Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Incorporation, State or Country Code | DE |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2019 |
Amendment Flag | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Entity Registrant Name | UNITED TECHNOLOGIES CORP /DE/ |
Entity Central Index Key | 0000101829 |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 862,831,280 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Entity Tax Identification Number | 06-0570975 |
City Area Code | 860 |
Local Phone Number | 728-7000 |
Entity Address, Address Line One | 10 Farm Springs Road |
Entity Address, City or Town | Farmington |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06032 |
Entity File Number | 1-812 |
Entity Interactive Data Current | Yes |
Document Quarterly Report | true |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations Condensed Consolidated Statement of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Sales: | ||||
Revenues | $ 19,634 | $ 16,705 | $ 37,999 | $ 31,947 |
Costs and Expenses: | ||||
Research and development | 743 | 589 | 1,471 | 1,143 |
Selling, general and administrative | 2,106 | 1,759 | 4,103 | 3,470 |
Total costs and expenses | 17,262 | 14,770 | 33,694 | 28,315 |
Other income, net | 212 | 941 | 324 | 1,172 |
Operating profit | 2,584 | 2,876 | 4,629 | 4,804 |
Non-service pension cost (benefit) | (216) | (192) | (424) | (383) |
Interest expense, net | 360 | 234 | 791 | 463 |
Income from operations before income taxes | 2,440 | 2,834 | 4,262 | 4,724 |
Income tax expense | 441 | 695 | 838 | 1,217 |
Net Income from operations | 1,999 | 2,139 | 3,424 | 3,507 |
Less: Noncontrolling interest in subsidiaries' earnings from operations | 99 | 91 | 178 | 162 |
Net income attributable to common shareowners | $ 1,900 | $ 2,048 | $ 3,246 | $ 3,345 |
Earnings Per Share of Common Stock - Basic: | ||||
Net income attributable to common shareowners | $ 2.22 | $ 2.59 | $ 3.80 | $ 4.23 |
Earnings Per Share of Common Stock - Diluted: | ||||
Net income attributable to common shareowners | $ 2.20 | $ 2.56 | $ 3.76 | $ 4.18 |
Product [Member] | ||||
Net Sales: | ||||
Revenues | $ 14,033 | $ 11,520 | $ 26,908 | $ 21,778 |
Costs and Expenses: | ||||
Cost of Products and Services Sold | 10,863 | 9,154 | 21,149 | 17,170 |
Service [Member] | ||||
Net Sales: | ||||
Revenues | 5,601 | 5,185 | 11,091 | 10,169 |
Costs and Expenses: | ||||
Cost of Products and Services Sold | $ 3,550 | $ 3,268 | $ 6,971 | $ 6,532 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income from operations | $ 1,999 | $ 2,139 | $ 3,424 | $ 3,507 |
Foreign currency translation adjustments | ||||
Foreign Currency Translation Adjustments, Net of Tax | (423) | (679) | 98 | (140) |
Pension and post-retirement benefit plans | ||||
Pension and Other Postretirement Benefit Plans, Net of Tax | 24 | 80 | 57 | 153 |
Unrealized gain (loss) on available-for-sale securities | ||||
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on Securities Arising During Period | 0 | 0 | 0 | (5) |
Change in unrealized cash flow hedging | ||||
Total unrealized gain (loss) on cash-flow hedging, net of tax | 25 | (186) | 33 | (172) |
Other comprehensive income (loss), net of tax | (374) | (785) | 188 | (164) |
Comprehensive income | 1,625 | 1,354 | 3,612 | 3,343 |
Less: Comprehensive income attributable to noncontrolling interest | 100 | 53 | 182 | 157 |
Comprehensive income attributable to common shareowners | $ 1,525 | $ 1,301 | $ 3,430 | $ 3,186 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Cash and cash equivalents | $ 6,819 | $ 6,152 |
Accounts receivable, net | 13,695 | 14,271 |
Contract assets, current | 4,334 | 3,486 |
Inventory, net | 10,934 | 10,083 |
Other assets, current | 1,276 | 1,511 |
Total Current Assets | 37,058 | 35,503 |
Customer financing assets | 3,293 | 3,023 |
Future income tax benefits | 1,712 | 1,646 |
Fixed assets | 24,689 | 24,084 |
Less: Accumulated depreciation | 12,397 | 11,787 |
Fixed assets, net | 12,292 | 12,297 |
Operating Lease, Right-of-Use Asset | 2,740 | 0 |
Goodwill | 48,358 | 48,112 |
Intangible assets, net | 25,963 | 26,424 |
Other assets | 7,574 | 7,206 |
Total Assets | 138,990 | 134,211 |
Short-term borrowings | 1,139 | 1,469 |
Accounts payable | 11,109 | 11,080 |
Accrued liabilities | 10,753 | 10,223 |
Contract liabilities, current | 6,219 | 5,720 |
Long-term debt currently due | 6,202 | 2,876 |
Total Current Liabilities | 35,422 | 31,368 |
Long-term debt | 37,910 | 41,192 |
Future pension and postretirement benefit obligations | 3,663 | 4,018 |
Operating Lease, Liability, Noncurrent | 2,258 | 0 |
Other long-term liabilities | 16,651 | 16,914 |
Total Liabilities | 95,904 | 93,492 |
Commitments and contingent liabilities (Note 15) | ||
Redeemable noncontrolling interest | 109 | 109 |
Common Stock | 22,718 | 22,514 |
Treasury Stock | 32,549 | 32,482 |
Retained earnings | 60,548 | 57,823 |
Unearned ESOP shares | 71 | 76 |
Accumulated other comprehensive loss | (9,892) | (9,333) |
Total Shareowners' Equity | 40,754 | 38,446 |
Stockholders' Equity Attributable to Noncontrolling Interest | 2,223 | 2,164 |
Total Equity | 42,977 | 40,610 |
Total Liabilities and Equity | $ 138,990 | $ 134,211 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net Income from operations | $ 3,424 | $ 3,507 |
Adjustments to reconcile income from continuing operations to net cash flows provided by operating activities of continuing operations: | ||
Depreciation and amortization | 1,864 | 1,173 |
Deferred income tax provision | 6 | 45 |
Stock compensation cost | 156 | 117 |
Gain on sale of Taylor Company | 0 | 795 |
Change in: | ||
Accounts receivable | (769) | 1,661 |
Contract assets, current | 491 | 617 |
Inventories and contracts in progress | 1,108 | 962 |
Other current assets | (51) | (301) |
Accounts payable and accrued liabilities | (58) | 2,010 |
Contract liabilities, current | 381 | 440 |
Global pension contributions | 79 | 59 |
Canadian Government Settlement | (38) | (221) |
Other operating activities, net | 1,266 | 723 |
Net cash flows provided by operating activities of continuing operations | 3,611 | 2,555 |
Investing Activities of Continuing Operations: | ||
Capital expenditures | 830 | 709 |
Investments in businesses | 32 | 134 |
Dispositions of businesses | 133 | 1,094 |
Increase in customer financing assets | 331 | 344 |
Increase in collaboration intangible assets | 169 | 181 |
Payments (receipts) from settlements of derivative contracts | (61) | (82) |
Other investing activities, net | 49 | 46 |
Net cash flows used in investing activities of continuing operations | (1,217) | (238) |
Financing Activities of Continuing Operations: | ||
Proceeds from Issuance of Long-term Debt | 56 | 2,429 |
Repayments of Long-term Debt | 65 | 2,092 |
(Decrease) increase in short-term borrowings, net | (327) | 642 |
Proceeds from Common Stock issued under employee stock plans | 11 | 6 |
Dividends paid on Common Stock | 1,219 | 1,070 |
Repurchase of Common Stock | 69 | 52 |
Other financing activities, net | (153) | (74) |
Net cash flows used in financing activities of continuing operations | (1,766) | (211) |
Effect of Exchange Rate on Cash and Cash Equivalents [Abstract] | ||
Effect of foreign exchange rate changes on cash and cash equivalents | 16 | (18) |
Net increase (decrease) in cash and cash equivalents | 644 | 2,088 |
Cash and Cash Equivalents, beginning of year | 6,212 | 9,018 |
Cash and Cash Equivalents, end of period | 6,856 | 11,106 |
Restricted Cash | 37 | 38 |
Cash and cash equivalents, end of period | $ 6,819 | $ 11,068 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in Equity Statement - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Deferred Compensation, Share-based Payments [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | ASU 2014-09 [Member] |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 31,421 | |||||||
Stockholders' Equity Attributable to Parent | $ 17,574 | $ (35,596) | $ 55,242 | $ (85) | $ (7,525) | |||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 1,811 | |||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 174 | 3 | 4 | |||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 1 | 1 | ||||||
Treasury Stock, Value, Acquired, Cost Method | 52 | |||||||
Net income attributable to common shareowners | $ 3,345 | 3,345 | ||||||
Dividends, Common Stock | 1,070 | |||||||
Employee Stock Ownership Plan (ESOP), Dividends Paid to ESOP | 35 | |||||||
Noncontrolling Interest, Change in Redemption Value | 0 | (2) | ||||||
Stockholders' Equity, Other | 27 | 5 | $ (480) | |||||
Reclassification to Retained Earnings, current period, ASU 2018-02 adoption impact | 0 | |||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (159) | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 162 | |||||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | (5) | |||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (5) | |||||||
Reclassification from OCI, current period, ASU 2018-02 adoption impact | 0 | |||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 139 | |||||||
Non-controlling interest, decrease from disposition of non-controlling interest | 8 | |||||||
Noncontrolling Interest, Increase from Capital Contributions | 162 | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 1,310,000 | |||||||
Stock Repurchased During Period, Shares | 402 | |||||||
Common Stock, Dividends, Per Share, Declared | $ 1.400 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 32,492 | |||||||
Stockholders' Equity Attributable to Parent | 17,641 | (35,619) | 55,533 | (84) | (6,937) | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 1,958 | |||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 106 | 1 | 3 | |||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 0 | 0 | ||||||
Treasury Stock, Value, Acquired, Cost Method | 27 | |||||||
Net income attributable to common shareowners | $ 2,048 | 2,048 | ||||||
Dividends, Common Stock | 535 | |||||||
Employee Stock Ownership Plan (ESOP), Dividends Paid to ESOP | 17 | |||||||
Noncontrolling Interest, Change in Redemption Value | 0 | 0 | ||||||
Stockholders' Equity, Other | (2) | 5 | 0 | |||||
Reclassification to Retained Earnings, current period, ASU 2018-02 adoption impact | 0 | |||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (747) | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 91 | |||||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | (3) | |||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (38) | |||||||
Reclassification from OCI, current period, ASU 2018-02 adoption impact | 0 | |||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 73 | |||||||
Non-controlling interest, decrease from disposition of non-controlling interest | 0 | |||||||
Noncontrolling Interest, Increase from Capital Contributions | 42 | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 235 | |||||||
Stock Repurchased During Period, Shares | 214 | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.700 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 33,346 | |||||||
Stockholders' Equity Attributable to Parent | 17,747 | (35,645) | 57,027 | (81) | (7,684) | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 1,982 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 40,610 | |||||||
Stockholders' Equity Attributable to Parent | 38,446 | 22,514 | (32,482) | 57,823 | (76) | (9,333) | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 2,164 | 2,164 | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 211 | 4 | 5 | |||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 0 | 1 | ||||||
Treasury Stock, Value, Acquired, Cost Method | 71 | |||||||
Net income attributable to common shareowners | 3,246 | 3,246 | ||||||
Dividends, Common Stock | 1,219 | |||||||
Employee Stock Ownership Plan (ESOP), Dividends Paid to ESOP | 36 | |||||||
Noncontrolling Interest, Change in Redemption Value | (7) | (7) | ||||||
Stockholders' Equity, Other | (4) | 0 | 0 | |||||
Reclassification to Retained Earnings, current period, ASU 2018-02 adoption impact | 745 | |||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 186 | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 178 | |||||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 5 | |||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 4 | |||||||
Reclassification from OCI, current period, ASU 2018-02 adoption impact | $ (745) | (745) | ||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 145 | |||||||
Non-controlling interest, decrease from disposition of non-controlling interest | 0 | |||||||
Noncontrolling Interest, Increase from Capital Contributions | 18 | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 1,827 | |||||||
Stock Repurchased During Period, Shares | 553 | |||||||
Common Stock, Dividends, Per Share, Declared | $ 1.470 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 41,946 | |||||||
Stockholders' Equity Attributable to Parent | 22,564 | (32,511) | 59,279 | (75) | (9,519) | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 2,208 | |||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 154 | 1 | 4 | |||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 0 | (1) | ||||||
Treasury Stock, Value, Acquired, Cost Method | 39 | |||||||
Net income attributable to common shareowners | $ 1,900 | 1,900 | ||||||
Dividends, Common Stock | 610 | |||||||
Employee Stock Ownership Plan (ESOP), Dividends Paid to ESOP | 18 | |||||||
Noncontrolling Interest, Change in Redemption Value | 0 | (11) | ||||||
Stockholders' Equity, Other | 8 | (3) | $ 0 | |||||
Reclassification to Retained Earnings, current period, ASU 2018-02 adoption impact | 0 | |||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (373) | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 99 | |||||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 2 | |||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 1 | |||||||
Reclassification from OCI, current period, ASU 2018-02 adoption impact | 0 | |||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 101 | |||||||
Non-controlling interest, decrease from disposition of non-controlling interest | 0 | |||||||
Noncontrolling Interest, Increase from Capital Contributions | 18 | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 799 | |||||||
Stock Repurchased During Period, Shares | 297 | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.740 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 42,977 | |||||||
Stockholders' Equity Attributable to Parent | 40,754 | $ 22,718 | $ (32,549) | $ 60,548 | $ (71) | $ (9,892) | ||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 2,223 | $ 2,223 |
Introduction to Notes to Conden
Introduction to Notes to Condensed Consolidated Financial Statements (Unaudited) Introduction | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Introduction of Notes to Condensed Consolidated Financial Statements | The Condensed Consolidated Financial Statements at June 30, 2019 and for the quarters and six months ended June 30, 2019 and 2018 are unaudited, but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods. The results reported in these Condensed Consolidated Financial Statements should not necessarily be taken as indicative of results that may be expected for the entire year. The financial information included herein should be read in conjunction with the financial statements and notes in our Annual Report to Shareowners ( 2018 Annual Report) incorporated by reference in our Annual Report on Form 10-K for calendar year 2018 ( 2018 Form 10-K). |
Acquisitions, Dispositions, Goo
Acquisitions, Dispositions, Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Acquisitions, Dispositions, Goodwill and Other Intangible Assets [Text Block] | Acquisitions, Dispositions, Goodwill and Other Intangible Assets Business Acquisitions. During the six months ended June 30, 2019 , our investment in business acquisitions was $32 million , which consisted of small acquisitions at Otis. On June 9, 2019 , UTC entered into a merger agreement with Raytheon Company (“Raytheon”) providing for an all-stock merger of equals transaction. The Raytheon merger agreement provides, among other things, that each share of Raytheon common stock issued and outstanding immediately prior to the closing of the Raytheon merger (except for shares held by Raytheon as treasury stock) will be converted into the right to receive 2.3348 shares of UTC common stock. Upon the closing of the Raytheon merger, Raytheon will become a wholly-owned subsidiary of UTC, and UTC will change its name to Raytheon Technologies Corporation. The Raytheon merger is expected to close in the first half of 2020 and is subject to customary closing conditions, including receipt of required regulatory approvals, the approval of both Raytheon’s and our shareowners, and the completion of UTC's previously announced separation of its Otis and Carrier businesses. On November 26, 2018 , we completed the acquisition of Rockwell Collins (the "Rockwell Merger"), a leader in aviation and high-integrity solutions for commercial and military customers as well as leading-edge avionics, flight controls, aircraft interior and data connectivity solutions. Under the terms of the Rockwell merger agreement, each share of common stock, par value $0.01 per share, of Rockwell Collins issued and outstanding immediately prior to the effective time of the Rockwell Merger (other than shares held by Rockwell Collins, the Company, Riveter Merger Sub Corp or any of their respective wholly owned subsidiaries) was converted into the right to receive (1) $93.33 in cash, without interest, and (2) 0.37525 shares of Company common stock (together, the “Merger Consideration”), less any applicable withholding taxes, with cash paid in lieu of fractional shares. The total aggregate consideration payable in the Rockwell Merger was $15.5 billion in cash ( $14.9 billion net of cash acquired) and 62.2 million shares of Company common stock. In addition, $7.8 billion of Rockwell Collins debt was outstanding at the time of the Rockwell Merger. This equated to a total enterprise value of $30.6 billion , including the $7.8 billion of Rockwell Collins' outstanding debt. (dollars in millions) Amount Cash consideration paid for Rockwell Collins outstanding common stock & equity awards $ 15,533 Fair value of UTC common stock issued for Rockwell Collins outstanding common stock & equity awards 7,960 Total consideration transferred $ 23,493 The cash consideration utilized for the Rockwell Merger was partially financed through the previously disclosed issuance of $11.0 billion aggregate principal notes on August 16, 2018 for net proceeds of $10.9 billion . For the remainder of the cash consideration, we utilized repatriated cash and cash equivalents and cash flow generated from operating activities. Preliminary Allocation of Consideration Transferred to Net Assets Acquired: The following amounts represent the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed from the Rockwell Collins acquisition. The final determination of the fair value of certain assets and liabilities will be completed up to a one year measurement period from the date of acquisition as required by the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805, “Business Combinations”. As of June 30, 2019 , the valuation studies necessary to determine the fair market value of the assets acquired and liabilities assumed are preliminary, including the validation of the underlying cash flows used to determine the fair value of the identified intangible assets. The size and breadth of the Rockwell Collins acquisition necessitates use of the one year measurement period to adequately analyze all the factors used in establishing the asset and liability fair values as of the acquisition date, including, but not limited to, intangible assets, inventory, real property, leases, deferred tax liabilities related to the unremitted earnings of foreign subsidiaries, certain reserves and the related tax impacts of any adjustments. Any potential adjustments could be material in relation to the preliminary values presented below: (dollars in millions) Cash and cash equivalents $ 640 Accounts receivable, net 1,665 Inventory, net 1,511 Contract assets, current 289 Other assets, current 263 Future income tax benefits 37 Fixed assets, net 1,673 Intangible assets: Customer relationships 8,220 Tradenames/trademarks 1,870 Developed technology 600 Other assets 210 Total identifiable assets acquired 16,978 Short-term borrowings 2,254 Accounts payable 515 Accrued liabilities 1,618 Contract liabilities, current 301 Long-term debt 5,530 Future pension and postretirement benefit obligation 502 Other long-term liabilities 3,481 Noncontrolling interest 6 Total liabilities acquired 14,207 Total identifiable net assets 2,771 Goodwill 20,722 Total consideration transferred $ 23,493 In order to allocate the consideration transferred for Rockwell Collins, the fair values of all identifiable assets and liabilities were established. For accounting and financial reporting purposes, fair value is defined under FASB ASC Topic 820, “Fair Value Measurements and Disclosures” as the price that would be received upon sale of an asset or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. Use of different estimates and judgments could yield different results. Fair value adjustments to Rockwell Collins' identified assets and liabilities resulted in an increase in inventory and fixed assets of $282 million and $269 million , respectively. In determining the fair value of identifiable assets acquired and liabilities assumed, a review was conducted for any significant contingent assets or liabilities existing as of the acquisition date. The preliminary assessment did not note any significant contingencies related to existing legal or government action. The fair values of the customer relationship and related program intangible assets, which include the related aerospace program original equipment (OEM) and aftermarket cash flows, were determined by using an “income approach." Under this approach, the net earnings attributable to the asset or liability being measured are isolated using the discounted projected net cash flows. These projected cash flows are isolated from the projected cash flows of the combined asset group over the remaining economic life of the intangible asset or liability being measured. Both the amount and the duration of the cash flows are considered from a market participant perspective. Our estimates of market participant net cash flows considered historical and projected pricing, remaining developmental effort, operational performance, including company specific synergies, aftermarket retention, product life cycles, material and labor pricing, and other relevant customer, contractual and market factors. Where appropriate, the net cash flows are probability-adjusted to reflect the uncertainties associated with the underlying assumptions as well as the risk profile of the net cash flows utilized in the valuation. The probability-adjusted future cash flows are then discounted to present value using an appropriate discount rate. The customer relationship and related program intangible assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of the underlying programs of 10 to 20 years. The developed technology intangible asset is being amortized over the economic pattern of benefit. The fair value of the tradename intangible assets were determined utilizing the relief from royalty method which is a form of the income approach. Under this method, a royalty rate based on observed market royalties is applied to projected revenue supporting the tradename and discounted to present value using an appropriate discount rate. The tradename intangible assets have been determined to have an indefinite life. The intangible assets included above consist of the following: (dollars in millions) Estimated Fair Value Estimated Life Acquired customer relationships $ 8,220 10-20 years Acquired tradenames/trademarks 1,870 Indefinite Acquired developed technology 600 15 years $ 10,690 We also identified customer contractual obligations on certain contracts with economic returns that are lower than could be