Annual report pursuant to Section 13 and 15(d)

Retirement Benefit Plans (Tables)

v3.3.1.900
Retirement Benefit Plans (Tables)
12 Months Ended
Jan. 30, 2016
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Types of Retirement and Other Benefits
Retirement and other benefits include:
Defined Benefit Pension Plans
Primary Pension Plan – funded
Supplemental retirement plans – unfunded
 
Other Benefit Plans
Postretirement benefits – medical and dental
Defined contribution plans:
401(k) savings, profit-sharing and stock ownership plan
Deferred compensation plan
Schedule of Costs of Retirement Plans
($ in millions)
 
 
 
 
 
 
Primary Pension Plan
 
2015
 
2014
 
2013
Service cost
 
$
69

 
$
61

 
$
78

Interest cost
 
196

 
211

 
204

Expected return on plan assets
 
(357
)
 
(348
)
 
(340
)
Actuarial loss/(gain)
 
52

 

 

Amortization of prior service cost/(credit)
 
8

 
7

 
6

Settlement expense
 
180

 

 

Other
 
6

 

 

Loss/(gain) on transfer of benefits
 

 
51

 

Net periodic benefit expense/(income)
 
$
154

 
$
(18
)
 
$
(52
)
 
 
 
 
 
 
 
Supplemental Pension Plans
 
 
 
 
 
 
Service cost
 
$

 
$

 
$

Interest cost
 
7

 
9

 
12

Actuarial loss/(gain)
 
1

 
12

 
(2
)
Amortization of prior service cost/(credit)
 

 

 
1

Loss/(gain) on transfer of benefits
 

 
(51
)
 

Net periodic benefit expense/(income)
 
$
8

 
$
(30
)
 
$
11

 
 
 
 
 
 
 
Primary and Supplemental Pension Plans Total
 
 
 
 
 
 
Service cost
 
$
69

 
$
61

 
$
78

Interest cost
 
203

 
220

 
216

Expected return on plan assets
 
(357
)
 
(348
)
 
(340
)
Amortization of actuarial loss/(gain)
 
53

 
12

 
(2
)
Amortization of prior service cost/(credit)
 
8

 
7

 
7

Settlement expense
 
180

 

 

Other
 
6

 

 

Loss/(gain) on transfer of benefits
 

 

 

Net periodic benefit expense/(income)
 
$
162

 
$
(48
)
 
$
(41
)
Schedule of Changes in Projected Benefit Obligations
 
Primary Pension Plan
 
Supplemental Plans
 
($ in millions)
2015
 
2014
 
2015
 
2014
 
Change in PBO
 
 
 
 
 

 
 
 
Beginning balance
$
5,254


$
4,477


$
191


$
219

  
Service cost
69

  
61

  

  

  
Interest cost
196

  
211

  
7

  
9

  
Amendments

  
20

  

  

  
Settlements
(1,555
)
 

 

 

 
Transfer of benefits

 
56

 

 
(56
)
 
Actuarial loss/(gain)
(247
)
  
818

  
(3
)
  
39

  
Benefits (paid)
(390
)
 
(389
)
 
(19
)
 
(20
)
 
Balance at measurement date
$
3,327

  
$
5,254

  
$
176

  
$
191

  
 
 
 
 
 
 
 
 
 
Change in fair value of plan assets
 
 
 
 
 
 
 
 
Beginning balance
$
5,474

  
$
5,140

  
$

  
$

  
Company contributions

  

  
19

  
20

  
Actual return on assets(1)
(242
)
  
723

  

  

  
Settlements
(1,555
)
 

 

 

 
Benefits (paid)
(390
)
 
(389
)
 
(19
)
 
(20
)
 
Balance at measurement date
$
3,287

  
$
5,474

  
$

  
$

  
Funded status of the plan
$
(40
)
(2) 
$
220

(2) 
$
(176
)
(3) 
$
(191
)
(3) 
 
