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Retirement Plans
 12 Months Ended
Jan. 29, 2021
Retirement Benefits [Abstract]  
Retirement Plans Retirement Plans:
Defined Contribution Plans
The Company sponsors the Science Applications International Corporation Retirement Plan (a qualified defined contribution 401(k) plan) and an employee stock ownership plan, in which most employees are eligible to participate. There are a variety of investment options available, including the Company's stock. Engility sponsored the Engility Master Savings Plan, which was a 401(k) plan in which most employees of Engility were eligible to participate. The Engility Master Savings Plan merged into the Science Applications International Corporation Retirement Plan on January 2, 2020.
The Science Applications International Corporation Retirement Plan allows eligible participants to contribute a portion of their income through payroll deductions and the Company makes matching company contributions and may also make discretionary contributions. The Company contributions expensed for defined contribution plans were $73 million, $65 million and $46 million in fiscal 2021, 2020 and 2019, respectively.
Deferred Compensation Plans
The Company has established the Science Applications International Corporation Deferred Compensation Plan (DCP), effective January 1, 2015, providing certain eligible employees and directors an opportunity to defer some or all of their compensation on an unfunded, nonqualified basis. Participant deferrals are fully vested and diversified at the participant’s direction among the investment options offered under the DCP. Participant accounts will be credited with a rate of return based on the performance of the investment options selected. Distributions are made in cash. Deferred balances will be paid on retirement, based on the participant’s payout election, or upon termination. The Company may provide discretionary contributions to participants, but no Company contributions have been made.
The Science Applications International Corporation Key Executive Stock Deferral Plan (KESDP) was closed on December 31, 2014, and no further deferrals are allowed. Benefits from the KESDP are payable in shares of the Company’s stock that may be held in trust for the purpose of funding benefit payments to KESDP participants. Vested deferred balances will generally be paid on retirement, based on the participant’s payout election, or upon termination.
The Science Applications International Corporation 401(k) Excess Deferral Plan (Excess Plan) was also closed on December 31, 2014, and no further deferrals are allowed. Participant deferrals are fully vested and diversified at the participant’s direction among the investment options offered under the Excess Plan. Deferred balances will generally be paid following retirement or termination.
Defined Benefit Plans
In connection with the acquisition of Engility on January 14, 2019, SAIC assumed two defined benefit plans sponsored by Engility for certain current and former employees: a Defined Benefit Pension Plan (Pension Plan) and a Retiree Health Reimbursement Account Plan (RHRA Benefit Plan). Membership and participants' calculated pension benefit are frozen in the Pension Plan and membership in the RHRA Benefit Plan is frozen.
Our funding policy is to contribute at least the minimum amount required by the Employee Retirement income Security Act of 1974. Additional amounts are contributed to assure that plan assets will be adequate to provide retirement benefits. During fiscal 2022, the Company expects to contribute $1 million to fund the RHRA Benefit Plan.
During fiscal 2021, the Company recognized a net gain of $2 million on our retirement plans within other comprehensive loss. The gain was primarily comprised of a $3 million gain due to assumption changes other than discount rates, $2 million gain from the excess in actual investment return over the expected return, and $1 million of settlement charges. During the fourth quarter of fiscal 2021, the Company transferred out $6 million of assets to settle the obligations of certain retirees within the Pension Plan, which resulted in the $1 million of settlement charges. These gains were partially offset by a $4 million increase in liability caused by a decrease in the discount rates.
During fiscal 2020, the Company recognized net losses of $5 million and $1 million within other comprehensive (income) loss related to changes in the net benefit obligations for the Pension Plan and RHRA Benefit Plan, respectively. During fiscal 2020, the net loss of $6 million was attributable to a $9 million increase in the projected benefit obligation caused by a decrease in the discount rate, partially offset by an actual investment return in excess of the expected return by $3 million.

