investment managers to specialize in a specific asset class. These managers are chosen and monitored with the assistance of professional advisors, using criteria that include organizational structure, investment philosophy, investment process, performance compared to market benchmarks and peer groups. The Company periodically conducts an analysis of the behavior of the Pension Plan’s assets and liabilities under various economic and interest rate scenarios to ensure that the long-term target asset allocation is appropriate given the liabilities. The fair values of the Pension Plan assets as of January 30, 2016, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:
| Fair Value Measurements
| Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
| (millions)
Cash and cash equivalents | $ | 15 |  |  | $ | 15 |  |  | $ | — |  |  | $ | — |
Money market securities | 36 |  |  | — |  |  | 36 |  |  | — |
Money market pooled funds (a) | 46 |  |  | — |  |  | — |  |  | — |
Equity securities: |  |  |  |  |  |  |
U.S. stocks | 280 |  |  | 280 |  |  | — |  |  | — |
U.S. pooled funds (a) | 391 |  |  | — |  |  | — |  |  | — |
International pooled funds (a) | 575 |  |  | — |  |  | — |  |  | — |
Fixed income securities: |  |  |  |  |  |  |
U. S. Treasury bonds | 233 |  |  | — |  |  | 233 |  |  | — |
Other Government bonds | 41 |  |  | — |  |  | 41 |  |  | — |
Agency backed bonds | 31 |  |  | — |  |  | 31 |  |  | — |
Corporate bonds | 433 |  |  | — |  |  | 433 |  |  | — |
Mortgage-backed securities | 112 |  |  | — |  |  | 112 |  |  | — |
Asset-backed securities | 28 |  |  | — |  |  | 28 |  |  | — |
Pooled funds (a) | 427 |  |  | — |  |  | — |  |  | — |
Other types of investments: |  |  |  |  |  |  |
Real estate (a) | 238 |  |  | — |  |  | — |  |  | — |
Hedge funds (a) | 179 |  |  | — |  |  | — |  |  | — |
Private equity (a) | 188 |  |  | — |  |  | — |  |  | — |
Derivatives in a positive position | 15 |  |  | — |  |  | 15 |  |  | — |
Derivatives in a negative position | (22 | ) |  | — |  |  | (22 | ) |  | — |
Total | $ | 3,246 |  |  | $ | 295 |  |  | $ | 907 |  |  | $ | — |
(a) Certain investments that are measured at fair value using the net asset value per share as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets. The fair values of the Pension Plan assets as of January 31, 2015, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:
| Fair Value Measurements
| Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
| (millions)
Money market securities | $ | 108 |  |  | $ | — |  |  | $ | 108 |  |  | $ | — |
Money market pooled funds (a) | 140 |  |  | — |  |  | — |  |  | — |
Equity securities: |  |  |  |  |  |  |
U.S. stocks | 344 |  |  | 344 |  |  | — |  |  | — |
U.S. pooled funds (a) | 477 |  |  | — |  |  | — |  |  | — |
International pooled funds (a) | 659 |  |  | — |  |  | — |  |  | — |
Fixed income securities: |  |  |  |  |  |  |
U. S. Treasury bonds | 272 |  |  | — |  |  | 272 |  |  | — |
Other Government bonds | 55 |  |  | — |  |  | 55 |  |  | — |
Agency backed bonds | 28 |  |  | — |  |  | 28 |  |  | — |
Corporate bonds | 434 |  |  | — |  |  | 434 |  |  | — |
Mortgage-backed securities | 102 |  |  | — |  |  | 102 |  |  | — |
Asset-backed securities | 19 |  |  | — |  |  | 19 |  |  | — |
Pooled funds (a) | 458 |  |  | — |  |  | — |  |  | — |
Other types of investments: |  |  |  |  |  |  |
Real estate (a) | 244 |  |  | — |  |  | — |  |  | — |
Hedge funds (a) | 175 |  |  | — |  |  | — |  |  | — |
Private equity (a) | 181 |  |  | — |  |  | — |  |  | — |
Derivatives in a positive position | 27 |  |  | — |  |  | 27 |  |  | — |
Derivatives in a negative position | (38 | ) |  | — |  |  | (38 | ) |  | — |
Total | $ | 3,685 |  |  | $ | 344 |  |  | $ | 1,007 |  |  | $ | — |
(a) Certain investments that are measured at fair value using the net asset value per share as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets. Corporate bonds consist primarily of investment grade bonds of U.S. issuers from diverse industries. The fair value of certain pooled funds including money market funds, equity securities, fixed income securities, real estate, hedge funds and private equity investments represents the reported net asset value of shares or underlying assets of the investment as a practical expedient to estimate fair value. Money market pooled funds invest in high quality, short-term money market instruments which are issued and payable in U.S. dollars. International equity pooled funds seek to provide long-term capital growth and income by investing in equity securities of non-U.S. companies located both in developed and emerging markets. There are generally no redemption restrictions or unfunded commitments related to money market pooled funds, equity securities or fixed income securities. Real estate investments include several funds which seek risk-adjusted return by providing a stable, income-driven rate of return over the long term with high potential for growth of net investment income and appreciation of value. The real estate investments are diversified across property types and geographical areas primarily in the United States of America. Private equity investments have an objective of realizing aggregate long-term returns in excess of those available from investments in the public equity markets. Private equity investments generally consist of limited partnerships in the United States of America, Europe and Asia. Private equity and real estate investments are valued using fair values per the most recent financial reports provided by the investment sponsor, adjusted as appropriate for any lag between the date of the financial reports and the Company’s reporting date. Hedge fund investments seek to provide strong downside protection qualities and to produce long-term risk-adjusted returns with low volatility through active asset management among a select group of U.S. and non-U.S. investment partnerships and companies, managed funds, separately managed accounts, securities and commodities held in segregated accounts and other investment vehicles. Due to the nature of the underlying assets of the real estate, hedge funds and private equity investments, changes in