Employee Benefits

3 Months Ended

Apr. 02, 2022

Retirement Benefits [Abstract]

Employee Benefits

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 2021 Annual Report on Form 10-K. Components of Company benefit plan (income) expense for the periods presented are included in the tables below. Excluding the service cost component, these amounts are included within Other income (expense) in the Consolidated Statement of Income.

Pension

	Quarter ended
(millions)	April 2, 2022		April 3, 2021
Service cost	$	9	$	9
Interest cost	29		25
Expected return on plan assets	(71)		(78)
Amortization of unrecognized prior service cost	2		2
Recognized net (gain) loss	(21)		(9)
Total pension (income) expense	$	(52)	$	(51)

Other nonpension postretirement

	Quarter ended
(millions)	April 2, 2022		April 3, 2021
Service cost	$	3	$	3
Interest cost	6		5
Expected return on plan assets	(28)		(23)
Amortization of unrecognized prior service cost	(2)		(2)
Total postretirement benefit (income) expense	$	(21)	$	(17)

Postemployment

	Quarter ended
(millions)	April 2, 2022		April 3, 2021
Service cost	$	1	$	1
Recognized net experience (gain) loss	(1)		(1)
Total postemployment benefit expense	$	—	$	—

For the quarter ended April 2, 2022, the Company recognized a gain of $21 million, related to the remeasurement of a certain U.S. pension plan. For the quarter ended April 3, 2021, the Company recognized a gain of $9 million related to the remeasurement of a U.S. pension plan. These remeasurements were the result of distributions that exceeded service and interest costs resulting in settlement accounting for that particular plan. The remeasurements recognized were due primarily to changes in the discount rate relative to the previous measurements.

Company contributions to employee benefit plans are summarized as follows:

(millions)	Pension		Nonpension postretirement		Total
Quarter ended:
April 2, 2022	$	1	$	6	$	7
April 3, 2021	$	1	$	1	$	2
Full year:
Fiscal year 2022 (projected)	$	3	$	17	$	20
Fiscal year 2021 (actual)	$	4	$	16	$	20

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