|
Pension and Postretirement Health Care Plans (Tables)
|
12 Months Ended |
|
Jan. 28, 2012
|
| Pension and Postretirement Health Care Plans |
|
| Schedule of change in projected benefit obligation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Pension Benefits |
|
|
|
|
|
Change in Projected Benefit Obligation
|
|
Postretirement
Health Care Benefits |
|
|
|
Qualified Plans |
|
Nonqualified Plans |
|
(millions)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
| |
|
|
Benefit obligation at beginning of period |
|
$ |
2,525 |
|
$ |
2,227 |
|
$ |
31 |
|
$ |
33 |
|
$ |
94 |
|
$ |
87 |
|
|
Service cost |
|
|
116 |
|
|
114 |
|
|
1 |
|
|
1 |
|
|
10 |
|
|
9 |
|
|
Interest cost |
|
|
135 |
|
|
127 |
|
|
2 |
|
|
2 |
|
|
4 |
|
|
4 |
|
|
Actuarial (gain)/loss |
|
|
349 |
|
|
160 |
|
|
7 |
|
|
(2 |
) |
|
— |
|
|
3 |
|
|
Participant contributions |
|
|
1 |
|
|
2 |
|
|
— |
|
|
— |
|
|
6 |
|
|
6 |
|
|
Benefits paid |
|
|
(111 |
) |
|
(105 |
) |
|
(3 |
) |
|
(3 |
) |
|
(14 |
) |
|
(15 |
) |
| |
|
|
Benefit obligation at end of period |
|
$ |
3,015 |
|
$ |
2,525 |
|
$ |
38 |
|
$ |
31 |
|
$ |
100 |
|
$ |
94 |
|
| |
|
|
|
| Schedule of change in plan assets |
| |
|
|
|
Pension Benefits |
|
|
|
|
|
Change in Plan Assets
|
|
Postretirement
Health Care Benefits |
|
|
|
Qualified Plans |
|
Nonqualified Plans |
|
(millions)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
| |
|
|
Fair value of plan assets at beginning of period |
|
$ |
2,515 |
|
$ |
2,157 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Actual return on plan assets |
|
|
364 |
|
|
308 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Employer contributions |
|
|
152 |
|
|
153 |
|
|
3 |
|
|
3 |
|
|
8 |
|
|
9 |
|
|
Participant contributions |
|
|
1 |
|
|
2 |
|
|
— |
|
|
— |
|
|
6 |
|
|
6 |
|
|
Benefits paid |
|
|
(111 |
) |
|
(105 |
) |
|
(3 |
) |
|
(3 |
) |
|
(14 |
) |
|
(15 |
) |
| |
|
|
Fair value of plan assets at end of period |
|
|
2,921 |
|
|
2,515 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Benefit obligation at end of period |
|
|
3,015 |
|
|
2,525 |
|
|
38 |
|
|
31 |
|
|
100 |
|
|
94 |
|
| |
|
|
Funded/(underfunded) status |
|
$ |
(94 |
) |
$ |
(10 |
) |
$ |
(38 |
) |
$ |
(31 |
) |
$ |
(100 |
) |
$ |
(94 |
) |
| |
|
|
|
| Amounts recognized in Balance Sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Recognition of Funded/(Underfunded) Status
|
|
Qualified Plans |
|
Nonqualified Plans (a) |
|
(millions)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
| |
|
|
Other noncurrent assets |
|
$ |
3 |
|
$ |
5 |
|
$ |
— |
|
$ |
— |
|
|
Accrued and other current liabilities |
|
|
(1 |
) |
|
(1 |
) |
|
(9 |
) |
|
(11 |
) |
|
Other noncurrent liabilities |
|
|
(96 |
) |
|
(14 |
) |
|
(129 |
) |
|
(114 |
) |
| |
|
|
Net amounts recognized |
|
$ |
(94 |
) |
$ |
(10 |
) |
$ |
(138 |
) |
$ |
(125 |
) |
| |
|
- (a)
- Includes postretirement health care benefits.
|
|
| Amounts recorded in accumulated other comprehensive income, not yet recognized as component of net periodic benefit expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Amounts in Accumulated Other Comprehensive Income
|
|
|
|
|
|
Postretirement
Health Care Plans |
|
|
|
Pension Plans |
|
(millions)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
| |
|
|
Net actuarial loss |
|
$ |
1,027 |
|
$ |
895 |
|
$ |
44 |
|
$ |
48 |
|
|
Prior service credits |
|
|
— |
|
|
(1 |
) |
|
(41 |
) |
|
(51 |
) |
| |
|
|
Amounts in accumulated other comprehensive income |
|
$ |
1,027 |
|
$ |
894 |
|
$ |
3 |
|
$ |
(3 |
) |
| |
|
|
|
| Changes in AOCI, Pension and Other Post Retirement Plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Change in Accumulated Other Comprehensive Income
|
|
|
|
|
|
Postretirement
Health Care Benefits |
|
|
|
Pension Benefits |
|
(millions)
|
|
Pretax
|
|
Net of tax
|
|
Pretax
|
|
Net of tax
|
|
| |
|
|
January 30, 2010 |
|
$ |
895 |
|
$ |
544 |
|
$ |
(12 |
) |
$ |
(7 |
) |
|
Net actuarial loss |
|
|
40 |
|
|
25 |
|
|
3 |
|
|
2 |
|
|
Amortization of net actuarial losses |
|
|
(44 |
) |
|
(27 |
) |
|
(4 |
) |
|
(3 |
) |
|
Amortization of prior service costs and transition |
|
|
3 |
|
|
1 |
|
|
10 |
|
|
6 |
|
| |
|
|
January 29, 2011 |
|
$ |
894 |
|
$ |
543 |
|
$ |
(3 |
) |
$ |
(2 |
) |
|
Net actuarial loss |
|
|
198 |
|
|
120 |
|
|
— |
|
|
— |
|
|
Amortization of net actuarial losses |
|
|
(67 |
) |
|
(41 |
) |
|
(4 |
) |
|
(2 |
) |
|
Amortization of prior service costs and transition |
|
|
2 |
|
|
1 |
|
|
10 |
|
|
6 |
|
| |
|
|
January 28, 2012 |
|
$ |
1,027 |
|
$ |
623 |
|
$ |
3 |
|
$ |
2 |
|
| |
|
|
|
| Amounts in accumulated other comprehensive income expected to be recognized as component of net periodic benefit expense in 2012 |
|
|
|
|
|
|
|
|
|
| |
|
Expected Amortization of Amounts in Accumulated Other Comprehensive Income
(millions)
|
|
Pretax
|
|
Net of tax
|
|
| |
|
|
Net actuarial loss |
|
$ |
106 |
|
$ |
64 |
|
|
Prior service credits |
|
|
(10 |
) |
|
(6 |
) |
| |
|
|
Total amortization expense |
|
$ |
96 |
|
$ |
58 |
|
| |
|
|
|
| Net Pension and Postretirement Health Care Benefits Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Net Pension and Postretirement Health Care Benefits Expense
|
|
|
|
|
|
|
|
Postretirement
Health Care Benefits |
|
|
|
Pension Benefits |
|
(millions)
|
|
2011
|
|
2010
|
|
2009
|
|
2011
|
|
2010
|
|
2009
|
|
| |
|
|
Service cost of benefits earned during the period |
|
$ |
117 |
|
$ |
115 |
|
$ |
100 |
|
$ |
10 |
|
$ |
9 |
|
$ |
7 |
|
|
Interest cost on projected benefit obligation |
|
|
137 |
|
|
129 |
|
|
125 |
|
|
4 |
|
|
4 |
|
|
6 |
|
|
Expected return on assets |
|
|
(206 |
) |
|
(191 |
) |
|
(177 |
) |
|
— |
|
|
— |
|
|
— |
|
|
Amortization of losses |
|
|
67 |
|
|
44 |
|
|
24 |
|
|
4 |
|
|
4 |
|
|
2 |
|
|
Amortization of prior service cost |
|
|
(2 |
) |
|
(3 |
) |
|
(2 |
) |
|
(10 |
) |
|
(10 |
) |
|
(2 |
) |
| |
|
|
Total |
|
$ |
113 |
|
$ |
94 |
|
$ |
70 |
|
$ |
8 |
|
$ |
7 |
|
$ |
13 |
|
| |
|
|
|
| Defined Benefit Pension Plan Information |
|
|
|
|
|
|
|
|
| |
|
Defined Benefit Pension Plan Information
(millions)
|
|
2011
|
|
2010
|
|
| |
|
|
Accumulated benefit obligation (ABO) for all plans (a) |
|
$ |
2,872 |
|
$ |
2,395 |
|
|
Projected benefit obligation for pension plans with an ABO in excess of plan assets (b) |
|
|
55 |
|
|
47 |
|
|
Total ABO for pension plans with an ABO in excess of plan assets |
|
|
48 |
|
|
42 |
|
| |
|
- (a)
- The present value of benefits earned to date assuming no future salary growth.
- (b)
- The present value of benefits earned to date by plan participants, including the effect of assumed future salary increases.
|
|
| Weighted average assumptions used to determine benefit obligations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Weighted Average Assumptions
|
|
|
|
|
|
Postretirement
Health Care Benefits |
|
|
|
Pension Benefits |
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
| |
|
|
Discount rate |
|
|
4.65 |
% |
|
5.50 |
% |
|
3.60 |
% |
|
4.35 |
% |
|
Average assumed rate of compensation increase |
|
|
3.50 |
% |
|
4.00 |
% |
|
n/a |
|
|
n/a |
|
| |
|
|
|
| Weighted average assumptions used to determine net periodic benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Weighted Average Assumptions
|
|
|
|
|
|
|
|
Postretirement
Health Care Benefits |
|
|
|
Pension Benefits |
|
|
|
2011
|
|
2010
|
|
2009
|
|
2011
|
|
2010 (a)
|
|
2009 (a)
|
|
| |
|
|
Discount rate |
|
|
5.50 |
% |
|
5.85 |
% |
|
6.50 |
% |
|
4.35 |
% |
|
4.85 |
% |
|
6.50 |
% |
|
Expected long-term rate of return on plan assets |
|
|
8.00 |
% |
|
8.00 |
% |
|
8.00 |
% |
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
Average assumed rate of compensation increase |
|
|
4.00 |
% |
|
4.00 |
% |
|
4.25 |
% |
|
n/a |
|
|
n/a |
|
|
n/a |
|
| |
|
- (a)
- Due to the remeasurement from the plan amendment in the third quarter of 2009, the discount rate was decreased from 6.50 percent to 4.85 percent.
|
|
| Effect of a one percent change in assumed health care cost trend rates |
|
|
|
|
|
|
|
|
|
| |
|
Health Care Cost Trend Rates – 1% Change
(millions)
|
|
1% Increase
|
|
1% Decrease
|
|
| |
|
|
Effect on total of service and interest cost components of net periodic postretirement health care benefit expense |
|
$ |
1 |
|
$ |
(1 |
) |
|
Effect on the health care component of the accumulated postretirement benefit obligation |
|
|
7 |
|
|
(7 |
) |
| |
|
|
|
| Target and actual allocation of defined benefit Plan Assets |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Actual Allocation |
|
Asset Category
|
|
Current targeted
allocation
|
|
|
|
2011
|
|
2010
|
|
| |
|
|
Domestic equity securities (a) |
|
|
19 |
% |
|
19 |
% |
|
18 |
% |
|
International equity securities |
|
|
12 |
|
|
11 |
|
|
10 |
|
|
Debt securities |
|
|
25 |
|
|
29 |
|
|
25 |
|
|
Balanced funds |
|
|
30 |
|
|
25 |
|
|
26 |
|
|
Other (b) |
|
|
14 |
|
|
16 |
|
|
21 |
|
| |
|
|
Total |
|
|
100 |
% |
|
100 |
% |
|
100 |
% |
| |
|
- (a)
- Equity securities include our common stock in amounts substantially less than 1 percent of total plan assets as of January 28, 2012 and January 29, 2011.
- (b)
- Other assets include private equity, mezzanine and high-yield debt, natural resources and timberland funds, multi-strategy hedge funds, derivative instruments and a 4 percent allocation to real estate.
|
|
| Fair value of pension plan assets, by asset category |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements
|
|
|
|
Fair Value at January 28, 2012 |
|
|
|
Fair Value at January 29, 2011 |
|
(millions)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
| |
|
|
Cash and cash equivalents |
|
$ |
263 |
|
$ |
11 |
|
$ |
252 |
|
$ |
— |
|
$ |
195 |
|
$ |
— |
|
$ |
195 |
|
$ |
— |
|
|
Common collective trusts (a) |
|
|
653 |
|
|
— |
|
|
653 |
|
|
— |
|
|
490 |
|
|
— |
|
|
490 |
|
|
— |
|
|
Equity securities (b) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
36 |
|
|
36 |
|
|
— |
|
|
— |
|
|
Government securities (c) |
|
|
356 |
|
|
— |
|
|
356 |
|
|
— |
|
|
259 |
|
|
— |
|
|
259 |
|
|
— |
|
|
Fixed income (d) |
|
|
466 |
|
|
— |
|
|
466 |
|
|
— |
|
|
397 |
|
|
— |
|
|
397 |
|
|
— |
|
|
Balanced funds (e) |
|
|
744 |
|
|
— |
|
|
744 |
|
|
— |
|
|
596 |
|
|
— |
|
|
596 |
|
|
— |
|
|
Private equity funds (f) |
|
|
283 |
|
|
— |
|
|
— |
|
|
283 |
|
|
327 |
|
|
— |
|
|
— |
|
|
327 |
|
|
Other (g) |
|
|
156 |
|
|
— |
|
|
41 |
|
|
115 |
|
|
130 |
|
|
— |
|
|
3 |
|
|
127 |
|
| |
|
|
Total |
|
$ |
2,921 |
|
$ |
11 |
|
$ |
2,512 |
|
$ |
398 |
|
$ |
2,430 |
|
$ |
36 |
|
$ |
1,940 |
|
$ |
454 |
|
| |
|
|
Contributions in transit (h) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
85 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Total plan assets |
|
$ |
2,921 |
|
|
|
|
|
|
|
|
|
|
$ |
2,515 |
|
|
|
|
|
|
|
|
|
|
| |
|
- (a)
- Passively managed index funds with holdings in domestic and international equities.
- (b)
- Investments in U.S. small-, mid- and large-cap companies.
- (c)
- Investments in government securities and passively managed index funds with holdings in long-term government bonds.
- (d)
- Investments in corporate bonds, mortgage-backed securities and passively managed index funds with holdings in long-term corporate bonds.
- (e)
- Investments in equities, nominal and inflation-linked fixed income securities, commodities and public real estate.
- (f)
- Includes investments in venture capital, mezzanine and high-yield debt, natural resources and timberland funds.
- (g)
- Investments in multi-strategy hedge funds (including domestic and international equity securities, convertible bonds and other alternative investments), real estate and derivative investments.
- (h)
- Represents $20 million in contributions to equity securities and $65 million in contributions to balanced funds held by investment managers, but not yet invested in the respective funds as of January 29, 2011.
|
|
| Reconciliation of assets' fair value using significant unobservable inputs (Level 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Level 3 Reconciliation
|
|
Actual return on plan assets (a) |
|
|
|
|
|
|
|
(millions)
|
|
Balance at
beginning of
period
|
|
Relating to
assets still held
at the reporting
date
|
|
Relating to
assets sold
during the
period
|
|
Purchases,
sales and
settlements
|
|
Transfer in
and/or out of
Level 3
|
|
Balance at
end of period
|
|
| |
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private equity funds |
|
$ |
336 |
|
$ |
28 |
|
$ |
12 |
|
$ |
(49 |
) |
$ |
— |
|
$ |
327 |
|
|
Other |
|
|
119 |
|
|
7 |
|
|
2 |
|
|
(1 |
) |
|
— |
|
|
127 |
|
| |
|
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private equity funds |
|
$ |
327 |
|
$ |
(6 |
) |
$ |
26 |
|
$ |
(64 |
) |
$ |
— |
|
$ |
283 |
|
|
Other |
|
|
127 |
|
|
9 |
|
|
— |
|
|
(21 |
) |
|
— |
|
|
115 |
|
| |
|
- (a)
- Represents realized and unrealized gains (losses) from changes in values of those financial instruments only for the period in which the instruments were classified as Level 3.
|
|
| Estimated Future Benefit Payments |
|
|
|
|
|
|
|
|
| |
|
Estimated Future Benefit Payments
(millions)
|
|
Pension
Benefits
|
|
Postretirement
Health Care Benefits
|
|
| |
|
|
2012 |
|
$ |
131 |
|
$ |
6 |
|
|
2013 |
|
|
140 |
|
|
7 |
|
|
2014 |
|
|
149 |
|
|
7 |
|
|
2015 |
|
|
157 |
|
|
8 |
|
|
2016 |
|
|
165 |
|
|
9 |
|
|
2017-2021 |
|
|
958 |
|
|
63 |
|
| |
|
|
|