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Pensions and Other Postretirement Benefits
 6 Months Ended
Jul. 01, 2012
Compensation and Retirement Disclosure [Abstract]  
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
PENSIONS AND OTHER POSTRETIREMENT BENEFITS

Components of Net Periodic Benefit Cost

Net periodic benefit cost for the Company’s defined benefit retirement plans and other benefit plans for the fiscal second quarters of 2012 and 2011 include the following components:

 
 
Retirement Plans
 
Other Benefit Plans
 
 
Fiscal Second Quarters Ended
(Dollars in Millions)
 
July 1, 2012
 
July 3, 2011
 
July 1, 2012
 
July 3, 2011
Service cost
 
$
168

 
144

 
45

 
37

Interest cost
 
219

 
214

 
41

 
46

Expected return on plan assets
 
(308
)
 
(277
)
 
(1
)
 
(1
)
Amortization of prior service cost/(credit)
 
—

 
1

 
(1
)
 
—

Amortization of net transition obligation
 
—

 
1

 
—

 
—

Recognized actuarial losses
 
124

 
98

 
20

 
12

Curtailments and settlements
 
—

 
—

 
—

 
—

Net periodic benefit cost
 
$
203

 
181

 
104

 
94


Net periodic benefit cost for the Company’s defined benefit retirement plans and other benefit plans for the first fiscal six months of 2012 and 2011 include the following components:


 
 
Retirement Plans
 
Other Benefit Plans
 
 
Fiscal Six Months Ended
(Dollars in Millions)
 
July 1, 2012
 
July 3, 2011
 
July 1, 2012
 
July 3, 2011
Service cost
 
$
329

 
287

 
89

 
74

Interest cost
 
441

 
427

 
82

 
94

Expected return on plan assets
 
(620
)
 
(555
)
 
(2
)
 
(1
)
Amortization of prior service cost/(credit)
 
2

 
4

 
(2
)
 
(1
)
Amortization of net transition obligation
 
—

 
1

 
—

 
—

Recognized actuarial losses
 
248

 
194

 
38

 
23

Curtailments and settlements
 
(1
)
 
—

 
—

 
—

Net periodic benefit cost
 
$
399

 
358

 
205

 
189



Company Contributions

For the fiscal six months ended July 1, 2012, the Company contributed $142 million and $17 million to its U.S. and international retirement plans, respectively. The Company plans to continue to fund its U.S. defined benefit plans to comply with the Pension Protection Act of 2006. International plans are funded in accordance with local regulations.