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Pensions and Other Benefit Plans (Tables)
 12 Months Ended
Dec. 29, 2019
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 for 2019, 2018 and 2017 include the following components:
 
 
Retirement Plans
 
Other Benefit Plans
(Dollars in Millions)
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Service cost
 
$
1,163

 
1,283

 
1,080

 
274

 
269

 
247

Interest cost
 
1,096

 
996

 
927

 
185

 
148

 
159

Expected return on plan assets
 
(2,322
)
 
(2,212
)
 
(2,041
)
 
(6
)
 
(7
)
 
(6
)
Amortization of prior service cost (credit)
 
4

 
3

 
2

 
(31
)
 
(31
)
 
(30
)
Recognized actuarial losses
 
579

 
852

 
609

 
129

 
123

 
138

Curtailments and settlements
 
73

 
1

 
17

 
—

 
—

 
—

Net periodic benefit cost
 
$
593

 
923

 
594

 
551

 
502

 
508
Amounts Expected to be Recognized in Net Periodic Benefit Cost
Amounts expected to be recognized in net periodic benefit cost in the coming year for the Company’s defined benefit retirement plans and other post-retirement plans:
(Dollars in Millions)
 
Amortization of net transition obligation
$
—

Amortization of net actuarial losses
1,022

Amortization of prior service credit
29
Rates Used to Develop Actuarial Present Value of Projected Benefit Obligation
The following table represents the weighted-average actuarial assumptions:
 
 
Retirement Plans
 
Other Benefit Plans
Worldwide Benefit Plans
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
Service cost discount rate
 
3.63
%
 
3.20
 
3.59
 
4.45
 
3.85
 
4.63
Interest cost discount rate
 
4.13
%
 
3.60
 
3.98
 
4.25
 
3.62
 
3.94
Rate of increase in compensation levels
 
3.99
%
 
3.98
 
4.01
 
4.29
 
4.29
 
4.31
Expected long-term rate of return on plan assets
 
8.31
%
 
8.46
 
8.43
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit Obligation
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
2.91
%
 
3.76
 
3.30
 
3.39
 
4.40
 
3.78
Rate of increase in compensation levels
 
4.01
%
 
3.97
 
3.99
 
4.29
 
4.29
 
4.30
Assumed Health Care Cost Trend Rates
The following table displays the assumed health care cost trend rates, for all individuals:
Health Care Plans
 
2019
 
2018
Health care cost trend rate assumed for next year
 
5.87
%
 
6.12
%
Rate to which the cost trend rate is assumed to decline (ultimate trend)
 
4.50
%
 
4.55
%
Year the rate reaches the ultimate trend rate
 
2040

 
2038
Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates
A one-percentage-point change in assumed health care cost trend rates would have the following effect:
 
 
One-Percentage-
 
One-Percentage-
(Dollars in Millions)
 
Point Increase
 
Point Decrease
Health Care Plans
 
 

 
 

Total interest and service cost
 
$
21

 
(17
)
Post-retirement benefit obligation
 
$
296

 
(246
)
Schedule of Net Funded Status

The following table sets forth information related to the benefit obligation and the fair value of plan assets at year-end 2019 and 2018 for the Company’s defined benefit retirement plans and other post-retirement plans:
 
 
Retirement Plans
 
Other Benefit Plans
(Dollars in Millions)
 
2019
 
2018
 
2019
 
2018
Change in Benefit Obligation
 
 
 
 
 
 
 
 
Projected benefit obligation — beginning of year
 
$
31,670

 
33,221

 
4,480

 
4,582

Service cost
 
1,163

 
1,283

 
274

 
269

Interest cost
 
1,096

 
996

 
185

 
148

Plan participant contributions
 
63

 
66

 
—

 
—

Amendments
 
—

 
26

 
—

 
—

Actuarial (gains) losses
 
5,178

 
(2,326
)
 
562

 
(119
)
Divestitures & acquisitions
 
(278
)
 
(29
)
 
