TJ Maxx 2009 Annual Report Download - page 89

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TJX made aggregate cash contributions of $147.9 million in fiscal 2010, $2.8 million in fiscal 2009 and
$27.5 million in fiscal 2008 to the defined benefit retirement plan and to fund current benefit and expense
payments under the unfunded supplemental retirement plan. The cash contributions made in fiscal 2009 were
solely to fund current benefit and expense payments under the unfunded supplemental retirement plan. Through fiscal
2008, our funding policy for the funded plan was to fund any required contribution to the plan at the full funding
limitation and generally to fund contributions in excess of any required contribution so as to fully fund the accumulated
benefit obligation to the extent such contribution is allowed for tax purposes. As a result of voluntary funding
contributions made in prior years, there was no required funding during fiscal 2009. In fiscal 2009, the Pension
Protection Act (PPA) became effective and TJX’s policy became to fund, at a minimum, the amount required to
maintain a funded status of 75% to 80% of the pension liability as defined by the PPA. As a result of funding in fiscal
2010, we do not anticipate any required funding in fiscal 2011 for the defined benefit retirement plan. We anticipate
making contributions of $3.8 million to fund current benefit and expense payments under the unfunded supplemental
retirement plan in fiscal 2011.
Following are the components of net periodic benefit cost and other amounts recognized in other comprehensive
income related to our pension plans:
Dollars in thousands
January 30,
2010
January 31,
2009
January 26,
2008
January 30,
2010
January 31,
2009
January 26,
2008
Funded Plan
Fiscal Year Ended
Unfunded Plan
Fiscal Year Ended
(53 weeks) (53 weeks)
Net periodic pension cost:
Service cost $ 30,049 $ 30,406 $ 34,704 $ 876 $ 1,069 $ 992
Interest cost 31,320 28,711 24,632 2,923 3,366 2,867
Expected return on plan assets (28,222) (34,369) (32,259) ———
Settlement costs ———2,447 — 168
Amortization of prior service costs 15 43 57 125 124 125
Amortization of net actuarial losses 13,656 ——1,045 1,270 789
Net periodic pension cost $ 46,818 $ 24,791 $ 27,134 $ 7,416 $ 5,829 $ 4,941
Other Changes in Plan Assets and Benefit
Obligations Recognized in Other
Comprehensive Income
Net (gain) loss $ (6,866) $142,186 $ (482) $ 7,686 $ 2,252 $(3,420)
Settlement costs ———(2,447) ——
Amortization of net (loss) gain (13,656) ——(1,045) (1,270) (893)
Amortization of prior service cost (15) (44) (62) (125) (125) (135)
Total recognized in other comprehensive
income $(20,537) $142,142 $ (544) $ 4,069 $ 857 $(4,448)
Total recognized in net periodic benefit cost
and other comprehensive income $ 26,281 $166,933 $ 26,590 $11,485 $ 6,686 $ 493
Weighted average assumptions for expense
purposes:
Discount rate 6.50% 6.50% 6.00% 6.50% 6.25% 5.75%
Expected rate of return on plan assets 8.00% 8.00% 8.00% N/A N/A N/A
Rate of compensation increase 4.00% 4.00% 4.00% 6.00% 6.00% 6.00%
The unrecognized gains and losses in excess of 10% of the projected benefit obligation are amortized over the average
remaining service life of participants. In addition, for the unfunded plan, unrecognized actuarial gains and losses that
exceed 30% of the projected benefit obligation are fully recognized in net periodic pension cost.
F-26