FORM 10-K

60 Amounts recognized in our balance sheets are as follows: Pension Benefits Postretirement Benefits Other than Pensions (In millions) 2017 2016 2017 2016 Non-current assets $ 106 $ 63 $ — $ — Current liabilities (27) (26) (31) (35) Non-current liabilities (765) (1,154) (258) (282) Recognized in Accumulated other comprehensive loss, pre-tax: Net loss (gain) 2,055 2,187 (13) (8) Prior service cost (credit) 64 78 (33) (40) The accumulated benefit obligation for all defined benefit pension plans was $8.1 billion and $7.6 billion at December 30, 2017 and December 31, 2016, respectively, which included $404 million and $387 million, respectively, in accumulated benefit obligations for unfunded plans where funding is not permitted or in foreign environments where funding is not feasible. Pension plans with accumulated benefit obligations exceeding the fair value of plan assets are as follows: (In millions) 2017 2016 Projected benefit obligation $ 741 $ 7,799 Accumulated benefit obligation 670 7,422 Fair value of plan assets 237 6,627 Assumptions The weighted-average assumptions we use for our pension and postretirement plans are as follows: Pension Benefits Postretirement Benefits Other than Pensions 2017 2016 2015 2017 2016 2015 Net periodic benefit cost Discount rate 4.13% 4.66% 4.25% 4.00% 4.50% 4.00% Expected long-term rate of return on assets 7.57% 7.58% 7.57% Rate of compensation increase 3.50% 3.49% 3.49% Benefit obligations at year-end Discount rate 3.66% 4.13% 4.66% 3.50% 4.00% 4.50% Rate of compensation increase 3.50% 3.50% 3.49% Our assumed healthcare cost trend rate for both the medical and prescription drug cost was 7.25% in both 2017 and 2016. We expect this rate to gradually decline to 5% by 2024 where we assume it will remain. A one-percentage-point change in these assumed healthcare cost trend rates would have the following effects: (In millions) One- Percentage- Point Increase One- Percentage- Point Decrease Effect on total of service and interest cost components $ 1 $ (1) Effect on postretirement benefit obligations other than pensions 12 (11) Pension Assets The expected long-term rate of return on plan assets is determined based on a variety of considerations, including the established asset allocation targets and expectations for those asset classes, historical returns of the plans’ assets and other market considerations. We invest our pension assets with the objective of achieving a total rate of return over the long term that will be sufficient to fund future pension obligations and to minimize future pension contributions. We are willing to tolerate a commensurate level of risk to achieve this objective based on the funded status of the plans and the long-term nature of our pension liability. Risk is controlled by maintaining a portfolio of assets that is diversified across a variety of asset classes, investment styles and investment managers. Where possible, investment managers are prohibited from owning our securities in the portfolios that they manage on our behalf.