Net Periodic Benefit Costs
The net periodic benefit cost was as follows:
Pension PlanRHRA Benefit Plan
Year Ended
January 29, 2021January 31, 2020January 29, 2021January 31, 2020
(in millions)
Interest cost on projected benefit obligation$2 $3 $— $1 
Expected return on plan assets(3)(3)— — 
Settlement cost1 — — — 
Net periodic benefit cost$— $— $— $1 
Obligations and Funded Status
The projected benefit obligation, fair value of plan assets, and funded status for each plan are as follows:
Pension PlanRHRA Benefit Plan
January 29, 2021January 31, 2020January 29, 2021January 31, 2020
(in millions)
Change in benefit obligation:
Benefit obligation at beginning of year$76 $71 $17 $15 
Interest cost2 3 — 1 
Benefits paid(5)(5)(1)(1)
Actuarial loss (gain)3 7 (2)2 
Settlements(6)— — — 
Benefit obligation at end of year$70 $76 $14 $17 
Change in plan assets:
Fair value of plan assets at beginning of year53 52 — — 
Actual return on plan assets5 6 — — 
Employer contributions8 — 1 1 
Benefits paid(5)(5)(1)(1)
Settlements(6)— — — 
Fair value of plan assets at end of year$55 $53 $— $— 
Unfunded status$15 $23 $14 $17 
Amounts recognized in the consolidated balance sheets consist of:
Pension PlanRHRA Benefit Plan
January 29, 2021January 31, 2020January 29, 2021January 31, 2020
(in millions)
Other accrued liabilities$— $— $1 $1 
Other long-term liabilities15 23 13 16 
Net amount recognized$15 $23 $14 $17 
Assumptions
The Company uses the spot rate approach to measure liabilities and interest costs for defined benefit obligations. Under the spot rate approach, the Company uses individual spot rates along the yield curve that correspond with the timing of each benefit payment.
The discount rates represent the estimated rate at which we could effectively settle our defined benefit obligations using a high quality bond yield curve.
The assumed long-term rate of return on plan assets, which is the average return expected on the funds invested or to be invested to provide future benefits to pension plan participants, is determined by an annual review of historical returns on plan assets. In selecting the expected long-term rate of return on assets used for the Pension Plan, the Company considered its investment return goals stated in the Pension Plan's investment policy. This process included determining expected returns for the various asset classes that comprise the Pension Plan's target asset allocation.
The following assumptions were used to determine the benefit obligations and net periodic benefit costs:
Pension PlanRHRA Benefit Plan
January 29, 2021January 31, 2020February 1, 2019January 29, 2021January 31, 2020February 1, 2019
Discount rate2.47 %2.87 %4.06 %1.86 %2.56 %3.82 %
Interest cost effective rate2.47 %3.70 %N/A2.27 %3.58 %N/A
Expected rate of return on assets5.50 %5.50 %N/AN/AN/AN/A
Pension Plan Assets
The Company's investment policy includes a periodic review of the Pension Plan's investment in the various asset classes. During 2021, the Company's overall investment strategy is for plan assets to achieve a long-term rate of return of 5.50%, with a wide diversification of asset types, fund strategies and fund managers. The target allocation for the plan assets is 44% in domestic equity securities, 20% international equity, 31% in fixed income securities, and 5% in cash and cash equivalents. The risk management practices include regular evaluations of fund managers to ensure the risk assumed is commensurate with the given investment style and objectives. According to the plan's investment policy, performance will be evaluated across all time periods, with a particular emphasis on longer-term returns relative to associated peers and benchmarks.
The fair value measurement of plan assets by category is as follows:
January 29, 2021January 31, 2020
Asset CategoryFair Value Hierarchy(in millions)
Mutual funds
EquityLevel 1$37 $34 
Fixed incomeLevel 18 9 
Guaranteed deposit accountLevel 33 2 
Subtotal48 45 
Collective trust - fixed income(1)
Measured at NAV7 8 
Total$55 $53 
(1)Collective trusts are measured at fair value using net asset value (NAV) as a practical expedient and have not been categorized in the fair value hierarchy.
Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
A reconciliation of the beginning and ending balances of the Guaranteed Deposit Account (GDA) is as follows:
Guaranteed Deposit Account
(in millions)
Balance at February 1, 2019
$3 
Purchases13 
Sales(14)
Balance at January 31, 2020
2 
Purchases12 
Sales(11)
Balance at January 29, 2021
$3 
The GDA is designed to provide liquidity and safety of principal with a competitive guaranteed rate of return. The fair value of the GDA approximates the market value of underlying investments by discounting expected future investment cash flow from both investment income and repayment of principal for each investment purchased directly for the defined benefit segment of the General Account. Principal and accumulated interest are fully guaranteed by Prudential Retirement Insurance and Annuity Company (PRIAC). The declared interest rate is
announced each year in advance and is determined by PRIAC. The GDA invests in a broadly diversified, fixed-income portfolio within PRIAC's general account. The portfolio is invested in public bonds, commercial mortgages and private placement bonds.
Estimated Future Benefit Payments
The following table sets forth the expected timing of benefit payments by fiscal year:
Fiscal YearPension PlanRHRA Benefit PlanTotal
(in millions)
2022$5 $1 $6 
20235 1 6 
20245 1 6 
20255 1 6 
20265 1 6 
Five subsequent fiscal years$22 $6 $28