Employee Benefit Plans

3 Months Ended

Mar. 31, 2021

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 Carrier and Otis. The plans transferred were primarily international plans with the majority of the UTC defined benefit liability remaining with Raytheon Technologies. All service cost previously associated with Carrier and Otis was reclassified to discontinued operations. For non-service pension (income) expense and pension liabilities, generally only the portions related to the defined benefit plans transferred to Carrier and Otis as part of the Separation Transactions were 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) expense. 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 March 31,
(dollars in millions)	2021		2020
U.S. qualified defined benefit plans	$	—	$	—
International defined benefit plans	7		8
PRB plans	—		—
Defined contribution plans	271		213

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

(dollars in millions)	March 31, 2021		December 31, 2020
Long-term pension liabilities	$	8,669	$	9,131
Long-term PRB liabilities	1,073		1,072
Other pension and PRB related items	66		139
Total long-term pension and PRB liabilities	$	9,808	$	10,342

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

	Pension Benefits Quarter Ended March 31,				PRB Quarter Ended March 31,
(dollars in millions)	2021		2020		2021		2020
Operating expense
Service cost	$	131	$	37	$	2	$	1
Non-operating expense
Interest cost	312		253		6		6
Expected return on plan assets	(868)		(521)		(5)		(1)
Amortization of prior service cost (credit)	(42)		13		(1)		(1)
Recognized actuarial net loss (gain)	109		86		(2)		(3)
Net settlement and curtailment loss (gain)	—		—		—		—
Non-service pension (income) expense	(489)		(169)		(2)		1
Total net periodic benefit (income) expense	$	(358)	$	(132)	$	—	$	2

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. These assets are included in Other assets, current in our Condensed Consolidated Balance Sheet. The fair value of marketable securities held in trusts consisted of the following:

(dollars in millions)	March 31, 2021		December 31, 2020
Marketable securities held in trusts	$	879	$	881