v3.25.4
Pension Plans
 12 Months Ended
Jan. 31, 2026
Retirement Benefits [Abstract]  
Pension Plans Pension Plans
We have a U.S. qualified defined benefit pension plan covering team members who meet eligibility requirements. This plan is closed to new participants. Active participants accrue benefits under a final average pay feature or a cash balance feature. We also have unfunded, nonqualified pension plans for team members with qualified plan compensation restrictions, as well as international plans. Eligibility and the level of benefits under all plans vary depending on each team member's full-time or part-time status, date of hire, age, length of service, and/or compensation.

Funded StatusQualified PlanNonqualified and International Plans
(millions)2025202420252024
Projected benefit obligations $3,254 $3,225 $65 $64 
Fair value of plan assets3,485 3,346 28 25 
Funded / (underfunded) status
$231 $121 $(37)$(39)
Contributions and Estimated Future Benefit Payments

Our pension obligations can be met over time through a combination of company contributions to these plans and earnings on plan assets. In 2025 and 2024, we made no contributions to our qualified defined benefit pension plan. We are not required to make any contributions to our qualified defined benefit pension plan in 2026. However, depending on investment performance and plan funded status, we may elect to make a contribution.

Estimated Future Benefit Payments
(millions)
Pension Benefits
2026$213 
2027227 
2028241 
2029244 
2030249 
2031 - 20351,328 

Cost of Plans

Net Pension Benefits (Income) / Expense
(millions)Classification202520242023
Service cost benefits earned
Cost of Sales and SG&A Expenses
$74 $80 $79 
Interest cost on projected benefit obligation
Net Other Income
169 166 166 
Expected return on assets
Net Other Income
(272)(279)(269)
Amortization of losses
Net Other Income
1 — 1 
Prior service cost
Net Other Income
7 8 11 
Total$(21)$(25)$(12)

Assumptions

Benefit Obligation Weighted Average Assumptions20252024
Discount rate5.56 %5.68 %
Average assumed rate of compensation increase3.00 3.00 
Cash balance plan interest crediting rate4.64 4.64 

Net Periodic Benefit Expense Weighted Average Assumptions202520242023
Discount rate5.68 %5.20 %4.83 %
Expected long-term rate of return on plan assets7.20 7.00 6.50 
Average assumed rate of compensation increase3.00 3.00 3.00 
Cash balance plan interest crediting rate4.64 4.64 4.64 

The weighted average assumptions used to measure net periodic benefit expense each year are the rates as of the beginning of the year (i.e., the prior measurement date). Our most recent compound annual rate of return on qualified plan assets was 0.8 percent, 5.4 percent, 6.2 percent, and 5.9 percent for the 5-year, 10-year, 15-year, and 20-year time periods, respectively.

The market-related value of plan assets is used in calculating the expected return on assets. Historical differences between expected and actual returns are deferred and recognized in the market-related value over a 5-year period from the year in which they occur.
We review the expected long-term rate of return annually and revise it as appropriate. Additionally, we monitor the mix of investments in our portfolio to ensure alignment with our long-term strategy to manage pension cost and reduce volatility in our assets. Our 2025 expected annualized long-term rate of return assumptions were 7.0 percent for domestic equity securities, 7.0 percent for international equity securities, 6.0 percent for long-duration debt securities, 9.0 percent for balanced funds, and 8.0 percent for other investments. These estimates are a judgmental matter in which we consider the composition of our asset portfolio, our historical long-term investment performance, and current market conditions.

Benefit Obligation

Change in Projected Benefit ObligationQualified PlanNonqualified and International Plans
(millions)2025202420252024
Benefit obligation at beginning of period$3,225 $3,436 $64 $60 
Service cost69 72 5 8 
Interest cost166 164 3 2 
Plan amendments
7 8 — — 
Actuarial loss / (gain) (a)
35 (131)— (2)
Participant contributions9 10 — — 
Benefits paid(257)(334)(7)(4)
Benefit obligation at end of period (b)
$3,254 $3,225 $65 $64 
(a)The actuarial loss / (gain) was primarily driven by changes in the weighted average discount rate.
(b)Accumulated benefit obligation—the present value of benefits earned to date assuming no future salary growth—is materially consistent with the projected benefit obligation in each period presented.
Plan Assets

Change in Plan AssetsQualified PlanNonqualified and International Plans
(millions)2025202420252024
Fair value of plan assets at beginning of period
$3,346 $3,493 $25 $21 
Actual return on plan assets387 177 1 1 
Employer contributions— — 9 7 
Participant contributions9 10 — — 
Benefits paid(257)(334)(7)(4)
Fair value of plan assets at end of period
$3,485 $3,346 $28 $25 

Our asset allocation policy is designed to reduce the long-term cost of funding our pension obligations. The plan invests with both passive and active investment managers depending on the investment. The plan also seeks to reduce the risk associated with adverse movements in interest rates by employing an interest rate hedging program, which includes the use of derivative instruments.

Asset CategoryCurrent Targeted AllocationActual Allocation
 20252024
Domestic equity securities (a)
12 %12 %14 %
International equity securities8 9 8 
Debt securities55 54 50 
Balanced funds
20 22 24 
Other (b)
5 3 4 
Total100 %100 %100 %
(a)Equity securities include our common stock in amounts substantially less than 1 percent of total plan assets in both periods presented.
(b)Other assets include private equity, high-yield debt, natural resources and timberland funds, derivative instruments, and real estate.
Fair Value MeasurementsFair Value as of
(millions)Measurement LevelJanuary 31, 2026January 31, 2025
Cash and cash equivalentsLevel 1$— $6 
Government securities (a)
Level 2543 488 
Fixed income (b)
Level 21,290 1,163 
1,833 1,657 
Investments valued using NAV per share (c)
Fixed income6 6 
Private equity funds45 55 
Cash and cash equivalents117 218 
Common collective trusts660 539 
Balanced funds
754 803 
Other98 93 
Total plan assets$3,513 $3,371 
(a)Investments in government securities and long-term government bonds.
(b)Investments in corporate and municipal bonds.
(c)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 statement of financial position.

Position Valuation Technique
Cash and cash equivalents Carrying value approximates fair value.
Government securities
 and fixed income
 Valued using matrix pricing models and quoted prices of securities with similar characteristics.

Amounts Included in Shareholders' Investment
Actuarial gains and losses are recorded in Accumulated Other Comprehensive Loss (AOCI) and amortized using the corridor approach. As of January 31, 2026, and February 1, 2025, pretax net actuarial losses recorded in AOCI totaled $857 million and $939 million, respectively.