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PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2021

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:


	December 31, 2021				January 1, 2021
(In millions)	Total		Level 1		Total		Level 1

Assets
Deferred compensation plan assets:(1)
Equity and fixed income securities	$	77	$	77	$	67	$	67
Investments measured at NAV:

Corporate-owned life insurance	35				31

Total fair value of deferred compensation plan assets	$	112			$	98

Liabilities
Deferred compensation plan liabilities:(2)
Equity securities and mutual funds	$	6	$	6	$	4	$	4
Investments measured at NAV:
Common/collective trusts and guaranteed investment contracts	177				116
Total fair value of deferred compensation plan liabilities	$	183			$	120

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(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 and Balance Sheet Information

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:


	December 31, 2021						January 1, 2021
(In millions)	Pension		Other Benefits		Total		Pension		Other Benefits		Total

Fair value of plan assets	$	9,604	$	320	$	9,924	$	9,301	$	299	$	9,600
Projected benefit obligation	(10,007)		(348)		(10,355)		(11,045)		(387)		(11,432)
Funded status	$	(403)	$	(28)	$	(431)	$	(1,744)	$	(88)	$	(1,832)
Consolidated Balance Sheet line item amounts:
Other non-current assets	$	150	$	51	$	201	$	88	$	8	$	96
Compensation and benefits	(11)		(7)		(18)		(10)		(8)		(18)
Liabilities of disposal group held for sale	—		—		—		(4)		—		(4)
Defined benefit plans	(542)		(72)		(614)		(1,818)		(88)		(1,906)

Schedule of Pre-tax Amounts Recognized in Other Comprehensive Income (Loss)

The following table provides a summary of pre-tax amounts recorded within accumulated other comprehensive loss:


	December 31, 2021						January 1, 2021
(In millions)	Pension		Other Benefits		Total		Pension		Other Benefits		Total

Net actuarial loss (gain)	$	209	$	(73)	$	136	$	1,215	$	(28)	$	1,187
Net prior service (credit) cost	(218)		6		(212)		(253)		7		(246)
	$	(9)	$	(67)	$	(76)	$	962	$	(21)	$	941

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:


	December 31, 2021						January 1, 2021
(In millions)	Pension		Other Benefits		Total		Pension		Other Benefits		Total

Change in benefit obligation
Benefit obligation at beginning of fiscal year	$	11,045	$	387	$	11,432	$	10,268	$	369	$	10,637

Service cost	66		2		68		65		2		67
Interest cost	188		5		193		273		10		283
Actuarial (gain) loss	(381)		(22)		(403)		1,035		24		1,059

Benefits paid	(555)		(24)		(579)		(569)		(26)		(595)
Settlements	(268)		—		(268)		—		—		—

Expenses paid	(31)		—		(31)		(42)		—		(42)



Divestiture	(65)		—		(65)		—		—		—
Other	8		—		8		15		8		23
Benefit obligation at end of fiscal year	$	10,007	$	348	$	10,355	$	11,045	$	387	$	11,432

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:


	December 31, 2021						January 1, 2021
(In millions)	Pension		Other Benefits		Total		Pension		Other Benefits		Total

Change in plan assets
Plan assets at beginning of fiscal year	$	9,301	$	299	$	9,600	$	8,618	$	274	$	8,892

Actual return on plan assets	1,215		43		1,258		1,263		40		1,303
Employer contributions	17		2		19		20		11		31
Benefits paid	(555)		(24)		(579)		(569)		(26)		(595)
Settlements	(268)		—		(268)		—		—		—
Expenses paid	(31)		—		(31)		(42)		—		(42)


Divestiture	(78)		—		(78)		—		—		—
Other	3		—		3		11		—		11
Plan assets at end of fiscal year	$	9,604	$	320	$	9,924	$	9,301	$	299	$	9,600

Funded status at end of fiscal year	$	(403)	$	(28)	$	(431)	$	(1,744)	$	(88)	$	(1,832)

Schedule of Accumulated Benefit Obligations

The following tables provide information for benefit plans with accumulated benefit obligations in excess of plan assets and benefit plans with projected benefit obligations in excess of plan assets:

December 31, 2021

January 1, 2021

(In millions)

Pension

Other
Benefits

Pension

Other
Benefits

Accumulated benefit obligation

9,216

N/A

10,469

N/A

Fair value of plan assets

8,672

N/A

8,658

N/A


	December 31, 2021				January 3, 2020
(In millions)	Pension		Other Benefits			Pension		Other Benefits

Projected benefit obligation	$	9,340	$	109		$	10,522	$	181
Fair value of plan assets	8,786		30			8,689		85

Schedule of Components of Net Benefit Income

The following table provides the components of net periodic benefit income and other amounts recognized in other comprehensive income in fiscal 2021 and 2020, the two quarters ended January 3, 2020 and in fiscal 2019 as they pertain to our defined benefit plans:


	Pension
	Fiscal Years Ended				Two Quarters Ended		Fiscal Year Ended
(In millions)	December 31, 2021		January 1, 2021		January 3, 2020		June 28, 2019

Net periodic benefit income
Service cost	$	66	$	65	$	42	$	36
Interest cost	188		273		149		209
Expected return on plan assets	(621)		(630)		(314)		(382)
Amortization of net actuarial loss	30		10		1		—
Amortization of prior service credit	(28)		(28)		(5)		—
Cost for special termination benefits	—		1		—		—
Effect of curtailments or settlements	1		—		(18)		1
Net periodic benefit income	$	(364)	$	(309)	$	(145)	$	(136)
Other changes in plan assets and benefit obligations recognized in other comprehensive loss
Net actuarial (gain) loss	$	(972)	$	403	$	55	$	625

