Pensions and Other Benefit Plans

3 Months Ended

Mar. 31, 2024

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 First Quarter Ended
	Retirement Plans		Other Benefit Plans
(Dollars in Millions)	March 31, 2024	April 2, 2023	March 31, 2024	April 2, 2023
Service cost	$224	210	69	68
Interest cost	352	352	52	54
Expected return on plan assets	(642)	(668)	(2)	(1)
Amortization of prior service cost/(credit)	(46)	(46)	—	—
Recognized actuarial (gains)/losses	43	(50)	13	6
Curtailments and settlements	—	—	—	—
Net periodic benefit cost/(credit)	$(69)	(202)	132	127

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, Selling, marketing and administrative expenses, and in the fiscal first quarter of 2023, Net earnings from discontinued operations, net of taxes if related to the separation of Kenvue. 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 three months ended March 31, 2024, the Company contributed $29 million and $3 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.