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EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 30, 2023

Changes in Pension and Other Postretirement Benefit Obligations, Plan Assets and Funded Status

The following table provides a reconciliation of changes in the projected benefit obligation and the fair value of plan assets, as well as the funded status of the plans to amounts recognized on the Company’s Consolidated Balance Sheets.


	Pension Benefits						Other Benefits
(In millions)	2023			2022			2023			2022
Changes in projected benefit obligation:
Obligation at beginning of period	$	627		$	830		$	9		$	13
Interest cost		32			21			—			—
Assumption changes		3			(144	)		—			(3	)
Actuarial gain		(2	)		(9	)		—			—
Benefits paid		(68	)		(71	)		(1	)		(1	)
Obligation at end of period	$	592		$	627		$	8		$	9
Change in plan assets:
Fair value of plan assets at beginning of period	$	625		$	836		$	—		$	—
Actual return on plan assets		48			(142	)		—			—
Employer contribution		2			2			1			1
Benefits paid		(68	)		(71	)		(1	)		(1	)
Fair value of plan assets at end of period		607			625			—			—
Net asset (liability) recognized at end of period	$	15		$	(2	)	$	(8	)	$	(9	)

The following table provides a reconciliation of changes in the projected benefit obligation, the fair value of plan assets and the funded status of the plan to amounts recognized on the Company’s Consolidated Balance Sheets.


(In millions)	2023			2022
Changes in projected benefit obligation:
Obligation at beginning of period	$	141		$	257
Interest cost		8			4
Benefits paid		(7	)		(8	)
Actuarial loss/(gain)		17			(89	)
Currency translation		8			(23	)
Obligation at end of period		167			141
Changes in plan assets:
Fair value of plan assets at beginning of period		189			358
Actual return on plan assets		(24	)		(130	)
Company contributions		—			1
Benefits paid		(7	)		(8	)
Currency translation		9			(32	)
Fair value of plan assets at end of period		167			189
Net asset recognized at end of period	$	—		$	48

Amount Recognized in Consolidated Balance Sheets Related to Defined Benefit Pension and Other Postretirement Benefit Plans

The following table shows the amounts recognized in the Consolidated Balance Sheets related to the Company’s North America defined benefit pension and other postretirement benefit plans as of year-ends:


	Pension Benefits						Other Benefits
(In millions)	2023			2022			2023			2022
Noncurrent assets	$	23		$	7		$	—		$	—
Current liabilities		(1	)		(1	)		(1	)		(1	)
Noncurrent liabilities		(7	)		(8	)		(7	)		(8	)
Net amount recognized	$	15		$	(2	)	$	(8	)	$	(9	)

Accumulated Benefit Obligation in Excess of Plan Assets

The following table provides the accumulated benefit obligation for the Company’s North America defined benefit pension and other postretirement benefit plans with a projected benefit obligation and an accumulated benefit obligation in excess of plan assets as of year ends:


	Pension Benefits						Other Benefits
(In millions)	2023			2022			2023			2022
Accumulated benefit obligation in excess of plan assets
Accumulated benefit obligation at end of period	$	(8	)	$	(9	)	$	(8	)	$	(9	)
Fair value of plan assets at end of period		—			—			—			—
Projected benefit obligation in excess of plan assets
Benefit obligation at end of period		(8	)		(9	)
Fair value of plan assets at end of period		—			—

Components of Net Periodic Benefit

The components of net periodic benefit are as follows:


	Pension Benefits									Other Benefits
(In millions)	2023			2022			2021			2023		2022		2021
Interest cost	$	32		$	21		$	20		$	—	$	—	$	—
Expected return on plan assets		(34	)		(26	)		(29	)		—		—		—
Amortization of net gains		(6	)		—			—			—		—		—
Net periodic benefit	$	(8	)	$	(5	)	$	(9	)	$	—	$	—	$	—

The components of net periodic benefit are presented below:


(In millions)	2023			2022			2021
Interest cost	$	8		$	4		$	4
Expected return on plan assets		(8	)		(6	)		(6	)
Settlement gain		—			—			(1	)
Net periodic pension benefit	$	—		$	(2	)	$	(3	)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income

Other changes in plan assets and benefit obligations recognized in other comprehensive income are as follows:


	Pension Benefits									Other Benefits
(In millions)	2023			2022			2021			2023			2022			2021
Accumulated other comprehensive loss (income) at beginning of year	$	(31	)	$	(46	)	$	(21	)	$	(2	)	$	—		$	1
Net loss (gain)		(13	)		15			(25	)		(1	)		(2	)		(1	)
Amortization of net losses		6			—			—			—			—			—
Accumulated other comprehensive income at end of year	$	(38	)	$	(31	)	$	(46	)	$	(3	)	$	(2	)	$	—

Weighted Average Assumptions Used in the Measurement of Benefit Obligations and Net Periodic Cost (Benefit)

The following table presents the key weighted average assumptions used in the measurement of the Company’s benefit obligations as of year-ends:


										Other Benefits
	Pension Benefits									United States									Canada
	2023			2022			2021			2023			2022			2021			2023			2022			2021
Discount rate		5.14	%		5.37	%		2.69	%		4.70	%		4.90	%		2.40	%		4.60	%		5.10	%		2.90	%

