v3.26.3
Pension and Retiree Medical Benefits (Notes)
 8 Months Ended
Sep. 05, 2026
Pension and Retiree Medical Benefits [Abstract]  
Pension and Retiree Medical Benefits Pension and Retiree Medical Benefits
In the 12 and 36 weeks ended September 5, 2026, we recognized a pre-tax settlement charge of $144 million ($111 million after-tax or $0.08 per share) in a U.S. qualified defined benefit pension plan due to lump sum distributions to retired or terminated employees. The settlement charge was triggered when the cumulative lump sum distributions exceeded the total annual service and interest cost in 2026. As a result, related plan assets and benefit obligations were remeasured using assumptions as of September 5, 2026, the remeasurement date. The weighted-average discount rate for the U.S. defined benefit plans’ projected benefit obligations increased from 5.5% to 5.7% as a result of the remeasurement. In addition, for purposes of determining the 2026 net periodic benefit cost/(income), the weighted-average interest cost discount rate for the U.S. defined benefit pension plans increased from 4.9% to 5.1%, while the weighted-average expected return on plan assets remained unchanged at 7.8%. Any incremental lump sum payments made in the fourth quarter of 2026 would result in additional settlement charges for the year.
For further information on our policies for pension, retiree-medical and savings plans, refer to Note 7 to our consolidated financial statements in our 2025 Form 10-K.
The components of net periodic benefit cost/(income) for pension and retiree medical plans are as follows:
12 Weeks Ended
PensionRetiree Medical
U.S.International
9/5/20269/6/20259/5/20269/6/20259/5/20269/6/2025
Service cost$55 $71 $13 $11 $8 $8 
Other pension and retiree medical benefits expense/(income):
Interest cost121 136 38 35 7 6 
Expected return on plan assets(191)(186)(50)(46)(4)(3)
Amortization of prior service cost/(credits)2 1 — (1)(1)(1)
Amortization of net losses/(gains)16 19 9 7 (5)(5)
Settlement/curtailment losses (a)
171 5 8 8 — — 
Special termination benefits(7)(1)— — — — 
Total other pension and retiree medical benefits expense/(income)112 (26)5 3 (3)(3)
Total$167 $45 $18 $14 $5 $5 
36 Weeks Ended
PensionRetiree Medical
U.S.International
9/5/20269/6/20259/5/20269/6/20259/5/20269/6/2025
Service cost$163 $216 $36 $30 $25 $22 
Other pension and retiree medical benefits expense/(income):
Interest cost361 406 103 97 19 20 
Expected return on plan assets(573)(558)(140)(129)(8)(8)
Amortization of prior service cost/(credits)6 2 — (1)(3)(3)
Amortization of net losses/(gains)50 58 23 17 (14)(17)
Net settlement/curtailment losses (a)
171 5 8 7 — — 
Special termination benefits(6)13 — — — — 
Total other pension and retiree medical benefits expense/(income)9 (74)(6)(9)(6)(8)
Total$172 $142 $30 $21 $19 $14 
(a) U.S. amounts for the 12 and 36 weeks ended September 5, 2026 include a pre-tax settlement charge of $144 million ($111 million after-tax or $0.08 per share) in a U.S. qualified defined benefit pension plan.
We regularly evaluate opportunities to reduce risk and volatility associated with our pension and retiree medical plans.
In the 36 weeks ended September 5, 2026 and September 6, 2025, we made discretionary contributions of $200 million and $250 million, respectively, to our U.S. qualified defined benefit plans, and $52 million and $29 million, respectively, to our international defined benefit plans.