POSTRETIREMENT BENEFIT PLANS

3 Months Ended

Mar. 26, 2023

Retirement Benefits [Abstract]

POSTRETIREMENT BENEFIT PLANS

POSTRETIREMENT BENEFIT PLANS

FAS income

The pretax FAS income related to our qualified defined benefit pension plans and retiree medical and life insurance plans consisted of the following (in millions):

	Quarters Ended
	March 26, 2023		March 27, 2022
Qualified defined benefit pension plans
Operating:
Service cost	$	(16)	$	(24)
Non-operating:
Interest cost	(365)		(302)
Expected return on plan assets	430		502
Recognized net actuarial losses	(42)		(150)
Amortization of prior service credits	87		90
Non-service FAS pension income	110		140
Total FAS pension income	$	94	$	116
Retiree medical and life insurance plans
Operating:
Service cost	$	(1)	$	(2)
Non-operating:
Interest cost	(17)		(12)
Expected return on plan assets	26		34
Recognized net actuarial gains	8		11
Amortization of prior service costs	(3)		(7)
Non-service FAS retiree medical and life income	14		26
Total FAS retiree medical and life income	$	13	$	24

We record the service cost component of FAS income for our qualified defined benefit pension plans and retiree medical and life insurance plans in the cost of sales accounts; the non-service components of our FAS income for our qualified defined benefit pension plans in the non-service FAS pension income account; and the non-service components of our FAS income for our retiree medical and life insurance plans as part of the other non-operating income, net account on our consolidated statements of earnings.

The recognized net actuarial losses or gains and amortization of prior service credits or costs in the table above, along with similar costs related to our other postretirement benefit plans ($3 million for the quarter ended March 26, 2023 and $5 million for the quarter ended March 27, 2022) were reclassified from accumulated other comprehensive loss (AOCL) and recorded as a component of FAS income for the periods presented. These costs totaled $(47) million ($(37) million, net of tax) during the quarter ended March 26, 2023, and $61 million ($48 million, net of tax) during the quarter ended March 27, 2022.

Funding requirements

The required funding of our qualified defined benefit pension plans is determined in accordance with the Employee Retirement Income Security Act of 1974 (ERISA), as amended, along with consideration of CAS and Internal Revenue Code rules. We made no contributions to our qualified defined benefit pension plans during the quarters ended March 26, 2023 and March 27, 2022.