POSTRETIREMENT BENEFIT PLANS (Tables)

6 Months Ended

Jun. 26, 2022

Schedule of Pretax Net Periodic Benefit Cost

The pretax FAS (expense) income related to our qualified defined benefit pension plans and retiree medical and life insurance plans consisted of the following (in millions):



	Quarters Ended				Six Months Ended
	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Qualified defined benefit pension plans
Operating:
Service cost	$	(24)	$	(27)	$	(48)	$	(54)
Non-operating:
Interest cost	(303)		(310)		(605)		(621)
Expected return on plan assets	503		569		1,005		1,138
Recognized net actuarial losses	(151)		(252)		(301)		(504)
Amortization of prior service credits	90		87		180		174
Pension settlement charge	(1,470)		—		(1,470)		—
Non-service FAS pension (expense) income	(1,331)		94		(1,191)		187
Total FAS pension (expense) income	$	(1,355)	$	67	$	(1,239)	$	133
Retiree medical and life insurance plans
Operating:
Service cost	$	(2)	$	(4)	$	(4)	$	(7)
Non-operating:
Interest cost	(12)		(13)		(24)		(26)
Expected return on plan assets	34		35		68		70
Recognized net actuarial gains	12		—		23		—
Amortization of prior service costs	(7)		(9)		(14)		(18)
Non-service FAS retiree medical and life income	27		13		53		26
Total FAS retiree medical and life income	$	25	$	9	$	49	$	19

Reconciliation of Benefit Obligations, Plan Assets and Unfunded or Funded Status

The following table provides a reconciliation of the benefit obligations, plan assets and net unfunded status related to all of our qualified defined benefit pension plans, inclusive of the plans affected by the interim remeasurement and plans that were not affected, for the six months ended June 26, 2022 (in millions):



Change in benefit obligation
Beginning balance at December 31, 2021	$	43,447
Service cost	48
Interest cost	605
Benefits paid	(776)
Settlements(a)	(4,309)
Plan amendments	30
Actuarial (gains) losses(b)	(7,928)



Ending balance at June 26, 2022	$	31,117
Change in plan assets
Beginning balance at December 31, 2021	$	35,192
Actual return on plan assets(c)	(4,734)
Benefits paid	(776)
Settlements(a)	(4,309)



Ending balance at June 26, 2022	$	25,373
Net unfunded status of the plans(d)	$	(5,744)

(a)Represents the transfer of gross defined benefit pension obligations and related plan assets to an insurance company pursuant to the group annuity contracts purchased on June 24, 2022, as described above.

(b)Primarily reflects an increase in the discount rate from 2.875% at December 31, 2021 to 4.75% at the remeasurement date.

(c)The actual return on plan assets for the period January 1, 2022 through the June 24, 2022 remeasurement date for the affected plans was approximately (16%), or $(4.7) billion which was approximately $5.7 billion lower (the incremental loss) than our expected return on plan assets of 3.25% for the period, or $1.0 billion (the proportional effect, or approximately half of our expected 6.50% annual long-term rate of return on plan assets assumption), for the period.

(d)For plans where the benefit obligation is in excess of plan assets, we report the net obligation (which was $5,808 million as of June 26, 2022) as part of accrued pension liabilities on our consolidated balance sheet. Conversely, for plans where the assets exceed the benefit obligation, we include the net asset (which was $64 million as of June 26, 2022) as part of other noncurrent assets on our consolidated balance sheet. The net unfunded status of the plans of $5,744 million in the table above represents the net total of these two amounts.