realized in market transactions as of the acquisition date. We measured these liabilities under the measurement provisions of FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” which is based on the price to transfer the obligation to a market participant at the measurement date, assuming that the liability will remain outstanding in the marketplace. Based on the estimated net cash outflows of the programs plus a reasonable contracting profit margin required to transfer the contracts to market participants, we recorded assumed liabilities of approximately $1,020 million . These liabilities will be liquidated in accordance with the underlying pattern of obligations, as reflected by the expenses incurred on the contracts. Total consumption of the contractual obligation for the next five years is expected to be as follows: $77 million in 2019, $129 million in 2020, $131 million in 2021, $132 million in 2022, and $119 million in 2023. Acquisition-Related Costs: Acquisition-related costs have been expensed as incurred. In the six months ended June 30, 2019 and 2018 , approximately $10 million and $50 million , respectively, of transaction and integration costs have been incurred. These costs were recorded in Selling, general and administrative expenses within the Condensed Consolidated Statement of Operations. Supplemental Pro-Forma Data: Rockwell Collins' results of operations have been included in UTC’s financial statements for the period subsequent to the completion of the acquisition on November 26, 2018. Rockwell Collins contributed sales of approximately $4.6 billion and operating profit of approximately $665 million for the six months ended June 30, 2019 . The following unaudited supplemental pro-forma data presents consolidated information as if the acquisition had been completed on January 1, 2017. The pro-forma results were calculated by combining the results of UTC with the stand-alone results of Rockwell Collins for the pre-acquisition periods, which were adjusted to account for certain costs that would have been incurred during this pre-acquisition period: Quarter Ended June 30, Six Months Ended June 30, (dollars in millions, except per share amounts) 2019 2018 2019 2018 Net sales $ 19,634 $ 18,810 $ 37,994 $ 36,131 Net income attributable to common shareowners $ 1,901 $ 2,266 $ 3,385 $ 3,742 Basic earnings per share of common stock $ 2.22 $ 2.66 $ 3.96 $ 4.39 Diluted earnings per share of common stock $ 2.20 $ 2.63 $ 3.92 $ 4.34 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, 2017, as adjusted for the applicable tax impact. Quarter Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Amortization of inventory and fixed asset fair value adjustment 1 $ — $ (5 ) $ 141 $ (10 ) Amortization of acquired Rockwell Collins intangible assets, net 2 — (53 ) — (106 ) Utilization of contractual customer obligation 3 — 8 — 10 UTC/Rockwell Collins fees for advisory, legal, accounting services 4 1 17 3 43 Interest expense incurred on acquisition financing, net 5 — (76 ) — (152 ) Elimination of capitalized pre-production engineering amortization 6 — 17 — 32 Adjustment to net periodic pension cost 7 — 11 — 22 Adjustment to reflect the adoption of ASC 606 8 — 29 — 58 Elimination of entities held for sale 9 — (5 ) (5 ) (12 ) $ 1 $ (57 ) $ 139 $ (115 ) 1 Reflects the elimination of the inventory step-up amortization recorded by UTC in 2019 as this would have been completed within the first two quarters of 2017. Additionally, this adjustment reflects the amortization of the fixed asset fair value adjustment as of the acquisition date. 2 Reflects the additional amortization of the acquired Rockwell Collins' intangible assets recognized at fair value in purchase accounting and eliminates the historical Rockwell Collins intangible asset amortization expense. 3 Reflects the additional amortization of liabilities recognized for acquired contracts with terms less favorable than could be realized in market transactions as of the acquisition date and eliminates Rockwell Collins historical amortization of these liabilities. 4 Reflects the elimination of transaction-related fees incurred by UTC and Rockwell Collins in connection with the acquisition and assumes all of the fees were incurred during the first quarter of 2017. 5 Reflects the additional interest expense incurred on debt to finance our acquisition of Rockwell Collins and reduces interest expense for the debt fair value adjustment which would have been amortized. 6 Reflects the elimination of Rockwell Collins capitalized pre-production engineering amortization to conform to UTC policy. 7 Reflects adjustments for the elimination of amortization of prior service cost and actuarial loss amortization, which was recorded by Rockwell Collins, as a result of fair value purchase accounting, net of the impact of the revised pension and post-retirement benefit (expense) as determined under UTC’s plan assumptions. 8 Reflects adjustments to Rockwell Collins revenue recognition as if they adopted the New Revenue Standard as of January 1, 2018 and primarily relates to capitalization of contract costs and changes in timing of sales recognition for contracts requiring an over time method of revenue recognition, partially offset by deferral of revenue recognized on OEM product engineering and development. 9 Reflects the elimination of entities required to be sold for regulatory approvals. The unaudited supplemental pro-forma financial information does not reflect the potential realization of cost savings related to the integration of the two companies. Further, the pro-forma data should not be considered indicative of the results that would have occurred if the acquisition and related financing had been consummated on January 1, 2017, nor are they indicative of future results. Dispositions. Cash inflows related to dispositions during the six months ended June 30, 2019 were $133 million and primarily consisted of the dispositions of businesses held for sale associated with the Rockwell Collins acquisition. In accordance with conditions imposed for regulatory approval of the acquisition, Rockwell Collins was required to dispose of certain businesses. These businesses were held separate from UTC’s and Rockwell Collins' ongoing businesses pursuant to regulatory requirements. Definitive agreements to sell each of the businesses were entered into prior to the completion of UTC's acquisition of Rockwell Collins. The related assets and liabilities of these businesses had been accounted for as held for sale at fair value less cost to sell. As of December 31, 2018, assets held for sale of $175 million were included within Other assets, current and liabilities held for sale of $40 million were included within Accrued liabilities on the Consolidated Balance Sheet. The major classes of assets and liabilities primarily include net Inventory of $51 million and net Fixed assets of $37 million . In the first quarter of 2019, Rockwell Collins completed the sale of all businesses which were held for sale as of December 31, 2018. On November 26, 2018, the Company announced its intention to separate into three independent companies. Following the separations, the Company will operate as an aerospace company comprised of Collins Aerospace Systems and the Pratt & Whitney businesses, and Otis and Carrier will become independent companies. The proposed separations are expected to be effected through spin-offs of Otis and Carrier that are intended to be tax-free for the Company’s shareowners for U.S. federal income tax purposes, and are expected to be completed in the first half of 2020. Separation of Otis and Carrier from UTC via spin-off transactions will be subject to the satisfaction of customary conditions, including, among others, final approval by the Company’s Board of Directors, receipt of tax rulings in certain jurisdictions and/or a tax opinion from external counsel (as applicable), the filing with the Securities and Exchange Commission (SEC) and effectiveness of Form 10 registration statements, and satisfactory completion of financing (subject to UTC’s agreement to consummate the distributions pursuant to, and subject to the terms and conditions of, the Raytheon merger agreement). Goodwill. Changes in our goodwill balances for the six months ended June 30, 2019 were as follows: (dollars in millions) Balance as of Goodwill Resulting from Business Combinations Foreign Currency Translation and Other Balance as of Otis $ 1,688 $ 7 $ (16 ) $ 1,679 Carrier 9,835 1 3 9,839 Pratt & Whitney 1,567 — (4 ) 1,563 Collins Aerospace Systems 35,001 255 — 35,256 Total Segments 48,091 263 (17 ) 48,337 Eliminations and other 21 — — 21 Total $ 48,112 $ 263 $ (17 ) $ 48,358 Goodwill increased $255 million at Collins Aerospace Systems resulting from several insignificant purchase accounting adjustments made during the six months ended June 30, 2019 , the largest of which included a reduction in acquired customer relationship intangible assets of $100 million . Intangible Assets. Identifiable intangible assets are comprised of the following: June 30, 2019 December 31, 2018 (dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Service portfolios $ 2,179 $ (1,656 ) $ 2,164 $ (1,608 ) Patents and trademarks 361 (245 ) 361 (236 ) Collaboration intangible assets 4,681 (779 ) 4,509 (649 ) Customer relationships and other 22,598 (5,099 ) 22,525 (4,560 ) 29,819 (7,779 ) 29,559 (7,053 ) Unamortized: Trademarks and other 3,923 — 3,918 — Total $ 33,742 $ (7,779 ) $ 33,477 $ (7,053 ) In addition to customer relationship intangible assets obtained through business combinations, customer relationship intangible assets include payments made to our customers to secure certain contractual rights. Such payments are capitalized when distinct rights are obtained and sufficient incremental cash flows to support the recoverability of the assets have been established. Otherwise, the applicable portion of the payments is expensed. We amortize these intangible assets based on the underlying pattern of economic benefit, which may result in an amortization method other than straight-line. In the aerospace industry, amortization based on the pattern of economic benefit generally results in lower amortization expense during the development period with amortization expense increasing as programs enter full production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined, a straight-line amortization method is used. We classify amortization of such payments as a reduction of sales. The collaboration intangible assets are amortized based upon the pattern of economic benefits as represented by the underlying cash flows. Amortization of intangible assets for the quarter and six months ended June 30, 2019 was $348 million and $722 million , respectively, compared with $232 million and $455 million for the same periods of 2018 . The following is the expected amortization of intangible assets for the years 2019 through 2024 , which reflects the pattern of expected economic benefit on certain aerospace intangible assets. (dollars in millions) Remaining 2019 2020 2021 2022 2023 2024 Amortization expense $ 742 $ 1,427 $ 1,408 $ 1,407 $ 1,398 $ 1,378 |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition [Text Block] | Revenue Recognition We account for revenue in accordance with ASC Topic 606: Revenue from Contracts with Customers. Performance Obligations. A performance obligation is a promise in a contract with a customer to transfer a distinct good or service to the customer. Some of our contracts with customers contain a single performance obligation, while others contain multiple performance obligations most commonly when a contract spans multiple phases of the product life-cycle such as development, production, maintenance and support. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When there are multiple performance obligations within a contract, we allocate the transaction price to each performance obligation based on its standalone selling price. We consider the contractual consideration payable by the customer and assess variable consideration that may affect the total transaction price, including contractual discounts, contract incentive payments, estimates of award fees, unfunded contract value under U.S. Government contracts, and other sources of variable consideration, when determining the transaction price of each contract. We include variable consideration in the estimated transaction price when there is a basis to reasonably estimate the amount. These estimates are based on historical experience, anticipated performance and our best judgment at the time. We also consider whether our contracts provide customers with significant financing. Generally, our contracts do not contain significant financing. Timing of the satisfaction of performance obligations varies across our businesses due to our diverse product and service mix, customer base, and contractual terms. Remaining Performance Obligations (RPO). RPO represents the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied. As of June 30, 2019 our total RPO was approximately $125.1 billion compared to $115.5 billion as of December 31, 2018. Of the total RPO as of June 30, 2019, we expect approximately 45% will be recognized as sales over the following 24 months. Capitalized Contract Costs. We incur costs for engineering and development of aerospace products directly related to existing or anticipated contracts with customers. Such costs generate or enhance our ability to satisfy our performance obligations under these contracts. We capitalize these costs as contract fulfillment costs to the extent the costs are recoverable from the associated contract margin and subsequently amortize the costs as the OEM products performance obligations are satisfied. In instances where intellectual property does not transfer to the customer, we defer the customer funding of OEM product engineering and development and recognize revenue when the performance obligations related to the OEM products are satisfied. Capitalized net contract fulfillment costs were $1,229 million and $914 million as of June 30, 2019 and December 31, 2018 , respectively and are recognized in Other assets in our Condensed Consolidated Balance Sheet. Contract Assets and Liabilities. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. Total contract assets and contract liabilities as of June 30, 2019 and December 31, 2018 are as follows: (dollars in millions) June 30, 2019 December 31, 2018 Contract assets, current $ 4,334 $ 3,486 Contract assets, noncurrent (included within Other assets) 1,215 1,142 Total contract assets 5,549 4,628 Contract liabilities, current (6,219 ) (5,720 ) Contract liabilities, noncurrent (included within Other long-term liabilities) (5,190 ) (5,069 ) Total contract liabilities (11,409 ) (10,789 ) Net contract liabilities $ (5,860 ) $ (6,161 ) Contract assets increased $921 million during the six months ended June 30, 2019 primarily due to revenue recognition in excess of customer billings, primarily on Pratt & Whitney military and commercial aftermarket service agreements and various programs at Collins Aerospace Systems. Contract liabilities increased $620 million during the six months ended June 30, 2019 primarily due to customer billings in excess of revenue recognized on Pratt & Whitney commercial aftermarket service agreements, at Collins Aerospace across various programs, and on Otis maintenance contracts. We recognized revenue of $3.2 billion during the six months ended June 30, 2019 related to contract liabilities as of December 31, 2018 . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Quarter Ended June 30, Six Months Ended June 30, (dollars in millions, except per share amounts; shares in millions) 2019 2018 2019 2018 Net income attributable to common shareowners $ 1,900 $ 2,048 $ 3,246 $ 3,345 Basic weighted average number of shares outstanding 854.4 790.5 853.8 790.2 Stock awards and equity units (share equivalent) 9.3 9.1 8.5 9.8 Diluted weighted average number of shares outstanding 863.7 799.6 862.3 800.0 Earnings Per Share of Common Stock: Basic $ 2.22 $ 2.59 $ 3.80 $ 4.23 Diluted $ 2.20 $ 2.56 $ 3.76 $ 4.18 The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock appreciation rights and stock options, when the average market price of the common stock is lower than the exercise price of the related stock awards during the period because the effect would be anti-dilutive. In addition, the computation of diluted earnings per share excludes the effect of the potential exercise of stock awards when the awards’ assumed proceeds exceed the average market price of the common shares during the period. For the quarter and six months ended June 30, 2019 , the number of stock awards excluded from the computation was approximately 11.0 million and 13.0 million , respectively. For the quarter and six months ended June 30, 2018 , the number of stock awards excluded from the computation was approximately 5.1 million |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory [Text Block] | Inventory, net (dollars in millions) June 30, 2019 December 31, 2018 Raw materials $ 3,024 $ 3,052 Work-in-process 2,863 2,673 Finished goods 5,047 4,358 $ 10,934 $ 10,083 Raw materials, work-in-process and finished goods are net of valuation reserves of $1,405 million and $1,270 million as of June 30, 2019 and December 31, 2018 , respectively. |
Borrowings and Lines of Credit
Borrowings and Lines of Credit | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings and Lines of Credit [Text Block] | Borrowings and Lines of Credit (dollars in millions) June 30, 2019 December 31, 2018 Commercial paper $ 855 $ 1,257 Other borrowings 284 212 Total short-term borrowings $ 1,139 $ 1,469 At June 30, 2019 , we had credit agreements with various banks permitting aggregate borrowings of up to $10.35 billion , including: a $2.20 billion revolving credit agreement and a $2.15 billion multicurrency revolving credit agreement, both of which expire in August 2021 ; and a $2.0 billion revolving credit agreement and a $4.0 billion term credit agreement, both of which we entered into on March 15, 2019 and which will expire on March 15, 2021 or, if earlier, the date that is 180 days after the date on which each of the separations of Otis and Carrier have been consummated . On March 15, 2019 , we terminated the $1.5 billion revolving credit agreement that we entered into on November 26, 2018. As of June 30, 2019 , there were no borrowings under any of these agreements. The undrawn portions of these revolving credit agreements are also available to serve as backup facilities for the issuance of commercial paper. As of June 30, 2019 , our maximum commercial paper borrowing limit was $6.35 billion . Commercial paper borrowings at June 30, 2019 include approximately €750 million ( $855 million ) of euro-denominated commercial paper. 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 need for commercial paper borrowings arises when the use of domestic cash for general corporate purposes exceeds the sum of domestic cash generation and foreign cash repatriated to the U.S. Long-term debt consisted of the following: (dollars in millions) June 30, 2019 December 31, 2018 LIBOR plus 0.350% floating rate notes due 2019 3 $ 350 $ 350 1.500% notes due 2019 1 650 650 1.950% notes due 2019 4 300 300 EURIBOR plus 0.15% floating rate notes due 2019 (€750 million principal value) 2 855 858 5.250% notes due 2019 4 300 300 8.875% notes due 2019 271 271 4.875% notes due 2020 1 171 171 4.500% notes due 2020 1 1,250 1,250 1.900% notes due 2020 1 1,000 1,000 EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value) 2 855 858 8.750% notes due 2021 250 250 3.100% notes due 2021 4 250 250 3.350% notes due 2021 1 1,000 1,000 LIBOR plus 0.650% floating rate notes due 2021 1,3 750 750 1.950% notes due 2021 1 750 750 1.125% notes due 2021 (€950 million principal value) 1 1,082 1,088 2.300% notes due 2022 1 500 500 2.800% notes due 2022 4 1,100 1,100 3.100% notes due 2022 1 2,300 2,300 1.250% notes due 2023 (€750 million principal value) 1 855 858 3.650% notes due 2023 1 2,250 2,250 3.700% notes due 2023 4 400 400 2.800% notes due 2024 1 800 800 3.200% notes due 2024 4 950 950 1.150% notes due 2024 (€750 million principal value) 1 855 858 3.950% notes due 2025 1 1,500 1,500 1.875% notes due 2026 (€500 million principal value) 1 569 573 2.650% notes due 2026 1 1,150 1,150 3.125% notes due 2027 1 1,100 1,100 3.500% notes due 2027 4 1,300 1,300 7.100% notes due 2027 141 141 6.700% notes due 2028 400 400 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) 1 569 573 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 4.500% notes due 2042 1 3,500 3,500 4.800% notes due 2043 4 400 400 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 4 1,000 1,000 4.625% notes due 2048 1 1,750 1,750 Project financing obligations 5 335 287 Other (including finance leases) 295 287 Total principal long-term debt 44,446 44,416 Other (fair market value adjustments, discounts and debt issuance costs) (334 ) (348 ) Total long-term debt 44,112 44,068 Less: current portion 6,202 2,876 Long-term debt, net of current portion $ 37,910 $ 41,192 1 We may redeem these notes at our option pursuant to their terms. 2 The three-month EURIBOR rate as of June 30, 2019 was approximately -0.345%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. 3 The three-month LIBOR rate as of June 30, 2019 was approximately 2.319%. 4 Rockwell Collins debt which remained outstanding following the Rockwell Merger. 5 Project financing obligations are associated with the sale of rights to unbilled revenues related to the ongoing activity of an entity owned by Carrier. We had no debt issuances during the six months ended June 30, 2019 and had the following issuances of debt in 2018 : (dollars and Euro in millions) Issuance Date Description of Notes Aggregate Principal Balance August 16, 2018: 3.350% notes due 2021 1 $ 1,000 3.650% notes due 2023 1 2,250 3.950% notes due 2025 1 1,500 4.125% notes due 2028 1 3,000 4.450% notes due 2038 1 750 4.625% notes due 2048 2 1,750 LIBOR plus 0.65% floating rate notes due 2021 1 750 May 18, 2018: 1.150% notes due 2024 3 € 750 2.150% notes due 2030 3 500 EURIBOR plus 0.20% floating rate notes due 2020 3 750 1 The net proceeds received from these debt issuances were used to partially finance the cash consideration portion of the purchase price for Rockwell Collins and fees, expenses and other amounts related to the acquisition of Rockwell Collins. 2 The net proceeds from these debt issuances were used to fund the repayment of commercial paper and for other general corporate purposes. 3 The net proceeds received from these debt issuances were used for general corporate purposes. We had no debt payments during the six months ended June 30, 2019 and had the following repayments of debt in 2018 : (dollars and Euro in millions) Repayment Date Description of Notes Aggregate Principal Balance December 14, 2018 Variable-rate term loan due 2020 (1 month LIBOR plus 1.25%) 1 $ 482 May 4, 2018 1.778% junior subordinated notes $ 1,100 February 22, 2018 EURIBOR plus 0.80% floating rate notes € 750 February 1, 2018 6.80% notes $ 99 1 This term loan was assumed in connection with the Rockwell Collins acquisition and subsequently repaid. The average maturity of our long-term debt at June 30, 2019 is approximately 10 years . The average interest expense rate on our total borrowings for the quarters and six months ended June 30, 2019 and 2018 were as follows: Quarter Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Average interest expense rate 3.6 % 3.5 % 3.7 % 3.5 % We previously had a universal shelf registration statement filed with the SEC, which expired on April 29, 2019 . Our ability to renew our shelf registration statement may be limited as a result of the separation transactions as well as our proposed merger with Raytheon; as noted above, we entered into a new $2.0 billion revolving credit agreement and a $4.0 billion term credit agreement on March 15, 2019 to be used for general corporate purposes, including the repayment, repurchase or redemption of existing debt, and to serve as backup facilities to support additional issuances of commercial paper. We expect to renew our shelf registration statement following the separation transactions or earlier, as appropriate. