XML 65 R41.htm IDEA: XBRL DOCUMENT v3.22.4
Pensions and Other Benefit Plans (Tables)
 12 Months Ended
Jan. 01, 2023
Retirement Benefits [Abstract]  
Components of Net Periodic Benefit Cost Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans for 2022, 2021 and 2020 include the following components:
 Retirement PlansOther Benefit Plans
(Dollars in Millions)202220212020202220212020
Service cost$1,327 1,421 1,380 320 309 287 
Interest cost911 770 955 105 81 133 
Expected return on plan assets(2,757)(2,645)(2,461)(8)(7)(7)
Amortization of prior service cost (184)(181)2 (5)(31)(31)
Recognized actuarial losses (gains)655 1,257 891 121 151 142 
Curtailments and settlements1 1 23 — — — 
Net periodic benefit cost (credit)$(47)623 790 533 503 524 
Rates Used to Develop Actuarial Present Value of Projected Benefit Obligation The following table represents the weighted-average actuarial assumptions:
 Retirement PlansOther Benefit Plans
Worldwide Benefit Plans202220212020202220212020
Net Periodic Benefit Cost
Service cost discount rate2.46 %2.14 2.82 2.59 2.09 3.04 
Interest cost discount rate2.80 %2.34 3.13 2.64 2.33 3.08 
Rate of increase in compensation levels4.02 %4.01 4.00 4.21 4.25 4.25 
Expected long-term rate of return on plan assets7.25 %7.71 8.12 
Benefit Obligation
Discount rate5.01 %2.49 2.14 5.42 2.68 2.23 
Rate of increase in compensation levels4.00 %4.01 4.00 4.21 4.21 4.27 
Assumed Health Care Cost Trend Rates The following table displays the assumed healthcare cost trend rates, for all individuals:
Healthcare Plans20222021
Healthcare cost trend rate assumed for next year5.99 %5.33 %
Rate to which the cost trend rate is assumed to decline (ultimate trend)4.01 %3.73 %
Year the rate reaches the ultimate trend rate2047 2046 
Schedule of Net Funded Status The following table sets forth information related to the benefit obligation and the fair value of plan assets at fiscal year-end 2022 and 2021 for the Company’s defined benefit retirement plans and other post-retirement plans:
 Retirement PlansOther Benefit Plans
(Dollars in Millions)2022202120222021
Change in Benefit Obligation
Projected benefit obligation — beginning of year$41,582 43,300 4,878 5,028 
Service cost1,327 1,421 320 309 
Interest cost911 770 105 81 
Plan participant contributions67 67 — — 
Amendments7 5 — — 
Actuarial (gains) losses(1)
(12,213)(2,132)(704)(188)
Divestitures & acquisitions— (2)— — 
Curtailments, settlements & restructuring(7)(7)— — 
Benefits paid from plan(1,228)(1,157)(393)(348)
Effect of exchange rates(815)(683)(9)(4)
Projected benefit obligation — end of year$29,631 41,582 4,197 4,878 
Change in Plan Assets
Plan assets at fair value — beginning of year$41,930 38,195 102 90 
Actual return (loss) on plan assets(8,665)4,439 (17)17 
Company contributions270 969 386 343 
Plan participant contributions67 67 — — 
Settlements(5)(7)— — 
Divestitures & acquisitions— (2)— — 
Benefits paid from plan assets(1,228)(1,157)(393)(348)
Effect of exchange rates(855)(574)— — 
Plan assets at fair value — end of year$31,514 41,930 78 102 
Funded status — end of year$1,883 348 (4,119)(4,776)
Amounts Recognized in the Company’s Balance Sheet consist of the following:
Non-current assets$4,581 4,436 — — 
Current liabilities(132)(115)(461)(438)
Non-current liabilities(2,566)(3,973)(3,658)(4,338)
Total recognized in the consolidated balance sheet — end of year$1,883 348 (4,119)(4,776)
Amounts Recognized in Accumulated Other Comprehensive Income consist of the following:
Net actuarial loss$3,948 5,539 239 1,113 
Prior service cost (credit)(1)
(1,417)(1,610)(7)(13)
Unrecognized net transition obligation— — — — 
Total before tax effects$2,531 3,929 232 1,100 
Accumulated Benefit Obligations — end of year$28,023 39,049 
(1)The actuarial gain for retirement plans in 2022 and 2021 was primarily related to increases in discount rates.
