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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September 29,
2017 |
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September 30,
2016 |
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September 29,
2017 |
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September 30,
2016 |
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Service cost |
$ |
49 |
|
$ |
59 |
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|
$ |
4 |
|
$ |
6 |
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Interest cost |
76 |
|
79 |
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|
7 |
|
8 |
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Expected return on plan assets1
|
(163 |
) |
(161 |
) |
|
(3 |
) |
(3 |
) |
Amortization of prior service cost (credit) |
— |
|
— |
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|
(4 |
) |
(5 |
) |
Amortization of net actuarial loss |
44 |
|
46 |
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|
2 |
|
2 |
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Net periodic benefit cost |
6 |
|
23 |
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|
6 |
|
8 |
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Curtailment charges (credits)2
|
2 |
|
— |
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|
— |
|
— |
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Settlement charges (credits)2
|
150 |
|
— |
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|
— |
|
— |
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Special termination benefits2
|
15 |
|
4 |
|
|
— |
|
— |
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Other |
— |
|
— |
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|
— |
|
31 |
|
Total cost recognized in condensed consolidated statements of income |
$ |
173 |
|
$ |
27 |
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|
$ |
6 |
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$ |
39 |
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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 charges (credits), settlement charges (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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Nine Months Ended |
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September 29,
2017 |
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September 30,
2016 |
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|
September 29,
2017 |
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September 30,
2016 |
|
Service cost |
$ |
149 |
|
$ |
178 |
|
|
$ |
13 |
|
$ |
17 |
|
Interest cost |
232 |
|
239 |
|
|
22 |
|
23 |
|
Expected return on plan assets1
|
(487 |
) |
(490 |
) |
|
(9 |
) |
(9 |
) |
Amortization of prior service cost (credit) |
— |
|
(1 |
) |
|
(13 |
) |
(14 |
) |
Amortization of net actuarial loss |
133 |
|
138 |
|
|
6 |
|
5 |
|
Net periodic benefit cost |
27 |
|
64 |
|
|
19 |
|
22 |
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Curtailment charges (credits)2
|
2 |
|
— |
|
|
(42 |
) |
— |
|
Settlement charges (credits)2
|
150 |
|
— |
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|
— |
|
— |
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Special termination benefits2
|
72 |
|
17 |
|
|
— |
|
— |
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Other |
— |
|
— |
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|
— |
|
31 |
|
Total cost recognized in condensed consolidated statements of income |
$ |
251 |
|
$ |
81 |
|
|
$ |
(23 |
) |
$ |
53 |
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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 charges (credits), settlement charges (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 nine months ended September 29, 2017, the Company contributed $88 million to our pension plans, and we anticipate making additional contributions of approximately $85 million during the remainder of 2017. The Company contributed $519 million to our pension plans during the nine months ended September 30, 2016.
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