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The decrease in the effective tax rate for the quarter ended June 30, 2019 is primarily the result of favorable adjustments related to the conclusion of the audit by the Examination Division of the Internal Revenue Service for the UTC 2014, 2015 and 2016 tax years and the filing by a subsidiary of the Company to participate in an amnesty program offered by the Italian Tax Authority. These benefits were partially offset by tax charges connected to the Company’s portfolio separation transactions. The decrease in the effective tax rate for the six months ended June 30, 2019 is principally related to the items described above in addition to the impact of the Tax Cuts and Jobs Act of 2017 (TCJA) interpretive guidance and the absence of the TCJA provisional adjustments recorded through the second quarter of 2018. We conduct business globally and, as a result, UTC or one or more of our subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong, India, Italy, Japan, Mexico, Netherlands, Poland, Singapore, South Korea, Spain, Switzerland, the United Kingdom, and the United States. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2008. In the ordinary course of business, there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. It is reasonably possible that a net reduction within the range of $ 140 million to $ 490 million of unrecognized tax benefits may occur within the next 12 months as a result of additional worldwide uncertain tax positions, the closure of tax statutes, or the revaluation of current uncertain tax positions arising from the issuance of legislation, regulatory or other guidance or developments in examinations, in appeals, or in the courts. See Note 15, Contingent Liabilities, for discussion regarding uncertain tax positions, included in the above range, related to pending litigation with respect to certain deductions claimed in Germany. During the quarter the Examination Division of the Internal Revenue Service (IRS) concluded its audit of the Company’s 2014, 2015 and 2016 tax years. Further, during the quarter, a subsidiary of the Company engaged in certain tax litigation in Italy and made filings necessary to participate in an amnesty program offered by the Italian Tax Authority. As a result of the conclusion of the IRS audit and the amnesty filing in Italy, the Company recognized a net gain during the quarter of approximately $ 307 million , including pre-tax interest of approximately $56 million . It is reasonably possible that additional net non-cash gains could be recognized during the remainder of 2019 in the range of $ 25 million to $ 70 million , primarily tax, due to other potential settlements with tax authorities and statute of limitations expirations. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefit Plans Pension and Postretirement Plans. We sponsor both funded and unfunded domestic and foreign defined pension and other postretirement benefit plans, and defined contribution plans. Contributions to our plans were as follows: Quarter Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Defined benefit plans $ 47 $ 22 $ 79 $ 59 Defined contribution plans 134 105 287 199 We made contributions of $25 million to our domestic defined benefit pension plans in the quarter and six months ended June 30, 2019 . There were no contributions to our domestic defined benefit pension plans in the quarter and six months ended June 30, 2018 . Included in the current year contributions to employer sponsored defined contribution plans for the six months ended June 30, 2019 is $65 million of contributions to the Rockwell Collins participants. The following table illustrates the components of net periodic benefit (income) cost for our defined pension and other postretirement benefit plans: Pension Benefits Other Postretirement Benefits (dollars in millions) 2019 2018 2019 2018 Service cost $ 89 $ 93 $ 1 $ — Interest cost 340 278 8 6 Expected return on plan assets (608 ) (562 ) — — Amortization of prior service cost (credit) 4 (10 ) (11 ) (1 ) Recognized actuarial net loss (gain) 53 101 (3 ) (2 ) Net settlement and curtailment loss (gain) 1 (2 ) — — Total net periodic benefit (income) cost $ (121 ) $ (102 ) $ (5 ) $ 3 Pension Benefits Six Months Ended June 30, Other Postretirement Benefits Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Service cost $ 176 $ 186 $ 2 $ 1 Interest cost 680 557 16 12 Expected return on plan assets (1,215 ) (1,125 ) (1 ) — Amortization of prior service cost (credit) 9 (20 ) (22 ) (2 ) Recognized actuarial net loss (gain) 106 202 (6 ) (4 ) Net settlement and curtailment loss (gain) 9 (3 ) — — Total net periodic benefit (income) cost $ (235 ) $ (203 ) $ (11 ) $ 7 |
Restructuring and Other Costs
Restructuring and Other Costs | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs [Text Block] | Restructuring Costs During the six months ended June 30, 2019 , we recorded net pre-tax restructuring costs totaling $178 million for new and ongoing restructuring actions. We recorded charges in the segments as follows: (dollars in millions) Otis $ 40 Carrier 63 Pratt & Whitney 17 Collins Aerospace Systems 56 Eliminations and other 2 Total $ 178 Restructuring charges incurred during the six months ended June 30, 2019 primarily relate to actions initiated during 2019 and 2018 , and were recorded as follows: (dollars in millions) Cost of sales $ 82 Selling, general and administrative 96 Total $ 178 2019 Actions . During the six months ended June 30, 2019 , we recorded net pre-tax restructuring costs of $115 million , comprised of $43 million in cost of sales and $72 million in selling, general and administrative expenses. The 2019 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field and manufacturing operations. We are targeting to complete the majority of the remaining workforce and facility related cost reduction actions during 2019 and 2020 . No specific plans for other significant actions have been finalized at this time. The following table summarizes the accrual balance and utilization for the 2019 restructuring actions for the quarter and six months ended June 30, 2019 : (dollars in millions) Severance Facility Exit, Lease Termination and Other Costs Total Quarter Ended June 30, 2019 Restructuring accruals at March 31, 2019 $ 53 $ 15 $ 68 Net pre-tax restructuring costs 42 — 42 Utilization, foreign exchange and other costs (38 ) (4 ) (42 ) Balance at June 30, 2019 $ 57 $ 11 $ 68 Six Months Ended June 30, 2019 Net pre-tax restructuring costs $ 110 $ 5 $ 115 Utilization, foreign exchange and other costs (53 ) 6 (47 ) Balance at June 30, 2019 $ 57 $ 11 $ 68 The following table summarizes expected, incurred and remaining costs for the 2019 restructuring actions by segment: (dollars in millions) Expected Costs Costs Incurred Quarter Ended March 31, 2019 Costs Incurred Quarter Ended June 30, 2019 Remaining Costs at June 30, 2019 Otis $ 48 $ (19 ) $ (14 ) $ 15 Carrier 77 (25 ) (24 ) 28 Pratt & Whitney 17 (14 ) (3 ) — Collins Aerospace Systems 44 (14 ) — 30 Eliminations and other 2 (1 ) (1 ) — Total $ 188 $ (73 ) $ (42 ) $ 73 2018 Actions . During the six months ended June 30, 2019 , we recorded net pre-tax restructuring costs totaling $39 million for restructuring actions initiated in 2018 , including $20 million in cost of sales and $19 million in selling, general and administrative expenses. The 2018 actions relate to ongoing cost reduction efforts, including workforce reductions, consolidation of field and manufacturing operations, and costs to exit legacy programs. The following table summarizes the accrual balances and utilization for the 2018 restructuring actions for the quarter and six months ended June 30, 2019 : (dollars in millions) Severance Facility Exit, Lease Termination and Other Costs Total Quarter Ended June 30, 2019 Restructuring accruals at March 31, 2019 $ 62 $ 9 $ 71 Net pre-tax restructuring costs 14 2 16 Utilization, foreign exchange and other costs (28 ) (2 ) (30 ) Balance at June 30, 2019 $ 48 $ 9 $ 57 Six Months Ended June 30, 2019 Restructuring accruals at December 31, 2018 $ 115 $ 23 $ 138 Net pre-tax restructuring costs 35 4 39 Utilization, foreign exchange and other costs (102 ) (18 ) (120 ) Balance at June 30, 2019 $ 48 $ 9 $ 57 The following table summarizes expected, incurred and remaining costs for the 2018 restructuring actions by segment: (dollars in millions) Expected Costs Costs Incurred in 2018 Costs Incurred Quarter Ended March 31, 2019 Costs Incurred Quarter Ended June 30, 2019 Remaining Costs at June 30, 2019 Otis $ 58 $ (48 ) $ (5 ) $ (1 ) $ 4 Carrier 85 (64 ) (7 ) (6 ) 8 Pratt & Whitney 3 (3 ) — — — Collins Aerospace Systems 115 (87 ) (11 ) (9 ) 8 Eliminations and other 5 (5 ) — — — Total $ 266 $ (207 ) $ (23 ) $ (16 ) $ 20 2017 and Prior Actions. During the six months ended June 30, 2019 , we recorded net pre-tax restructuring costs totaling $24 million for restructuring actions initiated in 2017 and prior. As of June 30, 2019 , we have approximately $74 million of accrual balances remaining related to 2017 and prior actions. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments [Text Block] | Financial Instruments We enter into derivative instruments primarily for risk management purposes, including derivatives designated as hedging instruments under the Derivatives and Hedging Topic of the FASB ASC and those utilized as economic hedges. We operate internationally and, in the normal course of business, are exposed to fluctuations in interest rates, foreign exchange rates and commodity prices. These fluctuations can increase the costs of financing, investing and operating the business. We have used derivative instruments, including swaps, forward contracts and options, to manage certain foreign currency, interest rate and commodity price exposures. The four quarter rolling average of the notional amount of foreign exchange contracts hedging foreign currency transactions was $18.2 billion and $20.1 billion at June 30, 2019 and December 31, 2018 , respectively. The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheets for derivative instruments as of June 30, 2019 and December 31, 2018 : (dollars in millions) Balance Sheet Location June 30, 2019 December 31, 2018 Derivatives designated as hedging instruments: Foreign exchange contracts Asset Derivatives: Other assets, current $ 16 $ 10 Other assets 19 12 Total asset derivatives $ 35 $ 22 Liability Derivatives: Accrued liabilities (59 ) (83 ) Other long-term liabilities (90 ) (111 ) Total liability derivatives $ (149 ) $ (194 ) Derivatives not designated as hedging instruments: Foreign exchange contracts Asset Derivatives: Other assets, current $ 79 $ 44 Other assets 7 19 Total asset derivatives $ 86 $ 63 Liability Derivatives: Accrued liabilities (80 ) (89 ) Other long-term liabilities (2 ) (3 ) Total liability derivatives $ (82 ) $ (92 ) The effect of cash flow hedging relationships on Accumulated other comprehensive income and on the Condensed Consolidated Statement of Operations for the quarters and six months ended June 30, 2019 and 2018 are presented in the table below. The amounts of gain or (loss) are attributable to foreign exchange contract activity and are recorded as a component of Product sales when reclassified from accumulated other comprehensive income. Quarter Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Gain (loss) recorded in Accumulated other comprehensive loss $ 21 $ (245 ) $ 28 $ (200 ) Loss (gain) reclassified from Accumulated other comprehensive loss into Product sales 16 (1 ) 20 (28 ) The Company utilizes the critical terms match method in assessing derivatives for hedge effectiveness. Accordingly, the hedged items and derivatives designated as hedging instruments are highly effective. We have €4.95 billion of euro-denominated long-term debt and €750 million of euro-denominated commercial paper borrowings outstanding, which qualify as a net investment hedge against our investments in European businesses . As of June 30, 2019, the net investment hedge is deemed to be effective. Assuming current market conditions continue, a $23 million pre-tax loss is expected to be reclassified from Accumulated other comprehensive loss into Product sales to reflect the fixed prices obtained from foreign exchange hedging within the next 12 months. At June 30, 2019 , all derivative contracts accounted for as cash flow hedges will mature by July 2023 . The effect of derivatives not designated as hedging instruments within Other income, net, on the Condensed Consolidated Statement of Operations was as follows: Quarter Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Foreign exchange contracts $ 18 $ 19 $ 36 $ 70 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements In accordance with the provisions of ASC 820, the following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and non-recurring basis in our Condensed Consolidated Balance Sheet as of June 30, 2019 and December 31, 2018 : June 30, 2019 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 60 $ 60 $ — $ — Derivative assets 121 — 121 — Derivative liabilities (231 ) — (231 ) — December 31, 2018 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 51 $ 51 $ — $ — Derivative assets 85 — 85 — Derivative liabilities (286 ) — (286 ) — Valuation Techniques. Our available-for-sale securities include equity investments that are traded in active markets, either domestically or internationally, and are measured at fair value using closing stock prices from active markets. Our derivative assets and liabilities include foreign exchange contracts that are measured at fair value using internal models based on observable market inputs such as forward rates, interest rates, our own credit risk and our counterparties' credit risks. As of June 30, 2019 , there has not been any significant impact to the fair value of our derivative liabilities due to our own credit risk. Similarly, there has not been any significant adverse impact to our derivative assets based on our evaluation of our counterparties' credit risks. The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Condensed Consolidated Balance Sheet at June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (dollars in millions) Carrying Amount Fair Value Carrying Amount Fair Value Long-term receivables $ 384 $ 370 $ 334 $ 314 Customer financing notes receivable 283 282 272 265 Short-term borrowings (1,139 ) (1,139 ) (1,469 ) (1,469 ) Long-term debt (excluding finance leases) (44,027 ) (47,458 ) (43,996 ) (44,003 ) Long-term liabilities (422 ) (399 ) (508 ) (467 ) The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Condensed Consolidated Balance Sheet at June 30, 2019 and December 31, 2018 : June 30, 2019 (dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 370 $ — $ 370 $ — Customer financing notes receivable 282 — 282 — Short-term borrowings (1,139 ) — (855 ) (284 ) Long-term debt (excluding finance leases) (47,458 ) — (47,035 ) (423 ) Long-term liabilities (399 ) — (399 ) — December 31, 2018 (dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 314 $ — $ 314 $ — Customer financing notes receivable 265 — 265 — Short-term borrowings (1,469 ) — (1,258 ) (211 ) Long-term debt (excluding finance leases) (44,003 ) — (43,620 ) (383 ) Long-term liabilities (467 ) — (467 ) — We had commercial aerospace financing and other contractual commitments totaling approximately $15.9 billion and $15.5 billion as of June 30, 2019 and December 31, 2018 , respectively, related to commercial aircraft and certain contractual rights to provide product on new aircraft platforms. Associated risks on these commitments from changes in interest rates are mitigated because interest rates are variable during the commitment term and are set at the date of funding based on current market conditions, the fair value of the underlying collateral and the credit worthiness of the customers. As a result, the fair value of these financings is expected to equal the amounts funded. |
Long-Term Financing Receivables
Long-Term Financing Receivables | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Long-Term Financing Receivables [Text Block] | Long-Term Financing Receivables Our long-term financing receivables primarily represent balances related to the aerospace businesses such as long-term trade accounts receivable, leases, and notes receivable. We also have other long-term receivables in our commercial businesses; however, both the individual and aggregate amounts of those other receivables are not significant. The following table summarizes the balance by class of aerospace business related long-term receivables as of June 30, 2019 and December 31, 2018 : (dollars in millions) June 30, 2019 December 31, 2018 Long-term trade accounts receivable $ 294 $ 269 Notes and leases receivable 256 258 Total long-term receivables $ 550 $ 527 Customer credit ratings range from customers with an extremely strong capacity to meet financial obligations to customers whose uncollateralized receivable is in default. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to the allowance for credit losses on long-term receivables. Based upon the customer credit ratings, approximately $150 million of our total long-term receivables were considered to bear high credit risk as of June 30, 2019 and December 31, 2018 . For long-term trade accounts receivable, we evaluate credit risk and collectability individually to determine if an allowance is necessary. Our long-term receivables reflected in the table above, which include reserves of $23 million and $16 million as of June 30, 2019 and December 31, 2018 , respectively, are individually evaluated for impairment. At June 30, 2019 and December 31, 2018 , we did not have any significant balances that are considered to be delinquent, on non-accrual status, past due 90 days or more, or considered to be impaired. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) Disclosure [Text Block] | Accumulated Other Comprehensive Loss A summary of the changes in each component of Accumulated other comprehensive loss, net of tax for the quarters and six months ended June 30, 2019 and 2018 is provided below: (dollars in millions) Foreign Currency Translation Defined Benefit Pension and Post- retirement Plans Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income Quarter Ended June 30, 2019 Balance at March 31, 2019 $ (2,932 ) $ (6,422 ) $ — $ (165 ) $ (9,519 ) Other comprehensive (loss) income before (435 ) (13 ) — 21 (427 ) Amounts reclassified, pre-tax (1 ) 43 — 16 58 Tax expense (benefit) reclassified 14 (6 ) — (12 ) (4 ) Balance at June 30, 2019 $ (3,354 ) $ (6,398 ) $ — $ (140 ) $ (9,892 ) Six Months Ended June 30, 2019 Balance at December 31, 2018 $ (3,442 ) $ (5,718 ) $ — $ (173 ) $ (9,333 ) Other comprehensive income (loss) before 95 (14 ) — 28 109 Amounts reclassified, pre-tax — 87 — 20 107 Tax expense (benefit) reclassified 1 (16 ) — (15 ) (30 ) ASU 2018-02 adoption impact (8 ) (737 ) — — (745 ) Balance at June 30, 2019 $ (3,354 ) $ (6,398 ) $ — $ (140 ) $ (9,892 ) (dollars in millions) Foreign Currency Translation Defined Benefit Pension and Post- retirement Plans Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income Quarter Ended June 30, 2018 Balance at March 31, 2018 $ (2,444 ) $ (4,579 ) $ — $ 86 $ (6,937 ) Other comprehensive (loss) income before (564 ) 18 — (245 ) (791 ) Amounts reclassified, pre-tax (3 ) 88 — (1 ) 84 Tax (benefit) expense reclassified (74 ) (26 ) — 60 (40 ) Balance at June 30, 2018 $ (3,085 ) $ (4,499 ) $ — $ (100 ) $ (7,684 ) Six Months Ended June 30, 2018 Balance at December 31, 2017 $ (2,950 ) $ (4,652 ) $ 5 $ 72 $ (7,525 ) Other comprehensive (loss) income before (188 ) 26 — (200 ) (362 ) Amounts reclassified, pre-tax (3 ) 176 — (28 ) 145 Tax expense (benefit) reclassified 56 (49 ) — 56 63 ASU 2016-01 adoption impact — — (5 ) — (5 ) Balance at June 30, 2018 $ (3,085 ) $ (4,499 ) $ — $ (100 ) $ (7,684 ) In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220) . The new standard allows companies to reclassify to retained earnings the stranded tax effects in Accumulated other comprehensive income (AOCI) from the TCJA. We elected to reclassify the income tax effects of TCJA from AOCI of $745 million to retained earnings, effective January 1, 2019. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . This ASU modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Upon adoption, investments that do not result in consolidation and are not accounted for under the equity method generally must be carried at fair value, with changes in fair value recognized in net income. We had approximately $5 million of unrealized gains on these securities recorded in Accumulated other comprehensive loss in our Consolidated Balance Sheet as of December 31, 2017. We adopted this standard effective January 1, 2018, with these amounts recorded directly to retained earnings as of that date. Amounts reclassified that relate to our defined benefit pension and postretirement plans include the amortization of prior service costs and actuarial net losses recognized during each period presented. These costs are recorded as components of net periodic pension cost for each period presented (see Note 7 for additional details). |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | Variable Interest Entities Pratt & Whitney holds a 61% net interest in the International Aero Engines AG (IAE) collaboration with MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC) and a 49.5% ownership interest in IAE. IAE's business purpose is to coordinate the design, development, manufacturing and product support of the V2500 program through involvement with the collaborators. Additionally, Pratt & Whitney, JAEC and MTU are participants in International Aero Engines, LLC (IAE LLC), whose business purpose is to coordinate the design, development, manufacturing and product support for the PW1100G-JM engine for the Airbus A320neo aircraft and the PW1400G-JM engine for the Irkut MC21 aircraft. Pratt & Whitney holds a 59% net interest and a 59% ownership interest in IAE LLC. IAE and IAE LLC retain limited equity with the primary economics of the programs passed to the participants. As such, we have determined that IAE and IAE LLC are variable interest entities with Pratt & Whitney the primary beneficiary. IAE and IAE LLC have, therefore, been consolidated. The carrying amounts and classification of assets and liabilities for variable interest entities in our Condensed Consolidated Balance Sheet are as follows: (dollars in millions) June 30, 2019 December 31, 2018 Current assets $ 4,484 $ 4,732 Noncurrent assets 1,700 1,600 Total assets $ 6,184 $ 6,332 Current liabilities $ 5,121 $ 4,946 Noncurrent liabilities 1,884 1,898 Total liabilities $ 7,005 $ 6,844 |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2019 | |
Service and Product Warranties and Product Performance Guarantees [Abstract] | |
Guarantees [Text Block] | Guarantees We extend a variety of financial, market value and product performance guarantees to third parties. There have been no material changes to financial guarantees outstanding since December 31, 2018 . The changes in the carrying amount of service and product warranties and product performance guarantees for the six months ended June 30, 2019 and 2018 are as follows: (dollars in millions) 2019 2018 Balance as of January 1 $ 1,449 $ 1,146 Warranties and performance guarantees issued 309 233 Settlements made (241 ) (200 ) Other 5 (7 ) Balance as of June 30 $ 1,522 $ 1,172 |
Contingent Liabilities
