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Pension Benefit Obligations | 12 Months Ended
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Sep. 27, 2024
Retirement Benefits [Abstract] |
Pension Benefit Obligations | Pension Benefit Obligations The Company sponsors various postretirement benefit plans in the United States including defined benefit pension plans (“Defined Benefit Pension Plans”). The Defined Benefit Pension Plans are closed to new participants and benefits are generally based on the employee’s years of creditable service and compensation. The Defined Benefit Pension Plans benefit obligations and the fair value of the plan assets were measured as of September 27, 2024. The following tables provide reconciliations of the changes in the Defined Benefit Pension Plans benefit obligations, reconciliations of the changes in the fair value of assets for the years ended September 27, 2024, September 29, 2023 and September 30, 2022 and reconciliations of the funded status as of September 27, 2024 and September 29, 2023.
|  | For the years ended |  |  |
(Amounts in millions) |  | September 27, 2024 |  | September 29, 2023 |  | September 30, 2022 |  |  |  |  |  |  |
Change in benefit obligation |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of period |  | $ | 292 |  |  | $ | 310 |  |  | $ | 422 |  |  |  |  |  |  |  |
Interest cost |  | 17 |  |  | 16 |  |  | 9 |  |  |  |  |  |  |  |
Benefits paid from the plans |  | (22) |  |  | (21) |  |  | (21) |  |  |  |  |  |  |  |
Actuarial (gain) loss |  | 26 |  |  | (13) |  |  | (100) |  |  |  |  |  |  |  |
Benefit obligation at end of period |  | $ | 313 |  |  | $ | 292 |  |  | $ | 310 |  |  |  |  |  |  |  |
|  | For the years ended |  |  |
(Amounts in millions) |  | September 27, 2024 |  | September 29, 2023 |  | September 30, 2022 |  |  |  |  |  |  |
Change in plan assets |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of period |  | $ | 281 |  |  | $ | 271 |  |  | $ | 366 |  |  |  |  |  |  |  |
Actual return on plan assets |  | 55 |  |  | 30 |  |  | (74) |  |  |  |  |  |  |  |
Employer contributions to plans |  | 1 |  |  | — |  |  | — |  |  |  |  |  |  |  |
Benefits paid from the plans |  | (22) |  |  | (20) |  |  | (21) |  |  |  |  |  |  |  |
Fair value of plan assets at end of period |  | $ | 315 |  |  | $ | 281 |  |  | $ | 271 |  |  |  |  |  |  |  |
|  | For the years ended |  |  |
(Amounts in millions) |  | September 27, 2024 |  | September 29, 2023 |  | September 30, 2022 |  |  |  |  |  |  |
Reconciliation of funded status: |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at end of year |  | $ | 315 |  |  | $ | 281 |  |  | $ | 271 |  |  |  |  |  |  |  |
Benefit obligation at end of year |  | 313 |  |  | 292 |  |  | 310 |  |  |  |  |  |  |  |
Net amount recognized at end of year |  | $ | 2 |  |  | $ | (11) |  |  | $ | (39) |  |  |  |  |  |  |  |
The following table sets forth the amounts recognized in the consolidated balance sheets as of September 27, 2024 and September 29, 2023:
(Amounts in millions) |  | September 27, 2024 |  | September 29, 2023 |  |  |  |  |
Amount recognized in the consolidated balance sheets: |  |  |  |  |  |  |  |  |
Other long-term assets |  | $ | 2 |  |  | $ | — |  |  |  |  |  |
Other long-term liabilities |  | — |  |  | (11) |  |  |  |  |  |
Net amount recognized in the balance sheets |  | $ | 2 |  |  | $ | (11) |  |  |  |  |  |
The following table sets forth the components of net periodic benefit cost for the Defined Benefit Pension Plans for the years ended September 27, 2024, September 29, 2023 and September 30, 2022:
|  | For the years ended |  |  |
(Amounts in millions) |  | September 27, 2024 |  | September 29, 2023 |  | September 30, 2022 |  |  |  |  |  |  |
Components of net periodic benefit: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest cost on projected benefit obligation |  | $ | 17 |  |  | $ | 16 |  |  | $ | 9 |  |  |  |  |  |  |  |
Expected return on plan assets |  | (17) |  |  | (18) |  |  | (18) |  |  |  |  |  |  |  |
Amortization of net gain |  | (3) |  |  | (2) |  |  | — |  |  |  |  |  |  |  |
Net periodic benefit |  | $ | (3) |  |  | $ | (4) |  |  | $ | (9) |  |  |  |  |  |  |  |
