Pensions and Other Benefit Plans

9 Months Ended

Sep. 27, 2020

Retirement Benefits [Abstract]

Pensions and Other Benefit Plans

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 third quarters and fiscal nine months of 2020 and 2019 include the following components:

	Fiscal Third Quarter Ended					Fiscal Nine Months Ended
	Retirement Plans			Other Benefit Plans		Retirement Plans		Other Benefit Plans
(Dollars in Millions)	September 27, 2020		September 29, 2019	September 27, 2020	September 29, 2019	September 27, 2020	September 29, 2019	September 27, 2020	September 29, 2019
Service cost	$	330	275	72	68	979	828	216	205
Interest cost	238		273	33	46	715	822	99	138
Expected return on plan assets	(617)		(578)	(2)	(2)	(1,839)	(1,742)	(5)	(5)
Amortization of prior service cost/(credit)	—		1	(7)	(7)	1	3	(23)	(23)
Recognized actuarial losses	224		145	36	32	669	435	107	97
Curtailments and settlements	—		(4)	—	—	19	3	—	—
Net periodic benefit cost	$	175	112	132	137	544	349	394	412

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 nine months ended September 27, 2020, the Company contributed $364 million and $27 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.