Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2020

Contributions to our plans were as follows:


	Quarter Ended September 30,						Nine Months Ended September 30,
(dollars in millions)	2020		2019		2020		2019
US qualified and international defined benefit and PRB plans	$	22	$	4	$	64	$	41
Defined contribution plans⁽¹⁾	228		117		668		369

(1) Increase in contributions to our defined contribution plans is primarily due to contributions related to the Raytheon Company plans.

Schedule of Amounts Recognized in Balance Sheet

Future pension and postretirement benefit obligations on the Condensed Consolidated Balance Sheet consisted of the following:


(dollars in millions)	September 30, 2020		December 31, 2019
Long-term pension liabilities	$	13,499	$	1,770
Long-term PRB liabilities	1,059		696
Other pension and PRB related items	130		21
Total long-term pension and PRB liabilities⁽¹⁾	$	14,688	$	2,487

(1) Increase in long-term pension and PRB liabilities is primarily due to liabilities acquired as part of the Raytheon Merger and the remeasurement of the UTC domestic defined benefit plans as a result of the Separation Transactions.

Schedule of Net Benefit Costs

The following table illustrates the components of net periodic benefit (income) expense for our defined pension and PRB plans:


	Pension Benefits Quarter Ended September 30,						PRB Quarter Ended September 30,
(dollars in millions)	2020		2019		2020		2019
Operating expense
Service cost	$	149	$	62	$	2	$	—
Non-operating expense
Interest cost	465		300		10		7
Expected return on plan assets	(827)		(551)		(4)		—
Amortization of prior service cost (credit)	13		4		(1)		(10)
Recognized actuarial net loss (gain)	86		60		(3)		(3)
Net settlement and curtailment loss (gain)	8		(96)		—		—
Non-service pension (income) expense	(255)		(283)		2		(6)
Total net periodic benefit (income) expense	$	(106)	$	(221)	$	4	$	(6)


	Pension Benefits Nine Months Ended September 30,						PRB Nine Months Ended September 30,
(dollars in millions)	2020		2019		2020		2019
Operating expense
Service cost	$	328	$	208	$	5	$	2
Non-operating expense
Interest cost	1,170		942		26		23
Expected return on plan assets	(2,162)		(1,687)		(9)		(1)
Amortization of prior service cost (credit)	39		13		(3)		(32)
Recognized actuarial net loss (gain)	255		158		(9)		(9)
Net settlement and curtailment loss (gain)	35		(88)		—		—
Non-service pension (income) expense	(663)		(662)		5		(19)
Total net periodic benefit (income) expense	$	(335)	$	(454)	$	10	$	(17)

Marketable Securities

The fair value of marketable securities held in trusts consisted of the following:


(dollars in millions)	September 30, 2020		December 31, 2019
Marketable securities held in trusts	$	847	$	—