Retirement Plans (Tables)
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12 Months Ended |
Sep. 26, 2014
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Compensation and Retirement Disclosure [Abstract] |
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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 | % |
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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 | ) |
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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 | % |
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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 |
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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 | % |
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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 |
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| | | | | | | | | | | | | | 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 |
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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 |
| | | | |
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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 |
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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 |
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