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POSTRETIREMENT BENEFIT PLANS (Tables)
 9 Months Ended
Sep. 28, 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      Nine Months Ended  
     

September 28,

2014

     

September 29,

2013

     

September 28,

2014

     

September 29,

2013

  

Qualified defined benefit pension plans

            

Service cost

    $ 208               $ 286               $ 694               $ 857           

Interest cost

      468                 450                 1,444                 1,350           

Expected return on plan assets

      (687)                (621)                (2,006)                (1,864)          

Recognized net actuarial losses

      365                 352                 807                 1,058           

Amortization of net prior service (credits) costs

      (96)                20                 (54)                60           

Total net periodic benefit cost

    $ 258               $ 487               $ 885               $ 1,461           
                                     

Retiree medical and life insurance plans

            

Service cost

    $ 5               $ 7               $ 16               $ 21           

Interest cost

      31                 29                 92                 87           

Expected return on plan assets

      (36)                (36)                (109)                (109)          

Recognized net actuarial losses

      5                 11                 17                 33           

Amortization of net prior service costs (credits)

      1                 (4)                3                 (13)          

Total net periodic benefit cost

    $ 6               $ 7               $ 19               $ 19           

Changes in Qualified Defined Benefit Pension Obligation and Plan Assets

Changes recorded in the second quarter of 2014 in our benefit obligations and plan assets of our qualified defined benefit pension plans as a result of the re-measurements performed in June 2014 are set forth in the following table (in millions):

 

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       

Increase in benefit obligations due to re-measurements

    $ (1,962)      

Incremental return on plan assets recognized in re-measurements (b)

      904       

Increase in net benefit obligations due to re-measurements

    $ (1,058)      

 

(a)  Reflects a decrease in the discount rate from 4.75% at December 31, 2013 to 4.25% in June 2014.
(b)  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 (the half-year proportional effect of our expected 8.00% annual long-term rate of return on plan assets assumption).