Postretirement Benefit Plans

9 Months Ended

Oct. 02, 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 October 2, 2020				Three Quarters Ended October 2, 2020
(In millions)	Pension		Other Benefits		Pension		Other Benefits
Net periodic benefit income
Service cost	$	17	$	—	$	49	$	1
Interest cost	68		3		205		7
Expected return on plan assets	(158)		(5)		(473)		(15)
Amortization of net actuarial loss (gain)	2		(1)		7		(2)
Amortization of prior service credit	(7)		—		(21)		—
Contractual termination benefits(1)	—		—		1		—
Total net periodic benefit income	$	(78)	$	(3)	$	(232)	$	(9)

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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 September 27, 2019				Three Quarters Ended September 27, 2019
(In millions)	Pension		Other Benefits		Pension		Other Benefits
Net periodic benefit income
Service cost	$	21	$	1	$	39	$	1
Interest cost	76		2		180		6
Expected return on plan assets	(157)		(5)		(348)		(13)
Amortization of net actuarial gain	—		(1)		—		(4)
Effect of curtailments or settlements(1)	5		—		6		—
Total net periodic benefit income	$	(55)	$	(3)	$	(123)	$	(10)

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(1)During the quarter ended September 27, 2019, we recognized a $5 million settlement loss resulting from the full payout of the liabilities of a non-qualified benefit plan due to the change in control provisions.

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 contributed $327 million to our qualified defined benefit pension plans during the quarter ended September 27, 2019, including a $302 million voluntary contribution to our U.S. qualified defined benefit pension plans. As a result of this voluntary contribution, as well as $700 million of voluntary contributions made in fiscal 2018 and 2017, we made no material contributions to our U.S. qualified defined benefit pension plans during the quarter and three quarters ended October 2, 2020 and are not required to make any contributions to these plans during the remainder of fiscal 2020.