XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.19.1

Restructuring and Other Costs | 3 Months Ended
--- | ---
Mar. 31, 2019
Restructuring and Related Activities [Abstract] |
Restructuring and Other Costs [Text Block] | Restructuring Costs During the quarter ended March 31, 2019, we recorded net pre-tax restructuring costs totaling $112 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:
(dollars in millions) |
Otis | $ | 25 |
Carrier | 33 |
Pratt & Whitney | 14 |
Collins Aerospace Systems | 39 |
Eliminations and other | 1 |
Total | $ | 112 |
Restructuring charges incurred during the quarter ended March 31, 2019 primarily relate to actions initiated during 2019 and 2018, and were recorded as follows:
(dollars in millions) |
Cost of sales | $ | 56 |
Selling, general and administrative | 56 |
Total | $ | 112 |
2019 Actions. During the quarter ended March 31, 2019, we recorded net pre-tax restructuring costs of $73 million, comprised of $28 million in cost of sales and $45 million in selling, general and administrative expenses. The 2019 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field and manufacturing operations. We are targeting to complete the majority of the remaining workforce and facility related cost reduction actions during 2019 and 2020. No specific plans for other significant actions have been finalized at this time. The following table summarizes the accrual balance and utilization for the 2019 restructuring actions for the quarter ended March 31, 2019:
(dollars in millions) | Severance |  | Facility Exit, Lease Termination and Other Costs |  | Total
Net pre-tax restructuring costs | $ | 68 |  |  | $ | 5 |  |  | $ | 73 |
Utilization, foreign exchange and other costs | (15 | ) |  | 10 |  |  | (5 | )
Balance at March 31, 2019 | $ | 53 |  |  | $ | 15 |  |  | $ | 68 |
The following table summarizes expected, incurred and remaining costs for the 2019 restructuring actions by segment:
(dollars in millions) | Expected Costs |  | Costs Incurred Quarter Ended March 31, 2019 |  | Remaining Costs at March 31, 2019
Otis | $ | 27 |  |  | $ | (19 | ) |  | $ | 8 |
Carrier | 40 |  |  | (25 | ) |  | 15 |
Pratt & Whitney | 14 |  |  | (14 | ) |  | — |
Collins Aerospace Systems | 22 |  |  | (14 | ) |  | 8 |
Eliminations and other | 1 |  |  | (1 | ) |  | — |
Total | $ | 104 |  |  | $ | (73 | ) |  | $ | 31 |
2018 Actions. During the quarter ended March 31, 2019, we recorded net pre-tax restructuring costs totaling $23 million for restructuring actions initiated in 2018, including $16 million in cost of sales and $7 million in selling, general and administrative expenses. The 2018 actions relate to ongoing cost reduction efforts, including workforce reductions, consolidation of field and manufacturing operations, and costs to exit legacy programs. The following table summarizes the accrual balances and utilization for the 2018 restructuring actions for the quarter ended March 31, 2019:
(dollars in millions) | Severance |  | Facility Exit, Lease Termination and Other Costs |  | Total
Restructuring accruals at December 31, 2018 | $ | 115 |  |  | $ | 23 |  |  | $ | 138 |
Net pre-tax restructuring costs | 21 |  |  | 2 |  |  | 23 |
Utilization, foreign exchange and other costs | (74 | ) |  | (16 | ) |  | (90 | )
Balance at March 31, 2019 | $ | 62 |  |  | $ | 9 |  |  | $ | 71 |
The following table summarizes expected, incurred and remaining costs for the 2018 restructuring actions by segment:
(dollars in millions) | Expected Costs |  | Costs Incurred in 2018 |  | Costs Incurred Quarter Ended March 31, 2019 |  | Remaining Costs at March 31, 2019
Otis | $ | 58 |  |  | $ | (48 | ) |  | $ | (5 | ) |  | $ | 5 |
Carrier | 107 |  |  | (64 | ) |  | (7 | ) |  | 36 |
Pratt & Whitney | 3 |  |  | (3 | ) |  | — |  |  | — |
Collins Aerospace Systems | 113 |  |  | (87 | ) |  | (11 | ) |  | 15 |
Eliminations and other | 5 |  |  | (5 | ) |  | — |  |  | — |
Total | $ | 286 |  |  | $ | (207 | ) |  | $ | (23 | ) |  | $ | 56 |
2017 and Prior Actions. During the quarter ended March 31, 2019, we recorded net pre-tax restructuring costs totaling $16 million for restructuring actions initiated in 2017 and prior. As of March 31, 2019, we have approximately $103 million of accrual balances remaining related to 2017 and prior actions.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration