Pension and Other Postretirement Benefit Plans

9 Months Ended

Jul. 03, 2021

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits Plans

PENSIONS AND OTHER POSTRETIREMENT BENEFIT PLANS

The components of the net periodic cost for the pension and postretirement benefit plans for the three and nine months ended July 3, 2021 and June 27, 2020 are as follows (in millions):

	Pension Plans
	Three Months Ended				Nine Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Service cost	$	—	$	—	$	—	$	—
Interest cost	2		2		5		19
Expected return on plan assets	—		—		—		(15)
Amortization of:
Net actuarial loss	1		1		3		3
Prior service cost	1		1		1		1
Settlement (gain) loss	—		(6)		—		(112)
Net periodic cost (credit)	$	4	$	(2)	$	9	$	(104)

	Postretirement Benefit Plans
	Three Months Ended				Nine Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Interest cost	$	—	$	1	$	—	$	1
Amortization of prior service cost (credit)	—		—		(1)		(1)
Net periodic cost (credit)	$	—	$	1	$	(1)	$	—

Net periodic benefit cost, excluding the service cost component, was recorded in the Consolidated Condensed Statements of Income in Other, net.

During the second quarter of fiscal 2020, we recognized a one-time gain of $110 million related to the termination of two qualified pension plans and one multi-employer pension plan and recorded the amount in the Consolidated Condensed Statements of Income in Other, net. During the third quarter of fiscal 2020, we recognized an additional pretax gain of $6 million related to the termination of these pension plans and recorded the amount in the Consolidated Condensed Statements of Income in Other, net. The settlements of the two qualified plans through purchased annuities did not require any significant contributions. The plans have no remaining benefit obligation.