PENSIONS AND OTHER BENEFIT PLANS

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 and fiscal six months of 2018 and 2017 include the following components:



	Fiscal Second Quarters Ended									Fiscal Six Months Ended
	Retirement Plans					Other Benefit Plans				Retirement Plans				Other Benefit Plans
(Dollars in Millions)	July 1, 2018			July 2, 2017		July 1, 2018		July 2, 2017		July 1, 2018		July 2, 2017		July 1, 2018		July 2, 2017
Service cost	$	309		255		68		62		618		506		135		123
Interest cost	249			231		38		40		501		461		75		79
Expected return on plan assets	(554		)	(509	)	(2	)	(1	)	(1,114	)	(1,014	)	(4	)	(3	)
Amortization of prior service cost/(credit)	—			1		(8	)	(8	)	1		1		(16	)	(15	)
Recognized actuarial losses	213			150		31		35		428		302		61		69
Curtailments and settlements	—			(1	)	—		—		(2	)	(1	)	—		—
Net periodic benefit cost	$	217		127		127		128		432		255		251		253

As per the adoption of ASU 2017-07, the service cost component of net periodic benefit cost was presented in the same line items on the Consolidated Statement of Earnings where other employee compensation costs are reported. All other components of net periodic benefit cost are presented as part of Other (income) expense, net on the Consolidated Statement of Earnings.

Company Contributions

For the fiscal six months ended July 1, 2018, the Company contributed $36 million and $19 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.