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PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)
 12 Months Ended
Jun. 29, 2018
Retirement Benefits [Abstract]  
Schedule of Fair Value of Deferred Compensation Plan Investments and Liabilities by Category and Fair Value Hierarchy Level
The following table provides the fair value of our deferred compensation plan investments and liabilities by category and by fair value hierarchy level:
 
 
June 29, 2018
 
June 30, 2017
 
 
Total
 
Level 1
 
Total
 
Level 1
 
 
 
 
 
 
 
 
 
 
 
(In millions)
Assets
 
 
 
 
 
 
 
Deferred compensation plan assets:(1)
 
 
 
 
 
 
 
Equity and fixed income securities
$
46

 
$
46

 
$
37

 
$
37

Investments measured at NAV:
 
 
 
 
 
 
 
Equity and fixed income funds
63

 
 
 
50

 
 
Corporate-owned life insurance
27

 
 
 
25

 
 
Total investments measured at NAV
90

 
 
 
75

 
 
Total fair value of deferred compensation plan assets
$
136

 
 
 
$
112

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
  Deferred compensation plan liabilities:(2)
 
 
 
 
 
 
 
Equity securities and mutual funds
$
38

 
$
38

 
$
46

 
$
46

Investments measured at NAV:
 
 
 
 
 
 
 
Common/collective trusts and guaranteed investment contracts
111

 
 
 
80

 
 
Total fair value of deferred compensation plan liabilities
$
149

 
 
 
$
126

 
 
 
 
 
 
 
 
 
 
 

(1)
Represents diversified assets held in a “rabbi trust” associated with our non-qualified deferred compensation plans, which we include in the “Other current
assets” and “Other non-current assets” line items in our Consolidated Balance Sheet, and which are measured at fair value.
(2)
Primarily represents obligations to pay benefits under certain non-qualified deferred compensation plans, which we include in the “Compensation and
benefits” and “Other long-term liabilities” line items in our Consolidated Balance Sheet. Under these plans, participants designate
investment options (including stock and fixed-income funds), which serve as the basis for measurement of the notional value of their accounts.
Schedule of Funded Status of Defined Benefit Plans
The following table provides a summary of the funded status of our defined benefit plans and the presentation of such balances within our Consolidated Balance Sheet:
 
June 29, 2018
 
June 30, 2017
 
Pension
 
Other
Benefits
 
Total
 
Pension
 
Other
Benefits
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
Fair value of plan assets
$
5,098

 
$
207

 
$
5,305

 
$
4,921

 
$
212

 
$
5,133

Projected benefit obligation
(5,774
)
 
(233
)
 
(6,007
)
 
(6,140
)
 
(265
)
 
(6,405
)
Funded status
$
(676
)
 
$
(26
)
 
$
(702
)
 
$
(1,219
)
 
$
(53
)
 
$
(1,272
)
Consolidated Balance Sheet line item amounts:
 
 
 
 
 
 
 
 
 
 
 
Other non-current assets
$
15

 
$
—

 
$
15

 
$
9

 
$
—

 
$
9

Compensation and benefits
(2
)
 
(1
)
 
(3
)
 
(2
)
 
(1
)
 
(3
)
Defined benefit plans
(689
)
 
(25
)
 
(714
)
 
(1,226
)
 
(52
)
 
(1,278
)
Schedule of Estimated Net Defined Benefits Costs to be Amortized from AOCI
The following table provides the estimated net actuarial gain and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic benefit income during fiscal 2019:
 
Pension
 
Other
Benefits
 
Total
 
 
 
 
 
 
 
(In millions)
Net actuarial gain
$
—

 
$
(6
)
 
$
(6
)
Prior service cost
1

 
—

 
1

 
$
1

 
$
(6
)
 
$
(5
)
The following table provides a summary of pre-tax amounts recorded within accumulated other comprehensive loss:
 
June 29, 2018
 
June 30, 2017
 
Pension
 
Other
Benefits
 
Total
 
Pension
 
Other
Benefits
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
Net actuarial loss (gain)
$
156

