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Retirement Plans
 9 Months Ended
Sep. 30, 2012
Compensation and Retirement Disclosure [Abstract]  
Retirement Plans
RETIREMENT PLANS
We provide defined-contribution benefits, as well as defined-benefit pension and other post-retirement benefits, to eligible employees.
Net periodic cost associated with our defined-benefit pension and other post-retirement benefit plans for the three- and nine-month periods ended October 2, 2011, and September 30, 2012, consisted of the following:

 
Pension Benefits
Other Post-retirement Benefits
Three Months Ended
October 2, 2011
 
September 30, 2012
October 2, 2011
 
September 30, 2012
Service cost
$
64

 
$
71

$
3

 
$
3

Interest cost
129

 
131

16

 
15

Expected return on plan assets
(150
)
 
(147
)
(8
)
 
(7
)
Recognized net actuarial loss
40

 
66

1

 
2

Amortization of prior service (credit) cost
(11
)
 
(11
)
1

 
2

Net periodic cost
$
72

 
$
110

$
13

 
$
15

 
Pension Benefits
Other Post-retirement Benefits
Nine Months Ended
October 2, 2011
 
September 30, 2012
October 2, 2011
 
September 30, 2012
Service cost
$
191

 
$
213

$
10

 
$
9

Interest cost
388

 
393

46

 
43

Expected return on plan assets
(450
)
 
(441
)
(24
)
 
(22
)
Recognized net actuarial loss
120

 
198

3

 
7

Amortization of prior service (credit) cost
(33
)
 
(33
)
4

 
6

Net periodic cost
$
216

 
$
330

$
39

 
$
43


Our contractual arrangements with the U.S. government provide for the recovery of contributions to our pension and other post-retirement benefit plans covering employees working in our defense business groups. For non-funded plans, our government contracts allow us to recover claims paid. Following payment, these recoverable amounts are allocated to contracts and billed to the customer in accordance with the Cost Accounting Standards (CAS) and specific contractual terms. For some of these plans, the cumulative pension and post-retirement benefit cost exceeds the amount currently allocable to contracts. To the extent recovery of the cost is considered probable based on our backlog and probable follow-on contracts, we defer the excess in contracts in process on the Consolidated Balance Sheets until the cost is allocable to contracts. See Note E for discussion of our deferred contract costs. For other plans, the amount allocated to contracts and included in revenues has exceeded the plans’ cumulative benefit cost. We have deferred recognition of these excess earnings to provide a better matching of revenues and expenses. These deferrals have been classified against the plan assets on the Consolidated Balance Sheets.
In late 2011, changes were made to the CAS to harmonize the regulations with the Pension Protection Act of 2006 (PPA). As a result, pension costs allocable to our contracts are expected to increase beginning in 2014 when the full impact of the CAS regulations begins to take effect. For certain contracts awarded prior to February 27, 2012, we are entitled to recovery of these additional pension costs from our customers. We expect to submit REAs of approximately $170 for these contracts in the fourth quarter of 2012.