TJ Maxx 2014 Annual Report Download - page 84

Funded Plan
Fiscal Year Ended
Unfunded Plan
Fiscal Year Ended
In thousands
January 31,
2015
February 1,
2014
January 31,
2015
February 1,
2014
Change in plan assets:
Fair value of plan assets at beginning of year $ 944,801 $876,083 $—$—
Actual return on plan assets 107,240 64,769 ——
Employer contribution 150,000 30,000 1,279 2,705
Benefits paid (28,348) (23,431) (1,279) (2,705)
Expenses paid (2,945) (2,620) ——
Fair value of plan assets at end of year $1,170,748 $944,801 $—$—
Reconciliation of funded status:
Projected benefit obligation at end of year $1,309,889 $996,968 $82,238 $59,566
Fair value of plan assets at end of year 1,170,748 944,801 ——
Funded status – excess obligation $ 139,141 $ 52,167 $82,238 $59,566
Net liability recognized on consolidated balance sheets $ 139,141 $ 52,167 $82,238 $59,566
Amounts not yet reflected in net periodic benefit cost and
included in accumulated other comprehensive income (loss):
Plan amendment $ 3,067 $—$—$2
Accumulated actuarial losses 401,165 205,923 29,198 11,792
Amounts included in accumulated other comprehensive
income (loss) $ 404,232 $205,923 $29,198 $11,794
The consolidated balance sheets reflect the funded status of the plans with any unrecognized prior service cost
and actuarial gains and losses recorded in accumulated other comprehensive income (loss). The combined net
accrued liability of $221.4 million at January 31, 2015 is reflected on the balance sheet as of that date as a current
liability of $3.5 million and a long-term liability of $217.9 million.
The combined net accrued liability of $111.7 million at February 1, 2014 is reflected on the balance sheet as of
that date as a current liability of $3.4 million and a long-term liability of $108.3 million.
The estimated prior service cost that will be amortized from accumulated other comprehensive income (loss) into
net periodic benefit cost in fiscal 2016 for the funded plan is $377,000. The estimated net actuarial loss that will be
amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in fiscal 2016 is $33.8
million for the funded plan and $5.2 million for the unfunded plan.
The Society of Actuaries recently issued new mortality tables projecting longer life expectancies that will result in
higher postretirement benefit obligations for U.S. companies. We updated our mortality assumptions at January 31,
2015. The new mortality assumptions increased our funded plan’s benefit obligation by $59 million and the unfunded
plan’s benefit obligation by $4 million at January 31, 2015. Both of these amounts are included in actuarial gains/
losses presented in the change in the projected benefit obligation. Additional actuarial losses for fiscal 2015 are
primarily due to the reduction in discount rate.
TJX determined the assumed discount rate using the BOND: Link model in fiscal 2015 and fiscal 2014. TJX uses
the BOND: Link model as this model allows for the selection of specific bonds resulting in better matches in timing of
the plans’ expected cash flows. Presented below are weighted average assumptions for measurement purposes for
determining the obligation at the year-end measurement date:
Funded Plan
Fiscal Year Ended
Unfunded Plan
Fiscal Year Ended
January 31,
2015
February 1,
2014
January 31,
2015
February 1,
2014
Discount rate 4.00% 5.00% 3.70% 4.80%
Rate of compensation increase 4.00% 4.00% 6.00% 6.00%
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