Retirement Plans

Defined Benefit Pension Plans—The Company sponsors a number of pension plans. The following disclosures exclude the impact of plans which are immaterial individually and in the aggregate. The net periodic benefit cost for the Company's material U.S. and non-U.S. defined benefit pension plans is as follows ($ in millions):



	U.S. Plans
	For the Quarters Ended						For the Nine Months Ended
	June 24, 2016			June 26, 2015			June 24, 2016			June 26, 2015
Service cost	$	2		$	2		$	6		$	6
Interest cost	8			9			24			27
Expected return on plan assets	(12		)	(14		)	(36		)	(42		)
Amortization of net actuarial loss	3			3			9			7
Net periodic cost (benefit)	$	1		$	—		$	3		$	(2	)



	Non-U.S. Plans
	For the Quarters Ended						For the Nine Months Ended
	June 24, 2016			June 26, 2015			June 24, 2016			June 26, 2015
Service cost	$	2		$	2		$	6		$	7
Interest cost	11			14			32			40
Expected return on plan assets	(18		)	(19		)	(53		)	(58		)
Amortization of net actuarial loss	4			3			11			10
Net periodic benefit	$	(1	)	$	—		$	(4	)	$	(1	)

Effective September 26, 2015, the Company changed the approach used to measure service and interest costs for pension benefits. For fiscal 2015, the Company measured service and interest costs utilizing a single weighted-average discount rate derived from the yield curve used to measure the Company’s plan obligations. For fiscal 2016, the Company elected to measure service and interest costs by applying the specific spot rates along the yield curve over the projected cash flow period. The Company believes the new approach provides a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot rates on the yield curves. The Company estimates its periodic pension costs for both its U.S. and non-U.S. plans will be reduced by approximately $6 million each in fiscal 2016 as a result of the change. The Company has accounted for this change as a change in accounting estimate and, accordingly, has accounted for it on a prospective basis.

The estimated net actuarial loss for U.S. and non-U.S. pension benefit plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the current fiscal year is expected to be $13 million and $15 million, respectively. Amortization of net periodic benefit cost from Accumulated other comprehensive loss for the Company's pension benefit plans is recorded in Selling, general and administrative expenses, Cost of product sales, or Cost of services within the Consolidated Statements of Operations, depending on the employee job classification.

The Company's funding policy is to make contributions in accordance with the laws and customs of the various countries in which it operates and to make discretionary voluntary contributions from time to time. The Company anticipates that it will contribute $3 million for U.S. plans and $25 million for non-U.S. plans during fiscal 2016.

During the quarter ended June 24, 2016, the Company made required contributions of $1 million to its U.S. pension plans and $3 million to its non-U.S. pension plans. During the nine months ended June 24, 2016, the Company made required contributions of $2 million to its U.S. pension plans and $16 million to its non-U.S. pension plans. The Company did not make any voluntary contributions to its U.S. plans during the nine months ended June 24, 2016. The Company made a voluntary contribution of nil and $4 million to its non-U.S. plans during the quarter and nine months ended June 24, 2016, respectively.

Postretirement Benefit Plans—Net periodic postretirement benefit cost was not material for both periods.