Pension and Postretirement Benefit Plans

9 Months Ended

Oct. 03, 2021

Retirement Benefits [Abstract]

Pension and Postretirement Benefit Plans

Pension and Postretirement Benefit Plans

As discussed in Note 1C, we adopted a change in accounting principle to a more preferable policy under U.S. GAAP to immediately recognize actuarial gains and losses arising from the remeasurement of pension and postretirement plans. This change has been applied to all pension and postretirement plans on a retrospective basis for all prior periods presented.

The following summarizes the components of net periodic benefit cost/(credit), including in 2020 costs/(credits) reported as part of discontinued operations:
	Pension Plans
	U.S.				International				Postretirement Plans
	Three Months Ended
(MILLIONS)	Oct. 3, 2021		Sept. 27, 2020		Oct. 3, 2021		Sept. 27, 2020		Oct. 3, 2021		Sept. 27, 2020
Service cost	$	—	$	—	$	32	$	36	$	9	$	10
Interest cost	114		139		37		40		7		13
Expected return on plan assets	(261)		(251)		(83)		(79)		(10)		(9)
Amortization of prior service credits	—		(1)		—		(1)		(39)		(43)
Curtailments	—		—		—		—		(64)		—
Actuarial (gains)/losses(a)	(836)		1,212		—		—		—		—
Special termination benefits	—		—		—		—		—		—
Net periodic benefit cost/(credit) reported in income	$	(983)	$	1,099	$	(14)	$	(3)	$	(96)	$	(30)
	Pension Plans
	U.S.				International				Postretirement Plans
	Nine Months Ended
(MILLIONS)	Oct. 3, 2021		Sept. 27, 2020		Oct. 3, 2021		Sept. 27, 2020		Oct. 3, 2021		Sept. 27, 2020
Service cost	$	—	$	—	$	98	$	108	$	27	$	29
Interest cost	341		419		110		122		22		38
Expected return on plan assets	(782)		(754)		(246)		(238)		(29)		(27)
Amortization of prior service credits	(1)		(3)		(1)		(2)		(116)		(129)
Curtailments	—		—		(1)		—		(64)		—
Actuarial (gains)/losses(a)	(881)		1,369		—		2		—		—
Special termination benefits	12		1		—		—		1		—
Net periodic benefit cost/(credit) reported in income	$	(1,312)	$	1,033	$	(40)	$	(7)	$	(160)	$	(89)

(a)Mainly reflects interim actuarial remeasurement gains in 2021, primarily due to favorable plan asset performance and an increase in the discount rate, and interim actuarial remeasurement losses in 2020, primarily due to a reduction in the discount rate.

The components of net periodic benefit cost/(credit) other than the service cost component are included in Other (income)/deductions––net (see Note 4).

For the nine months ended October 3, 2021, we contributed $127 million, $259 million, and $35 million to our U.S. Pension Plans, International Pension Plans, and Postretirement Plans, respectively, from our general assets, which include direct employer benefit payments.