Annual report pursuant to Section 13 and 15(d)

Retirement Benefit Plans (Tables)

v3.6.0.2
Retirement Benefit Plans (Tables)
12 Months Ended
Jan. 28, 2017
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
 
2016
 
2015
 
2014
Service cost
 
$
55

 
$
69

 
$
61

Interest cost
 
153

 
196

 
211

Expected return on plan assets
 
(215
)
 
(357
)
 
(348
)
Actuarial loss/(gain)
 

 
52

 

Amortization of prior service cost/(credit)
 
8

 
8

 
7

Settlement expense
 

 
180

 

Other
 

 
6

 

Loss/(gain) on transfer of benefits
 

 

 
51

Net periodic benefit expense/(income)
 
$
1

 
$
154

 
$
(18
)
 
 
 
 
 
 
 
Supplemental Pension Plans
 
 
 
 
 
 
Service cost
 
$

 
$

 
$

Interest cost
 
7

 
7

 
9

Actuarial loss/(gain)
 
11

 
1

 
12

Amortization of prior service cost/(credit)
 

 

 

Loss/(gain) on transfer of benefits
 

 

 
(51
)
Net periodic benefit expense/(income)
 
$
18

 
$
8

 
$
(30
)
 
 
 
 
 
 
 
Primary and Supplemental Pension Plans Total
 
 
 
 
 
 
Service cost
 
$
55

 
$
69

 
$
61

Interest cost
 
160

 
203

 
220

Expected return on plan assets
 
(215
)
 
(357
)
 
(348
)
Amortization of actuarial loss/(gain)
 
11

 
53

 
12

Amortization of prior service cost/(credit)
 
8

 
8

 
7

Settlement expense
 

 
180

 

Other
 

 
6

 

Loss/(gain) on transfer of benefits
 

 

 

Net periodic benefit expense/(income)
 
$
19

 
$
162

 
$
(48
)
Schedule of Changes in Projected Benefit Obligations
 
Primary Pension Plan
 
Supplemental Plans
 
($ in millions)
2016
 
2015
 
2016
 
2015
 
Change in PBO
 
 
 
 
 

 
 
 
Beginning balance
$
3,327


$
5,254


$
176


$
191

  
Service cost
55

  
69

  

  

  
Interest cost
153

  
196

  
7

  
7

  
Amendments

  

  

  

  
Settlements

 
(1,555
)
 

 

 
Transfer of benefits

 

 

 

 
Actuarial loss/(gain)
151

  
(247
)
  
10

  
(3
)
  
Benefits (paid)
(213
)
 
(390
)
 
(41
)
 
(19
)
 
Balance at measurement date
$
3,473

  
$
3,327

  
$
152

  
$
176

  
 
 
 
 
 
 
 
 
 
Change in fair value of plan assets
 
 
 
 
 
 
 
 
Beginning balance
$
3,287

  
$
5,474

  
$

  
$

  
Company contributions

  

  
41

  
19

  
Actual return on assets(1)
381

  
(242
)
  

  

  
Settlements

 
(1,555
)
 

 

 
Benefits (paid)
(213
)
 
(390
)
 
(41
)
 
(19
)
 
Balance at measurement date
$
3,455

  
$
3,287

  
$

  
$

  
Funded status of the plan
$
(18
)
(2) 
$
(40
)
(2) 
$
(152
)
(3) 
$
(176
)
(3) 
 
(1)
Includes plan administrative expenses.
(2)
$18 million in 2016 and $40 million in 2015 are included in Other liabilities in the Consolidated Balance Sheets.
(3)
$26 million in 2016 and $46 million in 2015 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)
2016
 
2015
 
2016
 
2015
Net actuarial loss/(gain)
$
318

 
$
333

 
$
12

 
$
13

Prior service cost/(credit)
49

  
57

 
(4
)
  
(4
)
Total
$
367

(1) 
$
390

 
$
8

 
$
9

 
(1)
In 2017, 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 28, 2017
($ in millions)
 
Level 1(1)
 
Level 2(1)
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
 
Cash
 
$
2

 
$

 
$

 
$
2

Common collective trusts
 

 
88

 

 
88

Cash and cash equivalents total
 
2

 
88

 

 
90

Common collective trusts – international
 

 
148

 

 
148

Equity securities – domestic
 
421

 

 

 
421

Equity securities – international
 
113

 

 

 
113

Equity securities total
 
534

 
148

 

 
682

Common collective trusts
 

 
864

 

 
864

Corporate bonds
 

 
919

 
7

 
926

Swaps
 

 
934

 

