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Pension And Postretirement Benefits
 12 Months Ended
Jul. 28, 2024
Retirement Benefits [Abstract]  
Pension And Postretirement Benefits Pension and Postretirement Benefits
Pension Benefits — We sponsor a number of noncontributory defined benefit pension plans to provide retirement benefits to eligible U.S. and non-U.S. employees. The benefits provided under these plans are based primarily on years of service and compensation levels. Benefits are paid from funds previously provided to trustees or are paid directly by us from general funds. In 1999, we implemented significant amendments to certain U.S. pension plans. Under a new formula, retirement benefits are determined based on percentages of annual pay and age. To minimize the impact of converting to the new formula, service and earnings credit continued to accrue for fifteen years for certain active employees participating in the plans under the old formula prior to the amendments. Employees will receive the benefit from either the new or old formula, whichever is higher. Effective as of January 1, 2011, our U.S. pension plans were amended so that employees hired or rehired on or after that date and who are not covered by collective bargaining agreements will not be eligible to participate in the plans. All collective bargaining units adopted this amendment by December 31, 2011.
In June 2023, we settled $245 million of our pension benefit obligations associated with approximately 6,000 retired participants that were receiving benefits within our U.S. defined benefit pension plans. A group annuity contract was purchased on behalf of these participants with a third-party insurance provider and funded directly by $241 million from the assets of our pension plans, resulting in an actuarial gain of $4 million.
Postretirement Benefits — We provide postretirement benefits, including health care and life insurance to eligible retired U.S. employees, and where applicable, their dependents. Accordingly, we sponsor a retiree medical program for eligible retired U.S. employees and fund applicable retiree medical accounts intended to provide reimbursement for eligible health care expenses on a tax-favored basis for retirees who satisfy certain eligibility requirements. Effective as of January 1, 2019, we no longer sponsor our own retiree medical coverage for substantially all retired U.S. employees that are Medicare eligible. Instead, we offer these Medicare-eligible retirees access to health care coverage through a private exchange and offer a health reimbursement account to subsidize benefits for a select group of such retirees. We also provide postretirement life insurance to all eligible U.S. employees who retired prior to January 1, 2018, as well as certain eligible retired employees covered by one of our collective bargaining agreements who retired prior to January 1, 2023.
Determining net periodic benefit expense (income) is dependent on various actuarial assumptions, including discount rates, expected return on plan assets, compensation increases, turnover rates and health care trend rates. Actuarial gains and losses are recognized immediately in Other expenses / (income) in the Consolidated Statements of Earnings as of the measurement date, which is our fiscal year end, or more frequently if an interim remeasurement is required. We use the fair value of plan assets to calculate the expected return on plan assets.
Components of net periodic benefit expense (income) were as follows:
PensionPostretirement
(Millions)202420232022202420232022
Service cost$13 $13 $16 $— $— $— 
Interest cost65 73 49 8 7 3 
Expected return on plan assets(80)(100)(118)— — — 
Amortization of prior service credit— 1 — — (1)(1)
Actuarial losses (gains)33 (6)80 — (9)(36)
Net periodic benefit expense (income)$31 $(19)$27 $8 $(3)$(34)
The components of net periodic benefit expense (income) other than the service cost component are included in Other expenses / (income) in the Consolidated Statements of Earnings.
The pension actuarial losses recognized in 2024 were primarily due to decreases in discount rates used to determine the benefit obligation and plan experience, partially offset by gains on plan assets. The pension actuarial gains recognized in 2023 were primarily due to increases in discount rates used to determine the benefit obligation and the gain from the annuity settlement, partially offset by losses on plan assets and plan experience. The pension actuarial losses recognized in 2022 were primarily due to losses on plan assets, partially offset by increases in discount rates used to determine the benefit obligation.
The postretirement actuarial gains recognized in 2023 and 2022 were primarily due to increases in discount rates used to determine the benefit obligation.
Change in benefit obligation:
PensionPostretirement
(Millions)2024202320242023
Obligation at beginning of year$1,257 $1,737 $153 $172 
Service cost13 13 — — 
Interest cost65 73 8 7 
Actuarial losses (gains)38 (108)— (9)
Benefits paid(101)(104)(16)(17)
Settlements— (352)— — 
Other(1)— — — 
Foreign currency adjustment(4)(2)— — 
Benefit obligation at end of year$1,267 $1,257 $145 $153 
Change in the fair value of pension plan assets:
(Millions)20242023
Fair value at beginning of year$1,316 $1,763 
Actual return on plan assets86 (1)
Employer contributions1 1 
Benefits paid(91)(91)
Settlements— (352)
Foreign currency adjustment(5)(4)
Fair value at end of year$1,307 $1,316 
Net amounts recognized in the Consolidated Balance Sheets:
 PensionPostretirement
(Millions)2024202320242023
Other assets$143 $164 $— $— 
Accrued liabilities10 10 17 18 
Other liabilities93 95 128 135 
Net amounts recognized asset / (liability)$40 $59 $(145)$(153)
Amounts recognized in Accumulated other comprehensive income (loss) consist of:
(Millions)Postretirement
20242023
Prior service credit (cost)$3 $3 
The following table provides information for pension plans with projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets:
(Millions)20242023
Projected benefit obligation$103 $105 
Accumulated benefit obligation$102 $104 
Fair value of plan assets$— $— 
The accumulated benefit obligation for all pension plans was $1.247 billion at July 28, 2024, and $1.24 billion at July 30, 2023.
Weighted-average assumptions used to determine benefit obligations at the end of the year:
 PensionPostretirement
 2024202320242023
Discount rate5.28%5.46%5.23%5.47%
Rate of compensation increase3.23%3.23%3.25%3.25%
Interest crediting rate4.00%4.00%Not applicable
Weighted-average assumptions used to determine net periodic benefit cost for the years ended:
 Pension
 202420232022
Discount rate5.46%5.03%3.13%
Expected return on plan assets6.38%6.40%5.82%
Rate of compensation increase3.23%3.23%3.23%
Interest crediting rate4.00%4.00%4.00%
The discount rate is established as of the measurement date. In establishing the discount rate, we review published market indices of high-quality debt securities, adjusted as appropriate for duration. In addition, independent actuaries apply high-quality bond yield curves to the expected benefit payments of the plans. The expected return on plan assets is a long-term assumption based upon historical experience and expected future performance, considering our current and projected investment mix. This estimate is based on an estimate of future inflation, long-term projected real returns for each asset class and a premium for active management.
The discount rate used to determine net periodic postretirement expense was 5.47% in 2024, 4.48% in 2023, and 2.37% in 2022.
Assumed health care cost trend rates at the end of the year:
 20242023
Health care cost trend rate assumed for next year6.50%6.50%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)5.00%5.00%
Year that the rate reaches the ultimate trend rate20302030
Pension Plan Assets
The fundamental goal underlying the investment policy is to ensure that the assets of the plans are invested in a prudent manner to earn a rate of return over time to meet the obligations of the plans as these obligations come due. The primary investment objectives include providing a total return which will promote the goal of benefit security by attaining an appropriate ratio of plan assets to plan obligations, to provide for real asset growth while also tracking plan obligations, to diversify investments across and within asset classes, to reduce volatility of pension assets relative to pension liabilities, and to follow investment practices that comply with applicable laws and regulations.
The primary policy objectives will be met by investing assets to achieve a reasonable tradeoff between return and risk relative to plan obligations, including investing a portion of the assets in funds selected in part to hedge the interest rate sensitivity to plan obligations.
The portfolio includes investments in the following asset classes: fixed income, equity, real estate and alternatives. Fixed income investments provide a moderate expected return and hedge the exposure to interest rate risk of the plans’ obligations. Equities are used for their high expected return. Additional asset classes are used to provide diversification.
Asset allocation is monitored on an ongoing basis relative to the established asset class targets. The interaction between plan assets and benefit obligations is periodically studied to assist in the establishment of strategic asset allocation targets. A key element of our investment strategy is to reduce our funded status risk in part through appropriate asset allocation within our plan assets. The investment policy permits variances from the targets within certain parameters. Asset rebalancing occurs when the underlying asset class allocations move outside these parameters, at which time the asset allocation is rebalanced back to the policy target weight.
Our year-end pension plan weighted-average asset allocations by category were:
 Strategic Target20242023
Equity securities20%20%27%
Debt securities74%73%66%
Real estate and other6%7%7%
Total100%100%100%
Pension plan assets are categorized based on the following fair value hierarchy:
•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
•Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data.
•Level 3: Unobservable inputs, which are valued based on our estimates of assumptions that market participants would use in pricing the asset or liability.
