Employee Benefits

3 Months Ended

Apr. 01, 2023

Retirement Benefits [Abstract]

Employee Benefits

Employee benefits

The 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 2022 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 1, 2023		April 2, 2022
Service cost	$	6	$	9
Interest cost	44		29
Expected return on plan assets	(53)		(71)
Amortization of unrecognized prior service cost	2		2
Recognized net gain	—		(21)
Total pension income	$	(1)	$	(52)

Other nonpension postretirement

	Quarter ended
(millions)	April 1, 2023		April 2, 2022
Service cost	$	2	$	3
Interest cost	10		6
Expected return on plan assets	(24)		(28)
Amortization of unrecognized prior service cost	(2)		(2)
Total postretirement benefit income	$	(14)	$	(21)

Postemployment

	Quarter ended
(millions)	April 1, 2023		April 2, 2022
Service cost	$	1	$	1
Recognized net experience gain	(1)		(1)
Total postemployment expense	$	—	$	—

For the quarter ended April 2, 2022, the Company recognized a gain of $21 million related to the remeasurement of two U.S. pension plans. These remeasurements were the result of distributions that exceeded service and interest costs resulting in settlement accounting for those specific plans. The remeasurements recognized were due primarily to an increase in the discount rate relative to the previous remeasurement date partially offset by lower than expected return on plan assets.

Company contributions to employee benefit plans are summarized as follows:

(millions)	Pension		Nonpension postretirement		Total
Quarter ended:
April 1, 2023	$	—	$	5	$	5
April 2, 2022	$	1	$	6	$	7
Full year:
Fiscal year 2023 (projected)	$	5	$	21	$	26
Fiscal year 2022 (actual)	$	3	$	20	$	23

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