Contingent Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities [Text Block] | Contingent Liabilities Summarized below are the matters previously described in Note 18 of the Notes to the Consolidated Financial Statements in our 2018 Annual Report, incorporated by reference in our 2018 Form 10-K , updated as applicable. Except as otherwise noted, while we are unable to predict the final outcome, based on information currently available, we do not believe that resolution of any of the following matters will have a material adverse effect upon our competitive position, results of operations, cash flows or financial condition. Environmental. Our operations are subject to environmental regulation by federal, state and local authorities in the United States and authorities with jurisdiction over our foreign operations. As described in Note 1 to the Consolidated Financial Statements in our 2018 Annual Report, we have accrued for the costs of environmental remediation activities, including but not limited to investigatory, remediation, operating and maintenance costs and performance guarantees, and periodically reassess these amounts. We believe that the likelihood of incurring losses materially in excess of amounts accrued is remote. Additional information pertaining to environmental matters is included in Note 1 to the Consolidated Financial Statements in our 2018 Annual Report. Government. In the ordinary course of business, the Company and its subsidiaries and our properties are subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations and threatened legal actions and proceedings. For example, we are now, and believe that, in light of the current U.S. Government contracting environment, we will continue to be the subject of one or more U.S. Government investigations. Such U.S. Government investigations often take years to complete and could result in administrative, civil or criminal liabilities, including repayments, fines, treble and other damages, forfeitures, restitution or penalties, or could lead to suspension or debarment of U.S. Government contracting privileges. For instance, if we or one of our business units were charged with wrongdoing as a result of any of these investigations or other government investigations (including violations of certain environmental or export laws) the U.S. Government could suspend us from bidding on or receiving awards of new U.S. Government contracts pending the completion of legal proceedings. If convicted or found liable, the U.S. Government could fine and debar us from new U.S. Government contracting for a period generally not to exceed three years. The U.S. Government also reserves the right to debar a contractor from receiving new government contracts for fraudulent, criminal or other seriously improper conduct. The U.S. Government could void any contracts found to be tainted by fraud. Our contracts with the U.S. Government are also subject to audits. Like many defense contractors, we have received audit reports recommending the reduction of certain contract prices because, for example, cost or pricing data or cost accounting practices used to price and negotiate those contracts may not have conformed to government regulations. Some of these audit reports recommend that certain payments be repaid, delayed, or withheld, and may involve substantial amounts. We have made voluntary refunds in those cases we believe appropriate, have settled some allegations and, in some cases, continue to negotiate and/or litigate. In addition, we accrue for liabilities associated with those matters that are probable and can be reasonably estimated. The most likely settlement amount to be incurred is accrued based upon a range of estimates. Where no amount within a range of estimates is more likely, then we accrue the minimum amount. Legal Proceedings. Cost Accounting Standards Claims In April 2019, a Divisional Administrative Contracting Officer (DACO) of the United States Defense Contract Management Agency (DCMA) asserted a claim against Pratt & Whitney to recover overpayments of approximately $1.73 billion plus interest (approximately $506 million through June 30, 2019). The claim is based on Pratt & Whitney's alleged noncompliance with cost accounting standards from January 1, 2007 to March 31, 2019, due to its method of allocating independent research and development costs to government contracts. Pratt & Whitney believes that the claim is without merit and filed an appeal to the Armed Services Board of Contract Appeals (ASBCA) on June 7, 2019. As previously disclosed, in December 2013, a DCMA DACO asserted a claim against Pratt & Whitney to recover overpayments of approximately $177 million plus interest (approximately $ 92 million through June 30, 2019). The claim is based on Pratt & Whitney's alleged noncompliance with cost accounting standards from January 1, 2005 to December 31, 2012, due to its method of determining the cost of collaborator parts used in the calculation of material overhead costs for government contracts. In 2014, Pratt & Whitney filed an appeal to the ASBCA. An evidentiary hearing was held and completed in June 2019. The parties are now engaged in post-hearing briefing, and a decision from the ASBCA will follow. We continue to believe that the claim is without merit. In December 2018, a DCMA DACO issued a second claim against Pratt & Whitney that similarly alleges that its method of determining the cost of collaborator parts does not comply with the cost accounting standards for calendar years 2013 through 2017. This second claim demands payment of $269 million plus interest (approximately $ 48.1 million through June 30, 2019), which we also believe is without merit and which Pratt & Whitney appealed to the ASBCA in January 2019. German Tax Litigation As previously disclosed, UTC has been involved in administrative review proceedings with the German Tax Office, which concern approximately €215 million (approximately $245 million) of tax benefits that we have claimed related to a 1998 reorganization of the corporate structure of Otis operations in Germany. Upon audit, these tax benefits were disallowed by the German Tax Office. UTC estimates interest associated with the aforementioned tax benefits is an additional approximately €118 million (approximately $ 135 million). On August 3, 2012, we filed suit in the local German Tax Court (Berlin-Brandenburg). In March 2016, the local German Tax Court dismissed our suit, and we appealed this decision to the German Federal Tax Court (FTC). Following a hearing in July 2018, the FTC remanded the matter to the local German Tax Court for further proceedings. In 2015, UTC made tax and interest payments to German tax authorities of €275 million (approximately $300 million) in order to avoid additional interest accruals pending final resolution of this matter. Asbestos Matters As previously disclosed, like many other industrial companies, we and our subsidiaries have been named as defendants in lawsuits alleging personal injury as a result of exposure to asbestos integrated into certain of our products or business premises. While we have never manufactured asbestos and no longer incorporate it in any currently-manufactured products, certain of our historical products, like those of many other manufacturers, have contained components incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or were covered in full or in part by insurance or other forms of indemnity. Additional cases were litigated and settled without any insurance reimbursement. The amounts involved in asbestos related claims were not material individually or in the aggregate in any year. Our estimated total liability to resolve all pending and unasserted potential future asbestos claims through 2059 is approximately $328 million and is principally recorded in Other long-term liabilities on our Condensed Consolidated Balance Sheet as of June 30, 2019 . This amount is on a pre-tax basis, not discounted, and excludes the Company’s legal fees to defend the asbestos claims (which will continue to be expensed by the Company as they are incurred). In addition, the Company has an insurance recovery receivable for probable asbestos related recoveries of approximately $147 million , which is included primarily in Other assets on our Condensed Consolidated Balance Sheet as of June 30, 2019 . The amounts recorded by UTC for asbestos-related liabilities and insurance recoveries are based on currently available information and assumptions that we believe are reasonable. Our actual liabilities or insurance recoveries could be higher or lower than those recorded if actual results vary significantly from the assumptions. Key variables in these assumptions include the number and type of new claims to be filed each year, the outcomes or resolution of such claims, the average cost of resolution of each new claim, the amount of insurance available, the allocation methodologies, the contractual terms with each insurer with whom we have reached settlements, the resolution of coverage issues with other excess insurance carriers with whom we have not yet achieved settlements, and the solvency risk with respect to our insurance carriers. Other factors that may affect our future liability include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, legal rulings that may be made by state and federal courts, and the passage of state or federal legislation. At the end of each year, the Company will evaluate all of these factors and, with input from an outside actuarial expert, make any necessary adjustments to both our estimated asbestos liabilities and insurance recoveries. Other. As described in Note 14 of this Form 10-Q and Note 17 to the Consolidated Financial Statements in our 2018 Annual Report, we extend performance and operating cost guarantees beyond our normal warranty and service policies for extended periods on some of our products. We have accrued our estimate of the liability that may result under these guarantees and for service costs that are probable and can be reasonably estimated. We also have other commitments and contingent liabilities related to legal proceedings, self-insurance programs and matters arising out of the normal course of business. We accrue contingencies based upon a range of possible outcomes. If no amount within this range is a better estimate than any other, then we accrue the minimum amount. In the ordinary course of business, the Company and its subsidiaries are also routinely defendants in, parties to or otherwise subject to many pending and threatened legal actions, claims, disputes and proceedings. These matters are often based on alleged violations of contract, product liability, warranty, regulatory, environmental, health and safety, employment, intellectual property, tax and other laws. In some instances, claims for substantial monetary damages are asserted against the Company and its subsidiaries and could result in fines, penalties, compensatory or treble damages or non-monetary relief. We do not believe that these matters will have a material adverse effect upon our competitive position, results of operations, cash flows or financial condition. |
Leases (Notes)
Leases (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases ASU 2016-02, Leases (Topic 842) and its related amendments (collectively, the New Lease Accounting Standard) are effective for reporting periods beginning after December 15, 2018. We adopted the New Lease Accounting Standard effective January 1, 2019 and elected the modified retrospective approach in which results for periods before 2019 were not adjusted for the new standard and the cumulative effect of the change in accounting was recognized through retained earnings at the date of adoption. The New Lease Accounting Standard establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the Condensed Consolidated Balance Sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the Condensed Consolidated Statement of Operations. In addition, this standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as financing. If the lessor doesn’t convey risks and rewards or control, the lease is treated as operating. We have elected certain of the practical expedients available under the New Lease Accounting Standard upon adoption. We have applied the practical expedient which allows prospective transition to the New Lease Accounting Standard on January 1, 2019. Under the transition practical expedient, we did not reassess lease classification, embedded leases or initial direct costs. We have applied the practical expedient for short-term leases. We have lease agreements with lease and non-lease components. We have elected the practical expedients to combine these components for certain equipment leases. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease right-of-use assets and liabilities. The adoption of the New Lease Accounting Standard did not have a material effect on our Condensed Consolidated Statement of Operations or Condensed Consolidated Statement of Cash Flows. Upon adoption, we recorded a $2.6 billion right-of-use asset and a $2.7 billion lease liability. The adoption of the New Lease Accounting Standard had an immaterial impact on retained earnings. We enter into lease agreements for the use of real estate space, vehicles, information technology equipment, and certain other equipment under operating and finance leases. We determine if an arrangement contains a lease at inception. Operating leases are included in Operating lease right-of-use assets, Accrued liabilities, and Operating lease liabilities in our Condensed Consolidated Balance Sheet. Finance leases are not considered significant to our Condensed Consolidated Balance Sheet or Condensed Consolidated Statement of Operations. Finance lease right-of-use assets at June 30, 2019 of $74 million are included in Other assets in our Condensed Consolidated Balance Sheet. Finance lease liabilities at June 30, 2019 of $85 million are included in Long term debt currently due, and Long term debt in our Condensed Consolidated Balance Sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments, and use the implicit rate when readily determinable. We determine our incremental borrowing rate through market sources including relevant industry rates. Our lease right-of-use assets also include any lease pre-payments and exclude lease incentives. Certain of our leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. We exclude variable payments from lease right-of-use assets and lease liabilities, to the extent not considered fixed, and instead, expense variable payments as incurred. Variable lease expense and lease expense for short duration contracts is not a material component of lease expense. Our leases generally have remaining lease terms of 1 to 20 years, some of which include options to extend leases. The majority of our leases with options to extend are up to 5 years with the ability to terminate the lease within 1 year. The exercise of lease renewal options is at our sole discretion and our lease right-of-use assets and liabilities reflect only the options we are reasonably certain that we will exercise. Lease expense is recognized on a straight-line basis over the lease term. In limited instances we act as a lessor, primarily for commercial aerospace engines and certain heating, ventilation and air conditioning (HVAC) systems and commercial equipment, all of which are classified as operating leases. These leases are not significant to our Condensed Consolidated Balance Sheet or Condensed Consolidated Statement of Operations. Operating lease expense for the quarter and six months ended June 30, 2019 was $220 million and $379 million , respectively. Supplemental cash flow information related to operating leases was as follows: (dollars in millions) Quarter Ended June 30, 2019 Six Months Ended June 30, 2019 Operating cash flows for the measurement of operating lease liabilities $ (192 ) $ (337 ) Operating lease right-of-use assets obtained in exchange for operating lease obligations 174 201 Operating lease right-of-use assets and liabilities are reflected on our Condensed Consolidated Balance Sheet as follows: (dollars in millions, except lease term and discount rate) June 30, 2019 Operating lease right-of-use assets $ 2,740 Accrued liabilities $ (580 ) Operating lease liabilities (2,258 ) Total operating lease liabilities $ (2,838 ) Supplemental balance sheet information related to operating leases was as follows: June 30, 2019 Weighted Average Remaining Lease Term (in years) 6.8 Weighted Average Discount Rate 3.6 % Undiscounted maturities of operating lease liabilities as of June 30, 2019 are as follows: (dollars in millions) Operating 1 2019 $ 344 2020 629 2021 543 2022 412 2023 287 Thereafter 878 Total undiscounted lease payments 3,093 Less imputed interest (255 ) Total discounted lease payments $ 2,838 1 Operating lease payments include $225 million related to options to extend lease terms that are reasonably certain of being exercised. Prior to the adoption of the New Lease Accounting Standard, rental commitments on an undiscounted basis were approximately $2.9 billion at December 31, 2018 under long-term non-cancelable operating leases and were payable as follows: $683 million in 2019 , $544 million in 2020 , $407 million in 2021 , $301 million in 2022 , $235 million in 2023 and $746 million |
Segment Financial Data
Segment Financial Data | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 17: Segment Financial Data Our operations are classified into four principal segments: Otis, Carrier, Pratt & Whitney, and Collins Aerospace Systems. The segments are generally 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. Total sales by segment include inter-segment sales, which are generally made at prices approximating those that the selling entity is able to obtain on external sales. Results for the quarters ended June 30, 2019 and 2018 are as follows: Net Sales Operating Profits Operating Profit Margins (dollars in millions) 2019 2018 2019 2018 2019 2018 Otis $ 3,348 $ 3,344 $ 515 $ 488 15.4 % 14.6 % Carrier 4,962 5,035 836 1,645 16.8 % 32.7 % Pratt & Whitney 5,150 4,736 424 397 8.2 % 8.4 % Collins Aerospace Systems 6,576 3,962 1,172 569 17.8 % 14.4 % Total segments 20,036 17,077 2,947 3,099 14.7 % 18.1 % Eliminations and other (402 ) (372 ) (239 ) (97 ) General corporate expenses — — (124 ) (126 ) Consolidated $ 19,634 $ 16,705 $ 2,584 $ 2,876 13.2 % 17.2 % Results for the six months ended June 30, 2019 and 2018 are as follows: Net Sales Operating Profits Operating Profit Margins (dollars in millions) 2019 2018 2019 2018 2019 2018 Otis $ 6,444 $ 6,381 $ 941 $ 938 14.6 % 14.7 % Carrier 9,285 9,411 1,365 2,237 14.7 % 23.8 % Pratt & Whitney 9,967 9,065 857 810 8.6 % 8.9 % Collins Aerospace Systems 13,089 7,779 2,028 1,157 15.5 % 14.9 % Total segments 38,785 32,636 5,191 5,142 13.4 % 15.8 % Eliminations and other (786 ) (689 ) (340 ) (108 ) General corporate expenses — — (222 ) (230 ) Consolidated $ 37,999 $ 31,947 $ 4,629 $ 4,804 12.2 % 15.0 % Geographic sales are attributed to the geographic regions based on their location of origin. Segment information for the quarters ended June 30, 2019 and 2018 is as follows: 2019 2018 (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Otis Carrier Pratt & Whitney Collins Aerospace Systems Total United States $ 904 $ 2,707 $ 3,967 $ 4,797 $ 12,375 $ 859 $ 2,618 $ 3,652 $ 2,776 $ 9,905 Europe 992 1,301 112 988 3,393 1,054 1,455 126 585 3,220 Asia Pacific 1,200 737 294 210 2,441 1,169 720 312 85 2,286 Other 252 217 777 581 1,827 262 242 646 516 1,666 Total segment $ 3,348 $ 4,962 $ 5,150 $ 6,576 $ 20,036 $ 3,344 $ 5,035 $ 4,736 $ 3,962 $ 17,077 Segment geographic information for the six months ended June 30, 2019 and 2018 is as follows: 2019 2018 (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Otis Carrier Pratt & Whitney Collins Aerospace Systems Total United States $ 1,816 $ 4,921 $ 7,699 $ 9,527 $ 23,963 $ 1,704 $ 4,713 $ 6,773 $ 5,430 $ 18,620 Europe 1,947 2,593 221 2,011 6,772 2,059 2,839 299 1,192 6,389 Asia Pacific 2,176 1,349 549 399 4,473 2,091 1,405 680 169 4,345 Other 505 422 1,498 1,152 3,577 527 454 1,313 988 3,282 Total segment $ 6,444 $ 9,285 $ 9,967 $ 13,089 $ 38,785 $ 6,381 $ 9,411 $ 9,065 $ 7,779 $ 32,636 Segment sales disaggregated by product type for the quarters ended June 30, 2019 and 2018 are as follows: 2019 2018 (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Commercial and industrial, non aerospace $ 3,348 $ 4,962 $ 5 $ 12 $ 8,327 $ 3,344 $ 5,035 $ 5 $ 15 $ 8,399 Commercial aerospace — — 3,538 4,855 8,393 — — 3,369 3,024 6,393 Military aerospace — — 1,607 1,709 3,316 — — 1,362 923 2,285 Total segment $ 3,348 $ 4,962 $ 5,150 $ 6,576 $ 20,036 $ 3,344 $ 5,035 $ 4,736 $ 3,962 $ 17,077 Segment sales disaggregated by product type for the six months ended June 30, 2019 and 2018 are as follows: 2019 2018 (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Commercial and industrial, non aerospace $ 6,444 $ 9,285 $ 28 $ 26 $ 15,783 $ 6,381 $ 9,411 $ 26 $ 30 $ 15,848 Commercial aerospace — — 6,913 9,683 16,596 — — 6,568 5,935 12,503 Military aerospace — — 3,026 3,380 6,406 — — 2,471 1,814 4,285 Total segment $ 6,444 $ 9,285 $ 9,967 $ 13,089 $ 38,785 $ 6,381 $ 9,411 $ 9,065 $ 7,779 $ 32,636 Segment sales disaggregated by sales type for the quarters ended June 30, 2019 and 2018 are as follows: 2019 2018 (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Product $ 1,511 $ 4,138 $ 3,305 $ 5,440 $ 14,394 $ 1,525 $ 4,213 $ 2,775 $ 3,340 $ 11,853 Service 1,837 824 1,845 1,136 5,642 1,819 822 1,961 622 5,224 Total segment $ 3,348 $ 4,962 $ 5,150 $ 6,576 $ 20,036 $ 3,344 $ 5,035 $ 4,736 $ 3,962 $ 17,077 Segment sales disaggregated by sales type for the six months ended June 30, 2019 and 2018 are as follows: 2019 2018 (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Product $ 2,791 $ 7,705 $ 6,278 $ 10,846 $ 27,620 $ 2,744 $ 7,811 $ 5,312 $ 6,528 $ 22,395 Service 3,653 1,580 3,689 2,243 11,165 3,637 1,600 3,753 1,251 10,241 Total segment $ 6,444 $ 9,285 $ 9,967 $ 13,089 $ 38,785 $ 6,381 $ 9,411 $ 9,065 $ 7,779 $ 32,636 |
Accounting Pronouncements
Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements, Policy [Text Block] | Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 328): Measurement of Credit Losses on Financial Instruments . This ASU amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables, and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this ASU and its related amendments. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . The new standard removes the disclosure requirements for the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. This standard did not have a material impact on our financial statement disclosures. We early adopted this standard effective January 1, 2019. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans . The new standard includes updates to the disclosure requirements for defined benefit plans including several additions, deletions and modifications to the disclosure requirements. The provisions of this ASU are effective for years beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this ASU. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The new standard provides updated guidance surrounding implementation costs associated with cloud computing arrangements that are service contracts. The provisions of this ASU are effective for years beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this ASU. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities . The amendments in this update for determining whether a decision-making fee is a variable interest require reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in generally accepted accounting principles (GAAP)). These amendments also will create alignment between determining whether a decision making fee is a variable interest and determining whether a reporting entity within a related party group is the primary beneficiary of a VIE. This will significantly reduce the risk that decision makers with insignificant direct and indirect interests could be deemed the primary beneficiary of a VIE. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this ASU. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 . The amendments in this update make targeted improvements to GAAP for collaborative arrangements as follows: clarify that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in Topic 606 should be applied, including recognition, measurement, presentation, and disclosure requirements; add unit-of-account guidance in Topic 808 to align with the guidance in Topic 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of Topic 606; and require that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this ASU. |
