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Pension, Retiree Medical and Savings Plans (Tables)
 12 Months Ended
Dec. 30, 2017
Defined Benefit Plan Disclosure [Line Items]  
Schedule Of Plan Assets Measured At Fair Value Table Text Block
Plan assets measured at fair value as of fiscal year-end 2017 and 2016 are categorized consistently by level, and are as follows:
 
2017
 
2016
 
Total
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
Total
U.S. plan assets (a)
 
 
 
 
 
 
 
 
 
Equity securities, including preferred stock (b)
$
6,904

 
$
6,896

 
$
8

 
$
—

 
$
6,489

Government securities (c)
1,365

 
—

 
1,365

 
—

 
1,173

Corporate bonds (c)
3,429

 
—

 
3,429

 
—

 
3,012

Mortgage-backed securities (c)
217

 
—

 
217

 
—

 
187

Contracts with insurance companies (d)
8

 
—

 
—

 
8

 
7

Cash and cash equivalents
236

 
236

 
—

 
—

 
196

Sub-total U.S. plan assets
12,159

 
$
7,132

 
$
5,019

 
$
8

 
11,064

Real estate commingled funds measured at net asset value (e)
675

 
 
 
 
 
 
 
651

Dividends and interest receivable, net of payables
69

 
 
 
 
 
 
 
63

Total U.S. plan assets
$
12,903

 
 
 
 
 
 
 
$
11,778

International plan assets
 
 
 
 
 
 
 
 
 
Equity securities (b)
$
1,928

 
$
1,895

 
$
33

 
$
—

 
$
1,556

Government securities (c)
492

 
—

 
492

 
—

 
432

Corporate bonds (c)
493

 
—

 
493

 
—

 
453

Fixed income commingled funds (f)
383

 
383

 
—

 
—

 
316

Contracts with insurance companies (d)
36

 
—

 
—

 
36

 
35

Cash and cash equivalents
19

 
19

 
—

 
—

 
12

Sub-total international plan assets
3,351

 
$
2,297

 
$
1,018

 
$
36

 
2,804

Real estate commingled funds measured at net asset value (e)
102

 
 
 
 
 
 
 
84

Dividends and interest receivable
7

 
 
 
 
 
 
 
6

Total international plan assets
$
3,460

 
 
 
 
 
 
 
$
2,894

(a)
2017 and 2016 amounts include $321 million and $320 million, respectively, of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries.
(b)
The equity securities portfolio was invested in U.S. and international common stock and commingled funds, and the preferred stock portfolio in the U.S. was invested in domestic and international corporate preferred stock investments. The common stock is based on quoted prices in active markets. The U.S. commingled funds are based on fair values of the investments owned by these funds that are benchmarked against various U.S. large, mid-cap and small company indices, and includes one large-cap fund that represents 19% of total U.S. plan assets for 2017 and 2016. The international commingled funds are based on the fair values of the investments owned by these funds that track various non-U.S. equity indices. The preferred stock investments are based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes in active markets.
(c)
These investments are based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes in active markets. Corporate bonds of U.S.-based companies represent 23% and 22% of total U.S. plan assets for 2017 and 2016, respectively.
(d)
Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable. The changes in Level 3 amounts were not significant in the years ended December 30, 2017 and December 31, 2016.
(e)
The real estate commingled funds include investments in limited partnerships. These funds are based on the net asset value of the appraised value of investments owned by these funds as determined by independent third parties using inputs that are not observable. The majority of the funds are redeemable quarterly subject to availability of cash and have notice periods ranging from 45 to 90 days.
(f)
Based on the fair value of the investments owned by these funds that track various government and corporate bond indices.
Selected Financial Information For Pension And Retiree Medical Plans
Pension, Retiree Medical and Savings Plans
Effective January 1, 2017, the U.S. qualified defined benefit pension plans were reorganized into Plan A and Plan I. Actuarial gains and losses associated with Plan A are amortized over the average remaining service life of the active participants, while the actuarial gains and losses associated with Plan I are amortized over the remaining life expectancy of the inactive participants. As a result of this change, the pre-tax net periodic benefit cost decreased by $42 million ($27 million after-tax, reflecting tax rates effective for the 2017 tax year, or $0.02 per share) in 2017, primarily impacting corporate unallocated expenses. See “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
In 2016, the U.S. qualified defined benefit pension plans purchased a group annuity contract whereby an unrelated insurance company assumed the obligation to pay and administer future annuity payments for certain retirees. In 2016, we made discretionary contributions of $452 million primarily to fund the transfer of the obligation. This transaction triggered a pre-tax settlement charge of $242 million ($162 million after-tax or $0.11 per share). See additional unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Effective as of the beginning of 2016, we prospectively changed the method we use to estimate the service and interest cost components of net periodic benefit cost. The pre-tax reduction in net periodic benefit cost associated with this change in 2016 was $125 million ($81 million after-tax or $0.06 per share). See “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.
Gains and losses resulting from actual experience differing from our assumptions, including the difference between the actual return on plan assets and the expected return on plan assets, as well as changes in our assumptions, are determined at each measurement date. These differences are recognized as a component of net gain or loss in accumulated other comprehensive loss. If this net accumulated gain or loss exceeds 10% of the greater of the market-related value of plan assets or plan liabilities, a portion of the net gain or loss is included in expense for the following year based upon the average remaining service life for participants in Plan A (approximately 11 years) and retiree medical (approximately 7 years), or the remaining life expectancy for participants in Plan I (approximately 27 years). The cost or benefit of plan changes that increase or decrease benefits for prior employee service (prior service (credit)/cost) is included in earnings on a straight-line basis over the average remaining service life for participants in Plan A or the remaining life expectancy for participants in Plan I.
We regularly evaluate different opportunities to reduce risk and volatility associated with our pension and retiree medical plans.
Selected financial information for our pension and retiree medical plans is as follows: 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
2017

 
2016

 
2017

 
2016

 
2017

 
2016

Change in projected benefit liability
 
 
 
 
 
 
 
 
 
 
 
Liability at beginning of year
$
13,192

 
$
13,033

 
$
3,124

 
$
2,872

 
$
1,208

 
$
1,300

Service cost
401

 
393

 
91

 
80

 
28

 
31

Interest cost
468

 
484

 
89

 
94

 
36

 
41

Plan amendments
10

 
18

 
2

 
—

 
(5
)
 
(15
)
Participant contributions
—

 
—

 
2

 
2

 
—

 
—

Experience loss/(gain)
1,529

 
614

 
5

 
560

 
21

 
(51
)
Benefit payments
(825
)
 
(347
)
 
(104
)
 
(83
)
 
(107
)
 
(100
)
Settlement/curtailment
(58
)
 
(1,014
)
 
(22
)
 
(19
)
 
—

 
—

Special termination benefits
60

 
11

 
—

 
1

 
2

 
1

Other, including foreign currency adjustment
—

 
—

 
303

 
(383
)
 
4

 
1

Liability at end of year
$
14,777

 
$
13,192

 
$
3,490

 
$
3,124

 
$
1,187

 
$
1,208

 
 
 
 
 
 
 
 
 
 
 
 
Change in fair value of plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value at beginning of year
$
11,458

 
$
11,397

 
$
2,894

 
$
2,823

 
$
320

 
$
354

Actual return on plan assets
1,935

 
880

 
288

 
409

 
52

 
30

Employer contributions/funding
60

 
541

 
104

 
118

 
56

 
36

Participant contributions
—

 
—

 
2

 
2

 
—

 
—

Benefit payments
(825
)
 
(347
)
 
(104
)
 
(83
)
 
(107
)
 
(100
)
Settlement
(46
)
 
(1,013
)
 
(18
)
 
(22
)
 
—

 
—

Other, including foreign currency adjustment
—

 
—

 
294

 
(353
)
 
—

 
—

Fair value at end of year
$
12,582

 
$
11,458

 
$
3,460

 
$
2,894

 
$
321

 
$
320

Funded status
$
(2,195
)
 
$
(1,734
)
 
$
(30
)
 
$
(230
)
 
$
(866
)
 
$
(888
)
 
Amounts recognized
 
 
 
 
 
 
 
 
 
 
 
Other assets
$
286

 
$
—

 
$
85

 
$
51

 
$
—

 
$
—

Other current liabilities
(74
)
 
(42
)
 
(1
)
 
(1
)
 
(75
)
 
(54
)
Other liabilities
(2,407
)
 
(1,692
)
 
(114
)
 
(280
)
 
(791
)
 
(834
)
Net amount recognized
$
(2,195
)
 
$
(1,734
)
 
$
(30
)
 
$
(230
)
 
$
(866
)
 
$
(888
)
 
 
 
 
 
 
 
 
 
 
 
