RETIREMENT PLANS

We provide defined-contribution benefits to eligible employees, as well as some remaining defined-benefit pension and other post-retirement benefits.

Net periodic defined-benefit pension and other post-retirement benefit cost (credit) for the three- and nine-month periods ended September 30, 2018, and October 1, 2017, consisted of the following:



	Pension Benefits						Other Post-retirement Benefits
Three Months Ended	September 30, 2018			October 1, 2017			September 30, 2018			October 1, 2017
Service cost	$	45		$	42		$	3		$	3
Interest cost	140			113			8			8
Expected return on plan assets	(225		)	(169		)	(10		)	(8		)
Recognized net actuarial loss (gain)	94			86			(1		)	(1		)
Amortization of prior service credit	(11		)	(17		)	(1		)	(1		)
Net periodic benefit cost (credit)	$	43		$	55		$	(1	)	$	1
Nine Months Ended
Service cost	$	135		$	126		$	8		$	9
Interest cost	394			339			24			25
Expected return on plan assets	(632		)	(508		)	(29		)	(25		)
Recognized net actuarial loss (gain)	283			258			(3		)	(3		)
Amortization of prior service credit	(33		)	(50		)	(3		)	(3		)
Net periodic benefit cost (credit)	$	147		$	165		$	(3	)	$	3

As discussed in Note A, the service cost component of net periodic benefit cost (credit) is reported separately from the other components of net periodic benefit cost (credit) in accordance with ASU 2017-07.

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 segments. 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 other post-retirement benefit cost exceeds the amount currently allocable to contracts. To the extent we consider recovery of the cost to be probable based on our backlog and probable follow-on contracts, we defer the excess in other contract costs in other current assets on the Consolidated Balance Sheet until the cost is allocable to contracts. For other plans, the amount allocated to contracts and included in revenue has exceeded the plans’ cumulative benefit cost. We have similarly deferred recognition of these excess earnings on the Consolidated Balance Sheet.

It is our policy to fund our defined-benefit retirement plans in a manner that optimizes the tax deductibility and contract recovery of contributions considered within our capital deployment framework. Therefore, we may make discretionary contributions in addition to the required contributions determined in accordance with IRS regulations. In addition to our required contributions of approximately $315 in 2018, we made a discretionary contribution of $255 in the third quarter of 2018, resulting in total pension plan contributions of approximately $570 in 2018. The additional contribution was considered to be a significant event in accordance with ASC Topic 715 and, therefore, triggered a remeasurement of the 2018 net periodic defined-benefit pension cost. The remeasured defined-benefit pension cost amount is reflected in the table above. Additionally, the net periodic defined-benefit pension and OPEB cost (credit) amounts in the table above reflect the inclusion of legacy CSRA plans assumed in connection with the acquisition as of the acquisition date.