Employee Benefits

3 Months Ended

Apr. 03, 2021

Retirement Benefits [Abstract]

Employee Benefits

Employee benefitsThe Company sponsors a number of U.S. and foreign pension plans as well as other nonpension postretirement and postemployment plans to provide various benefits for its employees. These plans are described within the footnotes to the Consolidated Financial Statements included in the Company’s 2020 Annual Report on Form 10-K. Components of Company benefit plan (income) expense for the periods presented are included in the tables below. Excluding the service cost component, these amounts are included within Other income (expense) in the Consolidated Statement of Income.

Pension

	Quarter ended
(millions)	April 3, 2021		March 28, 2020
Service cost	$	9	$	9
Interest cost	25		35
Expected return on plan assets	(78)		(85)
Amortization of unrecognized prior service cost	2		2
Recognized net (gain) loss	(9)		14
Total pension (income) expense	$	(51)	$	(25)

Other nonpension postretirement

	Quarter ended
(millions)	April 3, 2021		March 28, 2020
Service cost	$	3	$	3
Interest cost	5		8
Expected return on plan assets	(23)		(23)
Amortization of unrecognized prior service cost	(2)		(2)
Total postretirement benefit (income) expense	$	(17)	$	(14)

Postemployment

	Quarter ended
(millions)	April 3, 2021		March 28, 2020
Service cost	$	1	$	1
Recognized net (gain) loss	(1)		(1)
Total postemployment benefit expense	$	—	$	—

For the quarter ended April 3, 2021, the Company recognized a gain of $9 million, related to the remeasurement of a U.S. pension plan. For the quarter ended March 28, 2020, the Company recognized a loss of $14 million, related to the remeasurement of a U.S. pension plan. The remeasurements were the result of distributions that exceeded or are expected to exceed service and interest costs resulting in settlement accounting for that particular plan. The amount of the remeasurements recognized were due primarily to changes in the discount rate relative to the previous measurements.

Company contributions to employee benefit plans are summarized as follows:

(millions)	Pension		Nonpension postretirement		Total
Quarter ended:
April 3, 2021	$	1	$	1	$	2
March 28, 2020	$	3	$	3	$	6
Full year:
Fiscal year 2021 (projected)	$	6	$	19	$	25
Fiscal year 2020 (actual)	$	8	$	24	$	32

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