Pension and Other Benefit Programs

6 Months Ended

Mar. 30, 2019

The components of net periodic benefit cost are as follows:



	Pension Plans												Postretirement Medical Plans
	Quarter Ended						Six Months Ended						Quarter Ended						Six Months Ended
	Mar. 30, 2019			Mar. 31, 2018			Mar. 30, 2019			Mar. 31, 2018			Mar. 30, 2019			Mar. 31, 2018			Mar. 30, 2019			Mar. 31, 2018
Service costs	$	83		$	87		$	166		$	175		$	2		$	2		$	4		$	5
Other costs (benefits):
Interest costs	144			122			289			245			17			15			33			30
Expected return on plan assets	(240		)	(227		)	(479		)	(452		)	(14		)	(13		)	(28		)	(26		)
Amortization of prior-year service costs	4			5			7			8			—			—			—			—
Recognized net actuarial loss	67			88			131			175			—			4			—			7
Total other costs (benefits)	(25		)	(12		)	(52		)	(24		)	3			6			5			11
Net periodic benefit cost	$	58		$	75		$	114		$	151		$	5		$	8		$	9		$	16

At the beginning of fiscal 2019, the Company adopted new FASB accounting guidance on the presentation of the components of net periodic pension and postretirement benefit cost (“net periodic benefit cost”). This guidance requires the Company to present the service cost component of net periodic benefit cost in the same line items on the statement of operations as other compensation costs of the related employees (i.e. “Costs and expenses” in the Condensed Consolidated Statement of Income). All of the other components of net periodic benefit cost (“other costs / benefits”) are presented as a component of “Interest expense, net” in the Condensed Consolidated Statement of Income (see Note 6). The other costs / benefits in fiscal 2018 were not material and are reported in Costs and expenses.

During the six months ended March 30, 2019, the Company did not make material contributions to its pension and postretirement medical plans. The Company expects total pension and postretirement medical plan contributions in fiscal 2019 of approximately $750 million. However, final funding amounts for fiscal 2019 will be assessed based on our January 1, 2019 funding actuarial valuation, which will be available in the fourth quarter of fiscal 2019.

In connection with our acquisition of 21CF, we assumed net pension obligations of $237 million ($824 million in obligations and $587 million in plan assets), which is anticipated to have an immaterial impact on our fiscal 2019 Condensed Consolidated Statement of Income. The Company expects to contribute approximately $50 million to the 21CF plans in fiscal 2019.