XML 32 R19.htm IDEA: XBRL DOCUMENT v3.7.0.1
Benefit Plans
6 Months Ended
Jul. 02, 2017
Retirement Benefits [Abstract]  
Benefit Plans
Benefit Plans
Our employees ceased to participate in the Pfizer, Inc. U.S. qualified defined benefit plans and the U.S. retiree medical plan effective December 31, 2012, and liabilities associated with our employees under these plans were retained by Pfizer. Pfizer is continuing to credit certain employees' service with Zoetis generally through December 31, 2017 (or termination of employment from Zoetis, if earlier) for certain early retirement benefits with respect to Pfizer's U.S. defined benefit pension and retiree medical plans. Pension and postretirement benefit expense associated with the extended service for certain employees in the U.S. plans totaled approximately $1 million for each of the three month periods ended July 2, 2017, and July 3, 2016, and $3 million for each of the six month periods ended July 2, 2017, and July 3, 2016.
The following table provides the net periodic benefit cost associated with our international defined benefit pension plans:
 
 
Three Months Ended
 
Six Months Ended
 
 
July 2,

 
July 3,

 
July 2,

 
July 3,

(MILLIONS OF DOLLARS)
 
2017

 
2016

 
2017

 
2016

Service cost
 
$
1

 
$
2

 
$
3

 
$
4

Interest cost
 

 
1

 
1

 
2

Expected return on plan assets
 

 

 
(1
)
 
(1
)
Amortization of net actuarial loss
 
1

 

 
1

 

Curtailment and settlement (gain)/loss
 

 
(1
)
 
1

 
(1
)
Net periodic benefit cost
 
$
2

 
$
2

 
$
5

 
$
4

Total company contributions to the international pension plans were $1 million and $4 million for the three and six months ended July 2, 2017, respectively, and $3 million and $6 million for the three and six months ended July 3, 2016, respectively. We expect to contribute a total of approximately $7 million to these plans in 2017.