Retirement Benefit Plans (Tables)

12 Months Ended

Apr. 28, 2017

The change in benefit obligation and funded status of the Company’s U.S. and Non-U.S. pension benefits are as follows:



	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Fiscal Year						Fiscal Year
(in millions)	2017			2016			2017			2016
Accumulated benefit obligation at end of year:	$	2,879		$	2,757		$	1,518		$	1,367
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	3,048		$	2,956		$	1,535		$	1,647
Service cost	117			120			70			81
Interest cost	109			122			26			31
Employee contributions	—			—			15			16
Plan curtailments and settlements	—			(28		)	6			(133		)
Actuarial (gain) loss	(22		)	(42		)	182			(103		)
Benefits paid	(80		)	(80		)	(43		)	(49		)
Special termination benefits	60			—			—			—
Currency exchange rate changes and other	—			—			(57		)	45
Projected benefit obligation at end of year	$	3,232		$	3,048		$	1,734		$	1,535
Change in plan assets:
Fair value of plan assets at beginning of year	$	2,138		$	2,204		$	1,113		$	1,189
Actual return on plan assets	238			(70		)	109			(44		)
Employer contributions	183			112			76			93
Employee contributions	—			—			15			16
Plan settlements	—			(28		)	(1		)	(118		)
Benefits paid	(80		)	(80		)	(43		)	(49		)
Currency exchange rate changes and other	—			—			(34		)	26
Fair value of plan assets at end of year	$	2,479		$	2,138		$	1,235		$	1,113
Funded status at end of year:
Fair value of plan assets	$	2,479		$	2,138		$	1,235		$	1,113
Benefit obligations	3,232			3,048			1,734			1,535
Underfunded status of the plans	(753		)	(910		)	(499		)	(422		)
Recognized liability	$	(753	)	$	(910	)	$	(499	)	$	(422	)
Amounts recognized on the consolidated balance sheets consist of:
Non-current assets	$	—		$	—		$	5		$	20
Current liabilities	(13		)	(12		)	(7		)	(8		)
Non-current liabilities	(740		)	(898		)	(497		)	(434		)
Recognized liability	$	(753	)	$	(910	)	$	(499	)	$	(422	)
Amounts recognized in accumulated other comprehensive loss:
Prior service cost (benefit)	$	3		$	4		$	(6	)	$	(14	)
Net actuarial loss	1,212			1,361			450			359
Ending balance	$	1,215		$	1,365		$	444		$	345

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

U.S. and non-U.S. plans with accumulated benefit obligations in excess of plan assets consist of the following:



	Fiscal Year
(in millions)	2017		2016
Accumulated benefit obligation	$	4,188	$	3,922
Projected benefit obligation	4,677		4,333
Plan assets at fair value	3,454		2,981

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

Plans with projected benefit obligations in excess of plan assets consist of the following:



	Fiscal Year
(in millions)	2017		2016
Projected benefit obligation	$	4,903	$	4,362
Plan assets at fair value	3,646		3,009

Schedule of Net Benefit Costs

The net periodic benefit cost of the plans include the following components:



	U.S. Pension Benefits									Non-U.S. Pension Benefits
	Fiscal Year									Fiscal Year
(in millions)	2017			2016			2015			2017			2016			2015
Service cost	$	117		$	120		$	104		$	70		$	81		$	60
Interest cost	109			122			105			26			31			33
Expected return on plan assets	(195		)	(180		)	(160		)	(48		)	(48		)	(41		)
Amortization of prior service cost	1			—			—			(1		)	—			—
Amortization of net actuarial loss	88			98			65			17			20			12
Settlement gain	—			(1		)	—			—			(10		)	—
Special termination benefits	60			—			—			—			—			—
Net periodic benefit cost	$	180		$	159		$	114		$	64		$	74		$	64

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

The other changes in plan assets and projected benefit obligations recognized in accumulated other comprehensive loss for fiscal year 2017 are as follows:



(in millions)	U.S. Pension Benefits			Non-U.S. Pension Benefits
Net actuarial (gain) loss	$	(61	)	$	121
Amortization of prior service cost	(1		)	1
Amortization of net actuarial loss	(88		)	(17		)
Prior service cost	—			8
Effect of exchange rates	—			(13		)
Total (gain) loss recognized in accumulated other comprehensive loss	$	(150	)	$	100
Total loss recognized in net periodic benefit cost and accumulated other comprehensive loss	$	30		$	164

Schedule of Assumptions Used

The actuarial assumptions are as follows:



	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Fiscal Year						Fiscal Year
	2017		2016		2015		2017		2016		2015
Critical assumptions – projected benefit obligation:
Discount rate	3.70% - 4.30%		3.60% - 4.30%		4.20	%	0.45% - 11.40%		0.25% - 10.20%		1.88	%
Rate of compensation increase	3.90	%	3.90	%	3.90	%	2.89	%	2.83	%	2.92	%
Critical assumptions – net periodic benefit cost:
Discount rate – benefit obligation	3.55% - 4.30%		4.20% - 4.80%		4.75	%	0.25% - 10.20%		0.80% - 9.00%		3.32	%
Discount rate – service cost	3.60% - 4.45%		4.20% - 4.80%		4.75	%	0.05% - 10.20%		0.80% - 9.00%		3.32	%
Discount rate – interest cost	2.90% - 3.80%		4.20% - 4.80%		4.75	%	0.30% - 10.20%		0.80% - 9.00%		3.32	%
Expected return on plan assets	8.20	%	8.20	%	8.25	%	4.45	%	4.35	%	4.77	%
Rate of compensation increase	3.90	%	3.90	%	3.90	%	2.83	%	2.92	%	2.80	%