 
Amounts included in accumulated other comprehensive loss (pre-tax)
 
 
 
 
 
 
 
 
Net loss/(gain)
$
3,520

 
$
3,220

 
$
782

 
$
884

 
$
(189
)
 
$
(193
)
Prior service cost/(credit)
29

 
20

 
(3
)
 
(5
)
 
(71
)
 
(91
)
Total
$
3,549

 
$
3,240

 
$
779

 
$
879

 
$
(260
)
 
$
(284
)
 
 
 
 
 
 
 
 
 
 
 
 
Changes recognized in net loss/(gain) included in other comprehensive loss
 
 
Net loss/(gain) arising in current year
$
431

 
$
568

 
$
(115
)
 
$
314

 
$
(9
)
 
$
(57
)
Amortization and settlement recognition
(131
)
 
(413
)
 
(60
)
 
(46
)
 
12

 
1

Foreign currency translation loss/(gain)
—

 
—

 
73

 
(117
)
 
1

 
1

Total
$
300

 
$
155

 
$
(102
)
 
$
151

 
$
4

 
$
(55
)
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated benefit obligation at end of year
$
13,732

 
$
12,211

 
$
2,985

 
$
2,642

 
 
 
 
Estimated Amounts To Be Amortized From Accumulated Other Comprehensive Loss Into Benefit Expense In 2012 For Pension And Retiree Medical Plans
The estimated amounts to be amortized from accumulated other comprehensive loss/(gain) into pre-tax expense in 2018 for our pension and retiree medical plans are as follows:
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
Net loss/(gain)
$
179

 
$
46

 
$
(10
)
Prior service cost/(credit)
3

 
—

 
(20
)
Total
$
182

 
$
46

 
$
(30
)
Weighted-Average Assumptions Used To Determine Projected Benefit Liability And Benefit Expense For Pension And Retiree Medical Plans
The following table provides the weighted-average assumptions used to determine projected benefit liability and benefit expense for our pension and retiree medical plans:
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
 
 
2017

 
2016

 
2015

 
2017

 
2016

 
2015

 
2017

 
2016

 
2015

Weighted-average assumptions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liability discount rate
3.7
%
 
4.4
%
 
4.5
%
 
3.0
%
 
3.1
%
 
4.0
%
 
3.5
%
 
4.0
%
 
4.2
%
Expense discount rate (a)
n/a

 
n/a

 
4.2
%
 
n/a

 
n/a

 
3.8
%
 
n/a

 
n/a

 
3.8
%
Service cost discount rate (a)
4.5
%
 
4.6
%
 
n/a

 
3.6
%
 
4.1
%
 
n/a

 
4.0
%
 
4.3
%
 
n/a

Interest cost discount rate (a)
3.7
%
 
3.8
%
 
n/a

 
2.8
%
 
3.5
%
 
n/a

 
3.2
%
 
3.3
%
 
n/a

Expected return on plan assets
7.5
%
 
7.5
%
 
7.5
%
 
6.0
%
 
6.2
%
 
6.5
%
 
7.5
%
 
7.5
%
 
7.5
%
Liability rate of salary increases
3.1
%
 
3.1
%
 
3.1
%
 
3.7
%
 
3.6
%
 
3.6
%
 
 
 
 
 
 
Expense rate of salary increases
3.1
%
 
3.1
%
 
3.5
%
 
3.6
%
 
3.6
%
 
3.6
%
 
 
 
 
 
 
Future Benefit Payments
Our estimated future benefit payments are as follows:
 