The following table presents the weighted average assumptions used in the measurement of net periodic benefit:


										Other Benefits
	Pension Benefits									United States									Canada
	2023			2022			2021			2023			2022			2021			2023			2022			2021
Discount rate		5.37	%		2.69	%		2.27	%		4.90	%		2.40	%		1.90	%		5.10	%		2.90	%		2.50	%
Expected long-term rate of return on plan assets		5.17	%		3.64	%		4.31	%		—	%		—	%		—	%		—	%		—	%		—	%

Assumptions used in calculating the funded status and net periodic benefit included:


	2023			2022			2021
Expected long-term rate of return on plan assets		3.20	%		3.47	%		2.03	%
Discount rate		4.00	%		5.00	%		1.80	%
Inflation		2.90	%		3.00	%		3.20	%

Assumed Healthcare Cost Trend Rates

The following table presents the assumed healthcare cost trend rates used in measuring the Company’s postretirement benefit obligations at year-ends:


	2023			2022			2021
Weighted average assumptions as of year-end:
Healthcare cost trend rate assumed for next year		5.30	%		6.10	%		6.20	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.30	%		4.00	%		4.00	%
Year that the rate reaches the ultimate trend rate	2037			2041			2041

Allocation of Plan Assets Table

The allocation of pension plan assets by category at year-ends is as follows:


	2023			2022
Cash		1	%		1	%
Common collective trust funds		99	%		99	%
		100	%		100	%

The allocation of Plan assets is as follows:


	2023			2022
Cash		1	%		—	%
Insurance contract		99	%		—	%
Equity securities		—	%		5	%
Fixed-income securities		—	%		95	%
Total		100	%		100	%

Schedule of Fair Value of Plan Assets by Assets Category

The following table presents the pension plan assets by level within the fair value hierarchy at year-ends.


(In millions)	Fair Value Measurements 2023
Asset Category	Total		Assets Measured at NAV (a)		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Plan assets measured at net asset value: (a)
Common collective trust funds:
U.S. small and mid-cap equity securities	$	5	$	5	$	—	$	—	$	—
U.S. large cap equity securities		21		21		—		—		—
International equity securities		32		32		—		—		—
Corporate bonds		282		282		—		—		—
Government securities		241		241		—		—		—
Cash		21		21		—		—		—
Total common collective trust funds		602		602		—		—		—
Total plan assets measured at net asset value		602		602		—		—		—
Plan assets measured in the fair value hierarchy:
Cash		5		—		5		—		—
Total plan assets measured in the fair value hierarchy		5		—		5		—		—
Total plan assets	$	607	$	602	$	5	$	—	$	—

(a)

Fair values of Common collective trust funds are estimated using net asset value per unit as a practical expedient which are excluded from the disclosure requirement to classify amounts in the fair value hierarchy in connection with the adoption of Accounting Standards Update (ASU) 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).


(In millions)	Fair Value Measurements 2022
Asset Category	Total		Assets Measured at NAV (a)		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Plan assets measured at net asset value: (a)
Common collective trust funds:
U.S. small and mid-cap equity securities	$	5	$	5	$	—	$	—	$	—
U.S. large cap equity securities		20		20		—		—		—
International equity securities		31		31		—		—		—
Corporate bonds		281		281		—		—		—
Government securities		254		254		—		—		—
Cash		29		29		—		—		—
Total common collective trust funds		620		620		—		—		—
Total plan assets measured at net asset value		620		620		—		—		—
Plan assets measured in the fair value hierarchy:
Cash		5		—		5		—		—
Total plan assets measured in the fair value hierarchy		5		—		5		—		—
Total plan assets	$	625	$	620	$	5	$	—	$	—

(a)

The following table presents the pension plan assets by level within the fair value hierarchy.


(In millions)	Fair Value Measurements 2023
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	2	$	2	$	—	$	—
Insurance contract		165		—		—		165
Total	$	167	$	2	$	—	$	165


(In millions)	Fair Value Measurements 2022
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	1	$	1	$	—	$	—
Equity securities
Mutual funds		9		—		9		—
Total equity securities		9		—		9		—
Fixed-income securities
UK debt funds		86		—		86		—
Liability term matching debt funds		76		—		76		—
High yield debt		17		—		17		—
Total fixed-income securities		179		—		179		—
Total	$	189	$	1	$	188	$	—

Anticipated Benefit Payments

Anticipated benefit payments by year are as follows:


(In millions)	Pension Benefits		Other Benefits
2024	$	67	$	1
2025		64		1
2026		61		1
2027		58		1
2028		55		1
Next five years		230		3

Anticipated benefit payments for the UK pension plan, at 2023 year-end exchange rates, are as follows:


(In millions)	Benefit Payments
2024	$	7
2025		8
2026		8
2027		8
2028		8
Next five years		45

Reconciliation of the Change in Fair Value of the Pension Plan Assets Calculated based on Level 3 Inputs

The following is a reconciliation of the change in fair value of the pension plan assets calculated based on Level 3 inputs:


(In millions)	Total
Balance at December 31, 2022	$	—
Purchases		165
Balance at December 30, 2023	$	165