NOTE 3. PENSION AND OTHER POSTRETIREMENT BENEFITS
We sponsor funded and unfunded domestic and foreign defined benefit pension and other postretirement 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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July 3,
2016 |
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June 28,
2015 |
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July 3,
2016 |
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June 28,
2015 |
Defined benefit pension plans |
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Voluntary contribution |
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$ |
37 |
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$ |
36 |
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$ |
85 |
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$ |
72 |
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Mandatory contribution |
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6 |
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|
6 |
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|
18 |
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|
82 |
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Defined benefit pension contributions |
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$ |
43 |
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$ |
42 |
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$ |
103 |
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$ |
154 |
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Other postretirement plans |
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$ |
15 |
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$ |
12 |
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$ |
28 |
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$ |
25 |
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Defined contribution pension plans |
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$ |
14 |
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$ |
17 |
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$ |
35 |
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$ |
42 |
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We anticipate making additional defined benefit pension contributions during the remainder of 2016 of $43 million. The estimated $146 million of pension contributions for the full year include voluntary contributions of approximately $102 million. 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 2016 net periodic pension cost to approximate $42 million.
The components of net periodic pension and other postretirement benefit costs under our plans were as follows:
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Pension |
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U.S. Plans |
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U.K. Plans |
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Other Postretirement Benefits |
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|
Three months ended |
In millions |
|
July 3,
2016 |
|
June 28,
2015 |
|
July 3,
2016 |
|
June 28,
2015 |
|
July 3,
2016 |
|
June 28,
2015 |
Service cost |
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$ |
23 |
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$ |
20 |
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$ |
6 |
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$ |
6 |
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$ |
— |
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$ |
— |
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Interest cost |
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28 |
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|
26 |
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|
13 |
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|
14 |
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4 |
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|
4 |
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Expected return on plan assets |
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(51 |
) |
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(48 |
) |
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(19 |
) |
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(22 |
) |
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— |
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— |
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Recognized net actuarial loss |
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7 |
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12 |
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4 |
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8 |
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2 |
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|
1 |
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Net periodic benefit cost |
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$ |
7 |
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$ |
10 |
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$ |
4 |
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$ |
6 |
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$ |
6 |
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$ |
5 |
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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 |
|
July 3,
2016 |
|
June 28,
2015 |
|
July 3,
2016 |
|
June 28,
2015 |
|
July 3,
2016 |
|
June 28,
2015 |
Service cost |
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$ |
46 |
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|
$ |
40 |
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|
$ |
11 |
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$ |
13 |
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|
$ |
— |
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|
$ |
— |
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Interest cost |
|
56 |
|
|
51 |
|
|
26 |
|
|
28 |
|
|
8 |
|
|
8 |
|
Expected return on plan assets |
|
(102 |
) |
|
(95 |
) |
|
(38 |
) |
|
(45 |
) |
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— |
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— |
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Recognized net actuarial loss |
|
14 |
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|
23 |
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|
8 |
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|
17 |
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|
3 |
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|
2 |
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Net periodic benefit cost |
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$ |
14 |
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$ |
19 |
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$ |
7 |
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$ |
13 |
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$ |
11 |
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$ |
10 |
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