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Pension and Other Retirement Plans | 12 Months Ended
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Dec. 29, 2024
Retirement Benefits [Abstract] |
Pension and Other Retirement Plans | PENSION AND OTHER RETIREMENT PLANS Company Sponsored Defined Benefit Pension Plans We have several qualified and non-qualified defined benefit pension plans. Benefits under the qualified plans were frozen in 2021 for all non-union participants. The following table presents a reconciliation of the pension benefit obligation, plan assets and the funded status of our pension plans:
| December 29, 2024 |  | December 31, 2023
| (in millions)
Change in benefit obligation: |  |  |
Benefit obligation at beginning of year | $ | 1,829 |  |  | $ | 1,815 |
Service cost | 12 |  |  | 13 |
Interest cost | 99 |  |  | 98 |
Benefits paid | (116) |  |  | (118) |
Actuarial (gain) loss | (24) |  |  | 21 |
Benefit obligation at end of year | 1,799 |  |  | 1,829 |
Change in plan assets: (1) |  |  |
Fair value of plan assets at beginning of year | 1,551 |  |  | 1,518 |
Actual return on plan assets | 6 |  |  | 129 |
Employer contributions | 56 |  |  | 22 |
Benefits paid | (116) |  |  | (118) |
Fair value of plan assets at end of year | 1,498 |  |  | 1,551 |
Funded status | $ | 302 |  |  | $ | 278 |
Amounts recognized in the consolidated balance sheets: |  |  |
Net long-term pension liability | 279 |  |  | 255 |
Accrued expenses and other current liabilities | 23 |  |  | 22 |
Net amount recognized at end of year | $ | 302 |  |  | $ | 278 |
________________ (1)Excludes the assets and related activity of our non-qualified defined benefit pension plans. The fair value of assets related to our non-qualified plans was $141 million and $128 million as of December 29, 2024 and December 31, 2023, respectively. These assets are recorded in prepaid expenses and other current assets, and other assets within the consolidated balance sheets. The accumulated benefit obligation for all defined benefit pension plans was $1,774 million and $1,803 million as of December 29, 2024 and December 31, 2023, respectively. The accumulated benefit obligation exceeded plan assets for all defined benefit plans as of December 29, 2024 and December 31, 2023, respectively. The following table presents the pre-tax unrecognized items included as components of accumulated other comprehensive loss related to our defined benefit pension plans as of the dates indicated:
| December 29, 2024 |  | December 31, 2023
| (in millions)
Unrecognized actuarial loss | $ | (552) |  |  | $ | (489) |
Unrecognized prior service cost | (2) |  |  | (3) |
The following table presents the components of the net periodic pension cost (benefit) for the periods indicated:
| Fiscal Year
| 2024 |  | 2023 |  | 2022
| (in millions)
Service cost | $ | 12 |  |  | $ | 13 |  |  | $ | 23 |
Interest cost | 99 |  |  | 98 |  |  | 77 |
Expected return on plan assets | (107) |  |  | (107) |  |  | (128) |
Amortization | 18 |  |  | 18 |  |  | 22 |
Net periodic pension cost (benefit) | $ | 22 |  |  | $ | 22 |  |  | $ | (7) |
The following table shows our weighted average assumptions for the periods indicated:
| Fiscal Year
| 2024 |  | 2023 |  | 2022
Discount rate to determine net periodic pension cost (benefit) | 5.57 | % |  | 5.58 | % |  | 3.07 | %
Discount rate to determine benefit obligation | 5.78 |  |  | 5.57 |  |  | 5.57 |
Expected long-term rate of return on plan assets | 7.05 |  |  | 7.25 |  |  | 6.00 |
Rate of compensation increase | 4.00 |  |  | 4.00 |  |  | 4.00 |
We use a third-party actuary to assist in the determination of assumptions used and the measurement of our pension obligation and related costs. We review and select the discount rate to be used in connection with our pension obligation annually. In determining the discount rate, a hypothetical bond portfolio is constructed based on bonds (with an AA rating or better) whose cash flows from coupons and maturities match the year-by-year projected benefit payments from defined benefit pension plans. We use the resulting yield of this portfolio to determine the discount rate applicable to our obligation. A similar methodology is used to develop the discount rate applicable to service cost. To determine the expected long-term return on plan assets, we consider the current and anticipated asset allocations, as well as historical and estimated returns on various categories of plan assets. Long-term trends are evaluated relative to market factors such as inflation, interest rates and fiscal and monetary policies in order to assess the capital market assumptions. Actual results that differ from our assumptions are recorded in accumulated other comprehensive loss and amortized over future periods and, therefore, affect expense in future periods. Pension plan assets may be invested in cash and cash equivalents, equities, commingled funds, debt securities and alternative investments. Our investment policy for the pension plans is to balance risk and return through a diversified portfolio of high-quality equity and fixed income securities. Maturity for fixed income securities is managed such that sufficient liquidity exists to meet near-term benefit payment obligations. The plans retain outside investment advisors to manage plan investments within parameters established by our plan trustees. The following table presents the fair value of our qualified pension plan assets by major asset category. The allocation of our pension plan assets is based on the target range presented in the following table.