2018

 
2019

 
2020

 
2021

 
2022

 
2023 - 27

Pension
$
890

 
$
985

 
$
825

 
$
875

 
$
925

 
$
5,210

Retiree medical (a)
$
120

 
$
120

 
$
110

 
$
110

 
$
105

 
$
455

(a)
Expected future benefit payments for our retiree medical plans do not reflect any estimated subsidies expected to be received under the 2003 Medicare Act. Subsidies are expected to be approximately $2 million for each of the years from 2018 through 2022 and approximately $6 million in total for 2023 through 2027.
These future benefit payments to beneficiaries include payments from both funded and unfunded plans.
Target Investment Allocation
Plan Assets
Our pension plan investment strategy includes the use of actively managed accounts and is reviewed periodically in conjunction with plan liabilities, an evaluation of market conditions, tolerance for risk and cash requirements for benefit payments. This strategy is also applicable to funds held for the retiree medical plans. Our investment objective includes ensuring that funds are available to meet the plans’ benefit obligations when they become due. Assets contributed to our pension plans are no longer controlled by us, but become the property of our individual pension plans. However, we are indirectly impacted by changes in these plan assets as compared to changes in our projected liabilities. Our overall investment policy is to prudently invest plan assets in a well-diversified portfolio of equity and high-quality debt securities and real estate to achieve our long-term return expectations. Our investment policy also permits the use of derivative instruments, such as futures and forward contracts, to reduce interest rate and foreign currency risks. Futures contracts represent commitments to purchase or sell securities at a future date and at a specified price. Forward contracts consist of currency forwards.
For 2018 and 2017, our expected long-term rate of return on U.S. plan assets is 7.2% and 7.5%, respectively. Our target investment allocations for U.S. plan assets are as follows:
 
2018

 
2017

Fixed income
47
%
 
40
%
U.S. equity
29
%
 
33
%
International equity
20
%
 
22
%
Real estate
4
%
 
5
%

Actual investment allocations may vary from our target investment allocations due to prevailing market conditions. We regularly review our actual investment allocations and periodically rebalance our investments.
The expected return on plan assets is based on our investment strategy and our expectations for long-term rates of return by asset class, taking into account volatility and correlation among asset classes and our historical experience. We also review current levels of interest rates and inflation to assess the reasonableness of the long-term rates. We evaluate our expected return assumptions annually to ensure that they are reasonable. To calculate the expected return on plan assets, our market-related value of assets for fixed income is the actual fair value. For all other asset categories, such as equity securities, we use a method that recognizes investment gains or losses (the difference between the expected and actual return based on the market-related value of assets) over a five-year period. This has the effect of reducing year-to-year volatility.
Effects Of 1-Percentage-Point Change In The Assumed Health Care Trend Rate
Retiree Medical Cost Trend Rates
 
2018
 
2017
Average increase assumed
6
%
 
6
%
Ultimate projected increase
5
%
 
5
%
Year of ultimate projected increase 
2039

 
2039


These assumed health care cost trend rates have an impact on the retiree medical plan expense and liability, however the cap on our share of retiree medical costs limits the impact. A 1-percentage-point change in the assumed health care trend rate would have the following effects:
 
1% Increase
 
1% Decrease
2017 service and interest cost components
$
3

 
$
(3
)
2017 benefit liability
$
39

 
$
(34
)
Savings Plan
Certain U.S. employees are eligible to participate in 401(k) savings plans, which are voluntary defined contribution plans. The plans are designed to help employees accumulate additional savings for retirement, and we make Company matching contributions for certain employees on a portion of eligible pay based on years of service.
Certain U.S. salaried employees, who are not eligible to participate in a defined benefit pension plan, are also eligible to receive an employer contribution to the 401(k) savings plan based on age and years of service regardless of employee contribution.
In 2017, 2016 and 2015, our total Company contributions were $176 million, $164 million and $148 million, respectively.
For additional unaudited information on our pension and retiree medical plans and related accounting policies and assumptions, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Schedule of Net Benefit Costs [Table Text Block]
The components of benefit expense are as follows:
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
 
 
2017

 
2016

 
2015

 
2017

 
2016

 
2015

 
2017

 
2016

 
2015

Components of benefit expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
401

 
$
393

 
$
435

 
$
91

 
$
80

 
$
99

 
$
28

 
$
31

 
$
35

Interest cost
468

 
484

 
546

 
89

 
94

 
115

 
36

 
41

 
52

Expected return on plan assets
(849
)
 
(834
)
 
(850
)
 
(176
)
 
(163
)
 
(174
)
 
(22
)
 
(24
)
 
(27
)
Amortization of prior service cost/(credit)
1

 
(1
)
 
(3
)
 
—

 
—

 
—

 
(25
)
 
(38
)
 
(39
)
Amortization of net loss/(gain)
123

 
168

 
205

 
53

 
40

 
71

 
(12
)
 
(1
)
 
2

 
144

 
210

 
333

 
57

 
51

 
111

 
5

 
9

 
23

Settlement/curtailment loss/(gain) (a)
8

 
245

 
—

 
11

 
9

 
3

 
—

 
(14
)
 
—

Special termination benefits
60

 
11

 
18

 
—

 
1

 
1

 
2

 
1

 
1

Total
$
212

 
$
466

 
$
351

 
$
68

 
$
61

 
$
115

 
$
7

 
$
(4
)
 
$
24