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Pensions and Other Benefit Plans (Tables)
 6 Months Ended
Jul. 02, 2023
Retirement Benefits [Abstract]  
Components of Net Periodic Benefit Cost
Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans sponsored by the Company for 2022, 2021 and 2020 include the following components:
Retirement PlansOther Benefit Plans
(Dollars in Millions)202220212020202220212020
Service cost$8 $7 $6 $— $— $— 
Interest cost4 2 3 — 1 — 
Recognized actuarial losses (gain)4 6 5 — (1)— 
Curtailments and settlements— — 1 — — — 
Expected return on plan assets(1)— — — — — 
Net periodic benefit cost
$15 $15 $15 $— $— $— 
Net periodic benefit costs for the Company’s defined benefit retirement plans sponsored by the Company for the fiscal three and six months ended July 2, 2023 and July 3, 2022, included the following components:
Fiscal Three Months EndedFiscal Six Months Ended
(Dollars in Millions)July 2, 2023July 3, 2022July 2, 2023July 3, 2022
Service cost$5 $2 $10 $4 
Interest cost7 1 10 2 
Recognized actuarial gain— 1 — 2 
Expected return on plan assets(7)— (10)— 
Net periodic benefit cost
$5 $4 $10 $8 
Defined Benefit Plan, Assumptions
The following table represents the weighted-average actuarial assumptions:
Retirement PlansOther Benefit Plans
Worldwide Benefit Plans202220212020202220212020
Net Periodic Benefit Cost
Service cost discount rate2.3 %1.2 %1.5 %— %— %— %
Interest cost discount rate3.1 %0.7 %1.0 %— %— %— %
Rate of increase in compensation levels2.5 %2.7 %2.7 %— %— %— %
Expected long-term rate of return on plan assets2.9 %2.1 %2.5 %— %— %— %
Benefit Obligation
Discount rate4.2 %1.4 %1.1 %12.3 %11.5 %13.3 %
Rate of increase in compensation levels2.7 %2.7 %2.7 %— %— %— %
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
Retirement PlansOther Benefit Plans
(Dollars in Millions)2022202120222021
Amounts Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
Net periodic benefit cost$15 $15 $— $— 
Net actuarial gain (1)
(82)(21)— — 
Amortization of net actuarial loss(4)(6)— — 
Effect of exchange rates
(6)(7)— 1 
Total (income)/loss recognized in other comprehensive income, before tax
$(92)$(34)$— $1 
Total recognized in net periodic benefit cost and other comprehensive income
$(77)$(19)$— $1 
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(1) The actuarial gain for retirement plans in 2022 was primarily related to increases in discount rates
Schedule of Expected Benefit Payments The following table displays the projected future benefit payments from the Company’s defined benefit retirement plans and other benefit plans:
(Dollars in Millions)20232024202520262027
2028- 2032
Projected future benefit payments
Retirement plans$10 $11 $12 $12 $13 $80 
Other benefit plans$— $— $— $— $— $2 
Defined Benefit Plan, Plan Assets, Allocation
The Company’s retirement plan asset allocation at the end of 2022 and 2021 and target allocations for 2023 are as follows:
Percent of Plan AssetsTarget Allocation
Worldwide Retirement Plans202220212023
Equity securities42 %— %42 %
Debt securities56 %— %56 %
Other assets2 %100 %2 %
Total plan assets100 %100 %100 %
Schedule of Allocation of Plan Assets
The following table sets forth the Retirement Plans' investments measured at fair value as of January 1, 2023 and January 2, 2022:
Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)		Total Assets
(Dollars in Millions)20222021202220212022202120222021
Debt instruments$— $— $9 $— $— $— $9 $— 
Equity securities 9 — — — — — 9 — 
Other assets— — — — 1 — 1 — 
Investments at fair value
$9 $— $9 $— $1 $— $19 $— 
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets
The following table sets forth information related to the benefit obligation and the fair value of plan assets at fiscal year-end 2022 and 2021 for the defined benefit retirement plans and other benefit plans sponsored by the Company:
Retirement PlansOther Benefit Plans
(Dollars in Millions)2022202120222021
Change in Benefit Obligation
Projected benefit obligation - beginning of year
$303 $347 $5 $5 
Service cost
8 7 — — 
Interest cost
4 2 — 1 
Actuarial gain (1)
(82)(21)— — 
Curtailments, settlements & restructuring
— — — — 
Benefits paid from plan
(8)(9)— — 
Effect of exchange rates
(19)(23)— (1)
Other (2)
29 — — — 
Projected benefit obligation - end of year
$235 $303 $5 $5 
Change in Plan Assets
Plan assets at fair value - beginning of year
$— $— $— $— 
Company contributions
9 9 — — 
Benefits paid from plan assets
(8)(9)— — 
Actual return on plan assets(1)— — — 
Effect of exchange rates
(2)— — — 
Transfers21 — — 
Plan assets at fair value - end of year
19 — — — 
Funded status - end of year
(216)(303)— — 
Amounts Recognized in the Company’s Balance Sheet consist of the following:
Accrued liabilities
(7)(6)— — 
Employee related obligations - non-current
(209)(297)(5)(5)
Total recognized in the Combined Balance Sheets - end of year
(216)(303)(5)(5)
Amounts Recognized in Accumulated Other Comprehensive Income consist of the following:
Net actuarial (gain) loss
(15)79 (4)(4)
Prior service cost
4 2 — — 
Total before tax effects
(11)81 (4)(4)
Accumulated Benefit Obligations - end of year
$204 $262 $3 $3 
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(1)The actuarial gain for retirement plans in 2022 was primarily related to increases in discount rates
(2)This amount includes $25 million related to new unfunded pension plans included in the balance during 2022 from the Parent and other pension plans. See Note 9.