Postemployment Benefit Plans | 9 Months Ended |
Sep. 27, 2014 |
Compensation and Retirement Disclosure [Abstract] | ' |
Postemployment Benefit Plans | ' |
Postemployment Benefit Plans |
Pension Plans |
Components of Net Pension Cost / (Benefit): |
Net pension cost / (benefit) consisted of the following for the three and nine months ended September 27, 2014 and September 28, 2013: |
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| | | | | | | | | | | | | | | |
| U.S. Plans | | Non-U.S. Plans |
| For the Three Months Ended | | For the Three Months Ended |
| September 27, | | September 28, | | September 27, | | September 28, |
2014 | 2013 | 2014 | 2013 |
| (in millions) |
Service cost | $ | 22 | | | $ | 22 | | | $ | 3 | | | $ | 5 | |
|
Interest cost | 71 | | | 74 | | | 14 | | | 14 | |
|
Expected return on plan assets | (83 | ) | | (79 | ) | | (15 | ) | | (14 | ) |
Actuarial losses / (gains) | 26 | | | (174 | ) | | — | | | — | |
|
Amortization of prior service cost | 2 | | | 1 | | | — | | | — | |
|
Settlements | — | | | 18 | | | — | | | — | |
|
Curtailments | 1 | | | (1 | ) | | — | | | — | |
|
Special termination benefits | — | | | 9 | | | — | | | — | |
|
Net pension cost / (benefit) | $ | 39 | | | $ | (130 | ) | | $ | 2 | | | $ | 5 | |
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| U.S. Plans | | Non-U.S. Plans |
| For the Nine Months Ended | | For the Nine Months Ended |
| September 27, | | September 28, | | September 27, | | September 28, |
2014 | 2013 | 2014 | 2013 |
| (in millions) |
Service cost | $ | 63 | | | $ | 77 | | | $ | 10 | | | $ | 16 | |
|
Interest cost | 215 | | | 216 | | | 42 | | | 42 | |
|
Expected return on plan assets | (244 | ) | | (237 | ) | | (45 | ) | | (43 | ) |
Actuarial losses / (gains) | 4 | | | (772 | ) | | (17 | ) | | 18 | |
|
Amortization of prior service cost | 4 | | | 3 | | | — | | | — | |
|
Settlements | — | | | 32 | | | — | | | — | |
|
Curtailments | 1 | | | (3 | ) | | — | | | — | |
|
Special termination benefits | — | | | 54 | | | — | | | — | |
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Net pension cost / (benefit) | $ | 43 | | | $ | (630 | ) | | $ | (10 | ) | | $ | 33 | |
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In the third quarter of 2014, we remeasured certain of our U.S. pension plans due to the amount of lump sum payments made and the impact of renegotiating certain collective bargaining agreements, resulting in an aggregate expense from market-based impacts of $26 million. We recorded $17 million of the expense from market-based impacts in cost of sales and $9 million in selling, general and administrative expenses in accordance with our policy for allocating employee costs. |
In addition, we remeasure all of our postemployment benefit plans at least annually at the end of our fiscal year. As a result of the December 28, 2013 remeasurement, we capitalized an aggregate benefit of $34 million from market-based impacts related to our pension plans into inventory consistent with our capitalization policy. The entire $34 million of benefit previously capitalized has been recognized in cost of sales. The expense from market-based impacts for the three months ended September 27, 2014 and the benefit from market-based impacts for the nine months ended September 27, 2014 are included in actuarial losses / (gains) in the tables above. |
In the second and third quarters of 2013, as a result of the number of individuals electing lump sum payments from the plans associated with our voluntary early retirement program, we were required to remeasure certain of our U.S. pension plans. These remeasurements resulted in an aggregate benefit from market-based impacts of $778 million as of September 28, 2013, primarily driven by a 90 basis point weighted average increase in the discount rate. We recorded $451 million of the benefit from market-based impacts in cost of sales and $327 million in selling, general and administrative expenses. The benefits from market-based impacts in the three months and nine months ended September 28, 2013 are included in actuarial losses / (gains) in the tables above. |
Employer Contributions: |
During the nine months ended September 27, 2014, we contributed $139 million to our U.S. pension plans and $9 million to our non-U.S. pension plans. Based on our contribution strategy, we plan to make further contributions of up to approximately $20 million to our U.S. plans and up to approximately $30 million to our non-U.S. plans during the remainder of 2014. However, our actual contributions may differ due to many factors, including changes in tax, employee benefit, or other laws, tax deductibility, significant differences between expected and actual pension asset performance or interest rates, or other factors. |
Postretirement Benefit Plans |
Components of Net Postretirement Health Care Cost: |
Net postretirement health care cost consisted of the following for the three and nine months ended September 27, 2014 and September 28, 2013: |
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| | | | | | | | | | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended |
| September 27, | | September 28, | | September 27, | | September 28, |
2014 | 2013 | 2014 | 2013 |
| (in millions) |
Service cost | $ | 7 | | | $ | 9 | | | $ | 20 | | | $ | 26 | |
|
Interest cost | 37 | | | 36 | | | 111 | | | 107 | |
|
Actuarial (gains) / losses | — | | | — | | | (52 | ) | | 4 | |
|
Amortization of prior service credit | (8 | ) | | (7 | ) | | (22 | ) | | (20 | ) |
Special termination benefits | — | | | — | | | — | | | 5 | |
|
Net postretirement health care cost | $ | 36 | | | $ | 38 | | | $ | 57 | | | $ | 122 | |
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As a result of the annual remeasurement of our postretirement health care plans, we recorded a benefit from market-based impacts of $15 million into inventory as of December 28, 2013 consistent with our capitalization policy. As of September 27, 2014, the entire benefit previously capitalized has been recognized in cost of sales and is included in actuarial (gains) / losses in the table above for the nine months ended September 27, 2014. |
Other Postemployment Benefit Plans |
Components of Net Other Postemployment Cost / (Benefit): |
Net other postemployment cost / (benefit) consisted of the following for the three and nine months ended September 27, 2014 and September 28, 2013: |
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| | | | | | | | | | | | | | | |
| For the Three Months Ended | | For the Nine Months Ended |
| September 27, | | September 28, | | September 27, | | September 28, |
2014 | 2013 | 2014 | 2013 |
| (in millions) |
Service cost | $ | 1 | | | $ | 1 | | | $ | 2 | | | $ | 2 | |
|
Interest cost | — | | | — | | | 1 | | | 1 | |
|
Actuarial losses / (gains) | — | | | 1 | | | — | | | (3 | ) |
|
Other | — | | | (2 | ) | | 4 | | | (1 | ) |
|
Net other postemployment cost / (benefit) | $ | 1 | | | $ | — | | | $ | 7 | | | $ | (1 | ) |
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