The following table presents our pension plan assets by asset category at July 28, 2024, and July 30, 2023:
 
Fair Value
as of
July 28, 2024
Fair Value Measurements at
July 28, 2024 Using
Fair Value Hierarchy
Fair Value
as of
July 30, 2023
Fair Value Measurements at
July 30, 2023 Using
Fair Value Hierarchy
(Millions)Level 1Level 2Level 3Level 1Level 2Level 3
Short-term investments
$3 $1 $2 $— $7 $3 $4 $— 
Equities:
U.S.1 — 1 — 53 51 2 — 
Non-U.S.— — — — 116 115 1 — 
Corporate bonds:
U.S.416 — 416 — 448 — 448 — 
Non-U.S.85 — 85 — 87 — 87 — 
Government and agency bonds:
U.S.326 — 326 — 183 — 183 — 
Non-U.S.16 — 16 — 14 — 14 — 
Municipal bonds4 — 4 — 15 — 15 — 
Mortgage and asset backed securities
— — — — 19 — 19 — 
Real estate1 — — 1 2 1 — 1 
Hedge funds7 — — 7 8 — — 8 
Derivative assets1 — 1 — 4 — 4 — 
Derivative liabilities(1)— (1)— (3)— (3)— 
Total assets at fair value
$859 $1 $850 $8 $953 $170 $774 $9 
Investments measured at net asset value:
Short-term investments
$46 $69 
Commingled equity funds259 158 
Commingled fixed income funds77 79 
Real estate65 73 
Hedge funds— 2 
Total investments measured at net asset value:
$447 $381 
Other items to reconcile to fair value
1 (18)
Total pension plan assets at fair value
$1,307 $1,316 
Short-term investments — Investments include cash and cash equivalents, and various short-term debt instruments and short-term investment funds. Institutional short-term investment vehicles valued daily are classified as Level 1 at cost which approximates market value. Short-term debt instruments are classified at Level 2 and are valued based on bid quotations and recent trade data for identical or similar obligations. Other investments valued based upon net asset value are included as a reconciling item to the fair value table.
Equities — Generally common stocks and preferred stocks are classified as Level 1 and are valued using quoted market prices in active markets.
Corporate bonds — These investments are valued based on quoted market prices, yield curves and pricing models using current market rates.
Government and agency bonds — These investments are generally valued based on bid quotations and recent trade data for identical or similar obligations.
Municipal bonds — These investments are valued based on quoted market prices, yield curves and pricing models using current market rates.
Mortgage and asset backed securities — These investments are valued based on prices obtained from third party pricing sources. The prices from third party pricing sources may be based on bid quotes from dealers and recent trade data. Mortgage backed securities are traded in the over-the-counter market.
Real estate — Real estate investments consist of real estate investment trusts, property funds and limited partnerships. Real estate investment trusts are classified as Level 1 and are valued based on quoted market prices. Property funds are classified as either Level 2 or Level 3 depending upon whether liquidity is limited or there are few observable market participant transactions. Property funds are valued based on third party appraisals. Limited partnerships are valued based upon valuations provided by the general partners of the funds. The values of limited partnerships are based upon an assessment of each underlying investment, incorporating valuations that consider the evaluation of financing and sales transactions with third parties, expected cash flows and market-based information, including comparable transactions and performance multiples among other factors. The investments are classified as Level 3 since the valuation is determined using unobservable inputs. Real estate investments valued at net asset value are included as a reconciling item to the fair value table.
Hedge funds — Hedge fund investments include hedge funds valued based upon a net asset value derived from the fair value of underlying securities. Hedge fund investments that are subject to liquidity restrictions or that are based on unobservable inputs are classified as Level 3. Hedge fund investments may include long and short positions in equity and fixed income securities, derivative instruments such as futures and options, commodities and other types of securities. Hedge fund investments valued at net asset value are included as a reconciling item to the fair value table.
Derivatives — Derivative financial instruments include forward currency contracts, futures contracts, options contracts, interest rate swaps and credit default swaps. Derivative financial instruments are classified as Level 2 and are valued based on observable market transactions or prices.
Commingled funds — Investments in commingled funds are not traded in active markets. Commingled funds are valued based on the net asset values of such funds and are included as a reconciling item to the fair value table.
Other items to reconcile to fair value of plan assets included amounts due for securities sold, amounts payable for securities purchased and other payables.
The following table summarizes the changes in fair value of Level 3 investments for the years ended July 28, 2024, and July 30, 2023:
(Millions)Real EstateHedge FundsTotal
Fair value at July 30, 2023
$1 $8 $9 
Actual return on plan assets— (1)(1)
Purchases, sales and settlements, net— — — 
Transfers out of Level 3— — — 
Fair value at July 28, 2024
$1 $7 $8 
(Millions)Real EstateHedge FundsTotal
Fair value at July 31, 2022
$2 $11 $13 
Actual return on plan assets— (1)(1)
Purchases, sales and settlements, net(1)(2)(3)
Transfers out of Level 3— — — 
Fair value at July 30, 2023
$1 $8 $9 
Estimated future benefit payments are as follows:
(Millions)PensionPostretirement
2025$130 $17 
2026$121 $16 
2027$115 $15 
2028$111 $14 
2029$105 $13 
2030-2034$484 $56 
The estimated future benefit payments include payments from funded and unfunded plans.
We do not expect contributions to pension plans to be material in 2025.
Defined Contribution Plans — We sponsor a 401(k) Retirement Plan that covers substantially all U.S. employees and provide a matching contribution of 100% of employee contributions up to 4% of eligible compensation. In addition, for employees not eligible to participate in defined benefit plans that we sponsor, we provide a contribution equal to 3% of eligible
compensation regardless of their participation in the 401(k) Retirement Plan. Amounts charged to Costs and expenses were $73 million in both 2024 and 2023, and $69 million in 2022.