Pension and Retiree Medical Benefits

3 Months Ended

Mar. 19, 2016

Compensation and Retirement Disclosure [Abstract]

Pension and Retiree Medical Benefits

Pension and Retiree Medical Benefits

Effective as of the beginning of 2016, we prospectively changed the method we use to estimate the service and interest cost components of pension and retiree medical expense. The pre-tax reduction in net periodic benefit cost associated with this change in the first quarter of 2016 was $28 million ($18 million after-tax or $0.01 per share). See Pension and Retiree Medical Plans in “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on this change in accounting estimate.

The components of net periodic benefit cost for pension and retiree medical plans are as follows: 

	12 Weeks Ended
	Pension												Retiree Medical
	3/19/2016			3/21/2015			3/19/2016			3/21/2015			3/19/2016			3/21/2015
	U.S.						International
Service cost	$	91		$	101		$	15		$	19		$	7		$	8
Interest cost	111			126			18			22			9			12
Expected return on plan assets	(192		)	(196		)	(31		)	(33		)	(5		)	(6		)
Amortization of prior service credit	—			(1		)	—			—			(9		)	(9		)
Amortization of net loss	38			47			8			14			—			—
	48			77			10			22			2			5
Special termination benefits	—			4			—			—			—			1
Total expense	$	48		$	81		$	10		$	22		$	2		$	6

We regularly evaluate different opportunities to reduce risk and volatility associated with our pension and retiree medical plans. During the first quarter of 2016, we made discretionary contributions of $7 million to our international pension plans.