 
$
(46
)
 
$
110

 
$
262

 
$
(28
)
 
$
234

Net prior service cost (credit)
4

 
(1
)
 
3

 
2

 
(1
)
 
1

 
$
160

 
$
(47
)
 
$
113

 
$
264

 
$
(29
)
 
$
235
Schedule of Roll-forward of Projected Benefit Obligation
The following table provides a roll-forward of the projected benefit obligations for our defined benefit plans:
 
 
2018
 
2017
 
 
Pension
 
Other
Benefits
 
Total
 
Pension
 
Other
Benefits
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
Change in benefit obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of fiscal year
$
6,140

 
$
265

 
$
6,405

 
$
6,471

 
$
311

 
$
6,782

Service cost
39

 
1

 
40

 
58

 
1

 
59

Interest cost
195

 
7

 
202

 
184

 
8

 
192

Actuarial gain
(169
)
 
(22
)
 
(191
)
 
(160
)
 
(32
)
 
(192
)
Prior service cost
2

 
—

 
2

 
—

 
—

 
—

Benefits paid
(402
)
 
(18
)
 
(420
)
 
(376
)
 
(22
)
 
(398
)
Expenses paid
(35
)
 
—

 
(35
)
 
(34
)
 
—

 
(34
)
Curtailments(1)
—

 
—

 
—

 
—

 
(1
)
 
(1
)
Foreign exchange
4

 
—

 
4

 
(3
)
 
—

 
(3
)
Benefit obligation at end of fiscal year
$
5,774

 
$
233

 
$
6,007

 
$
6,140

 
$
265

 
$
6,405


_______________
(1)
We divested IT Services during fiscal 2017, which resulted in a curtailment under the Salaried Retiree Medical Plan.
Schedule of Roll-forward of Plan Assets
The following table provides a roll-forward of the assets and the ending funded status of our defined benefit plans:
 
 
2018
 
2017
 
 
Pension
 
Other
Benefits
 
Total
 
Pension
 
Other
Benefits
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
 
(In millions)
Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
Plan assets at beginning of fiscal year
$
4,921

 
$
212

 
$
5,133

 
$
4,273

 
$
216

 
$
4,489

Actual return on plan assets
307

 
14

 
321

 
470

 
22

 
492

Employer contributions
303

 
(1
)
 
302

 
591

 
(4
)
 
587

Benefits paid
(402
)
 
(18
)
 
(420
)
 
(376
)
 
(22
)
 
(398
)
Expenses paid
(35
)
 
—

 
(35
)
 
(34
)
 
—

 
(34
)
Foreign exchange
4

 
—

 
4

 
(3
)
 
—

 
(3
)
Plan assets at end of fiscal year
$
5,098

 
$
207

 
$
5,305

 
$
4,921

 
$
212

 
$
5,133

 
 
 
 
 
 
 
 
 
 
 
 
Funded status at end of fiscal year
$
(676
)
 
$
(26
)
 
$
(702
)
 
$
(1,219
)
 
$
(53
)
 
$
(1,272
)
Schedule of Accumulated Benefit Obligations
The following table provides information for defined benefit pension plans with an accumulated benefit obligation in excess of plan assets:
 
June 29, 2018
 
June 30, 2017
 
 
 
 
 
(In millions)
Projected benefit obligation
$
5,694

 
$
6,061

Accumulated benefit obligation
5,694

 
6,061

Fair value of plan assets
5,004

 
4,833
Schedule of Net Benefit Costs
The following table provides the components of net periodic benefit income and other amounts recognized in other comprehensive income for fiscal 2018, 2017, and 2016 as they pertain to our defined benefit plans:
 
 
Pension
 
Other Benefits
 
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
Net periodic benefit income(1)
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
39

 
$
58

 
$
75

 
$
1

 
$
1

 
$
1

Interest cost
195

 
184

 
245

 
7

 
8

 
13

Expected return on plan assets
(369
)
 
(340
)
 
(347
)
 
(16
)
 
(17
)
 
