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NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS
 12 Months Ended
Dec. 30, 2023
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)20232022
Change in accumulated benefit obligation
Beginning of year$321 $423 
Service cost3 4 
Interest cost21 10 
Actuarial (gain) loss(5)(92)
Benefits paid(17)(22)
Amendments(26)— 
Other2 — 
Foreign currency adjustments— (2)
End of year$299 $321 
Change in plan assets
Fair value beginning of year$529 $694 
Actual return on plan assets81 (141)
Employer contributions10 9 
Benefits paid(29)(33)
Other(4)— 
Fair value end of year$587 $529 
Funded status$288 $208 
Amounts recognized in the Consolidated Balance Sheet consist of
Other assets$311 $228 
Other current liabilities(1)(1)
Other liabilities(22)(19)
Net amount recognized$288 $208 
Amounts recognized in accumulated other comprehensive income consist of
Prior service credit(30)(32)
Net amount recognized$(30)$(32)

Information for postretirement benefit plans with accumulated benefit obligations in excess of plan assets were:
(millions)20232022
Accumulated benefit obligation$23 $21 
Fair value of plan assets$— $— 
Expense
The components of nonpension postretirement expense are presented in the following table. Service cost is recorded in COGS and SGA expense. All other components of net periodic benefit cost are included in OIE. Components of postretirement benefit expense (income) were:
(millions)202320222021
Service cost$3 $4 $4 
Interest cost21 10 8 
Expected return on plan assets(51)(42)(35)
Amortization of unrecognized prior service credit(4)(4)(4)
Recognized net (gain) loss(29)76 (60)
Net periodic benefit expense (income)(60)44 (87)
Postretirement benefit expense (income):
Defined benefit plans(60)44 (87)
Defined contribution plans15 13 13 
Total$(45)$57 $(74)
Assumptions
The weighted-average actuarial assumptions used to determine benefit obligations were:
202320222021
Discount rate5.1 %5.5 %2.9 %
The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were:
202320222021
Discount rate5.5 %2.8 %2.5 %
Discount rate - interest5.3 %2.3 %1.8 %
Long-term rate of return on plan assets8.0 %7.0 %6.3 %
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 11.
The assumed U.S. health care cost trend rate is 6.50% for 2024, remaining at this rate until 2025, then decreasing 0.25% annually to 4.5% in 2033 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 2023, the Company recognized a net actuarial gain of approximately $29 million driven by higher than expected asset returns, partially offset by the impact of higher discount rates and the impact of other assumption changes.
Plan assets
The fair value of Plan assets as of December 30, 2023 and December 31, 2022 are summarized within fair value hierarchy described in Note 11, are as follows:
(millions)Fair Value Hierarchy Level20232022
Cash and cash equivalents1$1 $— 
Corporate stock, common1— 74 
Mutual funds:
Equity27 16 
Bonds, corporate264 72 
Bonds, government216 29 
Bonds, other24 4 
Sub-total$92 $195 
Investments measured at net asset value (NAV) practical expedient (a)495 $334 
Total plan assets$587 $529 
(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 11. The current target asset allocation is 69% equity securities, 26% debt securities, and 5% real estate and other. The Company currently expects to contribute approximately $18 million to its VEBA trusts during 2024.
There were no Level 3 assets during 2023 and 2022.
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 11.

The aggregate change in accumulated postemployment benefit obligation and the net amount recognized were:
(millions)20232022
Change in accumulated benefit obligation
Beginning of year$29 $37 
Service cost2 2 
Interest cost1 1 
Actuarial (gain)loss— (6)
Benefits paid(2)(5)
End of year$30 $29 
Funded status$(30)$(29)
Amounts recognized in the Consolidated Balance Sheet consist of
Other current liabilities$(5)$(6)
Other liabilities(25)(23)
Net amount recognized$(30)$(29)
Amounts recognized in accumulated other comprehensive income consist of
Net prior service cost$— $2 
Net experience gain(11)(18)
Net amount recognized$(11)$(16)
The components of postemployment benefit expense are presented in the following table. Service cost is recorded in COGS and SGA expense. All other components of net periodic benefit cost are included in OIE.
(millions)202320222021
Service cost$2 $2 $2 
Interest cost1 1 — 
Amortization of unrecognized prior service cost1 1 1 
Recognized net loss(2)(1)(1)
Net periodic benefit cost$2 $3 $2 
Settlement cost— (2)(1)
Postemployment benefit expense$2 $1 $1 
Benefit payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
(millions)PostretirementPostemployment
2024$25 $5 
202525 5 
202624 4 
202724 4 
202824 4 
2029-2033115 15