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Employee Benefits
 9 Months Ended
Sep. 28, 2019
Retirement Benefits [Abstract]  
Employee Benefits 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 2018 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 28, 2019
September 29, 2018
 
September 28, 2019
September 29, 2018
Service cost
$
9

$
22

 
$
27

$
66

Interest cost
42

41

 
131

124

Expected return on plan assets
(86
)
(91
)
 
(254
)
(273
)
Amortization of unrecognized prior service cost
1

2

 
5

6

Recognized net (gain) loss
23

(36
)
 
34

(47
)
Net periodic benefit cost
$
(11
)
$
(62
)
 
$
(57
)
$
(124
)
Curtailment (gain) loss
(11
)
(30
)
 
(11
)
(30
)
Total pension (income) expense
$
(22
)
$
(92
)
 
$
(68
)
$
(154
)

Other nonpension postretirement
 
Quarter ended
 
Year-to-date period ended
(millions)
September 28, 2019
September 29, 2018
 
September 28, 2019
September 29, 2018
Service cost
$
5

$
5

 
$
12

$
14

Interest cost
10

10

 
30

28

Expected return on plan assets
(23
)
(22
)
 
(65
)
(69
)
Amortization of unrecognized prior service (gain)
(2
)
(3
)
 
(6
)
(7
)
Recognized net (gain) loss
(55
)
—

 
(55
)
—

Net periodic benefit cost
(65
)
(10
)
 
(84
)
(34
)
Curtailment (gain) loss
(6
)
—

 
(6
)
—

Total postretirement benefit (income) expense
$
(71
)
$
(10
)
 
$
(90
)
$
(34
)

Postemployment
 
Quarter ended
 
Year-to-date period ended
(millions)
September 28, 2019
September 29, 2018
 
September 28, 2019
September 29, 2018
Service cost
$
1

$
1

 
$
3

$
3

Interest cost
—

—

 
1

—

Recognized net (gain) loss
(1
)
(1
)
 
(3
)
(3
)
Total postemployment benefit expense
$
—

$
—

 
$
1

$
—



In conjunction with the completion of the sale of selected cookies, fruit and fruit-flavored snacks, pie crusts, and ice cream cones businesses on July 28, 2019, the Company recognized curtailment gains in its U.S. pension and nonpension postretirement plans of $11 million and $6 million, respectively. Additionally, the Company was required
to remeasure those plans. The Company recorded a mark-to-market loss of $8 million in our U.S. pension plan due to a lower discount rate and a reduction of the expected return on assets from 7.5% to 7.0% based on an updated target portfolio mix. These decreases were partially offset by better than expected asset returns. We recorded a mark-to-market gain of $55 million related to the remeasurement of a U.S. nonpension postretirement plan as a result of better than expected asset returns, partially offset by a lower discount rate and a reduction of the expected return on assets from 7.5% to 7.0% based on an updated target portfolio mix.

For the quarter and year-to-date periods ended September 28, 2019, the Company recognized a loss of $15 million and $26 million, respectively, 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 loss recognized was due primarily to a lower discount rate relative to the previous measurement.

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 quarter and year-to-date periods ended September 29, 2018, the Company recognized mark-to-market gains of $3 million and $14 million, respectively, 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 relative to the previous measurement.

Company contributions to employee benefit plans are summarized as follows:
(millions)
Pension
Nonpension postretirement
Total
Quarter ended:
 
 
 
September 28, 2019
$
2

$
5

$
7

September 29, 2018
$
—

$
5

$
5

Year-to-date period ended:
 
 
 
September 28, 2019
$
6

$
13

$
19

September 29, 2018
$
266

$
13

$
279

Full year:
 
 
 
Fiscal year 2019 (projected)
$
7

$
18

$
25

Fiscal year 2018 (actual)
$
270

$
17

$
287



Prior year contributions included $250 million of pre-tax discretionary contributions to U.S. plans in the second quarter of 2018 designated for the 2017 tax year. Plan funding strategies may be modified in response to management's evaluation of tax deductibility, market conditions, and competing investment alternatives.

Multi-employer pension plan exit liability
During the third quarter of 2019, the Company incurred a pre-tax charge of $132 million due to withdrawing from two multi-employer pension plans. While this is our best estimate of the ultimate cost of withdrawing from the plans at this time, the actual cost could differ based on final funding assessments. Any changes to the estimate will be recorded in the period identified. The cash obligation is approximately $8 million annually for 20 years. The net present value of the liability was determined using a risk free interest rate.  The charge was recorded within Cost of goods sold on the Consolidated Statement of Income and Other current liabilities and Other liabilities on the Consolidated Balance Sheet.