 Retirement PlansOther Benefit Plans
(Dollars in Millions)2022202120222021
Amounts Recognized in Net Periodic Benefit Cost and Other Comprehensive Income
Net periodic benefit cost (credit)$(47)623 533 503 
Net actuarial (gain) loss(793)(3,927)(751)(199)
Amortization of net actuarial loss(655)(1,257)(121)(151)
Prior service cost (credit)7 5 — — 
Amortization of prior service (cost) credit183 181 5 31 
Effect of exchange rates(140)(136)(1)— 
Total loss/(income) recognized in other comprehensive income, before tax$(1,398)(5,134)(868)(319)
Total recognized in net periodic benefit cost and other comprehensive income$(1,445)(4,511)(335)184 
Information Related to the Benefit Obligation and the Fair Value of Plan Assets
The following table displays the funded status of the Company's U.S. Qualified & Non-Qualified pension plans and international funded and unfunded pension plans at December 31, 2022 and December 31, 2021, respectively:

U.S. PlansInternational Plans
Qualified PlansNon-Qualified PlansFunded PlansUnfunded Plans
(Dollars in Millions)20222021202220212022202120222021
Plan Assets$20,937 27,944 — — 10,577 13,986 — — 
Projected Benefit Obligation18,394 25,041 1,937 2,703 9,024 13,428 276 410 
Accumulated Benefit Obligation17,696 23,985 1,872 2,479 8,202 12,212 253 373 
Over (Under) Funded Status
Projected Benefit Obligation$2,543 2,903 (1,937)(2,703)1,553 558 (276)(410)
Accumulated Benefit Obligation3,241 3,959 (1,872)(2,479)2,375 1,774 (253)(373)
Projected Future Benefit Payments from Company's Retirement and Other Benefit Plans The following table displays the projected future benefit payments from the Company’s retirement and other benefit plans:
(Dollars in Millions)202320242025202620272028-2032
Projected future benefit payments
Retirement plans$1,445 1,457 1,532 1,609 1,708 10,034 
Other benefit plans $471 485 433 447 462 2,539 
Projected Future Minimum Contributions to the Company's U.S. and International Unfunded Retirement Plans The following table displays the projected future minimum contributions to the unfunded retirement plans. These amounts do not include any discretionary contributions that the Company may elect to make in the future.
(Dollars in Millions)202320242025202620272028-2032
Projected future contributions$123 128 136 141 146 816 
Company' Retirement Plan Asset Allocation and Target Allocations The Company’s retirement plan asset allocation at the end of 2022 and 2021 and target allocations for 2023 are as follows:
Percent of
Plan Assets		Target
Allocation
 202220212023
Worldwide Retirement Plans
Equity securities62 %65 %61 %
Debt securities38 35 39 
Total plan assets100 %100 %100 %
Schedule of Defined Benefit Plans Disclosures
The following table sets forth the Retirement Plans' investments measured at fair value as of December 31, 2022 and December 31, 2021:
Quoted Prices
in Active
Markets for
Identical Assets		Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs(1)
Investments Measured at Net Asset Value
 (Level 1)(Level 2)(Level 3)Total Assets
(Dollars in Millions)2022202120222021202220212022202120222021
Short-term investment funds$33 102 13 1,033 — — — — 46 1,135 
Government and agency securities— — 5,863 7,016 — — — — 5,863 7,016 
Debt instruments— — 3,681 3,505 — — — — 3,681 3,505 
Equity securities8,846 14,107 2 2 — — — — 8,848 14,109 
Commingled funds— — 4,362 5,496 56 105 6,106 8,708 10,524 14,309 
Other assets— — 33 34 13 15 2,506 1,807 2,552 1,856 
Investments at fair value$8,879 14,209 13,954 17,086 69 120 8,612 10,515 31,514 41,930 

(1) The activity for the Level 3 assets is not significant for all years presented.