Postretirement Benefit Plans

9 Months Ended

Sep. 30, 2012

Postretirement Benefit Plans

NOTE 5 – POSTRETIREMENT BENEFIT PLANS

The components of our net periodic benefit costs for our qualified defined benefit and retiree medical and life insurance plans were as follows (in millions):

	Quarters Ended						Nine Months Ended
	September 30, 2012			September 25, 2011			September 30, 2012			September 25, 2011
Qualified defined benefit pension plans
Service cost		$ 264			$ 244			$    791			$    731
Interest cost		471			479			1,413			1,438
Expected return on plan assets		(547	)		(509	)		(1,640	)		(1,525	)
Recognized net actuarial losses		279			220			837			660
Amortization of prior service cost		18			21			55			62
Total net pension expense		$ 485			$ 455			$ 1,456			$ 1,366
Retiree medical and life insurance plans
Service cost		$     7			$     8			$      21			$      24
Interest cost		33			41			99			122
Expected return on plan assets		(33	)		(35	)		(99	)		(105	)
Recognized net actuarial losses		8			8			24			25
Amortization of prior service credit		(3	)		(4	)		(9	)		(12	)
Total net postretirement expense		$   12			$   18			$      36			$      54

The recognized net actuarial losses and the amortization of prior service cost (credit) in the table above, as well as similar costs related to our other postretirement benefit plans, reflect costs that were recorded as a component of net periodic benefit cost for the period. These costs totaled $203 million (net of $111 million of tax expense) and $609 million (net of $333 million of tax expense) for the quarter and nine months ended September 30, 2012, and $171 million (net of $93 million of tax expense) and $501 million (net of $273 million of tax expense) for the quarter and nine months ended September 25, 2011, which are recorded on our Statements of Comprehensive Income as an increase to comprehensive income for all periods presented.

We determine funding requirements for our defined benefit pension plans in a manner consistent with CAS and the Employee Retirement Income Security Act of 1974 (ERISA), as amended by the Pension Protection Act of 2006. During the nine months ended September 30, 2012, we made $1.1 billion in contributions to our qualified defined benefit pension plans, which completed our required funding for 2012. There were no contributions made to these plans during the quarter ended September 30, 2012. Consistent with prior years, we will consider options for further contributions in the remainder of the year. We expect to make contributions of approximately $110 million to the retiree medical and life insurance plans in 2012, of which $29 million and $50 million were made during the quarter and nine months ended September 30, 2012.