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Retirement Plans
 12 Months Ended
Jan. 31, 2026
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]  
Retirement Plans Retirement Plans
The Company has defined contribution plans that cover substantially all employees who work 1,000 hours or more in a year. In addition, the Company's Pension Plan is a funded defined benefit plan and its SERP is an unfunded defined benefit plan, which provides benefits, for certain employees, in excess of qualified plan limitations. Effective January 1, 2012, the Pension Plan was closed to new participants, with limited exceptions, and effective January 2, 2012, the SERP was closed to new participants.
In February 2013, the Company announced changes to the Pension Plan and SERP whereby eligible employees no longer earn future pension service credits after December 31, 2013, with limited exceptions. All retirement benefits attributable to service in subsequent periods are provided through defined contribution plans.
Retirement expenses (income), excluding settlement charges, included the following components:
202520242023
(millions)
401(k) Qualified Defined Contribution Plan$88 $89 $85 
Non-Qualified Defined Contribution Plan1 1 1 
Pension Plan(39)(40)(38)
Supplementary Retirement Plan27 28 30 
Postretirement Obligations(4)(4)(3)
$73 $74 $75 
The Company estimates the service and interest cost components of net periodic benefit costs for the Pension Plan and SERP. This method uses a full yield curve approach in the estimation of these components of net periodic benefit costs. Under this approach, the Company applies discounting using individual spot rates from the yield curve composed of the rates of return from a portfolio of high quality corporate debt securities available at the measurement date. These spot rates align to each of the projected benefit obligation and service cost cash flows.
Defined Contribution Plans
The Company has a qualified plan that permits participating associates to defer eligible compensation up to the maximum limits allowable under the Internal Revenue Code. Beginning January 1, 2014, the Company has a non-qualified plan that permits participating associates to defer eligible compensation above the limits of the qualified plan. The Company contributes a matching percentage of employee contributions under both the qualified and non-qualified plans. Effective January 1, 2014, the Company's matching contribution to the qualified plan was enhanced for all participating employees, with limited exceptions. Prior to January 1, 2014, the matching contribution rate under the qualified plan was higher for those employees not eligible for the Pension Plan than for employees eligible for the Pension Plan.
The liability related to the qualified plan matching contribution, which is reflected in accounts payable and accrued liabilities on the Consolidated Balance Sheets, was $98 million at both January 31, 2026 and February 1, 2025. Expense related to matching contributions for the qualified plan amounted to $88 million for 2025, $89 million for 2024 and $85 million for 2023.
At January 31, 2026 and February 1, 2025, the liability under the non-qualified plan, which is reflected in other liabilities on the Consolidated Balance Sheets, was $42 million and $43 million, respectively. The liability related to the non-qualified plan matching contribution, which is reflected in accounts payable and accrued liabilities on the Consolidated Balance Sheets, was $1 million at both January 31, 2026 and February 1, 2025. Expense related to matching contributions for the non-qualified plan amounted to $1 million in each of 2025, 2024 and 2023. In connection with the non-qualified plan, the Company had mutual fund investments at January 31, 2026 and February 1, 2025 of $42 million and $43 million, respectively, which are included in prepaid expenses and other current assets on the Consolidated Balance Sheets.
