Pension And Other Postretirement Benefit Plans

3 Months Ended

Oct. 01, 2011

Pension And Other Postretirement Benefit Plans [Abstract]

Pension And Other Postretirement Benefit Plans

8. Pension and Other Postretirement Benefit Plans

The components of the net periodic pension cost and the postretirement medical cost (benefit) for the first quarter of 2012 and 2011 are as follows:

	Pension - U.S Plans						Pension - International Plans
(In millions)	First Quarter 2012			First Quarter 2011			First Quarter 2012			First Quarter 2011
Service cost	$	2		$	2		$	7		$	8
Interest cost		19			18			42			39
Expected return on plan assets		(20	)		(20	)		(56	)		(47	)
Amortization of:
Prior service cost (benefit)		—			—			1			1
Net actuarial loss		1			4			2			6
Net periodic benefit cost (benefit)	$	2		$	4		$	(4	)	$	7

	Postretirement Medical  and Life Insurance
(In millions)	First Quarter 2012			First Quarter 2011
Service cost	$	—		$	1
Interest cost		1			1
Amortization of:
Prior service cost (benefit)		(3	)		(3	)
Net periodic benefit cost (benefit)	$	(2	)	$	(1	)

The net periodic benefit costs of the defined benefit pension plans were lower in the first quarter of 2012 than in 2011 due to the increase in the expected return on plan assets, which results from the higher level of plan assets as of the beginning of this fiscal year due to improved asset returns during 2011; and a reduction in the amortization of net actuarial losses due to actuarial gains recognized during 2011, which reduced the amount of unrecognized actuarial losses to be amortized as of the end of 2011.

Beginning in the second quarter of 2011, the corporation has classified the North American fresh bakery business as discontinued operations and per the sale agreement, the purchaser will assume the pension and postretirement medical obligations related to those discontinued operations. As such, the total net periodic benefit costs associated with the participants in those plans has been included in discontinued operations as these costs will not be retained after these businesses are sold. In addition, the related pension and postretirement benefit plan net liabilities and/or assets have been included in assets and/or liabilities held for sale.

In 2010, the corporation classified the international household and body care businesses as discontinued operations. It has retained the majority of the pension and postretirement medical obligations related to those businesses. The corporation no longer anticipates incurring service cost for the participants in those plans after these businesses are sold and this cost component is recognized in discontinued operations, while the remainder of net periodic benefit cost is recognized in continuing operations.

During the first quarter of 2012 and 2011, the corporation contributed $115 million and $30 million, respectively, to its defined benefit pension plans. The $115 million contribution includes a €60 million contribution to the company's Dutch pension plan related to an agreement with the Dutch unions to restructure this plan. At the present time, the corporation expects to contribute approximately $200 million of cash to its defined benefit pension plans in 2012. The exact amount of cash contributions made to pension plans in any year is dependent upon a number of factors including minimum funding requirements in the jurisdictions in which the corporation operates and arrangements made with trustees of certain foreign plans. As a result, the actual funding in 2012 may differ from the current estimate.