XML 41 R24.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Restructuring and Other Costs | 12 Months Ended
--- | ---
Dec. 31, 2019
Restructuring and Related Activities [Abstract] |
Restructuring and Related Activities Disclosure [Text Block] | During 2019, we recorded net pre-tax restructuring costs totaling $425 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:
(dollars in millions) |
Otis | $ | 54 |
Carrier | 126 |
Pratt & Whitney | 133 |
Collins Aerospace Systems | 106 |
Eliminations and other | 6 |
Total | $ | 425 |
Restructuring charges incurred in 2019 primarily relate to actions initiated during 2019 and 2018, and were recorded as follows:
(dollars in millions) |
Cost of sales | $ | 231 |
Selling, general & administrative | 190 |
Non-service pension (benefit) | 4 |
Total | $ | 425 |
2019 Actions. During 2019, we recorded net pre-tax restructuring costs totaling $321 million for restructuring actions initiated in 2019, consisting of $168 million in cost of sales and $153 million in selling, general and administrative expenses. The 2019 actions relate to ongoing cost reduction efforts, including workforce reductions and consolidation of field operations. We are targeting to complete in 2020 and 2021 the majority of the remaining workforce and all facility related cost reduction actions initiated in 2019. No specific plans for significant other actions have been finalized at this time. The following table summarizes the accrual balances and utilization by cost type for the 2019 restructuring actions:
(dollars in millions) | Severance |  |  |  | Facility Exit & Other Costs |  | Total
Net pre-tax restructuring costs | $ | 298 |  |  |  |  | $ | 23 |  |  | $ | 321 |
Utilization, foreign exchange and other costs | (193) |  |  |  |  | (10) |  |  | (203) |
Balance at December 31, 2019 | $ | 105 |  |  |  |  | $ | 13 |  |  | $ | 118 |
The following table summarizes expected, incurred and remaining costs for the 2019 restructuring actions by segment:
(dollars in millions) | Expected Costs |  | Cost Incurred During 2019 |  | Remaining Costs at December 31, 2019
Otis | $ | 65 |  |  | $ | (45) |  |  | $ | 20 |
Carrier | 120 |  |  | (110) |  |  | 10 |
Pratt & Whitney | 133 |  |  | (133) |  |  | — |
Collins Aerospace Systems | 120 |  |  | (27) |  |  | 93 |
Eliminations and other | 6 |  |  | (6) |  |  | — |
Total | $ | 444 |  |  | $ | (321) |  |  | $ | 123 |
2018 Actions. During 2019, we recorded net pre-tax restructuring costs totaling $46 million for restructuring actions initiated in 2018, consisting of $21 million in cost of sales and $25 million in selling, general and administrative expenses. The 2018 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. The following table summarizes the accrual balances and utilization by cost type for the 2018 restructuring actions:
(dollars in millions) | Severance |  |  |  | Facility Exit & Other Costs |  | Total
Restructuring accruals at January 1, 2019 | $ | 115 |  |  |  |  | $ | 23 |  |  | $ | 138 |
Net pre-tax restructuring costs | 38 |  |  |  |  | 8 |  |  | 46 |
Utilization, foreign exchange and other costs | (132) |  |  |  |  | (29) |  |  | (161) |
Balance at December 31, 2019 | $ | 21 |  |  |  |  | $ | 2 |  |  | $ | 23 |
The following table summarizes expected, incurred and remaining costs for the 2018 programs by segment:
(dollars in millions) | Expected Costs |  | Costs Incurred During 2018 |  | Costs Incurred During 2019 |  | Remaining Costs at December 31, 2019
Otis | $ | 57 |  |  | $ | (48) |  |  | $ | (7) |  |  | $ | 2 |
Carrier | 80 |  |  | (64) |  |  | (16) |  |  | — |
Pratt & Whitney | 3 |  |  | (3) |  |  | — |  |  | — |
Collins Aerospace Systems | 111 |  |  | (87) |  |  | (23) |  |  | 1 |
Eliminations and other | 7 |  |  | (5) |  |  | — |  |  | 2 |
Total | $ | 258 |  |  | $ | (207) |  |  | $ | (46) |  |  | $ | 5 |
2017 and Prior Actions. During 2019, we recorded net pre-tax restructuring costs totaling $58 million for restructuring actions initiated in 2017 and prior. As of December 31, 2019, we have approximately $67 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