EMPLOYEE BENEFIT PLANS

6 Months Ended

Jul. 01, 2017

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 America pension plans are as follows:

	Second Quarter						First Half
(In millions)	2017			2016			2017			2016
Service cost	$	1		$	2		$	3		$	4
Interest cost		9			12			19			23
Expected return on plan assets		(12	)		(14	)		(24	)		(28	)
Net periodic pension benefit	$	(2	)	$	—		$	(2	)	$	(1	)

In the first half of 2017, $1 million of cash contributions were made to the North America pension plans. The Company expects to make additional cash contributions of $14 million to the North America pension plans during the remainder of 2017, including a $13 million voluntary accelerated contribution to one of the qualified plans to reduce the costs associated with the plan.

Pension Plan – United Kingdom

As part of the European Business sale, the Company retained the United Kingdom (“UK”) defined benefit pension plan. The components of net periodic pension benefit for the Company’s UK pension plan are as follows:

	Second Quarter						First Half
(In millions)	2017			2016			2017			2016
Service cost	$	—		$	—		$	—		$	—
Interest cost		1			2			3			4
Expected return on plan assets		(3	)		(3	)		(6	)		(6	)
Net periodic pension benefit	$	(2	)	$	(1	)	$	(3	)	$	(2	)

The UK pension plan is in a net asset position. In the first half of 2017, cash contributions of $1 million were made to the UK pension plan. The Company is required to make an additional cash contribution of $1 million to the UK pension plan during the remainder of 2017.

Net periodic pension benefits for the North America and UK pension and other postretirement benefit plans are recorded in Selling, general and administrative expenses at the corporate level in the Condensed Consolidated Statements of Operations.