—

 
—

Curtailments, settlements & restructuring
 
(172
)
 
(21
)
 
—

 
—

Benefits paid from plan assets*
 
(1,555
)
 
(1,018
)
 
(431
)
 
(383
)
Effect of exchange rates
 
23

 
(528
)
 
6

 
(17
)
Projected benefit obligation — end of year
 
$
37,188

 
31,670

 
5,076

 
4,480

Change in Plan Assets
 
 
 
 
 
 
 
 
Plan assets at fair value — beginning of year
 
$
26,818

 
28,404

 
180

 
281

Actual return on plan assets
 
6,185

 
(1,269
)
 
19

 
—

Company contributions
 
908

 
1,140

 
347

 
282

Plan participant contributions
 
63

 
66

 
—

 
—

Settlements
 
(16
)
 
(13
)
 
—

 
—

Divestitures & acquisitions
 
(274
)
 
(17
)
 
—

 
—

Benefits paid from plan assets*
 
(1,555
)
 
(1,018
)
 
(431
)
 
(383
)
Effect of exchange rates
 
72

 
(475
)
 
—

 
—

Plan assets at fair value — end of year
 
$
32,201

 
26,818

 
115

 
180

Funded status — end of year
 
$
(4,987
)
 
(4,852
)
 
(4,961
)
 
(4,300
)
Amounts Recognized in the Company’s Balance Sheet consist of the following:
 
 
 
 
 
 
 
 
Non-current assets
 
$
551

 
475

 
—

 
—

Current liabilities
 
(113
)
 
(98
)
 
(397
)
 
(281
)
Non-current liabilities
 
(5,425
)
 
(5,229
)
 
(4,564
)
 
(4,019
)
Total recognized in the consolidated balance sheet — end of year
 
$
(4,987
)
 
(4,852
)
 
(4,961
)
 
(4,300
)
Amounts Recognized in Accumulated Other Comprehensive Income consist of the following:
 
 
 
 
 
 
 
 
Net actuarial loss
 
$
8,835

 
8,323

 
1,685

 
1,263

Prior service cost (credit)
 
(8
)
 
2

 
(75
)
 
(106
)
Unrecognized net transition obligation
 
—

 
—

 
—

 
—

Total before tax effects
 
$
8,827

 
8,325

 
1,610

 
1,157

 
 
 
 
 
 
 
 
 
Accumulated Benefit Obligations — end of year
 
$
33,416

 
28,533

 
 
 
 
 
 
 
 
 
 
 
 
 
*In 2019, the Company offered a voluntary lump-sum payment option for certain eligible former employees who are vested participants of the U.S. Qualified Defined Benefit Pension Plan. The distribution of the lump-sums was completed by the end of fiscal 2019. The amount distributed in 2019 was approximately $514 million.

 
 
Retirement Plans
 
Other Benefit Plans
(Dollars in Millions)
 
2019
 
2018
 
2019
 
2018
Amounts Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
 
 
 
 
 
 
 
 
Net periodic benefit cost
 
$
593

 
923

 
551

 
502

Net actuarial (gain) loss
 
1,084

 
1,153

 
550

 
(111
)
Amortization of net actuarial loss
 
(579
)
 
(852
)
 
(129
)
 
(123
)
Prior service cost (credit)
 
—

 
26

 
—

 
—

Amortization of prior service (cost) credit
 
(4
)
 
(3
)
 
31

 
31

Effect of exchange rates
 
1

 
(114
)
 
1

 
(3
)
Total loss/(income) recognized in other comprehensive income, before tax
 
$
502

 
210

 
453

 
(206
)
Total recognized in net periodic benefit cost and other comprehensive income
 
$
1,095

 
1,133

 
1,004

 
296
Information Related to the Benefit Obligation and the Fair Value of Plan Assets
The following table displays the funded status of the Company's U.S. Qualified & Non-Qualified pension plans and international funded and unfunded pension plans at December 31, 2019 and December 31, 2018, respectively:

