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Acquisitions, Dispositions, Goodwill and Intangible Assets (Tables) | 9 Months Ended
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Sep. 30, 2021
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] |
Schedule of Goodwill [Table Text Block] | Changes in our goodwill balances for the nine months ended September 30, 2021 were as follows:
(dollars in millions) | Balance as of January 1, 2021(1) |  | Acquisitions and Divestitures(2) |  |  |  | Foreign Currency Translation and Other |  | Balance as of September 30, 2021
Collins Aerospace Systems | $ | 31,571 |  |  | $ | — |  |  |  |  | $ | (146) |  |  | $ | 31,425 |
Pratt & Whitney | 1,563 |  |  | — |  |  |  |  | — |  |  | 1,563 |
Raytheon Intelligence & Space(1) (2) | 9,522 |  |  | (397) |  |  |  |  | — |  |  | 9,125 |
Raytheon Missiles & Defense(1) | 11,608 |  |  | 52 |  |  |  |  | (1) |  |  | 11,659 |
Total Segments | 54,264 |  |  | (345) |  |  |  |  | (147) |  |  | 53,772 |
Eliminations and other | 21 |  |  | — |  |  |  |  | (4) |  |  | 17 |
Total | $ | 54,285 |  |  | $ | (345) |  |  |  |  | $ | (151) |  |  | $ | 53,789 |
(1) In connection with the previously announced January 1, 2021 reorganization of RIS and RMD, goodwill of $282 million was allocated from RMD to RIS on a relative fair value basis and is reflected in the revised balances at January 1, 2021. (2) Change in Acquisitions and Divestitures for RIS includes the reclassification of a preliminary estimate of approximately $430 million of goodwill associated with the RIS’s global training and logistics business, as criteria for held for sale accounting treatment was met during the three months ended September 30, 2021.
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | Identifiable intangible assets are comprised of the following:
| September 30, 2021 |  | December 31, 2020
(dollars in millions) | Gross Amount |  | Accumulated Amortization |  | Gross Amount |  | Accumulated Amortization
Amortized: |  |  |  |  |  |  |
Patents and trademarks | $ | 48 |  |  | $ | (36) |  |  | $ | 48 |  |  | $ | (35) |
Collaboration assets | 5,269 |  |  | (1,112) |  |  | 5,021 |  |  | (1,024) |
Exclusivity assets | 2,647 |  |  | (317) |  |  | 2,541 |  |  | (295) |
Developed technology and other | 939 |  |  | (407) |  |  | 906 |  |  | (316) |
Customer relationships | 29,956 |  |  | (6,849) |  |  | 30,241 |  |  | (5,262) |
| 38,859 |  |  | (8,721) |  |  | 38,757 |  |  | (6,932) |
Unamortized: |  |  |  |  |  |  |
Trademarks and other | 8,704 |  |  | — |  |  | 8,714 |  |  | — |
Total | $ | 47,563 |  |  | $ | (8,721) |  |  | $ | 47,471 |  |  | $ | (6,932) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The following is the expected amortization of intangible assets for the years 2021 through 2026.
(dollars in millions) |  | Remaining 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026
Amortization expense |  | $ | 630 |  |  | $ | 1,936 |  |  | $ | 2,035 |  |  | $ | 2,142 |  |  | $ | 2,025 |  |  | $ | 1,939 |
Raytheon Company [Member] |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] |
Schedule of Noncash or Part Noncash Acquisitions | Total consideration is calculated as follows:
(dollars in millions) | Amount
Fair value of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards | $ | 33,067 |
Fair value attributable to pre-merger service for replacement equity awards | 99 |
Total merger consideration | $ | 33,166 |
The fair value of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards is calculated as follows:
(dollars and shares in millions, except per share amounts and exchange ratio) | Amount
Number of Raytheon Company common shares outstanding as of April 3, 2020 | 277.3
Number of Raytheon Company stock awards vested as a result of the Raytheon Merger (1) | 0.4
Total outstanding shares of Raytheon Company common stock and equity awards entitled to merger consideration | 277.7
Exchange ratio (2) | 2.3348
Shares of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards | 648.4
Price per share of RTC common stock (3) | $ | 51.00 |
Fair value of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards | $ | 33,067 |
(1) Represents Raytheon Company stock awards that vested as a result of the Raytheon Merger, which is considered a “change in control” for purposes of the Raytheon 2010 Stock Plan. Certain Raytheon Company restricted stock awards and Raytheon Company restricted stock unit (RSU) awards, issued under the Raytheon 2010 Stock Plan vested on an accelerated basis as a result of the Raytheon Merger. Such vested awards were converted into the right to receive RTC common stock determined as the product of (1) the number of vested awards, and (2) the exchange ratio. (2) The exchange ratio is equal to 2.3348 shares of UTC common stock for each share of Raytheon Company common stock in accordance with the Raytheon Merger Agreement. (3) The price per share of RTC common stock is based on the RTC opening stock price as of April 3, 2020.
