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Employee Benefit Plans
 6 Months Ended
Jun. 30, 2020
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Disclosure [Text Block] Employee Benefit Plans
Pension and Postretirement Plans. We sponsor both funded and unfunded domestic and foreign defined benefit pension and postretirement benefit (PRB) plans, and defined contribution plans.
On April 3, 2020, UTC completed the Separation Transactions, which included the transfer of certain defined benefit plans from UTC to Otis and Carrier. The plans transferred were primarily international plans with the majority of the UTC defined benefit liability remaining with Raytheon Technologies. Upon separation, the employees within Otis and Carrier were terminated from Raytheon Technologies. The terminations of approximately 3,400 domestic pension plan participants triggered a mid-year remeasurement of the UTC domestic plans. The remeasurement, which was calculated using discount rates and asset values as of April 3, 2020, resulted in a $2.4 billion increase to our pension liability, primarily due to a decrease in the fair market value of the plans’ assets since December 31, 2019. Historical amounts have been restated for discontinued operations. All service cost previously associated with Otis and Carrier is included in discontinued operations. For non-service pension expense and the pension liability, only the portion related to the defined benefit plans that was transferred to Otis and Carrier as part of the Separation Transactions was reclassified to discontinued operations.
Raytheon Company has both funded and unfunded domestic and foreign defined benefit pension and PRB plans. As of the merger date, the Raytheon Company plans were remeasured at fair value using accounting policies consistent with the UTC plans. The deferred pension and PRB plan losses included in Raytheon Company’s accumulated other comprehensive income (loss) as of the merger date were eliminated and are no longer subject to amortization in net periodic benefit (income) cost and postretirement benefit costs. Amounts prior to the merger date of April 3, 2020, do not include the Raytheon Company pension plan results.
Contributions to our plans were as follows:
 Quarter Ended June 30,Six Months Ended June 30,
(dollars in millions)2020201920202019
US qualified and international defined benefit plans$34  $33  $42  $37  
Defined contribution plans227  117  440  252  
We made no contributions to our domestic defined benefit pension plans for the quarters and six months ended June 30, 2020 and 2019. Included in the current year contributions to employer sponsored defined contribution plans for the six months ended June 30, 2020 is $77 million of additional contributions resulting from the 2019 amendment to the UTC domestic pension plans whereby plan participants ceased accrual of additional benefits for future service effective December 31, 2019 and began receiving additional employer contributions effective January 1, 2020 under the UTC domestic defined contribution plan.
Future pension and postretirement benefit obligations on the Condensed Consolidated Balance Sheet consisted of the following:
(dollars in millions)June 30, 2020December 31, 2019
Long-term pension liabilities$13,774  $1,770  
Long-term PRB liabilities1,069  696  
Other pension and PRB related items
129  21  
Total long-term pension and PRB liabilities(1)
$14,972  $2,487  
(1)  Increase in long-term pension and PRB liabilities is primarily due to the Raytheon Merger and the remeasurement of the UTC legacy plans.
The following table illustrates the components of net periodic benefit (income) cost for our defined pension and PRB plans:
 
Pension Benefits
Quarter Ended June 30,
Other Postretirement Benefits
Quarter Ended June 30,
(dollars in millions)2020201920202019
Operating expense
Service cost
$142  $74  $2  $1  
Non-operating expense
Interest cost
452  321  10  8  
Expected return on plan assets
(814) (568) (4) —  
Amortization of prior service cost (credit)
13  4  (1) (11) 
Recognized actuarial net loss (gain)
83  49  (3) (3) 
Net settlement and curtailment loss
27  —  —  —  
Non-service pension (income) cost
(239) (194) 2  (6) 
Total net periodic benefit (income) cost$(97) $(120) $4  $(5) 

 
Pension Benefits
Six Months Ended June 30,
Other Postretirement Benefits
Six Months Ended June 30,
(dollars in millions)2020201920202019
Operating expense
Service cost
$179  $146  $3  $2  
Non-operating expense
Interest cost
705  642  16  16  
Expected return on plan assets
(1,335) (1,136) (5) (1) 
Amortization of prior service cost (credit)
26  9  (2) (22) 
Recognized actuarial net loss (gain)
169  98  (6) (6) 
Net settlement and curtailment loss
27  8  —  —  
Non-service pension (income) cost
(408) (379) 3  (13) 
Total net periodic benefit (income) cost$(229) $(233) $6  $(11) 
We have set aside assets in separate trusts, which we expect to be used to pay for certain nonqualified defined benefit and defined contribution plan obligations in excess of qualified plan limits. The fair value of marketable securities held in trusts consisted of the following:
(dollars in millions)June 30, 2020December 31, 2019
Marketable securities held in trusts$758  $—