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Borrowings and Lines of Credit | 9 Months Ended
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Sep. 30, 2021
Debt Disclosure [Abstract] |
Borrowings and Lines of Credit [Text Block] | Borrowings and Lines of Credit
(dollars in millions) | September 30, 2021 |  | December 31, 2020
Commercial paper | $ | 160 |  |  | $ | 160 |
Other borrowings | 46 |  |  | 87 |
Total short-term borrowings | $ | 206 |  |  | $ | 247 |
As of September 30, 2021, our maximum commercial paper borrowing limit was $5.0 billion as the commercial paper is backed by our $5.0 billion revolving credit agreement. We use our commercial paper borrowings for general corporate purposes, including the funding of potential acquisitions, pension contributions, debt refinancing, dividend payments and repurchases of our common stock. The commercial paper notes outstanding have original maturities of not more than 90 days from the date of issuance. In May 2021, we renewed our $2.0 billion revolving credit agreement, which now expires in May 2022. As of September 30, 2021, we had revolving credit agreements with various banks permitting aggregate borrowings of up to $7.0 billion consisting of a $5.0 billion revolving credit agreement that became available upon completion of the Raytheon Merger on April 3, 2020, and the $2.0 billion revolving credit agreement, and there were no borrowings outstanding under these agreements. In June 2020, we completed an exchange offer of outstanding subsidiary notes with an aggregate principal amount of approximately $8.2 billion in exchange for approximately $8.2 billion of Raytheon Technologies notes with identical interest rates, maturity dates, and redemption provisions. In preparation for and in anticipation of the Separation Transactions and Distributions, the Company, Carrier and Otis issued and the Company repaid long-term debt in the nine months ended September 30, 2020, which are included in the tables below. We had the following issuances of long-term debt during the nine months ended September 30, 2021 and 2020, which is inclusive of issuances made by Carrier and Otis prior to the Distributions, the proceeds of which were primarily used by the Company to extinguish Raytheon Technologies short-term and long-term debt, and therefore, these issuances were treated as a distribution from discontinued operations within financing activities from continuing operations on our Condensed Consolidated Statement of Cash Flows:
Issuance Date | Description of Notes | Aggregate Principal Balance (in millions) |
August 10, 2021 | 1.900% notes due 2031 (1) | $ | 1,000 |  |
| 2.820% notes due 2051 (1) | 1,000 |  |
May 18, 2020 | 2.250% notes due 2030 | 1,000 |  |
| 3.125% notes due 2050 | 1,000 |  |
March 27, 2020 | Term Loan due 2023 (Otis) (2) | 1,000 |  |
| Term Loan due 2023 (Carrier) (2) | 1,750 |  |
February 27, 2020 | 1.923% notes due 2023 (2) | 500 |  |
| LIBOR plus 0.450% floating rate notes due 2023 (2) | 500 |  |
| 2.056% notes due 2025 (2) | 1,300 |  |
| 2.242% notes due 2025 (2) | 2,000 |  |
| 2.293% notes due 2027 (2) | 500 |  |
| 2.493% notes due 2027 (2) | 1,250 |  |
| 2.565% notes due 2030 (2) | 1,500 |  |
| 2.722% notes due 2030 (2) | 2,000 |  |
| 3.112% notes due 2040 (2) | 750 |  |
| 3.377% notes due 2040 (2) | 1,500 |  |
| 3.362% notes due 2050 (2) | 750 |  |
| 3.577% notes due 2050 (2) | 2,000 |  |
(1) The net proceeds received from these debt issuances, along with cash on hand, were used to fund the repayment of our 2.800% and 2.500% notes due 2022. (2) The debt issuances and term loan draws reflect debt incurred by Carrier and Otis. The net proceeds of these issuances were primarily utilized to extinguish Raytheon Technologies short-term and long-term debt in order to not exceed the maximum applicable net indebtedness required by the Raytheon Merger Agreement. We made the following repayments of long-term debt during the nine months ended September 30, 2021 and 2020:
Repayment Date | Description of Notes | Aggregate Principal Balance (in millions)
August 26, 2021 | 2.800% notes due 2022 | $ | 1,100 |
| 2.500% notes due 2022 | 1,100 |
March 1, 2021 | 8.750% notes due 2021 | 250 |
May 19, 2020 | 3.650% notes due 2023 (1)(2) | 410 |
May 15, 2020 | EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value)(2) | 817 |
March 29, 2020 | 4.500% notes due 2020 (1)(2) | 1,250 |
