Employee Benefits

9 Months Ended

Oct. 01, 2011

Note 7 Employee benefits

The Company sponsors a number of U.S. and foreign pension, other nonpension postretirement and postemployment plans to provide various benefits for its employees. These plans are described on pages 44 to 49 of the Company's 2010 Annual Report on Form 10-K. Components of Company plan benefit expense for the periods presented are included in the tables below.

Pension
		Quarter ended				Year-to-date period ended
(millions)		October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
Service cost	$	23	$	22	$	72	$	66
Interest cost		52		52		157		151
Expected return on plan assets		(91)		(82)		(277)		(238)
Amortization of unrecognized prior service cost		4		4		11		11
Recognized net loss		27		20		79		60
Settlement cost		3		-		7		-
Total pension expense	$	18	$	16	$	49	$	50

Other nonpension postretirement
		Quarter ended				Year-to-date period ended
(millions)		October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
Service cost	$	6	$	5	$	17	$	15
Interest cost		16		16		47		48
Expected return on plan assets		(22)		(16)		(66)		(48)
Amortization of unrecognized prior service cost		(1)		(1)		(2)		(2)
Recognized net loss		5		4		15		13
Total postretirement benefit expense	$	4	$	8	$	11	$	26

Postemployment
		Quarter ended				Year-to-date period ended
(millions)		October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
Service cost	$	2	$	1	$	5	$	4
Interest cost		1		1		3		3
Recognized net loss		1		1		3		3
Total postemployment benefit expense	$	4	$	3	$	11	$	10

Company contributions to employee benefit plans are summarized as follows:
					Nonpension
(millions)			Pension		postretirement		Total
Quarter ended:
	October 1, 2011	$	1	$	3	$	4
	October 2, 2010	$	6	$	3	$	9
Year-to-date period ended:
	October 1, 2011	$	176	$	11	$	187
	October 2, 2010	$	35	$	10	$	45
Full year:
	Fiscal year 2011 (projected)	$	180	$	15	$	195
	Fiscal year 2010 (actual)	$	350	$	293	$	643

Plan funding strategies may be modified in response to management's evaluation of tax deductibility, market conditions, and competing investment alternatives.