Retirement Benefit Plans (Tables)

12 Months Ended

Apr. 26, 2019

The change in benefit obligation and funded status of the Company’s U.S. and Non-U.S. pension benefits are as follows:



	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Fiscal Year						Fiscal Year
(in millions)	2019			2018			2019			2018
Accumulated benefit obligation at end of year:	$	3,121		$	2,943		$	1,621		$	1,580
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	3,202		$	3,232		$	1,791		$	1,734
Service cost	109			116			59			67
Interest cost	129			117			30			28
Employee contributions	—			—			12			12
Plan curtailments and settlements	—			(168		)	(5		)	(8		)
Actuarial loss (gain)	54			12			119			(74		)
Benefits paid	(100		)	(107		)	(49		)	(51		)
Currency exchange rate changes and other	10			—			(125		)	146
Divestiture	—			—			—			(63		)
Projected benefit obligation at end of year	$	3,404		$	3,202		$	1,832		$	1,791
Change in plan assets:
Fair value of plan assets at beginning of year	$	2,661		$	2,479		$	1,404		$	1,235
Actual return on plan assets	64			243			62			67
Employer contributions	93			215			78			90
Employee contributions	—			—			12			13
Plan settlements	—			(168		)	(3		)	(4		)
Benefits paid	(100		)	(108		)	(49		)	(51		)
Currency exchange rate changes and other	10			—			(95		)	108
Divestiture	—			—			—			(54		)
Fair value of plan assets at end of year	$	2,728		$	2,661		$	1,409		$	1,404
Funded status at end of year:
Fair value of plan assets	$	2,728		$	2,661		$	1,409		$	1,404
Benefit obligations	3,404			3,202			1,832			1,791
Underfunded status of the plans	(676		)	(541		)	(423		)	(387		)
Recognized liability	$	(676	)	$	(541	)	$	(423	)	$	(387	)
Amounts recognized on the consolidated balance sheets consist of:
Non-current assets	$	—		$	—		$	31		$	16
Current liabilities	(18		)	(17		)	(8		)	(8		)
Non-current liabilities	(658		)	(524		)	(446		)	(395		)
Recognized liability	$	(676	)	$	(541	)	$	(423	)	$	(387	)
Amounts recognized in accumulated other comprehensive loss:
Prior service cost (benefit)	$	2		$	2		$	(7	)	$	(9	)
Net actuarial loss	1,216			1,088			452			380
Ending balance	$	1,218		$	1,090		$	445		$	371

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

U.S. and non-U.S. plans with accumulated benefit obligations in excess of plan assets consist of the following:



	Fiscal Year
(in millions)	2019		2018
Accumulated benefit obligation	$	4,683	$	4,110
Projected benefit obligation	4,822		4,282
Plan assets at fair value	3,829		3,472

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

Plans with projected benefit obligations in excess of plan assets consist of the following:



	Fiscal Year
(in millions)	2019		2018
Projected benefit obligation	$	4,963	$	4,736
Plan assets at fair value	3,833		3,793

Schedule of Net Benefit Costs

The net periodic benefit cost of the plans include the following components:



	U.S. Pension Benefits									Non-U.S. Pension Benefits
	Fiscal Year									Fiscal Year
(in millions)	2019			2018			2017			2019			2018			2017
Service cost	$	109		$	116		$	117		$	59		$	67		$	70
Interest cost	129			117			109			30			28			26
Expected return on plan assets	(215		)	(205		)	(195		)	(57		)	(53		)	(48		)
Amortization of prior service cost	1			1			1			(1		)	—			(1		)
Amortization of net actuarial loss	76			82			88			12			18			17
Settlement loss (gain)	—			16			—			(2		)	—			—
Special termination benefits	—			—			60			—			—			—
Net periodic benefit cost	$	100		$	127		$	180		$	41		$	60		$	64

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

The other changes in plan assets and projected benefit obligations recognized in accumulated other comprehensive loss for fiscal year 2019 are as follows:



(in millions)	U.S. Pension Benefits			Non-U.S. Pension Benefits
Net actuarial gain	$	205		$	113
Amortization of prior service cost	(1		)	1
Amortization of net actuarial loss	(76		)	(12		)
Effect of exchange rates	—			(29		)
Total recognized in accumulated other comprehensive loss	$	128		$	73
Total recognized in net periodic benefit cost and accumulated other comprehensive loss	$	228		$	114

Schedule of Assumptions Used

The actuarial assumptions are as follows:



