PENSION AND OTHER POSTRETIREMENT BENEFITS

6 Months Ended

Jul. 04, 2021

Retirement Benefits [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

NOTE 3. PENSIONS AND OTHER POSTRETIREMENT BENEFITS

We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement benefit (OPEB) plans. Contributions to these plans were as follows:

	Three months ended				Six months ended
In millions	July 4, 2021		June 28, 2020		July 4, 2021		June 28, 2020
Defined benefit pension contributions	$	12	$	10	$	54	$	66
OPEB payments, net	5		12		14		16
Defined contribution pension plans	17		18		52		52

During the remainder of 2021, we anticipate making $10 million in additional defined benefit pension contributions in the U.K. and $9 million in contributions to our U.S. non-qualified benefit plans. These contributions may be made from trusts or company funds either to increase pension assets or to make direct benefit payments to plan participants. We expect our 2021 annual net periodic pension cost to approximate $79 million.

The components of net periodic pension and OPEB costs under our plans were as follows:

	Pension
	U.S. Plans				U.K. Plans				OPEB
	Three months ended
In millions	July 4, 2021		June 28, 2020		July 4, 2021		June 28, 2020		July 4, 2021		June 28, 2020
Service cost	$	35	$	33	$	9	$	7	$	—	$	—
Interest cost	20		23		7		9		1		1
Expected return on plan assets	(50)		(48)		(22)		(18)		—		—
Amortization of prior service cost	—		1		1		—		—		—
Recognized net actuarial loss	12		10		8		9		—		—
Net periodic benefit cost	$	17	$	19	$	3	$	7	$	1	$	1

	Pension
	U.S. Plans				U.K. Plans				OPEB
	Six months ended
In millions	July 4, 2021		June 28, 2020		July 4, 2021		June 28, 2020		July 4, 2021		June 28, 2020
Service cost	$	70	$	67	$	17	$	14	$	—	$	—
Interest cost	39		47		15		18		2		3
Expected return on plan assets	(100)		(97)		(43)		(37)		—		—
Amortization of prior service cost	—		1		1		1		—		—
Recognized net actuarial loss	24		20		16		17		—		—
Net periodic benefit cost	$	33	$	38	$	6	$	13	$	2	$	3