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RETIREMENT BENEFITS
 9 Months Ended
Oct. 02, 2026
Retirement Benefits [Abstract]  
RETIREMENT BENEFITS
NOTE J: RETIREMENT BENEFITS
Deferred Compensation Plans
We sponsor certain non-qualified deferred compensation plans which are measured at fair value on a recurring basis in our Condensed Consolidated Balance Sheet. Deferred compensation plan assets represent diversified assets held in rabbi trusts, which include marketable equity and fixed income securities and corporate-owned life insurance (“COLI”) contracts. Liabilities represent participant balances in marketable equity securities and common/collective trusts (“CCTs”) and guaranteed investment contracts (“GICs”) based on participant designated investment options.
The following table summarizes our deferred compensation plan assets and liabilities and classifications within the fair value hierarchy:
October 2, 2026January 2, 2026
(In millions)TotalLevel 1TotalLevel 1
Assets
Equity and fixed income securities$279 $279 $255 $255 
COLI, measured at NAV40 38 
Deferred compensation plan assets(1)
$319 $293 
Liabilities
Equity securities$12 $12 $15 $15 
CCTs and GICs, measured at NAV
461 431 
Deferred compensation plan liabilities(2)
$473 $446 
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(1)Included in the “Other current assets” and “Other non-current assets” line items in our Condensed Consolidated Balance Sheet.
(2)Included in the “Compensation and benefits” and “Other non-current liabilities” line items in our Condensed Consolidated Balance Sheet.

See Note H: Fair Value Measurements for further information on fair value.
Defined Benefit Plans
The components of net periodic benefit income for our defined benefit pension plans and other postretirement benefit plans (“other benefits”) (collectively, “defined benefit plans”) were as follows:
Third Quarter
20262025
(In millions)
Pension
Other Benefits
Total
Pension
Other Benefits
Total
Operating
Service cost(1)
$4 $— $4 $7 $— $7 
Non-operating
Interest cost70 3 73 77 3 80 
Expected return on plan assets(133)(5)(138)(136)(6)(142)
Amortization of net actuarial gains— (3)(3)(1)(3)(4)
Amortization of prior service credits(6)— (6)(7)— (7)
Non-service cost net periodic benefit income(2)
(69)(5)(74)(67)(6)(73)
Net periodic benefit income$(65)$(5)$(70)$(60)$(6)$(66)
Year to Date
20262025
(In millions)
Pension
Other Benefits
Total
Pension
Other Benefits
Total
Operating
Service cost(1)
$14 $1 $15 $19 $1 $20 
Non-operating
Interest cost211 7 218 242 8 250 
Expected return on plan assets(397)(16)(413)(423)(16)(439)
Amortization of net actuarial gains(2)(9)(11)(4)(10)(14)
Amortization of prior service (credits) costs(19)1 (18)(20)1 (19)
Effect of settlements— — — (14)— (14)
Non-service cost net periodic benefit income(2)
(207)(17)(224)(219)(17)(236)
Net periodic benefit income$(193)$(16)$(209)$(200)$(16)$(216)
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(1)Included in the “Cost of revenue” and “General and administrative expenses” line items in our Condensed Consolidated Statement of Operations.
(2)Included in the “Non-service FAS pension income” line item in our Condensed Consolidated Statement of Operations.