Cover
Cover | Oct. 27, 2020 |
Document Information [Line Items] | |
Amendment Flag | false |
Entity Central Index Key | 0000101829 |
Document Type | 8-K |
Document Period End Date | Oct. 27, 2020 |
Entity Registrant Name | RAYTHEON TECHNOLOGIES CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-00812 |
Entity Tax Identification Number | 06-0570975 |
Entity Address, Address Line One | 870 Winter Street, |
Entity Address, City or Town | Waltham, |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 02451 |
City Area Code | (781) |
Local Phone Number | 522-3000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Common Stock [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Common Stock ($1 par value) |
Trading Symbol | RTX |
Security Exchange Name | NYSE |
Notes 2.150% Due 2030 [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | 2.150% Notes due 2030 |
Trading Symbol | RTX 30 |
Security Exchange Name | NYSE |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 45,349 | $ 34,701 | $ 29,713 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 3,510 | 1,216 | 1,313 |
Income from discontinued operations, before income taxes | 4,091 | 5,776 | 5,241 |
Income tax expense | 1,874 | 1,528 | 1,789 |
Income from discontinued operations | 2,217 | 4,248 | 3,452 |
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations | 190 | 195 | 213 |
Net (loss) income from discontinued operations | $ 2,027 | $ 4,053 | $ 3,239 |
Net income from continuing operations attributable to common shareowners | $ 4.11 | $ 1.52 | $ 1.66 |
Net (loss) income from discontinued operations | 2.37 | 5.06 | 4.10 |
Net income from continuing operations attributable to common shareowners | 4.06 | 1.50 | 1.64 |
Net (loss) income from discontinued operations | $ 2.35 | $ 5 | $ 4.06 |
Costs and Expenses: | |||
Research and development | $ 2,452 | $ 1,878 | $ 1,876 |
Selling, general and administrative | 3,711 | 2,864 | 2,387 |
Total costs and expenses | 40,761 | 32,207 | 27,251 |
Other Income | 326 | 383 | 527 |
Operating profit | 4,914 | 2,877 | 2,989 |
Non-service pension cost (benefit) | (829) | (659) | (455) |
Interest Expense, net | 1,591 | 1,032 | 922 |
Income from continuing operations before income taxes | 4,152 | 2,504 | 2,522 |
Income tax expense | 421 | 1,098 | 1,054 |
Net income from continuing operations | 3,731 | 1,406 | 1,468 |
Less: Noncontrolling interest in subsidiaries' earnings from continuing operations | 221 | 190 | 155 |
Income from continuing operations attributable to common shareowners | 3,510 | 1,216 | 1,313 |
Net Income - Retained Earnings | $ 5,537 | $ 5,269 | $ 4,552 |
Earnings Per Share of Common Stock - Basic: | |||
Net income from continuing operations attributable to common shareowners | $ 4.11 | $ 1.52 | $ 1.66 |
Net income attributable to common shareowners | 6.48 | 6.58 | 5.76 |
Earnings Per Share of Common Stock - Diluted: | |||
Net income from continuing operations attributable to common shareowners | 4.06 | 1.50 | 1.64 |
Net income attributable to common shareowners | $ 6.41 | $ 6.50 | $ 5.70 |
Weighted average number of shares outstanding: | |||
Basic shares | 854,800,000 | 800,400,000 | 790,000,000 |
Diluted shares | 863,900,000 | 810,100,000 | 799,100,000 |
Product [Member] | |||
Revenues | $ 32,998 | $ 24,141 | $ 21,119 |
Cost of Goods and Services Sold | 26,910 | 21,083 | 16,385 |
Costs and Expenses: | |||
Cost of Goods and Services Sold | 26,910 | 21,083 | 16,385 |
Service [Member] | |||
Revenues | 12,351 | 10,560 | 8,594 |
Cost of Goods and Services Sold | 7,688 | 6,382 | 6,603 |
Costs and Expenses: | |||
Cost of Goods and Services Sold | $ 7,688 | $ 6,382 | $ 6,603 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 5,948 | $ 5,654 | $ 4,920 |
Foreign currency translation adjustments | |||
Foreign currency translation adjustments arising during period | 266 | (516) | 620 |
Reclassification adjustments for from sale of an investment in a foreign entity recognized in net income | (2) | 2 | 10 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 268 | (518) | 610 |
Tax expense (benefit) | 43 | 4 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 225 | (522) | 610 |
Change in pension and post-retirement benefit plans | |||
Net actuarial (loss) gain arising during period | (543) | (1,819) | 241 |
Prior service cost (credit) arising during period | 6 | 22 | (2) |
Amortization of prior service credit | 228 | 344 | 529 |
Other | (93) | 105 | (116) |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, Portion Attributable to Parent | (414) | (1,392) | 656 |
Tax expense (benefit) | 97 | 326 | (263) |
Other Comprehensive Income (Loss), Defined Benefit Plan, after Reclassification Adjustment, after Tax | (317) | (1,066) | 393 |
Unrealized gain (loss) on available-for-sale securities | |||
Unrealized holding gain arising during period | 0 | 0 | 5 |
Reclassification adjustments for gain included in Other income, net | 0 | 0 | 566 |
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on Securities Arising During Period | 0 | (5) | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | 0 | (5) | (561) |
Tax expense (benefit) | 0 | 0 | (213) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | 0 | (5) | (348) |
Change in unrealized cash flow hedging | |||
Unrealized cash flow hedging gain (loss) arising during period | (33) | (307) | 347 |
Gain (Loss) reclassified into Product sales | (51) | 16 | 39 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Portion Attributable to Parent | 18 | (323) | 308 |
Tax expense (benefit) | 11 | (78) | 74 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | 7 | (245) | 234 |
Other comprehensive (loss) income, net of tax | (85) | (1,838) | 889 |
Comprehensive income | 5,863 | 3,816 | 5,809 |
Less: Comprehensive income attributable to noncontrolling interest | 399 | 355 | 448 |
Comprehensive income atrributable to common shareowners | $ 5,464 | $ 3,461 | $ 5,361 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 4,937 | $ 3,693 |
Accounts receivable (net of allowance for doubtful accounts of $254 and $251) | 8,743 | 9,602 |
Allowance for doubtful accounts | 254 | 251 |
Contract with Customer, Asset, Net, Current | 4,462 | 3,666 |
Inventory, net | 9,047 | 8,081 |
Total assets related to discontinued operations | 31,823 | 30,740 |
Other assets, current | 2,565 | 1,896 |
Total Current Assets | 61,577 | 57,678 |
Customer financing assets | 3,463 | 3,010 |
Future income tax benefits | 884 | 999 |
Fixed assets, net | 10,322 | 9,906 |
Operating Lease, Right-of-Use Asset | 1,252 | 0 |
Goodwill | 36,609 | 36,590 |
Intangible assets, net | 24,473 | 24,642 |
Other assets | 1,035 | 1,386 |
Total Assets | 139,615 | 134,211 |
Liabilities and Equity | ||
Short-term borrowings | 2,293 | 1,428 |
Accounts payable | 7,816 | 7,859 |
Accrued liabilities | 9,770 | 9,395 |
Contract with Customer, Liability, Current | 9,014 | 7,818 |
Total liabilities related to discontinued operations | 14,443 | 12,628 |
Long-term debt currently due | 3,258 | 2,722 |
Total Current Liabilities | 46,594 | 41,850 |
Long-term debt | 37,701 | 41,041 |
Future pension and postretirement benefit obligations | 2,487 | 3,050 |
Operating Lease, Liability, Noncurrent | 1,093 | 0 |
Other long-term liabilities | 7,414 | 7,551 |
Total Liabilities | 95,289 | 93,492 |
Redeemable noncontrolling interest | 95 | 109 |
Capital Stock: | ||
Preferred Stock, $1 par value; 250,000 shares authorized; None issued or outstanding | $ 0 | 0 |
Preferred Stock, par value | $ 1 | |
Preferred Stock. shares authorized | 250,000 | |
Common Stock, $1 par value; 4,000,000 shares authorized; 1,450,845 and 1,446,961 shares issued | $ 23,019 | $ 22,514 |
Common Stock, par value | $ 1 | |
Common Stock, shares authorized | 4,000,000 | |
Common Stock, Shares, Issued | 1,450,845 | 1,446,961 |
Treasury Stock— 586,479 and 585,479 common shares at average cost | $ 32,626 | $ 32,482 |
Treasury Stock, shares | 586,479 | 585,479 |
Retained earnings | $ 61,594 | $ 57,823 |
Unearned ESOP shares | 64 | 76 |
Total Accumulated other comprehensive loss | (10,149) | (9,333) |
Total Shareowners' Equity | 41,774 | 38,446 |
Noncontrolling interest | 2,457 | 2,164 |
Total Equity | 44,231 | 40,610 |
Total Liabilities and Equity | $ 139,615 | $ 134,211 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - shares shares in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, shares issued | 0 | 0 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities of Continuing Operations: | |||
Income from continuing operations | $ 3,731 | $ 1,406 | $ 1,468 |
Adjustments to reconcile income from continuing operations to net cash flows provided by operating activities of continuing operations: | |||
Depreciation and amortization | 2,708 | 1,896 | 1,580 |
Deferred income tax provision | 38 | 763 | 103 |
Stock compensation cost | 268 | 169 | 129 |
Net periodic pension and other postretirement benefit | (566) | (392) | (185) |
Change in: | |||
Accounts receivable | (88) | 1,147 | 593 |
Contract assets, current | 679 | 651 | 0 |
Inventory | 1,267 | 417 | 866 |
Other current assets | 984 | 645 | 31 |
Accounts payable and accrued liabilities | 1,111 | 2,738 | 1,802 |
Contract liabilities, current | 1,234 | 325 | 0 |
Income Taxes | (293) | (246) | 1,744 |
Global pension contributions | 55 | 79 | 2,044 |
Canadian Government Settlement | (38) | (429) | (285) |
Other operating activities, net | (525) | 621 | 540 |
Net Cash Provided by Operating Activities, Continuing Operations | 5,821 | 2,670 | 2,282 |
Investing Activities of Continuing Operations: | |||
Capital expenditures | 1,868 | 1,467 | 1,556 |
Increase in customer financing assets | 787 | 988 | 1,189 |
Decrease in customer financing assets | 128 | 604 | 221 |
Investments in businesses | 9 | 15,039 | 25 |
Dispositions of businesses | 134 | 74 | 19 |
Increase in collaboration intangible assets | 351 | 400 | 380 |
Payments (receipts) from settlements of derivative contracts | (342) | (140) | 316 |
Other investing activities, net | 265 | 183 | (99) |
Net cash flows used in investing activities of continuing operations | (2,676) | (17,259) | (3,127) |
Financing Activities of Continuing Operations: | |||
Issuance of long-term debt | (19) | 13,337 | 4,852 |
Repayment of long-term debt | 2,693 | 2,520 | 1,501 |
(Decrease) increase in short-term borrowings, net | 896 | (370) | (263) |
Common Stock issued under employee stock plans | 27 | 36 | 31 |
Dividends paid on Common Stock | 2,442 | 2,170 | 2,074 |
Repurchase of Common Stock | 151 | 325 | 1,453 |
Inter-entity lending | 2,387 | 3,979 | 2,836 |
Other financing activities, net | 82 | 242 | 10 |
Net cash flows provided by (used in) financing activities of continuing operations | (1,913) | 12,209 | 2,438 |
Discontinued Operations: | |||
Net cash provided by operating activities | 3,062 | 3,652 | 3,349 |
Net cash (used in) provided by investing activities | (416) | 286 | 108 |
Net cash used in financing activities | (2,651) | (4,244) | (3,431) |
Net cash flows (used in) provided by discontinued operations | (5) | (306) | 26 |
Effect of foreign exchange rate changes on cash and cash equivalents | 1 | (6) | 34 |
Effect of Exchange Rate on Cash and Cash Equivalents, Discontinued Operations | (20) | (114) | 176 |
Net (decrease) increase in cash and cash equivalents | 1,208 | (2,806) | 1,829 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 3,731 | 6,118 | 4,486 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations, Beginning Balance | 2,481 | 2,900 | 2,703 |
Cash and Cash Equivalents, end of period | 7,420 | 6,212 | 9,018 |
Less: Restricted cash, included in Other assets | 24 | 38 | 10 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations, Ending Balance | 2,459 | 2,481 | 2,900 |
Cash and cash equivalents of continuing operations, end of year | 4,937 | 3,693 | 6,108 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid, net of amounts capitalized | 1,801 | 1,027 | 974 |
Income taxes paid, net of refunds | $ 1,768 | $ 1,714 | $ 1,326 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) shares in Thousands, $ in Millions | Total | ASU 2014-09 [Member] | Common Stock [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Unearned ESOP Shares [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Noncontrolling Interest |
Increase (Decrease) In Equity [Roll Forward] | ||||||||
Stockholders' Equity Attributable to Parent | $ 17,285 | $ (34,150) | $ 52,873 | $ (95) | $ (8,334) | |||
Noncontrolling interest | $ 1,590 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 29,169 | |||||||
Common Stock issued under employee plans | 331 | 7 | 10 | |||||
Common Stock repurchased | (1) | 1,453 | ||||||
Common Stock issued for Rockwell Collins | 0 | 0 | ||||||
Purchase (sale) of subsidiary shares from noncontrolling interest | (4) | |||||||
Redeemable noncontrolling interest fair value adjustment | (47) | (42) | ||||||
Net Income - Retained Earnings | 4,552 | 4,552 | ||||||
Dividends on Common Stock | 2,074 | |||||||
Dividends on ESOP Common Stock | 72 | |||||||
Reclassification from OCI, current period, ASU 2018-02 adoption impact | $ 0 | |||||||
Other | $ 0 | 5 | 1 | |||||
Other comprehensive income (loss), net of tax - AOCI | 809 | |||||||
Net Income - NCI | 368 | |||||||
Redeemable Noncontrolling Interest in subsidiaries' earnings | 17 | |||||||
Other comprehensive income (loss), net of tax - NCI | 56 | |||||||
Dividends attributable to noncontrolling interest | 336 | |||||||
Sale (purchase) of subsidiary shares in noncontrolling interest | 0 | |||||||
Acquisition (disposition) of noncontrolling interest | 14 | |||||||
Noncontrolling Interest, Increase from Capital Contributions | 135 | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 3,205 | |||||||
Stock Repurchased During Period, Shares | 12,900 | |||||||
Dividends Per Share of Common Stock | $ 2.72 | |||||||
Stockholders' Equity Attributable to Parent | 17,574 | (35,596) | 55,242 | (85) | (7,525) | |||
Noncontrolling interest | 1,811 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 31,421 | |||||||
Common Stock issued under employee plans | 423 | 6 | 9 | |||||
Common Stock repurchased | 0 | 329 | ||||||
Common Stock issued for Rockwell Collins | 4,523 | 3,437 | ||||||
Purchase (sale) of subsidiary shares from noncontrolling interest | 6 | |||||||
Redeemable noncontrolling interest fair value adjustment | 0 | 7 | ||||||
Net Income - Retained Earnings | 5,269 | 5,269 | ||||||
Dividends on Common Stock | 2,170 | |||||||
Dividends on ESOP Common Stock | 71 | |||||||
Reclassification from OCI, current period, ASU 2018-02 adoption impact | $ 0 | |||||||
Other | (480) | 26 | 6 | |||||
Other comprehensive income (loss), net of tax - AOCI | (1,808) | |||||||
Net Income - NCI | 385 | |||||||
Redeemable Noncontrolling Interest in subsidiaries' earnings | 4 | |||||||
Other comprehensive income (loss), net of tax - NCI | (30) | |||||||
Dividends attributable to noncontrolling interest | 315 | |||||||
Sale (purchase) of subsidiary shares in noncontrolling interest | (23) | |||||||
Acquisition (disposition) of noncontrolling interest | (8) | |||||||
Noncontrolling Interest, Increase from Capital Contributions | 342 | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 2,775 | |||||||
Stock Repurchased During Period, Shares | 2,727 | |||||||
Dividends Per Share of Common Stock | $ 2.84 | |||||||
Stockholders' Equity Attributable to Parent | $ 38,446 | 22,514 | (32,482) | 57,823 | (76) | (9,333) | ||
Noncontrolling interest | 2,164 | 2,164 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 40,610 | |||||||
Common Stock issued under employee plans | 525 | 7 | 12 | |||||
Common Stock repurchased | 0 | 151 | ||||||
Common Stock issued for Rockwell Collins | 0 | 0 | ||||||
Purchase (sale) of subsidiary shares from noncontrolling interest | 20 | |||||||
Redeemable noncontrolling interest fair value adjustment | 0 | 4 | ||||||
Net Income - Retained Earnings | 5,537 | 5,537 | ||||||
Dividends on Common Stock | 2,442 | |||||||
Dividends on ESOP Common Stock | 70 | |||||||
Reclassification from OCI, current period, ASU 2018-02 adoption impact | $ 745 | |||||||
Other | $ 0 | (3) | 0 | |||||
Other comprehensive income (loss), net of tax - AOCI | (816) | |||||||
Net Income - NCI | 411 | |||||||
Redeemable Noncontrolling Interest in subsidiaries' earnings | (7) | |||||||
Other comprehensive income (loss), net of tax - NCI | (12) | |||||||
Dividends attributable to noncontrolling interest | 268 | |||||||
Sale (purchase) of subsidiary shares in noncontrolling interest | 70 | |||||||
Acquisition (disposition) of noncontrolling interest | (23) | |||||||
Noncontrolling Interest, Increase from Capital Contributions | 108 | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 3,883 | |||||||
Stock Repurchased During Period, Shares | 1,133 | |||||||
Dividends Per Share of Common Stock | $ 2.94 | |||||||
Stockholders' Equity Attributable to Parent | $ 41,774 | $ 23,019 | $ (32,626) | $ 61,594 | $ (64) | $ (10,149) | ||
Noncontrolling interest | 2,457 | $ 2,457 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 44,231 |
Summary of Accounting Principle
Summary of Accounting Principles | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Accounting Principles | SUMMARY OF ACCOUNTING PRINCIPLES The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. Separation Transactions and Distributions. On April 3, 2020, United Technologies Corporation (UTC) (since renamed Raytheon Technologies Corporation) completed the previously announced separation of its business into three independent, publicly traded companies – UTC, Carrier Global Corporation (Carrier) and Otis Worldwide Corporation (Otis) (such separations, the Separation Transactions). UTC distributed all of the outstanding shares of Carrier common stock and all of the outstanding shares of Otis common stock to UTC shareowners who held shares of UTC common stock as of the close of business on March 19, 2020, the record date for the distributions (the Distributions). UTC distributed 866,158,910 and 433,079,455 shares of common stock of Carrier and Otis, respectively in the Distributions, each of which was effective at 12:01 a.m., Eastern Time, on April 3, 2020. The historical results of Otis and Carrier are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Unless otherwise indicated, amounts and activity throughout this Form 8-K are presented on a continuing operations basis, and includes the reclassification of certain long term assets and liabilities to current using the duration of the related contract or program as our operating cycle. Refer to “Note 3: Discontinued Operations” and “Consolidation” below for further details. Raytheon Merger. On April 3, 2020, following the completion of the Separation Transactions and the Distributions, pursuant to an Agreement and Plan of Merger dated June 9, 2019, as amended, UTC and Raytheon Company (Raytheon) completed the Raytheon Merger. Upon closing of the Raytheon Merger, Raytheon became a wholly-owned subsidiary of UTC, which changed its name to “Raytheon Technologies Corporation.” Throughout this Form 8-K filing, we may refer to the Company as “Raytheon Technologies Corporation” or “RTC” whether we are discussing events prior to or subsequent to the Raytheon Merger and name change. Consolidation. The Consolidated Financial Statements include the accounts of Raytheon Technologies Corporation and its controlled subsidiaries. Intercompany transactions have been eliminated. As a result of the Separation Transactions, we are now a focused aerospace and defense company with a defined operating cycle. Accordingly, to determine our classification of certain current assets and liabilities, the duration of our contracts or programs is utilized to determine our operating cycle, which is generally longer than one year. Included within our current assets and liabilities are contract assets and liabilities related to our aftermarket and development arrangements, which can generally span up to fifteen years. Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. Cash and Cash Equivalents. Cash and cash equivalents includes cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less. On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions or divestitures or other legal obligations. As of December 31, 2019 and 2018, the amount of such restricted cash was approximately $24 million and $38 million, respectively. Accounts Receivable. Accounts receivable are stated at their net estimated realized value. The allowance for doubtful accounts is based upon an assessment of customer creditworthiness, historical payment experience, and the age and status of outstanding receivables. Accounts receivable as of December 31, 2019 and December 31, 2018 includes unbilled receivables of $265 million and $439 million, respectively, which primarily includes unbilled receivables with commercial aerospace customers. See “Note 5: Commercial Aerospace Industry Assets and Commitments” for discussion of commercial aerospace industry assets and commitments. Unbilled receivables represent revenues that are not currently billable to the customer under the terms of the contract. These items are expected to be billed and collected in the normal course of business. Unbilled receivables where we have an unconditional right to payment are included in Accounts receivable. Contract Assets and Liabilities. Contract assets and liabilities represent the difference in the timing of revenue recognition from receipt of cash from our customers. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Performance obligations partially satisfied in advance of customer billings are included in contract assets. 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. See “Note 7: Contract Assets and Liabilities” for further discussion of contract assets and liabilities. Inventory. Inventory is stated at the lower of cost or estimated realizable value and are primarily based on first-in, first-out (FIFO) or average cost methods. Valuation reserves for excess, obsolete, and slow-moving inventory are estimated by comparing the inventory levels of individual parts to both future sales forecasts or production requirements and historical usage rates in order to identify inventory where the resale value or replacement value is less than inventoriable cost. Other factors that management considers in determining the adequacy of these reserves include whether individual inventory parts meet current specifications and cannot be substituted for a part currently being sold or used as a service part, overall market conditions, and other inventory management initiatives. Manufacturing costs are allocated to current production and firm contracts. Equity Method Investments. Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other assets on the Consolidated Balance Sheet. Under this method of accounting, our share of the net earnings or losses of the investee is included in Other income, net on the Consolidated Statement of Operations since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. RTC sells products to and purchases products from unconsolidated entities accounted for under the equity method, which are considered related parties. This activity is not considered material to the Consolidated Statement of Operations nor Consolidated Balance Sheet of RTC. Customer Financing Assets . Customer Financing Assets (CFA) primarily relate to the aerospace business in which we provide financing to airline customers. The most common types of financing include products under lease, notes receivable, long-term accounts receivable and lease receivable. We record revenue from lease assets by applying Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842, Leases, and from interest on the notes, accounts and lease receivables. Interest from notes and financing leases, rental income from operating lease assets and gains or losses on sales of operating lease assets is aggregated under the caption of “Other income, net” in the Consolidated Statement of Operations. The current portion of these financing arrangements are aggregated under the caption of “Other assets, current” and the non-current portions of these financing arrangements are aggregated under the caption of “Customer financing assets” in the Consolidated Balance Sheet. The increases and decreases in CFA from funding, receipts and certain other activity, are reflected as Investing Activities in the Consolidated Statement of Cash Flows. The product under lease assets are valued at cost and reviewed for impairment when circumstances indicate that the related carrying amounts may not be recoverable. Notes, accounts and lease receivable are valued at cost and reviewed for impairment when it is probable that we will be unable to collect amounts due. As of December 31, 2019 the reserves related to customer financing assets are not material. Business Combinations. We account for transactions that are classified as business combinations in accordance with FASB ASC Topic 805, “Business Combinations.” Once a business is acquired, the fair value of the identifiable assets acquired and liabilities assumed is determined with the excess cost recorded to goodwill. As required, a preliminary fair value is determined once a business is acquired, with the final determination of the fair value being completed within the one year measurement period from the date of acquisition. Goodwill and Intangible Assets. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Goodwill and indefinite-lived intangible assets are subject to annual impairment testing or when a triggering event occurs using the guidance and criteria described in the Intangibles - Goodwill and Other Topic of the FASB ASC. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. Intangible assets consist of patents, trademarks/tradenames, customer relationships and other intangible assets including collaboration assets, as discussed further in “Note 2: Business Acquisitions, Dispositions, Goodwill and Intangible Assets.” Acquired intangible assets are recognized at fair value in purchase accounting and then amortized to cost of sales and selling, general & administrative expenses over the applicable useful lives. Also included within other intangible assets are commercial aerospace payments made to secure certain contractual rights to provide product on new aircraft platforms. We classify amortization of such payments as a reduction of sales. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. Consideration paid on these contractual commitments is capitalized when it is no longer conditional. Useful lives of finite-lived intangible assets are estimated based upon the nature of the intangible asset and the industry in which the intangible asset is used. These intangible assets are amortized based on the pattern in which the economic benefits of the intangible assets are consumed. For both our commercial aerospace collaboration assets and exclusivity arrangements, the pattern of economic benefit generally results in lower amortization during the development period with increasing amortization as programs enter full rate production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined or if straight-line amortization approximates the pattern of economic benefit, a straight-line amortization method may be used. The range of estimated useful lives is as follows: Collaboration assets 30 years Customer relationships and related programs 1 to 32 years Patents & trademarks 5 to 30 years Exclusivity assets 5 to 25 years Leases. We account for leases in accordance with ASC Topic 842: Leases. Under Topic 842, the right-of-use model requires a lessee to record a right-of-use asset and a lease liability on the 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 Consolidated Statement of Operations. In addition, Topic 842 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 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 Consolidated Balance Sheet. Finance leases are not considered significant to our Consolidated Balance Sheet or Consolidated Statement of Operations. 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 leas e 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 gener ally have remaining lease terms of 1 to 20 years, some of which include options to extend leases. For the majority of our leases with options to extend, those options 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, the majority of which are classified as operating leases. These leases are not significant to our Consolidated Balance Sheet or Consolidated Statement of Operations. Other Long-Lived Assets. We evaluate the potential impairment of other long-lived assets whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. If the carrying value of other long-lived assets held and used exceeds the sum of the undiscounted expected future cash flows, the carrying value is written down to fair value. Income Taxes. 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. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest expense has also been recognized. We recognize accrued interest related to unrecognized tax benefits in interest expense. Penalties, if incurred, would be recognized as a component of income tax expense. On December 22, 2017 the TCJA was enacted. The TCJA contains a new law that subjects the Company to a tax on Global Intangible Low-Taxed Income (GILTI), beginning in 2018. GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The FASB has provi ded that companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences, including outside basis differences, expected to reverse as GILTI. We have elected to account for GILTI as a period cost, as incurred. Revenue Recognition. We account for revenue in accordance with ASC Topic 606: Revenue from Contracts with Customers. We adopted ASC 606 effective January 1, 2018 and elected the modified retrospective approach. The results for periods before 2018 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 . Under Topic 606, 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. Point in time revenue recognition. Performance obligations are satisfied as of a point in time for certain aerospace components, engines, and spare parts. Revenue is recognized when control of the product transfers to the customer, generally upon product shipment. Over-time revenue recognition. Performance obligations are satisfied over-time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being produced, or if the product being produced for the customer has no alternative use and we have a contractual right to payment. We recognize revenue on an over-time basis on certain long-term aerospace aftermarket contracts and aftermarket service work; and development, fixed price, and other cost reimbursement contracts. Revenue is recognized using costs incurred to date relative to total estimated costs at completion to measure progress for performance obligations satisfied over time. Incurred costs represent work performed, which correspond with and best depict transfer of control to the customer. Contract costs include labor, materials, and subcontractors’ costs, or other direct costs, and where applicable on government and commercial contracts, indirect costs. For certain of our long-term aftermarket contracts, revenue is recognized over the contract period. We generally account for such contracts as a series of daily obligations to stand ready to provide spare parts and product maintenance and aftermarket services. These arrangements include the sale of spare parts with integral services to our customers, and are generally classified as Service sales, with the corresponding costs classified in Cost of services sold, within the Consolidated Statement of Operations. Revenue is primarily recognized in proportion to cost as sufficient historical evidence indicates that the cost of performing services under the contract is incurred on an other than straight-line basis. Aerospace contract modifications are routine and contracts are often modified to account for changes in contract specifications or requirements. Contract modifications that are for goods or services that are not distinct are accounted for as part of the existing contract. 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 original equipment (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 OEM products performance obligations are satisfied. Capitalized contract fulfillment costs were $1,519 million and $914 million as of December 31, 2019 and 2018, respectively and are recognized in “Other assets” in our Consolidated Balance Sheet and are included in Other operating activities, net in our Consolidated Statement of Cash Flows . The increase in capitalized net contract fulfillment costs is driven by current year activity at Collins Aerospace Systems. Co sts to obtain contracts are not material. Loss provisions on OEM contracts are recognized to the extent that estimated contract costs exceed the estimated consideration from the products contemplated under the contractual arrangement. For new commitments, we generally record loss provisions at the earlier of contract announcement or contract signing except for certain contracts under which losses are recorded upon receipt of the purchase order that obligates us to perform. For existing commitments, anticipated losses on contractual arrangements are recognized in the period in which losses become evident. Products contemplated under contractual arrangements include firm quantities of product sold under contract and, in the commercial engine and wheels and brakes businesses, future highly probable sales of replacement parts required by regulation that are expected to be sold subsequently for incorporation into the original equipment. In the commercial engine and wheels and brakes businesses, when the combined original equipment and aftermarket arrangement for each individual sales campaign are profitable, we record original equipment product losses, as applicable, at the time of delivery. We review our cost estimates on significant contracts on a quarterly basis and for others, no less frequently than annually or when circumstances change and warrant a modification to a previous estimate. We record changes in contract estimates using the cumulative catch-up method. Operating profits included net unfavorable changes in contract estimates of approximately $69 million, $50 million, and $110 million in 2019, 2018 and 2017, respectively, primarily the result of unexpected increases in estimated costs related to Pratt & Whitney long-term aftermarket contracts. Collaborations. Sales generated from engine programs, spare parts sales, and aftermarket business under collaboration arrangements are recorded consistent with our revenue recognition policies in our Consolidated Financial Statements. Amounts attributable to our collaborators for their share of sales are recorded as cost of sales in our Consolidated Financial Statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement from collaborators of their share of program costs is recorded as a reduction of the related expense item at that time. Cash Payments to Customers. We may offer customers incentives to purchase our products, which may result in payments made to those customers. In addition, we make participation payments to certain aerospace customers to secure certain contractual rights. To the extent these rights are incremental and are supported by the incremental cash flows obtained, they are capitalized as intangible assets. Otherwise, such payments are recorded as a reduction in sales. We classify the subsequent amortization of the capitalized acquired intangible assets from our customers as a reduction in sales. Remaining Performance Obligations (RPO). RPO represents the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied. As of December 31, 2019 our total RPO was approximately $111.7 billion compared to $93.8 billion as of December 31, 2018. Of the total RPO as of December 31, 2019, we expect approximately 37% will be recognized as sales over the following 24 months. Research and Development. Research and development costs not specifically covered by contracts and those related to the company sponsored share of research and development activity in connection with cost-sharing arrangements are charged to expense as incurred. Government research and development support, not associated with specific contracts, is recorded as a reduction to research and development expense in the period earned. Research and development costs incurred under contracts with customers are included as a contract cost and reported as a component of cost of products sold when revenue from such contracts is recognized. Research and development costs in excess of contractual consideration are expensed as incurred. Foreign Exchange. We conduct business in many different currencies and, accordingly, are subject to the inherent risks associated with foreign exchange rate movements. The financial position and results of operations of substantially all of our foreign subsidiaries are measured using the local currency as the functional currency. Foreign currency denominated assets and liabilities are translated into U.S. Dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries are deferred as a separate component of shareowners' equity. Derivatives and Hedging Activity. We have used derivative instruments, including swaps, forward contracts and options, to help manage certain foreign currency, interest rate and commodity price exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. By their nature, all financial instruments involve market and credit risks. We enter into derivative and other financial instruments with major investment grade financial institutions and have policies to monitor the credit risk of those counterparties. We limit counterparty exposure and concentration of risk by diversifying counterparties. While there can be no assurance, we do not anticipate any material non-performance by any of these counterparties. We enter into transactions that are subject to enforceable master netting arrangements or similar agreements with various counterparties. However, we have not elected to offset multiple contracts with a single counterparty and, as a result, the fair value of the derivative instruments in a loss position is not offset against the fair value of derivative instruments in a gain position. Derivatives used for hedging purposes may be designated and effective as a hedge of the identified risk exposure at the inception of the contract. All derivative instruments are recorded on the balance sheet at fair value. Derivatives used to hedge foreign currency denominated balance sheet items are reported directly in earnings along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate. Gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income and reclassified to earnings as a component of product sales or expenses, as applicable, when the hedged transaction occurs. Gains and losses on derivatives designated as cash flow hedges are recorded in Other operating activities, net within the Consolidated Statement of Cash Flows. To the extent that a previously designated hedging transa ction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period it occurs. As discussed in Note 15, at December 31, 2019 we have approximately €4.20 billion of euro-denominated long-term debt, which qualifies as a net investment hedge against our investments in European businesses. To the extent the hedge accounting criteria are not met, the foreign currency forward contracts are utilized as economic hedges and changes in the fair value of these contracts are recorded currently in earnings in the period in which they occur. Additional information pertaining to foreign currency forward contracts and net investment hedging is included in Note 15. Environmental . Environmental investigatory, remediation, operating and maintenance costs are accrued when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including existing technology, current laws and regulations and prior remediation experience. Where no amount within a range of estimates is more likely, the minimum is accrued. For sites with multiple responsible parties, we consider our likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their obligations in establishing a provision for those costs. Liabilities with fixed or reliably determinable future cash payments are discounted. Accrued environmental liabilities are not reduced by potential insurance reimbursements. See Note 19 for additional details on the environmental remediation activities. Pension and Postretirement Obligations. Guidance under the Compensation - Retirement Benefits Topic of the FASB ASC requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Under this guidance, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit cost. Product Performance Obligations. We extend performance and operating cost guarantees beyond our normal service and warranty policies for extended periods on some of our products, particularly commercial aircraft engines. Liability under such guarantees is base |
Commercial Aerospace Industry Assets and Commitments | NOTE 5: COMMERCIAL AEROSPACE INDUSTRY ASSETS AND COMMITMENTS We have receivables and other financing assets with commercial aerospace industry customers totaling $11,293 million and $11,695 million at December 31, 2019 and 2018, respectively. These include customer financing assets related to commercial aerospace industry customers, consisting of products under lease of $3,185 million and $2,736 million, and notes and leases receivable of $308 million and $299 million, at December 31, 2019 and 2018, respectively. Aircraft financing commitments, in the form of debt or lease financing, are provided to commercial aerospace customers. The extent to which the financing commitments will be utilized is not currently known, since customers may be able to obtain more favorable terms from other financing sources. We may also arrange for third-party investors to assume a portion of these commitments. If financing commitments are exercised, debt financing is generally secured by assets with fair market values equal to or exceeding the financed amounts consistent with market terms and conditions. We may also lease aircraft and subsequently sublease the aircraft to customers under long-term non-cancelable operating leases. Our financing commitments with customers are contingent upon maintenance of certain levels of financial condition by the customers. We have also made residual value and other guarantees related to various commercial aerospace customer financing arrangements. The estimated fair market values of the guaranteed assets equal or exceed the value of the related guarantees, net of existing reserves. We have residual value and other guarantees of $333 million as of December 31, 2019. Partner share of these guarantees is $142 million. Refer to “Note 18: Guarantees” for additional discussion on guarantees. We also have other contractual commitments, including commitments to secure certain contractual rights to provide product on new aircraft platforms, which are included in “Other commercial aerospace commitments” in the table below. Payments made on these contractual commitments are included within other intangible assets and are to be amortized over the term of underlying economic benefit. Our commercial aerospace financing and other contractual commitments as of December 31, 2019 were approximately $15.0 billion. We have entered into certain collaboration arrangements, which may include participation by our collaboration partners in these commitments. The following is the expected maturity of commercial aerospace industry assets and commitments as of December 31, 2019: (dollars in millions) Committed 2020 2021 2022 2023 2024 Thereafter Notes and leases receivable $ 308 $ 30 $ 23 $ 14 $ 22 $ 38 $ 181 Commercial aerospace financing commitments $ 3,937 $ 911 $ 1,119 $ 974 $ 819 $ 44 $ 70 Other commercial aerospace commitments 11,055 702 736 717 668 627 7,605 Collaboration partners’ share (5,284) (508) (623) (571) (538) (193) (2,851) Total commercial commitments $ 9,708 $ 1,105 $ 1,232 $ 1,120 $ 949 $ 478 $ 4,824 In connection with our 2012 agreement to acquire Rolls-Royce’s ownership and collaboration interests in IAE AG, additional payments are due to Rolls-Royce contingent upon each hour flown through June 2027 by the V2500-powered aircraft in service as of the acquisition date. These flight hour payments, included in “Other commercial aerospace commitments” in the table above, are being capitalized as collaboration intangible assets. We have long-term aftermarket maintenance contracts with commercial aerospace industry customers for which revenue is recognized over-time in proportion to actual costs incurred relative to total expected costs to be incurred over the respective contract periods. Billings, however, are typically based on factors such as aircraft or engine flight hours. The timing differences between the billings and the maintenance costs incurred generates both Contract assets and Contract liabilities. Additionally, we have other contracts with commercial aerospace industry customers which can result in the generation of Contract assets and Contract liabilities. Contract assets totaled $2,741 million and $2,247 million at December 31, 2019 and 2018, respectively, and are included in “Contract assets, current” and “Other assets” in the accompanying Consolidated Balance Sheet. Allowance for doubtful accounts was $248 million and $245 million at December 31, 2019 and 2018, respectively. Reserves related to financing commitments and guarantees were $7 million and $15 million at December 31, 2019 and 2018, respectively. In addition, in connection with the acquisition of Rockwell Collins in 2018 and Goodrich in 2012, we recorded assumed liabilities of approximately $1.02 billion and $2.2 billion, respectively related to customer contractual obligations on certain programs with terms less favorable than could be realized in market transactions as of the acquisition date. These liabilities are being liquidated in accordance with the underlying pattern of obligations, as reflected by the net cash outflows incurred on the contracts. Total consumption of the contractual obligations for the years ended December 31, 2019 and 2018 was approximately $345 million and $252 million, respectively. The balance of the contractual obligations at December 31, 2019 was $1,408 million, with future consumption expected to be as follows: $263 million in 2020, $189 million in 2021, $148 million in 2022, $118 million in 2023, $127 million in 2024 and $563 million thereafter. We also have intangible assets associated with commercial aerospace. Refer to “Note 2: Business Acquisitions, Dispositions, Goodwill and Intangible Assets” for discussion of intangible assets. Refer to “Note 1: Summary of Accounting Principles” for discussion of contract fulfillment costs. Refer to “Note 20: Leases” for discussion of leases, including those that were disclosed as commitments prior to the adoption of ASC 842. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | BUSINESS ACQUISITIONS, DISPOSITIONS, GOODWILL AND INTANGIBLE ASSETS Business Acquisitions. Our investments in businesses net of cash acquired in 2019, 2018 and 2017 totaled $9 million, $30,783 million (including debt assumed of $7,784 million and stock issued of $7,960 million), and $25 million respectively. Our investments in businesses in 2018 primarily consisted of the acquisition of Rockwell Collins, Inc. (Rockwell Collins). As previously described in “Note 1: Summary of Accounting Principles,” on June 9, 2019, UTC entered into a merger agreement with 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. On October 11, 2019, the shareowners of each of UTC and Raytheon approved the proposals necessary to complete the Raytheon merger. The Raytheon merger is expected to close early in the second quarter 2020 and is subject to customary closing conditions, including receipt of required regulatory approvals, as well as 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 Acquisition), 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 acquisition 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 Acquisition (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 Acquisition Consideration), less any applicable withholding taxes, with cash paid in lieu of fractional shares. The total aggregate consideration payable in the Rockwell Acquisition 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 Acquisition. 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 Acquisition 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. Final Allocation of Consideration Transferred to Net Assets Acquired: The table below represents the final determination of the fair value of identifiable assets acquired and liabilities assumed from the Rockwell Collins acquisition after utilizing the one year measurement period allowed by the FASB ASC Topic 805, “Business Combinations.” (dollars in millions) Cash and cash equivalents $ 640 Accounts receivable 1,659 Inventory 1,487 Contract assets, current 320 Other assets, current 251 Future income tax benefits 38 Fixed assets 1,542 Intangible assets: Customer relationships 8,720 Tradenames/trademarks 1,870 Developed technology 600 Other assets 217 Total identifiable assets acquired 17,344 Short-term borrowings 2,254 Accounts payable 520 Accrued liabilities 1,663 Contract liabilities, current 299 Long-term debt 5,530 Future pension and postretirement benefit obligation 502 Other long-term liabilities 3,614 Noncontrolling interest 6 Total liabilities acquired 14,388 Total identifiable net assets 2,956 Goodwill 20,537 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 re sults. Fair value adjustments to Rockwell Collins’ identified assets and liabilities resulted in an increase in inventory and fixed assets of $282 million and $244 million, resp ectively. 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. This 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 23 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 valuation of 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 Acquired customer relationships $ 8,720 10-23 years Acquired tradenames/trademarks 1,870 indefinite Acquired developed technology 600 15 years $ 11,190 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 approximate ly $1.02 billion in connection with the Rockwell Acquisition. 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 in 2019 was $129 million. Total consumption of the contractual obligation for the next five years is expected to be as follows: $104 million in 2020, $104 million in 2021, $112 million in 2022, $96 million in 2023, and $101 million in 2024. Acquisition-Related Costs: Acquisition-related costs have been expensed as incurred. In 2019, 2018, and 2017 approximately $40 million, $112 million, and $39 million respectively, of transaction and integration costs have been incurred. These costs were recorded in Selling, general and administrative expenses within the Consolidated Statement of Operations. Supplemental Pro-Forma Data: Rockwell Collins’ results of operations have been included in RTC’s financial statements for the period subsequent to the completion of the acquisition on N ovember 26, 2018. Rockwell Collins contributed sales of approximately $778 million and operating profit of approximately $11 million for the year ended December 31, 2018. 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 RTC 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: Year Ended December 31, (dollars in millions, except per share amounts; shares in millions) 2018 2017 Net sales $ 42,336 $ 37,909 Net income attributable to common shareowners from continuing operations $ 2,011 $ 1,423 Basic earnings per share of common stock from continuing operations $ 2.26 $ 1.66 Diluted earnings per share of common stock from continuing operations $ 2.24 $ 1.65 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. As our acquisition of Rockwell Collins was completed on November 26, 2018, the pro-forma adjustments in the table below only include the required adjustments through November 26, 2018: Year Ended December 31, (dollars in millions) 2018 2017 Amortization of inventory and fixed asset fair value adjustment (1) 58 $ (192) Amortization of acquired Rockwell Collins intangible assets, net (2) (193) (202) Utilization of contractual customer obligation (3) 16 116 RTC/Rockwell fees for advisory, legal, accounting services (4) 212 (212) Interest expense incurred on acquisition financing, net (5) (199) (234) Elimination of capitalized pre-production engineering amortization (6) 63 42 Adjustment to net periodic pension cost (7) 42 34 Adjustment to reflect the adoption of ASC 606 (8) 106 — Elimination of entities held for sale (9) (47) (35) Inclusion of B/E Aerospace (10) — (51) $ 58 $ (734) (1) 2018 reflects the elimination of the inventory step-up amortization recorded by RTC in 2018 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) 2018 reflects the elimination of transaction-related fees incurred by RTC 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 RTC 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 RTC’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. (10) Reflects adjustments to include the results and related adjustments for B/E Aerospace as if it had been acquired by Rockwell Collins on January 1, 2017. 