XML 26 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
Pension and Retiree Medical Benefits
 8 Months Ended
Sep. 03, 2016
Compensation and Retirement Disclosure [Abstract]  
Pension and Retiree Medical Benefits
Pension and Retiree Medical Benefits
Effective as of the beginning of 2016, we prospectively changed the method we use to estimate the service and interest cost components of pension and retiree medical expense. The pre-tax reduction in net periodic benefit cost associated with this change in the 12 and 36 weeks ended September 3, 2016 was $29 million ($19 million after-tax or $0.01 per share) and $86 million ($56 million after-tax or $0.04 per share), respectively. See “Pension and Retiree Medical Plans” in “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on this change in accounting estimate.
The components of net periodic benefit cost for pension and retiree medical plans are as follows: 
 
12 Weeks Ended
 
Pension

Retiree Medical
 
9/3/2016


9/5/2015


9/3/2016


9/5/2015


9/3/2016


9/5/2015

 
U.S.

International

 
Service cost
$
91


$
100


$
20


$
25


$
7


$
8

Interest cost
112


126


24


30


9


12

Expected return on plan assets
(193
)

(195
)

(42
)

(44
)

(6
)

(6
)
Amortization of prior service credit
(1
)

(1
)

—


—


(8
)

(9
)
Amortization of net losses
39


47


11


18


—


—


48


77


13


29


2


5

Settlement/curtailment loss
4

 
—

 
3

 
3

 
—

 
—

Special termination benefits
1


4


—


—


—


—

Total expense
$
53


$
81


$
16


$
32


$
2


$
5


 
36 Weeks Ended
 
Pension
 
Retiree Medical
 
9/3/2016

 
9/5/2015

 
9/3/2016

 
9/5/2015

 
9/3/2016

 
9/5/2015

 
U.S.
 
International
 
 
Service cost
$
272

 
$
301

 
$
56

 
$
70

 
$
21

 
$
24

Interest cost
335

 
378

 
66

 
81

 
28

 
36

Expected return on plan assets
(577
)
 
(588
)
 
(115
)
 
(122
)
 
(17
)
 
(18
)
Amortization of prior service credit
(1
)
 
(2
)
 
—

 
—

 
(25
)
 
(27
)
Amortization of net losses/(gains)
116

 
142

 
29

 
50

 
(1
)
 
1

 
145

 
231

 
36

 
79

 
6

 
16

Settlement/curtailment loss
4

 
—

 
9

 
3

 
—

 
—

Special termination benefits
2

 
9

 
—

 
—

 
—

 
1

Total expense
$
151

 
$
240

 
$
45

 
$
82

 
$
6

 
$
17

During the first quarter of 2016, we made discretionary contributions of $7 million to our international pension plans. There were no discretionary contributions made in the second or third quarters of 2016 or in the first three quarters of 2015. Subsequent to the third quarter of 2016, we made discretionary pension contributions of $202 million to our U.S. pension plans, and may make additional discretionary pension contributions in the fourth quarter of 2016 that would reduce our net cash provided by operating activities.
We regularly evaluate different opportunities to reduce risk and volatility associated with our pension and retiree medical plans, which may result in settlement charges that would be reflected in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.