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Retirement Plans
 6 Months Ended
Jun. 30, 2013
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 six-month periods ended July 1, 2012, and June 30, 2013, consisted of the following:

 
Pension Benefits
Other Post-retirement Benefits
Three Months Ended
July 1, 2012
 
June 30, 2013
July 1, 2012
 
June 30, 2013
Service cost
$
71

 
$
80

$
3

 
$
4

Interest cost
131

 
124

14

 
13

Expected return on plan assets
(147
)
 
(148
)
(8
)
 
(7
)
Recognized net actuarial loss
66

 
106

3

 
6

Amortization of prior service (credit) cost
(11
)
 
(15
)
2

 
2

Net periodic cost
$
110

 
$
147

$
14

 
$
18

 
Pension Benefits
Other Post-retirement Benefits
Six Months Ended
July 1, 2012
 
June 30, 2013
July 1, 2012
 
June 30, 2013
Service cost
$
142

 
$
160

$
6

 
$
8

Interest cost
262

 
248

28

 
26

Expected return on plan assets
(294
)
 
(296
)
(15
)
 
(14
)
Recognized net actuarial loss
132

 
212

5

 
12

Amortization of prior service (credit) cost
(22
)
 
(30
)
4

 
4

Net periodic cost
$
220

 
$
294

$
28

 
$
36


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. As a result, pension costs allocable to our contracts are expected to increase beginning in 2014 when the 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 submitted REAs of approximately $165 for these contracts in 2012.