XML 55 R40.htm IDEA: XBRL DOCUMENT v2.4.1.9
Pension, Retiree Medical and Retiree Savings Plans (Tables)
 12 Months Ended
Dec. 27, 2014
Compensation and Retirement Disclosure [Abstract]  
Funded status of pension plans
The following chart summarizes the balance sheet impact, as well as benefit obligations, assets, and funded status associated with our two significant U.S. pension plans.  The actuarial valuations for all plans reflect measurement dates coinciding with our fiscal year end.

 
 
2014
 
2013
Change in benefit obligation
 
 
 
 
Benefit obligation at beginning of year
 
$
1,025

 
$
1,290

Service cost
 
17

 
21

Interest cost
 
54

 
54

Plan amendments
 
1

 
—

Curtailments
 
(2
)
 
(3
)
Special termination benefits
 
3

 
5

Benefits paid
 
(65
)
 
(21
)
Settlements(a)(b)
 
(17
)
 
(151
)
Actuarial (gain) loss
 
290

 
(164
)
Administrative expense
 
(5
)
 
(6
)
Benefit obligation at end of year
 
$
1,301

 
$
1,025

 
 
 
 
 
Change in plan assets
 
 
 
 
Fair value of plan assets at beginning of year
 
$
933

 
$
945

Actual return on plan assets
 
124

 
116

Employer contributions
 
21

 
22

Settlement payments(a)
 
(17
)
 
(123
)
Benefits paid
 
(65
)
 
(21
)
Administrative expenses
 
(5
)
 
(6
)
Fair value of plan assets at end of year
 
$
991

 
$
933

 Funded status at end of year
 
$
(310
)
 
$
(92
)


(a)
For discussion of the settlement payments and settlement losses, see Components of net periodic benefit cost below.

(b)
2013 includes the transfer of certain non-qualified pension benefits into a defined benefit plan not included in the table.
Amounts recognized in the Consolidated Balance Sheet
Amounts recognized in the Consolidated Balance Sheet:
 
 
2014
 
2013
Prepaid benefit asset - non-current
 
$
—

 
$
10

Accrued benefit liability - current
 
(11
)
 
(8
)
Accrued benefit liability - non-current
 
(299
)
 
(94
)
 
 
$
(310
)
 
$
(92
)
Pension plans with an accumulated benefit obligation in excess of pan assets
Information for pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
2014
 
2013
Projected benefit obligation
 
$
1,301

 
$
102

Accumulated benefit obligation
 
1,254

 
94

Fair value of plan assets
 
991

 
—
Pension plans with a projected benefit obligation in excess of plan assets
Information for pension plans with a projected benefit obligation in excess of plan assets:
 
 
2014
 
2013
Projected benefit obligation
 
$
1,301

 
$
102

Accumulated benefit obligation
 
1,254

 
94

Fair value of plan assets
 
991

 
—
Components of net periodic benefit cost
Components of net periodic benefit cost:
Net periodic benefit cost
 
2014
 
2013
 
2012
Service cost
 
$
17

 
$
21

 
$
26

Interest cost
 
54

 
54

 
66

Amortization of prior service cost(a)
 
1


2


1

Expected return on plan assets
 
(56
)
 
(59
)
 
(71
)
Amortization of net loss
 
17

 
48

 
63

Net periodic benefit cost
 
$
33

 
$
66

 
$
85


Additional (gain) loss recognized due to:

Settlements(b)
 
$
6

 
$
30

 
$
89

Special termination benefits
 
$
3

 
$
5

 
$
3


(a)
Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

(b)
Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year. During the fourth quarter of 2012 and continuing through 2013, the Company allowed certain former employees with deferred vested balances an opportunity to voluntarily elect an early payout of their pension benefits. The majority of these payouts were funded from existing pension plan assets. See Note 4.
Pension losses in accumulated other comprehensive income (loss)
Pension (gains) losses in Accumulated other comprehensive income (loss):
 
 
2014
 
2013
Beginning of year
 
$
124

 
$
428

Net actuarial (gain) loss
 
220

 
(221
)
Curtailments
 
(2
)
 
(3
)
Amortization of net loss
 
(17
)
 
(48
)
Amortization of prior service cost
 
(1
)
 
(2
)
Prior service cost
 
1

 
—

Settlement charges
 
(6
)
 
(30
)
End of year
 
$
319

 
$
124
Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost
Weighted-average assumptions used to determine benefit obligations at the measurement dates:
 
 
2014
 
2013
Discount rate
 
4.30
%
 
5.40
%
Rate of compensation increase
 
3.75
%
 
3.75
%

Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
 
 
2014
 
2013
 
2012
Discount rate
 
5.40
%
 
4.40
%
 
4.90
%
Long-term rate of return on plan assets
 
6.90
%
 
7.25
%
 
7.25
%
Rate of compensation increase
 
3.75
%
 
3.75
%
 
3.75
%
Fair values of pension plan assets
The fair values of our pension plan assets at December 27, 2014 and December 28, 2013 by asset category and level within the fair value hierarchy are as follows:

 
 
2014
 
2013
Level 2:
 
 
 
 
Cash Equivalents(a)
 
$
5

 
$
5

Equity Securities – U.S. Large cap(b)
 
298

 
329

Equity Securities – U.S. Mid cap(b)
 
50

 
55

Equity Securities – U.S. Small cap(b)
 
50

 
53

Equity Securities – Non-U.S.(b)
 
91

 
110

Fixed Income Securities – U.S. Corporate(b)
 
305

 
234

Fixed Income Securities – U.S. Government and Government Agencies(c)
 
178

 
129

Fixed Income Securities – Other(d)
 
11

 
15

Total fair value of plan assets(e)
 
$
988

 
$
930


(a)
Short-term investments in money market funds

(b)
Securities held in common trusts

(c)
Investments held directly by the Plan

(d)
Includes securities held in common trusts and investments held directly by the Plan

(e)
2014 and 2013 both exclude net unsettled trades receivable of $3 million
Expected benefit payments
The benefits expected to be paid in each of the next five years and in the aggregate for the five years thereafter are set forth below:

Year ended:
 
 
2015
 
$
72

2016
 
53

2017
 
51

2018
 
55

2019
 
57

2020 - 2024
 
299
Schedule of Accumulated pre-tax losses recognized in Accumulated Other Comprehensive Income
Accumulated pre-tax losses recognized within Accumulated Other Comprehensive Income:
 
 
2014
 
2013
Actuarial net loss
 
$
314

 
$
119

Prior service cost
 
5

 
5

 
 
$
319

 
$
124