POSTRETIREMENT BENEFIT PLANS (Tables)

6 Months Ended

Jun. 29, 2014

Pretax Net Periodic Benefit Cost

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

	Quarters Ended				Six Months Ended
	June 29, 2014		June 30, 2013		June 29, 2014		June 30, 2013
Qualified defined benefit pension plans
Service cost	$	243	$	285	$	486	$	571
Interest cost		488		450		976		900
Expected return on plan assets		(659)		(621)		(1,319)		(1,243)
Recognized net actuarial losses		221		353		442		706
Amortization of prior service costs		21		20		42		40
Total net periodic benefit cost	$	314	$	487	$	627	$	974
Retiree medical and life insurance plans
Service cost	$	6	$	7	$	11	$	14
Interest cost		30		29		61		58
Expected return on plan assets		(37)		(37)		(73)		(73)
Recognized net actuarial losses		6		11		12		22
Amortization of prior service costs (credits)		1		(4)		2		(9)
Total net periodic benefit cost	$	6	$	6	$	13	$	12

Changes in Qualified Defined Benefit Pension Obligation and Plan Assets

Changes in our benefit obligations, plan assets, and the unfunded status of our qualified defined benefit pension plans, inclusive of the impacts of the re-measurements, are set forth in the following table (in millions):

Benefit obligations at December 31, 2013	$	(42,161)
Changes in benefit obligations due to re-measurements
Plan amendments related to the salary freeze		4,580
New longevity assumptions		(3,390)
Discount rate (a)		(3,309)
Other		157
Service cost		(486)
Interest cost		(976)
Benefits paid		975
Benefit obligations at June 29, 2014	$	(44,610)
Plan assets at December 31, 2013	$	33,010
Actual return on plan assets (b)
Expected return on plan assets		1,319
Incremental return on plan assets recognized in re-measurements		904
Company contributions		515
Benefits paid		(975)
Plan assets at June 29, 2014		34,773
Net unfunded status of the plans at June 29, 2014 (c)	$	(9,837)

^(a)  Reflects a decrease in the discount rate from 4.75% at December 31, 2013 to 4.25% at the re-measurement date.

^(b)  The expected return on plan assets represents the expected long-term rate of return on plan assets of 4.00% for the six months ended June 29, 2014 (the half-year proportional effect of our expected 8.00% annual long-term rate of return on plan assets assumption). The incremental return on plan assets recognized in re-measurements represents the difference between our actual return on plan assets of 6.70% and our expected return of 4.00% for the six months ended June 29, 2014.

^(c)  For plans where the benefit obligation is in excess of plan assets, we record the net obligation (which was $10,046 million as of June 29, 2014) as accrued pension liabilities on our Balance Sheet. Conversely, for plans where the assets exceed the benefit obligation, we record the net asset (which was $209 million as of June 29, 2014) within other noncurrent assets on our Balance Sheet. The net unfunded status of the plans represents the net total of these two amounts.