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 2019 w ere $134 million and prim arily 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 RTC’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 RTC’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 included 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. As further discussed in “Note 3: Discontinued Operations,” on April 2, 2020, Carrier and Otis entered into a Separation and Distribution Agreement with UTC, pursuant to which, among other things, UTC agreed to separate into three independent, publicly traded companies – UTC, Otis and Carrier and distribute all of the outstanding common stock of Carrier and Otis to UTC shareowners who held shares of UTC common stock as of the close of business on March 19, 2020. As a result of the distributions, Carrier and Otis are independent publicly traded companies. On January 20, 2020 the Company reached an agreement with BAE Systems, Inc. on a proposed sale of assets related to the Collins Aerospace Systems military global positioning system business for $1.93 billion. The proposed sale is required as a regulatory condition to the Raytheon Merger, and is subject to the completion of the Raytheon Merger, as well as the satisfaction of other customary closing conditions, including receipt of required regulatory approvals. Due to these closing conditions, the criteria for held for sale accounting treatment were not met as of December 31, 2019. Goodwill. Changes in our goodwill balances for the year ended in 2019 were as follows: (dollars in millions) Balance as of Goodwill Foreign Balance as of Pratt & Whitney $ 1,567 $ — $ (4) $ 1,563 Collins Aerospace Systems 35,002 75 (52) 35,025 Total Segments 36,569 75 (56) 36,588 Eliminations and other 21 — — 21 Total $ 36,590 $ 75 $ (56) $ 36,609 The $ 75 million increase in Goodwill at Collins Aerospace Systems reflects a $475 million net increase in Goodwill resulting from several individually insignificant purchase accounting adjustments related to the Rockwell Acquisition, partially offset by a $400 million decrease in Goodwill related to adjustments to the customer relationship intangible asset associated with the Rockwell Acquisition. Intangible Assets. Identifiable intangible assets are comprised of the following: 2019 2018 (dollars in millions) Gross Accumulated Gross Accumulated Amortized: Patents and trademarks $ 47 $ (34) $ 47 $ (32) Collaboration intangible assets 4,862 (920) 4,509 (649) Customer relationships and other 21,026 (3,884) 20,308 (2,913) 25,935 (4,838) 24,864 (3,594) Unamortized: Trademarks and other 3,376 — 3,372 — Total $ 29,311 $ (4,838) $ 28,236 $ (3,594) In addition to acquired customer relationship intangible assets, 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 may be used. We classify amortization of such payments as a reduction of sales. Amortization of intangible assets was $1,244 million, $736 million and $587 million in 2019, 2018 and 2017, respectively. The collaboration intangible assets are amortized based upon the pattern of economic benefits as represented by the underlying cash flows. The following is the expected amortization of total intangible assets for 2020 through 2024, which reflects the pattern of expected economic benefit on certain aerospace intangible assets: (dollars in millions) 2020 2021 2022 2023 2024 Amortization expense $1,248 $1,249 $1,283 $1,290 $1,277 Other Matters. In January 2020, Boeing announced that it expects the 737 Max fleet to remain grounded until mid-2020. In addition, Boeing has also announced the temporary suspension of its production of the 737 Max. The Company considered the potential impact of these developments on goodwill and intangible asset balances that could be impacted by this situation and concluded that the balances remain recoverable and no adjustment was required. |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | DISCONTINUED OPERATIONSOn April 2, 2020, Carrier and Otis entered into a Separation and Distribution Agreement with UTC (since renamed Raytheon Technologies Corporation), pursuant to which, among other things, UTC agreed to separate into three independent, publicly traded companies – UTC, Otis and Carrier and distribute all of the outstanding common stock of Carrier and Otis to UTC shareowners who held shares of U TC common stock as of the close of business on March 19, 2020. The Separation Transactions were completed on April 3, 2020. Carrier and Otis are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Income (loss) from discontinued operations is as follows: Year Ended December 31 (dollars, in millions) 2019 2018 2017 Otis $ 1,033 $ 1,213 $ 1,123 Carrier 1,698 2,840 2,116 Separation related transactions (1) (704) — — Income (loss) from discontinued operations $ 2,027 $ 4,053 $ 3,239 (1) Reflects unallocable transaction costs incurred by the Company primarily related to professional services costs pertaining to the Separation Transactions and the establishment of Otis and Carrier as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges related to separation activities. The following summarized financial information related to discontinued operations has been reclassified from Income from continuing operations and included in Income (loss) from discontinued operations: Year Ended December 31 (dollars, in millions) 2019 2018 2017 Otis Product sales $ 5,669 $ 5,636 $ 5,498 Service sales 7,444 7,268 6,843 Cost of products sold 4,656 4,624 4,392 Cost of services sold 4,635 4,568 4,220 Research and development 163 185 187 Selling, general and administrative expense 1,906 1,636 1,583 Other (expense) income, net (40) 26 37 Non-operating expense, net 4 (18) (4) Income from discontinued operations, before income taxes 1,709 1,935 2,000 Income tax expense 525 561 704 Income from discontinued operations 1,184 1,374 1,296 Less: Noncontrolling interest in subsidiaries earnings from discontinued operations 151 161 173 Income from discontinued operations attributable to common shareowners $ 1,033 $ 1,213 $ 1,123 Carrier Product sales $ 15,337 $ 15,657 $ 14,744 Service sales 3,247 3,239 3,039 Cost of products sold 10,878 11,047 10,447 Cost of services sold 2,298 2,281 2,154 Research and development 400 399 364 Selling, general and administrative expense 2,888 2,566 2,459 Other income (expense), net 246 1,156 794 Non-operating (income) expense, net (43) (82) (88) Income from discontinued operations, before income taxes 2,409 3,841 3,241 Income tax expense 672 967 1,085 Income from discontinued operations 1,737 2,874 2,156 Less: Noncontrolling interest in subsidiaries earnings from discontinued operations 39 34 40 Income from discontinued operations attributable to common shareowners $ 1,698 $ 2,840 $ 2,116 Separation related transactions (1) Selling, general and administrative expense 16 $ — $ — Other (expense) income, net $ (11) Loss from discontinued operations, before income taxes (27) — — Income tax (benefit) expense 677 — — Income (loss) from discontinued operations, net of tax (704) — — Total Income (loss) from discontinued operations attributable to common shareowners $ 2,027 $ 4,053 $ 3,239 (1) Reflects unallocable transaction costs incurred by the Company primarily related to professional services costs pertaining to the Separation Transactions and the establishment of Otis and Carrier as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges related to separation activities. Selected financial information related to cash flows from discontinued operations is as follows: Year Ended December 31 (dollars, in millions) 2019 2018 2017 Net cash provided by operating activities $ 3,062 $ 3,652 $ 3,349 Net cash (used in) provided by investing activities (416) 286 108 Net cash used in financing activities (2,651) (4,244) (3,431) Net cash provided by operating activities includes the net operating cash flows of Otis and Carrier prior to the Separation Transactions, as well as costs incurred by the Company primarily related to professional services costs pertaining to the Separation Transactions and the establishment of Otis and Carrier as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges related to separation activities. Net cash used in financing activities primarily consists of net cash transfers from Otis and Carrier to RTC. The major components of assets and liabilities related to discontinued operations at December 31, 2019 are provided below: (dollars, in millions) Otis Carrier Total Assets Cash and cash equivalents $ 1,446 $ 995 $ 2,441 Accounts receivable, net 2,899 2,728 5,627 Contract assets, current 530 679 1,209 Inventories and contracts in progress, net 571 1,332 1,903 Other assets, current 213 221 434 Future income tax benefits 355 370 725 Fixed assets, net 747 1,686 2,433 Operating lease right-of-use assets 529 818 1,347 Goodwill 1,647 9,807 11,454 Intangible assets, net 490 1,083 1,573 Other assets 220 2,457 2,677 Total assets related to discontinued operations $ 9,647 $ 22,176 $ 31,823 Liabilities and Redeemable Noncontrolling Interest Short-term borrowings $ 33 $ 38 $ 71 Accounts payable 1,321 1,682 3,003 Accrued liabilities 1,651 2,889 4,540 Contract liabilities, current 2,288 611 2,899 Long-term debt, currently due 1 237 238 Long-term debt 5 82 87 Future pension and postretirement benefit obligations 560 455 1,015 Operating lease liabilities 383 668 1,051 Other long-term liabilities (1) 514 1,025 1,539 Total liabilities related to discontinued operations $ 6,756 $ 7,687 $ 14,443 (1) Amounts include a deferred tax jurisdictional netting adjustment of $145 million. The major components of assets and liabilities related to discontinued operations at December 31, 2018 are provided below: (dollars, in millions) Otis Carrier Total Assets Cash and cash equivalents $ 1,329 $ 1,130 $ 2,459 Accounts receivable, net 2,764 2,883 5,647 Contract assets, current 661 450 1,111 Inventories and contracts in progress, net 640 1,363 2,003 Other assets, current 264 295 559 Future income tax benefits 304 343 647 Fixed assets, net 709 1,681 2,390 Goodwill 1,688 9,835 11,523 Intangible assets, net 569 1,214 1,783 Other assets 169 2,449 2,618 Total assets related to discontinued operations $ 9,097 $ 21,643 $ 30,740 Liabilities and Redeemable Noncontrolling Interest Short-term borrowings $ 27 $ 14 $ 41 Accounts payable 1,334 1,910 3,244 Accrued liabilities 1,462 2,076 3,538 Contract liabilities, current 2,359 612 2,971 Long-term debt, currently due 1 153 154 Long-term debt 4 146 150 Future pension and postretirement benefit obligations 542 426 968 Other long-term liabilities 469 1,093 1,562 Total liabilities related to discontinued operations $ 6,198 $ 6,430 $ 12,628 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Text Block | EARNINGS PER SHARE (dollars in millions, except per share amounts; shares in millions) 2019 2018 2017 Net income attributable to common shareowners: Income from continuing operations attributable to common shareowners $ 3,510 $ 1,216 $ 1,313 Income from discontinued operations attributable to common shareowners 2,027 4,053 3,239 Net income attributable to common shareowners $ 5,537 $ 5,269 $ 4,552 Basic weighted average number of shares outstanding 854.8 800.4 790.0 Stock awards and equity units (share equivalent) 9.1 9.7 9.1 Diluted weighted average number of shares outstanding 863.9 810.1 799.1 Earnings per share attributable to common shareowners - basic Income from continuing operations attributable to common shareowners $ 4.11 $ 1.52 $ 1.66 Income from discontinued operations 2.37 5.06 4.10 Net income attributable to common shareowners $ 6.48 $ 6.58 $ 5.76 Earnings per share attributable to common shareowners - diluted Income from continuing operations attributable to common shareowners $ 4.06 $ 1.50 $ 1.64 Income from discontinued operations 2.35 5.00 4.06 Net income attributable to common shareowners $ 6.41 $ 6.50 $ 5.70 |
Commercial Aerospace Industry A
Commercial Aerospace Industry Assets and Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Other Commitments [Abstract] | |
Commercial Aerospace Industry Assets and Commitments | NOTE 5: COMMERCIAL AEROSPACE INDUSTRY ASSETS AND COMMITMENTS We have receivables and other financing assets with commercial aerospace industry customers totaling $11,293 million and $11,695 million at December 31, 2019 and 2018, respectively. These include customer financing assets related to commercial aerospace industry customers, consisting of products under lease of $3,185 million and $2,736 million, and notes and leases receivable of $308 million and $299 million, at December 31, 2019 and 2018, respectively. Aircraft financing commitments, in the form of debt or lease financing, are provided to commercial aerospace customers. The extent to which the financing commitments will be utilized is not currently known, since customers may be able to obtain more favorable terms from other financing sources. We may also arrange for third-party investors to assume a portion of these commitments. If financing commitments are exercised, debt financing is generally secured by assets with fair market values equal to or exceeding the financed amounts consistent with market terms and conditions. We may also lease aircraft and subsequently sublease the aircraft to customers under long-term non-cancelable operating leases. Our financing commitments with customers are contingent upon maintenance of certain levels of financial condition by the customers. We have also made residual value and other guarantees related to various commercial aerospace customer financing arrangements. The estimated fair market values of the guaranteed assets equal or exceed the value of the related guarantees, net of existing reserves. We have residual value and other guarantees of $333 million as of December 31, 2019. Partner share of these guarantees is $142 million. Refer to “Note 18: Guarantees” for additional discussion on guarantees. We also have other contractual commitments, including commitments to secure certain contractual rights to provide product on new aircraft platforms, which are included in “Other commercial aerospace commitments” in the table below. Payments made on these contractual commitments are included within other intangible assets and are to be amortized over the term of underlying economic benefit. Our commercial aerospace financing and other contractual commitments as of December 31, 2019 were approximately $15.0 billion. We have entered into certain collaboration arrangements, which may include participation by our collaboration partners in these commitments. The following is the expected maturity of commercial aerospace industry assets and commitments as of December 31, 2019: (dollars in millions) Committed 2020 2021 2022 2023 2024 Thereafter Notes and leases receivable $ 308 $ 30 $ 23 $ 14 $ 22 $ 38 $ 181 Commercial aerospace financing commitments $ 3,937 $ 911 $ 1,119 $ 974 $ 819 $ 44 $ 70 Other commercial aerospace commitments 11,055 702 736 717 668 627 7,605 Collaboration partners’ share (5,284) (508) (623) (571) (538) (193) (2,851) Total commercial commitments $ 9,708 $ 1,105 $ 1,232 $ 1,120 $ 949 $ 478 $ 4,824 In connection with our 2012 agreement to acquire Rolls-Royce’s ownership and collaboration interests in IAE AG, additional payments are due to Rolls-Royce contingent upon each hour flown through June 2027 by the V2500-powered aircraft in service as of the acquisition date. These flight hour payments, included in “Other commercial aerospace commitments” in the table above, are being capitalized as collaboration intangible assets. We have long-term aftermarket maintenance contracts with commercial aerospace industry customers for which revenue is recognized over-time in proportion to actual costs incurred relative to total expected costs to be incurred over the respective contract periods. Billings, however, are typically based on factors such as aircraft or engine flight hours. The timing differences between the billings and the maintenance costs incurred generates both Contract assets and Contract liabilities. Additionally, we have other contracts with commercial aerospace industry customers which can result in the generation of Contract assets and Contract liabilities. Contract assets totaled $2,741 million and $2,247 million at December 31, 2019 and 2018, respectively, and are included in “Contract assets, current” and “Other assets” in the accompanying Consolidated Balance Sheet. Allowance for doubtful accounts was $248 million and $245 million at December 31, 2019 and 2018, respectively. Reserves related to financing commitments and guarantees were $7 million and $15 million at December 31, 2019 and 2018, respectively. In addition, in connection with the acquisition of Rockwell Collins in 2018 and Goodrich in 2012, we recorded assumed liabilities of approximately $1.02 billion and $2.2 billion, respectively related to customer contractual obligations on certain programs with terms less favorable than could be realized in market transactions as of the acquisition date. These liabilities are being liquidated in accordance with the underlying pattern of obligations, as reflected by the net cash outflows incurred on the contracts. Total consumption of the contractual obligations for the years ended December 31, 2019 and 2018 was approximately $345 million and $252 million, respectively. The balance of the contractual obligations at December 31, 2019 was $1,408 million, with future consumption expected to be as follows: $263 million in 2020, $189 million in 2021, $148 million in 2022, $118 million in 2023, $127 million in 2024 and $563 million thereafter. We also have intangible assets associated with commercial aerospace. Refer to “Note 2: Business Acquisitions, Dispositions, Goodwill and Intangible Assets” for discussion of intangible assets. Refer to “Note 1: Summary of Accounting Principles” for discussion of contract fulfillment costs. Refer to “Note 20: Leases” for discussion of leases, including those that were disclosed as commitments prior to the adoption of ASC 842. |
Inventory, Net
Inventory, Net | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory, Net [Text Block] | INVENTORY, NET (dollars in millions) 2019 2018 Raw materials $ 2,984 $ 2,624 Work-in-process 2,586 2,538 Finished goods 3,477 2,919 $ 9,047 $ 8,081 |
Contract Assets and Liabilities
Contract Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | CONTRACT ASSETS AND LIABILITIESContract 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 December 31, 2019 and 2018 are as follows: (dollars in millions) December 31, 2019 December 31, 2018 Total contract assets $ 4,462 $ 3,666 Total contract liabilities (9,014) (7,818) Net contract liabilities $ (4,552) $ (4,152) Contract assets increased $796 million during the year ended December 31, 2019 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 $1,196 million during the year ended December 31, 2019 primarily due to customer billings in excess of revenue recognized on Pratt & Whitney commercial aftermarket service agreements and various programs at Collins Aerospace Systems. We recognized revenu e of $2.9 billion du ring the year ended December 31, 2019 related to contract liabilities as of December 31, 2018. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | FIXED ASSETS (dollars in millions) Estimated 2019 2018 Land $ 292 $ 266 Buildings and improvements 12-40 years 4,978 4,768 Machinery, tools and equipment 3-20 years 12,936 11,951 Other, including assets under construction 1,871 1,735 20,077 18,720 Accumulated depreciation (9,755) (8,814) $ 10,322 $ 9,906 Depreciation expense is recorded predominantly utilizing the straight-line method and was $1,191 million in 2019, $945 million in 2018 and $869 million in 2017. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES (dollars in millions) 2019 2018 Accrued salaries, wages and employee benefits $ 1,353 $ 1,063 Customer contractual obligations 1,408 1,705 Service and warranty accruals 1,033 929 Interest payable 472 468 Litigation and contract matters 405 324 Income taxes payable 106 313 Accrued property, sales and use taxes 140 94 Canadian government settlement - current portion — 34 Accrued restructuring costs 123 159 Accrued workers compensation 91 80 Liabilities held for sale — 40 Operating lease liabilities, current 245 — Other 4,394 4,186 $ 9,770 $ 9,395 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings and Lines of Credit | (dollars in millions) 2019 2018 Short-term borrowings: Commercial paper $ — $ 1,257 Other borrowings 2,293 171 Total short-term borrowings $ 2,293 $ 1,428 At December 31, 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. As of December 31, 2019, there were borrowings of $2.10 billion under the $4.0 billion term credit agreement. The undrawn portions of the revolving credit agreements are also available to serve as backup facilities for the issuance of commercial paper. As of December 31, 2019, our maximum commercial paper borrowing limit was $6.35 billion. We had no commercial paper borrowings as of December 31, 2019. 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. At December 31, 2019, approximately $2.3 billion was available under short-term lines of credit with local banks at our various domestic and international subsidiaries. The weighted-average interest expense rates applicable to short-term borrowings and total debt were as follows: 2019 2018 Average interest expense rate - average outstanding borrowings during the year: Short-term borrowings 1.7 % 1.3 % Total debt 3.6 % 3.5 % Average interest expense rate - outstanding borrowings as of December 31: Short-term borrowings 2.3 % 1.9 % Total debt 3.6 % 3.5 % Long-term debt consisted of the following as of December 31: (dollars in millions) 2019 2018 Libor plus 0.350% floating rate notes due 2019 (3) $ — $ 350 1.500% notes due 2019 (1) — 650 1.950% notes due 2019 (4) — 300 Euribor plus 0.15% floating rate notes due 2019 (€750 million principal value) (2) — 858 5.250% notes due 2019 (4) — 300 8.875% notes due 2019 — 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) 831 858 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) 1,053 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) 831 858 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) 831 858 3.950% notes due 2025 (1) 1,500 1,500 1.875% notes due 2026 (€500 million principal value) (1) 554 573 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) 554 573 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 Other (including finance leases) 315 269 Total principal long-term debt 41,274 44,111 Other (fair market value adjustments, discounts and debt issuance costs) (315) (348) Total long-term debt 40,959 43,763 Less: current portion 3,258 2,722 Long-term debt, net of current portion $ 37,701 $ 41,041 (1) We may redeem these notes at our option pursuant to their terms. (2) The three-month EURIBOR rate as of December 31, 2019 was approximately (0.383)%. 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 December 31, 2019 was approximately 1.908%. (4) Rockwell Collins debt which remained outstanding following the Rockwell Acquisition. We had no debt issuances during 2019 and the following issuances of debt in 2018: (dollars 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 made the following repayments of debt in 2019 and 2018: (dollars in millions) Repayment Date Description of Notes Aggregate Principal Balance November 15, 2019 8.875% notes $ 271 November 13, 2019 EURIBOR plus 0.15% floating rate notes € 750 November 1, 2019: LIBOR plus 0.350% floating rate notes $ 350 1.500% notes $ 650 July 15, 2019: 1.950% notes (1) $ 300 5.250% notes (1) $ 300 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) These notes and term loan were assumed in connection with the Rockwell Collins acquisition and subsequently repaid. The percentage of total short-term borrowings and long-term debt at variable interest rates was 9% and 10% at December 31, 2019 and 2018, respectively. Interest rates on our commercial paper borrowings are considered variable due to their short-term duration and high-frequency of turnover. The average maturity of our long-term debt at December 31, 2019 is approximately 10 years. The schedule of principal payments required on long-term debt for the next five years and thereafter is: (dollars in millions) 2020 $ 3,258 2021 4,091 2022 3,904 2023 3,490 2024 2,592 Thereafter 23,939 Total $ 41,274 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
