XML 53 R43.htm IDEA: XBRL DOCUMENT v2.4.0.8
Retirement Plans (Tables)
12 Months Ended
Sep. 26, 2014
Compensation and Retirement Disclosure [Abstract]  
Changes in net periodic benefit cost for material U.S. and non-U.S. defined benefit pension plans
The net periodic benefit cost for material U.S. and non-U.S. defined benefit pension plans for 2014, 2013 and 2012 is as follows ($ in millions):
 
U.S. Plans
 
Non-U.S. Plans
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Service cost
$
8

 
$
6

 
$
5

 
$
9

 
$
8

 
$
6

Interest cost
38

 
33

 
35

 
57

 
50

 
53

Expected return on plan assets
(51
)
 
(48
)
 
(42
)
 
(76
)
 
(67
)
 
(60
)
Amortization of initial net (asset)

 

 

 

 

 
(1
)
Amortization of net actuarial loss
9

 
14

 
13

 
13

 
11

 
7

Plan settlements, curtailments and special termination benefits

 

 

 
1

 

 

Net periodic benefit cost
$
4

 
$
5

 
$
11

 
$
4

 
$
2

 
$
5

Weighted-average assumptions used to determine net periodic pension cost during the year:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.9
%
 
3.6
%
 
4.5
%
 
4.2
%
 
4.2
%
 
5.2
%
Expected return on plan assets
8.0
%
 
8.0
%
 
8.0
%
 
6.7
%
 
6.8
%
 
6.8
%
Rate of compensation increase
N/A

 
N/A

 
N/A

 
2.8
%
 
2.8
%
 
2.7
%
Changes in benefit obligations and plan assets
The change in benefit obligations, plan assets and the amounts recognized on the Consolidated Balance Sheets for material U.S. and non-U.S. defined benefit plans as of September 26, 2014 and September 27, 2013 is as follows ($ in millions):
 
U.S. Plans
 
Non-U.S. Plans
 
2014
 
2013
 
2014
 
2013
Change in benefit obligations:
 
 
 
 
 
 
 
Benefit obligations as of beginning of year
$
792

 
$
931

 
$
1,327

 
$
1,219

Service cost
8

 
6

 
9

 
8

Interest cost
38

 
33

 
57

 
50

Employee contributions

 

 
2

 
2

Actuarial loss (gain)
55

 
(132
)
 
106

 
93

Acquisitions and mergers

 

 
2

 
5

Benefits and administrative expenses paid
(47
)
 
(46
)
 
(50
)
 
(54
)
Plan settlements, curtailments and special termination benefits

 

 
(10
)
 
(2
)
Currency translation

 

 
7

 
6

Benefit obligations as of end of year
$
846

 
$
792

 
$
1,450

 
$
1,327

Change in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets as of beginning of year
$
652

 
$
623

 
$
1,119

 
$
1,016

Actual return on plan assets
90

 
66

 
98

 
114

Employer contributions
25

 
9

 
29

 
41

Employee contributions

 

 
2

 
2

Acquisitions and mergers

 

 
2

 
1

Benefits and administrative expenses paid
(47
)
 
(46
)
 
(50
)
 
(54
)
Plan settlements, curtailments and special termination benefits

 

 
(10
)
 
(2
)
Currency translation

 

 
12

 
1

Fair value of plan assets as of end of year
$
720

 
$
652

 
$
1,202

 
$
1,119

Funded status
$
(126
)
 
$
(140
)
 
$
(248
)
 
$
(208
)
Net amount recognized
$
(126
)
 
$
(140
)
 
$
(248
)
 
$
(208
)
Amounts recognized in Consolidated Balance Sheets and accumulated other comprehensive (loss) income
 
U.S. Plans
 
Non-U.S. Plans
 
2014
 
2013
 
2014
 
2013
Amounts recognized in the Consolidated Balance Sheets consist of:
 
 
 
 
 
 
 
Current liabilities
$
(3
)
 
$
(3
)
 
$
(6
)
 
$
(6
)
Non-current liabilities
(123
)
 
(137
)
 
(242
)
 
(202
)
Net amount recognized
$
(126
)
 
$
(140
)
 
$
(248
)
 
$
(208
)
Amounts recognized in accumulated other comprehensive loss (before income taxes) consist of:
 
 
 
 
 
 
 
Transition asset
$

 
$

 
$
2

 
$
2

Net actuarial loss
(278
)
 
(271
)
 
(491
)
 
(418
)
Total loss recognized
$
(278
)
 
$
(271
)
 
$
(489
)
 
$
(416
)
Weighted-average assumptions used to determine pension benefit obligations at year end:
 
 
 
 
 
 
 