Schedule of Allocation of Plan Assets

The Company’s U.S. plans target asset allocations at April 28, 2017, compared to the U.S. plans actual asset allocations at April 28, 2017 and April 29, 2016 by asset category, are as follows:



U.S. Plans
	Target Allocation		Actual Allocation
	April 28, 2017		April 28, 2017		April 29, 2016
Asset Category:
Equity securities	40	%	45	%	43	%
Debt securities	36		37		35
Other	24		18		22
Total	100	%	100	%	100	%

Fair Value Measurements, Retirement Benefit Plan Assets



	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 28, 2017		Level 1		Level 2		Level 3		Investments Measured at Net Asset Value
Registered investment companies	$	1,191	$	—	$	—	$	—	$	1,191
Insurance contracts	44		—		—		44		—
	$	1,235	$	—	$	—	$	44	$	1,191



	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 29, 2016		Level 1		Level 2		Level 3		Investments Measured at Net Asset Value
Registered investment companies	$	1,037	$	—	$	—	$	—	$	1,037
Insurance contracts	76		—		—		76		—
	$	1,113	$	—	$	—	$	76	$	1,037

The following tables provide information by level for the retirement benefit plan assets that are measured at fair value, as defined by U.S. GAAP. See Note 1 for discussion of the fair value measurement terms of Levels 1, 2, and 3. In accordance with authoritative guidance adopted in fiscal year 2017, certain investments for which the fair value is measured using the net asset value per share (or its equivalent) practical expedient are not presented within the fair value hierarchy. The fair value amounts presented for these investments are intended to permit reconciliation to the total fair value of plan assets at April 28, 2017 and April 29, 2016. The revised presentation has been applied retrospectively and fiscal year 2016 values have been reclassified to conform to classifications used in the current year.

U.S. Pension Benefits



	Fair Value at
	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 28, 2017		Level 1		Level 2		Level 3		Investments Measured at Net Asset Value
Short-term investments	$	168	$	168	$	—	$	—	$	—
U.S. government securities	167		138		29		—		—
Corporate debt securities	250		—		250		—		—
Equity commingled trusts	1,127		—		—		—		1,127
Fixed income commingled trusts	299		—		—		—		299
Partnership units	468		—		—		468		—
	$	2,479	$	306	$	279	$	468	$	1,426



	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 29, 2016		Level 1		Level 2		Level 3		Investments Measured at Net Asset Value
Short-term investments	$	127	$	127	$	—	$	—	$	—
U.S. government securities	146		137		9		—		—
Corporate debt securities	216		—		216		—		—
Equity commingled trusts	956		—		—		—		956
Fixed income commingled trusts	231		—		—		—		231
Partnership units	462		—		—		462		—
	$	2,138	$	264	$	225	$	462	$	1,187

Fair Value, Retirement Benefit Plan Assets, Unobservable Input Reconciliation

The following tables provide a reconciliation of the beginning and ending balances of non-U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3):



(in millions)	Total Level 3 Investments			Insurance Contracts
April 29, 2016	$	76		$	76
Total unrealized gains included in accumulated other comprehensive (loss) income	2			2
Purchases and sales, net	(31		)	(31		)
Currency exchange rate changes	(3		)	(3		)
April 28, 2017	$	44		$	44



(in millions)	Total Level 3 Investments			Insurance Contracts		Partnership Units
April 24, 2015	$	76		$	60	$	16
Purchases and sales, net	(2		)	14		(16		)
Currency exchange rate changes	2			2		—
April 29, 2016	$	76		$	76	$	—

The following tables provide a reconciliation of the beginning and ending balances of U.S. pension benefit assets measured at fair value that used significant unobservable inputs (Level 3):



(in millions)	Total Level 3 Investments			Partnership Units
April 29, 2016	$	462		$	462
Total realized gains included in income	25			25
Total unrealized gains included in accumulated other comprehensive (loss) income	28			28
Purchases and sales, net	(47		)	(47		)
April 28, 2017	$	468		$	468



(in millions)	Total Level 3 Investments			Corporate Debt Securities			Partnership Units
April 24, 2015	$	473		$	1		$	472
Total realized gains included in income	10			—			10
Total unrealized losses included in accumulated other comprehensive (loss) income	(144		)	(1		)	(143		)
Purchases and sales, net	123			—			123
April 29, 2016	$	462		$	—		$	462

Schedule of Expected Benefit Payments

Retiree benefit payments, which reflect expected future service, are anticipated to be paid as follows:



(in millions)	U.S. Pension Benefits		Non-U.S. Pension Benefits
Fiscal Year	Gross Payments		Gross Payments
2018	$	101	$	44
2019	110		42
2020	121		43
2021	131		46
2022	143		50
2023 – 2027	901		298
Total	$	1,507	$	523