| 1.125% notes due 2021 (€950 million principal value) (1)(2) | 1,082 |
| 1.250% notes due 2023 (€750 million principal value) (1)(2) | 836 |
| 1.150% notes due 2024 (€750 million principal value) (1)(2) | 841 |
| 1.875% notes due 2026 (€500 million principal value) (1)(2) | 567 |
March 3, 2020 | 1.900% notes due 2020 (1)(2) | 1,000 |
| 3.350% notes due 2021 (1)(2) | 1,000 |
| LIBOR plus 0.650% floating rate notes due 2021 (1)(2) | 750 |
| 1.950% notes due 2021 (1)(2) | 750 |
| 2.300% notes due 2022 (1)(2) | 500 |
| 3.100% notes due 2022 (1)(2) | 2,300 |
| 2.800% notes due 2024 (1)(2) | 800 |
March 2, 2020 | 4.875% notes due 2020 (1)(2) | 171 |
February 28, 2020 | 3.650% notes due 2023 (1)(2) | 1,669 |
| 2.650% notes due 2026 (1)(2) | 431 |
(1) In connection with the early repayment of outstanding principal, Raytheon Technologies recorded debt extinguishment costs of $703 million for the nine months ended September 30, 2020, which are classified as discontinued operations in our Condensed Consolidated Statement of Operations as we would not have had to redeem the debt, except for the Separation Transactions. No proceeds of the notes issued May 18, 2020 were used to fund the May 19, 2020 redemption. (2) Extinguishment of Raytheon Technologies short-term and long-term debt in order to not exceed the maximum net indebtedness required by the Raytheon Merger Agreement. Long-term debt consisted of the following:
(dollars in millions) | September 30, 2021 |  | December 31, 2020
8.750% notes due 2021 | $ | — |  |  | $ | 250 |
3.100% notes due 2021 (1) | 250 |  |  | 250 |
2.800% notes due 2022 (1) | — |  |  | 1,100 |
2.500% notes due 2022 (1) (2) | — |  |  | 1,100 |
3.650% notes due 2023 (1) | 171 |  |  | 171 |
3.700% notes due 2023 (1) | 400 |  |  | 400 |
3.200% notes due 2024 (1) | 950 |  |  | 950 |
3.150% notes due 2024 (1) (2) | 300 |  |  | 300 |
3.950% notes due 2025 (1) | 1,500 |  |  | 1,500 |
2.650% notes due 2026 (1) | 719 |  |  | 719 |
3.125% notes due 2027 (1) | 1,100 |  |  | 1,100 |
3.500% notes due 2027 (1) | 1,300 |  |  | 1,300 |
7.200% notes due 2027 (1) (2) | 382 |  |  | 382 |
7.100% notes due 2027 | 141 |  |  | 141 |
6.700% notes due 2028 | 400 |  |  | 400 |
7.000% notes due 2028 (1) (2) | 185 |  |  | 185 |
4.125% notes due 2028 (1) | 3,000 |  |  | 3,000 |
7.500% notes due 2029 (1) | 550 |  |  | 550 |
2.150% notes due 2030 (€500 million principal value) (1) | 585 |  |  | 612 |
2.250% notes due 2030 (1) | 1,000 |  |  | 1,000 |
1.900% notes due 2031 (1) | 1,000 |  |  | — |
5.400% notes due 2035 (1) | 600 |  |  | 600 |
6.050% notes due 2036 (1) | 600 |  |  | 600 |
6.800% notes due 2036 (1) | 134 |  |  | 134 |
7.000% notes due 2038 | 159 |  |  | 159 |
6.125% notes due 2038 (1) | 1,000 |  |  | 1,000 |
4.450% notes due 2038 (1) | 750 |  |  | 750 |
5.700% notes due 2040 (1) | 1,000 |  |  | 1,000 |
4.875% notes due 2040 (1) (2) | 600 |  |  | 600 |
4.700% notes due 2041 (1) (2) | 425 |  |  | 425 |
4.500% notes due 2042 (1) | 3,500 |  |  | 3,500 |
4.800% notes due 2043 (1) | 400 |  |  | 400 |
4.200% notes due 2044 (1) (2) | 300 |  |  | 300 |
4.150% notes due 2045 (1) | 850 |  |  | 850 |
3.750% notes due 2046 (1) | 1,100 |  |  | 1,100 |
4.050% notes due 2047 (1) | 600 |  |  | 600 |
4.350% notes due 2047 (1) | 1,000 |  |  | 1,000 |
4.625% notes due 2048 (1) | 1,750 |  |  | 1,750 |
3.125% notes due 2050 (1) | 1,000 |  |  | 1,000 |
2.820% notes due 2051 (1) | 1,000 |  |  | — |
Other (including finance leases) | 272 |  |  | 292 |
Total principal long-term debt | 30,973 |  |  | 31,470 |
Other (fair market value adjustments, (discounts)/premiums, and debt issuance costs) | 69 |  |  | 106 |
Total long-term debt | 31,042 |  |  | 31,576 |
Less: current portion | 274 |  |  | 550 |
Long-term debt, net of current portion | $ | 30,768 |  |  | $ | 31,026 |
(1) We may redeem these notes at our option pursuant to their terms. (2) Debt assumed in the Raytheon Merger. The average maturity of our long-term debt at September 30, 2021 is approximately 15 years. The average interest expense rate on our total borrowings for the quarters and nine months ended September 30, 2021 and 2020 was as follows:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Average interest expense rate | 4.2 | % |  | 4.2 | % |  | 4.1 | % |  | 4.0 | %

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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