XML 21 R10.htm IDEA: XBRL DOCUMENT
v3.20.2

Discontinued Operations and Disposal Groups | 12 Months Ended
--- | ---
Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract] |
Disposal Groups, Including Discontinued Operations, Disclosure | DISCONTINUED OPERATIONSOn April 2, 2020, Carrier and Otis entered into a Separation and Distribution Agreement with UTC (since renamed Raytheon Technologies Corporation), pursuant to which, among other things, UTC agreed to separate into three independent, publicly traded companies – UTC, Otis and Carrier and distribute all of the outstanding common stock of Carrier and Otis to UTC shareowners who held shares of U TC common stock as of the close of business on March 19, 2020. The Separation Transactions were completed on April 3, 2020. Carrier and Otis are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Income (loss) from discontinued operations is as follows:
|  | Year Ended December 31 |  |  |  |
(dollars, in millions) |  | 2019 |  | 2018 |  | 2017
Otis |  | $ | 1,033 |  |  | $ | 1,213 |  |  | $ | 1,123 |
Carrier |  | 1,698 |  |  | 2,840 |  |  | 2,116 |
Separation related transactions (1) |  | (704) |  |  | — |  |  | — |
Income (loss) from discontinued operations |  | $ | 2,027 |  |  | $ | 4,053 |  |  | $ | 3,239 |
(1) Reflects unallocable transaction costs incurred by the Company primarily related to professional services costs pertaining to the Separation Transactions and the establishment of Otis and Carrier as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges related to separation activities. The following summarized financial information related to discontinued operations has been reclassified from Income from continuing operations and included in Income (loss) from discontinued operations:
|  | Year Ended December 31 |  |  |  |
(dollars, in millions) |  | 2019 |  | 2018 |  | 2017
Otis |  |  |  |  |  |
Product sales |  | $ | 5,669 |  |  | $ | 5,636 |  |  | $ | 5,498 |
Service sales |  | 7,444 |  |  | 7,268 |  |  | 6,843 |
Cost of products sold |  | 4,656 |  |  | 4,624 |  |  | 4,392 |
Cost of services sold |  | 4,635 |  |  | 4,568 |  |  | 4,220 |
Research and development |  | 163 |  |  | 185 |  |  | 187 |
Selling, general and administrative expense |  | 1,906 |  |  | 1,636 |  |  | 1,583 |
Other (expense) income, net |  | (40) |  |  | 26 |  |  | 37 |
Non-operating expense, net |  | 4 |  |  | (18) |  |  | (4) |
Income from discontinued operations, before income taxes |  | 1,709 |  |  | 1,935 |  |  | 2,000 |
Income tax expense |  | 525 |  |  | 561 |  |  | 704 |
Income from discontinued operations |  | 1,184 |  |  | 1,374 |  |  | 1,296 |
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations |  | 151 |  |  | 161 |  |  | 173 |
Income from discontinued operations attributable to common shareowners |  | $ | 1,033 |  |  | $ | 1,213 |  |  | $ | 1,123 |
Carrier |  |  |  |  |  |
Product sales |  | $ | 15,337 |  |  | $ | 15,657 |  |  | $ | 14,744 |
Service sales |  | 3,247 |  |  | 3,239 |  |  | 3,039 |
Cost of products sold |  | 10,878 |  |  | 11,047 |  |  | 10,447 |
Cost of services sold |  | 2,298 |  |  | 2,281 |  |  | 2,154 |
Research and development |  | 400 |  |  | 399 |  |  | 364 |
Selling, general and administrative expense |  | 2,888 |  |  | 2,566 |  |  | 2,459 |
Other income (expense), net |  | 246 |  |  | 1,156 |  |  | 794 |
Non-operating (income) expense, net |  | (43) |  |  | (82) |  |  | (88) |
Income from discontinued operations, before income taxes |  | 2,409 |  |  | 3,841 |  |  | 3,241 |
Income tax expense |  | 672 |  |  | 967 |  |  | 1,085 |
Income from discontinued operations |  | 1,737 |  |  | 2,874 |  |  | 2,156 |
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations |  | 39 |  |  | 34 |  |  | 40 |
Income from discontinued operations attributable to common shareowners |  | $ | 1,698 |  |  | $ | 2,840 |  |  | $ | 2,116 |
Separation related transactions (1) |  |  |  |  |  |
Selling, general and administrative expense |  | 16 |  |  | $ | — |  |  | $ | — |
Other (expense) income, net |  | $ | (11) |  |  |  |  |
Loss from discontinued operations, before income taxes |  | (27) |  |  | — |  |  | — |
Income tax (benefit) expense |  | 677 |  |  | — |  |  | — |
Income (loss) from discontinued operations, net of tax |  | (704) |  |  | — |  |  | — |
Total Income (loss) from discontinued operations attributable to common shareowners |  | $ | 2,027 |  |  | $ | 4,053 |  |  | $ | 3,239 |
