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Pension, Retiree Medical and Retiree Savings Plans (Tables)
 12 Months Ended
Dec. 31, 2016
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 two significant U.S. pension plans.  The actuarial valuations for all plans reflect measurement dates coinciding with our fiscal year end.

 
 
2016
 
2015
Change in benefit obligation
 
 
 
 
Benefit obligation at beginning of year
 
$
1,134

 
$
1,301

Service cost
 
17

 
18

Interest cost
 
54

 
55

Plan amendments
 
4

 
28

Curtailments
 
(4
)
 
(2
)
Special termination benefits
 
3

 
1

Benefits paid
 
(26
)
 
(50
)
Settlement payments(a)
 
(260
)
 
(16
)
Actuarial (gain) loss
 
77

 
(196
)
Administrative expense
 
(6
)
 
(5
)
Benefit obligation at end of year
 
$
993

 
$
1,134

 
 
 
 
 
Change in plan assets
 
 
 
 
Fair value of plan assets at beginning of year
 
$
1,004

 
$
991

Actual return on plan assets
 
87

 
(10
)
Employer contributions
 
38

 
94

Settlement payments(a)
 
(260
)
 
(16
)
Benefits paid
 
(26
)
 
(50
)
Administrative expenses
 
(6
)
 
(5
)
Fair value of plan assets at end of year
 
$
837

 
$
1,004

 Funded status at end of year
 
$
(156
)
 
$
(130
)


(a)
For discussion of the settlement payments and settlement losses, see Note 5.
Amounts recognized in the Consolidated Balance Sheet
Amounts recognized in the Consolidated Balance Sheet:
 
 
2016
 
2015
Accrued benefit liability - current
 
$
(16
)
 
$
(13
)
Accrued benefit liability - non-current
 
(140
)
 
(117
)
 
 
$
(156
)
 
$
(130
)
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:
 
 
2016
 
2015
Projected benefit obligation
 
$
993

 
$
101

Accumulated benefit obligation
 
960

 
88

Fair value of plan assets
 
837

 
—
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:
 
 
2016
 
2015
Projected benefit obligation
 
$
993

 
$
1,134

Accumulated benefit obligation
 
960

 
1,088

Fair value of plan assets
 
837

 
1,004
Components of net periodic benefit cost Components of net periodic benefit cost:
Net periodic benefit cost
 
2016
 
2015
 
2014
Service cost
 
$
17

 
$
18

 
$
17

Interest cost
 
54

 
55

 
54

Amortization of prior service cost(a)
 
6


1


1

Expected return on plan assets
 
(65
)
 
(62
)
 
(56
)
Amortization of net loss
 
6

 
45

 
17

Net periodic benefit cost
 
$
18

 
$
57

 
$
33


Additional (gain) loss recognized due to:

Settlements(b)
 
$
32

 
$
5

 
$
6

Special termination benefits
 
$
3

 
$
1

 
$
3


(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 when benefit payments exceed the sum of the service cost and interest cost within a plan during the year.

Pension losses in accumulated other comprehensive income (loss)
Pension gains (losses) in AOCI:
 
 
2016
 
2015
Beginning of year
 
$
(170
)
 
$
(319
)
Net actuarial gain (loss)
 
(54
)
 
124

Curtailments
 
4

 
2

Amortization of net loss
 
6

 
45

Amortization of prior service cost
 
6

 
1

Prior service cost
 
(4
)
 
(28
)
Settlement charges
 
32

 
5

End of year
 
$
(180
)
 
$
(170
)
Schedule of Accumulated pre-tax losses recognized in Accumulated Other Comprehensive Income
Accumulated pre-tax losses recognized within AOCI:
 
 
2016
 
2015
Actuarial net loss
 
$
(150
)
 
$
(138
)
Prior service cost
 
(30
)
 
(32
)
 
 
$
(180
)
 
$
(170
)
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:
 
 
2016
 
2015
Discount rate
 
4.60
%
 
4.90
%
Rate of compensation increase
 
3.75
%
 
3.75
%

Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
 
 
2016
 
2015
 
2014
Discount rate
 
4.90
%
 
4.30
%
 
5.40
%
Long-term rate of return on plan assets
 
6.75
%
 
6.75
%
 
6.90
%
Rate of compensation increase
 
3.75
%
 
3.75
%
 
3.75
%
Fair values of pension plan assets The fair values of our pension plan assets at December 31, 2016 and December 26, 2015 by asset category and level within the fair value hierarchy are as follows:

 
 
2016
 
2015
Level 1:
 
 
 
 
Cash
 
$
2

 
$
3

Cash Equivalents(a)
 
12

 
9

Fixed Income Securities - U.S. Corporate(b)
 
172

 
221

Equity Securities – U.S. Large cap(b)
 
244

 
310

Equity Securities – U.S. Mid cap(b)
 
41

 
50

Equity Securities – U.S. Small cap(b)
 
43

 
51

Equity Securities – Non-U.S.(b)
 
83

 
100

Level 2:
 
 
 
 
 
 
 
 
 
Fixed Income Securities – U.S. Corporate(c)
 
76

 
68

Fixed Income Securities – U.S. Government and Government Agencies(d)
 
152

 
195

Fixed Income Securities – Other(d)
 
31

 
17

Total fair value of plan assets(e)
 
$
856

 
$
1,024



(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)
2016 and 2015 exclude net unsettled trade payables of $19 million and $20 million, respectively.
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:
 
 
2017
 
$
128

2018
 
45

2019
 
42

2020
 
43

2021
 
46

2022 - 2026
 
259