POSTRETIREMENT BENEFIT PLANS

6 Months Ended

Jun. 28, 2015

NOTE 6 – POSTRETIREMENT BENEFIT PLANS

Our pretax net periodic 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 28, 2015				June 29, 2014				June 28, 2015				June 29, 2014
Qualified defined benefit pension plans
Service cost		$	218			$	243			$	435			$	486
Interest cost			447				488				895				976
Expected return on plan assets			(683	)			(659	)			(1,367	)			(1,319	)
Recognized net actuarial losses			400				221				800				442
Amortization of prior service (credits) costs			(98	)			21				(195	)			42
Total net periodic benefit cost		$	284			$	314			$	568			$	627

Retiree medical and life insurance plans
Service cost		$	5			$	6			$	10			$	11
Interest cost			27				30				55				61
Expected return on plan assets			(37	)			(37	)			(74	)			(73	)
Recognized net actuarial losses			11				6				22				12
Amortization of prior service costs			1				1				2				2
Total net periodic benefit cost		$	7			$	6			$	15			$	13

The recognized net actuarial losses and the amortization of net prior service (credits) costs in the table above, as well as similar amounts related to our other postretirement benefit plans ($15 million and $28 million for the quarter and six months ended June 28, 2015 and $10 million and $19 million for the quarter and six months ended June 29, 2014), reflect amounts that were reclassified from accumulated other comprehensive loss (AOCL) and recorded as a component of net periodic benefit cost for the periods presented. These costs totaled $213 million (net of $116 million of tax expense) and $425 million (net of $232 million of tax expense) for the quarter and six months ended June 28, 2015 and $167 million (net of $92 million of tax expense) and $334 million (net of $183 million of tax expense) for the quarter and six months ended June 29, 2014, which were recorded on our Statements of Comprehensive Income as an increase to other comprehensive income.

The funding of our qualified defined benefit pension plans is determined in accordance with the Employee Retirement Income Security Act of 1974 (ERISA), as amended by the Pension Protection Act of 2006 (PPA), and in a manner consistent with CAS and Internal Revenue Code rules. There were no contributions to our qualified defined benefit pension plans during the quarter and six months ended June 28, 2015, compared to $515 million in contributions to our qualified defined benefit pension plans during the quarter and six months ended June 29, 2014. We do not plan to make contributions to our qualified defined benefit pension plans in 2015.