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 29,
2018 |
|
June 30,
2017 |
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|
June 29,
2018 |
|
June 30,
2017 |
|
Service cost |
$ |
31 |
|
$ |
50 |
|
|
$ |
2 |
|
$ |
4 |
|
Interest cost |
73 |
|
78 |
|
|
6 |
|
7 |
|
Expected return on plan assets1
|
(162 |
) |
(163 |
) |
|
(4 |
) |
(3 |
) |
Amortization of prior service cost (credit) |
2 |
|
— |
|
|
(3 |
) |
(4 |
) |
Amortization of net actuarial loss |
29 |
|
45 |
|
|
1 |
|
2 |
|
Net periodic benefit cost (income) |
(27 |
) |
10 |
|
|
2 |
|
6 |
|
Curtailment credits2
|
— |
|
— |
|
|
— |
|
(42 |
) |
Settlement charges2
|
86 |
|
— |
|
|
— |
|
— |
|
Special termination benefits2
|
— |
|
39 |
|
|
— |
|
— |
|
|
Total cost (income) recognized in condensed consolidated
statements of income
|
$ |
59 |
|
$ |
49 |
|
|
$ |
2 |
|
$ |
(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 |
|
Other Benefits |
|
Six Months Ended |
|
June 29,
2018 |
|
June 30,
2017 |
|
|
June 29,
2018 |
|
June 30,
2017 |
|
Service cost |
$ |
63 |
|
$ |
100 |
|
|
$ |
5 |
|
$ |
9 |
|
Interest cost |
146 |
|
156 |
|
|
12 |
|
15 |
|
Expected return on plan assets1
|
(330 |
) |
(324 |
) |
|
(7 |
) |
(6 |
) |
Amortization of prior service cost (credit) |
4 |
|
— |
|
|
(7 |
) |
(9 |
) |
Amortization of net actuarial loss |
63 |
|
89 |
|
|
2 |
|
4 |
|
Net periodic benefit cost (income) |
(54 |
) |
21 |
|
|
5 |
|
13 |
|
Curtailment credits2
|
— |
|
— |
|
|
— |
|
(42 |
) |
Settlement charges2
|
86 |
|
— |
|
|
— |
|
— |
|
Special termination benefits2
|
— |
|
57 |
|
|
— |
|
— |
|
|
Total cost (income) recognized in condensed consolidated
statements of income
|
$ |
32 |
|
$ |
78 |
|
|
$ |
5 |
|
$ |
(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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