Postretirement Benefit Plans

6 Months Ended

Jul. 03, 2020

Retirement Benefits [Abstract]

Postretirement Benefit Plans

Note N — Postretirement Benefit Plans

The following tables provide the components of our net periodic benefit income for our defined benefit plans, including defined benefit pension plans and other postretirement defined benefit plans:

	Quarter Ended July 3, 2020				Two Quarters Ended July 3, 2020
	Pension		Other Benefits		Pension		Other Benefits
	(In millions)
Net periodic benefit income
Service cost	$	16	$	1	$	32	$	1
Interest cost	68		2		137		4
Expected return on plan assets	(157)		(5)		(315)		(10)
Amortization of net actuarial loss (gain)	3		(1)		5		(1)
Amortization of prior service credit	(7)		—		(14)		—
Contractual termination benefits(1)	—		—		1		—
Net periodic benefit income	$	(77)	$	(3)	$	(154)	$	(6)

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(1)Contractual termination benefits related to facility rationalization as part of restructuring activities in connection with the L3Harris Merger integration. See Note E — Restructuring and Other Exit Costs in these Notes for additional information regarding restructuring activities.

	Quarter Ended June 28, 2019				Two Quarters Ended June 28, 2019
	Pension		Other Benefits		Pension		Other Benefits
	(In millions)
Net periodic benefit income
Service cost	$	9	$	(1)	$	18	$	—
Interest cost	52		2		104		4
Expected return on plan assets	(96)		(4)		(191)		(8)
Amortization of net actuarial gain	—		(1)		—		(3)
Effect of curtailments or settlements	1		—		1		—
Net periodic benefit income	$	(34)	$	(4)	$	(68)	$	(7)

The service cost component of net periodic benefit income is included in the “Cost of product sales and services” and “Engineering, selling and administrative expenses” line items in our Condensed Consolidated Statement of Income (Unaudited). The non-service cost components of net periodic benefit income are included in the “Non-operating income” line item in our Condensed Consolidated Statement of Income (Unaudited), except for contractual termination benefits which are included in restructuring in the “Engineering, selling and administrative expenses” line item in our Condensed Consolidated Statement of Income (Unaudited).

We made a $302 million voluntary contribution to our U.S. qualified defined benefit pension plans during the quarter ended September 27, 2019. As a result of this voluntary contribution, as well as $700 million of voluntary contributions made in fiscal 2018 and 2017, we made no contributions to our U.S. qualified defined benefit pension plans during the quarter and two quarters ended July 3, 2020 and the quarter and two quarters ended April 3, 2020. We are also not required to make any contributions to our U.S. qualified defined benefit pension plans during the remainder of fiscal 2020.