Employee Benefits

9 Months Ended

Oct. 01, 2016

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 2015 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 1, 2016			October 3, 2015			October 1, 2016			October 3, 2015
Service cost	$	25		$	28		$	74		$	84
Interest cost	43			50			131			156
Expected return on plan assets	(87		)	(100		)	(266		)	(300		)
Amortization of unrecognized prior service cost	3			4			10			10
Recognized net loss	28			—			28			—
Total pension (income) expense	$	12		$	(18	)	$	(23	)	$	(50	)

Other nonpension postretirement



	Quarter ended						Year-to-date period ended
(millions)	October 1, 2016			October 3, 2015			October 1, 2016			October 3, 2015
Service cost	$	5		$	7		$	15		$	24
Interest cost	10			11			29			36
Expected return on plan assets	(22		)	(25		)	(67		)	(75		)
Amortization of unrecognized prior service cost (credit)	(2		)	(2		)	(7		)	(3		)
Total postretirement benefit (income) expense	$	(9	)	$	(9	)	$	(30	)	$	(18	)

Postemployment



	Quarter ended				Year-to-date period ended
(millions)	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Service cost	$	1	$	2	$	5	$	5
Interest cost	1		1		3		3
Recognized net loss	1		1		3		3
Total postemployment benefit expense	$	3	$	4	$	11	$	11

During the quarter ended October 1, 2016, the Company recognized expense of $28 million related to the remeasurement of a U.S. pension plan as current year distributions exceeded service and interest costs resulting in settlement accounting for that particular plan. The amount of the remeasurement loss recognized during the quarter was due to an unfavorable change in the discount rate relative to prior year.

Company contributions to employee benefit plans are summarized as follows:



(millions)	Pension		Nonpension postretirement		Total
Quarter ended:
October 1, 2016	$	3	$	3	$	6
October 3, 2015	$	1	$	3	$	4
Year-to-date period ended:
October 1, 2016	$	18	$	11	$	29
October 3, 2015	$	11	$	10	$	21
Full year:
Fiscal year 2016 (projected)	$	28	$	15	$	43
Fiscal year 2015 (actual)	$	19	$	14	$	33

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