market conditions and the economic environment may significantly impact the net asset value of these investments and, consequently, the fair value of the Pension Plan’s investments. These investments are redeemable at net asset value to the extent provided in the documentation governing the investments. However, these redemption rights may be restricted in accordance with the governing documents. Redemption of these investments is subject to restrictions including lock-up periods where no redemptions are allowed, restrictions on redemption frequency and advance notice periods for redemptions. As of January 30, 2016 and January 31, 2015, certain of these investments are generally subject to lock-up periods, ranging from two to fourteen years, certain of these investments are subject to restrictions on redemption frequency, ranging from daily to twice per year, and certain of these investments are subject to advance notice requirements, ranging from sixty-day notification to ninety-day notification. As of January 30, 2016 and January 31, 2015, the Pension Plan had unfunded commitments related to certain of these investments totaling $96 million and $115 million, respectively. The Company does not anticipate making funding contributions to the Pension Plan in 2016. The following benefit payments are estimated to be paid from the Pension Plan:
| (millions)
Fiscal year |
2016 | $ | 377 |
2017 | 319 |
2018 | 302 |
2019 | 264 |
2020 | 256 |
2021-2025 | 1,176 |
Supplementary Retirement Plan The following provides a reconciliation of benefit obligations, plan assets and funded status of the supplementary retirement plan as of January 30, 2016 and January 31, 2015:
| 2015 |  | 2014
| (millions)
Change in projected benefit obligation |  |  |
Projected benefit obligation, beginning of year | $ | 920 |  |  | $ | 770 |
Service cost | — |  |  | — |
Interest cost | 31 |  |  | 33 |
Actuarial (gain) loss | (70 | ) |  | 170 |
Benefits paid | (58 | ) |  | (53 | )
Projected benefit obligation, end of year | 823 |  |  | 920 |
Change in plan assets |  |  |
Fair value of plan assets, beginning of year | — |  |  | — |
Company contributions | 58 |  |  | 53 |
Benefits paid | (58 | ) |  | (53 | )
Fair value of plan assets, end of year | — |  |  | — |
Funded status at end of year | $ | (823 | ) |  | $ | (920 | )
Amounts recognized in the Consolidated Balance Sheets at January 30, 2016 and January 31, 2015 |  |  |
Accounts payable and accrued liabilities | $ | (138 | ) |  | $ | (69 | )
Other liabilities | (685 | ) |  | (851 | )
| $ | (823 | ) |  | $ | (920 | )
Amounts recognized in accumulated other comprehensive loss at January 30, 2016 and January 31, 2015 |  |  |
Net actuarial loss | $ | 261 |  |  | $ | 341 |
Prior service cost | 8 |  |  | 8 |
| $ | 269 |  |  | $ | 349 |
The accumulated benefit obligation for the supplementary retirement plan was $823 million as of January 30, 2016 and $920 million as of January 31, 2015. Net pension costs and other amounts recognized in other comprehensive loss for the supplementary retirement plan included the following actuarially determined components:
| 2015 |  | 2014 |  | 2013
| (millions)
Net Periodic Pension Cost |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | 6 |
Interest cost | 31 |  |  | 33 |  |  | 32 |
Amortization of net actuarial loss | 10 |  |  | 5 |  |  | 19 |
Amortization of prior service credit | — |  |  | — |  |  | — |
| 41 |  |  | 38 |  |  | 57 |
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Loss |  |  |  |  |
Net actuarial (gain) loss | (70 | ) |  | 170 |  |  | (17 | )
Prior service cost | — |  |  | — |  |  | 8 |
Amortization of net actuarial loss | (10 | ) |  | (5 | ) |  | (19 | )
Amortization of prior service credit | — |  |  | — |  |  | — |
| (80 | ) |  | 165 |  |  | (28 | )
Total recognized in net periodic pension cost and other comprehensive loss | $ | (39 | ) |  | $ | 203 |  |  | $ | 29 |
The estimated net actuarial loss for the supplementary retirement plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2016 is $8 million. The following weighted average assumption was used to determine the projected benefit obligations for the supplementary retirement plan at January 30, 2016 and January 31, 2015:
| 2015 |  | 2014
Discount rate | 4.23 | % |  | 3.55 | %
The following weighted average assumptions were used to determine net pension costs for the supplementary retirement plan:
| 2015 |  | 2014 |  | 2013
Discount rate | 3.55 | % |  | 4.50 | % |  | 4.15 | %
Rate of compensation increases | N/A |  |  | N/A |  |  | 4.90 | %
The supplementary retirement plan’s assumptions are evaluated annually and updated as necessary. The discount rate used to determine the present value of the projected benefit obligation for the supplementary retirement plan is based on a yield curve constructed from a portfolio of high quality corporate debt securities with various maturities. Each year’s expected future benefit payments are discounted to their present value at the appropriate yield curve rate, thereby generating the overall discount rate for the projected benefit obligation. The Company developed its rate of compensation increase assumption based on recent experience and reflected an estimate of future compensation levels taking into account general increase levels, seniority, promotions and other factors. The salary increase assumption was used to project employees’ pay in future years and its impact on the projected benefit obligation for the supplementary retirement plan. The following benefit payments are estimated to be funded by the Company and paid from the supplementary retirement plan:
| (millions)
Fiscal year |
2016 | $ | 138 |
2017 | 66 |
2018 | 53 |
2019 | 60 |
2020 | 48 |
2021-2025 | 242 |

X
- References No definition available. + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitExpenseAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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=49170332&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=58740216&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=6414199&loc=d3e39622-114963 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration