XML 34 R42.htm IDEA: XBRL DOCUMENT v2.4.0.6
Pension, Retiree Medical and Retiree Savings Plans (Tables)
 12 Months Ended
Dec. 29, 2012
Compensation and Retirement Disclosure [Abstract]  
Funded status of pension plans
The following chart summarizes the balance sheet impact, as well as benefit obligations, assets, and funded status associated with our U.S. pension plans and significant International pension plans.  The actuarial valuations for all plans reflect measurement dates coinciding with our fiscal year ends.

 
 
U.S. Pension Plans
 
International Pension Plans
 
 
2012
 
2011
 
2012
 
2011
Change in benefit obligation
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
 
$
1,381

 
$
1,108

 
$
187

 
$
187

Service cost
 
26

 
24

 
2

 
5

Interest cost
 
66

 
64

 
8

 
10

Participant contributions
 
—

 
—

 
1

 
1

Plan amendments
 
5

 
—

 
—

 
—

Curtailments
 
(10
)
 
(7
)
 
—

 
(10
)
PBO reduction in excess of settlement payments
 
(74
)
 
—

 
—

 
—

Special termination benefits
 
3

 
5

 
—

 
—

Exchange rate changes
 
—

 
—

 
5

 
1

Benefits paid
 
(14
)
 
(11
)
 
(4
)
 
(2
)
Settlement payments(a)
 
(278
)
 
(29
)
 
—

 
—

Actuarial (gain) loss
 
185

 
227

 
(6
)
 
(5
)
Benefit obligation at end of year
 
$
1,290

 
$
1,381

 
$
193

 
$
187

Change in plan assets
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
$
998

 
$
907

 
$
183

 
$
164

Actual return on plan assets
 
144

 
83

 
21

 
10

Employer contributions
 
100

 
53

 
19

 
10

Participant contributions
 
—

 
—

 
1

 
1

Settlement payments(a)
 
(278
)
 
(29
)
 
—

 
—

Benefits paid
 
(14
)
 
(11
)
 
(4
)
 
(2
)
Exchange rate changes
 
—

 
—

 
6

 
—

Administrative expenses
 
(5
)
 
(5
)
 
—

 
—

Fair value of plan assets at end of year
 
$
945

 
$
998

 
$
226

 
$
183

 
Funded status at end of year
 
$
(345
)
 
$
(383
)
 
$
33

 
$
(4
)
Amounts recognized in the Consolidated Balance Sheet
Amounts recognized in the Consolidated Balance Sheet:
 
 
U.S. Pension Plans
 
International Pension Plans
 
 
2012
 
2011
 
2012
 
2011
Prepaid benefit asset - non-current
 
$
—

 
$
—

 
$
33

 
$
8

Accrued benefit liability – current
 
(19
)
 
(14
)
 
—

 
—

Accrued benefit liability – non-current
 
(326
)
 
(369
)
 
—

 
(12
)
 
 
$
(345
)
 
$
(383
)
 
$
33

 
$
(4
)
Amounts recognized as a loss in Accumulated Other Comprehensive Income
Losses recognized in Accumulated Other Comprehensive Income:
 
 
U.S. Pension Plans
 
International Pension Plans
 
 
2012
 
2011
 
2012
 
2011
Actuarial net loss
 
$
421

 
$
540

 
$
14

 
$
30

Prior service cost
 
7

 
3

 
—

 
—

 
 
$
428

 
$
543

 
$
14

 
$
30
Pension plans with an accumulated benefit obligation in excess of pan assets
Information for pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
U.S. Pension Plans
 
International Pension Plans
 
 
2012
 
2011
 
2012
 
2011
Projected benefit obligation
 
$
1,290

 
$
1,381

 
$
—

 
$
—

Accumulated benefit obligation
 
1,239

 
1,327

 
—

 
—

Fair value of plan assets
 
945

 
998

 
—

 
—
Pension plans with a projected benefit obligation in excess of plan assets
Information for pension plans with a projected benefit obligation in excess of plan assets:
 
 
U.S. Pension Plans
 
International Pension Plans
 
 
2012
 
2011
 
2012
 
2011
Projected benefit obligation
 
$
1,290

 
$
1,381

 
$
—

 
$
99

Accumulated benefit obligation
 
1,239

 
1,327

 
—

 
87

Fair value of plan assets
 
945

 
998

 
—

 
87
Components of net periodic benefit cost
Components of net periodic benefit cost:
 
 
U.S. Pension Plans
 
International Pension Plans
Net periodic benefit cost
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Service cost
 
$
26

 
$
24

 
$
25

 
$
2

 
$
5

 
$
6

Interest cost
 
66

 
64

 
62

 
8

 
10

 
9

Amortization of prior service cost(a)
 
1

 
1

 
1

 
—

 
—

 
—

Expected return on plan assets
 
(71
)
 
(71
)
 
(70
)
 
(11
)
 
(12
)
 
(9
)
Amortization of net loss
 
63

 
31

 
23

 
1

 
2

 
2

Net periodic benefit cost
 
$
85

 
$
49

 
$
41

 
$
—

 
$
5

 
$
8

Additional loss recognized due to:
Settlements(b)
 
$
89

 
$
—

 
$
3

 
$
—

 
$
—

 
$
—

Special termination benefits(c)
 
$
3

 
$
5

 
$
1

 
$
—

 
$
—

 
$
—


(a)
Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

(b)
Settlement losses result from benefit payments exceeding the sum of the service cost and interest cost for each plan during the year. See Note 4 for discussion of the settlement payments and settlement loss related to the U.S. Plan's deferred vested benefit project.

(c)
Special termination benefits primarily related to the U.S. business transformation measures taken in 2012, 2011 and 2010.
Pension losses in accumulated other comprehensive income (loss)
Pension (gains) losses in Accumulated other comprehensive income (loss):
 
 
U.S. Pension Plans
 
International Pension Plans
 
 
2012
 
2011
 
2012
 
2011
Beginning of year
 
$
543

 
$
363

 
$
30

 
$
46

Net actuarial (gain) loss
 
117

 
219

 
(15
)
 
(5
)
Curtailments
 
(10
)
 
(7
)
 
—

 
(10
)
Amortization of net loss
 
(63
)
 
(31
)
 
(1
)
 
(2
)
Amortization of prior service cost
 
(1
)
 
(1
)
 
—

 
—

Prior service cost
 
5

 
—

 
—

 
—

PBO reduction in excess of settlement payment
 
(74
)
 
—

 
—

 
—

Settlement charges
 
(89
)
 
—

 
—

 
—

Exchange rate changes
 
—

 
—

 
—

 
1

End of year
 
$
428

 
$
543

 
$
14

 
$
30
Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost
Weighted-average assumptions used to determine benefit obligations at the measurement dates:
 
 
U.S. Pension Plans
 
International Pension Plans
 
 
2012
 
2011
 
2012
 
2011
Discount rate
 
4.40
%
 
4.90
%
 
4.70
%
 
4.75
%
Rate of compensation increase
 
3.75
%
 
3.75
%
 
3.70
%
 
3.85
%

Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
 
 
U.S. Pension Plans
 
International Pension Plans
 
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Discount rate
 
4.90
%
 
5.90
%
 
6.30
%
 
4.75
%
 
5.40
%
 
5.50
%
Long-term rate of return on plan assets
 
7.25
%
 
7.75
%
 
7.75
%
 
5.55
%
 
6.64
%
 
6.66
%
Rate of compensation increase
 
3.75
%
 
3.75
%
 
3.75
%
 
3.85
%
 
4.41
%
 
4.42
%
Fair values of pension plan assets
The fair values of our pension plan assets at December 29, 2012 by asset category and level within the fair value hierarchy are as follows:

 
 
U.S. Pension
Plans
 
International
Pension Plans
Level 1:
 
 
 
 
Cash(a)
 
$
—

 
$
9

Level 2:
 
 
 
 
Cash Equivalents(a)
 
42

 
—

Equity Securities – U.S. Large cap(b)
 
290

 
—

Equity Securities – U.S. Mid cap(b)
 
49

 
—

Equity Securities – U.S. Small cap(b)
 
49

 
—

Equity Securities – Non-U.S.(b)
 
100

 
131

Fixed Income Securities – U.S. Corporate(b)
 
247

 
—

Fixed Income Securities – Non-U.S. Corporate(b)
 
—

 
33

Fixed Income Securities – U.S. Government and Government Agencies(c)
 
153

 
—

Fixed Income Securities – Other(d)
 
30

 
16

Other Investments(b)
 
—

 
37

Total fair value of plan assets(e)
 
$
960

 
$
226


(a)
Short-term investments in money market funds

(b)
Securities held in common trusts

(c)
Investments held directly by the Plan

(d)
Includes securities held in common trusts and investments held directly by the Plan

(e)
Excludes net payable of $15 million in the U.S. for purchases of assets included in the above that were settled after December 29, 2012
Expected benefit payments
The benefits expected to be paid in each of the next five years and in the aggregate for the five years thereafter are set forth below:

Year ended:
 
U.S.
Pension Plans
 
International
Pension Plans
2013
 
$
87

 
$
1

2014
 
54

 
1

2015
 
55

 
1

2016
 
55

 
1

2017
 
55

 
1

2018 - 2022
 
306

 
6