Retirement Plans

6 Months Ended

Jul. 02, 2016

Note 3. Retirement Plans

We provide defined benefit pension plans and other postretirement benefits to eligible employees. The components of net periodic benefit cost (credit) for these plans are as follows:

	Three Months Ended				Six Months Ended
(In millions)	July 2, 2016		July 4, 2015		July 2, 2016		July 4, 2015
Pension Benefits
Service cost	$	25	$	29	$	49	$	59
Interest cost	85		82		170		163
Expected return on plan assets	(122)		(121)		(245)		(242)
Amortization of net actuarial loss	26		39		52		78
Amortization of prior service cost	3		4		7		8
Curtailment and other charges	—		6		—		6

Net periodic benefit cost	$	17	$	39	$	33	$	72

Postretirement Benefits Other Than Pensions

Service cost	$	—	$	1	$	1	$	2
Interest cost	4		4		8		8
Amortization of prior service credit	(5)		(6)		(11)		(12)

Net periodic benefit credit	$	(1)	$	(1)	$	(2)	$	(2)

In April 2015, our Bell segment announced cost reduction actions that resulted in a headcount reduction of approximately 12% of the Bell workforce. We determined that a curtailment had occurred in Bell’s pension plan as a result of this reduction, which triggered a remeasurement of the projected benefit obligation. We remeasured Bell’s pension plan incorporating a 50 basis-point increase in the discount rate to 4.75%, while other assumptions remained consistent with year-end. The remeasurement reduced our unrealized losses by approximately $98 million which was recorded in other comprehensive income in the second quarter of 2015.