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 28,
2018 |
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September 29,
2017 |
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September 28,
2018 |
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September 29,
2017 |
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Service cost |
$ |
30 |
|
$ |
49 |
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$ |
3 |
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$ |
4 |
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Interest cost |
75 |
|
76 |
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|
6 |
|
7 |
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Expected return on plan assets1
|
(160 |
) |
(164 |
) |
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(3 |
) |
(3 |
) |
Amortization of prior service credit |
(1 |
) |
— |
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|
(4 |
) |
(4 |
) |
Amortization of net actuarial loss |
29 |
|
44 |
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|
1 |
|
2 |
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Net periodic benefit cost (income) |
(27 |
) |
5 |
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|
3 |
|
6 |
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Curtailment charges2
|
5 |
|
2 |
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— |
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— |
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Settlement charges2
|
35 |
|
150 |
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— |
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— |
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Special termination benefits2
|
8 |
|
15 |
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— |
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— |
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Total cost recognized in condensed consolidated
statements of income
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$ |
21 |
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$ |
172 |
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$ |
3 |
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$ |
6 |
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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 charges, 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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Nine Months Ended |
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September 28,
2018 |
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September 29,
2017 |
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September 28,
2018 |
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September 29,
2017 |
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Service cost |
$ |
93 |
|
$ |
149 |
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|
$ |
8 |
|
$ |
13 |
|
Interest cost |
221 |
|
232 |
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|
18 |
|
22 |
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Expected return on plan assets1
|
(490 |
) |
(488 |
) |
|
(10 |
) |
(9 |
) |
Amortization of prior service cost (credit) |
3 |
|
— |
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|
(11 |
) |
(13 |
) |
Amortization of net actuarial loss |
92 |
|
133 |
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|
3 |
|
6 |
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Net periodic benefit cost (income) |
(81 |
) |
26 |
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|
8 |
|
19 |
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Curtailment charges (credits)2
|
5 |
|
2 |
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|
— |
|
(42 |
) |
Settlement charges2
|
121 |
|
150 |
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— |
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— |
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Special termination benefits2
|
8 |
|
72 |
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— |
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— |
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Total cost (income) recognized in condensed consolidated
statements of income
|
$ |
53 |
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$ |
250 |
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$ |
8 |
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$ |
(23 |
) |
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 charges (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 nine months ended September 28, 2018, the Company contributed $98 million to our pension plans, and we anticipate making additional contributions of approximately $2 million during the remainder of 2018. The Company contributed $88 million to our pension plans during the nine months ended September 29, 2017.
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