Note 4. Retirement Plans

In the first quarter of 2018, we adopted ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This standard requires companies to present only the service cost component of net periodic benefit cost in operating income in the same line as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost must be presented separately from service cost and excluded from operating income. In addition, only the service cost component is eligible for capitalization into inventory. The change in the amount capitalized into inventory was applied prospectively. The reclassification of the other components of net periodic benefit cost (credit) to a separate line was applied retrospectively using a practical expedient that permits the usage of amounts previously disclosed in the pension and other postretirement benefit plan note for prior periods. As a result, we reclassified $(7) million and $(21) million of other components of net periodic benefit cost (credit) for the third quarter and first nine months of 2017, respectively, from Cost of sales to a separate line item in the Consolidated Statements of Operations.

We provide defined benefit pension plans and other postretirement benefits to eligible employees. The components of net periodic benefit cost for these plans are as follows:

	Three Months Ended				Nine Months Ended
(In millions)		September 29, 2018		September 30, 2017		September 29, 2018		September 30, 2017

Pension Benefits

Service cost	$	26	$	25	$	79	$	75
Interest cost		77		81		230		242
Expected return on plan assets		(138)		(127)		(415)		(380)
Amortization of net actuarial loss		38		34		115		102
Amortization of prior service cost		4		4		11		12

Net periodic benefit cost	$	7	$	17	$	20	$	51

Postretirement Benefits Other Than Pensions

Service cost	$	1	$	1	$	2	$	2
Interest cost		2		3		7		9
Amortization of prior service credit		(2)		(2)		(5)		(6)

Net periodic benefit cost	$	1	$	2	$	4	$	5