Actuarial gains and losses are amortized using a corridor approach. The gain or loss corridor is equal to 10% of the greater of the projected benefit obligation and the fair value of plan assets. Gains and losses in excess of the corridor are amortized over the average remaining lifetime expectancy of the plan participants. The change in plan assets and benefit obligations recognized in other comprehensive income during the year was net income of $9 million, $24 million and $8 million for the years ended September 27, 2024, September 29, 2023 and September 30, 2022, respectively. The amount of applicable deferred income taxes included in other comprehensive income arising from a change in net prior service cost and net (loss) income was a provision of $3 million, $6 million and $2 million for the years ended September 27, 2024, September 29, 2023 and September 30, 2022, respectively. The following table provides additional information for the Defined Benefit Pension Plans with accumulated benefit obligations in excess of plan assets as of September 27, 2024 and September 29, 2023:
(Amounts in millions) |  | September 27, 2024 |  | September 29, 2023 |  |  |  |  |
Benefit obligation |  | $ | 313 |  |  | $ | 292 |  |  |  |  |  |
Accumulated benefit obligation |  | 313 |  |  | 292 |  |  |  |  |  |
Fair value of plan assets |  | 315 |  |  | 281 |  |  |  |  |  |
The required minimum contributions for the Defined Benefit Pension Plans are not significant. In addition, the Company may make discretionary contributions. The following table provides the expected future benefit payments for the fiscal years ending September 30:
(Amounts in millions) | 2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029 |  | Thereafter
Defined Benefit Pension Plans | $ | 24 |  |  | $ | 23 |  |  | $ | 23 |  |  | $ | 24 |  |  | $ | 24 |  |  | $ | 114 |
The following are the underlying assumptions for the Defined Benefit Pension Plans as of September 27, 2024, September 29, 2023 and September 30, 2022:
|  | For the years ended |  |  |
|  | September 27, 2024 |  | September 29, 2023 |  | September 30, 2022 |  |  |  |  |  |  |
Weighted-average assumptions to determine benefit obligation: |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 5.0 | % |  | 6.0 | % |  | 5.6 | % |  |  |  |  |  |  |
Weighted-average assumptions to determine net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 6.0 | % |  | 5.6 | % |  | 2.8 | % |  |  |  |  |  |  |
Expected long-term rate of return on plan assets |  | 7.0 | % |  | 7.0 | % |  | 6.5 | % |  |  |  |  |  |  |
Defined Benefit Pension Plan costs are determined using the assumptions as of the beginning of the plan year. The funded status is determined using the assumptions as of the end of the plan year. The following table summarizes the Company’s target allocation for fiscal years 2024 and 2023 asset allocation as of September 27, 2024 and September 29, 2023:
| Fiscal Year 2024 Target Allocation |  | Percentage of Plan Assets as of September 27, 2024 |  | Fiscal Year 2023 Target Allocation |  | Percentage of Plan Assets as of September 29, 2023
Asset Category: |  |  |  |  |  |  |
Equities | 30.0 | % |  | 29.9 | % |  | 50.5 | % |  | 52.2 | %
Debt | 67.8 | % |  | 68.2 | % |  | 47.7 | % |  | 44.6 | %
Cash | 2.2 | % |  | 1.9 | % |  | 1.8 | % |  | 3.2 | %
Total | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | %
The Company’s plans seek a competitive rate of return relative to an appropriate level of risk depending on the funded status and obligations of each plan and typically employ both active and passive investment management strategies. The Company’s risk management practices include diversification across asset classes and investment styles and periodic rebalancing toward asset allocation targets. The target asset allocation selected for each plan reflects a risk/return profile that the Company believes is appropriate relative to each plan’s liability structure and return goals. To develop the expected long‑term rate of return on assets assumption, the Company considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio and the diversification of the portfolio. This resulted in the selection of a 7.0% weighted‑average long‑term rate of return on assets assumption for the fiscal years ended September 27, 2024 and September 29, 2023. As of September 27, 2024 and September 29, 2023, the fair values of the Defined Benefit Pension Plan by major asset categories were as follows:
| September 27, 2024 |  |  | September 29, 2023
| Carrying Value |  | Quoted Prices in Active Markets (Level 1) |  |  | Carrying Value |  | Quoted Prices in Active Markets (Level 1)
(Amounts in millions) |  |  |  |
