Pensions and Other Benefit Plans

6 Months Ended

Jun. 30, 2019

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 the first fiscal six months of 2019 and 2018 include the following components:



	Fiscal Second Quarter Ended									Fiscal Six Months Ended
	Retirement Plans					Other Benefit Plans				Retirement Plans				Other Benefit Plans
(Dollars in Millions)	June 30, 2019			July 1, 2018		June 30, 2019		July 1, 2018		June 30, 2019		July 1, 2018		June 30, 2019		July 1, 2018
Service cost	$	277		309		69		68		553		618		137		135
Interest cost	274			249		46		38		549		501		92		75
Expected return on plan assets	(581		)	(554	)	(1	)	(2	)	(1,164	)	(1,114	)	(3	)	(4	)
Amortization of prior service cost/(credit)	1			—		(8	)	(8	)	2		1		(16	)	(16	)
Recognized actuarial losses	146			213		33		31		290		428		65		61
Curtailments and settlements	8			—		—		—		7		(2	)	—		—
Net periodic benefit cost	$	125		217		139		127		237		432		275		251

The service cost component of net periodic benefit cost is 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 June 30, 2019, the Company contributed $42 million and $87 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.