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 29,
2018 |
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June 30,
2017 |
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June 29,
2018 |
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June 30,
2017 |
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Service cost |
$ |
31 |
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$ |
50 |
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$ |
2 |
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$ |
4 |
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Interest cost |
73 |
|
78 |
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|
6 |
|
7 |
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Expected return on plan assets1
|
(162 |
) |
(163 |
) |
|
(4 |
) |
(3 |
) |
Amortization of prior service cost (credit) |
2 |
|
— |
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|
(3 |
) |
(4 |
) |
Amortization of net actuarial loss |
29 |
|
45 |
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|
1 |
|
2 |
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Net periodic benefit cost (income) |
(27 |
) |
10 |
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|
2 |
|
6 |
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Curtailment credits2
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— |
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— |
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— |
|
(42 |
) |
Settlement charges2
|
86 |
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— |
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— |
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— |
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Special termination benefits2
|
— |
|
39 |
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— |
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— |
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Total cost (income) recognized in condensed consolidated
statements of income
|
$ |
59 |
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$ |
49 |
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$ |
2 |
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$ |
(36 |
) |
1 The weighted-average expected long-term rates of return on plan assets used in computing 2018 net periodic benefit cost are 8.0 percent for pension benefit plans and 4.5 percent for other benefit plans.
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2 |
The curtailment credits, settlement charges and special termination benefits were primarily related to North America refranchising and the Company's productivity and reinvestment program. Refer to Note 2 and Note 12.
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Pension Benefits |
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Other Benefits |
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Six Months Ended |
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June 29,
2018 |
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June 30,
2017 |
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|
June 29,
2018 |
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June 30,
2017 |
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Service cost |
$ |
63 |
|
$ |
100 |
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|
$ |
5 |
|
$ |
9 |
|
Interest cost |
146 |
|
156 |
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|
12 |
|
15 |
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Expected return on plan assets1
|
(330 |
) |
(324 |
) |
|
(7 |
) |
(6 |
) |
Amortization of prior service cost (credit) |
4 |
|
— |
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|
(7 |
) |
(9 |
) |
Amortization of net actuarial loss |
63 |
|
89 |
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|
2 |
|
4 |
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Net periodic benefit cost (income) |
(54 |
) |
21 |
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|
5 |
|
13 |
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Curtailment credits2
|
— |
|
— |
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|
— |
|
(42 |
) |
Settlement charges2
|
86 |
|
— |
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|
— |
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— |
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Special termination benefits2
|
— |
|
57 |
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— |
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— |
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Total cost (income) recognized in condensed consolidated
statements of income
|
$ |
32 |
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$ |
78 |
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$ |
5 |
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$ |
(29 |
) |
1 The weighted-average expected long-term rates of return on plan assets used in computing 2018 net periodic benefit cost are 8.0 percent for pension benefit plans and 4.5 percent for other benefit plans.
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2 |
The curtailment credits, settlement charges and special termination benefits were primarily related to North America refranchising and the Company's productivity and reinvestment program. Refer to Note 2 and Note 12.
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All of the amounts in the tables above, other than service cost, were recorded in the line item other income (loss) — net in our condensed consolidated statements of income. During the six months ended June 29, 2018, the Company contributed $34 million to our pension plans, and we anticipate making additional contributions of approximately $63 million during the remainder of 2018. The Company contributed $55 million to our pension plans during the six months ended June 30, 2017.
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