Employee Benefit Plans

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits Disclosure

Note 9: 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.

Contributions to our plans were as follows:

	Quarter Ended March 31,
(dollars in millions)	2023		2022
U.S. qualified defined benefit plans	$	—	$	—
International defined benefit plans	8		12
PRB plans	4		5
Defined contribution plans	372		311

In December 2020, we approved a change to the Raytheon Company domestic defined benefit pension plans for non-union participants to cease future benefit accruals based on an employee’s years of service and compensation under the historical formula effective December 31, 2022. The plan change does not impact participants’ historical benefit accruals. Benefits for service after December 31, 2022 are based on a cash balance formula.

The amounts recognized in the Condensed Consolidated Balance Sheet consist of:

(dollars in millions)	March 31, 2023		December 31, 2022
Noncurrent pension assets (included in Other assets)	$	3,527	$	3,301
Current pension and PRB liabilities (included in Accrued employee compensation)	307		307
Future pension and postretirement benefit obligations	4,676		4,807

The amounts recognized in Future pension and postretirement benefit obligations consist of:

(dollars in millions)	March 31, 2023		December 31, 2022
Noncurrent pension liabilities	$	4,004	$	4,133
Noncurrent PRB liabilities	612		611
Other pension and PRB related items	60		63
Future pension and postretirement benefit obligations	$	4,676	$	4,807

The components of net periodic benefit (income) expense for our defined pension and PRB plans were as follows:

	Pension Benefits Quarter Ended March 31,				PRB Quarter Ended March 31,
(dollars in millions)	2023		2022		2023		2022
Operating expense
Service cost	$	55	$	118	$	1	$	2
Non-operating expense
Interest cost	626		382		12		7
Expected return on plan assets	(937)		(890)		(5)		(5)
Amortization of prior service credit	(39)		(42)		—		—
Recognized actuarial net loss (gain)	(95)		77		(8)		(3)
Net settlement, curtailment and special termination benefit (gain) loss	2		(6)		—		—
Non-service pension income	(443)		(479)		(1)		(1)
Total net periodic benefit (income) expense	$	(388)	$	(361)	$	—	$	1

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 in our Condensed Consolidated Balance Sheet. The fair value of marketable securities held in trusts was as follows:

(dollars in millions)	March 31, 2023		December 31, 2022
Marketable securities held in trusts	$	703	$	774