Retirement Benefit Plans (Tables)

12 Months Ended

Apr. 27, 2018

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)	2018			2017			2018			2017
Accumulated benefit obligation at end of year:	$	2,943		$	2,879		$	1,580		$	1,518
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	3,232		$	3,048		$	1,734		$	1,535
Service cost	116			117			67			70
Interest cost	117			109			28			26
Employee contributions	—			—			12			15
Plan curtailments and settlements	(168		)	—			(8		)	6
Actuarial (gain) loss	12			(22		)	(74		)	182
Benefits paid	(107		)	(80		)	(51		)	(43		)
Special termination benefits	—			60			—			—
Currency exchange rate changes and other	—			—			146			(57		)
Divestiture	—			—			(63		)	—
Projected benefit obligation at end of year	$	3,202		$	3,232		$	1,791		$	1,734
Change in plan assets:
Fair value of plan assets at beginning of year	$	2,479		$	2,138		$	1,235		$	1,113
Actual return on plan assets	243			238			67			109
Employer contributions	215			183			90			76
Employee contributions	—			—			13			15
Plan settlements	(168		)	—			(4		)	(1		)
Benefits paid	(108		)	(80		)	(51		)	(43		)
Currency exchange rate changes and other	—			—			108			(34		)
Divestiture	—			—			(54		)	—
Fair value of plan assets at end of year	$	2,661		$	2,479		$	1,404		$	1,235
Funded status at end of year:
Fair value of plan assets	$	2,661		$	2,479		$	1,404		$	1,235
Benefit obligations	3,202			3,232			1,791			1,734
Underfunded status of the plans	(541		)	(753		)	(387		)	(499		)
Recognized liability	$	(541	)	$	(753	)	$	(387	)	$	(499	)
Amounts recognized on the consolidated balance sheets consist of:
Non-current assets	$	—		$	—		$	16		$	5
Current liabilities	(17		)	(13		)	(8		)	(7		)
Non-current liabilities	(524		)	(740		)	(395		)	(497		)
Recognized liability	$	(541	)	$	(753	)	$	(387	)	$	(499	)
Amounts recognized in accumulated other comprehensive loss:
Prior service cost (benefit)	$	2		$	3		$	(9	)	$	(6	)
Net actuarial loss	1,088			1,212			380			450
Ending balance	$	1,090		$	1,215		$	371		$	444

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)	2018		2017
Accumulated benefit obligation	$	4,110	$	4,188
Projected benefit obligation	4,282		4,677
Plan assets at fair value	3,472		3,454

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)	2018		2017
Projected benefit obligation	$	4,736	$	4,903
Plan assets at fair value	3,793		3,646

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)	2018			2017			2016			2018			2017			2016
Service cost	$	116		$	117		$	120		$	67		$	70		$	81
Interest cost	117			109			122			28			26			31
Expected return on plan assets	(205		)	(195		)	(180		)	(53		)	(48		)	(48		)
Amortization of prior service cost	1			1			—			—			(1		)	—
Amortization of net actuarial loss	82			88			98			18			17			20
Settlement loss (gain)	16			—			(1		)	—			—			(10		)
Special termination benefits	—			60			—			—			—			—
Net periodic benefit cost	$	127		$	180		$	159		$	60		$	64		$	74

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 2018 are as follows:



(in millions)	U.S. Pension Benefits			Non-U.S. Pension Benefits
Net actuarial gain	$	(27	)	$	(88	)
Amortization of prior service cost	(1		)	—
Amortization of net actuarial loss	(82		)	(18		)
Prior service cost	—			(4		)
Effect of exchange rates	—			37
Settlement loss	(17		)	—
Total recognized in accumulated other comprehensive loss	$	(127	)	$	(73	)
Total recognized in net periodic benefit cost and accumulated other comprehensive loss	$	—		$	(13	)

Schedule of Assumptions Used

The actuarial assumptions are as follows:



	U.S. Pension Benefits						Non-U.S. Pension Benefits
	Fiscal Year						Fiscal Year
	2018		2017		2016		2018		2017		2016
Critical assumptions – projected benefit obligation:
Discount rate	4.20% - 4.35%		3.70% - 4.30%		3.60% - 4.30%		0.70% - 11.00%		0.45% - 11.40%		0.25% - 10.20%
Rate of compensation increase	3.90	%	3.90	%	3.90	%	2.88	%	2.89	%	2.83	%
Critical assumptions – net periodic benefit cost:
Discount rate – benefit obligation	4.00% - 4.30%		3.55% - 4.30%		4.20% - 4.80%		0.45% - 11.40%		0.25% - 10.20%		0.80% - 9.00%
Discount rate – service cost	3.70% - 4.45%		3.60% - 4.45%		4.20% - 4.80%		0.20% - 11.40%		0.05% - 10.20%		0.80% - 9.00%
Discount rate – interest cost	3.45% - 3.80%		2.90% - 3.80%		4.20% - 4.80%		0.45% - 11.40%		0.30% - 10.20%		0.80% - 9.00%
Expected return on plan assets	7.90	%	8.20	%	8.20	%	4.20	%	4.45	%	4.35	%
Rate of compensation increase	3.90	%	3.90	%	3.90	%	2.89	%	2.83	%	2.92	%

Schedule of Allocation of Plan Assets

The Company’s U.S. plans target asset allocations at April 27, 2018, compared to the U.S. plans actual asset allocations at April 27, 2018 and April 28, 2017 by asset category, are as follows:



U.S. Plans
	Target Allocation		Actual Allocation
	April 27, 2018		April 27, 2018		April 28, 2017
Asset Category:
Equity securities	49	%	49	%	45	%
Debt securities	32		32		37
Other	19		19		18
Total	100	%	100	%	100	%

Fair Value Measurements, Retirement Benefit Plan Assets

Non-U.S. Pension Benefits



	Fair Value at		Fair Value Measurements Using Inputs Considered as						Investments Measured at Net Asset Value
(in millions)	April 27, 2018		Level 1		Level 2		Level 3		Investments Measured at Net Asset Value
Registered investment companies	$	1,362	$	—	$	—	$	—	$	1,362
Insurance contracts	42		—		—		42		—
	$	1,404	$	—	$	—	$	42	$	1,362



	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

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 27, 2018 and April 28, 2017.

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 27, 2018		Level 1		Level 2		Level 3		Investments Measured at Net Asset Value
Short-term investments	$	181	$	181	$	—	$	—	$	—
U.S. government securities	181		181		—		—		—
Corporate debt securities	142		—		142		—		—
Equity commingled trusts	1,322		—		—		—		1,322
Fixed income commingled trusts	298		—		—		—		298
Partnership units	537		—		—		537		—
	$	2,661	$	362	$	142	$	537	$	1,620



	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, Retirement Benefit Plan Assets, Unobservable Input Reconciliation

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)	Partnership Units
April 28, 2017	$	468
Total realized losses	(42		)
Total unrealized gains	141
Purchases and sales, net	(30		)
April 27, 2018	$	537



(in millions)	Partnership Units
April 29, 2016	$	462
Total realized gains	25
Total unrealized gains	28
Purchases and sales, net	(47		)
April 28, 2017	$	468

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)	Insurance Contracts
April 28, 2017	$	44
Total unrealized gains	2
Purchases and sales, net	(7		)
Currency exchange rate changes	3
April 27, 2018	$	42



(in millions)	Insurance Contracts
April 29, 2016	$	76
Total unrealized gains	2
Purchases and sales, net	(31		)
Currency exchange rate changes	(3		)
April 28, 2017	$	44

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
2019	$	106	$	49
2020	115		45
2021	123		48
2022	133		51
2023	143		58
2024 – 2028	890		323
Total	$	1,510	$	574