PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
Net periodic benefit cost for our pension and other postretirement benefit plans consisted of the following (in millions):
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Pension Benefits |
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Other Benefits |
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Three Months Ended |
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June 30,
2017 |
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July 1,
2016 |
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June 30,
2017 |
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July 1,
2016 |
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Service cost |
$ |
50 |
|
$ |
60 |
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|
$ |
4 |
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$ |
6 |
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Interest cost |
78 |
|
80 |
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|
7 |
|
7 |
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Expected return on plan assets1
|
(163 |
) |
(165 |
) |
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(3 |
) |
(2 |
) |
Amortization of prior service cost (credit) |
— |
|
(1 |
) |
|
(4 |
) |
(4 |
) |
Amortization of net actuarial loss |
45 |
|
46 |
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|
2 |
|
1 |
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Net periodic benefit cost |
10 |
|
20 |
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|
6 |
|
8 |
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Curtailment charges (credits)2
|
— |
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— |
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(42 |
) |
— |
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Special termination benefits2
|
39 |
|
5 |
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— |
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— |
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Total cost recognized in condensed consolidated statements of income |
$ |
49 |
|
$ |
25 |
|
|
$ |
(36 |
) |
$ |
8 |
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1 The weighted-average expected long-term rates of return on plan assets used in computing 2017 net periodic benefit cost are 8.0 percent for pension benefits and 4.5 percent for other benefits.
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2 |
The curtailment credits and special termination benefits were primarily related to North America refranchising and the Company's productivity, restructuring and integration initiatives. Refer to Note 2 and Note 11.
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Pension Benefits |
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Other Benefits |
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Six Months Ended |
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June 30,
2017 |
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July 1,
2016 |
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|
June 30,
2017 |
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July 1,
2016 |
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Service cost |
$ |
100 |
|
$ |
119 |
|
|
$ |
9 |
|
$ |
11 |
|
Interest cost |
156 |
|
160 |
|
|
15 |
|
15 |
|
Expected return on plan assets1
|
(324 |
) |
(329 |
) |
|
(6 |
) |
(5 |
) |
Amortization of prior service cost (credit) |
— |
|
(1 |
) |
|
(9 |
) |
(9 |
) |
Amortization of net actuarial loss |
89 |
|
92 |
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|
4 |
|
3 |
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Net periodic benefit cost |
21 |
|
41 |
|
|
13 |
|
15 |
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Curtailment charges (credits)2
|
— |
|
— |
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|
(42 |
) |
— |
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Special termination benefits2
|
57 |
|
13 |
|
|
— |
|
— |
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Total cost recognized in condensed consolidated statements of income |
$ |
78 |
|
$ |
54 |
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|
$ |
(29 |
) |
$ |
15 |
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1 The weighted-average expected long-term rates of return on plan assets used in computing 2017 net periodic benefit cost are 8.0 percent for pension benefits and 4.5 percent for other benefits.
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2 |
The curtailment credits and special termination benefits were primarily related to North America refranchising and the Company's productivity, restructuring and integration initiatives. Refer to Note 2 and Note 11.
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During the six months ended June 30, 2017, the Company contributed $55 million to our pension plans, and we anticipate making additional contributions of approximately $37 million during the remainder of 2017. The Company contributed $502 million to our pension plans during the six months ended July 1, 2016.
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