Acquisitions, Dispositions, G_2
Acquisitions, Dispositions, Goodwill and Other Intangible Assets Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The following is the expected amortization of intangible assets for the years 2019 through 2024 , which reflects the pattern of expected economic benefit on certain aerospace intangible assets. (dollars in millions) Remaining 2019 2020 2021 2022 2023 2024 Amortization expense $ 742 $ 1,427 $ 1,408 $ 1,407 $ 1,398 $ 1,378 |
Intangible Assets Disclosure [Table Text Block] | Identifiable intangible assets are comprised of the following: June 30, 2019 December 31, 2018 (dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Service portfolios $ 2,179 $ (1,656 ) $ 2,164 $ (1,608 ) Patents and trademarks 361 (245 ) 361 (236 ) Collaboration intangible assets 4,681 (779 ) 4,509 (649 ) Customer relationships and other 22,598 (5,099 ) 22,525 (4,560 ) 29,819 (7,779 ) 29,559 (7,053 ) Unamortized: Trademarks and other 3,923 — 3,918 — Total $ 33,742 $ (7,779 ) $ 33,477 $ (7,053 ) |
Schedule of Goodwill [Table Text Block] | Changes in our goodwill balances for the six months ended June 30, 2019 were as follows: (dollars in millions) Balance as of Goodwill Resulting from Business Combinations Foreign Currency Translation and Other Balance as of Otis $ 1,688 $ 7 $ (16 ) $ 1,679 Carrier 9,835 1 3 9,839 Pratt & Whitney 1,567 — (4 ) 1,563 Collins Aerospace Systems 35,001 255 — 35,256 Total Segments 48,091 263 (17 ) 48,337 Eliminations and other 21 — — 21 Total $ 48,112 $ 263 $ (17 ) $ 48,358 |
Rockwell Collins [Member] | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | Supplemental Pro-Forma Data: Rockwell Collins' results of operations have been included in UTC’s financial statements for the period subsequent to the completion of the acquisition on November 26, 2018. Rockwell Collins contributed sales of approximately $4.6 billion and operating profit of approximately $665 million for the six months ended June 30, 2019 . The following unaudited supplemental pro-forma data presents consolidated information as if the acquisition had been completed on January 1, 2017. The pro-forma results were calculated by combining the results of UTC with the stand-alone results of Rockwell Collins for the pre-acquisition periods, which were adjusted to account for certain costs that would have been incurred during this pre-acquisition period: Quarter Ended June 30, Six Months Ended June 30, (dollars in millions, except per share amounts) 2019 2018 2019 2018 Net sales $ 19,634 $ 18,810 $ 37,994 $ 36,131 Net income attributable to common shareowners $ 1,901 $ 2,266 $ 3,385 $ 3,742 Basic earnings per share of common stock $ 2.22 $ 2.66 $ 3.96 $ 4.39 Diluted earnings per share of common stock $ 2.20 $ 2.63 $ 3.92 $ 4.34 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, 2017, as adjusted for the applicable tax impact. Quarter Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Amortization of inventory and fixed asset fair value adjustment 1 $ — $ (5 ) $ 141 $ (10 ) Amortization of acquired Rockwell Collins intangible assets, net 2 — (53 ) — (106 ) Utilization of contractual customer obligation 3 — 8 — 10 UTC/Rockwell Collins fees for advisory, legal, accounting services 4 1 17 3 43 Interest expense incurred on acquisition financing, net 5 — (76 ) — (152 ) Elimination of capitalized pre-production engineering amortization 6 — 17 — 32 Adjustment to net periodic pension cost 7 — 11 — 22 Adjustment to reflect the adoption of ASC 606 8 — 29 — 58 Elimination of entities held for sale 9 — (5 ) (5 ) (12 ) $ 1 $ (57 ) $ 139 $ (115 ) 1 Reflects the elimination of the inventory step-up amortization recorded by UTC in 2019 as this would have been completed within the first two quarters of 2017. Additionally, this adjustment reflects the amortization of the fixed asset fair value adjustment as of the acquisition date. 2 Reflects the additional amortization of the acquired Rockwell Collins' intangible assets recognized at fair value in purchase accounting and eliminates the historical Rockwell Collins intangible asset amortization expense. 3 Reflects the additional amortization of liabilities recognized for acquired contracts with terms less favorable than could be realized in market transactions as of the acquisition date and eliminates Rockwell Collins historical amortization of these liabilities. 4 Reflects the elimination of transaction-related fees incurred by UTC and Rockwell Collins in connection with the acquisition and assumes all of the fees were incurred during the first quarter of 2017. 5 Reflects the additional interest expense incurred on debt to finance our acquisition of Rockwell Collins and reduces interest expense for the debt fair value adjustment which would have been amortized. 6 Reflects the elimination of Rockwell Collins capitalized pre-production engineering amortization to conform to UTC policy. 7 Reflects adjustments for the elimination of amortization of prior service cost and actuarial loss amortization, which was recorded by Rockwell Collins, as a result of fair value purchase accounting, net of the impact of the revised pension and post-retirement benefit (expense) as determined under UTC’s plan assumptions. 8 Reflects adjustments to Rockwell Collins revenue recognition as if they adopted the New Revenue Standard as of January 1, 2018 and primarily relates to capitalization of contract costs and changes in timing of sales recognition for contracts requiring an over time method of revenue recognition, partially offset by deferral of revenue recognized on OEM product engineering and development. 9 Reflects the elimination of entities required to be sold for regulatory approvals. The unaudited supplemental pro-forma financial information does not reflect the potential realization of cost savings related to the integration of the two companies. Further, the pro-forma data should not be considered indicative of the results that would have occurred if the acquisition and related financing had been consummated on January 1, 2017, nor are they indicative of future results. |
Acquisitions, Dispositions, G_3
Acquisitions, Dispositions, Goodwill and Other Intangible Assets Dispositions (Tables) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Dispositions of businesses | $ 133 | $ 1,094 | |
Assets held for sale | $ 175 | ||
Liabilities held for sale | 40 | ||
Inventories [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | 51 | ||
Property, Plant and Equipment [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | $ 37 |
Revenue Recognition Contract As
Revenue Recognition Contract Asset & Liability (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Contract Asset and Liability [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Assets and Liabilities. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. Total contract assets and contract liabilities as of June 30, 2019 and December 31, 2018 are as follows: (dollars in millions) June 30, 2019 December 31, 2018 Contract assets, current $ 4,334 $ 3,486 Contract assets, noncurrent (included within Other assets) 1,215 1,142 Total contract assets 5,549 4,628 Contract liabilities, current (6,219 ) (5,720 ) Contract liabilities, noncurrent (included within Other long-term liabilities) (5,190 ) (5,069 ) Total contract liabilities (11,409 ) (10,789 ) Net contract liabilities $ (5,860 ) $ (6,161 ) Contract assets increased $921 million during the six months ended June 30, 2019 primarily due to revenue recognition in excess of customer billings, primarily on Pratt & Whitney military and commercial aftermarket service agreements and various programs at Collins Aerospace Systems. Contract liabilities increased $620 million during the six months ended June 30, 2019 primarily due to customer billings in excess of revenue recognized on Pratt & Whitney commercial aftermarket service agreements, at Collins Aerospace across various programs, and on Otis maintenance contracts. We recognized revenue of $3.2 billion during the six months ended June 30, 2019 related to contract liabilities as of December 31, 2018 . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Quarter Ended June 30, Six Months Ended June 30, (dollars in millions, except per share amounts; shares in millions) 2019 2018 2019 2018 Net income attributable to common shareowners $ 1,900 $ 2,048 $ 3,246 $ 3,345 Basic weighted average number of shares outstanding 854.4 790.5 853.8 790.2 Stock awards and equity units (share equivalent) 9.3 9.1 8.5 9.8 Diluted weighted average number of shares outstanding 863.7 799.6 862.3 800.0 Earnings Per Share of Common Stock: Basic $ 2.22 $ 2.59 $ 3.80 $ 4.23 Diluted $ 2.20 $ 2.56 $ 3.76 $ 4.18 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | (dollars in millions) June 30, 2019 December 31, 2018 Raw materials $ 3,024 $ 3,052 Work-in-process 2,863 2,673 Finished goods 5,047 4,358 $ 10,934 $ 10,083 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt [Table Text Block] | (dollars in millions) June 30, 2019 December 31, 2018 Commercial paper $ 855 $ 1,257 Other borrowings 284 212 Total short-term borrowings $ 1,139 $ 1,469 |
Schedule of Long-term Debt [Table Text Block] | Long-term debt consisted of the following: (dollars in millions) June 30, 2019 December 31, 2018 LIBOR plus 0.350% floating rate notes due 2019 3 $ 350 $ 350 1.500% notes due 2019 1 650 650 1.950% notes due 2019 4 300 300 EURIBOR plus 0.15% floating rate notes due 2019 (€750 million principal value) 2 855 858 5.250% notes due 2019 4 300 300 8.875% notes due 2019 271 271 4.875% notes due 2020 1 171 171 4.500% notes due 2020 1 1,250 1,250 1.900% notes due 2020 1 1,000 1,000 EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value) 2 855 858 8.750% notes due 2021 250 250 3.100% notes due 2021 4 250 250 3.350% notes due 2021 1 1,000 1,000 LIBOR plus 0.650% floating rate notes due 2021 1,3 750 750 1.950% notes due 2021 1 750 750 1.125% notes due 2021 (€950 million principal value) 1 1,082 1,088 2.300% notes due 2022 1 500 500 2.800% notes due 2022 4 1,100 1,100 3.100% notes due 2022 1 2,300 2,300 1.250% notes due 2023 (€750 million principal value) 1 855 858 3.650% notes due 2023 1 2,250 2,250 3.700% notes due 2023 4 400 400 2.800% notes due 2024 1 800 800 3.200% notes due 2024 4 950 950 1.150% notes due 2024 (€750 million principal value) 1 855 858 3.950% notes due 2025 1 1,500 1,500 1.875% notes due 2026 (€500 million principal value) 1 569 573 2.650% notes due 2026 1 1,150 1,150 3.125% notes due 2027 1 1,100 1,100 3.500% notes due 2027 4 1,300 1,300 7.100% notes due 2027 141 141 6.700% notes due 2028 400 400 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) 1 569 573 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 4.500% notes due 2042 1 3,500 3,500 4.800% notes due 2043 4 400 400 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 4 1,000 1,000 4.625% notes due 2048 1 1,750 1,750 Project financing obligations 5 335 287 Other (including finance leases) 295 287 Total principal long-term debt 44,446 44,416 Other (fair market value adjustments, discounts and debt issuance costs) (334 ) (348 ) Total long-term debt 44,112 44,068 Less: current portion 6,202 2,876 Long-term debt, net of current portion $ 37,910 $ 41,192 1 We may redeem these notes at our option pursuant to their terms. 2 The three-month EURIBOR rate as of June 30, 2019 was approximately -0.345%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. 3 The three-month LIBOR rate as of June 30, 2019 was approximately 2.319%. 4 Rockwell Collins debt which remained outstanding following the Rockwell Merger. 5 Project financing obligations are associated with the sale of rights to unbilled revenues related to the ongoing activity of an entity owned by Carrier. |
Schedule of Weighted average interest rates [Table Text Block] | The average interest expense rate on our total borrowings for the quarters and six months ended June 30, 2019 and 2018 were as follows: Quarter Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Average interest expense rate 3.6 % 3.5 % 3.7 % 3.5 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Contributions to our plans were as follows: Quarter Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Defined benefit plans $ 47 $ 22 $ 79 $ 59 Defined contribution plans 134 105 287 199 We made contributions of $25 million to our domestic defined benefit pension plans in the quarter and six months ended June 30, 2019 . There were no contributions to our domestic defined benefit pension plans in the quarter and six months ended June 30, 2018 . Included in the current year contributions to employer sponsored defined contribution plans for the six months ended June 30, 2019 is $65 million of contributions to the Rockwell Collins participants. The following table illustrates the components of net periodic benefit (income) cost for our defined pension and other postretirement benefit plans: Pension Benefits Other Postretirement Benefits (dollars in millions) 2019 2018 2019 2018 Service cost $ 89 $ 93 $ 1 $ — Interest cost 340 278 8 6 Expected return on plan assets (608 ) (562 ) — — Amortization of prior service cost (credit) 4 (10 ) (11 ) (1 ) Recognized actuarial net loss (gain) 53 101 (3 ) (2 ) Net settlement and curtailment loss (gain) 1 (2 ) — — Total net periodic benefit (income) cost $ (121 ) $ (102 ) $ (5 ) $ 3 Pension Benefits Six Months Ended June 30, Other Postretirement Benefits Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Service cost $ 176 $ 186 $ 2 $ 1 Interest cost 680 557 16 12 Expected return on plan assets (1,215 ) (1,125 ) (1 ) — Amortization of prior service cost (credit) 9 (20 ) (22 ) (2 ) Recognized actuarial net loss (gain) 106 202 (6 ) (4 ) Net settlement and curtailment loss (gain) 9 (3 ) — — Total net periodic benefit (income) cost $ (235 ) $ (203 ) $ (11 ) $ 7 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
YTD Current and Prior Year Actions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Related Costs [Table Text Block] | We recorded charges in the segments as follows: (dollars in millions) Otis $ 40 Carrier 63 Pratt & Whitney 17 Collins Aerospace Systems 56 Eliminations and other 2 Total $ 178 Restructuring charges incurred during the six months ended June 30, 2019 primarily relate to actions initiated during 2019 and 2018 , and were recorded as follows: (dollars in millions) Cost of sales $ 82 Selling, general and administrative 96 Total $ 178 |
Current Year Actions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Related Costs [Table Text Block] | The following table summarizes expected, incurred and remaining costs for the 2019 restructuring actions by segment: (dollars in millions) Expected Costs Costs Incurred Quarter Ended March 31, 2019 Costs Incurred Quarter Ended June 30, 2019 Remaining Costs at June 30, 2019 Otis $ 48 $ (19 ) $ (14 ) $ 15 Carrier 77 (25 ) (24 ) 28 Pratt & Whitney 17 (14 ) (3 ) — Collins Aerospace Systems 44 (14 ) — 30 Eliminations and other 2 (1 ) (1 ) — Total $ 188 $ (73 ) $ (42 ) $ 73 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the accrual balance and utilization for the 2019 restructuring actions for the quarter and six months ended June 30, 2019 : (dollars in millions) Severance Facility Exit, Lease Termination and Other Costs Total Quarter Ended June 30, 2019 Restructuring accruals at March 31, 2019 $ 53 $ 15 $ 68 Net pre-tax restructuring costs 42 — 42 Utilization, foreign exchange and other costs (38 ) (4 ) (42 ) Balance at June 30, 2019 $ 57 $ 11 $ 68 Six Months Ended June 30, 2019 Net pre-tax restructuring costs $ 110 $ 5 $ 115 Utilization, foreign exchange and other costs (53 ) 6 (47 ) Balance at June 30, 2019 $ 57 $ 11 $ 68 |
Prior Year Actions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Related Costs [Table Text Block] | The following table summarizes expected, incurred and remaining costs for the 2018 restructuring actions by segment: (dollars in millions) Expected Costs Costs Incurred in 2018 Costs Incurred Quarter Ended March 31, 2019 Costs Incurred Quarter Ended June 30, 2019 Remaining Costs at June 30, 2019 Otis $ 58 $ (48 ) $ (5 ) $ (1 ) $ 4 Carrier 85 (64 ) (7 ) (6 ) 8 Pratt & Whitney 3 (3 ) — — — Collins Aerospace Systems 115 (87 ) (11 ) (9 ) 8 Eliminations and other 5 (5 ) — — — Total $ 266 $ (207 ) $ (23 ) $ (16 ) $ 20 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the accrual balances and utilization for the 2018 restructuring actions for the quarter and six months ended June 30, 2019 : (dollars in millions) Severance Facility Exit, Lease Termination and Other Costs Total Quarter Ended June 30, 2019 Restructuring accruals at March 31, 2019 $ 62 $ 9 $ 71 Net pre-tax restructuring costs 14 2 16 Utilization, foreign exchange and other costs (28 ) (2 ) (30 ) Balance at June 30, 2019 $ 48 $ 9 $ 57 Six Months Ended June 30, 2019 Restructuring accruals at December 31, 2018 $ 115 $ 23 $ 138 Net pre-tax restructuring costs 35 4 39 Utilization, foreign exchange and other costs (102 ) (18 ) (120 ) Balance at June 30, 2019 $ 48 $ 9 $ 57 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheets for derivative instruments as of June 30, 2019 and December 31, 2018 : (dollars in millions) Balance Sheet Location June 30, 2019 December 31, 2018 Derivatives designated as hedging instruments: Foreign exchange contracts Asset Derivatives: Other assets, current $ 16 $ 10 Other assets 19 12 Total asset derivatives $ 35 $ 22 Liability Derivatives: Accrued liabilities (59 ) (83 ) Other long-term liabilities (90 ) (111 ) Total liability derivatives $ (149 ) $ (194 ) Derivatives not designated as hedging instruments: Foreign exchange contracts Asset Derivatives: Other assets, current $ 79 $ 44 Other assets 7 19 Total asset derivatives $ 86 $ 63 Liability Derivatives: Accrued liabilities (80 ) (89 ) Other long-term liabilities (2 ) (3 ) Total liability derivatives $ (82 ) $ (92 ) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | The effect of cash flow hedging relationships on Accumulated other comprehensive income and on the Condensed Consolidated Statement of Operations for the quarters and six months ended June 30, 2019 and 2018 are presented in the table below. The amounts of gain or (loss) are attributable to foreign exchange contract activity and are recorded as a component of Product sales when reclassified from accumulated other comprehensive income. Quarter Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Gain (loss) recorded in Accumulated other comprehensive loss $ 21 $ (245 ) $ 28 $ (200 ) Loss (gain) reclassified from Accumulated other comprehensive loss into Product sales 16 (1 ) 20 (28 ) |
Other Income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | The effect of derivatives not designated as hedging instruments within Other income, net, on the Condensed Consolidated Statement of Operations was as follows: Quarter Ended June 30, Six Months Ended June 30, (dollars in millions) 2019 2018 2019 2018 Foreign exchange contracts $ 18 $ 19 $ 36 $ 70 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | In accordance with the provisions of ASC 820, the following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and non-recurring basis in our Condensed Consolidated Balance Sheet as of June 30, 2019 and December 31, 2018 : June 30, 2019 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 60 $ 60 $ — $ — Derivative assets 121 — 121 — Derivative liabilities (231 ) — (231 ) — December 31, 2018 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 51 $ 51 $ — $ — Derivative assets 85 — 85 — Derivative liabilities (286 ) — (286 ) — |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Condensed Consolidated Balance Sheet at June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (dollars in millions) Carrying Amount Fair Value Carrying Amount Fair Value Long-term receivables $ 384 $ 370 $ 334 $ 314 Customer financing notes receivable 283 282 272 265 Short-term borrowings (1,139 ) (1,139 ) (1,469 ) (1,469 ) Long-term debt (excluding finance leases) (44,027 ) (47,458 ) (43,996 ) (44,003 ) Long-term liabilities (422 ) (399 ) (508 ) (467 ) The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Condensed Consolidated Balance Sheet at June 30, 2019 and December 31, 2018 : June 30, 2019 (dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 370 $ — $ 370 $ — Customer financing notes receivable 282 — 282 — Short-term borrowings (1,139 ) — (855 ) (284 ) Long-term debt (excluding finance leases) (47,458 ) — (47,035 ) (423 ) Long-term liabilities (399 ) — (399 ) — December 31, 2018 (dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 314 $ — $ 314 $ — Customer financing notes receivable 265 — 265 — Short-term borrowings (1,469 ) — (1,258 ) (211 ) Long-term debt (excluding finance leases) (44,003 ) — (43,620 ) (383 ) Long-term liabilities (467 ) — (467 ) — |
Long-Term Financing Receivabl_2
Long-Term Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table summarizes the balance by class of aerospace business related long-term receivables as of June 30, 2019 and December 31, 2018 : (dollars in millions) June 30, 2019 December 31, 2018 Long-term trade accounts receivable $ 294 $ 269 Notes and leases receivable 256 258 Total long-term receivables $ 550 $ 527 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | A summary of the changes in each component of Accumulated other comprehensive loss, net of tax for the quarters and six months ended June 30, 2019 and 2018 is provided below: (dollars in millions) Foreign Currency Translation Defined Benefit Pension and Post- retirement Plans Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income Quarter Ended June 30, 2019 Balance at March 31, 2019 $ (2,932 ) $ (6,422 ) $ — $ (165 ) $ (9,519 ) Other comprehensive (loss) income before (435 ) (13 ) — 21 (427 ) Amounts reclassified, pre-tax (1 ) 43 — 16 58 Tax expense (benefit) reclassified 14 (6 ) — (12 ) (4 ) Balance at June 30, 2019 $ (3,354 ) $ (6,398 ) $ — $ (140 ) $ (9,892 ) Six Months Ended June 30, 2019 Balance at December 31, 2018 $ (3,442 ) $ (5,718 ) $ — $ (173 ) $ (9,333 ) Other comprehensive income (loss) before 95 (14 ) — 28 109 Amounts reclassified, pre-tax — 87 — 20 107 Tax expense (benefit) reclassified 1 (16 ) — (15 ) (30 ) ASU 2018-02 adoption impact (8 ) (737 ) — — (745 ) Balance at June 30, 2019 $ (3,354 ) $ (6,398 ) $ — $ (140 ) $ (9,892 ) (dollars in millions) Foreign Currency Translation Defined Benefit Pension and Post- retirement Plans Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income Quarter Ended June 30, 2018 Balance at March 31, 2018 $ (2,444 ) $ (4,579 ) $ — $ 86 $ (6,937 ) Other comprehensive (loss) income before (564 ) 18 — (245 ) (791 ) Amounts reclassified, pre-tax (3 ) 88 — (1 ) 84 Tax (benefit) expense reclassified (74 ) (26 ) — 60 (40 ) Balance at June 30, 2018 $ (3,085 ) $ (4,499 ) $ — $ (100 ) $ (7,684 ) Six Months Ended June 30, 2018 Balance at December 31, 2017 $ (2,950 ) $ (4,652 ) $ 5 $ 72 $ (7,525 ) Other comprehensive (loss) income before (188 ) 26 — (200 ) (362 ) Amounts reclassified, pre-tax (3 ) 176 — (28 ) 145 Tax expense (benefit) reclassified 56 (49 ) — 56 63 ASU 2016-01 adoption impact — — (5 ) — (5 ) Balance at June 30, 2018 $ (3,085 ) $ (4,499 ) $ — $ (100 ) $ (7,684 ) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities [Table Text Block] | The carrying amounts and classification of assets and liabilities for variable interest entities in our Condensed Consolidated Balance Sheet are as follows: (dollars in millions) June 30, 2019 December 31, 2018 Current assets $ 4,484 $ 4,732 Noncurrent assets 1,700 1,600 Total assets $ 6,184 $ 6,332 Current liabilities $ 5,121 $ 4,946 Noncurrent liabilities 1,884 1,898 Total liabilities $ 7,005 $ 6,844 |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Service and Product Warranties and Product Performance Guarantees [Abstract] | |
