v3.25.2
Pension, Retiree Medical and Savings Plans (Tables)
 12 Months Ended
Dec. 28, 2024
Defined Benefit Plan Disclosure [Line Items]  
Selected Financial Information For Pension And Retiree Medical Plans
Selected financial information for our pension and retiree medical plans is as follows: 
 PensionRetiree Medical
 U.S.International  
 202420232024202320242023
Change in projected benefit obligation
Obligation at beginning of year$12,035 $11,543 $2,986 $2,603 $677 $714 
Service cost347 327 46 43 31 29 
Interest cost585 593 144 141 32 36 
Plan amendments12 13 1 — — — 
Participant contributions— — 2 2 — — 
Experience (gain)/loss(563)603 (55)194 (44)(22)
Benefit payments(617)(1,006)(108)(116)(78)(80)
Settlement/curtailment (506)(36)(62)(26)— — 
Special termination benefits31 (1)— — 1 — 
Other, including foreign currency adjustment— (1)(168)145 (3)— 
Obligation at end of year$11,324 $12,035 $2,786 $2,986 $616 $677 
Change in fair value of plan assets
Fair value at beginning of year$11,541 $11,148 $3,528 $3,195 $183 $196 
Actual return on plan assets(10)1,121 142 267 5 21 
Employer contributions/funding236 314 59 50 53 46 
Participant contributions— — 2 2 — — 
Benefit payments(617)(1,006)(108)(116)(78)(80)
Settlement(539)(36)(62)(26)— — 
Other, including foreign currency adjustment(2)— (164)156 — — 
Fair value at end of year$10,609 $11,541 $3,397 $3,528 $163 $183 
Funded status$(715)$(494)$611 $542 $(453)$(494)
Amounts recognized
Other assets$388 $313 $792 $727 $— $— 
Other current liabilities(85)(75)(10)(11)(52)(52)
Other liabilities(1,018)(732)(171)(174)(401)(442)
Net amount recognized$(715)$(494)$611 $542 $(453)$(494)
Amounts included in accumulated other comprehensive loss (pre-tax)
Net loss/(gain)$3,618 $3,596 $633 $707 $(333)$(323)
Prior service cost/(credit)54 18 (5)(8)(14)(19)
Total$3,672 $3,614 $628 $699 $(347)$(342)
Changes recognized in net loss/(gain) included in other comprehensive loss
Net loss/(gain) arising in current year$320 $333 $8 $119 $(36)$(30)
Amortization and settlement recognition(298)(74)(43)(23)25 27 
Foreign currency translation (gain)/loss— — (39)40 1 — 
Total$22 $259 $(74)$136 $(10)$(3)
Accumulated benefit obligation at end of year$11,069 $11,653 $2,638 $2,835 
Schedule of Net Benefit Costs [Table Text Block]
The components of total pension and retiree medical benefit costs are as follows:
 PensionRetiree Medical
 U.S.International   
 202420232022202420232022202420232022
Service cost$347 $327 $487 $46 $43 $64 $31 $29 $37 
Other pension and retiree medical benefits expense/(income):
Interest cost$585 $593 $434 $144 $141 $90 $32 $36 $19 
Expected return on plan assets(871)(851)(912)(205)(192)(218)(13)(13)(16)
Amortization of prior service credits(24)(26)(28)(2)(1)(1)(5)(6)(8)
Amortization of net losses/(gains)77 70 149 21 13 29 (25)(27)(14)
Settlement/curtailment losses/(gains) (a)
254 4 322 22 10 1 — — (16)
Special termination benefits31 (1)37 — — — 1 — — 
Total other pension and retiree medical benefits expense/(income)$52 $(211)$2 $(20)$(29)$(99)$(10)$(10)$(35)
Total$399 $116 $489 $26 $14 $(35)$21 $19 $2 
(a)In 2024, U.S. includes a settlement charge of $213 million ($165 million after-tax or $0.12 per share) related to the aggregate of lump sum distributions and the purchase of a group annuity contract exceeding the total of annual service and interest cost. In 2022, U.S. includes a settlement charge of $318 million ($246 million after-tax or $0.18 per share) related to lump sum distributions exceeding the total of annual service and interest cost.
