| Note
6. Pension and Other Postretirement Benefit Plans |
|
|
|
The company
sponsors several qualified and nonqualified pension and other postretirement
benefit plans for its employees. The following table provides a
reconciliation of the changes in the plans' benefit obligations
and fair value of plan assets over the two-year period ending December
27, 1998:
|
|
Pension
|
Other
|
Postretirement
Benefits
|
| Dollar
amounts in millions |
1998
|
1997
|
1998
|
1997
|
| Reconciliation
of benefit obligation: |
|
|
|
|
|
Benefit
obligation at beginning of year |
$
1,736
|
$
1,594
|
$
213
|
$
232
|
|
Service
cost |
54
|
57
|
4
|
5
|
|
Interest
cost |
134
|
128
|
19
|
16
|
|
Plan
participants' contributions |
--
|
--
|
3
|
2
|
|
Actuarial
(gain)/loss |
97
|
57
|
53
|
(27)
|
|
Foreign
currency exchange rate changes |
(15)
|
(6)
|
(1)
|
(1)
|
|
Benefits
paid |
(143)
|
(129)
|
(15)
|
(14)
|
|
Plan
curtailments, settlements and special termination benefits |
3
|
1
|
--
|
--
|
|
Plan
amendments |
62
|
36
|
(2)
|
--
|
|
Business
combinations and divestitures |
94
|
(2)
|
3
|
--
|
|
Benefit
obligation at end of year |
$
2,022
|
$
1,736
|
$
277
|
$
213
|
|
|
|
|
|
|
| Reconciliation
of fair value of plan assets: |
|
|
|
|
|
Fair
value of plan assets at beginning of year (actual) |
$
2,420
|
$
1,959
|
$
2
|
$
2
|
|
Actual
return on plan assets |
481
|
584
|
--
|
--
|
|
Foreign
currency exchange rate changes |
(13)
|
(5)
|
--
|
--
|
|
Employer
contributions |
7
|
6
|
|
|
|
Plan
participants' contributions |
|
|
|
|
|
Benefits
paid |
(138)
|
(124)
|
|
|
|
Plan
settlements |
|
(2)
|
|
|
|
Business
combinations and divestitures |
92
|
|
|
|
|
Fair value of
plan assets at end of year (estimated)
|
$
2,849
|
$
2,418
|
$
2
|
$
2
|
| |
|
|
|
|
|
|
|
|
|
|
|
| The
company funds its qualified pension plans and accrues for nonqualified
pension benefits and health and life postretirement benefits. The
funded status of these plans at December 27, 1998, and December 28,
1997, is as follows: |
|
|
|
|
|
|
|
Pension
|
Other
|
Postretirement
Benefits
|
| Dollar
amounts in millions |
December
27, 1998
|
December
28, 1997
|
December
27, 1998
|
December
28, 1997
|
| |
|
|
|
|
| Funded
status |
$
827
|
$
683
|
$
(260)
|
$
(200)
|
| Unrecognized
net liability/(asset) |
1
|
2
|
|
|
| Unrecognized
prior service cost |
142
|
97
|
(2)
|
|
| Unrecognized
net (gain)/loss |
(991)
|
(867)
|
(2)
|
(55)
|
Unrecognized
net transition
(asset)/obligation |
(15)
|
(19)
|
|
|
| Prepaid/(accrued)
benefit cost |
$
(36)
|
$
(104)
|
$
(264)
|
$
(255)
|
| Amounts
recognized in balance
sheet consist of: |
|
|
|
|
|
Prepaid
benefit cost |
$
21
|
|
|
|
|
Accrued
benefit liability |
(75)
|
|
|
|
|
Intangible
asset |
10
|
|
|
|
|
Cumulative
other
comprehensive expense |
8
|
|
|
|
|
Net
amount recognized |
$
(36)
|
|
|
|
|
|
|
|
|
|
|
The assets of
the U.S. and Canadian pension plans, as of December 27, 1998, and
December 28, 1997, consist of a highly diversified mix of equity,
fixed income and real estate securities.
Approximately
1,500 employees are covered by union-administered multi-employer
pension plans to which the company makes negotiated contributions
based generally
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