Product Warranty Disclosure [Table Text Block] | The changes in the carrying amount of service and product warranties and product performance guarantees for the six months ended June 30, 2019 and 2018 are as follows: (dollars in millions) 2019 2018 Balance as of January 1 $ 1,449 $ 1,146 Warranties and performance guarantees issued 309 233 Settlements made (241 ) (200 ) Other 5 (7 ) Balance as of June 30 $ 1,522 $ 1,172 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Supplemental operating lease cash flow information [Table Text Block] | (dollars in millions) Quarter Ended June 30, 2019 Six Months Ended June 30, 2019 Operating cash flows for the measurement of operating lease liabilities $ (192 ) $ (337 ) Operating lease right-of-use assets obtained in exchange for operating lease obligations 174 201 |
Balance Sheet Location, Operating Leases [Table Text Block] | (dollars in millions, except lease term and discount rate) June 30, 2019 Operating lease right-of-use assets $ 2,740 Accrued liabilities $ (580 ) Operating lease liabilities (2,258 ) Total operating lease liabilities $ (2,838 ) |
Supplemental Balance Sheet Information, Operating Leases [Table Text Block] | June 30, 2019 Weighted Average Remaining Lease Term (in years) 6.8 Weighted Average Discount Rate 3.6 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | (dollars in millions) Operating 1 2019 $ 344 2020 629 2021 543 2022 412 2023 287 Thereafter 878 Total undiscounted lease payments 3,093 Less imputed interest (255 ) Total discounted lease payments $ 2,838 |
Segment Financial Data (Tables)
Segment Financial Data (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Results for the quarters ended June 30, 2019 and 2018 are as follows: Net Sales Operating Profits Operating Profit Margins (dollars in millions) 2019 2018 2019 2018 2019 2018 Otis $ 3,348 $ 3,344 $ 515 $ 488 15.4 % 14.6 % Carrier 4,962 5,035 836 1,645 16.8 % 32.7 % Pratt & Whitney 5,150 4,736 424 397 8.2 % 8.4 % Collins Aerospace Systems 6,576 3,962 1,172 569 17.8 % 14.4 % Total segments 20,036 17,077 2,947 3,099 14.7 % 18.1 % Eliminations and other (402 ) (372 ) (239 ) (97 ) General corporate expenses — — (124 ) (126 ) Consolidated $ 19,634 $ 16,705 $ 2,584 $ 2,876 13.2 % 17.2 % Results for the six months ended June 30, 2019 and 2018 are as follows: Net Sales Operating Profits Operating Profit Margins (dollars in millions) 2019 2018 2019 2018 2019 2018 Otis $ 6,444 $ 6,381 $ 941 $ 938 14.6 % 14.7 % Carrier 9,285 9,411 1,365 2,237 14.7 % 23.8 % Pratt & Whitney 9,967 9,065 857 810 8.6 % 8.9 % Collins Aerospace Systems 13,089 7,779 2,028 1,157 15.5 % 14.9 % Total segments 38,785 32,636 5,191 5,142 13.4 % 15.8 % Eliminations and other (786 ) (689 ) (340 ) (108 ) General corporate expenses — — (222 ) (230 ) Consolidated $ 37,999 $ 31,947 $ 4,629 $ 4,804 12.2 % 15.0 % |
Schedule of Segment Reporting Information, by Geographic Markets [Table Text Block] | Geographic sales are attributed to the geographic regions based on their location of origin. Segment information for the quarters ended June 30, 2019 and 2018 is as follows: 2019 2018 (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Otis Carrier Pratt & Whitney Collins Aerospace Systems Total United States $ 904 $ 2,707 $ 3,967 $ 4,797 $ 12,375 $ 859 $ 2,618 $ 3,652 $ 2,776 $ 9,905 Europe 992 1,301 112 988 3,393 1,054 1,455 126 585 3,220 Asia Pacific 1,200 737 294 210 2,441 1,169 720 312 85 2,286 Other 252 217 777 581 1,827 262 242 646 516 1,666 Total segment $ 3,348 $ 4,962 $ 5,150 $ 6,576 $ 20,036 $ 3,344 $ 5,035 $ 4,736 $ 3,962 $ 17,077 Segment geographic information for the six months ended June 30, 2019 and 2018 is as follows: 2019 2018 (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Otis Carrier Pratt & Whitney Collins Aerospace Systems Total United States $ 1,816 $ 4,921 $ 7,699 $ 9,527 $ 23,963 $ 1,704 $ 4,713 $ 6,773 $ 5,430 $ 18,620 Europe 1,947 2,593 221 2,011 6,772 2,059 2,839 299 1,192 6,389 Asia Pacific 2,176 1,349 549 399 4,473 2,091 1,405 680 169 4,345 Other 505 422 1,498 1,152 3,577 527 454 1,313 988 3,282 Total segment $ 6,444 $ 9,285 $ 9,967 $ 13,089 $ 38,785 $ 6,381 $ 9,411 $ 9,065 $ 7,779 $ 32,636 |
Segment Reporting Disclosure, Product Type [Text Block] | Segment sales disaggregated by product type for the quarters ended June 30, 2019 and 2018 are as follows: 2019 2018 (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Commercial and industrial, non aerospace $ 3,348 $ 4,962 $ 5 $ 12 $ 8,327 $ 3,344 $ 5,035 $ 5 $ 15 $ 8,399 Commercial aerospace — — 3,538 4,855 8,393 — — 3,369 3,024 6,393 Military aerospace — — 1,607 1,709 3,316 — — 1,362 923 2,285 Total segment $ 3,348 $ 4,962 $ 5,150 $ 6,576 $ 20,036 $ 3,344 $ 5,035 $ 4,736 $ 3,962 $ 17,077 Segment sales disaggregated by product type for the six months ended June 30, 2019 and 2018 are as follows: 2019 2018 (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Commercial and industrial, non aerospace $ 6,444 $ 9,285 $ 28 $ 26 $ 15,783 $ 6,381 $ 9,411 $ 26 $ 30 $ 15,848 Commercial aerospace — — 6,913 9,683 16,596 — — 6,568 5,935 12,503 Military aerospace — — 3,026 3,380 6,406 — — 2,471 1,814 4,285 Total segment $ 6,444 $ 9,285 $ 9,967 $ 13,089 $ 38,785 $ 6,381 $ 9,411 $ 9,065 $ 7,779 $ 32,636 |
Segment Reporting Disclosure, Sales Type [Text Block] [Text Block] | Segment sales disaggregated by sales type for the quarters ended June 30, 2019 and 2018 are as follows: 2019 2018 (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Product $ 1,511 $ 4,138 $ 3,305 $ 5,440 $ 14,394 $ 1,525 $ 4,213 $ 2,775 $ 3,340 $ 11,853 Service 1,837 824 1,845 1,136 5,642 1,819 822 1,961 622 5,224 Total segment $ 3,348 $ 4,962 $ 5,150 $ 6,576 $ 20,036 $ 3,344 $ 5,035 $ 4,736 $ 3,962 $ 17,077 Segment sales disaggregated by sales type for the six months ended June 30, 2019 and 2018 are as follows: 2019 2018 (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Product $ 2,791 $ 7,705 $ 6,278 $ 10,846 $ 27,620 $ 2,744 $ 7,811 $ 5,312 $ 6,528 $ 22,395 Service 3,653 1,580 3,689 2,243 11,165 3,637 1,600 3,753 1,251 10,241 Total segment $ 6,444 $ 9,285 $ 9,967 $ 13,089 $ 38,785 $ 6,381 $ 9,411 $ 9,065 $ 7,779 $ 32,636 |
Acquisitions, Dispositions, G_4
Acquisitions, Dispositions, Goodwill and Other Intangible Assets (General Information) (Details) - USD ($) shares in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Nov. 26, 2018 | |
Business Acquisition [Line Items] | |||||
Acquisition Cost Of Acquired Entities and Interest in Affiliates | $ 32,000,000 | ||||
Proceeds from Issuance of Debt | $ 11,000,000,000 | ||||
Proceeds from Debt, Net of Issuance Costs | $ 10,900,000,000 | ||||
Goodwill Resulting from Business Combinations | 263,000,000 | ||||
Contractual Obligation, Due in Next Fiscal Year | $ 77,000,000 | 77,000,000 | |||
Contractual Obligation, Due in Second Year | 129,000,000 | 129,000,000 | |||
Contractual Obligation, Due in Third Year | 131,000,000 | 131,000,000 | |||
Contractual Obligation, Due in Fourth Year | 132,000,000 | 132,000,000 | |||
Contractual Obligation, Due in Fifth Year | $ 119,000,000 | 119,000,000 | |||
Business Combination, Acquisition Related Costs | $ 10,000,000 | $ 50,000,000 | |||
Raytheon Company [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Date of Acquisition Agreement | Jun. 9, 2019 | ||||
Business Acquisition, Name of Acquired Entity | Raytheon Company | ||||
Business Acquisition UTC stock payable | $ 2.3348 | ||||
Rockwell Collins [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Nov. 26, 2018 | ||||
Business Acquisition, Name of Acquired Entity | Rockwell Collins | ||||
Business Acquisition Cash Paid Per Share | $ 93.33 | ||||
Business Acquisition UTC stock payable | 0.37525 | ||||
Payments to Acquire Businesses, Gross | 15,533,000,000 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 14,900,000,000 | ||||
Stock Issued During Period, Shares, Acquisitions | 62.2 | ||||
Noncash or Part Noncash Acquisition, Debt Assumed | $ 7,800,000,000 | ||||
Noncash or Part Noncash Acquisition, Value of Assets Acquired | 30,600,000,000 | ||||
Stock Issued During Period, Value, Acquisitions | 7,960,000,000 | ||||
Business Combination, Consideration Transferred | 23,493,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 640,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 1,665,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 1,511,000,000 | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, contract with customer asset, current | 289,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 263,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 37,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,673,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 1,870,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 210,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 16,978,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | 2,254,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 515,000,000 | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, accrued liabilities current | 1,618,000,000 | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, contract with customer liabilities, current | 301,000,000 | ||||
Business Acquisition, Assumed Long-term Debt | 5,530,000,000 | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, liability, defined benefit plan, noncurrent | 502,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 3,481,000,000 | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, noncontrolling interest | 6,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 14,207,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 2,771,000,000 | ||||
Goodwill Resulting from Business Combinations | $ 20,722,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 23,493,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 10,690,000,000 | ||||
Fair value adjustment, inventory | 282,000,000 | ||||
Fair value adjustment, fixed assets | 269,000,000 | ||||
Contractual Obligation | 1,020,000,000 | ||||
Rockwell Collins [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 8,220,000,000 | ||||
Rockwell Collins [Member] | Customer Relationships [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||||
Rockwell Collins [Member] | Customer Relationships [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||
Rockwell Collins [Member] | Technology-Based Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 600,000,000 | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years |
Acquisitions, Dispositions, G_5
Acquisitions, Dispositions, Goodwill and Other Intangible Assets Pro Forma Financial Data (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | $ 19,634,000,000 | $ 16,705,000,000 | $ 37,999,000,000 | $ 31,947,000,000 |
Operating profit | 2,584,000,000 | 2,876,000,000 | 4,629,000,000 | 4,804,000,000 |
Rockwell Collins [Member] | ||||
Revenues | 4,600,000,000 | |||
Operating profit | 665,000,000 | |||
Business Acquisition, Pro Forma Revenue | 19,634,000,000 | 18,810,000,000 | 37,994,000,000 | 36,131,000,000 |
Business Acquisition, Pro Forma Net Income | $ 1,901,000,000 | $ 2,266,000,000 | $ 3,385,000,000 | $ 3,742,000,000 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 2.22 | $ 2.66 | $ 3.96 | $ 4.39 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 2.20 | $ 2.63 | $ 3.92 | $ 4.34 |
Pro Forma Nonrecurring Adjustment, Amortization of inventory and fixed asset fair value adjustment | $ 0 | $ (5,000,000) | $ 141,000,000 | $ (10,000,000) |
Pro Forma Nonrecurring Adjustment, Amortization of acquired Rockwell Collins intangible assets, net | 0 | (53,000,000) | 0 | (106,000,000) |
Pro Forma Nonrecurring Adjustment, Utilization of contractual customer obligation | 0 | 8,000,000 | 0 | 10,000,000 |
Pro Forma Nonrecurring Adjustment, UTC/Rockwell fees for advisory, legal, accounting services | 1,000,000 | 17,000,000 | 3,000,000 | 43,000,000 |
Pro Forma Nonrecurring Adjustment, Interest expense incurred on acquisition financing, net | 0 | (76,000,000) | 0 | (152,000,000) |
Pro Forma Nonrecurring Adjustment, Elimination of capitalized pre-production engineering amortization | 0 | 17,000,000 | 0 | 32,000,000 |
Pro Forma Nonrecurring Adjustment, Adjustment to net periodic pension cost | 0 | 11,000,000 | 0 | 22,000,000 |
Pro Forma Nonrecurring Adjustment, Adjustment to reflect the adoption of ASC 606 | 0 | 29,000,000 | 0 | 58,000,000 |
Pro Forma Nonrecurring Adjustment, Elimination of entities held for sale | 0 | (5,000,000) | (5,000,000) | (12,000,000) |
Pro Forma Nonrecurring Adjustments, Net | $ 1,000,000 | $ (57,000,000) | $ 139,000,000 | $ (115,000,000) |
Acquisition, Dispositions, Good
Acquisition, Dispositions, Goodwill and Other Intangible Assets (Goodwill) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | $ 48,112 |
Goodwill Resulting from Business Combinations | 263 |
Goodwill - Foreign Currency Translation and Other | (17) |
Goodwill - Ending Balance | 48,358 |
Otis [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 1,688 |
Goodwill Resulting from Business Combinations | 7 |
Goodwill - Foreign Currency Translation and Other | (16) |
Goodwill - Ending Balance | 1,679 |
Carrier [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 9,835 |
Goodwill Resulting from Business Combinations | 1 |
Goodwill - Foreign Currency Translation and Other | 3 |
Goodwill - Ending Balance | 9,839 |
Pratt & Whitney [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 1,567 |
Goodwill Resulting from Business Combinations | 0 |
Goodwill - Foreign Currency Translation and Other | (4) |
Goodwill - Ending Balance | 1,563 |
Collins Aerospace Systems [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 35,001 |
Goodwill Resulting from Business Combinations | 255 |
Goodwill - Foreign Currency Translation and Other | 0 |
Goodwill - Ending Balance | 35,256 |
Total Segments [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 48,091 |
Goodwill Resulting from Business Combinations | 263 |
Goodwill - Foreign Currency Translation and Other | (17) |
Goodwill - Ending Balance | 48,337 |
Eliminations and other [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 21 |
Goodwill Resulting from Business Combinations | 0 |
Goodwill - Foreign Currency Translation and Other | 0 |
Goodwill - Ending Balance | 21 |
Customer relationships and other [Member] | |
Goodwill [Line Items] | |
Goodwill, Purchase Accounting Adjustments | $ 100 |
Acquisitions, Dispositions, G_6
Acquisitions, Dispositions, Goodwill and Other Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 29,819 | $ 29,559 |
Accumulated Amortization | 7,779 | 7,053 |
Unamortized: Trademarks and Other | 3,923 | 3,918 |
Total Intangible Assets Gross Excluding Goodwill | 33,742 | 33,477 |
Service portfolios [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 2,179 | 2,164 |
Accumulated Amortization | 1,656 | 1,608 |
Patents and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 361 | 361 |
Accumulated Amortization | 245 | 236 |
Collaboration intangible assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 4,681 | 4,509 |
Accumulated Amortization | 779 | 649 |
Customer relationships and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 22,598 | 22,525 |
Accumulated Amortization | $ 5,099 | $ 4,560 |
Acquisitions, Dispositions, G_7
Acquisitions, Dispositions, Goodwill and Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Amortization of Intangible Assets | $ 348 | $ 232 | $ 722 | $ 455 |
Amortization Expense, Remaining 2019 | 742 | 742 | ||
Amortization Expense, 2020 | 1,427 | 1,427 | ||
Amortization Expense, 2021 | 1,408 | 1,408 | ||
Amortization Expense, 2022 | 1,407 | 1,407 | ||
Amortization Expense, 2023 | 1,398 | 1,398 | ||
Amortization Expense, 2024 | $ 1,378 | $ 1,378 |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, current | $ 4,334 | $ 3,486 |
Contract with Customer, Asset, Net, Noncurrent | 1,215 | 1,142 |
Contract with Customer, Asset | 5,549 | 4,628 |
Contract liabilities, current | 6,219 | 5,720 |
Contract with Customer, Liability, Noncurrent | 5,190 | 5,069 |
Contract with Customer, Liability | 11,409 | 10,789 |
Contract with Customer, Net | 5,860 | 6,161 |
Contract with Customer, Liability, Revenue Recognized | 3,200 | |
Capitalized Contract Cost, Net | 1,229 | 914 |
Revenue, Remaining Performance Obligation, Amount | $ 125,100 | $ 115,500 |
Revenue, Remaining Performance Obligations, to be recognized within 24 months | 45.00% | |
Contract with Customer, Asset, Change | $ 921 | |
Contract with Customer, Liability, Change | $ 620 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income attributable to common shareowners: | ||||
Net income attributable to common shareowners | $ 1,900 | $ 2,048 | $ 3,246 | $ 3,345 |
Basic weighted average number of shares outstanding | 854.4 | 790.5 | 853.8 | 790.2 |
Stock awards and equity units | 9.3 | 9.1 | 8.5 | 9.8 |
Diluted weighted average number of shares outstanding | 863.7 | 799.6 | 862.3 | 800 |
Earnings Per Share of Common Stock - Basic: | ||||
Net income from continuing operations | $ 2.22 | $ 2.59 | $ 3.80 | $ 4.23 |
Earnings Per Share of Common Stock - Diluted: | ||||
Net income from continuing operations | $ 2.20 | $ 2.56 | $ 3.76 | $ 4.18 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 11 | 5.1 | 13 | 5.1 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ 3,246 | $ 3,345 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,024 | $ 3,052 |
Work-in-process | 2,863 | 2,673 |
Finished goods | 5,047 | 4,358 |
Inventory, net | 10,934 | 10,083 |
Inventory Valuation Reserves | $ 1,405 | $ 1,270 |
Borrowings and Lines of Credi_2
Borrowings and Lines of Credit (Short-Term Borrowings) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Commercial paper | $ 855 | $ 1,257 |
Other borrowings | 284 | 212 |
Total short-term borrowings | $ 1,139 | $ 1,469 |
Borrowing and Lines of Credit (
Borrowing and Lines of Credit (Narrative) (Details) € in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019EUR (€) | |
Line of Credit Facility [Line Items] | |||
Aggregate Line of Credit Agreements, Maximum Borrowing Capacity | $ 10,350,000,000 | $ 10,350,000,000 | |
Maximum Commercial Paper Borrowing Authority | 6,350,000,000 | 6,350,000,000 | |
Commercial paper, euro-denominated | 855,000,000 | 855,000,000 | € 750 |
2.20B Revolving Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 2,200,000,000 | $ 2,200,000,000 | |
Line of Credit Facility, Expiration Date | Aug. 5, 2021 | ||
Borrowings under credit agreements | 0 | ||
2.15B Multicurrency Revolving Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 2,150,000,000 | $ 2,150,000,000 | |
Line of Credit Facility, Expiration Date | Aug. 5, 2021 | ||
Borrowings under credit agreements | 0 | ||
2.0B Revolving Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000,000,000 | $ 2,000,000,000 | |
Line of Credit Facility, Expiration Date | Mar. 15, 2021 | ||
Line of Credit Facility, Expiration Terms | 180 days after the date on which each of the separations of Otis and Carrier have been consummated | ||
Line of Credit Facility, Initiation Date | Mar. 15, 2019 | ||
Borrowings under credit agreements | 0 | ||
4.0B Term Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 4,000,000,000 | $ 4,000,000,000 | |
Line of Credit Facility, Expiration Date | Mar. 15, 2021 | ||
Line of Credit Facility, Expiration Terms | 180 days after the date on which each of the separations of Otis and Carrier have been consummated | ||
Line of Credit Facility, Initiation Date | Mar. 15, 2019 | ||
Borrowings under credit agreements | 0 | ||
1.5B Revolving Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Termination Date | Mar. 15, 2019 | ||
Termination Loans | 1,500,000,000 | $ 1,500,000,000 | |
Borrowings under credit agreements | $ 0 |
Borrowings and Lines of Credi_3
Borrowings and Lines of Credit (Long-Term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | ||||
Project financing obligations | [1] | $ 335 | $ 335 | $ 287 |
Other (including finance leases) | 295 | 295 | 287 | |
Total principal long-term debt | 44,446 | 44,446 | 44,416 | |
Other (fair market value adjustments and discounts) | (334) | (334) | (348) | |
Total long-term debt | 44,112 | 44,112 | 44,068 | |
Less: current portion | 6,202 | 6,202 | 2,876 | |
Long-term debt, net of current portion | 37,910 | $ 37,910 | 41,192 | |
LIBOR plus 0.350% floating rate notes due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Maturity Date, Description | 2019 | |||
Debt Instrument, Call Feature | The three-month LIBOR rate as of June 30, 2019 was approximately 2.319%. | |||
Debt Instrument, Carrying Amount | [2] | $ 350 | $ 350 | 350 |
Debt Instrument, Interest Rate Terms | LIBOR plus 0.350% floating rate notes due 2019 3 | |||
Notes 1.500% notes 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | ||
Debt Instrument, Maturity Date, Description | 2019 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 650 | $ 650 | 650 |
Notes 1.950% Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | 1.95% | ||
Debt Instrument, Maturity Date, Description | 2019 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | |||
Debt Instrument, Carrying Amount | [4] | $ 300 | $ 300 | 300 |
EURIBOR plus 0.15% floating rate notes due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.15% | 0.15% | ||
Debt Instrument, Maturity Date, Description | 2019 | |||
Debt Instrument, Call Feature | The three-month EURIBOR rate as of June 30, 2019 was approximately -0.345%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | |||
Debt Instrument, Carrying Amount | [5] | $ 855 | $ 855 | 858 |
Debt Instrument, Interest Rate Terms | EURIBOR plus 0.15% floating rate notes due 2019 (€750 million principal value) 2 | |||
Notes 5.250% Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | ||
Debt Instrument, Maturity Date, Description | 2019 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | |||
Debt Instrument, Carrying Amount | [4] | $ 300 | $ 300 | 300 |
Notes 8.875% Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.875% | 8.875% | ||
Debt Instrument, Maturity Date, Description | 2019 | |||
Debt Instrument, Carrying Amount | $ 271 | $ 271 | 271 | |
Notes 4.875% Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% | ||
Debt Instrument, Maturity Date, Description | 2020 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 171 | $ 171 | 171 |
Notes 4.500% Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||
Debt Instrument, Maturity Date, Description | 2020 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 1,250 | $ 1,250 | 1,250 |
Notes 1.900% Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.90% | 1.90% | ||
Debt Instrument, Maturity Date, Description | 2020 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 1,000 | $ 1,000 | 1,000 |
EURIBOR plus 0.20% floating rate notes due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Maturity Date, Description | 2020 | |||
Debt Instrument, Call Feature | The three-month EURIBOR rate as of June 30, 2019 was approximately -0.345%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | |||
Debt Instrument, Carrying Amount | [5] | $ 855 | $ 855 | 858 |
Debt Instrument, Interest Rate Terms | EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value) 2 | |||
Notes 8.750% Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | 8.75% | ||
Debt Instrument, Maturity Date, Description | 2021 | |||
Debt Instrument, Carrying Amount | $ 250 | $ 250 | 250 | |
Notes 3.100% Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | 3.10% | ||
Debt Instrument, Maturity Date, Description | 2021 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | |||
Debt Instrument, Carrying Amount | [4] | $ 250 | $ 250 | 250 |
Notes 3.350% Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.35% | 3.35% | ||
Debt Instrument, Maturity Date, Description | 2021 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 1,000 | $ 1,000 | 1,000 |
LIBOR plus 0.650% floating rate notes due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Maturity Date, Description | 2021 | |||
Debt Instrument, Call Feature | The three-month LIBOR rate as of June 30, 2019 was approximately 2.319%. | |||
Debt Instrument, Carrying Amount | [2],[3] | $ 750 | $ 750 | 750 |
Debt Instrument, Interest Rate Terms | LIBOR plus 0.650% floating rate notes due 2021 1,3 | |||
Notes 1.950% Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | 1.95% | ||