(1)
Includes plan administrative expenses.
(2)
$40 million in 2015 is included in Other liabilities and $220 million in 2014 is presented as Prepaid pension in the Consolidated Balance Sheets.
(3)
$46 million in 2015 and $16 million in 2014 were included in Other accounts payable and accrued expenses on the Consolidated Balance Sheets, and the remaining amounts were included in Other liabilities.
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)
 
Primary Pension Plan
 
Supplemental Plans
($ in millions)
2015
 
2014
 
2015
 
2014
Net actuarial loss/(gain)
$
333

 
$
213

 
$
13

 
$
17

Prior service cost/(credit)
57

  
65

 
(4
)
  
(4
)
Total
$
390

(1) 
$
278

 
$
9

 
$
13

 
(1)
In 2016, approximately $8 million for the Primary Pension Plan is expected to be amortized from Accumulated other comprehensive income/(loss) into net periodic benefit expense/(income) included in Pension in the Consolidated Statement of Operations.

Schedule of Allocation of Plan Assets
 
 
Investments at Fair Value at January 30, 2016
($ in millions)
 
Level 1(1)
 
Level 2(1)
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
 
Cash
 
$
86

 
$

 
$

 
$
86

Common collective trusts
 

 
427

 

 
427

Cash and cash equivalents total
 
86

 
427

 

 
513

Common collective trusts – domestic
 

 

 

 

Common collective trusts – international
 

 
166

 

 
166

Equity securities – domestic
 
192

 

 

 
192

Equity securities – international
 
89

 

 

 
89

Private equity
 

 

 
248

 
248

Equity securities total
 
281

 
166

 
248

 
695

Common collective trusts
 

 
676

 

 
676

Corporate bonds
 

 
771

 
5

 
776

Swaps
 

 
787

 

 
787

Government securities
 

 
230

 

 
230

Corporate loans
 

 

 

 

Municipal bonds
 

 

 

 

Mortgage backed securities
 

 
4

 

 
4

Other fixed income
 

 
155

 
3

 
158

Fixed income total
 

 
2,623

 
8

 
2,631

Public REITs
 
34

 

 

 
34

Private real estate
 

 
14

 
151

 
165

Real estate total
 
34

 
14

 
151

 
199

Hedge funds
 

 

 
214

 
214

Other investments total
 

 

 
214

 
214

Total investment assets at fair value
 
$
401

 
$
3,230

 
$
621

 
$
4,252

Liabilities
 
 
 
 
 
 
 
 
Swaps
 
$

 
$
(801
)
 
$

 
$
(801
)
Other fixed income
 

 
(6
)
 

 
(6
)
Fixed income total
 

 
(807
)
 

 
(807
)
Total liabilities at fair value
 
$

 
$
(807
)
 
$

 
$
(807
)
Accounts payable, net
 
 
 
 
 
 
 
(158
)
Total net assets
 
 
 
 
 
 
 
$
3,287

 
(1)
There were no significant transfers in or out of level 1 or 2 investments.
 
 
Investments at Fair Value at January 31, 2015
($ in millions)
 
Level 1(1)
 
Level 2(1)
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
 
Cash
 
$
10

 
$
2

 
$

 
$
12

Common collective trusts
 

 
38

 

 
38

Cash and cash equivalents total
 
10

 
40

 

 
50

Common collective trusts – domestic
 

 
222

 

 
222

Common collective trusts – international
 

 
197

 

 
197

Equity securities – domestic
 
733

 

 

 
733

Equity securities – international
 
104

 

 

 
104

Private equity
 

 

 
281

 
281

Equity securities total
 
837

 
419

 
281

 
1,537

Common collective trusts
 

 
1,695

 

 
1,695

Corporate bonds
 

 
1,319

 
7

 
1,326

Swaps
 

 
415

 

 
415

Government securities
 

 
167

 

 
167

Corporate loans
 

 
69

 
5

 
74

Municipal bonds
 

 
66

 