Prior service cost (credit)	2		1		(292)		3
Amortization of net actuarial loss	(30)		(10)		(5)		—
Amortization of prior service credit (cost)	28		28		5		(1)
Currency translation adjustment	1		2		—		—
Recognized prior service credit	4		—		—		—
Recognized net actuarial loss	(4)		—		—		—
Recognized net loss due to divestiture	—		—		(13)		—
Total change recognized in other comprehensive loss	(971)		424		(250)		627
Total impact from net periodic benefit cost and changes in other comprehensive loss	$	(1,335)	$	115	$	(395)	$	491


	Other Benefits
	Fiscal Years Ended				Two Quarters Ended		Fiscal Year Ended
(In millions)	December 31, 2021		January 1, 2021		January 3, 2020		June 28, 2019

Net periodic benefit income
Service cost	$	2	$	2	$	1	$	—
Interest cost	5		10		5		8
Expected return on plan assets	(20)		(21)		(10)		(16)
Amortization of net actuarial loss	—		(3)		(3)		(6)
Amortization of prior service credit	1		—		—		—

Net periodic benefit income	$	(12)	$	(12)	$	(7)	$	(14)
Other changes in plan assets and benefit obligations recognized in other comprehensive loss
Net actuarial loss (gain)	$	(46)	$	4	$	(1)	$	4

Prior service cost	—		8		—		—

Amortization of net actuarial gain	—		3		3		6
Amortization of prior service cost	(1)		—		—		—

Total change recognized in other comprehensive loss	(47)		15		2		10
Total impact from net periodic benefit cost and changes in other comprehensive loss	$	(59)	$	3	$	(5)	$	(4)

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:	December 31, 2021		January 1, 2021
Discount rate	2.75	%	2.31	%
Rate of future compensation increase	3.01	%	3.01	%
Cash balance interest crediting rate	3.50	%	3.50	%

Cost assumptions for fiscal periods ended:	December 31, 2021		January 1, 2021		January 3, 2020		June 28, 2019
Discount rate to determine service cost	2.26	%	2.87	%	3.11	%	3.89	%
Discount rate to determine interest cost	1.80	%	2.74	%	2.94	%	3.75	%
Expected return on plan assets	7.43	%	7.68	%	7.68	%	7.66	%
Rate of future compensation increase	3.01	%	2.80	%	2.97	%	2.76	%
Cash balance interest crediting rate	3.50	%	3.50	%	3.50	%	3.50	%

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:	December 31, 2021		January 1, 2021
Discount rate	2.60	%	2.10	%
Rate of future compensation increase	N/A		N/A

Cost assumptions for fiscal periods ended:	December 31, 2021		January 1, 2021		January 3, 2020		June 28, 2019
Discount rate to determine service cost	2.49	%	3.25	%	3.47	%	4.14	%
Discount rate to determine interest cost	1.42	%	2.55	%	2.74	%	3.62	%
Rate of future compensation increase	N/A		N/A		N/A		N/A

Schedule of Strategic Target Assets 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	40	%	—	60%
Fixed income investments	25	%	—	35%
Alternative investments	10	%	—	25%
Cash and cash equivalents	0	%	—	10%

The following tables provide the fair value of plan assets held by our defined benefit plans by asset category and by fair value hierarchy level:


	December 31, 2021
(In millions)	Total		Level 1		Level 2		Level 3

Asset Category
Equities:
Domestic equities	$	1,684	$	1,684	$	—	$	—
International equities	1,367		1,278		89		—
Real Estate Investment Trusts	259		259		—		—




Fixed income:
Corporate bonds	1,411		—		1,335		76
Government securities	448		—		448		—
Securitized assets	99		—		99		—
Fixed income funds	102		5		97		—

Cash and cash equivalents	337		9		328		—
Total	5,707		$	3,235	$	2,396	$	76
Investments Measured at NAV
Equity funds	2,667
Fixed income funds	444
Hedge funds	386
Private equity funds	559
Real estate funds	180
Other	3
Total Investments Measured at NAV	4,239
Payables, net	(22)
Total fair value of plan assets	$	9,924


	January 1, 2021
(In millions)	Total		Level 1		Level 2		Level 3

Asset Category
Equities:
Domestic equities	$	1,513	$	1,513	$	—	$	—
International equities	1,280		1,280		—		—
Real Estate Investment Trusts	197		197		—		—




Fixed income:
Corporate bonds	1,447		—		1,422		25
Government securities	485		—		485		—
Securitized assets	150		—		150		—
Fixed income funds	119		119		—		—
Other	2		—		—		2
Cash and cash equivalents	202		20		182		—
Total	5,395		$	3,129	$	2,239	$	27
Investments Measured at NAV
Equity funds	3,088
Fixed income funds	532
Hedge funds	321
Private equity funds	312
Other	1
Total Investments Measured at NAV	4,254
Payables, net	(49)
Total fair value of plan assets	$	9,600

Schedule of Expected 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.


(In millions)	Pension		Other Benefits(1)		Total

Fiscal Years:
2022	$	563	$	30	$	593
2023	569		29		598
2024	571		27		598
2025	573		26		599
2026	572		24		596
2027 — 2031	2,780		104		2,884

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(1)Projected payments for Other Benefits reflect net payments from the Company, which include subsidies that reduce the gross payments by less than 10 percent.