Debt Instrument, Maturity Date, Description | 2021 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 750 | $ 750 | 750 |
Note 1.125% Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.125% | 1.125% | ||
Debt Instrument, Maturity Date, Description | 2021 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [2] | $ 1,082 | $ 1,082 | 1,088 |
Notes 2.300% Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.30% | 2.30% | ||
Debt Instrument, Maturity Date, Description | 2022 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 500 | $ 500 | 500 |
Notes 2.800% Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | 2.80% | ||
Debt Instrument, Maturity Date, Description | 2022 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | |||
Debt Instrument, Carrying Amount | [4] | $ 1,100 | $ 1,100 | 1,100 |
Notes 3.100% Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | 3.10% | ||
Debt Instrument, Maturity Date, Description | 2022 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 2,300 | $ 2,300 | 2,300 |
Notes 1.250% due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | 1.25% | ||
Debt Instrument, Maturity Date, Description | 2023 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [2] | $ 855 | $ 855 | 858 |
Notes 3.650% Due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.65% | 3.65% | ||
Debt Instrument, Maturity Date, Description | 2023 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 2,250 | $ 2,250 | 2,250 |
Notes 3.700% Due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | 3.70% | ||
Debt Instrument, Maturity Date, Description | 2023 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | |||
Debt Instrument, Carrying Amount | [4] | $ 400 | $ 400 | 400 |
Notes 2.800% Due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | 2.80% | ||
Debt Instrument, Maturity Date, Description | 2024 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 800 | $ 800 | 800 |
Notes 3.200% Due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | 3.20% | ||
Debt Instrument, Maturity Date, Description | 2024 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | |||
Debt Instrument, Carrying Amount | [4] | $ 950 | $ 950 | 950 |
Notes 1.150% Due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.15% | 1.15% | ||
Debt Instrument, Maturity Date, Description | 2024 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [2] | $ 855 | $ 855 | 858 |
Notes 3.950% Due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | 3.95% | ||
Debt Instrument, Maturity Date, Description | 2025 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 1,500 | $ 1,500 | 1,500 |
Notes 1.875% Due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.875% | 1.875% | ||
Debt Instrument, Maturity Date, Description | 2026 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 569 | $ 569 | 573 |
Notes 2.650% Due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | 2.65% | ||
Debt Instrument, Maturity Date, Description | 2026 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 1,150 | $ 1,150 | 1,150 |
Notes 3.125% Due 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | ||
Debt Instrument, Maturity Date, Description | 2027 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 1,100 | $ 1,100 | 1,100 |
Notes 3.500% Due 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | ||
Debt Instrument, Maturity Date, Description | 2027 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | |||
Debt Instrument, Carrying Amount | [4] | $ 1,300 | $ 1,300 | 1,300 |
Notes 7.100% Due 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.10% | 7.10% | ||
Debt Instrument, Maturity Date, Description | 2027 | |||
Debt Instrument, Carrying Amount | $ 141 | $ 141 | 141 | |
Notes 6.700% Due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | 6.70% | ||
Debt Instrument, Maturity Date, Description | 2028 | |||
Debt Instrument, Carrying Amount | $ 400 | $ 400 | 400 | |
Notes 4.125% Due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | 4.125% | ||
Debt Instrument, Maturity Date, Description | 2028 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 3,000 | $ 3,000 | 3,000 |
Notes 7.500% Due 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | ||
Debt Instrument, Maturity Date, Description | 2029 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 550 | $ 550 | 550 |
Notes 2.150% Due 2030 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.15% | 2.15% | ||
Debt Instrument, Maturity Date, Description | 2030 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 569 | $ 569 | 573 |
Notes 5.400% Due 2035 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | 5.40% | ||
Debt Instrument, Maturity Date, Description | 2035 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 600 | $ 600 | 600 |
Notes 6.050% Due 2036 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.05% | 6.05% | ||
Debt Instrument, Maturity Date, Description | 2036 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 600 | $ 600 | 600 |
Notes 6.800% Due 2036 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | 6.80% | ||
Debt Instrument, Maturity Date, Description | 2036 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 134 | $ 134 | 134 |
Notes 7.000% Due 2038 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | ||
Debt Instrument, Maturity Date, Description | 2038 | |||
Debt Instrument, Carrying Amount | $ 159 | $ 159 | 159 | |
Notes 6.125% Due 2038 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | 6.125% | ||
Debt Instrument, Maturity Date, Description | 2038 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 1,000 | $ 1,000 | 1,000 |
Notes 4.450% Due 2038 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.45% | 4.45% | ||
Debt Instrument, Maturity Date, Description | 2038 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 750 | $ 750 | 750 |
Notes 5.700% Due 2040 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | 5.70% | ||
Debt Instrument, Maturity Date, Description | 2040 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 1,000 | $ 1,000 | 1,000 |
Notes 4.500% Due 2042 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||
Debt Instrument, Maturity Date, Description | 2042 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 3,500 | $ 3,500 | 3,500 |
Notes 4.800% Due 2043 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | 4.80% | ||
Debt Instrument, Maturity Date, Description | 2043 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | |||
Debt Instrument, Carrying Amount | [4] | $ 400 | $ 400 | 400 |
Notes 4.150% Due 2045 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | 4.15% | ||
Debt Instrument, Maturity Date, Description | 2045 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 850 | $ 850 | 850 |
Notes 3.750% Due 2046 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | ||
Debt Instrument, Maturity Date, Description | 2046 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 1,100 | $ 1,100 | 1,100 |
Notes 4.050% Due 2047 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.05% | 4.05% | ||
Debt Instrument, Maturity Date, Description | 2047 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 600 | $ 600 | 600 |
Notes 4.350% Due 2047 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | 4.35% | ||
Debt Instrument, Maturity Date, Description | 2047 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | |||
Debt Instrument, Carrying Amount | [4] | $ 1,000 | $ 1,000 | 1,000 |
Notes 4.625% Due 2048 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | ||
Debt Instrument, Maturity Date, Description | 2048 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | |||
Debt Instrument, Carrying Amount | [3] | $ 1,750 | $ 1,750 | $ 1,750 |
[1] | Project financing obligations are associated with the sale of rights to unbilled revenues related to the ongoing activity of an entity owned by Carrier. | |||
[2] | The three-month LIBOR rate as of June 30, 2019 was approximately 2.319%. | |||
[3] | We may redeem these notes at our option pursuant to their terms. | |||
[4] | Rockwell Collins debt which remained outstanding following the Rockwell Merger. | |||
[5] | The three-month EURIBOR rate as of June 30, 2019 was approximately -0.345%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. |
Borrowings and Lines of Credi_4
Borrowings and Lines of Credit Borrowings and lines of Credit (Current Year Actions) (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | |
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Debt | $ 11,000 | |||||
Average Years of Maturity of Long Term Debt | 10 years | |||||
Average interest expense rate | 3.60% | 3.50% | 3.70% | 3.50% | ||
Notes 3.350% Due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.35% | 3.35% | ||||
Debt Instrument, Maturity Date, Description | 2021 | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | ||||
Proceeds from Issuance of Debt | $ 1,000 | |||||
Notes 3.650% Due 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.65% | 3.65% | ||||
Debt Instrument, Maturity Date, Description | 2023 | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | ||||
Proceeds from Issuance of Debt | $ 2,250 | |||||
Notes 3.950% Due 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | 3.95% | ||||
Debt Instrument, Maturity Date, Description | 2025 | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | ||||
Proceeds from Issuance of Debt | $ 1,500 | |||||
Notes 4.125% Due 2028 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | 4.125% | ||||
Debt Instrument, Maturity Date, Description | 2028 | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | ||||
Proceeds from Issuance of Debt | $ 3,000 | |||||
Notes 4.450% Due 2038 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.45% | 4.45% | ||||
Debt Instrument, Maturity Date, Description | 2038 | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | ||||
Proceeds from Issuance of Debt | $ 750 | |||||
Notes 4.625% Due 2048 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | ||||
Debt Instrument, Maturity Date, Description | 2048 | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | ||||
Proceeds from Issuance of Debt | $ 1,750 | |||||
LIBOR plus 0.650% floating rate notes due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Maturity Date, Description | 2021 | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | ||||
Proceeds from Issuance of Debt | $ 750 | |||||
Notes 1.150% Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.15% | 1.15% | ||||
Debt Instrument, Maturity Date, Description | 2024 | |||||
Debt Instrument, Issuance Date | May 18, 2018 | May 18, 2018 | ||||
Proceeds from Issuance of Debt | € | € 750 | |||||
Notes 2.150% Due 2030 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.15% | 2.15% | ||||
Debt Instrument, Maturity Date, Description | 2030 | |||||
Debt Instrument, Issuance Date | May 18, 2018 | May 18, 2018 | ||||
Proceeds from Issuance of Debt | € | € 500 | |||||
EURIBOR plus 0.20% floating rate notes due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Maturity Date, Description | 2020 | |||||
Debt Instrument, Issuance Date | May 18, 2018 | May 18, 2018 | ||||
Proceeds from Issuance of Debt | € | € 750 | |||||
Variable-rate term loan due 2020 (1 month LIBOR plus 1.25%) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of Debt, Date | Dec. 14, 2018 | Dec. 14, 2018 | ||||
Repayments of Debt | $ 482 | |||||
Junior subordinated notes 1.778% due 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of Debt, Date | May 4, 2018 | May 4, 2018 | ||||
Repayments of Debt | $ 1,100 | |||||
EURIBOR plus 0.800% floating rate notes due 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of Debt, Date | Feb. 22, 2018 | Feb. 22, 2018 | ||||
Repayments of Debt | € | € 750 | |||||
Notes 6.800% Due 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of Debt, Date | Feb. 1, 2018 | Feb. 1, 2018 | ||||
Repayments of Debt | $ 99 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefit Changes) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Minimum [Member] | |
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | |
Decrease in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change | $ 140 |
Maximum [Member] | |
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | |
Decrease in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change | $ 490 |
Income Taxes Income Tax Examina
Income Taxes Income Tax Examination (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Closure of IRS audits of 2014-2016 and Italian Tax Authority amnesty program [Domain] | |
Income Tax Examination [Line Items] | |
Tax Settlement Gain (Loss) Noncash | $ 307 |
Interest Income [Member] | Closure of IRS audits of 2014-2016 and Italian Tax Authority amnesty program [Domain] | |
Income Tax Examination [Line Items] | |
Tax Settlement Gain (Loss) Noncash | 56 |
Minimum [Member] | |
Income Tax Examination [Line Items] | |
Tax Settlement Potential Gain (Loss) Noncash | 25 |
Maximum [Member] | |
Income Tax Examination [Line Items] | |
Tax Settlement Potential Gain (Loss) Noncash | $ 70 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension Contributions | $ 79 | $ 59 | ||
Contributions - Defined benefit plans | $ 47 | $ 22 | 79 | 59 |
Contributions - Defined contribution plans | 134 | 105 | 287 | 199 |
Domestic Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension Contributions | 25 | 0 | 25 | 0 |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 89 | 93 | 176 | 186 |
Interest cost | 340 | 278 | 680 | 557 |
Expected return on plan assets | 608 | 562 | 1,215 | 1,125 |
Amortization of prior service cost (credit) | 4 | (10) | 9 | (20) |
Recognized actuarial net loss (gain) | (53) | (101) | (106) | (202) |
Net settlement and curtailment (loss) gain | (1) | 2 | (9) | 3 |
Total net periodic benefit (income) cost | (121) | (102) | (235) | (203) |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 0 | 2 | 1 |
Interest cost | 8 | 6 | 16 | 12 |
Expected return on plan assets | 0 | 0 | 1 | 0 |
Amortization of prior service cost (credit) | (11) | (1) | (22) | (2) |
Recognized actuarial net loss (gain) | 3 | 2 | 6 | 4 |
Net settlement and curtailment (loss) gain | 0 | 0 | 0 | 0 |
Total net periodic benefit (income) cost | $ (5) | $ 3 | (11) | $ 7 |
Rockwell Collins Defined Contribution Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions - Defined contribution plans | $ 65 |
Restructuring and Other Costs_2
Restructuring and Other Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | $ 178 | |||
Cost of Sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 82 | |||
Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 96 | |||
Otis [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 40 | |||
Carrier [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 63 | |||
Pratt & Whitney [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 17 | |||
Collins Aerospace Systems [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 56 | |||
Eliminations and other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 2 | |||
Current Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | $ 42 | 115 | ||
Utilization, foreign exchange and other costs | (42) | (47) | ||
Restructuring Reserve | 68 | $ 68 | 68 | |
Restructuring and Related Cost, Expected Cost [Abstract] | ||||
Expected Costs | 188 | 188 | ||
Cost Incurred | 42 | 73 | ||
Remaining Costs | 73 | 73 | ||
Current Year Actions [Member] | Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 42 | 110 | ||
Utilization, foreign exchange and other costs | (38) | (53) | ||
Restructuring Reserve | 57 | 53 | 57 | |
Current Year Actions [Member] | Facility Exit, Lease Termination and Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 0 | 5 | ||
Utilization, foreign exchange and other costs | (4) | 6 | ||
Restructuring Reserve | 11 | 15 | 11 | |
Current Year Actions [Member] | Cost of Sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 43 | |||
Current Year Actions [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 72 | |||
Current Year Actions [Member] | Otis [Member] | ||||
Restructuring and Related Cost, Expected Cost [Abstract] | ||||
Expected Costs | 48 | 48 | ||
Cost Incurred | 14 | 19 | ||
Remaining Costs | 15 | 15 | ||
Current Year Actions [Member] | Carrier [Member] | ||||
Restructuring and Related Cost, Expected Cost [Abstract] | ||||
Expected Costs | 77 | 77 | ||
Cost Incurred | 24 | 25 | ||
Remaining Costs | 28 | 28 | ||
Current Year Actions [Member] | Pratt & Whitney [Member] | ||||
Restructuring and Related Cost, Expected Cost [Abstract] | ||||
Expected Costs | 17 | 17 | ||
Cost Incurred | 3 | 14 | ||
Remaining Costs | 0 | 0 | ||
Current Year Actions [Member] | Collins Aerospace Systems [Member] | ||||
Restructuring and Related Cost, Expected Cost [Abstract] | ||||
Expected Costs | 44 | 44 | ||
Cost Incurred | 0 | 14 | ||
Remaining Costs | 30 | 30 | ||
Current Year Actions [Member] | Eliminations and other [Member] | ||||
Restructuring and Related Cost, Expected Cost [Abstract] | ||||
Expected Costs | 2 | 2 | ||
Cost Incurred | 1 | 1 | ||
Remaining Costs | 0 | 0 | ||
Prior Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 16 | 39 | ||
Utilization, foreign exchange and other costs | (30) | (120) | ||
Restructuring Reserve | 57 | 71 | 57 | $ 138 |
Restructuring and Related Cost, Expected Cost [Abstract] | ||||
Expected Costs | 266 | 266 | ||
Cost Incurred | 16 | 23 | 207 | |
Remaining Costs | 20 | 20 | ||
Prior Year Actions [Member] | Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 14 | 35 | ||
Utilization, foreign exchange and other costs | (28) | (102) | ||
Restructuring Reserve | 48 | 62 | 48 | 115 |
Prior Year Actions [Member] | Facility Exit, Lease Termination and Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 2 | 4 | ||
Utilization, foreign exchange and other costs | (2) | (18) | ||
Restructuring Reserve | 9 | 9 | 9 | 23 |
Prior Year Actions [Member] | Cost of Sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 20 | |||
Prior Year Actions [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 19 | |||
Prior Year Actions [Member] | Otis [Member] | ||||
Restructuring and Related Cost, Expected Cost [Abstract] | ||||
Expected Costs | 58 | 58 | ||
Cost Incurred | 1 | 5 | 48 | |
Remaining Costs | 4 | 4 | ||
Prior Year Actions [Member] | Carrier [Member] | ||||
Restructuring and Related Cost, Expected Cost [Abstract] | ||||
Expected Costs | 85 | 85 | ||
Cost Incurred | 6 | 7 | 64 | |
Remaining Costs | 8 | 8 | ||
Prior Year Actions [Member] | Pratt & Whitney [Member] | ||||
Restructuring and Related Cost, Expected Cost [Abstract] | ||||
Expected Costs | 3 | 3 | ||
Cost Incurred | 0 | 0 | 3 | |
Remaining Costs | 0 | 0 | ||
Prior Year Actions [Member] | Collins Aerospace Systems [Member] | ||||
Restructuring and Related Cost, Expected Cost [Abstract] | ||||
Expected Costs | 115 | 115 | ||
Cost Incurred | 9 | 11 | 87 | |
Remaining Costs | 8 | 8 | ||
Prior Year Actions [Member] | Eliminations and other [Member] | ||||
Restructuring and Related Cost, Expected Cost [Abstract] | ||||
Expected Costs | 5 | 5 | ||
Cost Incurred | 0 | $ 0 | $ 5 | |
Remaining Costs | 0 | 0 | ||
Two Years Prior Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 24 | |||
Restructuring Reserve | $ 74 | $ 74 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | |||||
Derivatives designated as hedging instruments, Asset Derivatives | $ 35 | $ 35 | $ 22 | ||
Derivatives not designated as hedging instruments, Asset Derivatives | 86 | 86 | 63 | ||
Derivatives designated as hedging instruments, Liability Derivatives | 149 | 149 | 194 | ||
Derivatives not designated as hedging instruments, Liability Derivatives | 82 | 82 | 92 | ||
Four Quarter Rolling Average of Notional Amount of Foreign Exchange Contracts Hedging Foreign Currency Transactions | 18,200 | $ 18,200 | 20,100 | ||
Description of Net Investment Hedge Activity | We have €4.95 billion of euro-denominated long-term debt and €750 million of euro-denominated commercial paper borrowings outstanding, which qualify as a net investment hedge against our investments in European businesses. As of June 30, 2019, the net investment hedge is deemed to be effective. | ||||
Gain (loss) recorded in Accumulated other comprehensive loss | 21 | $ (245) | $ 28 | $ (200) | |
(Gain) loss reclassified from Accumulated other comprehensive loss into Product Sales (effective portion) | 16 | (1) | $ 20 | (28) | |
Maximum Length of Time, Foreign Currency Cash Flow Hedge | 4 years 22 days | ||||
Gain recognized in Other income, net | 18 | $ 19 | $ 36 | $ 70 | |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | (23) | (23) | |||
Other Current Assets [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivatives designated as hedging instruments, Asset Derivatives | 16 | 16 | 10 | ||
Derivatives not designated as hedging instruments, Asset Derivatives | 79 | 79 | 44 | ||
Other Noncurrent Assets [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivatives designated as hedging instruments, Asset Derivatives | 19 | 19 | 12 | ||
Derivatives not designated as hedging instruments, Asset Derivatives | 7 | 7 | 19 | ||
Accrued Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivatives designated as hedging instruments, Liability Derivatives | 59 | 59 | 83 | ||
Derivatives not designated as hedging instruments, Liability Derivatives | 80 | 80 | 89 | ||
Other Long-term Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivatives designated as hedging instruments, Liability Derivatives | 90 | 90 | 111 | ||
Derivatives not designated as hedging instruments, Liability Derivatives | $ 2 | $ 2 | $ 3 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy Classification) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term borrowings | $ 1,139 | $ 1,469 |
Portion at Other than Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term receivables | 384 | 334 |
Customer financing notes receivable | 283 | 272 |
Short-term borrowings | 1,139 | 1,469 |
Long-term debt (excluding finance leases) | 44,027 | 43,996 |
Long-term liabilities | 422 | 508 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term receivables | 370 | 314 |
Customer financing notes receivable | 282 | 265 |
Short-term borrowings | 1,139 | 1,469 |
Long-term debt (excluding finance leases) | 47,458 | 44,003 |
Long-term liabilities | 399 | 467 |
Fair Value Level 1 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term receivables | 0 | 0 |
Customer financing notes receivable | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt (excluding finance leases) | 0 | 0 |
Long-term liabilities | 0 | |
Fair Value Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term receivables | 370 | 314 |
Customer financing notes receivable | 282 | 265 |
Short-term borrowings | 855 | 1,258 |
Long-term debt (excluding finance leases) | 47,035 | 43,620 |
Long-term liabilities | 399 | 467 |
Fair Value Level 3 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term receivables | 0 | 0 |
Customer financing notes receivable | 0 | 0 |
Short-term borrowings | 284 | 211 |
Long-term debt (excluding finance leases) | 423 | 383 |
Long-term liabilities | 0 | 0 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 60 | 51 |
Derivative Assets | 121 | 85 |
Derivative Liabilities | 231 | 286 |
Fair Value, Recurring [Member] | Fair Value Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 60 | 51 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Derivative Assets | 121 | 85 |
Derivative Liabilities | 231 | 286 |
Fair Value, Recurring [Member] | Fair Value Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 0 | $ 0 |
Fair Value Measurements (Commer
Fair Value Measurements (Commercial Aerospace Financing Commitments) (Details) - USD ($) $ in Billions | Jun. 30, 2019 | Dec. 31, 2018 |
Commercial Aerospace [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing and other contractual commitments | $ 15.9 | $ 15.5 |
Long-Term Financing Receivabl_3
Long-Term Financing Receivables (Reserve and Additional Information) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Long Term Receivables High Credit Risk | $ 150 | $ 150 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 23 | $ 16 |
Long-Term Financing Receivabl_4
Long-Term Financing Receivables(Class and Credit Risk Information) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total long-term receivables | $ 550 | $ 527 |
