v2.4.0.6
Pension, Retiree Medical and Savings Plans (Tables)
 12 Months Ended
Dec. 29, 2012
Defined Benefit Plan Disclosure [Line Items]  
Selected Financial Information For Pension And Retiree Medical Plans
Selected financial information for our pension and retiree medical plans is as follows:
 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Change in projected benefit liability
 
 
 
 
 
 
 
 
 
 
 
Liability at beginning of year
$
11,901

 
$
9,851

 
$
2,381

 
$
2,142

 
$
1,563

 
$
1,770

Acquisitions/(divestitures)
—

 
11

 
—

 
(63
)
 
—

 
—

Service cost
407

 
350

 
100

 
95

 
50

 
51

Interest cost
534

 
547

 
115

 
117

 
65

 
88

Plan amendments
15

 
21

 
—

 
(16
)
 
—

 
3

Participant contributions
—

 
—

 
3

 
3

 
—

 
—

Experience loss/(gain)
932

 
1,484

 
200

 
224

 
(63
)
 
(239
)
Benefit payments
(278
)
 
(414
)
 
(76
)
 
(69
)
 
(111
)
 
(110
)
Settlement/curtailment
(633
)
 
(20
)
 
(40
)
 
(15
)
 
—

 
—

Special termination benefits
8

 
71

 
1

 
1

 
5

 
1

Foreign currency adjustment
—

 
—

 
102

 
(41
)
 
2

 
(1
)
Other
—

 
—

 
2

 
3

 
—

 
—

Liability at end of year
$
12,886

 
$
11,901

 
$
2,788

 
$
2,381

 
$
1,511

 
$
1,563

 
 
 
 
 
 
 
 
 
 
 
 
Change in fair value of plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value at beginning of year
$
9,072

 
$
8,870

 
$
2,031

 
$
1,896

 
$
190

 
$
190

Acquisitions/(divestitures)
—

 
11

 
—

 
(1
)
 
—

 
—

Actual return on plan assets
1,282

 
542

 
206

 
79

 
35

 
—

Employer contributions/funding
1,368

 
63

 
246

 
176

 
251

 
110

Participant contributions
—

 
—

 
3

 
3

 
—

 
—

Benefit payments
(278
)
 
(414
)
 
(76
)
 
(69
)
 
(111
)
 
(110
)
Settlement
(627
)
 
—

 
(33
)
 
(30
)
 
—

 
—

Foreign currency adjustment
—

 
—

 
86

 
(23
)
 
—

 
—

Fair value at end of year
$
10,817

 
$
9,072

 
$
2,463

 
$
2,031

 
$
365

 
$
190

Funded status
$
(2,069
)
 
$
(2,829
)
 
$
(325
)
 
$
(350
)
 
$
(1,146
)
 
$
(1,373
)
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Amounts recognized
 
 
 
 
 
 
 
 
 
 
 
Other assets
$
—

 
$
—

 
$
51

 
$
55

 
$
—

 
$
—

Other current liabilities
(51
)
 
(91
)
 
(2
)
 
(1
)
 
(71
)
 
(124
)
Other liabilities
(2,018
)
 
(2,738
)
 
(374
)
 
(404
)
 
(1,075
)
 
(1,249
)
Net amount recognized
$
(2,069
)
 
$
(2,829
)
 
$
(325
)
 
$
(350
)
 
$
(1,146
)
 
$
(1,373
)
 
 
 
 
 
 
 
 
 
 
 
 
Amounts included in accumulated other comprehensive loss (pre-tax)
 
 
 
 
 
 
 
 
Net loss/(gain)
$
4,212

 
$
4,217

 
$
1,096

 
$
977

 
$
(44
)
 
$
32

Prior service cost/(credit)
121

 
122

 
(3
)
 
(2
)
 
(92
)
 
(118
)
Total
$
4,333

 
$
4,339

 
$
1,093

 
$
975

 
$
(136
)
 
$
(86
)
 
 
 
 
 
 
 
 
 
 
 
 
Components of the (decrease)/increase in net loss/(gain) included in accumulated other comprehensive loss
 
 
 
 
Change in discount rate
$
776

 
$
1,710

 
$
188

 
$
302

 
$
84

 
$
115

Employee-related assumption changes
135

 
(140
)
 
(2
)
 
(51
)
 
(67
)
 
(125
)
Liability-related experience different from assumptions
66

 
(85
)
 
14

 
(27
)
 
(80
)
 
(210
)
Actual asset return different from expected return
(486
)
 
162

 
(60
)
 
57

 
(13
)
 
14

Amortization and settlement of losses
(451
)
 
(147
)
 
(64
)
 
(55
)
 
—

 
(12
)
Other, including foreign currency adjustments
(45
)
 
(9
)
 
43

 
(16
)
 
—

 
(20
)
Total
$
(5
)
 
$
1,491

 
$
119

 
$
210

 
$
(76
)
 
$
(238
)
 
 
 
 
 
 
 
 
 
 
 
