Retirement Benefit Plans
 6 Months Ended
Jul. 30, 2011
Retirement Benefit Plans  
Retirement Benefit Plans

Note 8 – Retirement Benefit Plans

 

The components of net periodic benefit costs for our non-contributory qualified defined benefit pension plan (primary plan) and non-contributory supplemental pension plans for the three and six months ended July 30, 2011 and July 31, 2010 were as follows:

 

Pension Plans Net Periodic Benefit Expense

 

Pension Plans

 

 

 

Primary Plan

 

 

Supplemental

 

 

Total

 

($ in millions)

 

Three Months Ended

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

July 30,

 

 

July 31,

 

 

July 30,

 

 

July 31,

 

 

July 30,

 

 

July 31,

 

 

 

2011

 

 

2010

 

 

2011

 

 

2010

 

 

2011

 

 

2010

 

Service cost

$

22

 

$

22

 

$

-

 

$

 -

 

$

22

 

$

22

 

Interest cost

 

62

 

 

62

 

 

3

 

 

3

 

 

65

 

 

65

 

Expected return on plan assets

 

(97

)

 

(88

) 

 

-

 

 

-

 

 

(97

)

 

(88

) 

Net amortization

 

34

 

 

59

 

 

4

 

 

5

 

 

38

 

 

64

 

Net periodic benefit expense

$

21

 

$

55

 

$

7

 

$

 8

 

$

28

 

$

63

 

 

 

 

 

Pension Plans

 

 

 

Primary Plan

 

 

Supplemental

 

 

Total

 

($ in millions)

 

Six Months Ended

 

 

Six Months Ended

 

 

Six Months Ended

 

 

 

July 30,

 

 

July 31,

 

 

July 30,

 

 

July 31,

 

 

July 30,

 

 

July 31,

 

 

 

2011

 

 

2010

 

 

2011

 

 

2010

 

 

2011

 

 

2010

 

Service cost

$

44

 

$

44

 

$

1

 

$

1

 

$

45

 

$

45

 

Interest cost

 

124

 

 

124

 

 

6

 

 

7

 

 

130

 

 

131

 

Expected return on plan assets

 

(193

)

 

(176

) 

 

-

 

 

-

 

 

(193

)

 

(176

) 

Net amortization

 

68

 

 

118

 

 

7

 

 

9

 

 

75

 

 

127

 

Net periodic benefit expense

$

43

 

$

110

 

$

14

 

$

17

 

$

57

 

$

127

 

 

 

Postretirement Health and Welfare Plan Net Periodic (Income)

 

 

 

Postretirement Health and Welfare Plan

 

($ in millions)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

 

July 30,

 

 

July 31,

 

 

July 30,

 

 

July 31,

 

 

 

 

2011

 

 

2010

 

 

2011

 

 

2010

 

Service cost

 

$

-

 

$

 -

 

$

-

 

$

 -

 

Interest cost

 

 

-

 

 

-

 

 

-

 

 

-

 

Expected return on plan assets

 

 

-

 

 

-

 

 

-

 

 

-

 

Net amortization

 

 

(7

) 

 

(6

)

 

(13

)

 

(12

)

Net periodic (income)

 

$

(7

) 

$

(6

)

$

(13

)

$

(12

)

 

 

 

Defined Contribution Plans

Our defined contribution plans include a qualified Savings, Profit-Sharing and Stock Ownership Plan (a 401(k) plan), which includes a non-contributory retirement account, and a non-qualified contributory unfunded mirror savings plan offered to certain management associates. Total expense for our defined contribution plans for the second quarters of 2011 and 2010 was $16 million and $12 million, respectively, and is predominantly included in SG&A expense on the Consolidated Statements of Operations.  Total expense for the first halves of 2011 and 2010 was $32 million and $26 million, respectively.

 

Employer Contributions

Our policy with respect to funding the primary plan is to fund at least the minimum required by the Employee Retirement Income Security Act of 1974 (ERISA) rules, as amended by the Pension Protection Act of 2006, and not more than the maximum amount deductible for tax purposes. Based on the funded status of our primary plan, we were not required to make a mandatory cash contribution to the primary plan under ERISA rules in 2010 or 2011.