Pension, Retiree Medical and Savings Plans (Tables)

12 Months Ended

Dec. 26, 2020

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 year-end 2020 and 2019 are categorized consistently by Level 1 (quoted prices in active markets for identical assets), Level 2 (significant other observable inputs) and Level 3 (significant unobservable inputs) in both years and are as follows:

	Fair Value Hierarchy Level	2020		2019
U.S. plan assets (a)
Equity securities, including preferred stock (b)	1	$	7,179	$	6,605
Government securities (c)	2	2,177		2,154
Corporate bonds (c)	2	5,437		4,737
Mortgage-backed securities (c)	2	119		159
Contracts with insurance companies (d)	3	9		9
Cash and cash equivalents (e)	1, 2	278		275
Sub-total U.S. plan assets		15,199		13,939
Real estate commingled funds measured at net asset value (f)		517		605
Dividends and interest receivable, net of payables		64		60
Total U.S. plan assets		$	15,780	$	14,604
International plan assets
Equity securities (b)	1, 2	$	2,119	$	1,973
Government securities (c)	2	937		725
Corporate bonds (c)	2	445		331
Fixed income commingled funds (g)	1	509		437
Contracts with insurance companies (d)	3	50		42
Cash and cash equivalents	1	33		24
Sub-total international plan assets		4,093		3,532
Real estate commingled funds measured at net asset value (f)		202		193
Dividends and interest receivable		8		7
Total international plan assets		$	4,303	$	3,732

(a)Includes $315 million and $302 million in 2020 and 2019, respectively, of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries.

(b)Invested in U.S. and international common stock and commingled funds, and the preferred stock portfolio was invested in domestic and international corporate preferred stock investments. The common stock is based on quoted prices in active markets. The commingled funds are based on the published price of the fund and include one large-cap fund that represents 13% and 16% of total U.S. plan assets for 2020 and 2019, respectively. The preferred stock investments are based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes in active markets. The international portfolio includes Level 1 assets of $2,119 million and $1,941 million for 2020 and 2019, respectively, and Level 2 assets of $32 million for 2019.

(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 30% and 28% of total U.S. plan assets for 2020 and 2019, 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 26, 2020 and December 28, 2019.

(e)Cash and cash equivalents in the U.S. includes Level 1 assets of $178 million and $159 million for 2020 and 2019, respectively, and Level 2 assets of $100 million and $116 million for 2020 and 2019, respectively.

(f)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.

(g)Based on the published price of the fund.

Selected Financial Information For Pension And Retiree Medical Plans

Selected financial information for our pension and retiree medical plans is as follows: 

	Pension								Retiree Medical
	U.S.				International
	2020		2019		2020		2019		2020		2019
Change in projected benefit obligation
Obligation at beginning of year	$	15,230	$	13,807	$	3,753	$	3,098	$	988	$	996
Service cost	434		381		86		73		25		23
Interest cost	435		543		85		97		25		36
Plan amendments	(221)		15		(17)		1		(25)		—
Participant contributions	—		—		2		2		—		—
Experience loss	2,042		2,091		467		515		81		36
Benefit payments	(378)		(341)		(92)		(100)		(89)		(105)
Settlement/curtailment	(808)		(1,268)		(24)		(31)		—		—
Special termination benefits	19		2		—		—		—		—
Other, including foreign currency adjustment	—		—		170		98		1		2
Obligation at end of year	$	16,753	$	15,230	$	4,430	$	3,753	$	1,006	$	988
Change in fair value of plan assets
Fair value at beginning of year	$	14,302	$	12,258	$	3,732	$	3,090	$	302	$	285
Actual return on plan assets	1,908		3,101		401		551		47		78
Employer contributions/funding	387		550		120		122		55		44
Participant contributions	—		—		2		2		—		—
Benefit payments	(378)		(341)		(92)		(100)		(89)		(105)
Settlement	(754)		(1,266)		(29)		(31)		—		—
Other, including foreign currency adjustment	—		—		169		98		—		—
Fair value at end of year	$	15,465	$	14,302	$	4,303	$	3,732	$	315	$	302
Funded status	$	(1,288)	$	(928)	$	(127)	$	(21)	$	(691)	$	(686)

Amounts recognized
Other assets	$	797	$	744	$	110	$	99	$	—	$	—
Other current liabilities	(53)		(52)		(1)		(1)		(51)		(58)
Other liabilities	(2,032)		(1,620)		(236)		(119)		(640)		(628)
Net amount recognized	$	(1,288)	$	(928)	$	(127)	$	(21)	$	(691)	$	(686)
Amounts included in accumulated other comprehensive loss (pre-tax)
Net loss/(gain)	$	4,116	$	3,516	$	1,149	$	914	$	(212)	$	(285)
Prior service (credit)/cost	(119)		114		(19)		—		(45)		(32)
Total	$	3,997	$	3,630	$	1,130	$	914	$	(257)	$	(317)
Changes recognized in net loss/(gain) included in other comprehensive loss
Net loss/(gain) arising in current year	$	1,009	$	(120)	$	268	$	152	$	50	$	(24)
Amortization and settlement recognition	(409)		(457)		(75)		(44)		23		27
Foreign currency translation loss/(gain)	—		—		42		26		—		(1)
Total	$	600	$	(577)	$	235	$	134	$	73	$	2
Accumulated benefit obligation at end of year	$	15,949	$	14,255	$	4,108	$	3,441

Schedule of Net Benefit Costs [Table Text Block]

The components of total pension and retiree medical benefit costs are as follows:

	Pension												Retiree Medical
	U.S.						International
	2020		2019		2018		2020		2019		2018		2020		2019		2018
Service cost	$	434	$	381	$	431	$	86	$	73	$	92	$	25	$	23	$	32
Other pension and retiree medical benefits (income)/expense:
Interest cost	$	435	$	543	$	482	$	85	$	97	$	93	$	25	$	36	$	34
Expected return on plan assets	(929)		(892)		(943)		(202)		(188)		(197)		(16)		(18)		(19)
Amortization of prior service cost/(credits)	12		10		3		—		—		—		(12)		(19)		(20)
Amortization of net losses/(gains)	196		161		179		61		32		45		(23)		(27)		(8)
Settlement/curtailment losses (a)	213		296		8		19		12		6		—		—		—
Special termination benefits	19		1		36		—		—		2		—		—		1
Total other pension and retiree medical benefits (income)/expense	$	(54)	$	119	$	(235)	$	(37)	$	(47)	$	(51)	$	(26)	$	(28)	$	(12)
Total	$	380	$	500	$	196	$	49	$	26	$	41	$	(1)	$	(5)	$	20

(a)In 2020, U.S. includes a settlement charge of $205 million ($158 million after-tax or $0.11 per share) related to lump sum distributions exceeding the total of annual service and interest cost. In 2019, U.S. includes settlement charges related to the purchase of a group annuity contract of $220 million ($170 million after-tax or $0.12 per share) and a pension lump sum settlement charge of $53 million ($41 million after-tax or $0.03 per share).

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 net periodic benefit cost and projected benefit obligation for our pension and retiree medical plans:

	Pension												Retiree Medical
	U.S.						International
	2020		2019		2018		2020		2019		2018		2020		2019		2018
Net Periodic Benefit Cost
Service cost discount rate	3.4	%	4.4	%	3.8	%	3.2	%	4.2	%	3.5	%	3.2	%	4.3	%	3.6	%
Interest cost discount rate	2.9	%	4.1	%	3.4	%	2.4	%	3.2	%	2.8	%	2.6	%	3.8	%	3.0	%
Expected return on plan assets	6.8	%	7.1	%	7.2	%	5.6	%	5.8	%	6.0	%	5.8	%	6.6	%	6.5	%
Rate of salary increases	3.1	%	3.1	%	3.1	%	3.3	%	3.7	%	3.7	%
Projected Benefit Obligation
Discount rate	2.5	%	3.3	%	4.4	%	2.0	%	2.5	%	3.4	%	2.3	%	3.1	%	4.2	%
Rate of salary increases	3.0	%	3.1	%	3.1	%	3.3	%	3.3	%	3.7	%

Future Benefit Payments

Our estimated future benefit payments are as follows:

	2021		2022		2023		2024		2025		2026 - 2030
Pension	$	925	$	1,080	$	915	$	960	$	990	$	5,270
Retiree medical (a)	$	95	$	95	$	90	$	85	$	80	$	370

(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 $1 million for each of the years from 2021 through 2025 and approximately $4 million in total for 2026 through 2030.

These future benefit payments to beneficiaries include payments from both funded and unfunded plans.

Target Investment Allocation

For 2021 and 2020, our expected long-term rate of return on U.S. plan assets is 6.4% and 6.8%, respectively. Our target investment allocations for U.S. plan assets are as follows:

	2021		2020
Fixed income	51	%	50	%
U.S. equity	24	%	25	%
International equity	21	%	21	%
Real estate	4	%	4	%

Effects Of 1-Percentage-Point Change In The Assumed Health Care Trend Rate

Retiree Medical Cost Trend Rates

	2021		2020
Average increase assumed	6	%	6	%
Ultimate projected increase	5	%	5	%
Year of ultimate projected increase	2040		2039

These assumed health care cost trend rates have an impact on the retiree medical plan expense and obligation, however the cap on our share of retiree medical costs limits the impact.

Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets

The following table provides selected information about plans with accumulated benefit obligation and total projected benefit obligation in excess of plan assets:

	Pension								Retiree Medical
	U.S.				International
	2020		2019		2020		2019		2020		2019
Selected information for plans with accumulated benefit obligation in excess of plan assets(a)
Obligation for service to date	$	(5,537)	$	(9,194)	$	(172)	$	(192)
Fair value of plan assets	$	4,156	$	8,497	$	123	$	151
Selected information for plans with projected benefit obligation in excess of plan assets
Benefit obligation	$	(9,172)	$	(10,169)	$	(2,933)	$	(632)	$	(1,006)	$	(988)
Fair value of plan assets	$	7,088	$	8,497	$	2,696	$	512	$	315	$	302

(a) The decrease in U.S. pension plans in 2020 primarily reflects the approved reorganization of the U.S. qualified defined benefit plans, resulting in the transfer of obligations and plan assets relating to certain participants from Plan A to Plan I and Plan H.

Employer Contributions

Contributions to our pension and retiree medical plans were as follows:

	Pension						Retiree Medical
	2020		2019		2018		2020		2019		2018
Discretionary (a)	$	339	$	417	$	1,417	$	—	$	—	$	37
Non-discretionary	168		255		198		55		44		56
Total	$	507	$	672	$	1,615	$	55	$	44	$	93

(a)Includes $325 million contribution in 2020, $400 million contribution in 2019 and $1.4 billion contribution in 2018 to fund Plan A in the United States.