Employee Benefit Plans (Tables)

12 Months Ended

Oct. 25, 2020

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:


	2020		2019		2018

	(In millions, except percentages)
Change in projected benefit obligation
Beginning projected benefit obligation	$	617	$	524	$	506
Service cost	13		11		12
Interest cost	8		10		11
Plan participants’ contributions	1		1		1
Actuarial loss	6		84		24
Settlements	—		(1)		(1)
Foreign currency exchange rate changes	33		(5)		(16)
Benefits paid	(10)		(8)		(12)
Plan amendments and other adjustments	6		1		(1)
Ending projected benefit obligation	$	674	$	617	$	524
Ending accumulated benefit obligation	$	627	$	578	$	490
Range of assumptions to determine benefit obligations
Discount rate	0.4% - 6.5%		0.5% - 3.1%		0.6% - 3.1%
Rate of compensation increase	2.3% - 10.0%		2.3% - 3.6%		2.4% - 3.5%
Change in plan assets
Beginning fair value of plan assets	$	409	$	365	$	361
Return on plan assets	—		30		17
Employer contributions	12		27		11
Plan participants’ contributions	1		1		1
Foreign currency exchange rate changes	19		(5)		(12)
Settlements	—		(1)		(1)
Benefits paid	(10)		(8)		(12)
Ending fair value of plan assets	$	431	$	409	$	365
Funded status	$	(243)	$	(208)	$	(159)
Amounts recognized in the consolidated balance sheets
Noncurrent asset	$	—	$	5	$	19
Current liability	(2)		(1)		(1)
Noncurrent liability	(241)		(212)		(177)
Total	$	(243)	$	(208)	$	(159)
Estimated amortization from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal period
Actuarial loss	$	14	$	12	$	8
Prior service credit	—		—		(1)
Total	$	14	$	12	$	7
Amounts recognized in accumulated other comprehensive loss
Net actuarial loss	$	242	$	226	$	161
Prior service credit	—		—		(2)
Total	$	242	$	226	$	159
Plans with projected benefit obligations in excess of plan assets
Projected benefit obligation	$	674	$	424	$	365
Fair value of plan assets	$	431	$	211	$	186
Plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	$	627	$	385	$	331
Fair value of plan assets	$	431	$	211	$	186


	2020		2019
Plan assets — allocation
Equity securities	38	%	36	%
Debt securities	43	%	45	%
Insurance contracts	9	%	9	%
Other investments	10	%	10	%

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 25, 2020								October 27, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

	(In millions)
Equity securities	$	103	$	—	$	—	$	103	$	90	$	—	$	—	$	90
Debt securities	72		—		—		72		70		—		—		70
Insurance contracts	—		—		39		39		—		—		36		36
Other investments	—		16		—		16		—		14		—		14
Cash	2		—		—		2		—		—		—		—
Total assets at fair value	$	177	$	16	$	39	232		$	160	$	14	$	36	210
Assets measured at net asset value							199								199
Total							$	431							$	409

Activity in Level 3 instruments

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


	2020		2019

	(In millions)
Balance, beginning of year	$	36	$	36
Actual return on plan assets:
Relating to assets still held at reporting date	—		(3)
Purchases, sales, settlements, net	1		4
Currency impact	2		(1)
Balance, end of year	$	39	$	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:


	2020			2019			2018

	(In millions, except percentages)
Components of net periodic benefit cost
Service cost	$	13		$	11		$	12
Interest cost	8			10			11
Expected return on plan assets	(22)			(20)			(20)
Amortization of actuarial loss and prior service credit	12			7			3

Net periodic benefit cost	$	11		$	8		$	6
Weighted average assumptions
Discount rate	1.23		%	1.98		%	2.16		%
Expected long-term return on assets	5.10		%	5.40		%	5.41		%
Rate of compensation increase	2.69		%	2.74		%	2.66		%

Schedule of expected benefit payments

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


	Benefit Payments
	(In millions)
2021	$	14
2022	13
2023	14
2024	14
2025	14
2026-2030	94
	$	163