Annual report pursuant to Section 13 and 15(d)

Retirement Benefit Plans (Tables)

v2.4.0.8
Retirement Benefit Plans (Tables)
12 Months Ended
Feb. 01, 2014
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
 
2013
 
2012
 
2011
Service cost
 
$
78

 
$
87

 
$
88

Interest cost
 
204

 
242

 
247

Expected return on plan assets
 
(340
)
 
(382
)
 
(385
)
Amortization of actuarial loss/(gain)
 
152

 
220

 
137

Amortization of prior service cost/(credit)
 
6

 

 

Settlement expense
 

 
148

 

Net periodic benefit expense/(income)
 
$
100

 
$
315

 
$
87

 
 
 
 
 
 
 
Supplemental Pension Plans
 
 
 
 
 
 
Service cost
 
$

 
$
1

 
$
2

Interest cost
 
12

 
13

 
13

Amortization of actuarial loss/(gain)
 
24

 
23

 
18

Amortization of prior service cost/(credit)
 
1

 
1

 
1

Net periodic benefit expense/(income)
 
$
37

 
$
38

 
$
34

 
 
 
 
 
 
 
Primary and Supplemental Pension Plans Total
 
 
 
 
 
 
Service cost
 
$
78

 
$
88

 
$
90

Interest cost
 
216

 
255

 
260

Expected return on plan assets
 
(340
)
 
(382
)
 
(385
)
Amortization of actuarial loss/(gain)
 
176

 
243

 
155

Amortization of prior service cost/(credit)
 
7

 
1

 
1

Settlement charge
 

 
148

 

Net periodic benefit expense/(income)
 
$
137

 
$
353

 
$
121

Schedule of Changes in Projected Benefit Obligations
 
Primary Pension Plan
 
Supplemental Plans
 
($ in millions)
2013
 
2012
 
2013
 
2012
 
Change in PBO
 
 
 
 
 

 
 
 
Beginning balance
$
5,042


$
5,297


$
303


$
309

  
Service cost
78

  
87

  

  
1

  
Interest cost
204

  
242

  
12

  
13

  
Special termination benefits

  

  

  

  
Amendments
17

  
42

  
(8
)
  

  
Curtailments

 
(80
)
 

 
(13
)
 
Settlements

 
(439
)
 

 

 
Actuarial loss/(gain)
(442
)
  
204

  
(34
)
  
59

  
Benefits (paid)
(422
)
 
(311
)
 
(54
)
 
(66
)
 
Balance at measurement date
$
4,477

  
$
5,042

  
$
219

  
$
303

  
 
 
 
 
 
 
 
 
 
Change in fair value of plan assets
 
 
 
 
 
 
 
 
Beginning balance
$
5,035

  
$
5,176

  
$

  
$

  
Company contributions

  

  
54

  
66

  
Actual return on assets(1)
527

  
609

  

  

  
Settlements

 
(439
)
 

 

 
Benefits (paid)
(422
)
 
(311
)
 
(54
)
 
(66
)
 
Balance at measurement date
$
5,140

  
$
5,035

  
$

  
$

  
Funded status of the plan
$
663

(2) 
$
(7
)
(3) 
$
(219
)
(4) 
$
(303
)
(4) 
 
(1)
Includes plan administrative expenses.
(2)
Presented as Prepaid pension in the Consolidated Balance Sheets.
(3)
Included in Other liabilities in the Consolidated Balance Sheets.
(4)
$44 million in 2013 and $53 million in 2012 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)
2013
 
2012
 
2013
 
2012
Net actuarial loss/(gain)
$
898

 
$
1,679

 
$
127

 
$
185

Prior service cost/(credit)
53

  
42

 
(6
)
  
3

Total
$
951

(1) 
$
1,721

 
$
121

(1) 
$
188

 
(1)
In 2014, approximately $57 million for the Primary Pension Plan and $15 million for the supplemental plans are expected to be amortized from Accumulated other comprehensive income/(loss) into net periodic benefit expense/(income)
Schedule of Allocation of Plan Assets
 
 
Investments at Fair Value at February 1, 2014
($ in millions)
 
Level 1(1)
 
Level 2(1)
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
 
Cash
 
$
158

 
$

 
$

 
$
158

Common collective trusts
 

 
32

 

 
32

Cash and cash equivalents total
 
158

 
32

 

 
190

Common collective trusts – domestic
 

 
224

 

 
224

Common collective trusts – international
 

 
335

 

 
335

Equity securities – domestic
 
1,206

 

 

 
1,206

Equity securities – international
 
197

 
6

 

 
203

Private equity
 

 