AOCI Note Disclosure [Text Block] | A summary of the changes in each component of Accumulated other comprehensive (loss) income, net of tax for the years ended December 31, 2019 and 2018 is provided below: (dollars in millions) Foreign Defined Benefit Unrealized Gains Unrealized Accumulated Balance at December 31, 2017 $ (2,950) $ (4,652) $ 5 $ 72 $ (7,525) Other comprehensive income before reclassifications, net (486) (1,736) — (307) (2,529) Amounts reclassified, pre-tax (2) 344 — (16) 326 Tax (expense) benefit (4) 326 — 78 400 ASU 2016-01 adoption impact $ — $ — $ (5) $ — $ (5) Balance at December 31, 2018 $ (3,442) $ (5,718) $ — $ (173) $ (9,333) Other comprehensive loss before reclassifications, net 280 (584) — (33) (337) Amounts reclassified, pre-tax 2 170 — 51 223 Tax (expense) benefit (43) 97 — (11) 43 ASU 2018-02 adoption impact (8) (737) — — (745) Balance at December 31, 2019 $ (3,211) $ (6,772) $ — $ (166) $ (10,149) 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. Additionally, during 2019, we recorded a curtailment gain of $98 million in the Consolidated Statement of Operations which is included within amounts reclassified related to our defined pension and postretirement plans (see “Note 13: Employee Benefit Plans” for additional details). |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We sponsor numerous domestic and foreign employee benefit plans, which are discussed below. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires an employer to report the service cost component of net periodic pension benefit cost in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period, with other cost components presented separately from the service cost component and outside of income from operations. This ASU also allows only the service cost component of net periodic pension benefit cost to be eligible for capitalization when applicable. This ASU was effective for years beginning after December 15, 2017. The Company adopted this standard on January 1, 2018 applying the presentation requirements retrospectively. We elected to apply the practical expedient, which allows us to reclassify amounts disclosed previously in the employee benefit plans note as the basis for applying retrospective presentation for comparative periods as it is impracticable to determine the disaggregation of the cost components for amounts capitalized and amortized in those periods. Provisions related to presentation of the service cost component eligibility for capitalization were applied prospectively. The effect of the retrospective presentation change related to the net periodic benefit cost of our defined benefit pension and postretirement plans on our Consolidated Statement of Operations was a $455 million decrease in operating profit and a $455 million increase in non-service pension (benefit), with zero impact on income from continuing operations and net income. Employee Savings Plans. We sponsor various employee savings plans. Our contributions to employer sponsored defined contribution plans were $485 million, $332 million and $286 million for 2019, 2018 and 2017, respectively. Our non-union domestic employee savings plan uses an Employee Stock Ownership Plan (ESOP) for employer matching contributions. External borrowings were used by the ESOP to fund a portion of its purchase of ESOP stock from us. The external borrowings have been extinguished and only re-amortized loans remain between RTC and the ESOP Trust. As ESOP debt service payments are made, common stock is released from an unreleased shares account. ESOP debt may be prepaid or re-amortized to either increase or decrease the number of shares released so that the value of released shares equals the value of plan benefit. We may also, at our option, contribute additional common stock or cash to the ESOP. Shares of common stock are allocated to employees’ ESOP accounts at fair value on the date earned. Cash dividends on common stock held by the ESOP are used for debt service payments. Participants may choose to have their ESOP dividends reinvested or distributed in cash. Common stock allocated to ESOP participants is included in the average number of common shares outstanding for both basic and diluted earnings per share. At December 31, 2019, 23.4 million common shares had been allocated to employees, leaving 7.9 million unallocated common shares in the ESOP Trust, with an approximate fair value of $1.2 billion. Pension Plans. We sponsor both funded and unfunded domestic and foreign defined benefit pension plans that cover a large number of our employees. Our largest plans are generally closed to new participants. Our plans use a December 31 measurement date consistent with our fiscal year. (dollars in millions) 2019 2018 Change in Benefit Obligation: Beginning balance $ 34,344 $ 33,283 Service cost attributable to continuing operations 261 265 Service cost attributable to discontinued operations 34 40 Interest cost 1,245 1,058 Actuarial loss (gain) 4,247 (1,938) Total benefits paid (2,016) (1,783) Net settlement, curtailment and special termination benefits (206) (14) Plan amendments — 56 Business combinations (6) 3,694 Other 124 (317) Ending balance $ 38,027 $ 34,344 Change in Plan Assets: Beginning balance $ 32,150 $ 32,205 Actual return on plan assets 5,873 (1,516) Employer contributions 137 156 Benefits paid (2,016) (1,783) Settlements (17) (16) Business combinations (10) 3,355 Other 108 (251) Ending balance $ 36,225 $ 32,150 Funded Status: Fair value of plan assets $ 36,225 $ 32,150 Benefit obligations (38,027) (34,344) Funded status of plan $ (1,802) $ (2,194) Amounts Recognized in the Consolidated Balance Sheet Consist of: Noncurrent assets $ 19 $ 157 Current liability (51) (56) Noncurrent liability (1,770) (2,295) Net amount recognized $ (1,802) $ (2,194) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial loss $ 8,160 $ 7,948 Prior service cost 190 130 Net actuarial loss and prior service cost related to discontinued operations 763 667 Net amount recognized $ 9,113 $ 8,745 In September 2019, we amended our domestic pension plans to cease accrual of additional benefits for future service and compensation for non-union participants effective December 31, 2019. Beginning January 1, 2020, these participants will earn additional contributions under our domestic savings plan. We utilized the practical expedient and remeasured plan assets and pension benefit obligations for the affected pension plans as of the nearest month-end, August 31, 2019, resulting in a net actuarial loss of $425 million. This reflects a benefit obligation gain of $180 million resulting from the benefit plan change that was offset by remeasurement losses of $605 million. The remeasurement losses are driven by a reduction of 124 basis points in the projected benefit obligation (PBO) discount rate as of the remeasurement date compared to December 31, 2018, partially offset by actual asset returns of approximately 17% as of the remeasurement date. In September 2019, we recorded a curtailment gain of $98 million in the Consolidated Statement of Operations, due to the recognition of previously unrecognized prior service credits for the affected pension plans. Additionally, as a result of the remeasurement, pension income (excluding curtailment) decreased by approximately $39 million for the year ended December 31, 2019. The amounts included in “Other” in the above table primarily reflect the impact of foreign exchange translation, primarily for plans in the U.K. and Canada. As part of the Rockwell acquisition on November 26, 2018, we assumed approximately $3.7 billion of pension projected benefit obligations and $3.4 billion of plan assets. Qualified domestic pension plan benefits comprise approximately 82% of the projected benefit obligation. Benefits for union employees are generally based on a stated amount for each year of service. For non-union employees, benefits for service up to December 31, 2014 are generally based on an employee’s years of service and compensation through December 31, 2014. Benefits for service after December 31, 2014 through December 31, 2019 are based on the existing cash balance formula that was adopted in 2003 for newly hired non-union employees and for other non-union employees who made a one-time voluntary election to have future benefit accruals determined under this formula. Certain foreign plans, which comprise approximately 17% of the projected benefit obligation, are considered defined benefit plans for accounting purposes. Nonqualified domestic pension plans provide supplementary retirement benefits to certain employees and are not a material component of the projected benefit obligation. We made $25 million of cash contributions to our domestic defined benefit pension plans and made $30 million of cash contributions to our foreign defined benefit pension plans in 2019. In 2018, we made no cash contributions to our domestic defined benefit pension plans and made $79 million of cash contributions to our foreign defined benefit pension plans. Information for pension plans with accumulated benefit obligations in excess of plan assets: (dollars in millions) 2019 2018 Projected benefit obligation $ 37,941 $ 24,796 Accumulated benefit obligation 37,599 24,471 Fair value of plan assets 36,120 22,558 Information for pension plans with projected benefit obligations in excess of plan assets: (dollars in millions) 2019 2018 Projected benefit obligation $ 37,943 $ 27,225 Accumulated benefit obligation 37,600 26,752 Fair value of plan assets 36,122 24,873 The accumulated benefit obligation for all defined benefit pension plans was $37.7 billion and $33.8 billion at December 31, 2019 and 2018, respectively. The components of the net periodic pension benefit are as follows: (dollars in millions) 2019 2018 2017 Pension Benefits: Service cost $ 261 $ 265 $ 268 Interest cost 1,245 1,058 1,043 Expected return on plan assets (2,252) (2,061) (2,033) Amortization of prior service cost (credit) 16 (42) (37) Recognized actuarial net loss 245 373 550 Net settlement, curtailment and special termination benefits (gain) loss (59) 3 3 Net periodic pension benefit - employer $ (544) $ (404) $ (206) Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2019 are as follows: (dollars in millions) Continuing Operations Discontinued Operations Total Current year actuarial loss $ 434 $ 119 $ 553 Amortization of actuarial loss (245) (20) (265) Current year prior service cost — 6 6 Amortization of prior service cost (16) (1) (17) Net settlement and curtailment 62 (5) 57 Other 36 (2) 34 Total recognized in other comprehensive loss $ 271 97 $ 368 Net recognized in net periodic pension benefit and other comprehensive loss $ (232) 97 $ (135) The amount included in “Other” in the above table primarily reflects the impact of foreign exchange translation, primarily for plans in the U.K. and Canada. The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension (benefit) cost in 2020 is as follows: (dollars in millions) Net actuarial loss $ 336 Prior service cost 49 $ 385 Major assumptions used in determining the benefit obligation and net cost for pension plans are presented in the following table as weighted-averages: Benefit Obligation Net Cost 2019 2018 2019 2018 2017 Discount rate PBO 3.1 % 4.0 % 4.0 % 3.5 % 3.9 % Interest cost (1) — — 3.7 % 3.1 % 3.3 % Service cost (1) — — 3.7 % 3.4 % 3.8 % Salary scale 4.3 % 4.3 % 4.3 % 4.3 % 4.3 % Expected return on plan assets — — 6.8 % 6.9 % 7.4 % (1) The discount rates used to measure the service cost and interest cost applies to our significant plans. The PBO discount rate is used for the service cost and interest cost measurements for non-significant plans. In determining the expected return on plan assets, we consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes, and economic and other indicators of future performance. In addition, we may consult with and consider the opinions of financial and other professionals in developing appropriate capital market assumptions. Return projections are also validated using a simulation model that incorporates yield curves, credit spreads and risk premiums to project long-term prospective returns. The plans’ investment management objectives include providing the liquidity and asset levels needed to meet current and future benefit payments, while maintaining a prudent degree of portfolio diversification considering interest rate risk and market volatility. Globally, investment strategies target a mix of 45% to 50% of growth seeking assets and 50% to 55% of income generating and hedging assets using a wide set of diversified asset types, fund strategies and investment managers. The growth seeking allocation consists of global public equities in developed and emerging countries, private equity, real estate and multi-asset class strategies. Growth assets include an enhanced alpha strategy that invests in publicly traded equity and fixed income securities, derivatives and foreign currency. Investments in private equity are primarily via limited partnership interests in buy-out strategies with smaller allocations to distressed debt funds. The real estate strategy is principally concentrated in directly held U.S. core investments with some smaller investments in international, value-added and opportunistic strategies. Within the income generating assets, the fixed income portfolio consists of mainly government and broadly diversified high quality corporate bonds. The plans have continued their pension risk management techniques designed to reduce their interest rate risk. Specifically, the plans have incorporated liability hedging programs that include the adoption of a risk reduction objective as part of the long-term investment strategy. Under this objective the interest rate hedge is intended to increase as funded status improves. The hedging programs incorporate a range of assets and investment tools, each with varying interest rate sensitivities. As result of the improved funded status of the plans due to favorable asset returns and funding of the plans, the interest rate hedge increased significantly during 2017. The investment portfolios are currently hedging approximately 65% to 70% of the interest rate sensitivity of the pension plan liabilities. As a result of the shift in the target asset mix to higher income generating and hedging assets and lower growth seeking assets, combined with reduced capital market assumptions for most asset classes, we will reduce the expected return on plan assets assumption for 2020 including the assumption of a 6.5% return on plan assets for our qualified domestic pension plans, down from 7.0% in 2019. The fair values of pension plan assets at December 31, 2019 and 2018 by asset category are as follows: (dollars in millions) Quoted Prices in Significant Significant Not Subject to Leveling Total Asset Category: Public Equities Global Equities $ 3,588 $ 5 $ — $ — $ 3,593 Global Equity Commingled Funds (1) — 1,496 — — 1,496 Enhanced Global Equities (2) 322 393 — — 715 Global Equity Funds at net asset value (8) — — — 5,332 5,332 Private Equities (3),(8) — — 202 1,230 1,432 Fixed Income Securities Governments 969 116 — — 1,085 Corporate Bonds 1 13,059 5 — 13,065 Structured Products — 17 — — 17 Fixed Income Securities (8) — — — 4,755 4,755 Real Estate (4),(8) — 13 1,464 366 1,843 Other (5),(8) — 343 — 2,834 3,177 Cash & Cash Equivalents (6),(8) — 47 — 36 83 Subtotal $ 4,880 $ 15,489 $ 1,671 $ 14,553 36,593 Other Assets & Liabilities (7) (368) Total at December 31, 2019 $ 36,225 Public Equities Global Equities $ 2,917 $ 4 $ — $ — $ 2,921 Global Equity Commingled Funds (1) 185 219 — — 404 Enhanced Global Equities (2) 79 605 — — 684 Global Equity Funds at net asset value (8) — — — 6,539 6,539 Private Equities (3),(8) — — 133 1,194 1,327 Fixed Income Securities Governments 1,789 162 — — 1,951 Corporate Bonds — 11,526 18 29 11,573 Fixed Income Securities (8) — — — 2,225 2,225 Real Estate (4),(8) — 13 1,387 409 1,809 Other (5),(8) — 262 — 2,368 2,630 Cash & Cash Equivalents (6),(8) — 220 — 100 320 Subtotal $ 4,970 $ 13,011 $ 1,538 $ 12,864 32,383 Other Assets & Liabilities (7) (233) Total at December 31, 2018 $ 32,150 (1) Represents commingled funds that invest primarily in common stocks. (2) Represents enhanced equity separate account and commingled fund portfolios. A portion of the portfolio may include long-short market neutral and relative value strategies that invest in publicly traded, equity and fixed income securities, as well as derivatives of equity and fixed income securities and foreign currency. (3) Represents limited partner investments with general partners that primarily invest in debt and equity. (4) Represents investments in real estate including commingled funds and directly held properties. (5) Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities. (6) Represents short-term commercial paper, bonds and other cash or cash-like instruments. (7) Represents trust receivables and payables that are not leveled. (8) In accordance with ASU 2015-07, Fair Value Measurement (Topic 820) , certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets. Derivatives in the plan are primarily used to manage risk and gain asset class exposure while still maintaining liquidity. Derivative instruments mainly consist of equity futures, interest rate futures, interest rate swaps and currency forward contracts. Our common stock represents less than 1% of total plan assets at December 31, 2019 and 2018. We review our assets at least quarterly to ensure we are within the targeted asset allocation ranges and, if necessary, asset balances are adjusted back within target allocations. We employ a broadly diversified investment manager structure that includes diversification by active and passive management, style, capitalization, country, sector, industry and number of investment managers. The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed due to the following: (dollars in millions) Private Corporate Real Total Balance, December 31, 2017 $ 46 $ — $ 1,446 $ 1,492 Plan assets acquired — 33 — 33 Realized (losses) gains — (1) 10 9 Unrealized gains relating to instruments still held in the reporting period — 2 38 40 Purchases, sales, and settlements, net 87 (16) (107) (36) Balance, December 31, 2018 133 18 1,387 1,538 Realized losses — — (2) (2) Unrealized gains relating to instruments still held in the reporting period 32 — 27 59 Purchases, sales, and settlements, net 37 (13) 52 76 Balance, December 31, 2019 $ 202 $ 5 $ 1,464 $ 1,671 Quoted market prices are used to value investments when available. Investments in securities traded on exchanges, including listed futures and options, are valued at the last reported sale prices on the last business day of the year or, if not available, the last reported bid prices. Fixed income securities are primarily measured using a market approach pricing methodology, where observable prices are obtained by market transactions involving identical or comparable securities of issuers with similar credit ratings. Mortgages have been valued on the basis of their future principal and interest payments discounted at prevailing interest rates for similar investments. Investment contracts are valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations. Real estate investments are valued on a quarterly basis using discounted cash flow models which consider long-term lease estimates, future rental receipts and estimated residual values. Valuation estimates are supplemented by third-party appraisals on an annual basis. Private equity limited partnerships are valued quarterly using discounted cash flows, earnings multiples and market multiples. Valuation adjustments reflect changes in operating results, financial condition, or prospects of the applicable portfolio company. Over-the-counter securities and government obligations are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes. Temporary cash investments are stated at cost, which approximates fair value. As a result of the $1.9 billion contribution in 2017, we are not required to make additional contributions to our domestic defined benefit pension plans through the end of 2025. We expect to make total contributions of approximately $100 million to our global defined benefit pension plans in 2020. Contributions do not reflect benefits to be paid directly from corporate assets. Benefit payments, including amounts to be paid from corporate assets, and reflecting expected future service, as appropriate, are expected to be paid as follows: $2,249 million in 2020, $2,059 million in 2021, $2,087 million in 2022, $2,107 million in 2023, $2,123 million in 2024, and $10,645 million from 2025 through 2029. Postretirement Benefit Plans. We sponsor a number of postretirement benefit plans that provide health and life benefits to eligible retirees. Such benefits are provided primarily from domestic plans, which comprise approximately 84% of the benefit obligation. The postretirement plans are primarily unfunded. The assets we hold are invested in approximately 50% growth seeking assets and 50% income generating assets. (dollars in millions) 2019 2018 Change in Benefit Obligation: Beginning balance $ 810 $ 767 Service cost 2 2 Interest cost 31 26 Actuarial gain (11) (52) Total benefits paid (69) (70) Business combinations — 186 Plan amendments — (43) Other 2 (6) Ending balance $ 765 $ 810 Change in Plan Assets: Beginning balance $ 20 $ — Employer contributions 69 69 Benefits paid (69) (70) Business combinations — 20 Other — 1 Ending balance $ 20 $ 20 Funded Status: Fair value of plan assets $ 20 $ 20 Benefit obligations (765) (810) Funded status of plan $ (745) $ (790) Amounts Recognized in the Consolidated Balance Sheet Consist of: Current liability $ (47) $ (61) Noncurrent liability (698) (729) Net amount recognized $ (745) $ (790) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial gain $ (181) $ (184) Prior service credit (4) (47) Net amount recognized $ (185) $ (231) As part of our acquisition of Rockwell on November 26, 2018, we assumed approximately $186 million of postretirement benefit obligations and $20 million of plan assets. We modified the postretirement medical benefits provided to legacy Rockwell salaried employees by eliminating any company subsidy from retirements that occur after December 31, 2019. This resulted in a $43 million reduction in the benefit obligation as of November 26, 2018. The components of net periodic benefit cost are as follows: (dollars in millions) 2019 2018 2017 Other Postretirement Benefits: Service cost $ 2 $ 2 $ 2 Interest cost 31 26 29 Expected return on plan assets (1) — — Amortization of prior service credit (42) (6) (1) Recognized actuarial net gain (12) (10) (9) Net periodic other postretirement (benefit) cost $ (22) $ 12 $ 21 Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2019 are as follows: (dollars in millions) Current year actuarial gain $ (10) Amortization of prior service credit 42 Amortization of actuarial net gain 12 Other 2 Total recognized in other comprehensive loss $ 46 Net recognized in net periodic other postretirement benefit cost and other comprehensive loss $ 24 The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2020 include actuarial net gains of $13 million and prior service credits of $3 million. Major assumptions used in determining the benefit obligation and net cost for postretirement plans are presented in the following table as weighted-averages: Benefit Obligation Net Cost 2019 2018 2019 2018 2017 Discount rate 3.0 % 4.1 % 4.0 % 3.4 % 3.8 % Expected return on assets — — 7.0 % 7.0 % N/A Assumed health care cost trend rates are as follows: 2019 2018 Health care cost trend rate assumed for next year 6.5 % 7.0 % Rate that the cost trend rate gradually declines to 5.0 % 5.0 % Year that the rate reaches the rate it is assumed to remain at 2026 2026 Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: 2019 One-Percentage-Point (dollars in millions) Increase Decrease Effect on total service and interest cost $ 1 $ (1) Effect on postretirement benefit obligation 25 (22) Benefit payments, including net amounts to be paid from corporate assets and reflecting expected future service, as appropriate, are expected to be paid as follows: $67 million in 2020, $64 million in 2021, $60 million in 2022, $56 million in 2023, $53 million in 2024, and $210 million from 2025 through 2029. Stock-based Compensation. RTC’s long-term incentive plans authorize various types of market and performance based incentive awards that may be granted to officers and employees. The RTC 2018 Long-Term Incentive Plan (2018 LTIP) was approved by shareholders on April 30, 2018 and its predecessor plan (the Legacy LTIP), was last amended on February 5, 2016. A total of 184 million shares have been authorized for issuance pursuant to awards under these Plans. There are 252,000 shares outstanding that were issued under the Rockwell Collins, Inc. 2015 Long-Term Incentive Plan. No new equity awards will be issued under that plan. As of December 31, 2019, approximately 42 million shares remain available for awards under the 2018 LTIP. No shares remain available for future awards under the Legacy LTIP. Neither plan contains an aggregate annual award limit, however, each Plan sets an annual award limit per participant. We expect that the shares awarded on an annual basis will range from 1.0% to 1.5% of shares outstanding. The 2018 LTIP will expire after all authorized shares have been awarded or April 30, 2028, whichever is sooner. Under both Plans, the exercise price of awards is set on the grant date and may not be less than the fair market value per share on that date. Generally, stock appreciation rights and stock options have a term of ten years and a three-year vesting period, subject to limited exceptions. In the event of retirement, annual stock appreciation rights, stock options, and restricted stock units held for more than one year may become vested and exercisable, subject to certain terms and conditions. LTIP awards with performance-based vesting generally have a minimum three-year vesting period and vest based on actual performance against pre-established metrics. In the event of retirement, performance-based awards held for more than one year, remain eligible to vest based on actual performance relative to target metrics. We have historically repurchased shares of our common stock in an amount at least equal to the number of shares issued under our equity compensation arrangements and will continue to evaluate this policy in conjunction with our overall share repurchase program. We measure the cost of all share-based payments, including stock options, at fair value on the grant date and recognize this cost in the Consolidated Statement of Operations, net of expected forfeitures, as follows: (dollars in millions) 2019 2018 2017 Total compensation cost recognized $ 268 $ 169 $ 129 The associated future income tax benefit recognized was $47 million, $31 million and $28 million for the years ended December 31, 2019, 2018 and 2017, respectively. The amounts have been adjusted for the impact of the TCJA. For the years ended December 31, 2019, 2018 and 2017, the amount of cash received from the exercise of stock options was $27 million, $36 million and $29 