TJ Maxx 2015 Annual Report Download - page 85

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TJX made aggregate cash contributions of $55.7 million in fiscal 2016, $151.3 million in fiscal 2015 and $32.7
million in fiscal 2014 to the funded plan and to fund current benefit and expense payments under the unfunded plan.
TJX’s policy with respect to the funded plan is to fund, at a minimum, the amount required to maintain a funded
status of 80% of the applicable pension liability (the Funding Target pursuant to the Internal Revenue Code section
430) or such other amount as is sufficient to avoid restrictions with respect to the funding of nonqualified plans under
the Internal Revenue Code. We do not anticipate any required funding in fiscal 2017 for the funded plan. We
anticipate making contributions of $3.3 million to provide current benefits coming due under the unfunded plan in
fiscal 2017.
The following are the components of net periodic benefit cost and other amounts recognized in other
comprehensive income (loss) related to our pension plans:
Funded Plan
Fiscal Year Ended
Unfunded Plan
Fiscal Year Ended
Dollars in thousands
January 30,
2016
January 31,
2015
February 1,
2014
January 30,
2016
January 31,
2015
February 1,
2014
Net periodic pension cost:
Service cost $ 50,080 $ 40,481 $ 44,623 $ 1,562 $ 1,398 $ 1,716
Interest cost 51,710 49,522 44,654 3,033 3,001 2,447
Expected return on plan assets (78,042) (65,187) (60,474) ———
Amortization of prior service cost 377 ———23
Amortization of net actuarial loss 33,146 13,848 28,070 3,958 2,146 2,884
Total expense $ 57,271 $ 38,664 $ 56,873 $ 8,553 $ 6,547 $ 7,050
Other changes in plan assets and benefit
obligations recognized in other
comprehensive income:
Net (gain) loss $(19,731) $209,091 $ (89,265) $ 3,806 $19,552 $ (2,925)
Amortization of net (loss) (33,146) (13,848) (28,070) (3,958) (2,146) (2,884)
Amortization of prior service cost (377) ———(2) (3)
Plan amendment —3,067 — ———
Total recognized in other comprehensive
income (loss) $(53,254) $198,310 $(117,335) $ (152) $17,404 $ (5,812)
Total recognized in net periodic benefit
cost and other comprehensive income
(loss) $ 4,017 $236,974 $ (60,462) $ 8,401 $23,951 $ 1,238
Weighted average assumptions for
expense purposes:
Discount rate 4.00% 5.00% 4.40% 3.70% 4.80% 4.00%
Expected rate of return on plan assets 6.75% 7.00% 7.00% N/A N/A N/A
Rate of compensation increase 4.00% 4.00% 4.00% 6.00% 6.00% 6.00%
The rate of compensation increase presented for the unfunded plan (for measurement purposes and expense
purposes) is the rate assumed for participants eligible for the primary benefit. The assumed rate of compensation
increase for participants eligible for the alternative benefit under the unfunded plan is the same rate as assumed for
the funded plan.
TJX develops its long-term rate of return assumption by evaluating input from 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.
The unrecognized gains and losses in excess of 10% of the projected benefit obligation are amortized over the
average remaining service life of participants.
F-24