(18
)
Amortization of prior service credit
—

 
—

 
—

 
—

 
—

 
(5
)
Amortization of net actuarial loss (gain)
—

 
1

 
1

 
(1
)
 
—

 
1

Net periodic benefit income
(135
)
 
(97
)
 
(26
)
 
(9
)
 
(8
)
 
(8
)
Effect of curtailments or settlements(2)
—

 
—

 
1

 
—

 
—

 
(121
)
Total net periodic benefit income
$
(135
)
 
$
(97
)
 
$
(25
)
 
$
(9
)
 
$
(8
)
 
$
(129
)
Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income)
 
 
 
 
 
 
 
 
 
 
 
Net actuarial loss (gain)
$
(106
)
 
$
(284
)
 
$
645

 
$
(20
)
 
$
(38
)
 
$
15

Prior service cost (credit)(2)
2

 
—

 
3

 
—

 
—

 
(121
)
Amortization of prior service credit
—

 
—

 
—

 
1

 
—

 
126

Amortization of net actuarial loss
—

 
(1
)
 
(1
)
 
—

 
—

 
(2
)
Total change recognized in other comprehensive loss (income)
(104
)
 
(285
)
 
647

 
(19
)
 
(38
)
 
18

Total impact from net periodic benefit cost and changes in other comprehensive loss (income)
$
(239
)
 
$
(382
)
 
$
622

 
$
(28
)
 
$
(46
)
 
$
(111
)

_______________
(1) Net periodic benefit income presented in this table includes both continuing and discontinued operations. $2 million and $4 million of the service cost component of net periodic benefit income is included as a component of the “Discontinued operations, net of income taxes” line item in our Consolidated Statement of Income for fiscal 2017 and fiscal 2016, respectively.
(2) We discontinued certain significantly underfunded post-employment benefit plans effective December 31, 2015. Under GAAP, this resulted in a negative plan amendment, curtailment and settlement during fiscal 2016.
Schedule of Weighted-average Assumptions Used
The following tables provide the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost, as they pertain to our defined benefit pension plans:
Obligation assumptions as of:
June 29, 2018
 
June 30, 2017
 
 
Discount rate
4.05
%
 
3.76
%
 
 
Rate of future compensation increase
2.76
%
 
2.76
%
 
 
 
 
 
 
 
 
Cost assumptions for fiscal years:
2018
 
2017
 
2016
Discount rate to determine service cost
3.48
%
 
3.80
%
 
4.06
%
Discount rate to determine interest cost
3.28
%
 
2.94
%
 
4.06
%
Expected return on plan assets
7.66
%
 
7.65
%
 
7.91
%
Rate of future compensation increase
2.76
%
 
2.75
%
 
2.76
%
The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost, as they pertain to our other postretirement defined benefit plans:
Obligation assumptions as of:
June 29, 2018
 
June 30, 2017
 
 
Discount rate
3.99
%
 
3.63
%
 
 
Rate of future compensation increase
N/A

 
N/A

 
 
 
 
 
 
 
 
Cost assumptions for fiscal year:
2018
 
2017
 
2016
Discount rate to determine service cost
3.62
%
 
3.52
%
 
3.86
%
Discount rate to determine interest cost
3.04
%
 
2.60
%
 
3.86
%
Rate of future compensation increase
N/A

 
N/A

 
2.75
%
Schedule of Strategic Target Asset Allocation and Fair Value of Plan Assets
The following table provides the current strategic target asset allocation ranges by asset category:
 
Target Asset
Allocation
Equity investments
45
%
—
75%
Fixed income investments
20
%
—
42%
Hedge funds
5
%
—
15%
Cash and cash equivalents
0
%
—
10%
The following table provides the fair value of plan assets held by our defined benefit plans by asset category and by fair value hierarchy level:
 
June 29, 2018
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
 
 
 
 
(In millions)
Asset Category
 
 
 
 
 
 
 
Equities:
 
 
 
 
 
 
 
