Employee Benefit Plans (Tables)

12 Months Ended

Oct. 27, 2019

Changes in benefit obligations and plan assets including post-retirement benefits

A summary of the changes in benefit obligations and plan assets, which includes post-retirement benefits, for each fiscal year is presented below:


	2019		2018		2017

	(In millions, except percentages)
Change in projected benefit obligation
Beginning projected benefit obligation	$	524	$	506	$	495
Service cost	11		12		13
Interest cost	10		11		10
Plan participants’ contributions	1		1		2
Actuarial (gain) loss	84		24		(35)
Curtailments, settlements and special termination benefits	(1)		(1)		(1)
Foreign currency exchange rate changes	(5)		(16)		34
Benefits paid	(8)		(12)		(12)
Plan amendments and business combinations	1		(1)		—
Ending projected benefit obligation	$	617	$	524	$	506
Ending accumulated benefit obligation	$	578	$	490	$	472
Range of assumptions to determine benefit obligations
Discount rate	0.5% - 3.1%		0.6% - 3.1%		0.5% - 3.4%
Rate of compensation increase	2.3% - 3.6%		2.4% - 3.5%		2.2% - 3.5%
Change in plan assets
Beginning fair value of plan assets	$	365	$	361	$	310
Return on plan assets	30		17		18
Employer contributions	27		11		16
Plan participants’ contributions	1		1		2
Foreign currency exchange rate changes	(5)		(12)		28
Divestitures, settlements and business combinations	(1)		(1)		(1)
Benefits paid	(8)		(12)		(12)
Ending fair value of plan assets	$	409	$	365	$	361
Funded status	$	(208)	$	(159)	$	(145)
Amounts recognized in the consolidated balance sheets
Noncurrent asset	$	5	$	19	$	17
Current liability	(1)		(1)		(1)
Noncurrent liability	(212)		(177)		(161)
Total	$	(208)	$	(159)	$	(145)
Estimated amortization from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal period
Actuarial loss	$	12	$	8	$	6
Prior service credit	—		(1)		(4)
Total	$	12	$	7	$	2
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	$	226	$	161	$	141
Prior service credit	—		(2)		(4)
Total	$	226	$	159	$	137
Plans with projected benefit obligations in excess of plan assets
Projected benefit obligation	$	424	$	365	$	326
Fair value of plan assets	$	211	$	186	$	142
Plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	$	385	$	331	$	293
Fair value of plan assets	$	211	$	186	$	142


	2019		2018
Plan assets — allocation
Equity securities	36	%	47	%
Debt securities	45	%	32	%
Insurance contracts	9	%	10	%
Other investments	10	%	10	%
Cash	—	%	1	%

Summary of ending fair value of the plan assets

The following table presents a summary of the ending fair value of the plan assets:


	October 27, 2019														October 28, 2018
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

	(In millions)
Equity securities	$	90	$	—	$	—	$	90	$	86	$	—	$	—	$	86
Debt securities	70		—		—		70		19		—		—		19
Insurance contracts	—		—		36		36		—		—		36		36
Other investments	—		14		—		14		—		14		—		14
Cash	—		—		—		—		2		—		—		2
Total assets at fair value	$	160	$	14	$	36	210		$	107	$	14	$	36	157
Assets measured at net asset value							199								208
Total							$	409							$	365

Activity in Level 3 instruments

The following table presents the activity in Level 3 instruments for each fiscal year:


	2019		2018

	(In millions)
Balance, beginning of year	$	36	$	38
Actual return on plan assets:
Relating to assets still held at reporting date	(3)		(1)
Purchases, sales, settlements, net	4		—
Currency impact	(1)		(1)
Balance, end of year	$	36	$	36

Schedule of net benefit costs and weighted average assumptions used

A summary of the components of net periodic benefit costs and the weighted average assumptions used for net periodic benefit cost calculations for each fiscal year is presented below:


	2019			2018			2017

	(In millions, except percentages)
Components of net periodic benefit cost
Service cost	$	11		$	12		$	13
Interest cost	10			11			10
Expected return on plan assets	(20)			(20)			(18)
Amortization of actuarial loss and prior service credit	7			3			(10)
Settlement and curtailment loss	—			—			—
Net periodic benefit cost (income)	$	8		$	6		$	(5)
Weighted average assumptions
Discount rate	1.98		%	2.16		%	1.88		%
Expected long-term return on assets	5.40		%	5.41		%	5.38		%
Rate of compensation increase	2.74		%	2.66		%	2.69		%

Schedule of expected benefit payments

Future expected benefit payments for the pension plans and the post-retirement plan over the next ten fiscal years are as follows:


	Benefit Payments
	(In millions)
2020	$	12
2021	11
2022	12
2023	12
2024	12
2025-2029	83
	$	142