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Segment Financial Data | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Segment Financial Data | SEGMENT FINANCIAL DATA Our operations for the periods presented herein are classified into four principal segments. The segments are generally determined based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services. Otis products include elevators, escalators, moving walkways and service sold to customers in the commercial, residential and infrastructure property sectors around the world. Carrier products and related services include HVAC and refrigeration systems, building controls and automation, fire and special hazard suppression systems and equipment, security monitoring and rapid response systems, provided to a diversified international customer base principally in the industrial, commercial and residential property and commercial transportation sectors. Pratt & Whitney products include commercial, military, business jet and general aviation aircraft engines, parts and services sold to a diversified customer base, including international and domestic commercial airlines and aircraft leasing companies, aircraft manufacturers, and U.S. and foreign governments. Pratt & Whitney also provides product support and a full range of overhaul, repair and fleet management services. Collins Aerospace Systems provides technologically advanced aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military and space operations. Products include electric power generation, power management and distribution systems, air data and aircraft sensing systems, engine control systems, intelligence, surveillance and reconnaissance systems, engine components, environmental control systems, fire and ice detection and protection systems, propeller systems, engine nacelle systems, including thrust reversers and mounting pylons, interior and exterior aircraft lighting, aircraft seating and cargo systems, actuation systems, landing systems, including landing gear, wheels and brakes, and space products and subsystems, integrated avionics systems, precision targeting, electronic warfare and range and training systems, flight controls, communications systems, navigation systems, oxygen systems, simulation and training systems, food and beverage preparation, storage and galley systems, lavatory and wastewater management systems. Aftermarket services include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and information management services. We have reported our financial and operational results for the periods presented herein under the four principal segments noted above, consistent with how we have reviewed our business operations for decision-making purposes, resource allocation and performance assessment during 2019. Segment Information. Total sales by segment include intersegment sales, which are generally made at prices approximating those that the selling entity is able to obtain on external sales. Segment information for the years ended December 31 is as follows:
|  | Net Sales |  |  |  |  |  | Operating Profits |  |  |  |
(dollars in millions) |  | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Otis |  | $ | 13,113 |  |  | $ | 12,904 |  |  | $ | 12,341 |  |  | $ | 1,948 |  |  | $ | 1,915 |  |  | $ | 2,002 |
Carrier |  | 18,608 |  |  | 18,922 |  |  | 17,812 |  |  | 2,697 |  |  | 3,777 |  |  | 3,165 |
Pratt & Whitney |  | 20,892 |  |  | 19,397 |  |  | 16,160 |  |  | 1,668 |  |  | 1,269 |  |  | 1,300 |
Collins Aerospace Systems |  | 26,028 |  |  | 16,634 |  |  | 14,691 |  |  | 4,100 |  |  | 2,303 |  |  | 2,191 |
Total segment |  | 78,641 |  |  | 67,857 |  |  | 61,004 |  |  | 10,413 |  |  | 9,264 |  |  | 8,658 |
Eliminations and other |  | (1,595) |  |  | (1,356) |  |  | (1,167) |  |  | (932) |  |  | (236) |  |  | (81) |
General corporate expenses |  | — |  |  | — |  |  | — |  |  | (515) |  |  | (475) |  |  | (439) |
Consolidated |  | $ | 77,046 |  |  | $ | 66,501 |  |  | $ | 59,837 |  |  | $ | 8,966 |  |  | $ | 8,553 |  |  | $ | 8,138 |
|  | Total Assets |  |  |  |  |  | Capital Expenditures |  |  |  |  |  | Depreciation & Amortization |  |  |  |
(dollars in millions) |  | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Otis |  | $ | 9,973 |  |  | $ | 9,374 |  |  | $ | 9,421 |  |  | $ | 145 |  |  | $ | 172 |  |  | $ | 133 |  |  | $ | 337 |  |  | $ | 190 |  |  | $ | 177 |
Carrier |  | 22,789 |  |  | 22,189 |  |  | 22,657 |  |  | 243 |  |  | 263 |  |  | 326 |  |  | 513 |  |  | 357 |  |  | 372 |
Pratt & Whitney |  | 31,271 |  |  | 29,341 |  |  | 26,768 |  |  | 822 |  |  | 866 |  |  | 923 |  |  | 980 |  |  | 852 |  |  | 672 |
Collins Aerospace Systems |  | 74,049 |  |  | 73,115 |  |  | 34,567 |  |  | 959 |  |  | 515 |  |  | 527 |  |  | 1,749 |  |  | 883 |  |  | 823 |
Total segment |  | 138,082 |  |  | 134,019 |  |  | 93,413 |  |  | 2,169 |  |  | 1,816 |  |  | 1,909 |  |  | 3,579 |  |  | 2,282 |  |  | 2,044 |
Eliminations and other |  | 1,634 |  |  | 192 |  |  | 3,507 |  |  | 87 |  |  | 86 |  |  | 105 |  |  | 204 |  |  | 151 |  |  | 96 |
Consolidated |  | $ | 139,716 |  |  | $ | 134,211 |  |  | $ | 96,920 |  |  | $ | 2,256 |  |  | $ | 1,902 |  |  | $ | 2,014 |  |  | $ | 3,783 |  |  | $ | 2,433 |  |  | $ | 2,140 |
Geographic External Sales and Operating Profit. Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. U.S. external sales include export sales to commercial customers outside the U.S. and sales to the U.S. Government, commercial and affiliated customers, which are known to be for resale to customers outside the U.S. Long-lived assets are net fixed assets attributed to the specific geographic regions.