The following provides a reconciliation of benefit obligations, plan assets and funded status of the Pension Plan and SERP as of January 31, 2026 and February 1, 2025:
Pension Plan SERP
2025202420252024
(millions)
Change in projected benefit obligation
Projected benefit obligation, beginning of year$1,391 $1,556 $425 $467 
Interest cost68 73 21 22 
Actuarial loss (gain)16 (57)9 (17)
Benefits paid(59)(58)(40)(47)
Settlement(189)(123)— — 
Projected benefit obligation, end of year1,227 1,391 415 425 
Changes in plan assets    
Fair value of plan assets, beginning of year1,881 2,011 — — 
Actual return on plan assets143 51 — — 
Company contributions— — 40 47 
Benefits paid(59)(58)(40)(47)
Settlement(189)(123)— — 
Fair value of plan assets, end of year1,776 1,881 — — 
Funded status at end of year$549 $490 $(415)$(425)
Amounts recognized in the Consolidated Balance Sheets at January 31, 2026 and February 1, 2025
    
Other assets$549 $490 $— $— 
Accounts payable and accrued liabilities— — (47)(43)
Other liabilities— — (368)(382)
$549 $490 $(415)$(425)
Amounts recognized in accumulated other comprehensive loss at January 31, 2026 and February 1, 2025
    
Net actuarial loss$434 $521 $130 $126 
Prior service cost— — 4 4 
$434 $521 $134 $130 
Net pension costs, settlement charges and other amounts recognized in other comprehensive loss for the Pension Plan and SERP included the following actuarially determined components:
Pension Plan SERP
202520242023202520242023
(millions)
Net Periodic Pension Cost
Interest cost$68 $73 $83 $21 $22 $23 
Expected return on assets(111)(116)(125)— — — 
Amortization of net actuarial loss4 3 4 6 6 7 
(39)(40)(38)27 28 30 
      
Settlement charges67 46 134 — — — 
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Income (Loss)      
Net actuarial (gain) loss(16)7 (3)10 (17)(19)
Amortization of net actuarial loss(4)(3)(4)(6)(6)(7)
Settlement charges(67)(46)(134)— — — 
(87)(42)(141)4 (23)(26)
Total recognized$(59)$(36)$(45)$31 $5 $4 
In 2025 and 2024, the Company incurred non-cash settlement charges of $67 million and $46 million, respectively. For 2025 and 2024, these charges related to the pro-rata recognition of net actuarial losses associated with the Company's Pension Plan and were the result of an increase in lump sum distributions associated with retiree distribution elections.
The following weighted average assumptions were used to determine the projected benefit obligations for the Pension Plan and SERP at January 31, 2026 and February 1, 2025:
Pension Plan SERP
2025202420252024
Discount rate5.23 %5.52 %5.28 %5.54 %
Rate of compensation increases3.00 %3.00 %— — 
Cash balance plan interest crediting rate5.00 %5.00 %— — 
The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan and SERP:
Pension Plan SERP
202520242023202520242023
Discount rate used to measure service cost5.77 %5.24 %
4.88% - 6.27%
— — — 
Discount rate used to measure interest cost5.23 %4.98 %
4.72% - 5.96%
5.21 %4.96 %4.71 %
Expected long-term return on plan assets5.50 %5.30 %5.30 %— — — 
Rate of compensation increases3.00 %3.50 %3.50 %— — — 
Cash balance plan interest crediting rate5.00 %5.00 %5.00 %— — — 
The Pension Plan and SERP's assumptions are evaluated annually, and at interim re-measurements if required, and updated as necessary. Due to settlement accounting and re-measurements occurring mid-year during 2023 for the Pension Plan, the discount rate used to measure service cost and the discount rate used to measure interest cost varied between periods. The table above shows the range of rates used to determine net periodic expense for the plans in 2023.
The discount rates used to determine the present value of the projected benefit obligation for the Pension Plan and SERP are based on a yield curve constructed from a portfolio of high quality corporate debt securities with various maturities. Each year's expected future benefit payments are discounted to their present value at the appropriate yield curve rate, thereby generating the overall discount rate for the projected benefit obligation.
The Company develops its expected long-term rate of return on plan asset assumption by evaluating input from several professional advisors taking into account the asset allocation of the portfolio and long-term asset class return expectations, as well as long-term inflation assumptions. Expected returns for each major asset class are considered along with their volatility and the expected correlations among them. These expectations are based upon historical relationships as well as forecasts of how future returns may vary from historical returns. Returns by asset class and correlations among asset classes are combined using the target asset allocation to derive an expected return for the portfolio as a whole. Long- term historical returns of the portfolio are also considered. Portfolio returns are calculated net of all expenses, therefore, the Company also analyzes expected costs and expenses, including investment management fees, administrative expenses, Pension Benefit Guaranty Corporation premiums and other costs and expenses. As of January 31, 2026, the Company increased the assumed annual long-term rate of return for the Pension Plan's assets to 6.00% based on expected future returns on the portfolio of assets.