 
66

Mortgage backed securities
 

 
5

 

 
5

Other fixed income
 

 
21

 

 
21

Fixed income total
 

 
3,757

 
12

 
3,769

Public REITs
 
100

 

 

 
100

Private real estate
 

 
20

 
153

 
173

Real estate total
 
100

 
20

 
153

 
273

Hedge funds
 

 

 
314

 
314

Other investments total
 

 

 
314

 
314

Total investment assets at fair value
 
$
947

 
$
4,236

 
$
760

 
$
5,943

Liabilities
 
 
 
 
 
 
 
 
Swaps
 
$

 
$
(428
)
 
$

 
$
(428
)
Other fixed income
 
(2
)
 
(3
)
 

 
(5
)
Fixed income total
 
(2
)
 
(431
)
 

 
(433
)
Total liabilities at fair value
 
$
(2
)
 
$
(431
)
 
$

 
$
(433
)
Accounts payable, net
 
 
 
 
 
 
 
(36
)
Total net assets
 
 
 
 
 
 
 
$
5,474


(1)
There were no significant transfers in or out of level 1 or 2 investments.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
 
2015
($ in millions)
Private Equity
 
Real Estate
 
Corporate Loans
 
Corporate Bonds
 
Hedge Funds
Balance, beginning of year
$
281

 
$
153

 
$
5

 
$
7

 
$
314

Transfers, net

 

 

 

 

Realized gains/(loss)
41

 
(23
)
 

 
(3
)
 
3

Unrealized (losses)/gains
(17
)
 
38

 

 
2

 
(1
)
Purchases and issuances
18

 
2

 

 
1

 
119

Sales, maturities and settlements
(75
)
 
(19
)
 
(2
)
 
(2
)
 
(221
)
Balance, end of year
$
248

 
$
151

 
$
3

 
$
5

 
$
214

 
 
2014
($ in millions)
Private Equity
 
Real Estate
 
Corporate Loans
 
Corporate Bonds
 
Hedge Funds
Balance, beginning of year
$
298

 
$
204

 
$
6

 
$
11

 
$
153

Realized gains/(loss)
57

 
3

 

 

 
13

Unrealized (losses)/gains
(8
)
 
17

 

 
(1
)
 
(4
)
Purchases and issuances
31

 
3

 
4

 
5

 
467

Sales, maturities and settlements
(97
)
 
(74
)
 
(5
)
 
(8
)
 
(315
)
Balance, end of year
$
281

 
$
153

 
$
5

 
$
7

 
$
314

Schedule of Expected Benefit Payments
($ in millions)
 
Primary Plan Benefits
 
Supplemental Plan Benefits
2016
 
$
199

 
$
45

2017
 
202

 
23

2018
 
206

 
16

2019
 
212

 
15

2020
 
216

 
14

2020-2025
 
1,152

 
66

Schedule of Target Allocation Ranges for Defined Benefit Plan Assets
 
 
2015 Target
 
Plan Assets
Asset Class
 
Allocation Ranges
 
2015
 
2014
Equity
 
15% - 35%
 
16
%
 
29
%
Fixed income
 
50% - 60%
 
54
%
 
58
%
Real estate, cash and other investments
 
20% - 40%
 
30
%
 
13
%
Total
 
 
 
100
%
 
100
%
Weighted-Average Actuarial Assumptions Used To Determine Expense [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Assumptions Used
 
2015
 
2014
 
2013
 
Expected return on plan assets
6.75
%
 
7.00
%
 
7.00
%
 
Discount rate
3.87
%
 
4.89
%
 
4.19
%
 
Salary increase
3.5
%
 
3.5
%
 
4.7
%
 
 
Weighted Average Actuarial Assumptions Used To Determine Liability [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Assumptions Used
 
 
2015
 
2014
 
2013
Discount rate
 
4.73
%
 
3.87
%
 
4.89
%
Salary progression rate
 
3.9
%
 
3.5
%
 
3.5
%