Pensions and Other Postretirement Benefits

6 Months Ended

Jul. 03, 2016

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits

PENSIONS AND OTHER POSTRETIREMENT BENEFITS

Components of Net Periodic Benefit Cost

Net periodic benefit cost for the Company’s defined benefit retirement plans and other benefit plans for the fiscal second quarters of 2016 and 2015 include the following components:

	Fiscal Second Quarters Ended
	Retirement Plans					Other Benefit Plans
(Dollars in Millions)	July 3, 2016			June 28, 2015		July 3, 2016		June 28, 2015
Service cost	$	226		249		55		65
Interest cost	233			248		39		46
Expected return on plan assets	(493		)	(455	)	(1	)	(1	)
Amortization of prior service cost/(credit)	(1		)	1		(8	)	(9	)
Recognized actuarial losses	124			187		34		50
Curtailments and settlements	4			—		—		—
Net periodic benefit cost	$	93		230		119		151

Net periodic benefit cost for the Company’s defined benefit retirement plans and other benefit plans for the first fiscal six months of 2016 and 2015 include the following components:

	Fiscal Six Months Ended
	Retirement Plans					Other Benefit Plans
(Dollars in Millions)	July 3, 2016			June 28, 2015		July 3, 2016		June 28, 2015
Service cost	$	452		497		110		129
Interest cost	466			497		79		93
Expected return on plan assets	(985		)	(910	)	(3	)	(3	)
Amortization of prior service cost/(credit)	—			1		(16	)	(17	)
Recognized actuarial losses	248			374		68		100
Curtailments and settlements	5			4		—		—
Net periodic benefit cost	$	186		463		238		302

Company Contributions

For the fiscal six months ended July 3, 2016, the Company contributed $283 million and $14 million to its U.S. and international retirement plans, respectively. The Company plans to continue to fund its U.S. defined benefit plans to comply with the Pension Protection Act of 2006. International plans are funded in accordance with local regulations.