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Employee Benefit Plans | 9 Months Ended
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Sep. 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 and PRB plan results. Contributions to our plans were as follows:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
(dollars in millions) | 2021 |  | 2020 |  | 2021 |  | 2020
U.S. qualified defined benefit plans | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
International defined benefit plans | 8 |  |  | 14 |  |  | 29 |  |  | 56 |
PRB plans | 5 |  |  | 8 |  |  | 9 |  |  | 8 |
Defined contribution plans | 221 |  |  | 228 |  |  | 730 |  |  | 668 |
The amounts recognized in the Condensed Consolidated Balance Sheet consist of:
(dollars in millions) | September 30, 2021 |  | December 31, 2020
Noncurrent pension assets (included in Other assets) | $ | 1,389 |  |  | $ | 424 |
Current pension and PRB liabilities (included in Accrued employee compensation) | 314 |  |  | 314 |
Future pension and postretirement benefit obligations | 9,742 |  |  | 10,342 |
The amounts recognized in Future pension and postretirement benefit obligations consist of:
(dollars in millions) | September 30, 2021 |  | December 31, 2020
Noncurrent pension liabilities | $ | 8,638 |  |  | $ | 9,131 |
Noncurrent PRB liabilities | 1,039 |  |  | 1,072 |
Other pension and PRB related items | 65 |  |  | 139 |
Future pension and postretirement benefit obligations | $ | 9,742 |  |  | $ | 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 September 30, |  | PRB Quarter Ended September 30,
(dollars in millions) | 2021 |  | 2020 |  | 2021 |  | 2020
Operating expense |  |  |  |  |  |  |
Service cost | $ | 131 |  |  | $ | 149 |  |  | $ | 2 |  |  | $ | 2 |
Non-operating expense |  |  |  |  |  |  |
Interest cost | 312 |  |  | 465 |  |  | 6 |  |  | 10 |
Expected return on plan assets | (869) |  |  | (827) |  |  | (5) |  |  | (4) |
Amortization of prior service cost (credit) | (42) |  |  | 13 |  |  | (1) |  |  | (1) |
Recognized actuarial net loss (gain) | 109 |  |  | 86 |  |  | (2) |  |  | (3) |
Net settlement, curtailment and special termination benefit loss | 1 |  |  | 8 |  |  | — |  |  | — |
Non-service pension (income) expense | (489) |  |  | (255) |  |  | (2) |  |  | 2 |
Total net periodic benefit (income) expense | $ | (358) |  |  | $ | (106) |  |  | $ | — |  |  | $ | 4 |
| Pension Benefits Nine Months Ended September 30, |  | PRB Nine Months Ended September 30,
(dollars in millions) | 2021 |  | 2020 |  | 2021 |  | 2020
Operating expense |  |  |  |  |  |  |
Service cost | $ | 393 |  |  | $ | 328 |  |  | $ | 6 |  |  | $ | 5 |
Non-operating expense |  |  |  |  |  |  |
Interest cost | 937 |  |  | 1,170 |  |  | 18 |  |  | 26 |
Expected return on plan assets | (2,608) |  |  | (2,162) |  |  | (15) |  |  | (9) |
Amortization of prior service cost (credit) | (126) |  |  | 39 |  |  | (3) |  |  | (3) |
Recognized actuarial net loss (gain) | 327 |  |  | 255 |  |  | (6) |  |  | (9) |
Net settlement, curtailment and special termination benefit loss | 4 |  |  | 35 |  |  | — |  |  | — |
Non-service pension (income) expense | (1,466) |  |  | (663) |  |  | (6) |  |  | 5 |
Total net periodic benefit (income) expense | $ | (1,073) |  |  | $ | (335) |  |  | $ | — |  |  | $ | 10 |
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) | September 30, 2021 |  | December 31, 2020
Marketable securities held in trusts | $ | 965 |  |  | $ | 881 |

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