Pensions and Other Benefit Plans

6 Months Ended

Jul. 03, 2022

Retirement Benefits [Abstract]

Pensions and Other Benefit Plans

PENSIONS AND OTHER BENEFIT PLANS

Components of Net Periodic Benefit Cost

Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans include the following components:

	Fiscal Second Quarter Ended					Fiscal Six Months Ended
	Retirement Plans			Other Benefit Plans		Retirement Plans		Other Benefit Plans
(Dollars in Millions)	July 3, 2022		July 4, 2021	July 3, 2022	July 4, 2021	July 3, 2022	July 4, 2021	July 3, 2022	July 4, 2021
Service cost	$	319	327	80	77	640	680	160	154
Interest cost	229		193	27	21	459	386	53	41
Expected return on plan assets	(693)		(647)	(2)	(2)	(1,392)	(1,327)	(4)	(4)
Amortization of prior service cost/(credit)	(46)		(45)	(2)	(7)	(92)	(90)	(3)	(15)
Recognized actuarial losses	167		316	31	37	329	630	61	75
Curtailments and settlements	—		—	—	—	1	1	—	—
Net periodic benefit cost/(credit)	$	(24)	144	134	126	(55)	280	267	251

The service cost component of net periodic benefit cost is presented in the same line items on the Consolidated Statement of Earnings where other employee compensation costs are reported, including Cost of products sold, Research and development expense, and Selling, marketing and administrative expenses. All other components of net periodic benefit cost are presented as part of Other (income) expense, net on the Consolidated Statement of Earnings.

Company Contributions

For the fiscal six months ended July 3, 2022, the Company contributed $54 million and $10 million to its U.S. and international retirement plans, respectively. The Company plans to continue to fund its U.S. defined benefit plans to comply with the Pension Protection Act of 2006. International plans are funded in accordance with local regulations.