Long-term trade accounts receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total long-term receivables | 294 | 269 |
Notes and leases receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total long-term receivables | $ 256 | $ 258 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Summary of Changes in AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (9,892) | $ (7,684) | $ (9,892) | $ (7,684) | $ (9,519) | $ (9,333) | $ (6,937) | $ (7,525) |
Amounts reclassified, pretax - Foreign Currency Translation | (1) | (3) | 0 | (3) | ||||
Tax (benefit) expense reclassified - Foreign Currency Translation | 14 | (74) | 1 | 56 | ||||
Other comprehensive (loss) income before reclassifications, net - Pension | (13) | 18 | (14) | 26 | ||||
Amounts reclassified, pretax - Pension | 43 | 88 | 87 | 176 | ||||
Tax (benefit) expense reclassified - Pension | (6) | (26) | (16) | (49) | ||||
Other comprehensive (loss) income before reclassifications, net - AFS Securities | 0 | 0 | 0 | 0 | ||||
Amounts reclassified, pretax - AFS Securities | 0 | 0 | 0 | 0 | ||||
Tax (benefit) expense reclassified - AFS Securities | 0 | 0 | 0 | 0 | ||||
Other comprehensive (loss) income before reclassifications, net - Unrealized Hedging (Losses) Gains | 21 | (245) | 28 | (200) | ||||
Amounts reclassified, pretax - Unrealized Hedging (Losses) Gains | 16 | (1) | 20 | (28) | ||||
Tax (benefit) expense reclassified - Unrealized Hedging (Losses) Gains | 12 | (60) | 15 | 56 | ||||
Other comprehensive (loss) income before reclassifications, net | (427) | (791) | 109 | (362) | ||||
Amounts reclassified, pretax | 58 | 84 | 107 | 145 | ||||
Tax (benefit) expense reclassified | (4) | (40) | (30) | 63 | ||||
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on foreign currency translation Arising During Period | 0 | |||||||
Other Comprehensive Income (Loss), ASU 2018-02 adoption impact on Securities Arising During Period | 0 | |||||||
Other Comprehensive Income (Loss), ASU 2018-02 adoption impact on foreign currency translation Arising During Period | (8) | |||||||
Other Comprehensive Income (Loss), ASU 2018-02 adoption impact on Defined Benefit Plan Arising During Period | (737) | |||||||
Other Comprehensive Income (Loss), ASU 2018-02 adoption impact on Derivatives Arising During Period | 0 | |||||||
Reclassification from OCI, current period, ASU 2018-02 adoption impact | (745) | |||||||
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on Defined Benefit Plan Arising During Period | 0 | |||||||
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on Securities Arising During Period | 0 | 0 | 0 | (5) | ||||
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on Derivatives Arising During Period | 0 | |||||||
Reclassification from OCI, current period, ASU 2016-01 adoption impact | (5) | |||||||
Foreign Currency Translation | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (3,354) | (3,085) | (3,354) | (3,085) | (2,932) | (3,442) | (2,444) | (2,950) |
Other comprehensive (loss) income before reclassifications, net - Foreign Currency Translation | (435) | (564) | 95 | (188) | ||||
Defined Benefit Pension and Post-retirement Plans | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (6,398) | (4,499) | (6,398) | (4,499) | (6,422) | (5,718) | (4,579) | (4,652) |
Unrealized Gains (Losses) on Available-for-Sale Securities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5 |
Unrealized hedging (losses) gains | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (140) | $ (100) | $ (140) | $ (100) | $ (165) | $ (173) | $ 86 | $ 72 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | ||
Total assets | $ 6,184 | $ 6,332 |
Total liabilities | 7,005 | 6,844 |
Current Assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 4,484 | 4,732 |
Current Liabilities | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 5,121 | 4,946 |
Noncurrent Assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 1,700 | 1,600 |
Noncurrent Liabilities | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | $ 1,884 | $ 1,898 |
IAE International Aero Engines AG | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Methodology for Determining Whether Entity is Primary Beneficiary | Pratt & Whitney holds a 61% net interest in the International Aero Engines AG (IAE) collaboration with MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC) and a 49.5% ownership interest in IAE. IAE's business purpose is to coordinate the design, development, manufacturing and product support of the V2500 program through involvement with the collaborators. | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 49.50% | |
International Aero Engines LLC | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Methodology for Determining Whether Entity is Primary Beneficiary | Additionally, Pratt & Whitney, JAEC and MTU are participants in International Aero Engines, LLC (IAE LLC), whose business purpose is to coordinate the design, development, manufacturing and product support for the PW1100G-JM engine for the Airbus A320neo aircraft and the PW1400G-JM engine for the Irkut MC21 aircraft. Pratt & Whitney holds a 59% net interest and a 59% ownership interest in IAE LLC. IAE and IAE LLC retain limited equity with the primary economics of the programs passed to the participants. | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 59.00% |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Product Warranty Liability [Line Items] | ||
Balance as of January 1 | $ 1,449 | $ 1,146 |
Warranties and performance guarantees issued | 309 | 233 |
Settlements made | 241 | 200 |
Other | 5 | (7) |
Balance as of June 30 | $ 1,522 | $ 1,172 |
Contingent Liabilities (Details
Contingent Liabilities (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
2019 U.S. Defense Contract Management Agency Claim Against Pratt & Whitney [Domain] | |
Loss Contingencies [Line Items] | |
Loss Contingency Lawsuit Filing Date | 4/1/2019 |
Loss Contingency Allegations | In April 2019, a Divisional Administrative Contracting Officer (DACO) of the United States Defense Contract Management Agency (DCMA) asserted a claim against Pratt & Whitney to recover overpayments of approximately $1.73 billion plus interest (approximately $506 million through June 30, 2019). The claim is based on Pratt & Whitney's alleged noncompliance with cost accounting standards from January 1, 2007 to March 31, 2019, due to its method of allocating independent research and development costs to government contracts. |
Loss Contingency Damages Sought | $1.73 billion |
Loss Contingency Actions Taken By Defendant | Pratt & Whitney believes that the claim is without merit and filed an appeal to the Armed Services Board of Contract Appeals (ASBCA) on June 7, 2019. |
Estimate of interest on tax benefit | 506 |
2013 U.S. Defense Contract Management Agency Claim Against Pratt & Whitney [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency Lawsuit Filing Date | December 24, 2013 |
Loss Contingency Allegations | As previously disclosed, in December 2013, a DCMA DACO asserted a claim against Pratt & Whitney to recover overpayments of approximately $177 million plus interest (approximately $92 million through June 30, 2019). The claim is based on Pratt & Whitney's alleged noncompliance with cost accounting standards from January 1, 2005 to December 31, 2012, due to its method of determining the cost of collaborator parts used in the calculation of material overhead costs for government contracts. In 2014, Pratt & Whitney filed an appeal to the ASBCA. An evidentiary hearing was held and completed in June 2019. The parties are now engaged in post-hearing briefing, and a decision from the ASBCA will follow. We continue to believe that the claim is without merit. In December 2018, a DCMA DACO issued a second claim against Pratt & Whitney that similarly alleges that its method of determining the cost of collaborator parts does not comply with the cost accounting standards for calendar years 2013 through 2017. |
Loss Contingency Damages Sought | $177 million |
Loss Contingency Actions Taken By Defendant | This second claim demands payment of $269 million plus interest (approximately $48.1 million through June 30, 2019), which we also believe is without merit and which Pratt & Whitney appealed to the ASBCA in January 2019. |
Estimate of interest on tax benefit | 92 |
German Tax Office Against Otis [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency Lawsuit Filing Date | August 3, 2012 |
Loss Contingency Allegations | As previously disclosed, UTC has been involved in administrative review proceedings with the German Tax Office, which concern approximately €215 million (approximately $245 million) of tax benefits that we have claimed related to a 1998 reorganization of the corporate structure of Otis operations in Germany. Upon audit, these tax benefits were disallowed by the German Tax Office. UTC estimates interest associated with the aforementioned tax benefits is an additional approximately €118 million (approximately $135 million). On August 3, 2012, we filed suit in the local German Tax Court (Berlin-Brandenburg). In March 2016, the local German Tax Court dismissed our suit, and we appealed this decision to the German Federal Tax Court (FTC). Following a hearing in July 2018, the FTC remanded the matter to the local German Tax Court for further proceedings. |
Loss Contingency Damages Sought | €215 million (approximately $245 million) |
Loss Contingency Actions Taken By Defendant | In 2015, UTC made tax and interest payments to German tax authorities of €275 million (approximately $300 million) in order to avoid additional interest accruals pending final resolution of this matter. |
Estimate of interest on tax benefit | €118 million (approximately $135 million) |
Loss Contingency, Interest Paid | €275 million (approximately $300 million) |
Asbestos Matter [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency Allegations | As previously disclosed, like many other industrial companies, we and our subsidiaries have been named as defendants in lawsuits alleging personal injury as a result of exposure to asbestos integrated into certain of our products or business premises. While we have never manufactured asbestos and no longer incorporate it in any currently-manufactured products, certain of our historical products, like those of many other manufacturers, have contained components incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or were covered in full or in part by insurance or other forms of indemnity. Additional cases were litigated and settled without any insurance reimbursement. The amounts involved in asbestos related claims were not material individually or in the aggregate in any year. |
Loss Contingency, Management's Assessment and Process | Our estimated total liability to resolve all pending and unasserted potential future asbestos claims through 2059 is approximately $328 million and is principally recorded in Other long-term liabilities on our Condensed Consolidated Balance Sheet as of June 30, 2019. This amount is on a pre-tax basis, not discounted, and excludes the Company’s legal fees to defend the asbestos claims (which will continue to be expensed by the Company as they are incurred). In addition, the Company has an insurance recovery receivable for probable asbestos related recoveries of approximately $147 million, which is included primarily in Other assets on our Condensed Consolidated Balance Sheet as of June 30, 2019. The amounts recorded by UTC for asbestos-related liabilities and insurance recoveries are based on currently available information and assumptions that we believe are reasonable. Our actual liabilities or insurance recoveries could be higher or lower than those recorded if actual results vary significantly from the assumptions. Key variables in these assumptions include the number and type of new claims to be filed each year, the outcomes or resolution of such claims, the average cost of resolution of each new claim, the amount of insurance available, the allocation methodologies, the contractual terms with each insurer with whom we have reached settlements, the resolution of coverage issues with other excess insurance carriers with whom we have not yet achieved settlements, and the solvency risk with respect to our insurance carriers. Other factors that may affect our future liability include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, legal rulings that may be made by state and federal courts, and the passage of state or federal legislation. At the end of each year, the Company will evaluate all of these factors and, with input from an outside actuarial expert, make any necessary adjustments to both our estimated asbestos liabilities and insurance recoveries. |
Loss Contingency, Estimate of Possible Loss | $ 328 |
Loss Contingency, Receivable | $ 147 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Finance Lease, Right-of-Use Asset | $ 74 | $ 74 | ||
Finance Lease, Liability | 85 | 85 | ||
Operating Lease, Expense | 220 | 379 | ||
Operating Lease, Payments | 192 | 337 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 174 | 201 | ||
Operating Lease, Right-of-Use Asset | 2,740 | 2,740 | $ 2,600 | $ 0 |
Operating Lease, Liability, Noncurrent | 2,258 | 2,258 | 0 | |
Operating Lease, Liability | $ 2,838 | $ 2,838 | $ 2,700 | |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 9 months 18 days | 6 years 9 months 18 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.60% | 3.60% | ||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 344 | $ 344 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 629 | 629 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 543 | 543 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 412 | 412 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 287 | 287 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 878 | 878 | ||
Lessee, Operating Lease, Liability, Payments, Due | 3,093 | 3,093 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 255 | 255 | ||
Operating Leases, Future Minimum Payments Due | 2,900 | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 683 | |||
Operating Leases, Future Minimum Payments, Due in Two Years | 544 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 407 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 301 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 235 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | $ 746 | |||
Accrued Liabilities [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Liability, Current | 580 | 580 | ||
Operating lease extensions [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Liability, Payments, Due | $ 225 | $ 225 |
Segment Financial Data (Details
Segment Financial Data (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 19,634 | $ 16,705 | $ 37,999 | $ 31,947 |
Operating profit | $ 2,584 | $ 2,876 | $ 4,629 | $ 4,804 |
Operating Profit Margin | 13.20% | 17.20% | 12.20% | 15.00% |
Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 5,150 | $ 4,736 | $ 9,967 | $ 9,065 |
Operating profit | $ 424 | $ 397 | $ 857 | $ 810 |
Operating Profit Margin | 8.20% | 8.40% | 8.60% | 8.90% |
Total Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 20,036 | $ 17,077 | $ 38,785 | $ 32,636 |
Operating profit | $ 2,947 | $ 3,099 | $ 5,191 | $ 5,142 |
Operating Profit Margin | 14.70% | 18.10% | 13.40% | 15.80% |
Otis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 3,348 | $ 3,344 | $ 6,444 | $ 6,381 |
Operating profit | $ 515 | $ 488 | $ 941 | $ 938 |
Operating Profit Margin | 15.40% | 14.60% | 14.60% | 14.70% |
Carrier [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 4,962 | $ 5,035 | $ 9,285 | $ 9,411 |
Operating profit | $ 836 | $ 1,645 | $ 1,365 | $ 2,237 |
Operating Profit Margin | 16.80% | 32.70% | 14.70% | 23.80% |
Eliminations and other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (402) | $ (372) | $ (786) | $ (689) |
Operating profit | (239) | (97) | (340) | (108) |
General corporate expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating profit | (124) | (126) | (222) | (230) |
Collins Aerospace Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 6,576 | 3,962 | 13,089 | 7,779 |
Operating profit | $ 1,172 | $ 569 | $ 2,028 | $ 1,157 |
Operating Profit Margin | 17.80% | 14.40% | 15.50% | 14.90% |
United States [Member] | Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 3,967 | $ 3,652 | $ 7,699 | $ 6,773 |
United States [Member] | Total Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 12,375 | 9,905 | 23,963 | 18,620 |
United States [Member] | Otis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 904 | 859 | 1,816 | 1,704 |
United States [Member] | Carrier [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,707 | 2,618 | 4,921 | 4,713 |
United States [Member] | Collins Aerospace Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,797 | 2,776 | 9,527 | 5,430 |
Europe [Member] | Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 112 | 126 | 221 | 299 |
Europe [Member] | Total Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,393 | 3,220 | 6,772 | 6,389 |
Europe [Member] | Otis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 992 | 1,054 | 1,947 | 2,059 |
Europe [Member] | Carrier [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,301 | 1,455 | 2,593 | 2,839 |
Europe [Member] | Collins Aerospace Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 988 | 585 | 2,011 | 1,192 |
Asia Pacific [Member] | Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 294 | 312 | 549 | 680 |
Asia Pacific [Member] | Total Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,441 | 2,286 | 4,473 | 4,345 |
Asia Pacific [Member] | Otis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,200 | 1,169 | 2,176 | 2,091 |
Asia Pacific [Member] | Carrier [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 737 | 720 | 1,349 | 1,405 |
Asia Pacific [Member] | Collins Aerospace Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 210 | 85 | 399 | 169 |
Other [Member] | Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 777 | 646 | 1,498 | 1,313 |
Other [Member] | Total Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,827 | 1,666 | 3,577 | 3,282 |
Other [Member] | Otis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 252 | 262 | 505 | 527 |
Other [Member] | Carrier [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 217 | 242 | 422 | 454 |
Other [Member] | Collins Aerospace Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 581 | 516 | 1,152 | 988 |
Commercial and industrial, non aerospace [Member] | Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 5 | 5 | 28 | 26 |
Commercial and industrial, non aerospace [Member] | Total Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,327 | 8,399 | 15,783 | 15,848 |
Commercial and industrial, non aerospace [Member] | Otis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,348 | 3,344 | 6,444 | 6,381 |
Commercial and industrial, non aerospace [Member] | Carrier [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,962 | 5,035 | 9,285 | 9,411 |
Commercial and industrial, non aerospace [Member] | Collins Aerospace Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 12 | 15 | 26 | 30 |
Commercial Aerospace [Member] | Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,538 | 3,369 | 6,913 | 6,568 |
Commercial Aerospace [Member] | Total Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,393 | 6,393 | 16,596 | 12,503 |
Commercial Aerospace [Member] | Otis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Commercial Aerospace [Member] | Carrier [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Commercial Aerospace [Member] | Collins Aerospace Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,855 | 3,024 | 9,683 | 5,935 |
Military aerospace [Member] | Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,607 | 1,362 | 3,026 | 2,471 |
Military aerospace [Member] | Total Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,316 | 2,285 | 6,406 | 4,285 |
Military aerospace [Member] | Otis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Military aerospace [Member] | Carrier [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Military aerospace [Member] | Collins Aerospace Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,709 | 923 | 3,380 | 1,814 |
Service [Member] | Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,845 | 1,961 | 3,689 | 3,753 |
Service [Member] | Total Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 5,642 | 5,224 | 11,165 | 10,241 |
Service [Member] | Otis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,837 | 1,819 | 3,653 | 3,637 |
Service [Member] | Carrier [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 824 | 822 | 1,580 | 1,600 |
Service [Member] | Collins Aerospace Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,136 | 622 | 2,243 | 1,251 |
Product [Member] | Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,305 | 2,775 | 6,278 | 5,312 |
Product [Member] | Total Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 14,394 | 11,853 | 27,620 | 22,395 |
Product [Member] | Otis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,511 | 1,525 | 2,791 | 2,744 |
Product [Member] | Carrier [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,138 | 4,213 | 7,705 | 7,811 |
Product [Member] | Collins Aerospace Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 5,440 | $ 3,340 | $ 10,846 | $ 6,528 |
Accounting Pronouncements (Deta
Accounting Pronouncements (Details) | 6 Months Ended |
Jun. 30, 2019 | |
ASU 2016-13 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 328): Measurement of Credit Losses on Financial Instruments. This ASU amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables, and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this ASU and its related amendments. |
ASU 2018-13 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The new standard removes the disclosure requirements for the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. This standard did not have a material impact on our financial statement disclosures. We early adopted this standard effective January 1, 2019. |
ASU 2018-14 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. The new standard includes updates to the disclosure requirements for defined benefit plans including several additions, deletions and modifications to the disclosure requirements. The provisions of this ASU are effective for years beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this ASU. |
ASU 2018-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The new standard provides updated guidance surrounding implementation costs associated with cloud computing arrangements that are service contracts. The provisions of this ASU are effective for years beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this ASU. |
ASU 2018-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. The amendments in this update for determining whether a decision-making fee is a variable interest require reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in generally accepted accounting principles (GAAP)). These amendments also will create alignment between determining whether a decision making fee is a variable interest and determining whether a reporting entity within a related party group is the primary beneficiary of a VIE. This will significantly reduce the risk that decision makers with insignificant direct and indirect interests could be deemed the primary beneficiary of a VIE. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this ASU. |
ASU 2018-18 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. The amendments in this update make targeted improvements to GAAP for collaborative arrangements as follows: clarify that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in Topic 606 should be applied, including recognition, measurement, presentation, and disclosure requirements; add unit-of-account guidance in Topic 808 to align with the guidance in Topic 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of Topic 606; and require that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this ASU. |