XML 51 R36.htm IDEA: XBRL DOCUMENT

RETIREMENT BENEFITS (Tables)

12 Months Ended

Jan. 02, 2026

Schedule of Fair Value of Deferred Compensation Plan Investments and Liabilities by Category and Fair Value Hierarchy Level

The following table summarizes our deferred compensation plan assets and liabilities:


	January 2, 2026				January 3, 2025
(In millions)	Total		Level 1		Total		Level 1

Assets
Equity and fixed income securities	$	255	$	255	$	219	$	219
COLI, measured at NAV	38				41
Deferred compensation plan assets(1)	$	293			$	260

Liabilities
Equity securities	$	15	$	15	$	10	$	10
CCTs and GICs, measured at NAV	431				357
Deferred compensation plan liabilities(2)	$	446			$	367

_______________

(1)Included in the “Other current assets” and “Other non-current assets” line items in our Consolidated Balance Sheet.

(2)Included in the “Compensation and benefits” and “Other non-current liabilities” line items in our Consolidated Balance Sheet. Under the plan, 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 Roll-forward of Projected Benefit Obligation

The following table summarizes the funded status of our defined benefit plans:


	January 2, 2026						January 3, 2025
(In millions)	Pension		Other Benefits		Total		Pension		Other Benefits		Total

Change in benefit obligation
PBO at beginning of fiscal year	$	7,595	$	215	$	7,810	$	8,563	$	231	$	8,794
Service cost	25		1		26		34		2		36
Interest cost	317		11		328		394		10		404
Actuarial loss (gain)(1)	104		(7)		97		(374)		(4)		(378)
Benefits paid(2)	(506)		(19)		(525)		(967)		(22)		(989)
Settlement	(1,336)		—		(1,336)		—		—		—
Expenses paid	(14)		—		(14)		(19)		—		(19)
Currency translation adjustment	13		1		14		(24)		(1)		(25)

Divestiture	(47)		—		(47)		—		—		—
Other	6		—		6		(12)		(1)		(13)
PBO at end of fiscal year	$	6,157	$	202	$	6,359	$	7,595	$	215	$	7,810

Change in plan assets
Plan assets at beginning of fiscal year	$	8,325	$	274	$	8,599	$	8,595	$	265	$	8,860
Actual return on plan assets	766		29		795		700		22		722
Employer contributions	38		7		45		45		9		54
Benefits paid(2)	(506)		(19)		(525)		(967)		(22)		(989)
Settlement	(1,336)		—		(1,336)		—		—		—
Expenses paid	(14)		—		(14)		(19)		—		(19)
Currency translation adjustment	19		—		19		(31)		—		(31)

Divestiture	(59)		—		(59)		—		—		—
Other	1		1		2		2		—		2
Plan assets at end of fiscal year	$	7,234	$	292	$	7,526	$	8,325	$	274	$	8,599

Funded status at end of fiscal year	$	1,077	$	90	$	1,167	$	730	$	59	$	789

_______________

(1)Actuarial losses impacting the PBO as of January 2, 2026 primarily reflect lower discount rates, whereas actuarial gains impacting the PBO as of January 3, 2025 primarily reflect higher discount rates.

(2)Fiscal 2024 includes $333 million associated with the purchase of group annuity policies and transfer of plan assets to an insurance company. The transaction is reflected in this caption as settlement accounting had not been met.

Schedule of Roll-forward of Plan Assets

The following table summarizes the funded status of our defined benefit plans:


	January 2, 2026						January 3, 2025
(In millions)	Pension		Other Benefits		Total		Pension		Other Benefits		Total

Change in benefit obligation
PBO at beginning of fiscal year	$	7,595	$	215	$	7,810	$	8,563	$	231	$	8,794
Service cost	25		1		26		34		2		36
Interest cost	317		11		328		394		10		404
Actuarial loss (gain)(1)	104		(7)		97		(374)		(4)		(378)
Benefits paid(2)	(506)		(19)		(525)		(967)		(22)		(989)
Settlement	(1,336)		—		(1,336)		—		—		—
Expenses paid	(14)		—		(14)		(19)		—		(19)
Currency translation adjustment	13		1		14		(24)		(1)		(25)

