Retirement and Other Employee Benefits

Pension and Postretirement Health Care Benefits Plans

The net periodic costs (benefits) for Pension and Postretirement Health Care Benefits Plans were as follows:



	U.S. Pension Benefit Plans						Non U.S. Pension Benefit Plans						Postretirement Health Care Benefits Plan
Three Months Ended	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Service cost	$	—		$	—		$	1		$	2		$	—		$	—
Interest cost	46			46			10			14			1			1
Expected return on plan assets	(57		)	(55		)	(24		)	(24		)	(3		)	(3		)
Amortization of:
Unrecognized net loss	11			9			4			3			1			2
Unrecognized prior service benefit	—			—			—			—			(4		)	(7		)
Settlement loss	—			—			16			—			—			—
Net periodic pension cost (benefit)	$	—		$	—		$	7		$	(5	)	$	(5	)	$	(7	)



	U.S. Pension Benefit Plans						Non U.S. Pension Benefit Plans						Postretirement Health Care Benefits Plan
Six Months Ended	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Service cost	$	—		$	—		$	2		$	4		$	—		$	—
Interest cost	92			91			20			28			2			2
Expected return on plan assets	(115		)	(110		)	(47		)	(48		)	(6		)	(5		)
Amortization of:
Unrecognized net loss	22			19			8			6			2			3
Unrecognized prior service benefit	—			—			—			—			(8		)	(13		)
Settlement loss	—			—			25			—			—			—
Net periodic cost (benefit)	$	(1	)	$	—		$	8		$	(10	)	$	(10	)	$	(13	)

During the six months ended July 1, 2017, the Company offered lump-sum settlements to certain participants in the Non-US defined benefit plan within the United Kingdom. The lump-sum settlements were targeted to certain participants who had accrued a pension benefit, but had not yet started receiving pension benefit payments. As of June 30, 2017, the window for the participant registration in the program has closed. However, the Company expects to account for continuing settlements through the third quarter of 2017, as remaining lump-sum settlements are paid to participants. As a result of the actions taken through the first half of 2017, the Company recorded a settlement loss of $16 million and $25 million during the three and six months ended July 1, 2017, which is recorded within Other Charges within the condensed consolidated statement of operations.

During the six months ended July 2, 2016, the Company made an amendment to the Postretirement Health Care Benefits Plan (the “Amendment”). As a result of the Amendment, all eligible retirees under the age of 65 will be provided an annual subsidy per household, versus per individual, toward the purchase of their own health care coverage from private insurance companies and for the reimbursement of eligible health care expenses. The Amendment to the Postretirement Health Care Benefits Plan required a remeasurement of the plan, resulting in a $53 million reduction in the Accumulated Postretirement Benefit Obligation. A substantial portion of the decrease is related to a prior service credit and will be recognized as a credit to the condensed consolidated statements of operations over approximately five years, or the period in which the remaining employees eligible for the plan will qualify for benefits under the plan.