	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Fiscal Year						Fiscal Year
	2019		2018		2017		2019		2018		2017
Critical assumptions – projected benefit obligation:
Discount rate	3.90% - 4.20%		4.20% - 4.35%		3.70% - 4.30%		0.40% - 13.90%		0.70% - 11.00%		0.45% - 11.40%
Rate of compensation increase	3.90	%	3.90	%	3.90	%	2.87	%	2.88	%	2.89	%
Critical assumptions – net periodic benefit cost:
Discount rate – benefit obligation	4.20% - 4.30%		4.00% - 4.30%		3.55% - 4.30%		0.50% - 11.00%		0.45% - 11.40%		0.25% - 10.20%
Discount rate – service cost	4.10% - 4.40%		3.70% - 4.45%		3.60% - 4.45%		0.50% - 11.00%		0.20% - 11.40%		0.05% - 10.20%
Discount rate – interest cost	4.00% - 4.10%		3.45% - 3.80%		2.90% - 3.80%		0.50% - 11.00%		0.45% - 11.40%		0.30% - 10.20%
Expected return on plan assets	7.90	%	7.90	%	8.20	%	4.23	%	4.20	%	4.45	%
Rate of compensation increase	3.90	%	3.90	%	3.90	%	2.88	%	2.89	%	2.83	%

Schedule of Allocation of Plan Assets

The Company’s U.S. plans target asset allocations at April 26, 2019, compared to the U.S. plans actual asset allocations at April 26, 2019 and April 27, 2018 by asset category, are as follows:



U.S. Plans
	Target Allocation		Actual Allocation
	April 26, 2019		April 26, 2019		April 27, 2018
Asset Category:
Equity securities	49	%	50	%	49	%
Debt securities	32		34		32
Other	19		16		19
Total	100	%	100	%	100	%

Fair Value Measurements, Retirement Benefit Plan Assets

Non-U.S. Pension Benefits



	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 26, 2019		Level 1		Level 2		Level 3		Investments Measured at Net Asset Value
Registered investment companies	$	1,368	$	—	$	—	$	—	$	1,368
Insurance contracts	41		—		—		41		—
	$	1,409	$	—	$	—	$	41	$	1,368



	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 27, 2018		Level 1		Level 2		Level 3		Investments Measured at Net Asset Value
Registered investment companies	$	1,362	$	—	$	—	$	—	$	1,362
Insurance contracts	42		—		—		42		—
	$	1,404	$	—	$	—	$	42	$	1,362

The following tables provide information by level for the retirement benefit plan assets that are measured at fair value, as defined by U.S. GAAP. See Note 1 for discussion of the fair value measurement terms of Levels 1, 2, and 3. In accordance with authoritative guidance adopted in fiscal year 2017, certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are not presented within the fair value hierarchy. The fair value amounts presented for these investments are intended to permit reconciliation to the total fair value of plan assets at April 26, 2019 and April 27, 2018.

U.S. Pension Benefits



	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 26, 2019		Level 1		Level 2		Level 3		Investments Measured at Net Asset Value
Short-term investments	$	61	$	61	$	—	$	—	$	—
U.S. government securities	228		228		—		—		—
Corporate debt securities	144		—		144		—		—
Equity commingled trusts	1,365		—		—		—		1,365
Fixed income commingled trusts	301		—		—		—		301
Partnership units	629		—		—		629		—
	$	2,728	$	289	$	144	$	629	$	1,666



	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 27, 2018		Level 1		Level 2		Level 3		Investments Measured at Net Asset Value
Short-term investments	$	181	$	181	$	—	$	—	$	—
U.S. government securities	181		181		—		—		—
Corporate debt securities	142		—		142		—		—
Equity commingled trusts	1,322		—		—		—		1,322
Fixed income commingled trusts	298		—		—		—		298
Partnership units	537		—		—		537		—
	$	2,661	$	362	$	142	$	537	$	1,620

Fair Value, Retirement Benefit Plan Assets, Unobservable Input Reconciliation

The following tables provide a reconciliation of the beginning and ending balances of U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3):



(in millions)	Partnership Units
April 27, 2018	$	537
Total realized losses	(1		)
Total unrealized gains	52
Purchases and sales, net	41
April 26, 2019	$	629



(in millions)	Partnership Units
April 28, 2017	$	468
Total realized losses	(42		)
Total unrealized gains	141
Purchases and sales, net	(30		)
April 27, 2018	$	537

The following tables provide a reconciliation of the beginning and ending balances of non-U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3):



(in millions)	Insurance Contracts
April 27, 2018	$	42
Total unrealized gains	1
Purchases and sales, net	1
Currency exchange rate changes	(3		)
April 26, 2019	$	41



(in millions)	Insurance Contracts
April 28, 2017	$	44
Total unrealized gains	2
Purchases and sales, net	(7		)
Currency exchange rate changes	3
April 27, 2018	$	42

Schedule of Expected Benefit Payments

Retiree benefit payments, which reflect expected future service, are anticipated to be paid as follows:



(in millions)	Gross Payments
Fiscal Year	U.S. Pension Benefits		Non-U.S. Pension Benefits
2020	$	115	$	51
2021	123		49
2022	133		51
2023	144		57
2024	154		56
2025 – 2029	954		350
Total	$	1,623	$	614