|  | External Net Sales |  |  |  |  |  | Operating Profits |  |  |  |  |  | Long-Lived Assets |  |  |  |
(dollars in millions) |  | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
United States Operations |  | $ | 48,288 |  |  | $ | 39,481 |  |  | $ | 33,912 |  |  | $ | 5,505 |  |  | $ | 4,941 |  |  | $ | 4,126 |  |  | $ | 7,498 |  |  | $ | 7,111 |  |  | $ | 5,323 |
International Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Europe |  | 13,664 |  |  | 12,857 |  |  | 11,879 |  |  | 2,476 |  |  | 2,141 |  |  | 1,959 |  |  | 1,889 |  |  | 1,908 |  |  | 1,817 |
Asia Pacific |  | 9,391 |  |  | 8,847 |  |  | 8,770 |  |  | 1,662 |  |  | 1,476 |  |  | 1,491 |  |  | 1,359 |  |  | 1,349 |  |  | 1,113 |
Other |  | 7,298 |  |  | 6,672 |  |  | 6,443 |  |  | 770 |  |  | 706 |  |  | 1,082 |  |  | 1,412 |  |  | 1,363 |  |  | 1,389 |
Eliminations and other |  | (1,595) |  |  | (1,356) |  |  | (1,167) |  |  | (1,447) |  |  | (711) |  |  | (520) |  |  | 597 |  |  | 566 |  |  | 544 |
Consolidated |  | $ | 77,046 |  |  | $ | 66,501 |  |  | $ | 59,837 |  |  | $ | 8,966 |  |  | $ | 8,553 |  |  | $ | 8,138 |  |  | $ | 12,755 |  |  | $ | 12,297 |  |  | $ | 10,186 |
Sales from U.S. operations include export sales as follows:
(dollars in millions) |  | 2019 |  | 2018 |  | 2017
Europe |  | $ | 7,122 |  |  | $ | 6,285 |  |  | $ | 5,273 |
Asia Pacific |  | 6,479 |  |  | 5,429 |  |  | 3,634 |
Other |  | 3,847 |  |  | 2,514 |  |  | 2,217 |
Total |  | $ | 17,448 |  |  | $ | 14,228 |  |  | $ | 11,124 |
Sales by primary geographical market for the year ended December 31, 2019 is as follows:
(dollars in millions) | Otis |  | Carrier |  | Pratt & Whitney |  | Collins Aerospace Systems |  | Total
Primary Geographical Markets |  |  |  |  |  |  |  |  |
United States | $ | 3,589 |  |  | $ | 9,574 |  |  | $ | 16,148 |  |  | $ | 18,977 |  |  | $ | 48,288 |
Europe | 3,919 |  |  | 5,326 |  |  | 498 |  |  | 3,921 |  |  | 13,664 |
Asia Pacific | 4,591 |  |  | 2,811 |  |  | 1,164 |  |  | 825 |  |  | 9,391 |
Other* | 1,014 |  |  | 897 |  |  | 3,082 |  |  | 2,305 |  |  | 7,298 |
Total segment | $ | 13,113 |  |  | $ | 18,608 |  |  | $ | 20,892 |  |  | $ | 26,028 |  |  | $ | 78,641 |
Eliminations and other |  |  |  |  |  |  |  |  |  |  |  |  | (1,595) |
Consolidated |  |  |  |  |  |  |  |  |  |  |  |  | $ | 77,046 |
Sales by primary geographical market for the year ended December 31, 2018 is as follows:
(dollars in millions) | Otis |  | Carrier |  | Pratt & Whitney |  | Collins Aerospace Systems |  | Total
Primary Geographical Markets |  |  |  |  |  |  |  |  |
United States | $ | 3,433 |  |  | $ | 9,402 |  |  | $ | 14,852 |  |  | $ | 11,794 |  |  | $ | 39,481 |
Europe | 4,055 |  |  | 5,710 |  |  | 594 |  |  | 2,498 |  |  | 12,857 |
Asia Pacific | 4,354 |  |  | 2,849 |  |  | 1,277 |  |  | 367 |  |  | 8,847 |
Other* | 1,062 |  |  | 961 |  |  | 2,674 |  |  | 1,975 |  |  | 6,672 |
Total segment | $ | 12,904 |  |  | $ | 18,922 |  |  | $ | 19,397 |  |  | $ | 16,634 |  |  | $ | 67,857 |
Eliminations and other |  |  |  |  |  |  |  |  | (1,356) |
Consolidated |  |  |  |  |  |  |  |  | $ | 66,501 |
