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POSTRETIREMENT BENEFIT PLANS
 3 Months Ended
Mar. 27, 2016
POSTRETIREMENT BENEFIT PLANS

NOTE 7 – 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  
      March 27,
2016     		      March 29,
2015     		  

Qualified defined benefit pension plans

      

Service cost

    $ 212            $ 217        

Interest cost

      465              448        

Expected return on plan assets

      (667)             (684)       

Recognized net actuarial losses

      340              400        

Amortization of net prior service credits

      (96)             (97)       

Total net periodic benefit cost

    $       254            $       284        

Retiree medical and life insurance plans

      

Service cost

    $ 6            $ 5        

Interest cost

      30              28        

Expected return on plan assets

      (34)             (37)       

Recognized net actuarial losses

      8              11        

Amortization of net prior service costs

      5              1        

Total net periodic benefit cost

    $ 15            $ 8        

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 ($11 million during the quarter ended March 27, 2016 and $13 million during the quarter ended March 29, 2015), include 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 $173 million (net of $95 million of tax expense) during the quarter ended March 27, 2016 and $212 million (net of $116 million of tax expense) during the quarter ended March 29, 2015, 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 heritage qualified defined benefit pension plans during the quarters ended March 27, 2016 and March 29, 2015. We do not plan to make contributions to our heritage pension plans in 2016 or 2017 because none are required using current assumptions, including anticipated investment returns on plan assets.