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POSTRETIREMENT BENEFIT PLANS
6 Months Ended
Jun. 30, 2013
POSTRETIREMENT BENEFIT PLANS

NOTE 5 – POSTRETIREMENT BENEFIT PLANS

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

 

     Quarters Ended           Six Months Ended     
  

 

 

 
     

June 30,

2013

    

June 24,

2012

    

June 30,

2013

    

June 24,

2012

 

Qualified defined benefit pension plans

           

Service cost

   $ 285              $ 263              $ 571              $ 527            

Interest cost

     450                471                900                942            

Expected return on plan assets

         (621)                   (546)                 (1,243)                   (1,093)           

Recognized net actuarial losses

     353                279                706                558            

Amortization of prior service cost

     20                19                40                37            

Total net periodic benefit cost

   $ 487              $ 486              $ 974              $ 971            

Retiree medical and life insurance plans

           

Service cost

   $ 7              $ 7              $ 14              $ 14            

Interest cost

     29                33                58                66            

Expected return on plan assets

     (37)               (33)               (73)               (66)           

Recognized net actuarial losses

     11                8                22                16            

Amortization of prior service credit

     (4)               (3)               (9)               (6)           

Total net periodic benefit cost

   $ 6              $ 12              $ 12              $ 24            

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 $253 million (net of $139 million of tax expense) and $507 million (net of $278 million of tax expense) for the quarter and six months ended June 30, 2013, and $203 million (net of $111 million of tax expense) and $406 million (net of $222 million of tax expense) for the quarter and six months ended June 24, 2012, 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 quarter and six months ended June 30, 2013, we made $750 million in contributions to our qualified defined benefit pension plans. Additionally, we made contributions of $750 million early in the third quarter of 2013, which completes our anticipated funding of $1.5 billion for 2013. During the quarter and six months ended June 30, 2013, there were no contributions to our retiree medical and life insurance plans, and we do not expect to make any contributions to these plans in 2013. Consistent with prior years, we may review options for further contributions in the remainder of 2013.