Employee Benefits

9 Months Ended

Oct. 03, 2015

Compensation and Retirement Disclosure [Abstract]

Employee benefits

The Company sponsors a number of U.S. and foreign pension plans as well as other nonpension postretirement and postemployment plans to provide various benefits for its employees. These plans are described within the footnotes to the Consolidated Financial Statements included in the Company’s 2014 Annual Report on Form 10-K. Components of Company plan benefit expense for the periods presented are included in the tables below.

Pension



	Quarter ended						Year-to-date period ended
(millions)	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Service cost	$	28		$	27		$	84		$	80
Interest cost	50			56			156			169
Expected return on plan assets	(100		)	(104		)	(300		)	(313		)
Amortization of unrecognized prior service cost	4			3			10			10
Total pension (income) expense	$	(18	)	$	(18	)	$	(50	)	$	(54	)

Other nonpension postretirement



	Quarter ended						Year-to-date period ended
(millions)	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Service cost	$	7		$	7		$	24		$	21
Interest cost	11			13			36			40
Expected return on plan assets	(25		)	(24		)	(75		)	(73		)
Amortization of unrecognized prior service cost (credit)	(2		)	(1		)	(3		)	(2		)
Recognized net loss	—			7			—			7
Curtailment gain	—			(12		)	—			(12		)
Total postretirement benefit (income) expense	$	(9	)	$	(10	)	$	(18	)	$	(19	)

Postemployment



	Quarter ended				Year-to-date period ended
(millions)	October 3, 2015		September 27, 2014		October 3, 2015		September 27, 2014
Service cost	$	2	$	2	$	5	$	6
Interest cost	1		1		3		3
Recognized net loss	1		1		3		3
Total postemployment benefit expense	$	4	$	4	$	11	$	12

Company contributions to employee benefit plans are summarized as follows:



(millions)	Pension		Nonpension postretirement		Total
Quarter ended:
October 3, 2015	$	1	$	3	$	4
September 27, 2014	$	5	$	2	$	7
Year-to-date period ended:
October 3, 2015	$	11	$	10	$	21
September 27, 2014	$	34	$	10	$	44
Full year:
Fiscal year 2015 (projected)	$	39	$	16	$	55
Fiscal year 2014 (actual)	$	37	$	16	$	53

During the quarter ended October 3, 2015, the Company amended a U.S. postretirement health plan as well as a U.S. pension plan. As a result of the U.S. postretirement health plan amendment, a prior service credit of $84 million ($53 million, net of tax) was recognized in other comprehensive income with an offsetting reduction in the accumulated postretirement benefit obligation. The U.S. pension plan amendment increased the Company's pension benefit obligation with an offsetting increase in prior service costs in other comprehensive income of $17 million ($11 million, net of tax).

Plan funding strategies may be modified in response to management’s evaluation of tax deductibility, market conditions, and competing investment alternatives.