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Restructuring Costs | 9 Months Ended
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Sep. 30, 2021
Restructuring and Related Activities [Abstract] |
Restructuring and Other Costs [Text Block] | Restructuring Costs Restructuring costs are generally expensed as incurred. All U.S. government unallowable restructuring costs related to the Raytheon Merger are recorded within Corporate expenses and other unallocated items, as these costs are not included in management’s evaluation of the segments’ performance, and as a result, there are no unallowable restructuring costs at the RIS and RMD segments. During the quarter and nine months ended September 30, 2021, we recorded net pre-tax restructuring costs totaling $19 million and $118 million, respectively, for new and ongoing restructuring actions. We recorded charges in the segments as follows:
(dollars in millions) | Quarter Ended September 30, 2021 |  | Nine Months Ended September 30, 2021
Pratt & Whitney | $ | 2 |  |  | $ | 6 |
Collins Aerospace Systems | 2 |  |  | 32 |
Corporate expenses and other unallocated items | 15 |  |  | 80 |
Total | $ | 19 |  |  | $ | 118 |
Restructuring charges incurred during the quarter and nine months ended September 30, 2021 primarily relate to actions initiated during 2021 and 2020, and were recorded as follows:
(dollars in millions) | Quarter Ended September 30, 2021 |  | Nine Months Ended September 30, 2021
Cost of sales | $ | 4 |  |  | $ | 25 |
Selling, general and administrative | 15 |  |  | 93 |
Total | $ | 19 |  |  | $ | 118 |
2021 Actions. During the quarter ended September 30, 2021, we recorded net pre-tax restructuring costs of $12 million, comprised of $5 million in Selling, general and administrative expenses and $7 million in Cost of sales. During the nine months ended September 30, 2021, we recorded net pre-tax restructuring costs of $113 million, comprised of $81 million in Selling, general and administrative expenses and $32 million in Cost of sales. The 2021 actions primarily consist of severance costs related to ongoing cost reduction efforts, and to a much lesser extent, the exit and consolidation of facilities. The following table summarizes the accrual balance and utilization for the 2021 restructuring actions for the nine months ended September 30, 2021:
(dollars in millions) |  | Nine Months Ended September 30, 2021
Balance at January 1, 2021 |  | $ | — |
Net pre-tax restructuring costs |  | 113 |
Utilization, foreign exchange and other costs |  | (37) |
Balance at September 30, 2021 |  | $ | 76 |
The following table summarizes expected, incurred and remaining costs for the 2021 restructuring actions by segment:
(dollars in millions) | Expected Costs |  | Costs Incurred Quarter Ended March 31, 2021 |  | Costs Incurred Quarter Ended June 30, 2021 |  | Costs Incurred Quarter Ended September 30, 2021 |  | Remaining Costs at September 30, 2021
Pratt & Whitney | $ | 58 |  |  | $ | (20) |  |  | $ | (2) |  |  | $ | (1) |  |  | $ | 35 |
Collins Aerospace Systems | 67 |  |  | (16) |  |  | (3) |  |  | (9) |  |  | 39 |
Corporate expenses and other unallocated items | 62 |  |  | — |  |  | (60) |  |  | (2) |  |  | — |
Total | $ | 187 |  |  | $ | (36) |  |  | $ | (65) |  |  | $ | (12) |  |  | $ | 74 |
We are targeting to complete the majority of the remaining workforce and facility related cost reduction actions during the remainder of 2021 and 2022. 2020 Actions. During the quarter ended September 30, 2021, we recorded a net $1 million of pre-tax restructuring costs for restructuring actions initiated in 2020, comprised of $7 million in Selling, general and administrative expenses and a reversal of $6 million in Cost of sales. During the nine months ended September 30, 2021, we reversed $19 million net pre-tax restructuring costs for restructuring actions initiated in 2020, including a reversal of $5 million in Selling, general and administrative expenses and a reversal of $14 million in Cost of sales. The 2020 actions primarily consist of severance costs principally related to restructuring actions at Pratt & Whitney and Collins Aerospace in response to the impact on our operating results related to the economic environment primarily caused by the COVID-19 pandemic, actions at Corporate related to the Raytheon Merger, and ongoing cost reduction efforts including workforce reductions, and to a lesser extent, consolidation of field operations. The following table summarizes the accrual balances and utilization for the 2020 restructuring actions for the nine months ended September 30, 2021:
(dollars in millions) |  | Nine Months Ended September 30, 2021
Balance at January 1, 2021 |  | $ | 340 |
Net pre-tax restructuring costs |  | (19) |
Utilization, foreign exchange and other costs |  | (245) |
Balance at September 30, 2021 |  | $ | 76 |
The following table summarizes expected, incurred, and remaining costs for the 2020 restructuring actions by segment:
(dollars in millions) | Expected Costs |  | Costs Incurred in 2020 |  | Costs (Incurred) Reversed Quarter Ended March 31, 2021 |  | Costs (Incurred) Reversed Quarter Ended June 30, 2021 |  | Costs (Incurred) Reversed Quarter Ended September 30, 2021 |  | Remaining Costs at September 30, 2021
Pratt & Whitney | $ | 188 |  |  | $ | (205) |  |  | $ | — |  |  | $ | 17 |  |  | $ | — |  |  | $ | — |
Collins Aerospace Systems | 320 |  |  | (333) |  |  | 1 |  |  | 7 |  |  | 12 |  |  | 7 |
Corporate expenses and other unallocated items | 250 |  |  | (232) |  |  | (5) |  |  | — |  |  | (13) |  |  | — |
Total | $ | 758 |  |  | $ | (770) |  |  | $ | (4) |  |  | $ | 24 |  |  | $ | (1) |  |  | $ | 7 |
2019 and Prior Actions. During the quarter and nine months ended September 30, 2021, we had net pre-tax restructuring costs of $6 million and $24 million, respectively, for restructuring actions initiated in 2019 and prior. As of September 30, 2021, we have approximately $28 million of accrual balances remaining related to 2019 and prior actions.

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- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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