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Nonpension Postretirement and Postemployment Benefits
 12 Months Ended
Jan. 01, 2022
Nonpension Postretirement And Postemployment Benefits [Abstract]  
Nonpension Postretirement And Postemployment Benefits [Text Block]
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS
Postretirement
The Company sponsors a number of plans to provide health care and other welfare benefits to retired employees in the United States and Canada, who have met certain age and service requirements. The majority of these plans are funded or unfunded defined benefit plans, although the Company does participate in a limited number of multiemployer or other defined contribution plans for certain employee groups. The Company contributes to voluntary employee benefit association (VEBA) trusts to fund certain U.S. retiree health and welfare benefit obligations. The Company uses a December 31 measurement date for these plans and, when necessary, adjusts for plan contributions and significant events between December 31 and its fiscal year-end.
Obligations and funded status
The aggregate change in accumulated postretirement benefit obligation, plan assets, and funded status is presented in the following tables.
(millions)20212020
Change in accumulated benefit obligation
Beginning of year$1,157 $1,116 
Service cost13 13 
Interest cost20 31 
Actuarial (gain) loss(68)55 
Benefits paid(57)(58)
End of year$1,065 $1,157 
Change in plan assets
Fair value beginning of year$1,491 $1,364 
Actual return on plan assets175 178 
Employer contributions16 24 
Benefits paid(74)(75)
Fair value end of year$1,608 $1,491 
Funded status$543 $334 
Amounts recognized in the Consolidated Balance Sheet consist of
Other assets$577 $369 
Other current liabilities(2)(1)
Other liabilities(32)(34)
Net amount recognized$543 $334 
Amounts recognized in accumulated other comprehensive income consist of
Prior service credit(41)(50)
Net amount recognized$(41)$(50)
Information for postretirement benefit plans with accumulated benefit obligations in excess of plan assets were:
(millions)20212020
Accumulated benefit obligation$34 $35 
Fair value of plan assets$— $— 
Expense
Components of postretirement benefit expense (income) were:
(millions)202120202019
Service cost$13 $13 $15 
Interest cost20 31 37 
Expected return on plan assets(92)(94)(86)
Amortization of unrecognized prior service credit(9)(9)(9)
Recognized net (gain) loss(152)(29)(137)
Net periodic benefit expense (income)(220)(88)(180)
Curtailment— — (6)
Postretirement benefit expense (income):
Defined benefit plans(220)(88)(186)
Defined contribution plans13 13 11 
Total$(207)$(75)$(175)
Assumptions
The weighted-average actuarial assumptions used to determine benefit obligations were:
202120202019
Discount rate2.9 %2.5 %3.3 %
The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were:
202120202019
Discount rate2.5 %3.3 %4.0 %
Long-term rate of return on plan assets6.3 %7.0 %7.3 %
The Company determines the overall discount rate and expected long-term rate of return on VEBA trust obligations and assets in the same manner as that described for pension trusts in Note 10.
The assumed U.S. health care cost trend rate is 5.25% for 2022, decreasing 0.25% annually to 4.5% by the year 2025 and remaining at that level thereafter. These trend rates reflect the Company’s historical experience and management’s expectations regarding future trends.
The Company may experience material actuarial gains or losses due to differences between assumed and actual experience and due to changing economic conditions. During 2021, the Company recognized a net actuarial gain of approximately $152 million driven by a gain related to plan experience and assumption changes, including gains due to better than expected asset returns and increases in the discount rate.

Plan assets
The fair value of Plan assets as of January 1, 2022 summarized by level within fair value hierarchy described in Note 10, are as follows:
(millions)Total
Level 1		Total
Level 2		Total
Level 3		Total
NAV (practical expedient)(a)		Total
Cash and cash equivalents$1 $2 1$— $— $3 
Corporate stock, common263 — — — 263 
Mutual funds:
Equity— 39 — — 39 
Debt— 94 — — 94 
Collective trusts:
Equity— — — 616 616 
Limited partnerships— — — 132 132 
Bonds, corporate— 247 — — 247 
Bonds, government— 99 — — 99 
Bonds, other— 13 — — 13 
Real estate— — — 102 102 
Total$264 $494 $— $850 $1,608 
(a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
The fair value of Plan assets at January 2, 2021 are summarized as follows:
(millions)Total
Level 1		Total
Level 2		Total
Level 3		Total
NAV (practical expedient)(a)		Total
Cash and cash equivalents$3 $3 $— $— $6 
Corporate stock, common261 — — — 261 
Mutual funds:
Equity— 30 — — 30 
Debt— 54 — — 54 
Collective trusts:
Equity— — — 669 669 
Limited partnerships— — — 135 135 
Bonds, corporate— 143 — — 143 
Bonds, government— 96 — — 96 
Bonds, other— 8 — — 8 
Real estate— — — 89 89 
Total$264 $334 $— $893 $1,491 
(a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
The Company’s asset investment strategy for its VEBA trusts is consistent with that described for its pension trusts in Note 10. The current target asset allocation is 60% equity securities, 33% debt securities, and 7% real estate. The Company currently expects to contribute approximately $17 million to its VEBA trusts during 2022.
There were no Level 3 assets during 2021 and 2020.
Postemployment
Under certain conditions, the Company provides benefits to former or inactive employees, including salary continuance, severance, and long-term disability, in the United States and several foreign locations. The Company’s postemployment benefit plans are unfunded. Actuarial assumptions used are generally consistent with those presented for pension benefits in Note 10.

The aggregate change in accumulated postemployment benefit obligation and the net amount recognized were:
(millions)20212020
Change in accumulated benefit obligation
Beginning of year$48 $48 
Service cost3 3 
Interest cost1 1 
Actuarial (gain)loss1 — 
Benefits paid(5)(4)
End of year$48 $48 
Funded status$(48)$(48)
Amounts recognized in the Consolidated Balance Sheet consist of
Other current liabilities$(5)$(6)
Other liabilities(43)(42)
Net amount recognized$(48)$(48)
Amounts recognized in accumulated other comprehensive income consist of
Net prior service cost$1 $2 
Net experience gain(14)(18)
Net amount recognized$(13)$(16)
Components of postemployment benefit expense were:
(millions)202120202019
Service cost$3 $2 $3 
Interest cost1 1 2 
Amortization of unrecognized prior service cost1 1 1 
Recognized net loss(2)(3)(5)
Net periodic benefit cost$3 $1 $1 
Settlement cost(1)(1)(3)
Postemployment benefit expense$2 $— $(2)
Benefit payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
(millions)PostretirementPostemployment
2022$64 $5 
202364 7 
202464 6 
202564 5 
202664 5 
2027-2031312 21