 
Liability at end of year for service to date
$
11,643

 
$
11,205

 
$
2,323

 
$
1,921

 
 
 
 
Estimated Amounts To Be Amortized From Accumulated Other Comprehensive Loss Into Benefit Expense In 2012 For Pension And Retiree Medical Plans
The estimated amounts to be amortized from accumulated other comprehensive loss into expense in 2013 for our pension and retiree medical plans are as follows:
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
Net loss
$
289

 
$
68

 
$
1

Prior service cost/(credit)
18

 
1

 
(22
)
Total
$
307

 
$
69

 
$
(21
)
Weighted-Average Assumptions Used To Determine Projected Benefit Liability And Benefit Expense For Pension And Retiree Medical Plans
The following table provides the weighted-average assumptions used to determine projected benefit liability and benefit expense for our pension and retiree medical plans:
 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
 
 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

Weighted-average assumptions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liability discount rate
4.2
%
 
4.6
%
 
5.7
%
 
4.4
%
 
4.8
%
 
5.5
%
 
3.7
%
 
4.4
%
 
5.2
%
Expense discount rate
4.6
%
 
5.7
%
 
6.0
%
 
4.8
%
 
5.5
%
 
6.0
%
 
4.4
%
 
5.2
%
 
5.8
%
Expected return on plan assets
7.8
%
 
7.8
%
 
7.8
%
 
6.7
%
 
6.7
%
 
7.1
%
 
7.8
%
 
7.8
%
 
7.8
%
Liability rate of salary increases
3.7
%
 
3.7
%
 
4.1
%
 
3.9
%
 
4.1
%
 
4.1
%
 
 
 
 
 
 
Expense rate of salary increases
3.7
%
 
4.1
%
 
4.4
%
 
4.1
%
 
4.1
%
 
4.1
%
 
 
 
 
 
 
Selected Information About Plans With Liability For Service To Date And Total Benefit Liability In Excess Of Plan Assets
The following table provides selected information about plans with liability for service to date and total benefit liability in excess of plan assets: 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Selected information for plans with liability for service to date in excess of plan assets
 
 
 
 
Liability for service to date
$
(11,643
)
 
$
(11,205
)
 
$
(711
)
 
$
(471
)
 
 
 
 
Fair value of plan assets
$
10,817

 
$
9,072

 
$
552

 
$
344

 
 
 
 
Selected information for plans with projected benefit liability in excess of plan assets
 
 
 
 
 
 
Benefit liability
$
(12,886
)
 
$
(11,901
)
 
$
(2,542
)
 
$
(2,191
)
 
$
(1,511
)
 
$
(1,563
)
Fair value of plan assets
$
10,817

 
$
9,072

 
$
2,166

 
$
1,786

 
$
365

 
$
190
Future Benefit Payments
Our estimated future benefit payments are as follows: 
 
2013

 
2014

 
2015

 
2016

 
2017

 
2018-22

Pension
$
560

 
$
570

 
$
600

 
$
650

 
$
705

 
$
4,465

Retiree medical(a)
$
120

 
$
125

 
$
125

 
$
130

 
$
130

 
$
655

 
(a)
Expected future benefit payments for our retiree medical plans do not reflect any estimated subsidies expected to be received under the 2003 Medicare Act. Subsidies are expected to be approximately $13 million for each of the years from 2013 through 2017 and approximately $90 million in total for 2018 through 2022.
Target Investment Allocation
Our target investment allocations are as follows:
 
2013

 
2012

Fixed income
40
%
 
40
%
U.S. equity
33
%
 
33
%
International equity
22
%
 
22
%
Real estate
5
%
 
5
%
Categorized Plan Assets Measured At Fair Value
Plan assets measured at fair value as of fiscal year-end 2012 and 2011 are categorized consistently by level in both years, and are as follows: 
 
2012
 
2011
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. plan assets*
 
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
U.S. common stock(a)
$
626

 
$
626

 
$
—

 
$
—

 
$
514

U.S. commingled funds(b)
3,106

 
—

 
3,106

 
—

 
3,003

International common stock(a)
1,597

 
1,597

 
—

 
—

 
1,089

International commingled fund(c)
948

 
—

 
948

 
—

 
776

Preferred stock(d)
20

 
—

 
20

 
—

 
19

Fixed income securities:
 
 
 
 
 
 
 
 
 
Government securities(d)
1,287

 
—

 
1,287

 
—

 
1,032

Corporate bonds(d) (e)
2,962

 
—

 
2,962

 
—

 
2,653

Mortgage-backed securities(d)
110

 
—

 
110

 
—

 
24

Other:
 
 
 
 
 
 
 
 
 
Contracts with insurance companies(f)
27

 
—

 
—

 
27

 
24

Real estate commingled funds(g)
331

 
—

 
—

 
331

 
—

Cash and cash equivalents
117

 
117

 
—

 
—

 
78

Sub-total U.S. plan assets
11,131

 
$
2,340

 
$
8,433

 
$
358

 
9,212

Dividends and interest receivable
51

 
 
