Quarterly report pursuant to Section 13 or 15(d)

Retirement Benefit Plans

v3.20.2
Retirement Benefit Plans
3 Months Ended
May 02, 2020
Retirement Benefit Plans [Abstract]  
Retirement Benefit Plans Retirement Benefit Plans
The components of net periodic pension expense/(income) for our non-contributory qualified defined benefit pension plan and supplemental pension plans were as follows:
  Three Months Ended
($ in millions) May 2,
2020
May 4,
2019
Service cost $   $  
Other components of net periodic pension cost/(income):
Interest cost 26    33   
Expected return on plan assets (50)   (48)  
Amortization of prior service cost/(credit)    
(23)   (13)  
Net periodic pension expense/(income) $ (15)   $ (6)  

Service cost is included in SG&A in the unaudited Interim Consolidated Statements of Operations.


Primary Pension Plan Lump-Sum Payment Offer and VERP
In April 2020, the Company initiated a Voluntary Early Retirement Program (VERP) for approximately 4,500 eligible associates. Eligibility for the VERP included home office, stores and supply chain personnel who met certain criteria related to
age and years of service as of October 23, 2019. Approximately 2,500 eligible associates elected to accept the VERP during the consideration period, which ended on May 29, 2020. Charges related to the VERP and the impact of the VERP on the Primary Pension Plan liabilities and Net periodic pension expense/(income) will be evaluated during the second quarter of 2020.