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 2017 and 2016 include the following components:



	Fiscal Second Quarters Ended
	Retirement Plans					Other Benefit Plans
(Dollars in Millions)	July 2, 2017			July 3, 2016		July 2, 2017		July 3, 2016
Service cost	$	255		226		62		55
Interest cost	231			233		40		39
Expected return on plan assets	(509		)	(493	)	(1	)	(1	)
Amortization of prior service cost/(credit)	1			(1	)	(8	)	(8	)
Recognized actuarial losses	150			124		35		34
Curtailments and settlements	(1		)	4		—		—
Net periodic benefit cost	$	127		93		128		119

Net periodic benefit cost for the Company’s defined benefit retirement plans and other benefit plans for the fiscal six months of 2017 and 2016 include the following components:



	Fiscal Six Months Ended
	Retirement Plans					Other Benefit Plans
(Dollars in Millions)	July 2, 2017			July 3, 2016		July 2, 2017		July 3, 2016
Service cost	$	506		452		123		110
Interest cost	461			466		79		79
Expected return on plan assets	(1,014		)	(985	)	(3	)	(3	)
Amortization of prior service cost/(credit)	1			—		(15	)	(16	)
Recognized actuarial losses	302			248		69		68
Curtailments and settlements	(1		)	5		—		—
Net periodic benefit cost	$	255		186		253		238

Company Contributions

For the fiscal six months ended July 2, 2017, the Company contributed $34 million and $20 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.