 
 
 
 
 
50

Total U.S. plan assets
$
11,182

 
 
 
 
 
 
 
$
9,262

International plan assets
 
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
U.S. commingled funds(b)
$
278

 
$
—

 
$
278

 
$
—

 
$
246

International commingled funds(c)
863

 
—

 
863

 
—

 
729

Fixed income securities:
 
 
 
 
 
 
 
 
 
Government securities(d)
202

 
—

 
202

 
—

 
171

Corporate bonds(d)
230

 
—

 
230

 
—

 
196

Fixed income commingled funds(h)
600

 
—

 
600

 
—

 
530

Other:
 
 
 
 
 
 
 
 
 
Contracts with insurance companies(f)
35

 
—

 
—

 
35

 
30

Currency commingled funds(i)
64

 
—

 
64

 
—

 
52

Real estate commingled fund(g)
60

 
—

 
—

 
60

 
56

Cash and cash equivalents
125

 
125

 
—

 
—

 
16

Sub-total international plan assets
2,457

 
$
125

 
$
2,237

 
$
95

 
2,026

Dividends and interest receivable
6

 
 
 
 
 
 
 
5

Total international plan assets
$
2,463

 
 
 
 
 
 
 
$
2,031


(a)
Based on quoted market prices in active markets.
(b)
Based on the fair value of the investments owned by these funds that track various U.S. large, mid-cap and small company indices. Includes one large-cap fund that represents 25% and 30%, respectively, of total U.S. plan assets for 2012 and 2011.
(c)
Based on the fair value of the investments owned by these funds that track various non-U.S. equity indices.
(d)
Based on quoted bid prices for comparable securities in the marketplace and broker/dealer quotes that are not observable.
(e)
Corporate bonds of U.S.-based companies represent 22% and 24%, respectively, of total U.S. plan assets for 2012 and 2011.
(f)
Based on the fair value of the contracts as determined by the insurance companies using inputs that are not observable.
(g)
Based on the appraised value of the investments owned by these funds as determined by independent third parties using inputs that are not observable.
(h)
Based on the fair value of the investments owned by these funds that track various government and corporate bond indices.
(i)
Based on the fair value of the investments owned by these funds. Includes managed hedge funds that invest primarily in derivatives to reduce currency exposure.
*
2012 and 2011 amounts include $365 million and $190 million, respectively, of retiree medical plan assets that are restricted for purposes of providing health benefits for U.S. retirees and their beneficiaries.
Reconciliation of the Beginning and Ending Balances of Level 3 Plan Assets
The change in Level 3 plan assets for 2012 is as follows:
 
Balance, End of 2011
 
Return on Assets Held at Year End
 
Return on Assets Sold
 
Purchases and Sales, Net
 
Balance, End of 2012
Real estate commingled funds
$
56

 
$
15

 
$
1

 
$
319

 
$
391

Contracts with insurance companies
54

 
9

 
—

 
(1
)
 
62

Total
$
110

 
$
24

 
$
1

 
$
318

 
$
453
Effects Of 1-Percentage-Point Change In The Assumed Health Care Trend Rate
A 1-percentage-point change in the assumed health care trend rate would have the following effects:
 
1% Increase
 
1%
Decrease
2012 Service and interest cost components
$
4

 
$
(4
)
2012 Benefit liability
$
40

 
$
(38
)
Components Of Benefit Expense [Member]
  
Defined Benefit Plan Disclosure [Line Items]  
Selected Financial Information For Pension And Retiree Medical Plans
The components of benefit expense are as follows:
 
 
Pension
 
Retiree Medical
 
U.S.
 
International
 
 
 
 
 
 
 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

Components of benefit expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
407

 
$
350

 
$
299

 
$
100

 
$
95

 
$
81

 
$
50

 
$
51

 
$
54

Interest cost
534

 
547

 
506

 
115

 
117

 
106

 
65

 
88

 
93

Expected return on plan assets
(796
)
 
(704
)
 
(643
)
 
(146
)
 
(136
)
 
(123
)
 
(22
)
 
(14
)
 
(1
)
Amortization of prior service cost/(credit)
17

 
14

 
12

 
1

 
2

 
2

 
(26
)
 
(28
)
 
(22
)
Amortization of net loss
259

 
145

 
119

 
53

 
40

 
24

 
—

 
12

 
9

 
421

 
352

 
293

 
123

 
118

 
90

 
67

 
109

 
133

Settlement/curtailment loss/(gain) (a)
185

 
(8
)
 
(2
)
 
4

 
30

 
1

 
—

 
—

 
(62
)
Special termination benefits
8

 
71

 
45

 
1

 
1

 
3

 
5

 
1

 
3

Total
$
614

 
$
415

 
$
336

 
$
128

 
$
149

 
$
94

 
$
72

 
$
110

 
$
74


(a)
Includes pension lump sum settlement charge of $195 million in 2012. This charge is reflected in items affecting comparability (see “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations).