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								Six Months Ended
		June 26, 2016				June 28, 2015				June 26, 2016				June 28, 2015
Qualified defined benefit pension plans
Service cost			$            212				$        218				$            424				$            435
Interest cost			466				447				931				895
Expected return on plan assets			(666)				(683)				(1,333)				(1,367)
Recognized net actuarial losses			339				400				679				800
Amortization of prior service (credits) costs			(97)				(98)				(193)				(195)
Total net periodic benefit cost			$            254				$        284				$            508				$            568
Retiree medical and life insurance plans
Service cost			$                6				$            5				$              12				$              10
Interest cost			29				27				59				55
Expected return on plan assets			(35)				(37)				(69)				(74)
Recognized net actuarial losses			9				11				17				22
Amortization of prior service costs			6				1				11				2
Total net periodic benefit cost			$              15				$            7				$              30				$              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 ($10 million and $21 million during the quarter and six months ended June 26, 2016 and $15 million and $28 million for the quarter and six months ended June 28, 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 $94 million of tax expense) and $346 million (net of $189 million of tax expense) for the quarter and six months ended June 26, 2016 and $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, 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 quarters and six months ended June 26, 2016 and June 28, 2015, other than insignificant contributions to the pension plans we assumed in the Sikorsky acquisition. We do not plan to make contributions to our pension plans in 2016 or 2017, other than insignificant contributions to the pension plans we assumed in the Sikorsky acquisition, because none are required using current assumptions, including anticipated investment returns on plan assets.