The assets of the Pension Plan are managed by investment specialists with the primary objectives of payment of benefit obligations to Plan participants and an ultimate realization of investment returns over longer periods consistent with available market opportunities, a quality standard of investment and moderate levels of risk. The Pension Plan employs an investment approach whereby a mix of domestic and foreign equity securities, fixed income securities and other investments is used to maximize the long-term return on the assets of the Pension Plan for a prudent level of risk. Risks are mitigated through a liability matching strategy to hedge against interest rate and credit spread risk, asset diversification and the use of multiple investment managers. The target allocation for plan assets is currently 7% equity securities, 87% debt securities, 2% real estate and 4% private equities.
The Company generally employs investment managers to specialize in a specific asset class. These managers are chosen and monitored with the assistance of professional advisors, using criteria that include organizational structure, investment philosophy, investment process, performance compared to market benchmarks and peer groups.
The Company periodically conducts an analysis of the behavior of the Pension Plan's assets and liabilities under various economic and interest rate scenarios to ensure that the long-term target asset allocation is appropriate given the liabilities.
The fair values of the Pension Plan assets as of January 31, 2026 and February 1, 2025, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows:
Fair Value Category20252024
(millions)
Money market fundsLevel 1$114 $154 
Equity securities:   
U.S. pooled fundsLevel 173 65 
International pooled fundsLevel 125 26 
Fixed income securities:   
U.S. Treasury bondsLevel 2101 36 
Other Government bondsLevel 256 55 
Agency backed bondsLevel 22 2 
Corporate bondsLevel 2856 1,080 
Mortgage-backed securitiesLevel 241 40 
Asset-backed securitiesLevel 22 1 
Pooled fundsLevel 181 39 
Other types of investments:   
Derivatives in a positive positionLevel 214 13 
Derivatives in a negative positionLevel 2(2)(3)
Pooled funds (a)304 273 
Real estate (a)7 12 
Private equity (a)74 81 
Total$1,748 $1,874 
(a)Certain investments that are measured at fair value using the net asset value per share as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the fair value of plan assets.
Corporate bonds consist primarily of investment grade bonds of U.S. issuers from diverse industries.
The fair value of certain pooled funds including equity securities, real estate and private equity investments represents the reported net asset value of shares or underlying assets of the investment as a practical expedient to estimate fair value. U.S. and international equity pooled funds seek to provide long-term capital growth and income by investing in equity securities of companies located both in developed and emerging markets. There are generally no redemption restrictions or unfunded commitments related to these equity securities.
Real estate investments include several funds that seek risk-adjusted return by providing a stable, income-driven rate of return over the long term with high potential for growth of net investment income and appreciation of value. The real estate investments are diversified across property types and geographical areas primarily in the United States of America. Private equity investments have an objective of realizing aggregate long-term returns in excess of those available from investments in the public equity markets. Private equity investments generally consist of limited partnerships in the United States of America, Europe and Asia. Private equity and real estate investments are valued using fair values per the most recent financial reports provided by the investment sponsor, adjusted as appropriate for any lag between the date of the financial reports and the Company's reporting date.
Due to the nature of the underlying assets of the real estate and private equity investments, changes in market conditions and the economic environment may significantly impact the net asset value of these investments and, consequently, the fair value of the Pension Plan's investments. These investments are redeemable at net asset value to the extent provided in the documentation governing the investments. However, these redemption rights may be restricted in accordance with the governing documents. Redemption of these investments is subject to restrictions including lock-up periods where no redemptions are allowed, restrictions on redemption frequency and advance notice periods for redemptions.
The Company does not anticipate making funding contributions to the Pension Plan in 2026.
The following benefit payments are estimated to be paid from the Pension Plan and from the SERP:
Pension PlanSERP
(millions)
Fiscal year
2026$133 $47 
2027131 39 
2028129 41 
2029124 38 
2030115 36 
2031-2035478 161