 
298

 
298

Equity securities total
 
1,403

 
565

 
298

 
2,266

Common collective trusts
 

 
1,099

 

 
1,099

Corporate bonds
 

 
838

 
11

 
849

Swaps
 

 
238

 

 
238

Government securities
 

 
106

 

 
106

Corporate loans
 

 
27

 
6

 
33

Municipal bonds
 

 
50

 

 
50

Mortgage backed securities
 

 
6

 

 
6

Other fixed income
 
1

 
12

 

 
13

Fixed income total
 
1

 
2,376

 
17

 
2,394

Public REITs
 
118

 

 

 
118

Private real estate
 

 
19

 
204

 
223

Real estate total
 
118

 
19

 
204

 
341

Hedge funds
 

 

 
153

 
153

Other investments total
 

 

 
153

 
153

Total investment assets at fair value
 
$
1,680

 
$
2,992

 
$
672

 
$
5,344

Liabilities
 
 
 
 
 
 
 
 
Swaps
 
$

 
$
(237
)
 
$

 
$
(237
)
Other fixed income
 
(2
)
 
(2
)
 

 
(4
)
Fixed income total
 
(2
)
 
(239
)
 

 
(241
)
Total liabilities at fair value
 
$
(2
)
 
$
(239
)
 
$

 
$
(241
)
Accounts payable, net
 
 
 
 
 
 
 
37

Total net assets
 
 
 
 
 
 
 
$
5,140

 
(1)
There were no significant transfers in or out of level 1 or 2 investments.
 
 
Investments at Fair Value at February 2, 2013
($ in millions)
 
Level 1(1)
 
Level 2(1)
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
 
Cash
 
$
31

 
$

 
$

 
$
31

Common collective trusts
 

 
47

 

 
47

Cash and cash equivalents total
 
31

 
47

 

 
78

Common collective trusts – domestic
 

 
161

 

 
161

Common collective trusts – international
 

 
407

 

 
407

Equity securities – domestic
 
1,325

 

 

 
1,325

Equity securities – international
 
210

 
6

 

 
216

Private equity
 

 

 
297

 
297

Equity securities total
 
1,535

 
574

 
297

 
2,406

Common collective trusts
 

 
1,171

 

 
1,171

Corporate bonds
 

 
871

 
10

 
881

Swaps
 

 
216

 

 
216

Municipal bonds
 

 
49

 

 
49

Mortgage backed securities
 

 
26

 
12

 
38

Corporate loans
 

 
54

 

 
54

Government securities
 

 
8

 

 
8

Other fixed income
 
3

 
35

 

 
38

Fixed income total
 
3

 
2,430

 
22

 
2,455

Public REITs
 
133

 

 

 
133

Private real estate
 

 
17

 
231

 
248

Real estate total
 
133

 
17

 
231

 
381

Total investment assets at fair value
 
$
1,702

 
$
3,068

 
$
550

 
$
5,320

Liabilities
 
 
 
 
 
 
 
 
Swaps
 
$

 
$
(216
)
 
$

 
$
(216
)
Other fixed income
 

 
(54
)
 

 
(54
)
Fixed income total
 

 
(270
)
 

 
(270
)
Total liabilities at fair value
 
$

 
$
(270
)
 
$

 
$
(270
)
Accounts payable, net
 
 
 
 
 
 
 
(15
)
Total net assets
 
 
 
 
 
 
 
$
5,035


(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
 
 
2013
($ in millions)
 
Private Equity
 
Real Estate
 
Corporate Loans
 
Corporate Bonds
 
Hedge Funds
Balance, beginning of year
 
$
297

 
$
231

 
$
12

 
$
10

 
$

Transfers, net
 

 

 

 

 

Realized gains/(loss)
 
38

 
5

 

 

 

Unrealized (losses)/gains
 
3

 
11

 

 
(1
)
 
3

Purchases and issuances
 
33

 
4

 
2

 
2

 
150

Sales, maturities and settlements
 
(73
)
 
(47
)
 
(8
)
 

 

Balance, end of year
 
$
298

 
$
204

 
$
6

 
$
11

 
$
153

 
 
 
2012
($ in millions)
 
Private Equity
 
Real Estate
 
Corporate Loans
 
Corporate Bonds
Balance, beginning of year
 
$
299

 
$
255

 
$
27

 
$
9

Transfers, net
 

 
3

 

 

Realized gains/(loss)
 
33

 

 
(1
)
 
(1
)
Unrealized (losses)/gains
 
(5
)
 
7

 

 

Purchases and issuances
 
47

 
6

 
3

 
6

Sales, maturities and settlements
 
(77
)
 
(40
)
 
(17
)
 