*Other includes sales to other regions as well as intersegment sales. Segment sales disaggregated by product type and product versus service for the year ended December 31, 2019 are as follows:
(dollars in millions) | Otis |  | Carrier |  | Pratt & Whitney |  | Collins Aerospace Systems |  | Total
Product Type |  |  |  |  |  |  |  |  |
Commercial and industrial, non aerospace | $ | 13,113 |  |  | $ | 18,608 |  |  | $ | 102 |  |  | $ | 51 |  |  | $ | 31,874 |
Commercial aerospace | — |  |  | — |  |  | 14,516 |  |  | 19,005 |  |  | 33,521 |
Military aerospace | — |  |  | — |  |  | 6,274 |  |  | 6,972 |  |  | 13,246 |
Total segment | $ | 13,113 |  |  | $ | 18,608 |  |  | $ | 20,892 |  |  | $ | 26,028 |  |  | $ | 78,641 |
Eliminations and other |  |  |  |  |  |  |  |  | (1,595) |
Consolidated |  |  |  |  |  |  |  |  | $ | 77,046 |
Sales Type |  |  |  |  |  |  |  |  |
Product | $ | 5,669 |  |  | $ | 15,360 |  |  | $ | 12,977 |  |  | $ | 21,440 |  |  | $ | 55,446 |
Service | 7,444 |  |  | 3,248 |  |  | 7,915 |  |  | 4,588 |  |  | 23,195 |
Total segment | $ | 13,113 |  |  | $ | 18,608 |  |  | $ | 20,892 |  |  | $ | 26,028 |  |  | $ | 78,641 |
Eliminations and other |  |  |  |  |  |  |  |  | (1,595) |
Consolidated |  |  |  |  |  |  |  |  | $ | 77,046 |
Segment sales disaggregated by product type and product versus service for the year ended December 31, 2018 are as follows:
(dollars in millions) | Otis |  | Carrier |  | Pratt & Whitney |  | Collins Aerospace Systems |  | Total
Product Type |  |  |  |  |  |  |  |  |
Commercial and industrial, non aerospace | $ | 12,904 |  |  | $ | 18,922 |  |  | $ | 55 |  |  | $ | 60 |  |  | $ | 31,941 |
Commercial aerospace | — |  |  | — |  |  | 14,027 |  |  | 12,564 |  |  | 26,591 |
Military aerospace | — |  |  | — |  |  | 5,315 |  |  | 4,010 |  |  | 9,325 |
Total segment | $ | 12,904 |  |  | $ | 18,922 |  |  | $ | 19,397 |  |  | $ | 16,634 |  |  | $ | 67,857 |
Eliminations and other |  |  |  |  |  |  |  |  | (1,356) |
Consolidated |  |  |  |  |  |  |  |  | $ | 66,501 |
Sales Type |  |  |  |  |  |  |  |  |
Product | $ | 5,636 |  |  | $ | 15,682 |  |  | $ | 11,410 |  |  | $ | 13,915 |  |  | $ | 46,643 |
Service | 7,268 |  |  | 3,240 |  |  | 7,987 |  |  | 2,719 |  |  | 21,214 |
Total segment | $ | 12,904 |  |  | $ | 18,922 |  |  | $ | 19,397 |  |  | $ | 16,634 |  |  | $ | 67,857 |
Eliminations and other |  |  |  |  |  |  |  |  | (1,356) |
Consolidated |  |  |  |  |  |  |  |  | $ | 66,501 |
Major Customers. Net Sales include sales under prime contracts and subcontracts to the U.S. Government, primarily related to Pratt & Whitney and Collins Aerospace Systems products, as follows:
(dollars in millions) |  | 2019 |  | 2018 |  | 2017
Pratt & Whitney |  | $ | 5,614 |  |  | $ | 4,489 |  |  | $ | 3,347 |
Collins Aerospace Systems |  | 4,802 |  |  | 2,779 |  |  | 2,299 |
Other |  | 227 |  |  | 175 |  |  | 152 |
Total |  | $ | 10,643 |  |  | $ | 7,443 |  |  | $ | 5,798 |
Sales to Airbus prior to discounts and incentives, primarily related to Pratt & Whitney and Collins Aerospace Systems products, were approximately $9,879 million, $10,025 million and $8,908 million for the years ended December 31, 2019, 2018 and 2017, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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