 
U.S. Plans
International Plans
 
Qualified Plans
Non-Qualified Plans
Funded Plans
Unfunded Plans
(Dollars in Millions)
2019
2018
2019
2018
2019
2018
2019
2018
Plan Assets
$
21,398

17,725

—

—

10,803

9,093

—

—

Projected Benefit Obligation
22,034

18,609

2,544

2,176

12,132

10,467

478

418

Accumulated Benefit Obligation
19,831

16,851

2,115

1,793

11,040

9,510

430

379

Over (Under) Funded Status
 
 
 
 
 
 
 
 
Projected Benefit Obligation
$
(636
)
(884
)
(2,544
)
(2,176
)
(1,329
)
(1,374
)
(478
)
(418
)
Accumulated Benefit Obligation
1,567

874

(2,115
)
(1,793
)
(237
)
(417
)
(430
)
(379
)
Projected Future Benefit Payments from Company's Retirement and Other Benefit Plans
The following table displays the projected future benefit payments from the Company’s retirement and other benefit plans:
(Dollars in Millions)
 
2020
 
2021
 
2022
 
2023
 
2024
 
2025-2029
Projected future benefit payments
 
 
 
 
 
 
 
 
 
 
 
 
Retirement plans
 
$
1,126

 
1,172

 
1,234

 
1,323

 
1,359

 
7,945

Other benefit plans 
 
$
437

 
450

 
466

 
479

 
494

 
2,356
Projected Future Minimum Contributions to the Company's U.S. and International Unfunded Retirement Plans
The following table displays the projected future minimum contributions to the unfunded retirement plans. These amounts do not include any discretionary contributions that the Company may elect to make in the future.
(Dollars in Millions)
 
2020
 
2021
 
2022
 
2023
 
2024
 
2025-2029
Projected future contributions
 
$
103

 
107

 
113

 
118

 
127

 
749
Company' Retirement Plan Asset Allocation and Target Allocations
The Company’s retirement plan asset allocation at the end of 2019 and 2018 and target allocations for 2020 are as follows:
 
 
Percent of
Plan Assets
 
Target
Allocation
 
 
2019
 
2018
 
2020
Worldwide Retirement Plans
 
 
 
 
 
 
Equity securities
 
74
%
 
71
%
 
69
%
Debt securities
 
26

 
29

 
31

Total plan assets
 
100
%
 
100
%
 
100
%
Schedule of Defined Benefit Plans Disclosures
The following table sets forth the Retirement Plans' investments measured at fair value as of December 31, 2019 and December 31, 2018:
 
 
Quoted Prices
in Active
Markets for
Identical Assets
 
Significant
Other
Observable
Inputs
 
Significant
Unobservable
Inputs(a)
 
Investments Measured at Net Asset Value
 
 
 
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
Total Assets
(Dollars in Millions)
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Short-term investment funds
 
$
119

 
122

 
405

 
529

 
—

 
—

 
—

 
—

 
524

 
651

Government and agency securities
 
—

 
—

 
4,140

 
3,595

 
—

 
—

 
—

 
—

 
4,140

 
3,595

Debt instruments
 
—

 
—

 
3,452

 
3,105

 
—

 
—

 
—

 
—

 
3,452

 
3,105

Equity securities
 
12,483

 
11,298

 
2

 
4

 
—

 
—

 
—

 
—

 
12,485

 
11,302

Commingled funds
 
—

 
—

 
3,338

 
2,304

 
181

 
133

 
7,580

 
5,201

 
11,099

 
7,638

Insurance contracts
 
—

 
—

 
—

 
—

 
19

 
193

 
—

 
—

 
19

 
193

Other assets
 
—

 
—

 
9

 
33

 
—

 
—

 
473

 
301

 
482

 
334

Investments at fair value
 
$
12,602

 
11,420

 
11,346

 
9,570

 
200

 
326

 
8,053

 
5,502

 
32,201

 
26,818



(a) The activity for the Level 3 assets is not significant for all years presented.