Weighted-Average Assumptions Used To Determine Projected Benefit Liability And Benefit Expense For Pension And Retiree Medical Plans
The following table provides the weighted-average assumptions used to determine net periodic benefit cost and projected benefit obligation for our pension and retiree medical plans:
 PensionRetiree Medical
 U.S.International   
 202420232022202420232022202420232022
Net Periodic Benefit Cost
Service cost discount rate (a)
5.1 %5.4 %3.1 %6.9 %7.0 %4.2 %5.1 %5.4 %2.8 %
Interest cost discount rate (a)
5.1 %5.4 %3.1 %5.0 %5.4 %2.3 %5.0 %5.3 %2.1 %
Expected return on plan assets (a)
7.4 %7.4 %6.7 %5.8 %5.7 %5.3 %7.1 %7.1 %5.7 %
Rate of salary increases3.9 %3.2 %3.0 %4.3 %4.2 %3.3 %
Projected Benefit Obligation
Discount rate5.7 %5.1 %5.4 %5.5 %5.1 %5.3 %5.5 %5.1 %5.4 %
Rate of salary increases3.9 %3.9 %3.2 %4.0 %4.3 %4.2 %
(a)2022 U.S. rates reflect remeasurement of a U.S. qualified defined benefit pension plan in the second quarter of 2022.
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets
The following table provides selected information about plans with accumulated benefit obligation and total projected benefit obligation in excess of plan assets:
 PensionRetiree Medical
 U.S.International  
 202420232024202320242023
Selected information for plans with accumulated benefit obligation in excess of plan assets
Obligation for service to date$(7,315)$(631)$(194)$(255)
Fair value of plan assets$6,399 $— $135 $190 
Selected information for plans with projected benefit obligation in excess of plan assets
Benefit obligation$(7,502)$(8,223)$(346)$(375)$(616)$(677)
Fair value of plan assets$6,399 $7,416 $165 $190 $163 $183 
Future Benefit Payments
Our estimated future benefit payments are as follows:
202520262027202820292030 - 2034
Pension$1,053 $1,145 $953 $982 $1,008 $5,327 
Retiree medical (a)
$77 $75 $72 $69 $67 $295 
(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 less than $1 million for each of the years from 2025 through 2029 and approximately $2 million in total for 2030 through 2034.
Employer Contributions
Contributions to our pension and retiree medical plans were as follows:
PensionRetiree Medical
202420232022202420232022
Discretionary (a)
$161 $267 $160 $— $— $— 
Non-discretionary134 97 176 53 46 48 
Total$295 $364 $336 $53 $46 $48 
(a)Includes $150 million contribution in 2024, $250 million contribution in 2023 and $150 million contribution in 2022 to fund our U.S. qualified defined benefit plans.
Target Investment Allocation
For 2025 and 2024, our expected long-term rate of return on U.S. plan assets is 7.5% and 7.4%, respectively. Our target investment allocations for U.S. plan assets are as follows:
20252024
Fixed income56 %55 %
U.S. equity22 %22 %
International equity18 %19 %
Real estate4 %4 %
Schedule Of Plan Assets Measured At Fair Value Table Text Block
Plan assets measured at fair value as of year-end 2024 and 2023 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 Level20242023
U.S. plan assets (a)(b)
Equity securities, including preferred stock (c)
1$4,270 $4,698 
Government securities (d)
21,538 1,812 
Corporate bonds (d)
23,903 4,233 
Mortgage-backed securities (d)
2125 133 
Contracts with insurance companies (e)
31 1 
Cash and cash equivalents (f) (g)
1, 2732 349 
Sub-total U.S. plan assets10,569 11,226 
Real estate and other commingled funds measured at net asset value (h)
561 411 
Securities lending payables, net of dividends and interest receivable (g)
(358)87 
Total U.S. plan assets$10,772 $11,724 
International plan assets
Equity securities (c)
1$1,172 $1,175 
Government securities (d)
2932 1,207 
Corporate bonds (d)
2469 267 
Fixed income commingled funds (i)
1557 526 
Contracts with insurance companies (e)
329 30 
Cash and cash equivalents1128 143 
Sub-total international plan assets3,287 3,348 
Real estate commingled funds measured at net asset value (h)
79 162 
Dividends and interest receivable31 18 
Total international plan assets$3,397 $3,528 
(a)Includes $163 million and $183 million in 2024 and 2023, respectively, of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries.
(b)Includes securities loaned to borrowers under the securities lending program with fair value of $630 million in 2024.
(c)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 and preferred stock investments are 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 12% and 13% of total U.S. plan assets for 2024 and 2023, respectively.
(d)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 31% of total U.S. plan assets for both 2024 and 2023.
(e)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 28, 2024 and December 30, 2023.
(f)Includes Level 1 assets of $456 million and $3 million, and Level 2 assets of $276 million and $346 million for 2024 and 2023, respectively.
(g)Includes $447 million of cash collateral under the securities lending program offset by corresponding securities lending payable of the same amount. The net impact on the fair value of U.S. plan assets is zero.
(h)Includes investments in limited partnerships and private credit funds. These funds are based on the net asset value of the 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 30 to 90 days.
(i)Based on the published price of the fund.
Schedule of Health Care Cost Trend Rates
Retiree Medical Cost Trend Rates
The assumed health care cost trend rates for both 2025 and 2024 are as follows:
Average increase assumed5 %
Ultimate projected increase 4 %
Year of ultimate projected increase
2046