Asset category: |  | December 29, 2024 |  | December 31, 2023 |  | Target Range
|  | (in millions) |
Cash and cash equivalents, net of unsettled transactions |  | $ | 198 |  |  | $ | 159 |  |  | 0-15%
Equity securities |  | 511 |  |  | 508 |  |  | 30-50%
Debt securities |  | 493 |  |  | 582 |  |  | 30-50%
Alternative assets |  | 296 |  |  | 302 |  |  | 2-25%
Total plan assets |  | $ | 1,498 |  |  | $ | 1,551 |  |  |
See “Note 16: Fair Value Measurements” for additional information about the fair value of our pension assets. The funding requirement for our qualified pension plans in fiscal year 2025 is expected to be $6 million. We also expect to contribute $23 million to our non-qualified pension plans to cover expected benefit payments. Expected future benefit payments for our defined benefit pension plans are as follows:
Fiscal Year |  | (in millions)
2025 |  | $ | 122 |
2026 |  | 120 |
2027 |  | 123 |
2028 |  | 126 |
2029 |  | 126 |
2030 - 2034 |  | 659 |
Multiemployer Defined Benefit Pension Plans In addition to our Company sponsored defined benefit pension plans, we contribute to several multiemployer defined benefit pension plans under collective bargaining agreements that cover certain of our union-represented employees. The risks of participating in such plans are different from the risks of single-employer plans, in the following respects: •Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. •If a participating employer ceases to contribute to a multiemployer plan, the unfunded obligation of the plan may be borne by the remaining participating employers. •If we were to withdraw from a multiemployer plan, we may be required to pay the plan an amount based on the underfunded status of the plan and on the history of our participation in the plan prior to withdrawal. This is referred to as a withdrawal liability. Each multiemployer plan in which we participate has a certified zone status as currently defined by the Pension Protection Act of 2006. The zone status is based on information provided by each plan and is certified by the plan's actuary. The following are descriptions of the zone status types based on criteria established under the Internal Revenue Code (“IRC”): •“Red” Zone—Plan has been determined to be in “critical status” and is generally less than 65% funded. A rehabilitation plan, as required under the IRC, must be adopted by plans in the “red” zone. Plan participants may be responsible for the payment of surcharges, in addition to the contribution rate specified in the applicable collective bargaining agreement, for a plan in “critical status,” in accordance with the requirements of the IRC. •“Yellow” Zone—Plan has been determined to be in “endangered status” and is generally less than 80% funded. A funding improvement plan, as required under the IRC, must be adopted. •“Green” Zone—Plan has been determined to be neither in “critical status” nor in “endangered status,” and is generally at least 80% funded. The IAM National Pension Fund National Pension Plan was in the “red” zone, and all other plans in which we participate were in the “green” zone for the two most recent benefit plan years that have been certified. The following table summarizes information about the multiemployer plans in which we participate, including our contributions to the plans. Our contributions to these plans did not exceed 5% of total plan contributions for any plan year presented.
|  |  |  | Fiscal Years |  |
Plan |  | EIN / PN (1) |  | 2024 |  | 2023 |  | 2022 |  | Expiration Dates of Collective Bargaining Agreements
|  |  |  | (in millions) |  |
United Food and Commercial Workers International Union Industry Pension Fund |  | 51-6055922 / 001 |  | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |  |  | Multiple (2)
Central Pension Fund of the International Union of Operating Engineers and Participating Employers |  | 36-6052390 / 001 |  | — |  |  | — |  |  | — |  |  | October 2028
IAM National Pension Fund National Pension Plan |  | 51-6031295 / 002 |  | — |  |  | — |  |  | — |  |  | February 2026
Total contributions to multiemployer plans |  |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 2 |  |  |
________________ (1)Represents the Employer Identification Number and the three-digit plan number assigned to a plan by the Internal Revenue Service. (2)We have multiple collective bargaining agreements associated with the United Food and Commercial Workers International Union Industry Pension Fund. These agreements are currently scheduled to expire between January 2026 and May 2028. Other Post-Employment Benefit Plans We sponsor defined contribution plans (401(k) plans) covering substantially all U.S. employees. The amount of employee contributions we match varies depending on the plan or other factors, but is based primarily on each participant’s level of contribution and cannot exceed the maximum allowable for tax purposes. Total Company contributions were $68 million, $67 million, and $68 million, in fiscal years 2024, 2023 and 2022, respectively. We also provide health care and life insurance benefits for certain retired employees. These plans are unfunded and generally pay covered costs reduced by retiree premium contributions, co-payments and deductibles. We retain the right to modify or eliminate these benefits. We consider disclosures related to these plans immaterial to the consolidated financial statements.

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