Pension Plans and Other Retirement Benefits (Tables)

12 Months Ended

Jan. 30, 2021

Financial Information Related to Funded Defined Benefit Pension Plan and Unfunded Supplemental Retirement Plan

Presented below is financial information relating to TJX’s funded defined benefit pension plan (“qualified pension plan” or “funded plan”) and its unfunded supplemental pension plan (“unfunded plan”) for the fiscal years indicated. The Company has elected the practical expedient pursuant to ASU 2015-4– Compensation-retirement benefits (Topic 715) and has selected the measurement date of January 31, the calendar month end closest to the Company’s fiscal year end.


	Funded Plan Fiscal Year Ended				Unfunded Plan Fiscal Year Ended
In thousands	January 30, 2021		February 1, 2020		January 30, 2021		February 1, 2020

Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	1,532,416	$	1,221,170	$	104,823	$	96,759
Service cost	50,123		44,685		2,430		2,059
Interest cost	50,210		52,172		3,283		3,740
Actuarial losses	13,758		237,125		8,229		4,682

Benefits paid	(24,527)		(19,891)		(5,287)		(2,417)
Expenses paid	(2,706)		(2,845)		—		—
Projected benefit obligation at end of year	$	1,619,274	$	1,532,416	$	113,478	$	104,823
Accumulated benefit obligation at end of year	$	1,481,505	$	1,383,298	$	97,451	$	88,038


	Funded Plan Fiscal Year Ended				Unfunded Plan Fiscal Year Ended
In thousands	January 30, 2021		February 1, 2020		January 30, 2021		February 1, 2020

Change in plan assets:
Fair value of plan assets at beginning of year	$	1,562,274	$	1,245,335	$	—	$	—
Actual return on plan assets	151,594		239,675		—		—
Employer contribution	100		100,000		5,287		2,417

Benefits paid	(24,527)		(19,891)		(5,287)		(2,417)
Expenses paid	(2,706)		(2,845)		—		—
Fair value of plan assets at end of year	$	1,686,735	$	1,562,274	$	—	$	—
Reconciliation of funded status:
Projected benefit obligation at end of year	$	1,619,274	$	1,532,416	$	113,478	$	104,823
Fair value of plan assets at end of year	1,686,735		1,562,274		—		—
Funded status – excess (asset) obligation	$	(67,461)	$	(29,858)	$	113,478	$	104,823
Net (asset) liability recognized on Consolidated Balance Sheets	$	(67,461)	$	(29,858)	$	113,478	$	104,823
Amounts not yet reflected in net periodic benefit cost and included in Accumulated other comprehensive income (loss):
Prior service cost	$	803	$	1,181	$	—	$	—
Accumulated actuarial losses	245,506		316,695		35,880		32,266
Amounts included in Accumulated other comprehensive income (loss)	$	246,309	$	317,876	$	35,880	$	32,266

Weighted Average Assumptions for Obligation

Presented below are weighted average assumptions for measurement purposes for determining the obligation at the year-end measurement date:


	Funded Plan Fiscal Year Ended				Unfunded Plan Fiscal Year Ended
	January 30, 2021		February 1, 2020		January 30, 2021		February 1, 2020
Discount rate	3.20	%	3.30	%	2.80	%	3.10	%
Rate of compensation increase(a)	4.00	%	4.00	%	4.00	%	4.00	%

(a)As of fiscal 2020, the rate of compensation increase for the Unfunded Plan, reflects the rate for participants eligible for the alternative benefit as the participants eligible for the primary benefit no longer accrue benefits under this plan.

Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Loss)

The following are the components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) related to our pension plans:


	Funded Plan Fiscal Year Ended									Unfunded Plan Fiscal Year Ended
In thousands	January 30, 2021			February 1, 2020			February 2, 2019			January 30, 2021			February 1, 2020			February 2, 2019

Net periodic pension cost:
Service cost	$	50,123		$	44,685		$	45,342		$	2,430		$	2,059		$	2,391
Interest cost	50,210			52,172			54,355			3,283			3,740			3,600
Expected return on plan assets	(88,997)			(74,141)			(79,190)			—			—			—
Amortization of prior service cost	377			377			377			—			—			—
Amortization of net actuarial loss	22,351			19,055			12,250			4,616			3,124			3,409
Settlement charge	—			—			36,122			—			—			—
Total expense	$	34,064		$	42,148		$	69,256		$	10,329		$	8,923		$	9,400
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net (gain) loss	(48,838)			$	71,590		$	68,770		$	8,229		$	4,682		$	5,955
Amortization of net (loss)	(22,351)			(19,055)			(12,250)			(4,616)			(3,124)			(3,409)
Settlement charge	—			—			(36,122)			—			—			—
Amortization of prior service cost	(377)			(377)			(377)			—			—			—
Total recognized in other comprehensive income (loss)	$	(71,566)		$	52,158		$	20,021		$	3,613		$	1,558		$	2,546
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	(37,502)		$	94,306		$	89,277		$	13,942		$	10,481		$	11,946
Weighted average assumptions for expense purposes:
Discount rate	3.30		%	4.30		%	4.00%/4.40%			3.10		%	4.10		%	3.80		%
Expected rate of return on plan assets	5.75		%	6.00		%	6.00%/6.00%			N/A			N/A			N/A
Rate of compensation increase(a)	4.00		%	4.00		%	4.00		%	4.00		%	6.00		%	6.00		%

(a)For fiscal 2020 and fiscal 2019, the rate of compensation increase for participants eligible for the primary benefit under the unfunded plan is 6.00%. The assumed rate of compensation increase for participants eligible for the alternative benefit under the unfunded plan is 4.00%.

Schedule of Benefits Expected to be Paid in Each of Next Five Fiscal Years and Thereafter

The following is a schedule of the benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter:


In thousands	Funded Plan Expected Benefit Payments		Unfunded Plan Expected Benefit Payments
Fiscal Year
2022	$	35,475	$	4,088
2023	40,692		45,914
2024	46,242		6,148
2025	51,865		7,356
2026	57,629		7,992
2027 through 2031	371,352		37,035

Fair Value for Pension Assets Measured at Fair Value on Recurring Basis

The following tables present the fair value hierarchy (See Note G—Fair Value Measurements) for pension assets measured at fair value on a recurring basis as of January 30, 2021 and February 1, 2020:


	Funded Plan at January 30, 2021
In thousands	Level 1		Level 2		Total
Asset category:
Short-term investments	$	8,598	$	—	$	8,598
Equity Securities	174,691		—		174,691
Fixed Income Securities:
Corporate and government bond funds	—		548,667		548,667
Futures Contracts	—		4,896		4,896
Total assets in the fair value hierarchy	$	183,289	$	553,563	$	736,852
Assets measured at net asset value(a)	—		—		949,883
Fair value of assets	$	183,289	$	553,563	$	1,686,735


	Funded Plan at February 1, 2020
In thousands	Level 1		Level 2		Total
Asset category:
Short-term investments	$	109,953	$	—	$	109,953
Equity Securities	231,607		—		231,607
Fixed Income Securities:
Corporate and government bond funds	—		480,519		480,519
Futures Contracts	—		(2,540)		(2,540)
Total assets in the fair value hierarchy	$	341,560	$	477,979	$	819,539
Assets measured at net asset value(a)	—		—		742,735
Fair value of assets	$	341,560	$	477,979	$	1,562,274

(a)In accordance with Subtopic 820-10, certain investments that were measured using net asset value per share (or its equivalent) as a 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 fair value of assets presented above.

Summary of Target Allocation for Plan Assets Along with Actual Allocation of Plan Assets as of Valuation Date

The following is a summary of TJX’s target allocation guidelines for qualified pension plan assets as of January 30, 2021 along with the actual allocation of qualified pension plan assets as of the valuation date for the fiscal years presented:


	Target Allocation	January 30, 2021	February 1, 2020
Return-seeking assets	50%	48%	44%
Liability-hedging assets	50%	51%	49%
All other – primarily cash	—%	1%	7%