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The final purchase price allocation, net of cash acquired, for the acquisition was as follows:
(dollars in millions) |
Cash and cash equivalents | $ | 3,208 |
Accounts receivable, net | 1,997 |
Contract assets | 6,023 |
Inventory, net | 705 |
Other assets, current | 940 |
Fixed assets, net | 4,745 |
Operating lease right-of-use assets | 950 |
Intangible assets, net: | 19,130 |
Customer relationships | 12,900 |
Tradenames/trademarks | 5,430 |
Developed technology | 800 |
Other assets | 1,218 |
Total identifiable assets acquired | 38,916 |
Accounts payable | 1,477 |
Accrued employee compensation | 1,492 |
Other accrued liabilities | 1,921 |
Contract liabilities | 3,002 |
Long-term debt, including current portion | 4,700 |
Operating lease liabilities, non-current portion | 738 |
Future pension and postretirement benefit obligation | 11,607 |
Other long-term liabilities | 2,368 |
Total liabilities acquired | 27,305 |
Total identifiable net assets | 11,611 |
Goodwill | 21,589 |
Redeemable noncontrolling interest | (34) |
Total consideration transferred | $ | 33,166 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The intangible assets included above consist of the following:
(dollars in millions) | Fair Value | Useful Life
Acquired customer relationships | $ | 12,900 |  | 25 years
Acquired tradenames | 5,430 |  | Indefinite
Acquired developed technology | 800 |  | 5 to 7 years
Total identifiable intangible assets | $ | 19,130 |  |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | The results below reflect Raytheon Technologies on a continuing operations basis, in order to more accurately represent the structure of Raytheon Technologies after completion of the Separation Transactions, the Distributions and the Raytheon Merger.
|  |  | Quarter Ended |  |  |  | Nine Months Ended
(dollars in millions, except per share amounts) |  |  | September 30, 2020 |  |  |  | September 30, 2020
Net sales |  |  | $ | 14,747 |  |  |  |  | $ | 47,668 |
Income (loss) from continuing operations attributable to common shareowners |  |  | 174 |  |  |  |  | (2,328) |
Basic earnings (loss) per share of common stock from continuing operations |  |  | $ | 0.12 |  |  |  |  | $ | (1.54) |
Diluted earnings (loss) per share of common stock from continuing operations |  |  | 0.11 |  |  |  |  | (1.54) |
The unaudited supplemental pro-forma data above includes the following significant adjustments made to account for certain costs which would have been incurred if the acquisition had been completed on January 1, 2019, as adjusted for the applicable tax impact. As the merger was completed on April 3, 2020, the pro-forma adjustments in the table below only include the required adjustments through April 3, 2020.
|  |  | Quarter Ended |  |  |  | Nine Months Ended
(dollars in millions) |  |  | September 30, 2020 |  |  |  | September 30, 2020
Amortization of acquired Raytheon Company intangible assets, net (1) |  |  | $ | — |  |  |  |  | $ | (270) |
Amortization of fixed asset fair value adjustment (2) |  |  | — |  |  |  |  | (9) |
Utilization of contractual customer obligation (3) |  |  | — |  |  |  |  | 8 |
Deferred revenue fair value adjustment (4) |  |  | — |  |  |  |  | (4) |
Adjustment to non-service pension (income) expense (5) |  |  | — |  |  |  |  | 239 |
RTC/Raytheon fees for advisory, legal, accounting services (6) |  |  | 23 |  |  |  |  | 119 |
Adjustment to interest expense related to the Raytheon Merger, net (7) |  |  | — |  |  |  |  | 9 |
Elimination of deferred commission amortization (8) |  |  | — |  |  |  |  | 5 |
|  |  | $ | 23 |  |  |  |  | $ | 97 |
(1) Reflects the additional amortization of the acquired Raytheon Company’s intangible assets recognized at fair value in purchase accounting and eliminates the historical Raytheon Company intangible asset amortization expense. (2) Reflects the amortization of the fixed asset fair value adjustment as of the acquisition date. (3) Reflects the additional amortization of liabilities recognized for certain acquired loss making contracts as of the acquisition date. (4) Reflects the difference between prepayments related to extended arrangements and the fair value of the assumed performance obligations as they are satisfied. (5) Represents the elimination of unamortized prior service costs and actuarial losses, as a result of fair value purchase accounting. (6) Reflects the elimination of transaction-related fees incurred by RTC and Raytheon Company in connection with the Raytheon Merger and assumes all of the fees were incurred during the first quarter of 2019. (7) Reflects the amortization of the fair market value adjustment related to Raytheon Company. (8) Reflects the elimination of amortization recognized on deferred commissions that are eliminated in purchase accounting.

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