Pension and Other Benefit Programs (Tables)

12 Months Ended

Sep. 29, 2018

Benefit Obligations, Assets, Funded Status and Balance Sheet Impacts Associated with Pension and Postretirement Medical Benefit Plans based upon Actuarial Valuations

The following chart summarizes the benefit obligations, assets, funded status and balance sheet impacts associated with the defined benefit pension and postretirement medical benefit plans:



	Pension Plans						Postretirement Medical Plans
	September 29, 2018			September 30, 2017			September 29, 2018			September 30, 2017
Projected benefit obligations
Beginning obligations	$	(14,532	)	$	(14,480	)	$	(1,746	)	$	(1,759	)
Service cost	(350		)	(368		)	(10		)	(11		)
Interest cost	(489		)	(447		)	(60		)	(56		)
Actuarial gain	416			343			166			42
Plan amendments and other	(12		)	(22		)	(10		)	(9		)
Benefits paid	467			442			51			47
Ending obligations	$	(14,500	)	$	(14,532	)	$	(1,609	)	$	(1,746	)
Fair value of plans’ assets
Beginning fair value	$	12,325		$	10,401		$	696		$	614
Actual return on plan assets	579			1,056			34			61
Contributions	335			1,348			45			61
Benefits paid	(467		)	(442		)	(51		)	(47		)
Expenses and other	(44		)	(38		)	7			7
Ending fair value	$	12,728		$	12,325		$	731		$	696

Underfunded status of the plans	$	(1,772	)	$	(2,207	)	$	(878	)	$	(1,050	)
Amounts recognized in the balance sheet
Non-current assets	$	113		$	70		$	—		$	—
Current liabilities	(51		)	(46		)	—			—
Non-current liabilities	(1,834		)	(2,231		)	(878		)	(1,050		)
	$	(1,772	)	$	(2,207	)	$	(878	)	$	(1,050	)

Net Periodic Benefit Cost

The components of net periodic benefit cost are as follows:



	Pension Plans									Postretirement Medical Plans
	2018			2017			2016			2018			2017			2016
Service cost	$	350		$	368		$	318		$	10		$	11		$	11
Interest cost	489			447			458			60			56			61
Expected return on plan assets	(901		)	(874		)	(747		)	(53		)	(49		)	(45		)
Amortization of prior year service costs	13			12			14			—			—			(1		)
Recognized net actuarial loss	348			405			242			14			17			8
Net periodic benefit cost	$	299		$	358		$	285		$	31		$	35		$	34

Key Assumptions



Key assumptions are as follows:
	Pension Plans						Postretirement Medical Plans
	2018		2017		2016		2018		2017		2016
Discount rate used to determine the fiscal year end benefit obligation	4.31	%	3.88	%	3.73	%	4.31	%	3.88	%	3.73	%
Discount rate used to determine the interest cost component of net periodic benefit cost	3.46	%	3.18	%	3.81	%	3.49	%	3.18	%	3.81	%
Rate of return on plan assets	7.50	%	7.50	%	7.50	%	7.50	%	7.50	%	7.50	%
Weighted average rate of compensation increase to determine the fiscal year end benefit obligation	3.20	%	2.90	%	3.00	%	n/a		n/a		n/a
Year 1 increase in cost of benefits	n/a		n/a		n/a		7.00	%	7.00	%	7.00	%
Rate of increase to which the cost of benefits is assumed to decline (the ultimate trend rate)	n/a		n/a		n/a		4.25	%	4.25	%	4.25	%
Year that the rate reaches the ultimate trend rate	n/a		n/a		n/a		2032		2031		2030

Accumulated Other Comprehensive Loss, Before Tax, Not yet Recognized in Net Periodic Benefit Cost

AOCI, before tax, as of September 29, 2018 consists of the following amounts that have not yet been recognized in net periodic benefit cost:



	Pension Plans			Postretirement Medical Plans			Total
Prior service cost	$	(52	)	$	—		$	(52	)
Net actuarial loss	(4,184		)	(36		)	(4,220		)
Total amounts included in AOCI	(4,236		)	(36		)	(4,272		)
Prepaid / (accrued) pension cost	2,464			(842		)	1,622
Net balance sheet liability	$	(1,772	)	$	(878	)	$	(2,650	)

Amounts included in Accumulated Other Comprehensive Loss, Before Tax, Expected to be Recognized as Components of Net Periodic Benefit Cost

Amounts included in AOCI, before tax, as of September 29, 2018 that are expected to be recognized as components of net periodic benefit cost during fiscal 2019 are:



	Pension Plans			Postretirement Medical Plans		Total
Prior service cost	$	(12	)	$	—	$	(12	)
Net actuarial loss	(260		)	—		(260		)
Total	$	(272	)	$	—	$	(272	)

Plan Assets Investment Policy Ranges for Major Asset Classes

The investment policy ranges for the major asset classes are as follows:



Asset Class	Minimum		Maximum

Equity investments	30	%	60	%
Fixed income investments	20	%	40	%
Alternative investments	10	%	30	%
Cash & money market funds	0	%	10	%

Defined Benefit Plan Assets Measured at Fair Value

The Company’s defined benefit plan assets are summarized by level in the following tables:



	As of September 29, 2018
Description	Level 1		Level 2			Total		Plan Asset Mix

Cash	$	57	$	—		$	57	—	%
Common and preferred stocks⁽¹⁾	3,023		—			3,023		22	%
Mutual funds	800					800		6	%
Government and federal agency bonds, notes and MBS	2,019		488			2,507		19	%
Corporate bonds	—		573			573		4	%
Other mortgage- and asset-backed securities	—		86			86		1	%
Derivatives and other, net	3		(1		)	2		—	%
Total investments in the fair value hierarchy	$	5,902	$	1,146		$	7,048

Assets valued at NAV as a practical expedient:
Common collective funds						2,778		21	%
Alternative investments						2,363		18	%
Money market funds and other						1,270		9	%
Total investments at fair value						$	13,459	100	%



	As of September 30, 2017
Description	Level 1		Level 2		Total		Plan Asset Mix

Cash	$	88	$	—	$	88	1	%
Common and preferred stocks⁽¹⁾	2,974		—		2,974		23	%
Mutual funds	771		—		771		6	%
Government and federal agency bonds, notes and MBS	1,870		548		2,418		19	%
Corporate bonds	—		579		579		4	%
Other mortgage- and asset-backed securities	—		99		99		1	%
Derivatives and other, net	—		14		14		—	%
Total investments in the fair value hierarchy	$	5,703	$	1,240	$	6,943

Assets valued at NAV as a practical expedient:
Common collective funds					2,727		21	%
Alternative investments					2,201		17	%
Money market funds and other					1,150		9	%
Total investments at fair value					$	13,021	100	%


⁽¹⁾	Includes 2.8 million shares of Company common stock valued at $332 million (2% of total plan assets) and 2.9 million shares valued at $282 million (2% of total plan assets) at September 29, 2018 and September 30, 2017, respectively.

Estimated Future Benefit Payments

The following table presents estimated future benefit payments for the next ten fiscal years:



	Pension Plans		Postretirement Medical Plans⁽¹⁾
2019	$	534	$	51
2020	544		54
2021	579		58
2022	618		63
2023	656		68
2024 – 2028	3,827		404


⁽¹⁾	Estimated future benefit payments are net of expected Medicare subsidy receipts of $80 million

Long Term Rates of Return by Asset Class

The following long-term rates of return by asset class were considered in setting the long-term rate of return on plan assets assumption:



Equity Securities	7	%	to	11	%
Debt Securities	3	%	to	5	%
Alternative Investments	7	%	to	12	%

One Percentage Point (ppt) Change on Projected Benefit Obligations

A one percentage point (ppt) change in the key assumptions would have the following effects on the projected benefit obligations for pension and postretirement medical plans as of September 29, 2018 and on cost for fiscal 2019:



	Discount Rate						Expected Long-Term Rate of Return On Assets			Assumed Healthcare Cost Trend Rate
Increase/(decrease)	Benefit Expense			Projected Benefit Obligations			Benefit Expense			Net Periodic Postretirement Medical Cost			Projected Benefit Obligations
1 ppt decrease	$	241		$	2,680		$	135		$	(23	)	$	(213	)
1 ppt increase	(229		)	(2,275		)	(135		)	30			283

Contribution into Multiemployer Pension Plans and Health and Welfare Plans

The following table sets forth our contributions to multiemployer pension and health and welfare benefit plans that were expensed during the fiscal years 2018, 2017 and 2016, respectively:



	2018		2017		2016
Pension plans	$	144	$	127	$	126
Health & welfare plans	172		160		167
Total contributions	$	316	$	287	$	293