Domestic equities
$
1,221

 
$
1,189

 
$
32

 
$
—

International equities
903

 
899

 
4

 
—

Alternative investments:
 
 
 
 
 
 
 
Private equity funds
401

 
—

 
—

 
401

Hedge funds
187

 
—

 
—

 
187

Fixed income:
 
 
 
 
 
 
 
Corporate bonds
812

 
—

 
801

 
11

Government securities
335

 
—

 
335

 
—

Other
1

 
—

 
—

 
1

Cash and cash equivalents
209

 
6

 
203

 
—

Total
4,069

 
$
2,094

 
$
1,375

 
$
600

Investments Measured at NAV
 
 
 
 
 
 
 
Equity funds
714

 
 
 
 
 
 
Fixed Income funds
318

 
 
 
 
 
 
Hedge Funds
208

 
 
 
 
 
 
Total Investments Measured at NAV
1,240

 
 
 
 
 
 
Payables, net
(4
)
 
 
 
 
 
 
Total fair value of plan assets
$
5,305

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2017
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
 
 
 
 
 
 
 
(In millions)
Asset Category
 
 
 
 
 
 
 
Equities:
 
 
 
 
 
 
 
Domestic equities
$
1,062

 
$
1,032

 
$
30

 
$
—

International equities
838

 
834

 
4

 
—

Alternative investments:

 
 
 
 
 
 
Private equity funds
522

 
—

 
—

 
522

Hedge funds
242

 
—

 
—

 
242

Fixed income:

 
 
 
 
 
 
Corporate bonds
611

 
—

 
611

 
—

Government securities
241

 
—

 
241

 
—

Other
2

 
—

 
—

 
2

Cash and cash equivalents
597

 
1

 
596

 
—

Total
4,115

 
$
1,867

 
$
1,482

 
$
766

Investments Measured at NAV
 
 
 
 
 
 
 
Equity funds
632

 
 
 
 
 
 
Fixed Income funds
288

 
 
 
 
 
 
Total Investments Measured at NAV
920

 
 
 
 
 
 
Receivables, net
98

 
 
 
 
 
 
Total fair value of plan assets
$
5,133

 
 
 
 
 
 
Schedule of Reconciliation of Defined Benefit Plan Assets Using Level 3 To Measure Fair Value
The following table presents a reconciliation of the beginning and ending defined benefit plan asset balances that use significant unobservable inputs (Level 3) to measure fair value:
 
Private
Equity Funds
 
Hedge Funds
 
Fixed Income
 
Other
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
 
 
 
 
Level 3 balance — July 1, 2016
$
700

 
$
282

 
$
—

 
$
2

 
$
984

Realized gains (losses), net
78

 
(23
)
 
—

 
—

 
55

Unrealized gains (losses), net
(71
)
 
49

 
—

 
—

 
(22
)
Sales, net
(185
)
 
(66
)
 
—

 
—

 
(251
)
Level 3 balance — June 30, 2017
522

 
242

 
—

 
2

 
766

Realized gains (losses), net
47

 
8

 
—

 
—

 
55

Unrealized gains (losses), net
(25
)
 
(4
)
 
—

 
—

 
(29
)
Sales, net
(144
)
 
(59
)
 
11

 
—

 
(192
)
Level 3 balance — June 29, 2018
$
400

 
$
187

 
$
11

 
$
2

 
$
600
Schedule of Estimated Future Benefit Payments
The following table provides the projected timing of payments for benefits earned to date and benefits expected to be earned for future service by current active employees under our defined benefit plans:
 
 
Pension
 
Other
    Benefits(1)
 
Total
 
 
 
 
 
 
 
 
 
(In millions)
Fiscal Years:
 
 
 
 
 
2019
$
400

 
$
24

 
$
424

2020
384

 
24

 
408

2021
385

 
23

 
408

2022
384

 
22

 
406

2023
382

 
22

 
404

2024 — 2028
1,854

 
89

 
1,943


_______________
(1)
Projected payments for Other Benefits reflect gross payments from the Company, excluding subsidies, which are expected to approximate 10 percent of gross payments.