million, respectively, with an associated tax benefit realized of $75 million, $59 million and $100 million, respectively. In addition, for the years ended December 31, 2019, 2018 and 2017, the associated tax benefit realized from the vesting of performance share units and other restricted awards was $36 million, $13 million and $12 million, respectively. At December 31, 2019, there was $291 million of total unrecognized compensation cost related to non-vested equity awards granted under long-term incentive plans. This cost is expected to be recognized ratably over a weighted-average period of 2.9 years. A summary of the transactions under all long-term incentive plans for the year ended December 31, 2019 follows. The amounts in the tables and paragraphs below have not been recast for discontinued operations. Stock Options Stock Appreciation Rights Performance Share Units Other (shares and units in thousands) Shares Average Price (1) Shares Average Price (1) Units Average Price (1) Outstanding at: December 31, 2018 1,603 $ 99.89 32,066 $ 99.95 1,806 $ 110.41 3,047 Granted 339 124.72 8,081 123.54 839 121.22 1,223 Ancillary (2) — — — — 101 95.28 — Exercised / earned (317) 88.61 (6,843) 84.44 (758) 95.28 (816) Cancelled (57) 121.69 (591) 122.76 (69) 118.21 (135) December 31, 2019 1,568 $ 106.75 32,713 $ 108.61 1,919 $ 120.04 3,319 (1) Weighted-average grant / exercise price. (2) Ancillary shares earned based on actual performance achieved on the 2016 award. The weighted-average grant date fair value of stock options and stock appreciation rights granted during 2019, 2018 and 2017 was $20.81, $20.24 and $17.22, respectively. The weighted-average grant date fair value of performance share units, which vest upon achieving certain performance metrics, granted during 2019, 2018 and 2017 was $117.87, $131.55 and $111.00, respectively. The total fair value of awards vested during the years ended December 31, 2019, 2018 and 2017 was $211 million, $149 million and $138 million, respectively. The total intrinsic value (which is the amount by which the stock price exceeded the exercise price on the date of exercise) of stock options and stock appreciation rights exercised during the years ended December 31, 2019, 2018 and 2017 was $383 million, $283 million and $320 million, respectively. The total intrinsic value (which is the stock price at vesting) of performance share units and other restricted awards vested was $188 million, $74 million and $49 million during the years ended December 31, 2019, 2018 and 2017, respectively. The following table summarizes information about equity awards outstanding that are vested and expected to vest as well as equity awards outstanding that are exercisable at December 31, 2019: Equity Awards Vested and Expected to Vest Equity Awards That Are Exercisable (shares in thousands; aggregate intrinsic value in millions) Awards Average Price (1) Aggregate Remaining Term (2) Awards Average Price (1) Aggregate Remaining Term (2) Stock Options/Stock Appreciation Rights 33,769 $ 107.58 $ 1,424 5.9 years 19,285 $ 96.56 $ 1,026 4.0 years Performance Share Units/Restricted Stock 5,514 — 826 2.1 years (1) Weighted-average exercise price per share. (2) Weighted-average contractual remaining term in years. The fair value of each option award is estimated on the date of grant using a binomial lattice model. The following table indicates the assumptions used in estimating fair value for the years ended December 31, 2019, 2018 and 2017. Lattice-based option models incorporate ranges of assumptions for inputs; those ranges are as follows: 2019 2018 2017 Expected volatility 18.8% - 19.7% 17.5% - 21.1% 19 % Weighted-average volatility 20 % 18 % 19 % Expected term (in years) 6.5 - 6.6 6.5 - 6.6 6.5 Expected dividend yield 2.4 % 2.2 % 2.4 % Risk-free rate 2.3% - 2.7% 1.3% - 2.7% 0.5% - 2.5% Expected volatilities are based on the returns of our stock, including implied volatilities from traded options on our stock for the binomial lattice model. We use historical data to estimate equity award exercise and employee termination behavior within the valuation model. The expected term represents an estimate of the period of time equity awards are expected to remain outstanding. The risk-free rate is based on the term structure of interest rates at the time of equity award grant. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |
Income Taxes | INCOME TAXES Income Before Income Taxes. The sources of income from continuing operations before income taxes are: (dollars in millions) 2019 2018 2017 United States $ 1,594 $ 635 $ 607 Foreign 2,558 1,869 1,915 $ 4,152 $ 2,504 $ 2,522 On December 22, 2017 Public Law 115-97 “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” was enacted. This law is commonly referred to as the Tax Cuts and Jobs Act of 2017 (TCJA). Company no longer intends to reinvest certain undistributed earnings of its international subsidiaries that have been previously taxed in the U.S. As such, in 2018 it recorded the international taxes associated with the future remittance of these earnings. For the remainder of the Company’s undistributed international earnings, unless tax effective to repatriate, RTC will continue to permanently reinvest these earnings. As of December 31, 2019, such undistributed earnings were approximately $21 billion, excluding other comprehensive income amounts. It is not practicable to estimate the amount of tax that might be payable on the remaining amounts. Total undistributed earnings include discontinued operations. Provision for Income Taxes. The income tax expense (benefit) for the years ended December 31, 2019, 2018 and 2017 consisted of the following components: (dollars in millions) 2019 2018 2017 Current: United States: Federal $ (100) $ (68) $ 709 State (58) 1 (42) Foreign 541 402 284 383 335 951 Future: United States: Federal 121 45 (48) State 56 58 85 Foreign (139) 660 66 38 763 103 Income tax expense $ 421 $ 1,098 $ 1,054 Attributable to items credited (charged) to equity $ 40 $ 501 $ (128) Reconciliation of Effective Income Tax Rate. Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows: 2019 2018 2017 Statutory U.S. federal income tax rate 21.0 % 21.0 % 35.0 % Tax on international activities (3.1) % (5.1) % (15.3) % Tax audit settlements (7.0) % — % (2.2) % U.S. tax reform — % 29.7 % 27.4 % Other (0.8) % (1.8) % (3.1) % Effective income tax rate 10.1 % 43.8 % 41.8 % The 2019 effective tax rate includes $290 million of tax benefits associated with the conclusion of the audit by the Examination Division of the Internal Revenue Service for the RTC 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. Additionally, tax benefits included in 2019 are those associated with Foreign Derived Intangible Income (FDII) and U.S. Research & Development Credits, offset by a tax charge associated with Global Intangible Low-Taxed Income (GILTI). The 2019 decrease in the cost of U.S. and foreign tax on international activities is primarily attributable to the full phase-in of the TCJA provisions on the Company’s international subsidiaries. In addition, the decrease in the rate benefit of both international and other activities is impacted by the increase in pre-tax income related to the Rockwell Collins business. The 2018 effective tax rate reflects a net tax charge of $744 million for TCJA related adjustments. The amount is primarily associated with non-U.S. taxes that will become due when previously reinvested earnings of certain international subsidiaries are remitted. The 2018 and 2019 effective tax rate reconciliation reflects the corporate rate reduction enacted by the TCJA. The decrease in international activities is primarily related to higher international tax costs compared to the U.S. federal statutory rate. The decrease in other activities is primarily attributable to non-deductible expenses, including costs relating to the Rockwell Collins acquisition. The 2017 effective tax rate reflects a net tax charge of $690 million attributable to the passage of the TCJA. These 2017 provisional amounts, recorded as described in SAB 118, relate to U.S. income tax attributable to previously undistributed earnings of RTC’s international subsidiaries and equity investments, net of foreign tax credits, and the revaluation of U.S. deferred income taxes. Deferred Tax Assets and Liabilities. Future income taxes represent the tax effects of transactions which are reported in different periods for tax and financial reporting purposes. These amounts consist of the tax effects of temporary differences between the tax and financial reporting balance sheets and tax carryforwards. Future income tax benefits and payables within the same tax paying component of a particular jurisdiction are offset for presentation in the Consolidated Balance Sheet. The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2019 and 2018 are as follows: (dollars in millions) 2019 2018 Future income tax benefits: Insurance and employee benefits $ 1,205 $ 1,154 Other asset basis differences 829 1,013 Other liability basis differences 2,153 1,482 Tax loss carryforwards 622 583 Tax credit carryforwards 1,021 1,050 Valuation allowances (616) (605) $ 5,214 $ 4,677 Future income taxes payable: Intangible assets $ 4,293 $ 4,462 Other asset basis differences 2,904 2,159 Other items, net 143 123 $ 7,340 $ 6,744 Valuation allowances have been established primarily for tax credit carryforwards, tax loss carryforwards, and certain foreign temporary differences to reduce the future income tax benefits to expected realizable amounts. This table includes $442 million net deferred tax assets in 2019 and $393 million net deferred tax assets in 2018 related to discontinued operations. Tax Credit and Loss Carryforwards. At December 31, 2019, tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows: (dollars in millions) Tax Credit Tax Loss Expiration period: 2020-2024 $ 59 $ 393 2025-2029 27 179 2030-2039 336 394 Indefinite 599 2,218 Total $ 1,021 $ 3,184 Total tax credit and loss carryforwards include discontinued operations. Unrecognized Tax Benefits. At December 31, 2019, we had gross tax-effected unrecognized tax benefits of $1,347 million, of which $1,338 million, if recognized, would impact the effective tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 is as follows: (dollars in millions) 2019 2018 2017 Balance at January 1 $ 1,619 $ 1,189 $ 1,086 Additions for tax positions related to the current year 131 192 192 Additions for tax positions of prior years 73 344 73 Reductions for tax positions of prior years (101) (91) (91) Settlements (375) (15) (71) Balance at December 31 $ 1,347 $ 1,619 $ 1,189 Gross interest expense related to unrecognized tax benefits $ 57 $ 37 $ 34 Total accrued interest balance at December 31 $ 249 $ 255 $ 215 The 2018 amounts above include amounts related to the acquisition of Rockwell Collins. Total unrecognized tax benefits include discontinued operations. We conduct business globally and, as a result, RTC 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 2009. During 2019, the Company recognized a net gain of approximately $307 million, including pre-tax interest of approximately $56 million as a result of the conclusion of the IRS audit of the Company’s 2014, 2015 and 2016 tax years as well as an amnesty filing in Italy made to resolve certain tax litigation. The Company also recognized a non-cash gain of approximately $40 million, primarily tax, as a result of the closure of an IRS audit of the 2014 tax year of a subsidiary acquired as part of RTC’s acquisition of Rockwell Collins. This gain was partially offset by the unfavorable pre-tax impact of a reversal of a related indemnity asset of approximately $23 million. Finally, the Company recognized net non-cash gains of approximately $18 million, including pre-tax interest of approximately $5 million, as a result of various federal, state and non-U.S. statute of limitations expirations and settlements with tax authorities. During 2017, the Company recognized a noncash gain of approximately $64 million, including a pre-tax interest adjustment of $9 million, as a result of federal, state and non-U.S. tax year closures related to audit resolutions and the expiration of applicable statutes of limitation, including expiration of the U.S. federal income tax statute of limitations for RTC’s 2013 tax year. The Examination Division of the Internal Revenue Service (IRS) is currently auditing Rockwell Collins fiscal tax years 2016 and 2017, prior to its acquisition by RTC, which will continue into 2020. Separately, the Examination Division of the IRS has notified the Company of its intention to commence an audit of RTC tax years 2017 and 2018 during the first half of 2020. It is reasonably possible that a net reduction within the range of $50 million to $650 million of unrecognized tax benefits may occur over the next 12 months as a result of the separation of Carrier and Otis, additional worldwide uncertain tax positions, the revaluation of current uncertain tax positions arising from developments in examinations, in appeals, or in the courts, or the closure of tax statutes. Total unrecognized tax benefits include discontinued operations. |
Restructuring and Other Costs
Restructuring and Other Costs | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | During 2019, we recorded net pre-tax restructuring costs totaling $245 million for new and ongoing restructuring actions. We recorded charges in the segments as follows: (dollars in millions) Pratt & Whitney 133 Collins Aerospace Systems 106 Eliminations and other 6 Total $ 245 Restructuring charges incurred in 2019 primarily relate to actions initiated during 2019 and 2018, and were recorded as follows: (dollars in millions) Cost of sales $ 177 Selling, general & administrative 64 Non-service pension (benefit) 4 Total $ 245 2019 Actions. During 2019, we recorded net pre-tax restructuring costs totaling $162 million for restructuring actions initiated in 2019, consisting of $122 million in cost of sales and $40 million in selling, general and administrative expenses. The 2019 actions relate to ongoing cost reduction efforts, including workforce reductions and consolidation of field operations. We are targeting to complete in 2020 and 2021 the majority of the remaining workforce and all facility related cost reduction actions initiated in 2019. No specific plans for significant other actions have been finalized at this time. The following table summarizes the accrual balances and utilization by cost type for the 2019 restructuring actions: (dollars in millions) Severance Facility Exit & Other Costs Total Net pre-tax restructuring costs $ 151 $ 11 $ 162 Utilization, foreign exchange and other costs (104) — (104) Balance at December 31, 2019 $ 47 $ 11 $ 58 The following table summarizes expected, incurred and remaining costs for the 2019 restructuring actions by segment: (dollars in millions) Expected Costs Cost Incurred During 2019 Remaining Costs at December 31, 2019 Pratt & Whitney 133 (133) — Collins Aerospace Systems 120 (27) 93 Eliminations and other 2 (2) — Total $ 255 $ (162) $ 93 2018 Actions. During 2019, we recorded net pre-tax restructuring costs totaling $23 million for restructuring actions initiated in 2018, consisting of $12 million in cost of sales and $11 million in selling, general and administrative expenses. The 2018 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. The following table summarizes the accrual balances and utilization by cost type for the 2018 restructuring actions: (dollars in millions) Severance Facility Exit Total Restructuring accruals at January 1, 2019 $ 60 $ 22 $ 82 Net pre-tax restructuring costs 22 1 23 Utilization, foreign exchange and other costs (76) (22) (98) Balance at December 31, 2019 $ 6 $ 1 $ 7 The following table summarizes expected, incurred and remaining costs for the 2018 programs by segment: (dollars in millions) Expected Costs Costs Remaining Pratt & Whitney 3 (3) — — Collins Aerospace Systems 111 (87) (23) 1 Eliminations and other 7 (5) — 2 Total $ 121 $ (95) $ (23) $ 3 2017 and Prior Actions. During 2019, we recorded net pre-tax restructuring costs totaling $60 million for restructuring actions initiated in 2017 and prior. As of December 31, 2019, we have approximately $59 million of accrual balances remaining related to 2017 and prior actions. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments Disclosure [Text Block] | NOTE 15: 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 $17.8 billion and $20.1 billion at December 31, 2019 and 2018, respectively. These amounts are inclusive of the notional amount of Otis and Carrier foreign exchange contracts. Additional information pertaining to foreign exchange and hedging activities is included in “Note 1: Summary of Accounting Principles.” The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivative instruments as of December 31, 2019 and 2018: (dollars in millions) Balance Sheet Location December 31, 2019 December 31, 2018 Derivatives designated as hedging instruments: Foreign exchange contracts Asset Derivatives: Other assets, current $ 23 $ 22 Liability Derivatives: Accrued liabilities 166 194 Derivatives not designated as hedging instruments: Foreign exchange contracts Asset Derivatives: Other assets, current 23 27 Liability Derivatives: Accrued liabilities 116 89 The effect of cash flow hedging relationships on accumulated other comprehensive income for the years ended December 31, 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. Year Ended December 31, (dollars in millions) 2019 2018 Loss recorded in Accumulated other comprehensive loss $ (33) $ (307) Loss (Gain) reclassified from Accumulated other comprehensive loss into Product sales $ 51 $ (16) The table above reflects the effect of cash flow hedging relationships on the Consolidated Statement of Operations for the years ended December 31, 2019 and 2018. 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 approximately €4.2 billion of euro-denominated long-term debt, which qualifies as a net investment hedge against our investments in European businesses . As of December 31, 2019, the net investment hedge is deemed to be effective. Assuming current market conditions continue, a $33 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 December 31, 2019, all derivative contracts accounted for as cash flow hedges will mature b y January 2024. The effect of derivatives not designated as hedging instruments within Other income, net, on the Consolidated Statement of Operations was as follows: Year Ended December 31, (dollars in millions) 2019 2018 Foreign exchange contracts $ 91 $ 127 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 nonrecurring basis in our Consolidated Balance Sheet as of December 31, 2019 and 2018: December 31, 2019 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 53 $ 53 $ — $ — Derivative assets 46 — 46 — Derivative liabilities (282) — (282) — December 31, 2018 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 48 $ 48 $ — $ — Derivative assets 49 — 49 — Derivative liabilities (283) — (283) — 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 December 31, 2019, there were no significant transfers in or out of Level 1 or Level 2. As of December 31, 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 Consolidated Balance Sheet at December 31, 2019 and 2018: December 31, 2019 December 31, 2018 (dollars in millions) Carrying Fair Carrying Fair Customer financing notes receivable 220 220 226 219 Short-term borrowings (2,293) (2,293) (1,428) (1,428) Long-term debt (excluding finance leases) (40,883) (45,887) (43,703) (43,710) Long-term liabilities (334) (320) (505) (464) The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Consolidated Balance Sheet as of December 31, 2019 and 2018: December 31, 2019 (dollars in millions) Total Level 1 Level 2 Level 3 Customer financing notes receivable 220 — 220 — Short-term borrowings (2,293) — — (2,293) Long-term debt (excluding finance leases) (45,887) — (45,802) (85) Long-term liabilities (320) — (320) — December 31, 2018 (dollars in millions) Total Level 1 Level 2 Level 3 Customer financing notes receivable 219 — 219 — Short-term borrowings (1,428) — (1,258) (170) Long-term debt (excluding finance leases) (43,710) — (43,620) (90) Long-term liabilities (464) — (464) — |
Variable Interest Entities (Not
Variable Interest Entities (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | VARIABLE INTEREST ENTITIESPratt & Whitney holds a 61% program share 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 engine 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% program share 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 Consolidated Balance Sheet as of December 31, 2019 and 2018 are as follows: (dollars in millions) 2019 2018 Current assets $ 5,448 $ 5,622 Noncurrent assets 894 710 Total assets $ 6,342 $ 6,332 Current liabilities $ 6,971 $ 6,742 Noncurrent liabilities 94 102 Total liabilities $ 7,065 $ 6,844 |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Guarantees [Abstract] | |
Guarantees | We extend a variety of financial, market value and product performance guarantees to third parties. As of December 31, 2019 and 2018, the following financial guarantees were outstanding: December 31, 2019 December 31, 2018 (dollars in millions) Maximum Carrying Maximum Carrying Commercial aerospace financing arrangements (see Note 5) $ 333 $ 7 $ 348 $ 9 Credit facilities and debt obligations — — 15 — Performance guarantees 48 — 55 5 We also have obligations arising from sales of certain businesses and assets, including those from representations and warranties and related indemnities for environmental, health and safety, tax and employment matters. The maximum potential payment related to these obligations is not a specified amount as a number of the obligations do not contain financial caps. The carrying amount of liabilities related to these obligations was $166 million and $175 million at December 31, 2019 and 2018, respectively. For additional information regarding the environmental indemnifications, see “Note 19: Contingent Liabilities.” We accrue for costs associated with guarantees when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts, and where no amount within a range of estimates is more likely, the minimum is accrued. In accordance with the Guarantees Topic of the FASB ASC, we record these liabilities at fair value. We provide service and warranty policies on our products and extend performance and operating cost guarantees beyond our normal service and warranty policies on some of our products, particularly commercial aircraft engines. In addition, we incur discretionary costs to service our products in connection with specific product performance issues. Liabilities for performance and operating cost guarantees are based upon future product performance and durability, and are largely estimated based upon historical experience. Adjustments are made to accruals as claim data and historical experience warrant. The changes in the carrying amount of service and product warranties and product performance guarantees for the years ended December 31, 2019 and 2018 are as follows: (dollars in millions) 2019 2018 Balance as of January 1 $ 929 $ 591 Warranties and performance guarantees issued 444 421 Settlements made (330) (284) Other (1) (10) 201 Balance as of December 31 $ 1,033 $ 929 (1) Other in 2018 is driven by the Rockwell Collins acquisition. |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | CONTINGENT LIABILITIESExcept 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 regulatory authorities with jurisdiction over our foreign operations. As described in Note 1 to the Consolidated Financial Statements, 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. As of December 31, 2019 and 2018, we had $725 million and $662 million, respectively, reserved for environmental remediation. Additional information pertaining to environmental matters is included in “Note 1: Summary of Accounting Principles.” 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. The Company may be, and has been, required to make payments into escrow of disputed liabilities while the related litigation is pending. If the litigation is resolved in the Company’s favor, any such payments will be returned to the Company with interest. 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 As previously disclosed, 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 $563 million through December 31, 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 $98.4 million through December 31, 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 $56.2 million through December 31, 2019), which we also believe is without merit and which Pratt & Whitney appealed to the ASBCA in January 2019. Other. As described in “Note 18: Guarantees,” 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. Of note, the design, development, production and support of new aerospace technologies is inherently complex and subject to risk. Since the PW1000G Geared TurboFan engine entered into service in 2016, technical issues have been identified and experienced with the engine, which is usual for new engines and new aerospace technologies. Pratt & Whitney has addressed these issues through various improvements and modifications. These issues have resulted in financial impacts, including increased warranty provisions, customer contract settlements, and reductions in contract performance estimates. Additional technical issues may also arise in the normal course, which may result in financial impacts that could be material to the Company’s financial position, results of operations and cash flows. 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 of these proceedings, 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. |
Segment Financial Data