 
934

Government securities
 

 
185

 

 
185

Mortgage backed securities
 

 
4

 

 
4

Other fixed income
 

 
149

 

 
149

Fixed income total
 

 
3,055

 
7

 
3,062

Public REITs
 
37

 

 

 
37

Private real estate
 

 
15

 

 
15

Real estate total
 
37

 
15

 

 
52

Total investment assets at fair value
 
$
573

 
$
3,306

 
$
7

 
$
3,886

Liabilities
 
 
 
 
 
 
 
 
Swaps
 
$

 
$
(928
)
 
$

 
$
(928
)
Other fixed income
 

 
(6
)
 

 
(6
)
Fixed income total
 

 
(934
)
 

 
(934
)
Total liabilities at fair value
 
$

 
$
(934
)
 
$

 
$
(934
)
Accounts payable, net
 
 
 
 
 
 
 
(76
)
Investments at Net Asset Value (NAV)(2)
 
 
 
 
 
 
 
 
Private equity
 
 
 
 
 
 
 
$
220

Private real estate
 
 
 
 
 
 
 
135

Hedge funds
 
 
 
 
 
 
 
224

Total investments at NAV
 
 
 
 
 
 
 
$
579

Total net assets
 
 
 
 
 
 
 
$
3,455

 
(1)
There were no significant transfers in or out of level 1 or 2 investments.
(2)
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) 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 amounts presented in the Consolidated Balance Sheet.
 
 
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 – international
 

 
166

 

 
166

Equity securities – domestic
 
192

 

 

 
192

Equity securities – international
 
89

 

 

 
89

Equity securities total
 
281

 
166

 

 
447

Common collective trusts
 

 
676

 

 
676

Corporate bonds
 

 
771

 
5

 
776

Swaps
 

 
787

 

 
787

Government securities
 

 
230

 

 
230

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

 

 
14

Real estate total
 
34

 
14

 

 
48

Total investment assets at fair value
 
$
401

 
$
3,230

 
$
8

 
$
3,639

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
)
Investments at Net Asset Value (NAV)(2)
 
 
 
 
 
 
 
 
Private equity
 
 
 
 
 
 
 
$
248

Private real estate
 
 
 
 
 
 
 
151

Hedge funds
 
 
 
 
 
 
 
214

Total investments at NAV
 
 
 
 
 
 
 
$
613

Total net assets
 
 
 
 
 
 
 
$
3,287


(1)
There were no significant transfers in or out of level 1 or 2 investments.
(2)
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) 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 amounts presented in the Consolidated Balance Sheet.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
 
2016
($ in millions)
Corporate Loans
 
Corporate Bonds
Balance, beginning of year
$
3

 
$
5

Transfers, net

 

Realized gains/(loss)

 
3

Unrealized (losses)/gains

 
(4
)
Purchases and issuances

 
15

Sales, maturities and settlements
(3
)
 
(12
)
Balance, end of year
$

 
$
7

 
 
2015
($ in millions)
Corporate Loans
 
Corporate Bonds
Balance, beginning of year
$
5

 
$
7

Realized gains/(loss)

 
(3
)
Unrealized (losses)/gains

 
2

Purchases and issuances

 
1

Sales, maturities and settlements
(2
)
 
(2
)
Balance, end of year
$
3

 
$
5

Schedule of Expected Benefit Payments
($ in millions)
 
Primary Plan Benefits
 
Supplemental Plan Benefits
2017
 
$
203

 
$
26

2018
 
205

 
18

2019
 
210

 
16

2020
 
215

 
16

2021
 
221

 
13

2022-2026
 
1,160

 
58

Schedule of Target Allocation Ranges for Defined Benefit Plan Assets
 
 
2016 Target
 
Plan Assets
Asset Class
 
Allocation Ranges
 
2016
 
2015
Equity
 
20% - 40%
 
22
%
 
16
%
Fixed income
 
50% - 65%
 
60
%
 
54
%
Real estate, cash and other investments
 
10% - 20%
 
18
%
 
30
%
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
 
2016
 
2015
 
2014
 
Expected return on plan assets
6.75
%
 
6.75
%
 
7.00
%
 
Discount rate
4.73
%
 
3.87
%
 
4.89
%
 
Salary increase
3.9
%
 
3.5
%
 
3.5
%
 
 
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
 
 
2016
 
2015
 
2014
Discount rate
 
4.40
%
 
4.73
%
 
3.87
%
Salary progression rate
 
3.9
%
 
3.9
%
 
3.5
%