Employee benefits

The Company sponsors a number of U.S. and foreign pension plans as well as other nonpension postretirement and postemployment plans to provide various benefits for its employees. These plans are described within the footnotes to the Consolidated Financial Statements included in the Company’s 2017 Annual Report on Form 10-K. Components of Company plan benefit expense for the periods presented are included in the tables below.

Pension



	Quarter ended						Year-to-date period ended
(millions)	September 29, 2018			September 30, 2017			September 29, 2018			September 30, 2017
Service cost	$	22		$	22		$	66		$	72
Interest cost	41			40			124			123
Expected return on plan assets	(91		)	(97		)	(273		)	(277		)
Amortization of unrecognized prior service cost	2			3			6			7
Recognized net (gain) loss	(36		)	83			(47		)	84
Net periodic benefit cost	(62		)	51			(124		)	9
Curtailment (gain) loss	(30		)	(134		)	(30		)	(136		)
Total pension (income) expense	$	(92	)	$	(83	)	$	(154	)	$	(127	)

Other nonpension postretirement



	Quarter ended						Year-to-date period ended
(millions)	September 29, 2018			September 30, 2017			September 29, 2018			September 30, 2017
Service cost	$	5		$	5		$	14		$	14
Interest cost	10			10			28			28
Expected return on plan assets	(22		)	(24		)	(69		)	(73		)
Amortization of unrecognized prior service (gain)	(3		)	(3		)	(7		)	(7		)
Recognized net (gain) loss	—			—			—			(29		)
Net periodic benefit cost	(10		)	(12		)	(34		)	(67		)
Curtailment loss	—			—			—			3
Total postretirement benefit (income) expense	$	(10	)	$	(12	)	$	(34	)	$	(64	)

Postemployment



	Quarter ended					Year-to-date period ended
(millions)	September 29, 2018			September 30, 2017		September 29, 2018			September 30, 2017
Service cost	$	1		$	1	$	3		$	4
Interest cost	—			—		—			2
Recognized net (gain) loss	(1		)	—		(3		)	1
Total postemployment benefit expense	$	—		$	1	$	—		$	7

During the third quarter of 2018, the Company recognized a curtailment gain of $30 million as certain European pension plans were frozen as of December 31, 2018 in conjunction with Project K restructuring activity. The Company remeasured the benefit obligation for the impacted pension plan resulting in a mark-to-market gain of $33 million. The gain was due primarily to plan asset returns in excess of the expected rate of return and a favorable change in the discount rate relative to prior year end.

For the year-to-date period ended September 29, 2018, the Company recognized a gain of $14 million related to the remeasurement of a U.S. pension plan as current year distributions are expected to exceed service and interest costs resulting in settlement accounting for that particular plan. The amount of the remeasurement gain recognized was due primarily to a favorable change in the discount rate.

During the third quarter of 2017, the Company recognized pension plan curtailment gains totaling $134 million in conjunction with Project K restructuring activity which resulted from the amendment of certain defined benefit pension plans in the U.S. and Canada and workforce reductions. The Company remeasured the benefit obligation for the impacted pension plans resulting in a mark-to-market loss of $83 million. The loss was due primarily to changes in discount rates, partially offset by plan asset returns in excess of the expected rate of return.

For the year-to-date period ended September 30, 2017, the Company recognized pension plan curtailment gains totaling $136 million and a curtailment loss of $3 million within a nonpension postretirement plan, in conjunction with Project K restructuring activity. The curtailment gains and losses resulted from the amendment of certain defined benefit pension plans in the U.S. and Canada and global workforce reductions. In addition, the Company remeasured the benefit obligation for impacted pension and nonpension postretirement plans. The remeasurement resulted in a mark-to-market loss of $84 million on pension plans due primarily to a lower discount rate and a $29 million gain on a nonpension postretirement plan primarily due to plan asset investment returns slightly offset by the impact of a lower discount rate.

Company contributions to employee benefit plans are summarized as follows:



(millions)	Pension		Nonpension postretirement		Total
Quarter ended:
September 29, 2018	$	—	$	5	$	5
September 30, 2017	$	2	$	3	$	5
Year-to-date period ended:
September 29, 2018	$	266	$	13	$	279
September 30, 2017	$	25	$	8	$	33
Full year:
Fiscal year 2018 (projected)	$	274	$	17	$	291
Fiscal year 2017 (actual)	$	31	$	13	$	44

During the second quarter of 2018, the Company made discretionary contributions to certain U.S. pension plans totaling $250 million. Plan funding strategies may be modified in response to management's evaluation of tax deductibility, market conditions, and competing investment alternatives.

Additionally, during the first quarter of 2017, the Company recognized expense totaling $26 million related to the exit of several multi-employer plans associated with Project K restructuring activity. This amount represents management's best estimate, actual results could differ. The cash obligation is payable over a maximum 20-year period; management has not determined the actual period over which the payments will be made.