v3.25.4
Pensions and other benefit plans (Tables)
 12 Months Ended
Dec. 28, 2025
Retirement Benefits [Abstract]  
Components of Net Periodic Benefit Cost
Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans for 2025, 2024 and 2023 include the following components:
Retirement PlansOther Benefit Plans
(Dollars in Millions)202520242023202520242023
Service cost$928948893288277264
Interest cost1,4231,4021,437215209214
Expected return on plan assets(2,392)(2,560)(2,716)(7)(7)(7)
Amortization of prior service cost (184)(184)(184)(2)(2)(2)
Recognized actuarial losses (gains)339174(199)625323
Curtailments and settlements—(2)93——(5)
Net periodic benefit cost (credit)$114(222)(676)556530487
Rates Used to Develop Actuarial Present Value of Projected Benefit Obligation
The following table represents the weighted-average actuarial assumptions:
Retirement PlansOther Benefit Plans
Worldwide Benefit Plans202520242023202520242023
Net Periodic Benefit Cost
Service cost discount rate4.57 %4.39 4.85 5.51 5.09 5.40 
Interest cost discount rate5.33 %4.95 5.25 5.45 5.12 5.43 
Rate of increase in compensation levels3.69 %3.70 3.71 4.22 4.22 4.22 
Expected long-term rate of return on plan assets7.21 %7.25 7.21 
Benefit Obligation
Discount rate5.03 %4.95 4.58 5.31 5.54 5.11 
Rate of increase in compensation levels3.69 %3.70 3.69 4.26 4.22 4.22 
Assumed Health Care Cost Trend Rates
The following table displays the assumed healthcare cost trend rates, for all individuals:
Healthcare Plans20252024
Healthcare cost trend rate assumed for next year13.90 %9.33 %
Rate to which the cost trend rate is assumed to decline (ultimate trend)4.01 %4.02 %
Year the rate reaches the ultimate trend rate2050 2048 
Schedule of Net Funded Status
The following table sets forth information related to the benefit obligation and the fair value of plan assets at fiscal year-end 2025 and 2024 for the Company’s defined benefit retirement plans and other post-retirement plans:
Retirement PlansOther Benefit Plans
(Dollars in Millions)2025202420252024
Change in Benefit Obligation
Projected benefit obligation — beginning of year$30,31731,7444,4254,108
Service cost928948288277
Interest cost1,4231,402215209
Plan participant contributions8275——
Actuarial (gains) losses(1)
(245)(1,245)(12)398
Divestitures & acquisitions1———
Curtailments, settlements & restructuring(11)(121)——
Benefits paid from plan(2)
(1,436)(1,801)(787)(556)
Effect of exchange rates1,185(685)9(11)
Projected benefit obligation — end of year$32,24430,3174,1384,425
Change in Plan Assets
Plan assets at fair value — beginning of year$33,39533,6079386
Actual return (loss) on plan assets3,1332,1131315
Company contributions244229780548
Plan participant contributions8275——
Settlements(11)(114)——
Benefits paid from plan assets(2)
(1,436)(1,801)(787)(556)
Effect of exchange rates1,251(714)——
Plan assets at fair value — end of year$36,65833,3959993
Funded status — end of year$4,4143,078(4,039)(4,332)
Amounts Recognized in the Company’s Balance Sheet consist of the following:
Non-current assets$7,3316,046——
Current liabilities(144)(136)(432)(453)
Non-current liabilities(2,773)(2,832)(3,607)(3,879)
Total recognized in the consolidated balance sheet — end of year$4,4143,078(4,039)(4,332)
Amounts Recognized in Accumulated Other Comprehensive Income consist of the following:
Net actuarial loss$2,7273,903609691
Prior service cost (credit)(867)(1,051)(2)(4)
Unrecognized net transition obligation————
Total before tax effects$1,8602,852607687
Accumulated Benefit Obligations — end of year$30,99928,883
(1)The actuarial (gains)/losses for retirement plans in 2025 and 2024 were primarily driven by changes in the discount rates.
(2)The fiscal year 2024 includes approximately $400 million transferred to a group annuity contract issued by a third-party insurer for the U.S. Salaried Pension.
Retirement PlansOther Benefit Plans
(Dollars in Millions)2025202420252024
Amounts Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
Net periodic benefit cost (credit)$114 (222)556530
Net actuarial (gain) loss(985)(807)(19)389
Amortization of net actuarial loss(339)(172)(62)(53)
Prior service cost (credit)— ———
Amortization of prior service (cost) credit184 18422
Effect of exchange rates148 (79)(1)1
Total loss/(income) recognized in other comprehensive income, before tax$(992)(874)(80)339
Total recognized in net periodic benefit cost and other comprehensive income$(878)(1,096)476869
Information Related to the Benefit Obligation and the Fair Value of Plan Assets
The following table displays the funded status of the Company's U.S. Qualified & Non-Qualified pension plans and international funded and unfunded pension plans at December 31, 2025 and December 31, 2024, respectively:
U.S. PlansInternational Plans
Qualified PlansNon-Qualified PlansFunded PlansUnfunded Plans
(Dollars in Millions)20252024202520242025202420252024
Plan Assets$24,05722,250——12,60111,145——
Projected Benefit Obligation19,11118,1462,0841,99010,91010,069139112
Accumulated Benefit Obligation18,86717,7262,0641,9499,9579,11511193
Over (Under) Funded Status
Projected Benefit Obligation$4,9464,104(2,084)(1,990)1,6911,076(139)(112)
Accumulated Benefit Obligation5,1904,524(2,064)(1,949)2,6442,030(111)(93)
Projected Future Benefit Payments from Company's Retirement and Other Benefit Plans
The following table displays the projected future benefit payments from the Company’s retirement and other benefit plans:
(Dollars in Millions)202620272028202920302031-2035
Projected future benefit payments
Retirement plans$1,6781,6981,7981,8901,99611,386
Other benefit plans $4444014144274432,425
Projected Future Minimum Contributions to the Company's U.S. and International Unfunded Retirement Plans
The following table displays the projected future minimum contributions to the unfunded retirement plans. These amounts do not include any discretionary contributions that the Company may elect to make in the future.
(Dollars in Millions)202620272028202920302031-2035
Projected future contributions$142148152156163878
Company' Retirement Plan Asset Allocation and Target Allocations
The Company’s retirement plan asset allocation at the end of 2025 and 2024 and target allocations for 2026 are as follows:
Percent of
Plan Assets		Target
Allocation
Worldwide Retirement Plans202520242026
Equity securities55 %55 %54 %
Debt securities45 45 46 
Total plan assets100 %100 %100 %
Schedule of Defined Benefit Plans Disclosures
The following table sets forth the Retirement Plans' investments measured at fair value as of December 31, 2025 and December 31, 2024:
Quoted Prices
in Active
Markets for
Identical Assets		Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs(1)
Investments
Measured at Net
Asset Value
(Level 1)(Level 2)(Level 3)Total Assets
(Dollars in Millions)2025202420252024202520242025202420252024
Short-term investment funds$57 —677511————734511
Government and agency securities——9,1497,885————9,1497,885
Debt instruments——2,3102,321————2,3102,321
Equity securities6,6477,144——1———6,6487,144
Commingled funds——6,1055,004—376,1056,19012,21011,231
Other assets——567881081284,9324,0875,6074,303
Investments at fair value$6,704 7,14418,80815,80910916511,03710,27736,65833,395
(1)The activity for the Level 3 assets is not significant for all years presented.