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POSTRETIREMENT PLANS
 3 Months Ended
Mar. 26, 2017
POSTRETIREMENT PLANS

NOTE 6 – POSTRETIREMENT 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 26,

2017

      March 27,
2016		  

 

  

Qualified defined benefit pension plans

      

Service cost

     $ 205                $ 203          

Interest cost

      452                 465          

Expected return on plan assets

              (602)                        (667)         

Recognized net actuarial losses

      376                 340          

Amortization of net prior service credits

      (86)                (90)         

 

  

Total net periodic benefit cost

     $ 345                $ 251          

 

  

Retiree medical and life insurance plans

      

Service cost

     $ 5                $ 6          

Interest cost

      26                 30          

Expected return on plan assets

      (32)                (34)         

Recognized net actuarial losses

      5                 8          

Amortization of net prior service costs

      3                 5          

 

  

Total net periodic benefit cost

     $ 7                $ 15          

 

  

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 ($14 million during the quarter ended March 26, 2017 and $11 million during the quarter ended March 27, 2016), 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 $202 million (net of $110 million of taxes) during the quarter ended March 26, 2017 and $173 million (net of $95 million of taxes) during the quarter ended March 27, 2016, which were recorded on our consolidated 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 material contributions to our qualified defined benefit pension plans during the quarters ended March 26, 2017 and March 27, 2016. We do not plan to make material contributions to our pension plans in 2017 because none are required using current assumptions, including anticipated investment returns on plan assets.