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POSTRETIREMENT BENEFIT PLANS
9 Months Ended
Sep. 27, 2015
POSTRETIREMENT BENEFIT PLANS

NOTE 6 – POSTRETIREMENT BENEFIT PLANS

Our pretax net periodic benefit cost related to our qualified defined benefit pension plans and retiree medical and life insurance plans consisted of the following (in millions):

 

     Quarters Ended      Nine Months Ended  
     

 September 27,

2015

    

September 28,

2014

    

September 27,

2015

    

September 28, 

2014

 

Qualified defined benefit pension plans

           

Service cost

   $        217                $        208               $        652               $        694           

Interest cost

     448                  468                 1,343                 1,444           

Expected return on plan assets

     (683)                 (687)                (2,050)                (2,006)          

Recognized net actuarial losses

     399                  365                 1,199                 807           

Amortization of prior service credits

     (97)                 (96)                (292)                (54)          

Total net periodic benefit cost

   $ 284                $ 258               $ 852               $ 885           
                                     

Retiree medical and life insurance plans

           

Service cost

   $ 6                $ 5               $ 16               $ 16           

Interest cost

     28                  31                 83                 92           

Expected return on plan assets

     (37)                 (36)                (111)                (109)          

Recognized net actuarial losses

     10                  5                 32                 17           

Amortization of prior service costs

     1                  1                 3                 3           

Total net periodic benefit cost

   $ 8                $ 6               $ 23               $ 19           

 

The recognized net actuarial losses and the amortization of net prior service (credits) costs in the table above, as well as similar amounts related to our other postretirement benefit plans ($16 million and $44 million for the quarter and nine months ended September 27, 2015 and $13 million and $32 million for the quarter and nine months ended September 28, 2014), reflect amounts that were reclassified from accumulated other comprehensive loss and recorded as a component of net periodic benefit cost for the periods presented. These costs totaled $212 million (net of $117 million of tax expense) and $637 million (net of $349 million of tax expense) for the quarter and nine months ended September 27, 2015 and $186 million (net of $102 million of tax expense) and $520 million (net of $285 million of tax expense) for the quarter and nine months ended September 28, 2014, which were recorded on our Statements of Comprehensive Income as an increase to other comprehensive income.

The funding of our qualified defined benefit pension plans is determined in accordance with the Employee Retirement Income Security Act of 1974 (ERISA), as amended by the Pension Protection Act of 2006 (PPA), and in a manner consistent with CAS and Internal Revenue Code rules. There were no contributions to our qualified defined benefit pension plans during the quarter and nine months ended September 27, 2015, compared to $485 million and $1.0 billion during the quarter and nine months ended September 28, 2014. We do not plan to make contributions to our qualified defined benefit pension plans in 2015.