Discount rate
4.3
%
 
4.9
%
 
3.7
%
 
4.2
%
Rate of compensation increase
N/A

 
N/A

 
2.9
%
 
2.8
%
The accumulated and aggregate benefit obligation and fair value of plan assets with accumulated benefit obligations in excess of plan assets
The accumulated and aggregate benefit obligation and fair value of plan assets with accumulated benefit obligations in excess of plan assets as of September 26, 2014 and September 27, 2013 were as follows ($ in millions):
 
U.S. Plans
 
Non-U.S. Plans
 
As of
September 26,
2014
 
As of
September 27,
2013
 
As of
September 26,
2014
 
As of
September 27,
2013
Accumulated benefit obligation
$
846

 
$
792

 
$
1,431

 
$
1,312

Accumulated benefit obligation and fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets:
 
 
 
 
 
 
 
Accumulated benefit obligation
$
846

 
$
792

 
$
1,429

 
$
1,291

Fair value of plan assets
720

 
652

 
1,200

 
1,095

Aggregate benefit obligation and fair value of plan assets for plans with benefit obligations in excess of plan assets:
 
 
 
 
 
 
 
Aggregate benefit obligation
$
846

 
$
792

 
$
1,449

 
$
1,323

Fair value of plan assets
720

 
652

 
1,202

 
1,108

Weighted average asset allocations
Pension plans have the following weighted-average asset allocations:
 
U.S. Plans
 
Non-U.S.
Plans
 
2014
 
2013
 
2014
 
2013
Asset Category:
 
 
 
 
 
 
 
Equity securities
62
%
 
63
%
 
51
%
 
52
%
Debt securities
36
%
 
35
%
 
49
%
 
48
%
Cash and cash equivalents
2
%
 
2
%
 

 

Total
100
%
 
100
%
 
100
%
 
100
%
Company's asset allocations by level within the fair value hierarchy
The Company's asset allocations by level within the fair value hierarchy as of September 26, 2014 and September 27, 2013 are presented in the table below for the Company's material defined benefit plans.

 
As of
September 26, 2014
($ in millions)
Level 1
 
Level 2
 
Total
Equity securities:
 
 
 
 
 
U.S. equity securities
$
207

 
$
326

 
$
533

Non-U.S. equity securities
165

 
363

 
528

Fixed income securities:
 
 
 
 
 
Government and government agency securities
45

 
325

 
370

Corporate debt securities

 
408

 
408

Mortgage and other asset-backed securities

 
69

 
69

Cash and cash equivalents
14

 

 
14

Total
$
431

 
$
1,491

 
$
1,922

 
As of
September 27, 2013
($ in millions)
Level 1
 
Level 2
 
Total
Equity securities:
 
 
 
 
 
U.S. equity securities
$
187

 
$
296

 
$
483

Non-U.S. equity securities
165

 
351

 
516

Fixed income securities:
 
 
 
 
 
Government and government agency securities
34

 
292

 
326

Corporate debt securities

 
379

 
379

Mortgage and other asset-backed securities

 
54

 
54

Cash and cash equivalents
13

 

 
13

Total
$
399

 
$
1,372

 
$
1,771

Summary of pension plan assets valued using NAV or its equivalent
The following tables set forth a summary of pension plan assets valued using NAV or its equivalent as of September 26, 2014 and September 27, 2013 ($ in millions):
 
As of
September 26, 2014
Investment ($ in millions)
Fair
Value
 
Redemption
Frequency
 
Redemption
Notice
Period
U.S. equity securities
$
323

 
Daily
 
1 day, 5 days
Non-U.S. equity securities
403

 
Daily, Semi-monthly
 
1 day, 2 days
Government and government agency securities
159

 
Daily
 
1 day, 2 days
Corporate debt securities
136

 
Daily
 
1 day, 2 days
 
$
1,021

 
 
 
 
 
As of
September 27, 2013
Investment ($ in millions)
Fair
Value
 
Redemption
Frequency
 
Redemption
Notice
Period
U.S. equity securities
$
292

 
Daily
 
1 day, 5 days
Non-U.S. equity securities
390

 
Daily, Semi-monthly
 
1 day, 2 days, 3 days
Government and government agency securities
148

 
Daily
 
1 day, 2 days
Corporate debt securities
121

 
Daily
 
1 day, 2 days
 
$
951

 
 
 
 
Estimated future benefit payments
Benefit payments, including those amounts to be paid out of corporate assets and reflecting future expected service as appropriate, are expected to be paid as follows ($ in millions):
2015
$
3

2016
3

2017
3

2018
3

2019
3

2020-2023
11

Benefit payments, including those amounts to be paid out of corporate assets and reflecting future expected service as appropriate, are expected to be paid as follows ($ in millions):
 
U.S. Plans
 
Non-U.S. Plans
2015
$
43

 
$
52

2016
44

 
50

2017
45

 
51

2018
47

 
53

2019
47

 
54

2020 - 2023
251

 
296