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Pension Plans
 12 Months Ended
Feb. 01, 2025
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)2024202320242023
Projected benefit obligations $3,225 $3,436 $64 $60 
Fair value of plan assets3,346 3,493 25 21 
Funded / (underfunded) status
$121 $57 $(39)$(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 2024 and 2023, 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 2025. However, depending on investment performance and plan funded status, we may elect to make a contribution.

Estimated Future Benefit Payments
(millions)
Pension Benefits
2025$266 
2026197 
2027237 
2028244 
2029251 
2030 - 20341,321 

Cost of Plans

Net Pension Benefits (Income) / Expense
(millions)Classification202420232022
Service cost benefits earned SG&A Expenses$80 $79 $94 
Interest cost on projected benefit obligation
Net Other Income
166 166 117 
Expected return on assets
Net Other Income
(279)(269)(234)
Amortization of losses
Net Other Income
— 1 61 
Prior service cost
Net Other Income
8 11 10 
Total$(25)$(12)$48 

Assumptions

Benefit Obligation Weighted Average Assumptions20242023
Discount rate5.68 %5.20 %
Average assumed rate of compensation increase3.00 3.00 
Cash balance plan interest crediting rate4.64 4.64 

Net Periodic Benefit Expense Weighted Average Assumptions202420232022
Discount rate5.20 %4.83 %3.30 %
Expected long-term rate of return on plan assets7.00 6.50 5.60 
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 1.2 percent, 3.9 percent, 6.3 percent, and 5.7 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 2024 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)2024202320242023
Benefit obligation at beginning of period$3,436 $3,616 $60 $64 
Service cost72 76 8 3 
Interest cost164 164 2 2 
Plan amendments
8 11 — — 
Actuarial gain (a)
(131)(114)(2)(4)
Participant contributions10 4 — — 
Benefits paid(334)(321)(4)(5)
Benefit obligation at end of period (b)
$3,225 $3,436 $64 $60 
(a)The actuarial 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)2024202320242023
Fair value of plan assets at beginning of period
$3,493 $3,691 $21 $17 
Actual return on plan assets177 119 1 1 
Employer contributions— — 7 8 
Participant contributions10 4 — — 
Benefits paid(334)(321)(4)(5)
Fair value of plan assets at end of period
$3,346 $3,493 $25 $21 

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
 20242023
Domestic equity securities (a)
14 %14 %12 %
International equity securities8 8 8 
Debt securities50 50 52 
Balanced funds
23 24 24 
Other (b)
5 4 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, 2025January 31, 2024
Cash and cash equivalentsLevel 1$6 $5 
Derivatives
Level 2— 10 
Government securities (a)
Level 2488 551 
Fixed income (b)
Level 21,163 1,195 
1,657 1,761 
Investments valued using NAV per share (c)
Fixed income6 6 
Private equity funds55 64 
Cash and cash equivalents218 141 
Common collective trusts539 623 
Balanced funds
803 825 
Other93 94 
Total plan assets$3,371 $3,514 
(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.
Derivatives
Valuations are based on observable inputs to the valuation model (e.g., interest rates and credit spreads). Model inputs are changed only when corroborated by market data. A credit risk adjustment is made on each swap using observable market credit spreads.
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 February 1, 2025, and February 3, 2024, pretax net actuarial losses recorded in AOCI totaled $939 million and $969 million, respectively.