Net periodic benefit cost for our pension and other postretirement benefit plans consisted of the following (in millions):
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Pension Benefits |
|
Other Benefits |
|
Three Months Ended |
|
June 30,
2017 |
|
July 1,
2016 |
|
|
June 30,
2017 |
|
July 1,
2016 |
|
Service cost |
$ |
50 |
|
$ |
60 |
|
|
$ |
4 |
|
$ |
6 |
|
Interest cost |
78 |
|
80 |
|
|
7 |
|
7 |
|
Expected return on plan assets1
|
(163 |
) |
(165 |
) |
|
(3 |
) |
(2 |
) |
Amortization of prior service cost (credit) |
— |
|
(1 |
) |
|
(4 |
) |
(4 |
) |
Amortization of net actuarial loss |
45 |
|
46 |
|
|
2 |
|
1 |
|
Net periodic benefit cost |
10 |
|
20 |
|
|
6 |
|
8 |
|
Curtailment charges (credits)2
|
— |
|
— |
|
|
(42 |
) |
— |
|
Special termination benefits2
|
39 |
|
5 |
|
|
— |
|
— |
|
Total cost recognized in condensed consolidated statements of income |
$ |
49 |
|
$ |
25 |
|
|
$ |
(36 |
) |
$ |
8 |
|
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 |
|
Other Benefits |
|
Six Months Ended |
|
June 30,
2017 |
|
July 1,
2016 |
|
|
June 30,
2017 |
|
July 1,
2016 |
|
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 |
|
|
4 |
|
3 |
|
Net periodic benefit cost |
21 |
|
41 |
|
|
13 |
|
15 |
|
Curtailment charges (credits)2
|
— |
|
— |
|
|
(42 |
) |
— |
|
Special termination benefits2
|
57 |
|
13 |
|
|
— |
|
— |
|
Total cost recognized in condensed consolidated statements of income |
$ |
78 |
|
$ |
54 |
|
|
$ |
(29 |
) |
$ |
15 |
|
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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