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Employee Benefit Plans
 6 Months Ended
Jun. 30, 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. Upon separation, the pension participants within Carrier and Otis were effectively terminated from Raytheon Technologies. The terminations 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 (using March 31, 2020 as a practical expedient), resulted in a $2.4 billion increase to our pension liability in the quarter ended June 30, 2020, primarily due to a decrease in the fair market value of the plans’ assets since December 31, 2019. All service cost previously associated with Carrier and Otis was reclassified to discontinued operations. For non-service pension (income) expense and pension liabilities, generally only the portions related to the defined benefit plans transferred to Carrier and Otis as part of the Separation Transactions were reclassified to discontinued operations.
Raytheon Company has both funded and unfunded domestic and foreign defined benefit pension and PRB plans. As of the merger date, the Raytheon Company plans were remeasured at fair value using accounting policies consistent with the UTC plans. The deferred pension and PRB plan losses included in Raytheon Company’s accumulated other comprehensive income
(loss) as of the merger date were eliminated and are no longer subject to amortization in net periodic benefit (income) expense. Amounts prior to the merger date of April 3, 2020 do not include the Raytheon Company pension plan results.
Contributions to our plans were as follows:
 Quarter Ended June 30,Six Months Ended June 30,
(dollars in millions)2021202020212020
U.S. qualified defined benefit plans$— $— $— $— 
International defined benefit plans14 34 21 42 
PRB plans4 — 4 — 
Defined contribution plans238 227 509 440 
The amounts recognized in the Condensed Consolidated Balance Sheet consist of:
(dollars in millions)June 30, 2021December 31, 2020
Noncurrent pension assets (included in Other assets)$1,069 $424 
Current pension and PRB liabilities (included in Accrued employee compensation)314 314 
Future pension and postretirement benefit obligations9,929 10,342 
The amounts recognized in Future pension and postretirement benefit obligations consist of:
(dollars in millions)June 30, 2021December 31, 2020
Noncurrent pension liabilities$8,805 $9,131 
Noncurrent PRB liabilities1,058 1,072 
Other pension and PRB related items
66 139 
Future pension and postretirement benefit obligations$9,929 $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 June 30,
PRB
Quarter Ended June 30,
(dollars in millions)2021202020212020
Operating expense
Service cost
$131 $142 $2 $2 
Non-operating expense
Interest cost
313 452 6 10 
Expected return on plan assets
(871)(814)(5)(4)
Amortization of prior service cost (credit)
(42)13 (1)(1)
Recognized actuarial net loss (gain)
109 83 (2)(3)
Net settlement, curtailment and special termination benefit loss3 27 — — 
Non-service pension (income) expense(488)(239)(2)2 
Total net periodic benefit (income) expense$(357)$(97)$— $4 
 
Pension Benefits
Six Months Ended June 30,
PRB
Six Months Ended June 30,
(dollars in millions)2021202020212020
Operating expense
Service cost
$262 $179 $4 $3 
Non-operating expense
Interest cost625 705 12 16 
Expected return on plan assets(1,739)(1,335)(10)(5)
Amortization of prior service cost (credit)
(84)26 (2)(2)
Recognized actuarial net loss (gain)
218 169 (4)(6)
Net settlement, curtailment and special termination benefit loss3 27 — — 
Non-service pension (income) expense(977)(408)(4)3 
Total net periodic benefit (income) expense$(715)$(229)$— $6 
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)June 30, 2021December 31, 2020
Marketable securities held in trusts$908 $881