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Employee Benefit Plans (Tables)
 9 Months Ended
Sep. 30, 2020
Retirement Benefits [Abstract]  
Schedule of Defined Benefit Plans Disclosures Contributions to our plans were as follows:
 Quarter Ended September 30,Nine Months Ended September 30,
(dollars in millions)2020201920202019
Defined benefit plans$8 $7 $28 $25 
Defined contribution plans12 10 42 31 
Multi-employer pension plans46 39 119 117 

The following table illustrates the components of net periodic benefit cost for our defined benefit pension plans:

 Quarter Ended September 30,Nine Months Ended September 30,
(dollars in millions)2020201920202019
Service cost$10 $8 $30 $25 
Interest cost4 5 12 16 
Expected return on plan assets(6)(5)(19)(17)
Amortization of prior service credit— — — (1)
Recognized actuarial net loss4 2 11 7 
Net settlement and curtailment loss— — — 1 
Total net periodic benefit cost$12 $10 $34 $31 
The amounts for pension and postretirement expenses for the quarter and nine months ended September 30, 2020 were as follows:
Quarter Ended September 30,Nine Months Ended September 30,
(dollars in millions)
2020201920202019
Service cost$— $4 $1 $11 
Non-service pension benefit— (20)(5)(45)
Total$— $(16)$(4)$(34)
Share-based Payment Arrangement, Expensed and Capitalized, Amount
Stock-based compensation expense and the resulting tax benefits were as follows:

Quarter Ended September 30,Nine Months Ended September 30,
(dollars in millions)
2020201920202019
Stock-based compensation expense (Share Based)* $17 $12 $44 $29 
Stock-based compensation expense (Cash Based)2 4 (6)7 
Total gross stock-based compensation expense$19 $16 $38 $36 
Less: future tax benefit3 1 7 3 
Stock-based compensation expense, net of tax$16 $15 $31 $33 

* Includes Directors compensation of approximately $2 million in 2020
Share-based Payment Arrangement, Activity
A summary of the transactions under the new Otis Plan for the nine months ended September 30, 2020 follows:

Stock Appreciation RightsRestricted Share UnitsPerformance Share UnitsStock Options
(shares in thousands)SharesAverage Price*SharesAverage Price**SharesAverage Price**SharesAverage Price**
Outstanding at:
March 31, 2020— $— — $— — $— — $— 
Converted from UTC1
12,782 60.161,376 68.1438 67.53520 53.99
Granted2
172 52.39593 54.045 65.45— —
Exercised / Earned2
(215)46.23(109)59.69(1)65.90(10)45.88
Cancelled(42)70.54(7)70.26— —— —
September 30, 202012,697 $60.26 1,853 $64.09 42 $67.33 510 $54.15 

*weighted-average grant price
**weighted-average grant fair value
1 Converted shares include Carrier and Legacy UTC employees receiving Otis awards on spin
2 Includes annual retainer awards issued to the Board of Directors
Share-based Compensation Arrangements by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest
The following table summarizes information about equity awards outstanding that are vested and expected to vest and equity awards outstanding that are exercisable at September 30, 2020:

Equity Awards Vested and Expected to VestEquity Awards That Are Exercisable
(shares in thousands; aggregate intrinsic value in millions)AwardsAverage Price*Aggregate Intrinsic ValueRemaining Term**AwardsAverage Price*Aggregate Intrinsic ValueRemaining Term**
Stock Options/Stock Appreciation Rights13,026$59.83 $78 5.7 years8,389$53.56 $76 4.2 years
Performance Share Units/Restricted Stock1,805—$113 2.0 years

*weighted-average grant price per share
**weighted-average contractual remaining term in years
Share-based Compensation Arrangements by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest
The following table summarizes information about equity awards outstanding that are vested and expected to vest and equity awards outstanding that are exercisable at September 30, 2020:

Equity Awards Vested and Expected to VestEquity Awards That Are Exercisable
(shares in thousands; aggregate intrinsic value in millions)AwardsAverage Price*Aggregate Intrinsic ValueRemaining Term**AwardsAverage Price*Aggregate Intrinsic ValueRemaining Term**
Stock Options/Stock Appreciation Rights13,026$59.83 $78 5.7 years8,389$53.56 $76 4.2 years
Performance Share Units/Restricted Stock1,805—$113 2.0 years

*weighted-average grant price per share
**weighted-average contractual remaining term in years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable
The following table summarizes information about equity awards outstanding that are vested and expected to vest and equity awards outstanding that are exercisable at September 30, 2020:

Equity Awards Vested and Expected to VestEquity Awards That Are Exercisable
(shares in thousands; aggregate intrinsic value in millions)AwardsAverage Price*Aggregate Intrinsic ValueRemaining Term**AwardsAverage Price*Aggregate Intrinsic ValueRemaining Term**
Stock Options/Stock Appreciation Rights13,026$59.83 $78 5.7 years8,389$53.56 $76 4.2 years
Performance Share Units/Restricted Stock1,805—$113 2.0 years

*weighted-average grant price per share
**weighted-average contractual remaining term in years