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NOTE 4. PENSIONS AND OTHER POSTRETIREMENT BENEFITS
We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement benefit plans. Contributions to these plans were as follows:
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Three months ended |
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Six months ended |
In millions |
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June 30,
2019 |
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July 1,
2018 |
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June 30,
2019 |
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July 1,
2018 |
Defined benefit pension plans |
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Voluntary contribution |
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$ |
36 |
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$ |
4 |
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$ |
62 |
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$ |
7 |
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Mandatory contribution |
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8 |
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|
5 |
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|
15 |
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|
11 |
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Defined benefit pension contributions |
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$ |
44 |
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$ |
9 |
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$ |
77 |
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$ |
18 |
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Other postretirement benefit plans |
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Benefit payments (rebates), net |
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$ |
1 |
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$ |
(2 |
) |
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$ |
15 |
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$ |
5 |
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Defined contribution pension plans |
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$ |
18 |
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$ |
21 |
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$ |
57 |
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$ |
61 |
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During the remainder of 2019, we anticipate making additional defined benefit pension contributions of $46 million for our United States (U.S.) and United Kingdom (U.K.) pension plans. Approximately $91 million of the estimated $123 million of pension contributions for the full year are voluntary. These contributions may be made from trusts or company funds either to increase pension assets or to make direct benefit payments to plan participants. We expect our 2019 net periodic pension cost to approximate $64 million.
The components of net periodic pension and other postretirement benefit costs under our plans were as follows:
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Pension |
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U.S. Plans |
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U.K. Plans |
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Other Postretirement Benefits |
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|
Three months ended |
In millions |
|
June 30,
2019 |
|
July 1,
2018 |
|
June 30,
2019 |
|
July 1,
2018 |
|
June 30,
2019 |
|
July 1,
2018 |
Service cost |
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$ |
29 |
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|
$ |
30 |
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$ |
6 |
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$ |
7 |
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$ |
— |
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|
$ |
— |
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Interest cost |
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27 |
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|
24 |
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|
11 |
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|
10 |
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|
3 |
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|
3 |
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Expected return on plan assets |
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(48 |
) |
|
(49 |
) |
|
(18 |
) |
|
(18 |
) |
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— |
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— |
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Amortization of prior service cost |
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1 |
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— |
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1 |
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— |
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— |
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— |
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Recognized net actuarial loss |
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4 |
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|
9 |
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3 |
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|
8 |
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— |
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— |
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Net periodic benefit cost |
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$ |
13 |
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$ |
14 |
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$ |
3 |
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$ |
7 |
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$ |
3 |
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$ |
3 |
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Pension |
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U.S. Plans |
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U.K. Plans |
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Other Postretirement Benefits |
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|
Six months ended |
In millions |
|
June 30,
2019 |
|
July 1,
2018 |
|
June 30,
2019 |
|
July 1,
2018 |
|
June 30,
2019 |
|
July 1,
2018 |
Service cost |
|
$ |
58 |
|
|
$ |
60 |
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|
$ |
13 |
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|
$ |
15 |
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|
$ |
— |
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|
$ |
— |
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Interest cost |
|
54 |
|
|
49 |
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|
22 |
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|
21 |
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|
5 |
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|
5 |
|
Expected return on plan assets |
|
(95 |
) |
|
(98 |
) |
|
(36 |
) |
|
(36 |
) |
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— |
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|
— |
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Amortization of prior service cost |
|
1 |
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— |
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|
1 |
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— |
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— |
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— |
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Recognized net actuarial loss |
|
8 |
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|
17 |
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|
6 |
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|
15 |
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— |
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— |
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Net periodic benefit cost |
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$ |
26 |
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$ |
28 |
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$ |
6 |
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$ |
15 |
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$ |
5 |
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$ |
5 |
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