EMPLOYEE BENEFIT PLANS

6 Months Ended

Jun. 25, 2016

EMPLOYEE BENEFIT PLANS

NOTE 8. EMPLOYEE BENEFIT PLANS

Pension and Other Postretirement Benefit Plans – North America

The components of net periodic pension benefit for the Company’s North American pension plans are as follows:

	Second Quarter						First Half
(In millions)	2016			2015			2016			2015
Service cost	$	2		$	1		$	4		$	2
Interest cost		12			11			23			23
Expected return on plan assets		(14	)		(14	)		(28	)		(28	)
Net periodic pension benefit	$	—		$	(2	)	$	(1	)	$	(3	)

In the first half of 2016, $1 million of cash contributions were made to the North American pension plans. The Company expects to make additional cash contributions of $1 million to the North American pension plans in the remainder of 2016.

Pension Plan – Europe

The components of net periodic pension benefit for the Company’s European pension plan are as follows:

	Second Quarter						First Half
(In millions)	2016			2015			2016			2015
Service cost	$	—		$	—		$	—		$	—
Interest cost		2			2			4			4
Expected return on plan assets		(3	)		(3	)		(6	)		(7	)
Net periodic pension benefit	$	(1	)	$	(1	)	$	(2	)	$	(3	)

The Company’s European pension plan is in a net asset position. The Company expects to make additional cash contributions of $1 million to the European pension plan in the remainder of 2016.

Net periodic pension benefits for the North American and European pension and other postretirement benefit plans are recorded in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.