Divestiture	(47)		—		(47)		—		—		—
Other	6		—		6		(12)		(1)		(13)
PBO at end of fiscal year	$	6,157	$	202	$	6,359	$	7,595	$	215	$	7,810

Change in plan assets
Plan assets at beginning of fiscal year	$	8,325	$	274	$	8,599	$	8,595	$	265	$	8,860
Actual return on plan assets	766		29		795		700		22		722
Employer contributions	38		7		45		45		9		54
Benefits paid(2)	(506)		(19)		(525)		(967)		(22)		(989)
Settlement	(1,336)		—		(1,336)		—		—		—
Expenses paid	(14)		—		(14)		(19)		—		(19)
Currency translation adjustment	19		—		19		(31)		—		(31)

Divestiture	(59)		—		(59)		—		—		—
Other	1		1		2		2		—		2
Plan assets at end of fiscal year	$	7,234	$	292	$	7,526	$	8,325	$	274	$	8,599

Funded status at end of fiscal year	$	1,077	$	90	$	1,167	$	730	$	59	$	789

_______________

Schedule of Funded Status of Defined Benefit Plans and Balance Sheet Information

The following table summarizes amounts recognized in our Consolidated Balance Sheet:



	January 2, 2026						January 3, 2025
(In millions)	Pension		Other Benefits		Total		Pension		Other Benefits		Total


Other non-current assets	$	1,226	$	142	$	1,368	$	873	$	113	$	986
Compensation and benefits	(12)		(6)		(18)		(12)		(6)		(18)
Other non-current liabilities	(137)		(46)		(183)		(139)		(48)		(187)

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

The following table summarizes pre-tax amounts recognized in the “Accumulated other comprehensive income” line item in our Consolidated Balance Sheet:


	January 2, 2026						January 3, 2025
(In millions)	Pension		Other Benefits		Total		Pension		Other Benefits		Total

Actuarial gain	$	(273)	$	(89)	$	(362)	$	(245)	$	(86)	$	(331)
Net prior service (credit) cost	(110)		1		(109)		(144)		2		(142)
Total recognized in accumulated other comprehensive income (loss), pre-tax	$	(383)	$	(88)	$	(471)	$	(389)	$	(84)	$	(473)

Schedule of Accumulated Benefit Obligations

The following table provides information for our defined benefit plans with PBO in excess of plan assets:


	January 2, 2026				January 3, 2025
(In millions)	Pension		Other Benefits		Pension		Other Benefits

PBO	$	152	$	52	$	154	$	55
Fair value of plan assets	3		—		3		—

The following table provides information for our defined benefit plans with ABO in excess of plan assets:

January 2, 2026

January 3, 2025

(In millions)

Pension

Other
Benefits

Pension

Other
Benefits

ABO

152

N/A

153

N/A

Fair value of plan assets

N/A

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:


	Fiscal Year
	2025				2024					2023
(In millions)	Pension		Other Benefits		Pension		Other Benefits		Total	Pension		Other Benefits

Net periodic benefit income
Operating
Service cost	$	25	$	1	$	34	$	2		$	33	$	2
Non-operating
Interest cost	317		11		394		10			386		11
Expected return on plan assets	(557)		(21)		(660)		(20)			(633)		(20)
Amortization of net actuarial gains	(5)		(13)		(4)		(17)			(9)		(20)
Amortization of prior service (credits) costs	(27)		1		(26)		1			(26)		1
Effect of settlements	(62)		—		—		—			—		—
Non-service cost net periodic benefit income	(334)		(22)		(296)		(26)			(282)		(28)
Net periodic benefit income	$	(309)	$	(21)	$	(262)	$	(24)		$	(249)	$	(26)

Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net actuarial gain	$	(104)	$	(16)	$	(414)	$	(7)		$	(90)	$	(18)
Prior service cost (credit)	5		—		(14)		—			—		—
Amortization of net actuarial gain	6		13		4		17			9		20
Amortization of prior service credit (cost)	27		(1)		26		(1)			26		(1)
Effect of settlements	62		—		—		—			—		—
Effect of divestiture	11		—		—		—			—		—
Currency translation adjustment	(1)		—		4		—			—		—
Total change recognized in other comprehensive income	6		(4)		(394)		9			(55)		1
Total impact from net periodic benefit income and changes in other comprehensive income	$	(303)	$	(25)	$	(656)	$	(15)		$	(304)	$	(25)

Schedule of Weighted-average Assumptions Used

The following table presents the weighted-average assumptions used to determine the benefit obligation:


	January 2, 2026				January 3, 2025
	Pension(1)		Other Benefits		Pension		Other Benefits
Discount rate	5.29	%	5.13	%	5.46	%	5.38	%
Rate of future compensation increase	3.01	%	N/A		3.01	%	N/A
Cash balance interest crediting rate	4.50	%	N/A		4.50	%	N/A

_______________

(1)Key assumptions for our Consolidated Pension Plan include a discount rate of 5.30%, cash balance interest crediting rate of 4.50% and a 4.25% interest crediting rate for the frozen pension equity benefit.

The following table presents the weighted-average assumptions used to determine net periodic benefit income:


	Fiscal Year
	2025				2024				2023
	Pension(1)		Other Benefits		Pension		Other Benefits		Pension		Other Benefits
Discount rate to determine service cost	5.30	%	5.43	%	4.92	%	5.00	%	5.18	%	5.26	%
Discount rate to determine interest cost	4.96	%	5.08	%	4.80	%	4.78	%	5.08	%	5.06	%
Expected return on plan assets	7.46	%	7.50	%	7.45	%	7.50	%	7.46	%	7.50	%
Rate of future compensation increase	3.01	%	N/A		3.01	%	N/A		3.01	%	N/A
Cash balance interest crediting rate	4.50	%	N/A		4.50	%	N/A		4.00	%	N/A

_______________

(1)Key assumptions for our Consolidated Pension Plan include expected return on plan assets of 7.50%, which is being maintained at 7.50% for fiscal 2026.

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	30	%	—	50%
Fixed income investments	30	%	—	50%
Alternative investments	10	%	—	30%
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:


	January 2, 2026
(In millions)	Total		Level 1		Level 2		Level 3

Asset category
Equities:
Domestic equities	$	852	$	852	$	—	$	—
International equities	979		979		—		—
Real estate investment trusts	167		167		—		—
Fixed income:
Corporate bonds	1,574		—		1,522		52
Government securities	861		—		861		—
Securitized assets	27		—		27		—
Fixed income funds	97		5		92		—
Cash and cash equivalents	202		11		191		—
Other	56		—		—		56
Total	$	4,815	$	2,014	$	2,693	$	108
Investments measured at NAV:
Equity funds	1,171
Fixed income funds	142
Hedge funds	151
Private equity funds	894
Real asset funds	322
Other	2
Total investments measured at NAV	2,682
Receivables, net	29
Total fair value of plan assets	$	7,526


	January 3, 2025
(In millions)	Total		Level 1		Level 2		Level 3

Asset category
Equities:
Domestic equities	$	1,048	$	1,048	$	—	$	—
International equities	968		968		—		—
Real estate investment trusts	186		186		—		—
Fixed income:
Corporate bonds	1,685		—		1,642		43
Government securities	698		—		698		—
Securitized assets	79		—		79		—
Fixed income funds	132		4		128		—
Cash and cash equivalents	498		14		484		—
Other	53		—		—		53
Total	$	5,347	$	2,220	$	3,031	$	96
Investments measured at NAV:
Equity funds	1,389
Fixed income funds	106
Hedge funds	219
Private equity funds	1,127
Real asset funds	323
Other	2
Total investments measured at NAV	3,166
Receivables, net	86
Total fair value of plan assets	$	8,599

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:
2026	$	484	$	21	$	505
2027	472		20		492
2028	474		19		493
2029	479		18		497
2030	478		18		496
2031 — 2035	2,295		76		2,371

_______________

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