Pensions and Other Benefit Plans

6 Months Ended

Jun. 28, 2020

PENSIONS AND OTHER BENEFIT PLANS

Components of Net Periodic Benefit Cost

Net periodic benefit costs for the Company’s defined benefit retirement plans and other benefit plans for the fiscal second quarters and fiscal six months of 2020 and 2019 include the following components:



	Retirement Plans				Other Benefit Plans			Retirement Plans		Other Benefit Plans
(Dollars in Millions)	June 28, 2020		June 30, 2019	June 28, 2020	June 30, 2019	June 28, 2020	June 30, 2019	June 28, 2020	June 30, 2019
Service cost	$	323	277	72	69	649	553	144	137
Interest cost	237		274	33	46	477	549	66	92
Expected return on plan assets	(608)		(581)	(1)	(1)	(1,222)	(1,164)	(3)	(3)
Amortization of prior service cost/(credit)	1		1	(8)	(8)	1	2	(16)	(16)

Recognized actuarial losses	222		146	35	33	445	290	71	65
Curtailments and settlements	—		8	—	—	19	7	—	—
Net periodic benefit cost	$	175	125	131	139	369	237	262	275

The service cost component of net periodic benefit cost is presented in the same line items on the Consolidated Statement of Earnings where other employee compensation costs are reported. All other components of net periodic benefit cost are presented as part of Other (income) expense, net on the Consolidated Statement of Earnings.

Company Contributions

For the fiscal six months ended June 28, 2020, the Company contributed $144 million and $18 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.