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				Six Months Ended
	June 25, 2017		June 26, 2016		June 25, 2017		June 26, 2016
Qualified defined benefit pension plans
Service cost	$	205	$	204	$	410	$	407
Interest cost		453		466		905		931
Expected return on plan assets		(602)		(666)		(1,204)		(1,333)
Recognized net actuarial losses		377		339		753		679
Amortization of prior service credits		(90)		(92)		(176)		(182)
Total net periodic benefit cost	$	343	$	251	$	688	$	502
Retiree medical and life insurance plans
Service cost	$	5	$	6	$	10	$	12
Interest cost		25		29		51		59
Expected return on plan assets		(32)		(35)		(64)		(69)
Recognized net actuarial losses		5		9		10		17
Amortization of prior service costs		4		6		7		11
Total net periodic benefit cost	$	7	$	15	$	14	$	30

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 and prior service credits related to IS&GS, which were reclassified to discontinued operations during 2016 ($13 million and $27 million during the quarter and six months ended June 25, 2017 and $5 million and $10 million for the quarter and six months ended June 26, 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 $309 million ($200 million, net of tax) and $621 million ($402 million, net of tax) during the quarter and six months ended June 25, 2017 and $267 million ($173 million, net of tax) and $535 million ($346 million, net of tax) during the quarter and six months ended June 26, 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 and six months ended June 25, 2017 and June 26, 2016. Currently, 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.