Note 7: Employee Benefit Plans

9 Months Ended

Sep. 30, 2012

Notes to Condensed Consolidated Financial Statements [Abstract]

Note 7: Employee Benefit Plans

Note 7: Employee Benefit Plans

Pension and Postretirement Plans. We sponsor both funded and unfunded domestic and foreign defined pension and other postretirement benefit plans, and defined contribution plans.As part of our acquisition of Goodrich on July 26, 2012, we assumed approximately $1.5 billion of pension and post retirement benefit plan obligations. Contributions to our plans were as follows:

	Quarter Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)		2012		2011		2012		2011
Defined Benefit Plans	$	209	$	627	$	233	$	697
Defined Contribution Plans	$	65	$	52	$	183	$	165

In the first nine months of 2012, we made contributionsof $201 million to our domestic defined benefit pension plans, all of which was contributed in the third quarter of 2012. In the first nine months of 2011, we made contributions of $606 million to our domestic defined benefit pension plans, all of which was contributed in the third quarter of 2011. Included in the total domestic contributions was a $450 million contribution of UTC common stock.

The following tables illustrate the components of net periodic benefit cost for our defined pension and other postretirement benefit plans:

	Pension Benefits				Other Postretirement Benefits
	Quarter Ended September 30,				Quarter Ended September 30,
(Dollars in millions)	2012		2011		2012		2011
Service cost	$	131	$	111	$	1	$	1
Interest cost		344		325		10		9
Expected return on plan assets		(503)		(458)		-		-
Amortization		(7)		(2)		(2)		-
Recognized actuarial net loss (gain)		180		116		(1)		(2)
Net settlement and curtailment loss		15		-		-		-
Total net periodic benefit cost	$	160	$	92	$	8	$	8
	Pension Benefits				Other Postretirement Benefits
	Nine Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2012		2011		2012		2011
Service cost	$	361	$	333	$	3	$	3
Interest cost		970		975		26		29
Expected return on plan assets		(1,415)		(1,372)		-		-
Amortization		(13)		(8)		(2)		(2)
Recognized actuarial net loss (gain)		541		347		(5)		(6)
Net settlement and curtailment loss		50		13		-		-
Total net periodic benefit cost	$	494	$	288	$	22	$	24

Net settlements and curtailment losses for pension benefits includes curtailment losses of approximately $24 million related to,and recorded in,discontinued operationsfor the nine months ended September 30, 2012. There were no curtailment losses related to discontinued operations for the quarter ended September 30, 2012.