(4
)
Balance, end of year
 
$
297

 
$
231

 
$
12

 
$
10

Schedule of Expected Benefit Payments
($ in millions)
 
Primary Plan Benefits
 
Supplemental Plan Benefits
2014
 
$
342

 
$
44

2015
 
331

 
48

2016
 
330

 
42

2017
 
330

 
20

2018
 
331

 
13

2019-2023
 
1,652

 
64

Schedule of Target Allocation Ranges for Defined Benefit Plan Assets
 
 
2013 Target
 
Plan Assets
Asset Class
 
Allocation Ranges
 
2013
 
2012
Equity
 
40% -60%
 
44
%
 
48
%
Fixed income
 
35% -50%
 
42
%
 
43
%
Real estate, cash and other investments
 
0% - 10%
 
14
%
 
9
%
Total
 
 
 
100
%
 
100
%
Schedule of Defined Contribution Plan Expense
($ in millions)
 
2013
 
2012
 
2011
Savings Plan – 401(k)
 
$
38

 
$
43

 
$
52

Savings Plan – retirement account
 
11

 
11

 
11

Mirror Savings Plan
 
3

 
3

 
4

Total
 
$
52

 
$
57

 
$
67

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
 
2013
 
2012
 
2011
 
Expected return on plan assets
7.0
%
 
7.5
%
 
7.5
%
 
Discount rate
4.19
%
 
4.82
%
(1) 
5.65
%
(2) 
Salary increase
4.7
%
 
4.7
%
 
4.7
%
 
 
(1)
The discount rate used was revised to 4.25% on the remeasurement date of September 30, 2012 as a result of the curtailments.
(2)
The discount rate used for the Supplemental Retirement Program and Benefit Restoration Plan was revised to 5.06% on the remeasurement date of October 15, 2011 as a result of the VERP.
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
 
 
2013
 
2012
 
2011
Discount rate
 
4.89
%
 
4.19
%
 
4.82
%
Salary progression rate
 
3.5
%
 
4.7
%
 
4.7
%
Other Postretirement Benefit Plan, Defined Benefit [Member]
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Costs of Retirement Plans
($ in millions)
 
2013
 
2012
 
2011
Interest cost
 
$
1

 
$
1

 
$
1

Amortization of actuarial loss/(gain)
 
(1
)
 
(1
)
 
(1
)
Amortization of prior service cost/(credit)
 
(8
)
 
(14
)
 
(25
)
Net periodic benefit expense/(income)
 
$
(8
)
 
$
(14
)
 
$
(25
)
Schedule of Changes in Projected Benefit Obligations
Obligations and Funded Status
 
($ in millions)
 
2013
 
 
 
2012
 
 
Change in APBO
 
 
 
 
 
 
 
 
Beginning balance
 
$
18

 
 
 
$
24

 
 
Interest cost
 
1

 
 
 
1

 
 
Participant contributions
 
13

 
 
 
14

 
 
Curtailments
 

 
 
 
(2
)
 
 
Actuarial (gain)/loss
 

 
 
 
(3
)
 
 
Benefits (paid)
 
(17
)
 
 
 
(16
)
 
 
Balance at measurement date
 
$
15

 
 
 
$
18

 
 
Change in fair value of plan assets
 
 
 
 
 
 
 
 
Beginning balance
 
$

 
 
 
$

 
 
Participant contributions
 
13

 

 
14

 
 
Company contributions
 
4

 
 
 
2

 
 
Benefits (paid)
 
(17
)
 
 
 
(16
)
 
 
Balance at measurement date
 
$

 
 
 
$

 
 
Funded status of the plan
 
$
(15
)
 
(1)
 
$
(18
)
 
(1)
 
(1)
Of the total accrued liability, $2 million for 2013 and $2 million for 2012 was included in Other accounts payable and accrued expenses in the Consolidated Balance Sheets, and the remaining amounts were included in Other liabilities.
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)
($ in millions)
 
2013
 
 
 
2012
Net actuarial loss/(gain)
 
$
(6
)
 
 
 
$
(7
)
Prior service cost/(credit)
 
(15
)
 
 
 
(23
)
Total
 
$
(21
)
 
(1) 
 
$
(30
)
  
(1) In 2014, approximately $(1) million of net actuarial loss/(gain) and $(8) million of prior service cost/(credit) for the postretirement plan are expected to be amortized from Accumulated other comprehensive income/(loss) into net periodic postretirement benefit (income) included in SG&A in the Consolidated Statement of Operations.
Schedule of Expected Benefit Payments
($ in millions)
Other Postretirement Benefits
2014
$
2

2015
2

2016
2

2017
2

2018
2

2019-2023
6