Segment Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Financial Data | SEGMENT FINANCIAL DATA Our operations for the periods presented herein are classified into two principal segments. The segments are generally determined 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. Pratt & Whitney products include commercial, military, business jet and general aviation aircraft engines, parts and services sold to a diversified customer base, including international and domestic commercial airlines and aircraft leasing companies, aircraft manufacturers, and U.S. and foreign governments. Pratt & Whitney also provides product support and a full range of overhaul, repair and fleet management services. Collins Aerospace Systems provides technologically advanced aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military and space operations. Products include electric power generation, power management and distribution systems, air data and aircraft sensing systems, engine control systems, intelligence, surveillance and reconnaissance systems, engine components, environmental control systems, fire and ice detection and protection systems, propeller systems, engine nacelle systems, including thrust reversers and mounting pylons, interior and exterior aircraft lighting, aircraft seating and cargo systems, actuation systems, landing systems, including landing gear, wheels and brakes, and space products and subsystems, integrated avionics systems, precision targeting, electronic warfare and range and training systems, flight controls, communications systems, navigation systems, oxygen systems, simulation and training systems, food and beverage preparation, storage and galley systems, lavatory and wastewater management systems. Aftermarket services include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and information management services. We have reported our financial and operational results for the periods presented herein under the two principal segments noted above, consistent with how we have reviewed our business operations for decision-making purposes, resource allocation and performance assessment during 2019. Segment Information. Total sales by segment include intersegment sales, which are generally made at prices approximating those that the selling entity is able to obtain on external sales. Segment information for the years ended December 31 is as follows: Net Sales Operating Profits (dollars in millions) 2019 2018 2017 2019 2018 2017 Pratt & Whitney 20,892 19,397 16,160 1,668 1,269 1,300 Collins Aerospace Systems 26,028 16,634 14,691 4,100 2,303 2,191 Total segment 46,920 36,031 30,851 5,768 3,572 3,491 Eliminations and other (1,571) (1,330) (1,138) (339) (220) (63) General corporate expenses — — — (515) (475) (439) Consolidated $ 45,349 $ 34,701 $ 29,713 $ 4,914 $ 2,877 $ 2,989 Total Assets Capital Expenditures Depreciation & Amortization (dollars in millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Pratt & Whitney 31,271 29,341 26,768 822 866 923 980 852 672 Collins Aerospace Systems 74,049 73,115 34,567 959 515 527 1,749 883 823 Total segment 105,320 102,456 61,335 1,781 1,381 1,450 2,729 1,735 1,495 Eliminations and other 2,472 1,015 4,659 87 86 106 (21) 161 85 Assets related to discontinued operations $ 31,823 $ 30,740 $ 30,926 Consolidated $ 139,615 $ 134,211 $ 96,920 $ 1,868 $ 1,467 $ 1,556 $ 2,708 $ 1,896 $ 1,580 Geographic External Sales and Operating Profit. Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. U.S. external sales include export sales to commercial customers outside the U.S. and sales to the U.S. Government, commercial and affiliated customers, which are known to be for resale to customers outside the U.S. Long-lived assets are net fixed assets attributed to the specific geographic regions. External Net Sales Operating Profits Long-Lived Assets (dollars in millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 United States Operations $ 35,125 $ 26,646 $ 21,975 $ 3,287 $ 1,790 $ 1,603 $ 6,507 $ 6,165 $ 4,424 International Operations Europe 4,419 3,092 2,747 1,480 1,027 826 1,268 1,272 1,147 Asia Pacific 1,989 1,645 1,779 444 365 351 917 905 685 Other 5,387 4,648 4,350 557 390 711 1,089 1,064 1,082 Eliminations and other (1,571) (1,330) (1,138) (854) (695) (502) 541 500 469 Consolidated $ 45,349 $ 34,701 $ 29,713 $ 4,914 $ 2,877 $ 2,989 $ 10,322 $ 9,906 $ 7,807 Sales from U.S. operations include export sales as follows: (dollars in millions) 2019 2018 2017 Europe $ 7,078 $ 6,217 $ 5,197 Asia Pacific 6,411 5,355 3,526 Other 3,295 1,966 1,675 Total $ 16,784 $ 13,538 $ 10,398 Sales by primary geographical market for the year ended December 31, 2019 is as follows: (dollars in millions) Pratt & Whitney Collins Aerospace Systems Total Primary Geographical Markets United States $ 16,148 $ 18,977 $ 35,125 Europe 498 3,921 4,419 Asia Pacific 1,164 825 1,989 Other* 3,082 2,305 5,387 Total segment $ 20,892 $ 26,028 $ 46,920 Eliminations and other (1,571) Consolidated $ 45,349 Sales by primary geographical market for the year ended December 31, 2018 is as follows: (dollars in millions) Pratt & Whitney Collins Aerospace Systems Total Primary Geographical Markets United States $ 14,852 $ 11,794 $ 26,646 Europe 594 2,498 3,092 Asia Pacific 1,277 368 1,645 Other (1) 2,674 1,974 4,648 Total segment $ 19,397 $ 16,634 $ 36,031 Eliminations and other (1,330) Consolidated $ 34,701 (1) Other includes sales to other regions as well as intersegment sales. Segment sales disaggregated by product type and product versus service for the year ended December 31, 2019 are as follows: (dollars in millions) Pratt & Whitney Collins Aerospace Systems Total Product Type Commercial and industrial, non aerospace $ 102 $ 51 $ 153 Commercial aerospace 14,516 19,005 33,521 Military aerospace 6,274 6,972 13,246 Total segment $ 20,892 $ 26,028 $ 46,920 Eliminations and other (1,571) Consolidated $ 45,349 Sales Type Product $ 12,977 $ 21,440 $ 34,417 Service 7,915 4,588 12,503 Total segment $ 20,892 $ 26,028 $ 46,920 Eliminations and other (1,571) Consolidated $ 45,349 Segment sales disaggregated by product type and product versus service for the year ended December 31, 2018 are as follows: (dollars in millions) Pratt & Whitney Collins Aerospace Systems Total Product Type Commercial and industrial, non aerospace $ 55 $ 60 $ 115 Commercial aerospace 14,027 12,564 26,591 Military aerospace 5,315 4,010 9,325 Total segment $ 19,397 $ 16,634 $ 36,031 Eliminations and other (1,330) Consolidated $ 34,701 Sales Type Product $ 11,410 $ 13,915 $ 25,325 Service 7,987 2,719 10,706 Total segment $ 19,397 $ 16,634 $ 36,031 Eliminations and other (1,330) Consolidated $ 34,701 Major Customers. Net Sales include sales under prime contracts and subcontracts to the U.S. Government as follows: (dollars in millions) 2019 2018 2017 Pratt & Whitney $ 5,614 $ 4,489 $ 3,347 Collins Aerospace Systems 4,802 2,779 2,299 Other 12 10 12 Total $ 10,428 $ 7,278 $ 5,658 Sales to Airbus prior to discounts and incentives were approximately $9,879 million, $10,025 million and $8,908 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS (UNAUDITED) Separation Transactions and Distributions. As previously described in “Note 1: Summary of Accounting Principles,” on April 3, 2020, the Company completed the previously announced separation of its business into three independent, publicly traded companies – UTC, Carrier and Otis (such separations, the Separation Transactions). UTC distributed all of the outstanding shares of Carrier common stock and all of the outstanding shares of Otis common stock to UTC shareowners who held shares of UTC common stock as of the close of business on March 19, 2020, the record date for the Distributions. UTC distributed 866,158,910 and 433,079,455 shares of common stock of Carrier and Otis, respectively in the Distributions, each of which was effective at 12:01 a.m., Eastern Time, on April 3, 2020. The historical results of Otis and Carrier are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Unless otherwise indicated, amounts and activity throughout this Form 8-K are presented on a continuing operations basis. Raytheon Merger. On April 3, 2020, following the completion of the Separation Transactions and Distributions, pursuant to an Agreement and Plan of Merger dated June 9, 2019, as amended UTC and Raytheon completed their previously announced all-stock merger of equals. Raytheon (previously NYSE: RTN) shares ceased trading prior to the market open on April 3, 2020, and each share of Raytheon common stock was converted in the merger into the right to receive 2.3348 shares of UTC common stock previously traded on the NYSE under the ticker symbol “UTX.” Upon closing of the Raytheon Merger, Raytheon Company became a wholly-owned subsidiary of UTC, which changed its name to “Raytheon Technologies Corporation,” (Raytheon Technologies), and its shares of common stock began trading as of April 3, 2020 on the NYSE under the ticker symbol “RTX.” In the third quarter of 2020, in accordance with conditions imposed for regulatory approval of the Raytheon Merger, we completed the sale of our Collins Aerospace military Global Positioning System (GPS) and space-based precision optics businesses for $2.3 billion in cash, resulting in an aggregate pre-tax gain, net of transaction costs, of $580 million ($253 million after tax). COVID-19 Pandemic and related impacts. In March 2020, the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government. The pandemic has negatively affected the U.S. and global economy, disrupted global supply chains and financial markets, and resulted in significant travel restrictions, mandated facility closures and shelter-in-place and social distancing orders in numerous jurisdictions around the world. Raytheon Technologies is taking all prudent measures to protect the health and safety of our employees, such as practicing social distancing, performing deep cleaning in all of our facilities, and enabling our employees to work from home where possible. We have also taken appropriate actions to help support our communities in addressing the challenges posed by the pandemic, including the production and donation of personal protective equipment. Our business and operations and the industries in which we operate have been significantly impacted by public and private sector policies and initiatives in the U.S. and worldwide to address the transmission of COVID-19, such as the imposition of travel restrictions and the adoption of remote working. Additionally, public sentiments regarding air travel have also had a significant impact . We began to experience issues related to COVID-19 in the first quarter of 2020, primarily related to a limited number of facility closures, less than full staffing, and disruptions in supplier deliveries, most significantly in our Collins Aerospace and Pratt & Whitney businesses. However, our customers continued to receive our products and services during the first quarter and the outbreak did not have a significant impact on our operating results for the quarter ended March 31, 2020. The continued disruption to air travel and commercial activities and the significant restrictions and limitations on businesses, particularly within the aerospace and commercial airline industries, have negatively impacted global supply, demand and distribution capabilities. These conditions, which began in the second quarter of 2020, have continued in the third quarter of 2020. In particular, the unprecedented decrease in air travel resulting from the COVID-19 pandemic is adversely affecting our airline and airframer customers, and their demand for the products and services of our Collins Aerospace and Pratt & Whitney businesses. Based on recent public data and estimates, revenue passenger miles (RPMs) for the year ending December 31, 2020 could decline by more than 60% in comparison to the prior year due to the pandemic. As a result, our airline customers have reported significant reductions in fleet utilization, aircraft grounding and unplanned retirements, and have deferred and, in some cases, cancelled new aircraft deliveries. Airlines have shifted to cash conservation behaviors such as deferring engine maintenance due to lower flight hours and aircraft utilization, requesting extended payment terms, deferring delivery of new aircraft and spare engines and requesting discounts on engine maintenance. Some airline customers have filed for bankruptcy due to their inability to meet their financial obligations. Additionally, we are seeing purchase order declines in line with publicly communicated aircraft production volumes as original equipment manufacturer (OEM) customers delay and cancel orders. We continue to monitor these trends and are working closely with our customers. We are actively mitigating costs and adjusting production schedules to accommodate these declines in demand. We have also been taking actions to preserve capital and protect the long-term needs of our businesses, including cutting discretionary spending, significantly reducing capital expenditures and research and development spend, suspending our share buybacks, deferring merit increases and implementing temporary pay reductions, freezing non-essential hiring, repositioning employees to defense work, furloughing employees when needed, and personnel reductions. In the nine months ended September 30, 2020, we recorded total restructuring charges of $685 million primarily related to personnel reductions at our Collins Aerospace and Pratt & Whitney businesses to preserve capital and at our Corporate Headquarters due to consolidation from the Raytheon Merger. The former Raytheon Company businesses have not experienced significant facility closures or other significant business disruptions as a result of the COVID-19 pandemic. Given the significant reduction in business and leisure passenger air travel, the number of planes temporarily grounded, and continued travel restrictions that have resulted from the pandemic, we expect our future operating results, particularly those of our Collins Aerospace and Pratt & Whitney businesses to continue to be significantly negatively impacted. Our expectations regarding the COVID-19 pandemic and its potential financial impact are based on available information and assumptions that we believe are reasonable at this time; however, the actual financial impact is highly uncertain and subject to a wide range of factors and future developments. While we believe that the long-term outlook for the aerospace industry remains positive due to the fundamental drivers of air travel demand, there is significant uncertainty with respect to when and if commercial air traffic levels will begin to recover, and whether and at what point capacity will return to and/or exceed pre-COVID-19 levels. Our latest estimates are that this recovery may occur in 2023 or 2024. New information may emerge concerning the scope, severity and duration of the COVID-19 pandemic, as well as any worsening of the pandemic and whether there will be additional outbreaks of the pandemic, actions to contain its spread or treat its impact, and governmental, business and individuals’ actions taken in response to the pandemic (including restrictions and limitations on travel and transportation) among others. We considered the deterioration in general economic and market conditions primarily due to the COVID-19 pandemic to be a triggering event in the first and second quarters of 2020 requiring us to reassess our commercial aerospace business goodwill and intangibles valuations, as well as our significant assumptions of future cash flows from our underlying assets and potential changes in our liabilities. Beginning in the second quarter of 2020, our revenue at Collins Aerospace and Pratt & Whitney has been significantly negatively impacted by the decline in flight hours, aircraft fleet utilization, shop visits and commercial OEM deliveries. In order to evaluate the ongoing impact, in the second quarter of 2020, we updated our forecast assumptions of future business activity which are subject to a wide range of uncertainties, including those noted above. Based upon our analysis, we concluded that the carrying value of two of our Collins Aerospace reporting units was greater than its respective fair value, and accordingly, recorded a goodwill impairment charge of $3.2 billion. As described further in “Note 5: Commercial Aerospace Industry Assets and Commitments,” we have significant exposure related to our airline and airframer customers, including significant accounts receivable and contract assets balances. Gi ven the uncertainty related to the severity and length of the pandemic, as well as any worsening of the pandemic and whether there will be additional outbreaks of the pandemic and its impact across the aerospace industry, we may be required to record additional charges or impairments in future periods. Borrowings and lines of credit: Although the impact of COVID-19 on our commercial markets is significant, we currently believe we have sufficient liquidity to withstand the potential impacts of COVID-19. With the completion of the Separation Transactions, the Distributions and the Raytheon Merger, we have a balanced and diversified portfolio of both aerospace and defense businesses which we believe will help mitigate the impacts of the COVID-19 pandemic and future business cycles. In preparation for and in anticipation of the Separation Transactions, the Distributions and the Raytheon Merger, the Company entered into and terminated a number of credit agreements. On February 11, 2020 and March 3, 2020, we terminated a $2.0 billion revolving credit agreement and a $4.0 billion term loan credit agreement, respectively. Upon termination, we repaid the $2.1 billion of borrowings outstanding on the $4.0 billion term loan credit agreement. On April 3, 2020, upon the completion of the Raytheon Merger, we terminated a $2.20 billion revolving credit agreement and a $2.15 billion multicurrency revolving credit agreement. On March 20, 2020 and March 23, 2020, we entered into two $500 million term loan credit agreements and borrowed $1.0 billion under these agreements in the first quarter of 2020. We terminated these agreements on May 5, 2020 and April 28, 2020, respectively, upon repayment. On March 16, 2020, we entered into a revolving credit agreement with various banks permitting aggregate borrowings of up to $5.0 billion which became available upon completion of the Raytheon Merger on April 3, 2020. This credit agreement matures on April 3, 2025. On May 6, 2020, we entered into a revolving credit agreement with various banks permitting aggregate borrowings of up to $2.0 billion. This credit agreement matures on May 5, 2021. As of September 30, 2020 we had revolving credit agreements with various banks permitting aggregate borrowings of up to $7.0 billion. In preparation for and in anticipation of the Separation Transactions and Distributions, the Company, Otis and Carrier issued and the Company repaid long-term debt in the nine months ended September 30, 2020, which are included in the tables below. On February 10, 2020, Otis entered into a term loan credit agreement providing for a $1.0 billion unsecured, unsubordinated 3-year term loan credit facility which matures on February 10, 2023. Also on February 10, 2020, Carrier entered into a term loan credit agreement providing for a $1.75 billion unsecured, unsubordinated 3-year term loan credit facility. On March 27, 2020, Otis and Carrier drew on the full amounts of the term loans and distributed the full proceeds to Raytheon Technologies in connection with the Separation Transactions. UTC utilized those amounts to extinguish Raytheon Technologies’ short-term and long-term debt in order to not exceed the maximum applicable net indebtedness required by the Raytheon Merger Agreement. We had the following issuances of long-term debt during the nine months ended September 30, 2020, which is inclusive of issuances made by Otis and Carrier which were primarily used by the Company to extinguish Raytheon Technologies short-term and long-term debt. (dollars in millions) Issuance Date Description of Notes Aggregate Principal Balance May 18, 2020 2.250% notes due 2030 $ 1,000 3.125% notes due 2050 1,000 March 27, 2020 Term Loan due 2023 (Otis) (1) 1,000 Term Loan due 2023 (Carrier) (1) 1,750 February 27, 2020 1.923% notes due 2023 (1) 500 LIBOR plus 0.450% floating rate notes due 2023 (1) 500 2.056% notes due 2025 (1) 1,300 2.242% notes due 2025 (1) 2,000 2.293% notes due 2027 (1) 500 2.493% notes due 2027 (1) 1,250 2.565% notes due 2030 (1) 1,500 2.722% notes due 2030 (1) 2,000 3.112% notes due 2040 (1) 750 3.377% notes due 2040 (1) 1,500 3.362% notes due 2050 (1) 750 3.577% notes due 2050 (1) 2,000 $ 19,300 (1) The debt issuances and term loan draws reflect debt incurred by Otis and Carrier. The net proceeds of these issuances were primarily utilized to extinguish Raytheon Technologies short-term and long-term debt in order to not exceed the maximum applicable net indebtedness required by the Raytheon Merger Agreement. We had the following repayments of long-term debt during the nine months ended September 30, 2020: (dollars in millions) Repayment Date Description of Notes Aggregate Principal Balance May 19, 2020 3.650% notes due 2023 (1)(2) $ 410 May 15, 2020 EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value) (2) 817 March 29, 2020 4.500% notes due 2020 (1)(2) 1,250 1.125% notes due 2021 (€950 million principal value) (1)(2) 1,082 1.250% notes due 2023 (€750 million principal value) (1)(2) 836 1.150% notes due 2024 (€750 million principal value) (1)(2) 841 1.875% notes due 2026 (€500 million principal value) (1)(2) 567 March 3, 2020 1.900% notes due 2020 (1)(2) 1,000 3.350% notes due 2021 (1)(2) 1,000 LIBOR plus 0.650% floating rate notes due 2021 (1)(2) 750 1.950% notes due 2021 (1)(2) 750 2.300% notes due 2022 (1)(2) 500 3.100% notes due 2022 (1)(2) 2,300 2.800% notes due 2024 (1)(2) 800 March 2, 2020 4.875% notes due 2020 (1)(2) 171 February 28, 2020 3.650% notes due 2023 (1)(2) 1,669 2.650% notes due 2026 (1)(2) 431 $ 15,174 (1) In connection with the early repayment of outstanding principal, Raytheon Technologies recorded debt extinguishment costs of $703 million for the nine months ended September 30, 2020. No proceeds of the notes issued May 18, 2020 were used to fund the May 19, 2020 redemption. (2) Extinguishment of Raytheon Technologies short-term and long-term debt in order to not exceed the maximum net indebtedness required by the Raytheon Merger Agreement. On June 10, 2020, we completed an exchange offer with eligible holders of the outstanding notes of Goodrich Corporation maturing through 2046, Raytheon Company maturing through 2044 and Rockwell Collins Inc. maturing through 2047 (collectively, the “Subsidiary Notes”). An aggregate principal amount of approximately $8.2 billion of the Subsidiary Notes was exchanged for approximately $8.2 billion of Raytheon Technologies notes with identical interest rates, maturity dates, and redemption provisions, if any, as the Subsidiary Notes exchanged. Because the exchange was for substantially identical notes, the change was treated as a debt modification for accounting purposes with no gain or loss recognized. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data - Unaudited | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information [Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) 2019 Quarters 2018 Quarters (dollars in millions, First Second Third Fourth First Second Third Fourth Net Sales $ 10,953 $ 11,329 $ 11,373 $ 11,694 $ 7,836 $ 8,333 $ 8,412 $ 10,121 Gross margin 2,534 2,775 2,864 2,578 1,791 1,819 1,586 2,041 Income (loss) from continuing operations 712 1,183 958 657 598 541 318 (240) Income from discontinued operations 634 717 190 486 699 1,507 920 926 Net income attributable to common shareowners 1,346 1,900 1,148 1,143 1,297 2,048 1,238 686 Earnings per share of Common Stock - Basic: Income (loss) from continuing operations 0.84 1.38 1.12 $ 0.77 $ 0.76 $ 0.68 $ 0.40 $ (0.29) Income from discontinued operations 0.74 0.84 0.22 $ 0.56 $ 0.88 $ 1.91 $ 1.16 $ 1.12 Net income attributable to common shareholders $ 1.58 $ 2.22 $ 1.34 $ 1.33 $ 1.64 $ 2.59 $ 1.56 $ 0.83 Earnings per share of Common Stock - Diluted: Income (loss) from continuing operations $ 0.83 $ 1.37 $ 1.11 $ 0.76 $ 0.75 $ 0.68 $ 0.39 $ (0.29) Income from discontinued operations $ 0.73 $ 0.83 $ 0.22 $ 0.56 $ 0.87 $ 1.88 $ 1.15 $ 1.12 Net income attributable to common shareholders $ 1.56 $ 2.20 $ 1.33 $ 1.32 $ 1.62 $ 2.56 $ 1.54 $ 0.83 |
Performance Graph - Unaudited
Performance Graph - Unaudited | 12 Months Ended |
Dec. 31, 2019 | |
Performance Graph [Abstract] | |
Cumulative Total Shareholder Return [Text Block] | PERFORMANCE GRAPH (UNAUDITED) The following graph presents the cumulative total shareholder return for the five years ending December 31, 2019 for our common stock, as compared to the Standard & Poor’s 500 Stock Index and to the Dow Jones 30 Industrial Average. Our common stock price is a component of both indices. These figures assume that all dividends paid over the five-year period were reinvested, and that the starting value of each index and the investment in common stock was $100.00 on December 31, 2014. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 20: 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. We have elected certain of the practical expedients available under the New Lease Accounting Standard. 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 Consolidated Statement of Operations or Consolidated Statement of Cash Flows. Upon adoption, we recorded a $1.7 billion right-of-use asset and a $1.7 billion lease liability. The adoption of the New Lease Accounting Standard had an immaterial impact on retained earnings. Operating lease expense for the year ended December 31, 2019 was approximately $323 million. Supplemental cash flow information related to operating leases was as follows: (dollars in millions) Year ended December 31, 2019 Operating cash flows used in the measurement of operating lease liabilities $ 411 Operating lease right-of-use assets obtained in exchange for operating lease obligations 123 Operating lease right-of-use assets and liabilities are reflected on our Consolidated Balance Sheet as follows: (dollars in millions, except lease term and discount rate) December 31, 2019 Operating lease right-of-use assets $ 1,252 Accrued liabilities $ (245) Operating lease liabilities (1,093) Total operating lease liabilities $ (1,338) Supplemental balance sheet information related to operating leases was as follows: December 31, 2019 Weighted Average Remaining Lease Term (in years) 8.6 Weighted Average Discount Rate 3.5 % Undiscounted maturities of operating lease liabilities as of December 31, 2019 are as follows: (dollars in millions) 2020 $ 298 2021 265 2022 196 2023 147 2024 120 Thereafter 595 Total undiscounted lease payments 1,621 Less imputed interest (283) Total discounted lease payments $ 1,338 |
Summary of Accounting Princip_2
Summary of Accounting Principles (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation Policy [Text Block] | Consolidation. The Consolidated Financial Statements include the accounts of Raytheon Technologies Corporation and its controlled subsidiaries. Intercompany transactions have been eliminated. As a result of the Separation Transactions, we are now a focused aerospace and defense company with a defined operating cycle. Accordingly, to determine our classification of certain current assets and liabilities, the duration of our contracts or programs is utilized to determine our operating cycle, which is generally longer than one year. Included within our current assets and liabilities are contract assets and liabilities related to our aftermarket and development arrangements, which can generally span up to fifteen years. Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. |
Cash And Cash Equivalents Policy [Text Block] | Cash and Cash Equivalents. Cash and cash equivalents includes cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less. |
Cash And Cash Equivalents Restricted Cash And Cash Equivalents Policy | On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions or divestitures or other legal obligations. As of December 31, 2019 and 2018, the amount of such restricted cash was approximately $24 million and $38 million, respectively. |
Accounts Receivable Policy [Text Block] | Accounts Receivable. Accounts receivable are stated at their net estimated realized value. The allowance for doubtful accounts is based upon an assessment of customer creditworthiness, historical payment experience, and the age and status of outstanding receivables. Accounts receivable as of December 31, 2019 and December 31, 2018 includes unbilled receivables of $265 million and $439 million, respectively, which primarily includes unbilled receivables with commercial aerospace customers. See “Note 5: Commercial Aerospace Industry Assets and Commitments” for discussion of commercial aerospace industry assets and commitments. |
Contract with Customer, Assets and Liabilities [Policy Text Block] | Contract Assets and Liabilities. Contract assets and liabilities represent the difference in the timing of revenue recognition from receipt of cash from our customers. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Performance obligations partially satisfied in advance of customer billings are included in contract assets. |
Inventories and Contracts in Progress Policy Text Block | Inventory. Inventory is stated at the lower of cost or estimated realizable value and are primarily based on first-in, first-out (FIFO) or average cost methods. |
Equity Method Investments Policy [Policy Text Block] | Equity Method Investments. Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other assets on the Consolidated Balance Sheet. Under this method of accounting, our share of the net earnings or losses of the investee is included in Other income, net on the Consolidated Statement of Operations since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. RTC sells products to and purchases products from unconsolidated entities accounted for under the equity method, which are considered related parties. This activity is not considered material to the Consolidated Statement of Operations nor Consolidated Balance Sheet of RTC. |
Financing Receivable | Customer Financing Assets . Customer Financing Assets (CFA) primarily relate to the aerospace business in which we provide financing to airline customers. The most common types of financing include products under lease, notes receivable, long-term accounts receivable and lease receivable. We record revenue from lease assets by applying Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842, Leases, and from interest on the notes, accounts and lease receivables. Interest from notes and financing leases, rental income from operating lease assets and gains or losses on sales of operating lease assets is aggregated under the caption of “Other income, net” in the Consolidated Statement of Operations. The current portion of these financing arrangements are aggregated under the caption of “Other assets, current” and the non-current portions of these financing arrangements are aggregated under the caption of “Customer financing assets” in the Consolidated Balance Sheet. The increases and decreases in CFA from funding, receipts and certain other activity, are reflected as Investing Activities in the Consolidated Statement of Cash Flows. The product under lease assets are valued at cost and reviewed for impairment when circumstances indicate that the related carrying amounts may not be recoverable. Notes, accounts and lease receivable are valued at cost and reviewed for impairment when it is probable that we will be unable to collect amounts due. As of December 31, 2019 the reserves related to customer financing assets are not material. |
Business Combinations Policy | Business Combinations. We account for transactions that are classified as business combinations in accordance with FASB ASC Topic 805, “Business Combinations.” Once a business is acquired, the fair value of the identifiable assets acquired and liabilities assumed is determined with the excess cost recorded to goodwill. As required, a preliminary fair value is determined once a business is acquired, with the final determination of the fair value being completed within the one year measurement period from the date of acquisition. |
Goodwill And Intangible Assets Policy [Text Block] | Goodwill and Intangible Assets. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Goodwill and indefinite-lived intangible assets are subject to annual impairment testing or when a triggering event occurs using the guidance and criteria described in the Intangibles - Goodwill and Other Topic of the FASB ASC. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. Intangible assets consist of patents, trademarks/tradenames, customer relationships and other intangible assets including collaboration assets, as discussed further in “Note 2: Business Acquisitions, Dispositions, Goodwill and Intangible Assets.” Acquired intangible assets are recognized at fair value in purchase accounting and then amortized to cost of sales and selling, general & administrative expenses over the applicable useful lives. Also included within other intangible assets are commercial aerospace payments made to secure certain contractual rights to provide product on new aircraft platforms. We classify amortization of such payments as a reduction of sales. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. Consideration paid on these contractual commitments is capitalized when it is no longer conditional. Useful lives of finite-lived intangible assets are estimated based upon the nature of the intangible asset and the industry in which the intangible asset is used. These intangible assets are amortized based on the pattern in which the economic benefits of the intangible assets are consumed. For both our commercial aerospace collaboration assets and exclusivity arrangements, the pattern of economic benefit generally results in lower amortization during the development period with increasing amortization as programs enter full rate production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined or if straight-line amortization approximates the pattern of economic benefit, a straight-line amortization method may be used. The range of estimated useful lives is as follows: Collaboration assets 30 years Customer relationships and related programs 1 to 32 years Patents & trademarks 5 to 30 years Exclusivity assets 5 to 25 years |
Lessee, Leases | Leases. We account for leases in accordance with ASC Topic 842: Leases. Under Topic 842, the right-of-use model requires a lessee to record a right-of-use asset and a lease liability on the 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 Consolidated Statement of Operations. In addition, Topic 842 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 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 Consolidated Balance Sheet. Finance leases are not considered significant to our Consolidated Balance Sheet or Consolidated Statement of Operations. 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 leas e 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 gener ally have remaining lease terms of 1 to 20 years, some of which include options to extend leases. For the majority of our leases with options to extend, those options 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, the majority of which are classified as operating leases. These leases are not significant to our Consolidated Balance Sheet or Consolidated Statement of Operations. |
Other Long Lived Assets Policy [Text Block] | Other Long-Lived Assets. We evaluate the potential impairment of other long-lived assets whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. If the carrying value of other long-lived assets held and used exceeds the sum of the undiscounted expected future cash flows, the carrying value is written down to fair value. |
Income Tax Policy [Text Block] | Income Taxes. 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. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest expense has also been recognized. We recognize accrued interest related to unrecognized tax benefits in interest expense. Penalties, if incurred, would be recognized as a component of income tax expense. On December 22, 2017 the TCJA was enacted. The TCJA contains a new law that subjects the Company to a tax on Global Intangible Low-Taxed Income (GILTI), beginning in 2018. GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The FASB has provi ded that companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences, |
Revenue Recognition Policy | Revenue Recognition. We account for revenue in accordance with ASC Topic 606: Revenue from Contracts with Customers. We adopted ASC 606 effective January 1, 2018 and elected the modified retrospective approach. The results for periods before 2018 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 . Under Topic 606, 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. Point in time revenue recognition. Performance obligations are satisfied as of a point in time for certain aerospace components, engines, and spare parts. Revenue is recognized when control of the product transfers to the customer, generally upon product shipment. Over-time revenue recognition. Performance obligations are satisfied over-time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being produced, or if the product being produced for the customer has no alternative use and we have a contractual right to payment. We recognize revenue on an over-time basis on certain long-term aerospace aftermarket contracts and aftermarket service work; and development, fixed price, and other cost reimbursement contracts. Revenue is recognized using costs incurred to date relative to total estimated costs at completion to measure progress for performance obligations satisfied over time. Incurred costs represent work performed, which correspond with and best depict transfer of control to the customer. Contract costs include labor, materials, and subcontractors’ costs, or other direct costs, and where applicable on government and commercial contracts, indirect costs. For certain of our long-term aftermarket contracts, revenue is recognized over the contract period. We generally account for such contracts as a series of daily obligations to stand ready to provide spare parts and product maintenance and aftermarket services. These arrangements include the sale of spare parts with integral services to our customers, and are generally classified as Service sales, with the corresponding costs classified in Cost of services sold, within the Consolidated Statement of Operations. Revenue is primarily recognized in proportion to cost as sufficient historical evidence indicates that the cost of performing services under the contract is incurred on an other than straight-line basis. Aerospace contract modifications are routine and contracts are often modified to account for changes in contract specifications or requirements. Contract modifications that are for goods or services that are not distinct are accounted for as part of the existing contract. 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 original equipment (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 OEM products performance obligations are satisfied. Capitalized contract fulfillment costs were $1,519 million and $914 million as of December 31, 2019 and 2018, respectively and are recognized in “Other assets” in our Consolidated Balance Sheet and are included in Other operating activities, net in our Consolidated Statement of Cash Flows . The increase in capitalized net contract fulfillment costs is driven by current year activity at Collins Aerospace Systems. Co sts to obtain contracts are not material. Loss provisions on OEM contracts are recognized to the extent that estimated contract costs exceed the estimated consideration from the products contemplated under the contractual arrangement. For new commitments, we generally record loss provisions at the earlier of contract announcement or contract signing except for certain contracts under which losses are recorded upon receipt of the purchase order that obligates us to perform. For existing commitments, anticipated losses on contractual arrangements are recognized in the period in which losses become evident. Products contemplated under contractual arrangements include firm quantities of product sold under contract and, in the commercial engine and wheels and brakes businesses, future highly probable sales of replacement parts required by regulation that are expected to be sold subsequently for incorporation into the original equipment. In the commercial engine and wheels and brakes businesses, when the combined original equipment and aftermarket arrangement for each individual sales campaign are profitable, we record original equipment product losses, as applicable, at the time of delivery. We review our cost estimates on significant contracts on a quarterly basis and for others, no less frequently than annually or when circumstances change and warrant a modification to a previous estimate. We record changes in contract estimates using the cumulative catch-up method. Operating profits included net unfavorable changes in contract estimates of approximately $69 million, $50 million, and $110 million in 2019, 2018 and 2017, respectively, primarily the result of unexpected increases in estimated costs related to Pratt & Whitney long-term aftermarket contracts. Collaborations. Sales generated from engine programs, spare parts sales, and aftermarket business under collaboration arrangements are recorded consistent with our revenue recognition policies in our Consolidated Financial Statements. Amounts attributable to our collaborators for their share of sales are recorded as cost of sales in our Consolidated Financial Statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement from collaborators of their share of program costs is recorded as a reduction of the related expense item at that time. Cash Payments to Customers. We may offer customers incentives to purchase our products, which may result in payments made to those customers. In addition, we make participation payments to certain aerospace customers to secure certain contractual rights. To the extent these rights are incremental and are supported by the incremental cash flows obtained, they are capitalized as intangible assets. Otherwise, such payments are recorded as a reduction in sales. We classify the subsequent amortization of the capitalized acquired intangible assets from our customers as a reduction in sales. |
Remaining Performance Obligations | Remaining Performance Obligations (RPO). RPO represents the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied. As of December 31, 2019 our total RPO was approximately $111.7 billion compared to $93.8 billion as of December 31, 2018. Of the total RPO as of December 31, 2019, we expect approximately 37% will be recognized as sales over the following 24 months. |
Research and Development Policy [Text Block] | Research and Development. Research and development costs not specifically covered by contracts and those related to the company sponsored share of research and development activity in connection with cost-sharing arrangements are charged to expense as incurred. Government research and development support, not associated with specific contracts, is recorded as a reduction to research and development expense in the period earned. Research and development costs incurred under contracts with customers are included as a contract cost and reported as a component of cost of products sold when revenue from such contracts is recognized. Research and development costs in excess of contractual consideration are expensed as incurred. |
Foreign Currency Transactions And Translations Policy [Text Block] | Foreign Exchange. We conduct business in many different currencies and, accordingly, are subject to the inherent risks associated with foreign exchange rate movements. The financial position and results of operations of substantially all of our foreign subsidiaries are measured using the local currency as the functional currency. Foreign currency denominated assets and liabilities are translated into U.S. Dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries are deferred as a separate component of shareowners' equity. |
Derivatives and Hedging Activity Policy [Text Block] | Derivatives and Hedging Activity. We have used derivative instruments, including swaps, forward contracts and options, to help manage certain foreign currency, interest rate and commodity price exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. By their nature, all financial instruments involve market and credit risks. We enter into derivative and other financial instruments with major investment grade financial institutions and have policies to monitor the credit risk of those counterparties. We limit counterparty exposure and concentration of risk by diversifying counterparties. While there can be no assurance, we do not anticipate any material non-performance by any of these counterparties. We enter into transactions that are subject to enforceable master netting arrangements or similar agreements with various counterparties. However, we have not elected to offset multiple contracts with a single counterparty and, as a result, the fair value of the derivative instruments in a loss position is not offset against the fair value of derivative instruments in a gain position. Derivatives used for hedging purposes may be designated and effective as a hedge of the identified risk exposure at the inception of the contract. All derivative instruments are recorded on the balance sheet at fair value. Derivatives used to hedge foreign currency denominated balance sheet items are reported directly in earnings along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate. Gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income and reclassified to earnings as a component of product sales or expenses, as applicable, when the hedged transaction occurs. Gains and losses on derivatives designated as cash flow hedges are recorded in Other operating activities, net within the Consolidated Statement of Cash Flows. To the extent that a previously designated hedging transa ction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period it occurs. As discussed in Note 15, at December 31, 2019 we have approximately €4.20 billion of euro-denominated long-term debt, which qualifies as a net investment hedge against our investments in European businesses. |
Environmental Costs Policy | Environmental. Environmental investigatory, remediation, operating and maintenance costs are accrued when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including existing technology, current laws and regulations and prior remediation experience. Where no amount within a range of estimates is more likely, the minimum is accrued. For sites with multiple responsible parties, we consider our likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their obligations in establishing a provision for those costs. Liabilities with fixed or reliably determinable future cash payments are discounted. Accrued environmental liabilities are not reduced by potential insurance reimbursements. See Note 19 for additional details on the environmental remediation activities. |
Pension and Postretirement Obligations Policy | Pension and Postretirement Obligations. Guidance under the Compensation - Retirement Benefits Topic of the FASB ASC requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Under this guidance, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit cost. |
Product Performance Obligations [Policy Text Block] | Product Performance Obligations. We extend performance and operating cost guarantees beyond our normal service and warranty policies for extended periods on some of our products, particularly commercial aircraft engines. Liability under such guarantees is based upon future product performance and durability. We accrue for such costs that are probable and can be reasonably estimated. In addition, we incur discretionary costs to service our products in connection with product performance issues. The costs associated with these product performance and operating cost guarantees require estimates over the full terms of the agreements, and require management to consider factors such as the extent of future maintenance requirements and the future cost of material and labor to perform the services. These cost estimates are largely based upon historical experience. See Note 18 for further discussion. |
Collaborative Arrangements Policy | Collaborative Arrangements. In view of the risks and costs associated with developing new engines, Pratt & Whitney has entered into certain collaboration arrangements in which sales, costs and risks are shared. Sales generated from engine programs, spare parts, and aftermarket business under collaboration arrangements are recognized in our financial statements when earned. Amounts attributable to our collaborators for their share of sales are recorded as an expense in our financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement from the collaborators of their share of program costs is recorded as a reduction of the related expense item at that time. As of December 31, 2019, the collaborators’ interests in all commercial engine programs ranged from 13% to 49%, inclusive of a portion of Pratt & Whitney's interests held by other participants. Pratt & Whitney is the principal participant in all existing collaborative arrangements, with the exception of the Engine Alliance (EA), a joint venture with GE Aviation, which markets and manufactures the GP7000 engine for the Airbus A380 aircraft. There are no individually significant collaborative arrangements and none of the collaborators individually exceed a 31% share in an individual program. The following table illustrates the Consolidated Statement of Operations classification and amounts attributable to transactions arising from the collaborative arrangements between participants for each period presented. (dollars in millions) 2019 2018 2017 Collaborator share of sales: Cost of products sold $ 2,097 $ 1,688 $ 1,789 Cost of services sold 1,674 1,765 929 Collaborator share of program costs (reimbursement of expenses incurred): Cost of products sold (190) (209) (143) Research and development (219) (225) (190) Selling, general and administrative (101) (87) (74) |