Investments measured at fair value |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 6 |  |  | $ | 6 |  |  |  | $ | 9 |  |  | $ | 9 |
Investment funds |  |  |  |  |  |  |  |
Diversified and equity funds | — |  |  | — |  |  |  | 147 |  |  | 147 |
Fixed income funds | 128 |  |  | 128 |  |  |  | 62 |  |  | 62 |
Total investments measured at fair value | $ | 134 |  |  | $ | 134 |  |  |  | $ | 218 |  |  | $ | 218 |
Investments measured at NAV |  |  |  |  |  |  |  |
Investment funds |  |  |  |  |  |  |  |
Common collective funds - debt | 87 |  |  |  |  |  | 63 |  |  |
Diversified and equity funds | 94 |  |  |  |  |  | — |  |  |
Total investments measured at NAV | 181 |  |  |  |  |  | 63 |  |  |
Total | $ | 315 |  |  |  |  |  | $ | 281 |  |  |
Cash equivalents are mostly comprised of short‑term money‑market instruments and are valued at cost, which approximates fair value. Equity investment funds categorized as Level 1 are traded on active national and international exchanges and are valued at their closing prices as of our measurement dates. Fixed income investment funds categorized as Level 1 are publicly traded on an active exchange. Common collective funds are valued based on net asset value (“NAV”) per share or unit as a practical expedient as reported by the fund manager, multiplied by the number of shares or units held as of the measurement date. Accordingly, these NAV‑based investments have been excluded from the fair value hierarchy. These collective investment funds have minimal redemption notice periods and are redeemable daily at the NAV, less transaction fees, without significant restrictions. There are no significant unfunded commitments related to these investments. Multiemployer Pension Plans We are subject to several collective-bargaining agreements (“CBAs”) that require contributions to a multiemployer defined benefit pension plan that covers its union-represented employees. As of September 27, 2024, approximately 24% of our personnel are covered by a CBA and 10% of our personnel are covered by a CBA that will expire in one year. The following table outlines our participation in multiemployer pension plans as of September 27, 2024, September 29, 2023 and September 30, 2022. We participated in the International Association of Machinists National Pension Fund (“IAMNPF”) and Western Conference of Teamsters Pension Trust (“WCTPT”) and certain other plans were aggregated in the Other line in the following table as contributions to each of these plans are not material. The “EIN/PN” column provides the Employer Identification Number (“EIN”) and the three-digit plan number (“PN”). The most recent Pension Protection Act (“PPA”) zone status available for 2024 and 2023 is indicated below. The zone status is based on information that the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates if the plan has a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) which is either pending or has been implemented. In addition to regular plan contributions, we may be subject to a surcharge if the plan is in the red zone. The “Surcharge Imposed” column indicates whether a surcharge has been imposed on contributions to the plan. The last column lists the expiration date of the collective-bargaining agreements to which the plan is subject.
|  |  | PPA Zone Status |  | FIP / RP Status |  | Total Contributions by the Company |  |  |  |
|  |  |  |  | (Amounts in millions) |  |  |  |
Pension Fund | EIN/PN |  | 2024 |  | 2023 |  | Pending / Implemented |  | September 27, 2024 |  | September 29, 2023 |  | September 30, 2022 |  | Surcharge Imposed |  | Expiration Date of CBA
IAMNPF (1) | 516031295 / 001 |  | Red |  | Red |  | RP Implemented |  | $ | 29 |  |  | $ | 9 |  |  | $ | 21 |  |  | 10.0% |  | October 31, 2024 to May 31, 2029
WCTPT (2) | 91-6145047 / 001 |  | Green |  | Green |  | No |  | 9 |  |  | 9 |  |  | 7 |  |  | No |  | September 30, 2025 to September 30, 2029
Other |  |  |  |  |  |  |  |  | 16 |  |  | 6 |  |  | 13 |  |  |  |  |
Total |  |  |  |  |  |  |  |  | $ | 54 |  |  | $ | 24 |  |  | $ | 41 |  |  |  |  |
(1) Of the 40 CBAs that require contributions to this plan, the contributions through the expiration date of the collective-bargaining agreement will approximate $73.0 million to the IAMNPF. (2) Of the ten CBAs that require contributions to this plan, the contributions through the expiration date of the collective-bargaining agreement will approximate $40.0 million to the WCTPT.

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