(1) Reflects unallocable transaction costs incurred by the Company primarily related to professional services costs pertaining to the Separation Transactions and the establishment of Otis and Carrier as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges related to separation activities. Selected financial information related to cash flows from discontinued operations is as follows:
| Year Ended December 31 |  |  |  |
(dollars, in millions) | 2019 |  | 2018 |  | 2017
Net cash provided by operating activities | $ | 3,062 |  |  | $ | 3,652 |  |  | $ | 3,349 |
Net cash (used in) provided by investing activities | (416) |  |  | 286 |  |  | 108 |
Net cash used in financing activities | (2,651) |  |  | (4,244) |  |  | (3,431) |
Net cash provided by operating activities includes the net operating cash flows of Otis and Carrier prior to the Separation Transactions, as well as costs incurred by the Company primarily related to professional services costs pertaining to the Separation Transactions and the establishment of Otis and Carrier as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges related to separation activities. Net cash used in financing activities primarily consists of net cash transfers from Otis and Carrier to RTC. The major components of assets and liabilities related to discontinued operations at December 31, 2019 are provided below:
(dollars, in millions) | Otis |  | Carrier |  | Total
Assets |  |  |  |  |
Cash and cash equivalents | $ | 1,446 |  |  | $ | 995 |  |  | $ | 2,441 |
Accounts receivable, net | 2,899 |  |  | 2,728 |  |  | 5,627 |
Contract assets, current | 530 |  |  | 679 |  |  | 1,209 |
Inventories and contracts in progress, net | 571 |  |  | 1,332 |  |  | 1,903 |
Other assets, current | 213 |  |  | 221 |  |  | 434 |
Future income tax benefits | 355 |  |  | 370 |  |  | 725 |
Fixed assets, net | 747 |  |  | 1,686 |  |  | 2,433 |
Operating lease right-of-use assets | 529 |  |  | 818 |  |  | 1,347 |
Goodwill | 1,647 |  |  | 9,807 |  |  | 11,454 |
Intangible assets, net | 490 |  |  | 1,083 |  |  | 1,573 |
Other assets | 220 |  |  | 2,457 |  |  | 2,677 |
Total assets related to discontinued operations | $ | 9,647 |  |  | $ | 22,176 |  |  | $ | 31,823 |
Liabilities and Redeemable Noncontrolling Interest |  |  |  |  |
Short-term borrowings | $ | 33 |  |  | $ | 38 |  |  | $ | 71 |
Accounts payable | 1,321 |  |  | 1,682 |  |  | 3,003 |
Accrued liabilities | 1,651 |  |  | 2,889 |  |  | 4,540 |
Contract liabilities, current | 2,288 |  |  | 611 |  |  | 2,899 |
Long-term debt, currently due | 1 |  |  | 237 |  |  | 238 |
Long-term debt | 5 |  |  | 82 |  |  | 87 |
Future pension and postretirement benefit obligations | 560 |  |  | 455 |  |  | 1,015 |
Operating lease liabilities | 383 |  |  | 668 |  |  | 1,051 |
Other long-term liabilities (1) | 514 |  |  | 1,025 |  |  | 1,539 |
Total liabilities related to discontinued operations | $ | 6,756 |  |  | $ | 7,687 |  |  | $ | 14,443 |
(1) Amounts include a deferred tax jurisdictional netting adjustment of $145 million. The major components of assets and liabilities related to discontinued operations at December 31, 2018 are provided below:
(dollars, in millions) | Otis |  | Carrier |  | Total
Assets |  |  |  |  |
Cash and cash equivalents | $ | 1,329 |  |  | $ | 1,130 |  |  | $ | 2,459 |
Accounts receivable, net | 2,764 |  |  | 2,883 |  |  | 5,647 |
Contract assets, current | 661 |  |  | 450 |  |  | 1,111 |
Inventories and contracts in progress, net | 640 |  |  | 1,363 |  |  | 2,003 |
Other assets, current | 264 |  |  | 295 |  |  | 559 |
Future income tax benefits | 304 |  |  | 343 |  |  | 647 |
Fixed assets, net | 709 |  |  | 1,681 |  |  | 2,390 |
Goodwill | 1,688 |  |  | 9,835 |  |  | 11,523 |
Intangible assets, net | 569 |  |  | 1,214 |  |  | 1,783 |
Other assets | 169 |  |  | 2,449 |  |  | 2,618 |
Total assets related to discontinued operations | $ | 9,097 |  |  | $ | 21,643 |  |  | $ | 30,740 |
Liabilities and Redeemable Noncontrolling Interest |  |  |  |  |
Short-term borrowings | $ | 27 |  |  | $ | 14 |  |  | $ | 41 |
Accounts payable | 1,334 |  |  | 1,910 |  |  | 3,244 |
Accrued liabilities | 1,462 |  |  | 2,076 |  |  | 3,538 |
Contract liabilities, current | 2,359 |  |  | 612 |  |  | 2,971 |
Long-term debt, currently due | 1 |  |  | 153 |  |  | 154 |
Long-term debt | 4 |  |  | 146 |  |  | 150 |
Future pension and postretirement benefit obligations | 542 |  |  | 426 |  |  | 968 |
Other long-term liabilities | 469 |  |  | 1,093 |  |  | 1,562 |
Total liabilities related to discontinued operations | $ | 6,198 |  |  | $ | 6,430 |  |  | $ | 12,628 |

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

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration