EMPLOYEE BENEFIT PLANS

3 Months Ended

Apr. 01, 2017

NOTE 8. EMPLOYEE BENEFIT PLANS

Pension and Other Postretirement Benefit Plans – North America

The components of net periodic pension benefit for the Company’s North American pension plans are as follows:


	First Quarter
(In millions)	2017			2016
Service cost	$	2		$	2
Interest cost		10			11
Expected return on plan assets		(12	)		(14	)

Net periodic pension benefit	$	—		$	(1	)

In the first quarter of 2017, cash contributions to the North American pension plans were not significant. The Company expects to make additional cash contributions of $2 million to the North American pension plans the remainder of 2017.

Pension Plan – UK

The components of net periodic pension benefit for the Company’s UK pension plan are as follows:


	First Quarter
(In millions)	2017			2016
Service cost	$	—		$	—
Interest cost		2			2
Expected return on plan assets		(3	)		(3	)

Net periodic pension benefit	$	(1	)	$	(1	)

As part of the OD European Business sale, the Company retained the United Kingdom defined benefit pension plan. The United Kingdom pension plan is in a net asset position. In the first quarter of 2017, cash contributions of $1 million were made to the UK pension plan. The Company expects to make additional cash contributions of $1 million to the UK pension plan the remainder of 2017.

Net periodic pension benefits for the North American and UK pension and other postretirement benefit plans are recorded in Selling, general and administrative expenses at the Corporate level in the Condensed Consolidated Statements of Operations.