New Accounting Pronouncements, Policy | Accounting Pronouncements. In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU and its related amendments modifies the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables, contract assets, long-term receivables and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, including historical information, current conditions and a reasonable forecast period, which may result in earlier recognition of certain losses. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. A modified retrospective approach is required with a cumulative-effect adjustment to retained earnings as of January 1, 2020. We are still quantifying the impact of this ASU and its related amendments on our Consolidated Financial Statements which is not expected to be material. 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 fiscal years ending 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, 2019, with early adoption permitted. We adopted the new standard prospectively effective January 1, 2020. We do not expect this ASU to have a material impact on the Consolidated Financial Statements. 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 adopted the new standard effective January 1, 2020. This ASU did not have an impact on the Consolidated Financial Statements. 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 adopted the new standard effective January 1, 2020. This ASU did not have an impact on the Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update remove certain exceptions of Topic 740 including: exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or gain from other items; exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. There are also additional areas of guidance in regards to: franchise and other taxes partially based on income and the interim recognition of enactment of tax laws and rate changes. 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 on our consolidated financial statements. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of consideration transferred | (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 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below represents the final determination of the fair value of identifiable assets acquired and liabilities assumed from the Rockwell Collins acquisition after utilizing the one year measurement period allowed by the FASB ASC Topic 805, “Business Combinations.” (dollars in millions) Cash and cash equivalents $ 640 Accounts receivable 1,659 Inventory 1,487 Contract assets, current 320 Other assets, current 251 Future income tax benefits 38 Fixed assets 1,542 Intangible assets: Customer relationships 8,720 Tradenames/trademarks 1,870 Developed technology 600 Other assets 217 Total identifiable assets acquired 17,344 Short-term borrowings 2,254 Accounts payable 520 Accrued liabilities 1,663 Contract liabilities, current 299 Long-term debt 5,530 Future pension and postretirement benefit obligation 502 Other long-term liabilities 3,614 Noncontrolling interest 6 Total liabilities acquired 14,388 Total identifiable net assets 2,956 Goodwill 20,537 Total consideration transferred $ 23,493 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | 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 Acquired customer relationships $ 8,720 10-23 years Acquired tradenames/trademarks 1,870 indefinite Acquired developed technology 600 15 years $ 11,190 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments | The pro-forma results were calculated by combining the results of RTC 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: Year Ended December 31, (dollars in millions, except per share amounts; shares in millions) 2018 2017 Net sales $ 42,336 $ 37,909 Net income attributable to common shareowners from continuing operations $ 2,011 $ 1,423 Basic earnings per share of common stock from continuing operations $ 2.26 $ 1.66 Diluted earnings per share of common stock from continuing operations $ 2.24 $ 1.65 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. As our acquisition of Rockwell Collins was completed on November 26, 2018, the pro-forma adjustments in the table below only include the required adjustments through November 26, 2018: Year Ended December 31, (dollars in millions) 2018 2017 Amortization of inventory and fixed asset fair value adjustment (1) 58 $ (192) Amortization of acquired Rockwell Collins intangible assets, net (2) (193) (202) Utilization of contractual customer obligation (3) 16 116 RTC/Rockwell fees for advisory, legal, accounting services (4) 212 (212) Interest expense incurred on acquisition financing, net (5) (199) (234) Elimination of capitalized pre-production engineering amortization (6) 63 42 Adjustment to net periodic pension cost (7) 42 34 Adjustment to reflect the adoption of ASC 606 (8) 106 — Elimination of entities held for sale (9) (47) (35) Inclusion of B/E Aerospace (10) — (51) $ 58 $ (734) (1) 2018 reflects the elimination of the inventory step-up amortization recorded by RTC in 2018 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) 2018 reflects the elimination of transaction-related fees incurred by RTC 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 RTC 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 RTC’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. (10) Reflects adjustments to include the results and related adjustments for B/E Aerospace as if it had been acquired by Rockwell Collins on January 1, 2017. |
Schedule of Goodwill | Changes in our goodwill balances for the year ended in 2019 were as follows: (dollars in millions) Balance as of Goodwill Foreign Balance as of Pratt & Whitney $ 1,567 $ — $ (4) $ 1,563 Collins Aerospace Systems 35,002 75 (52) 35,025 Total Segments 36,569 75 (56) 36,588 Eliminations and other 21 — — 21 Total $ 36,590 $ 75 $ (56) $ 36,609 |
Schedule of Indefinite-Lived Intangible Assets | Identifiable intangible assets are comprised of the following: 2019 2018 (dollars in millions) Gross Accumulated Gross Accumulated Amortized: Patents and trademarks $ 47 $ (34) $ 47 $ (32) Collaboration intangible assets 4,862 (920) 4,509 (649) Customer relationships and other 21,026 (3,884) 20,308 (2,913) 25,935 (4,838) 24,864 (3,594) Unamortized: Trademarks and other 3,376 — 3,372 — Total $ 29,311 $ (4,838) $ 28,236 $ (3,594) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following is the expected amortization of total intangible assets for 2020 through 2024, which reflects the pattern of expected economic benefit on certain aerospace intangible assets: (dollars in millions) 2020 2021 2022 2023 2024 Amortization expense $1,248 $1,249 $1,283 $1,290 $1,277 |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of income (loss) from discontinued operations | Carrier and Otis are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Income (loss) from discontinued operations is as follows: Year Ended December 31 (dollars, in millions) 2019 2018 2017 Otis $ 1,033 $ 1,213 $ 1,123 Carrier 1,698 2,840 2,116 Separation related transactions (1) (704) — — Income (loss) from discontinued operations $ 2,027 $ 4,053 $ 3,239 (1) Reflects unallocable transaction costs incurred by the Company primarily related to professional services costs pertaining to the Separation Transactions and the establishment of Otis and Carrier as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges related to separation activities. The following summarized financial information related to discontinued operations has been reclassified from Income from continuing operations and included in Income (loss) from discontinued operations: Year Ended December 31 (dollars, in millions) 2019 2018 2017 Otis Product sales $ 5,669 $ 5,636 $ 5,498 Service sales 7,444 7,268 6,843 Cost of products sold 4,656 4,624 4,392 Cost of services sold 4,635 4,568 4,220 Research and development 163 185 187 Selling, general and administrative expense 1,906 1,636 1,583 Other (expense) income, net (40) 26 37 Non-operating expense, net 4 (18) (4) Income from discontinued operations, before income taxes 1,709 1,935 2,000 Income tax expense 525 561 704 Income from discontinued operations 1,184 1,374 1,296 Less: Noncontrolling interest in subsidiaries earnings from discontinued operations 151 161 173 Income from discontinued operations attributable to common shareowners $ 1,033 $ 1,213 $ 1,123 Carrier Product sales $ 15,337 $ 15,657 $ 14,744 Service sales 3,247 3,239 3,039 Cost of products sold 10,878 11,047 10,447 Cost of services sold 2,298 2,281 2,154 Research and development 400 399 364 Selling, general and administrative expense 2,888 2,566 2,459 Other income (expense), net 246 1,156 794 Non-operating (income) expense, net (43) (82) (88) Income from discontinued operations, before income taxes 2,409 3,841 3,241 Income tax expense 672 967 1,085 Income from discontinued operations 1,737 2,874 2,156 Less: Noncontrolling interest in subsidiaries earnings from discontinued operations 39 34 40 Income from discontinued operations attributable to common shareowners $ 1,698 $ 2,840 $ 2,116 Separation related transactions (1) Selling, general and administrative expense 16 $ — $ — Other (expense) income, net $ (11) Loss from discontinued operations, before income taxes (27) — — Income tax (benefit) expense 677 — — Income (loss) from discontinued operations, net of tax (704) — — Total Income (loss) from discontinued operations attributable to common shareowners $ 2,027 $ 4,053 $ 3,239 (1) Reflects unallocable transaction costs incurred by the Company primarily related to professional services costs pertaining to the Separation Transactions and the establishment of Otis and Carrier as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges related to separation activities. |
Schedule of cash flows from discontinued operations | Selected financial information related to cash flows from discontinued operations is as follows: Year Ended December 31 (dollars, in millions) 2019 2018 2017 Net cash provided by operating activities $ 3,062 $ 3,652 $ 3,349 Net cash (used in) provided by investing activities (416) 286 108 Net cash used in financing activities (2,651) (4,244) (3,431) |
Major components of assets and liabilities related to discontinued operations | The major components of assets and liabilities related to discontinued operations at December 31, 2019 are provided below: (dollars, in millions) Otis Carrier Total Assets Cash and cash equivalents $ 1,446 $ 995 $ 2,441 Accounts receivable, net 2,899 2,728 5,627 Contract assets, current 530 679 1,209 Inventories and contracts in progress, net 571 1,332 1,903 Other assets, current 213 221 434 Future income tax benefits 355 370 725 Fixed assets, net 747 1,686 2,433 Operating lease right-of-use assets 529 818 1,347 Goodwill 1,647 9,807 11,454 Intangible assets, net 490 1,083 1,573 Other assets 220 2,457 2,677 Total assets related to discontinued operations $ 9,647 $ 22,176 $ 31,823 Liabilities and Redeemable Noncontrolling Interest Short-term borrowings $ 33 $ 38 $ 71 Accounts payable 1,321 1,682 3,003 Accrued liabilities 1,651 2,889 4,540 Contract liabilities, current 2,288 611 2,899 Long-term debt, currently due 1 237 238 Long-term debt 5 82 87 Future pension and postretirement benefit obligations 560 455 1,015 Operating lease liabilities 383 668 1,051 Other long-term liabilities (1) 514 1,025 1,539 Total liabilities related to discontinued operations $ 6,756 $ 7,687 $ 14,443 (1) Amounts include a deferred tax jurisdictional netting adjustment of $145 million. The major components of assets and liabilities related to discontinued operations at December 31, 2018 are provided below: (dollars, in millions) Otis Carrier Total Assets Cash and cash equivalents $ 1,329 $ 1,130 $ 2,459 Accounts receivable, net 2,764 2,883 5,647 Contract assets, current 661 450 1,111 Inventories and contracts in progress, net 640 1,363 2,003 Other assets, current 264 295 559 Future income tax benefits 304 343 647 Fixed assets, net 709 1,681 2,390 Goodwill 1,688 9,835 11,523 Intangible assets, net 569 1,214 1,783 Other assets 169 2,449 2,618 Total assets related to discontinued operations $ 9,097 $ 21,643 $ 30,740 Liabilities and Redeemable Noncontrolling Interest Short-term borrowings $ 27 $ 14 $ 41 Accounts payable 1,334 1,910 3,244 Accrued liabilities 1,462 2,076 3,538 Contract liabilities, current 2,359 612 2,971 Long-term debt, currently due 1 153 154 Long-term debt 4 146 150 Future pension and postretirement benefit obligations 542 426 968 Other long-term liabilities 469 1,093 1,562 Total liabilities related to discontinued operations $ 6,198 $ 6,430 $ 12,628 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | (dollars in millions, except per share amounts; shares in millions) 2019 2018 2017 Net income attributable to common shareowners: Income from continuing operations attributable to common shareowners $ 3,510 $ 1,216 $ 1,313 Income from discontinued operations attributable to common shareowners 2,027 4,053 3,239 Net income attributable to common shareowners $ 5,537 $ 5,269 $ 4,552 Basic weighted average number of shares outstanding 854.8 800.4 790.0 Stock awards and equity units (share equivalent) 9.1 9.7 9.1 Diluted weighted average number of shares outstanding 863.9 810.1 799.1 Earnings per share attributable to common shareowners - basic Income from continuing operations attributable to common shareowners $ 4.11 $ 1.52 $ 1.66 Income from discontinued operations 2.37 5.06 4.10 Net income attributable to common shareowners $ 6.48 $ 6.58 $ 5.76 Earnings per share attributable to common shareowners - diluted Income from continuing operations attributable to common shareowners $ 4.06 $ 1.50 $ 1.64 Income from discontinued operations 2.35 5.00 4.06 Net income attributable to common shareowners $ 6.41 $ 6.50 $ 5.70 |
Commercial Aerospace Industry_2
Commercial Aerospace Industry Assets and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Commitments [Abstract] | |
Commercial Aerospace Industry Assets and Commitments [Table Text Block] | The following is the expected maturity of commercial aerospace industry assets and commitments as of December 31, 2019: (dollars in millions) Committed 2020 2021 2022 2023 2024 Thereafter Notes and leases receivable $ 308 $ 30 $ 23 $ 14 $ 22 $ 38 $ 181 Commercial aerospace financing commitments $ 3,937 $ 911 $ 1,119 $ 974 $ 819 $ 44 $ 70 Other commercial aerospace commitments 11,055 702 736 717 668 627 7,605 Collaboration partners’ share (5,284) (508) (623) (571) (538) (193) (2,851) Total commercial commitments $ 9,708 $ 1,105 $ 1,232 $ 1,120 $ 949 $ 478 $ 4,824 |
Inventory, Net (Tables)
Inventory, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Table [Table Text Block] | (dollars in millions) 2019 2018 Raw materials $ 2,984 $ 2,624 Work-in-process 2,586 2,538 Finished goods 3,477 2,919 $ 9,047 $ 8,081 |
Contract Asset & Liability (Tab
Contract Asset & Liability (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Contract with Customer, Asset and Liability [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Total contract assets and contract liabilities as of December 31, 2019 and 2018 are as follows: (dollars in millions) December 31, 2019 December 31, 2018 Total contract assets $ 4,462 $ 3,666 Total contract liabilities (9,014) (7,818) Net contract liabilities $ (4,552) $ (4,152) |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets [Text Block] | (dollars in millions) Estimated 2019 2018 Land $ 292 $ 266 Buildings and improvements 12-40 years 4,978 4,768 Machinery, tools and equipment 3-20 years 12,936 11,951 Other, including assets under construction 1,871 1,735 20,077 18,720 Accumulated depreciation (9,755) (8,814) $ 10,322 $ 9,906 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities Table [Text Block] | (dollars in millions) 2019 2018 Accrued salaries, wages and employee benefits $ 1,353 $ 1,063 Customer contractual obligations 1,408 1,705 Service and warranty accruals 1,033 929 Interest payable 472 468 Litigation and contract matters 405 324 Income taxes payable 106 313 Accrued property, sales and use taxes 140 94 Canadian government settlement - current portion — 34 Accrued restructuring costs 123 159 Accrued workers compensation 91 80 Liabilities held for sale — 40 Operating lease liabilities, current 245 — Other 4,394 4,186 $ 9,770 $ 9,395 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Table Text Block] | (dollars in millions) 2019 2018 Short-term borrowings: Commercial paper $ — $ 1,257 Other borrowings 2,293 171 Total short-term borrowings $ 2,293 $ 1,428 |
Schedule of Weighted average interest rates [Table Text Block] | The weighted-average interest expense rates applicable to short-term borrowings and total debt were as follows: 2019 2018 Average interest expense rate - average outstanding borrowings during the year: Short-term borrowings 1.7 % 1.3 % Total debt 3.6 % 3.5 % Average interest expense rate - outstanding borrowings as of December 31: Short-term borrowings 2.3 % 1.9 % Total debt 3.6 % 3.5 % |
Schedule of Debt Issuances and Repayments [Table Text Block] | We had no debt issuances during 2019 and the following issuances of debt in 2018: (dollars 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 made the following repayments of debt in 2019 and 2018: (dollars in millions) Repayment Date Description of Notes Aggregate Principal Balance November 15, 2019 8.875% notes $ 271 November 13, 2019 EURIBOR plus 0.15% floating rate notes € 750 November 1, 2019: LIBOR plus 0.350% floating rate notes $ 350 1.500% notes $ 650 July 15, 2019: 1.950% notes (1) $ 300 5.250% notes (1) $ 300 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 |
Schedule of Principal Payments on Long-term Debt [Table Text Block] | (dollars in millions) 2020 $ 3,258 2021 4,091 2022 3,904 2023 3,490 2024 2,592 Thereafter 23,939 Total $ 41,274 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | A summary of the changes in each component of Accumulated other comprehensive (loss) income, net of tax for the years ended December 31, 2019 and 2018 is provided below: (dollars in millions) Foreign Defined Benefit Unrealized Gains Unrealized Accumulated Balance at December 31, 2017 $ (2,950) $ (4,652) $ 5 $ 72 $ (7,525) Other comprehensive income before reclassifications, net (486) (1,736) — (307) (2,529) Amounts reclassified, pre-tax (2) 344 — (16) 326 Tax (expense) benefit (4) 326 — 78 400 ASU 2016-01 adoption impact $ — $ — $ (5) $ — $ (5) Balance at December 31, 2018 $ (3,442) $ (5,718) $ — $ (173) $ (9,333) Other comprehensive loss before reclassifications, net 280 (584) — (33) (337) Amounts reclassified, pre-tax 2 170 — 51 223 Tax (expense) benefit (43) 97 — (11) 43 ASU 2018-02 adoption impact (8) (737) — — (745) Balance at December 31, 2019 $ (3,211) $ (6,772) $ — $ (166) $ (10,149) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Share-based Payment Arrangement, Cost by Plan [Table Text Block] | We measure the cost of all share-based payments, including stock options, at fair value on the grant date and recognize this cost in the Consolidated Statement of Operations, net of expected forfeitures, as follows: (dollars in millions) 2019 2018 2017 Total compensation cost recognized $ 268 $ 169 $ 129 |
Schedule of Stock Options Roll Forward [Table Text Block] | A summary of the transactions under all long-term incentive plans for the year ended December 31, 2019 follows. The amounts in the tables and paragraphs below have not been recast for discontinued operations. Stock Options Stock Appreciation Rights Performance Share Units Other (shares and units in thousands) Shares Average Price (1) Shares Average Price (1) Units Average Price (1) Outstanding at: December 31, 2018 1,603 $ 99.89 32,066 $ 99.95 1,806 $ 110.41 3,047 Granted 339 124.72 8,081 123.54 839 121.22 1,223 Ancillary (2) — — — — 101 95.28 — Exercised / earned (317) 88.61 (6,843) 84.44 (758) 95.28 (816) Cancelled (57) 121.69 (591) 122.76 (69) 118.21 (135) December 31, 2019 1,568 $ 106.75 32,713 $ 108.61 1,919 $ 120.04 3,319 (1) Weighted-average grant / exercise price. (2) Ancillary shares earned based on actual performance achieved on the 2016 award. |
Disclosure Of Share Based Compensation Arrangements By Share Based Payment Award Text Block | The following table summarizes information about equity awards outstanding that are vested and expected to vest as well as equity awards outstanding that are exercisable at December 31, 2019: Equity Awards Vested and Expected to Vest Equity Awards That Are Exercisable (shares in thousands; aggregate intrinsic value in millions) Awards Average Price (1) Aggregate Remaining Term (2) Awards Average Price (1) Aggregate Remaining Term (2) Stock Options/Stock Appreciation Rights 33,769 $ 107.58 $ 1,424 5.9 years 19,285 $ 96.56 $ 1,026 4.0 years Performance Share Units/Restricted Stock 5,514 — 826 2.1 years (1) Weighted-average exercise price per share. (2) Weighted-average contractual remaining term in years. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table indicates the assumptions used in estimating fair value for the years ended December 31, 2019, 2018 and 2017. Lattice-based option models incorporate ranges of assumptions for inputs; those ranges are as follows: 2019 2018 2017 Expected volatility 18.8% - 19.7% 17.5% - 21.1% 19 % Weighted-average volatility 20 % 18 % 19 % Expected term (in years) 6.5 - 6.6 6.5 - 6.6 6.5 Expected dividend yield 2.4 % 2.2 % 2.4 % Risk-free rate 2.3% - 2.7% 1.3% - 2.7% 0.5% - 2.5% |
Pension Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Text Block] | (dollars in millions) 2019 2018 Change in Benefit Obligation: Beginning balance $ 34,344 $ 33,283 Service cost attributable to continuing operations 261 265 Service cost attributable to discontinued operations 34 40 Interest cost 1,245 1,058 Actuarial loss (gain) 4,247 (1,938) Total benefits paid (2,016) (1,783) Net settlement, curtailment and special termination benefits (206) (14) Plan amendments — 56 Business combinations (6) 3,694 Other 124 (317) Ending balance $ 38,027 $ 34,344 Change in Plan Assets: Beginning balance $ 32,150 $ 32,205 Actual return on plan assets 5,873 (1,516) Employer contributions 137 156 Benefits paid (2,016) (1,783) Settlements (17) (16) Business combinations (10) 3,355 Other 108 (251) Ending balance $ 36,225 $ 32,150 Funded Status: Fair value of plan assets $ 36,225 $ 32,150 Benefit obligations (38,027) (34,344) Funded status of plan $ (1,802) $ (2,194) Amounts Recognized in the Consolidated Balance Sheet Consist of: Noncurrent assets $ 19 $ 157 Current liability (51) (56) Noncurrent liability (1,770) (2,295) Net amount recognized $ (1,802) $ (2,194) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial loss $ 8,160 $ 7,948 Prior service cost 190 130 Net actuarial loss and prior service cost related to discontinued operations 763 667 Net amount recognized $ 9,113 $ 8,745 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | Information for pension plans with accumulated benefit obligations in excess of plan assets: (dollars in millions) 2019 2018 Projected benefit obligation $ 37,941 $ 24,796 Accumulated benefit obligation 37,599 24,471 Fair value of plan assets 36,120 22,558 |
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets [Table Text Block] | Information for pension plans with projected benefit obligations in excess of plan assets: (dollars in millions) 2019 2018 Projected benefit obligation $ 37,943 $ 27,225 Accumulated benefit obligation 37,600 26,752 Fair value of plan assets 36,122 24,873 |
Schedule of Net Benefit Costs [Table Text Block] | The components of the net periodic pension benefit are as follows: (dollars in millions) 2019 2018 2017 Pension Benefits: Service cost $ 261 $ 265 $ 268 Interest cost 1,245 1,058 1,043 Expected return on plan assets (2,252) (2,061) (2,033) Amortization of prior service cost (credit) 16 (42) (37) Recognized actuarial net loss 245 373 550 Net settlement, curtailment and special termination benefits (gain) loss (59) 3 3 Net periodic pension benefit - employer $ (544) $ (404) $ (206) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2019 are as follows: (dollars in millions) Continuing Operations Discontinued Operations Total Current year actuarial loss $ 434 $ 119 $ 553 Amortization of actuarial loss (245) (20) (265) Current year prior service cost — 6 6 Amortization of prior service cost (16) (1) (17) Net settlement and curtailment 62 (5) 57 Other 36 (2) 34 Total recognized in other comprehensive loss $ 271 97 $ 368 Net recognized in net periodic pension benefit and other comprehensive loss $ (232) 97 $ (135) |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension (benefit) cost in 2020 is as follows: (dollars in millions) Net actuarial loss $ 336 Prior service cost 49 $ 385 |
Defined Benefit Plan, Assumptions [Table Text Block] | Major assumptions used in determining the benefit obligation and net cost for pension plans are presented in the following table as weighted-averages: Benefit Obligation Net Cost 2019 2018 2019 2018 2017 Discount rate PBO 3.1 % 4.0 % 4.0 % 3.5 % 3.9 % Interest cost (1) — — 3.7 % 3.1 % 3.3 % Service cost (1) — — 3.7 % 3.4 % 3.8 % Salary scale 4.3 % 4.3 % 4.3 % 4.3 % 4.3 % Expected return on plan assets — — 6.8 % 6.9 % 7.4 % |
Schedule of Allocation of Plan Assets [Table Text Block] | The fair values of pension plan assets at December 31, 2019 and 2018 by asset category are as follows: (dollars in millions) Quoted Prices in Significant Significant Not Subject to Leveling Total Asset Category: Public Equities Global Equities $ 3,588 $ 5 $ — $ — $ 3,593 Global Equity Commingled Funds (1) — 1,496 — — 1,496 Enhanced Global Equities (2) 322 393 — — 715 Global Equity Funds at net asset value (8) — — — 5,332 5,332 Private Equities (3),(8) — — 202 1,230 1,432 Fixed Income Securities Governments 969 116 — — 1,085 Corporate Bonds 1 13,059 5 — 13,065 Structured Products — 17 — — 17 Fixed Income Securities (8) — — — 4,755 4,755 Real Estate (4),(8) — 13 1,464 366 1,843 Other (5),(8) — 343 — 2,834 3,177 Cash & Cash Equivalents (6),(8) — 47 — 36 83 Subtotal $ 4,880 $ 15,489 $ 1,671 $ 14,553 36,593 Other Assets & Liabilities (7) (368) Total at December 31, 2019 $ 36,225 Public Equities Global Equities $ 2,917 $ 4 $ — $ — $ 2,921 Global Equity Commingled Funds (1) 185 219 — — 404 Enhanced Global Equities (2) 79 605 — — 684 Global Equity Funds at net asset value (8) — — — 6,539 6,539 Private Equities (3),(8) — — 133 1,194 1,327 Fixed Income Securities Governments 1,789 162 — — 1,951 Corporate Bonds — 11,526 18 29 11,573 Fixed Income Securities (8) — — — 2,225 2,225 Real Estate (4),(8) — 13 1,387 409 1,809 Other (5),(8) — 262 — 2,368 2,630 Cash & Cash Equivalents (6),(8) — 220 — 100 320 Subtotal $ 4,970 $ 13,011 $ 1,538 $ 12,864 32,383 Other Assets & Liabilities (7) (233) Total at December 31, 2018 $ 32,150 (1) Represents commingled funds that invest primarily in common stocks. (2) Represents enhanced equity separate account and commingled fund portfolios. A portion of the portfolio may include long-short market neutral and relative value strategies that invest in publicly traded, equity and fixed income securities, as well as derivatives of equity and fixed income securities and foreign currency. (3) Represents limited partner investments with general partners that primarily invest in debt and equity. (4) Represents investments in real estate including commingled funds and directly held properties. (5) Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities. (6) Represents short-term commercial paper, bonds and other cash or cash-like instruments. (7) Represents trust receivables and payables that are not leveled. (8) In accordance with ASU 2015-07, Fair Value Measurement (Topic 820) , certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed due to the following: (dollars in millions) Private Corporate Real Total Balance, December 31, 2017 $ 46 $ — $ 1,446 $ 1,492 Plan assets acquired — 33 — 33 Realized (losses) gains — (1) 10 9 Unrealized gains relating to instruments still held in the reporting period — 2 38 40 Purchases, sales, and settlements, net 87 (16) (107) (36) Balance, December 31, 2018 133 18 1,387 1,538 Realized losses — — (2) (2) Unrealized gains relating to instruments still held in the reporting period 32 — 27 59 Purchases, sales, and settlements, net 37 (13) 52 76 Balance, December 31, 2019 $ 202 $ 5 $ 1,464 $ 1,671 |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Text Block] | (dollars in millions) 2019 2018 Change in Benefit Obligation: Beginning balance $ 810 $ 767 Service cost 2 2 Interest cost 31 26 Actuarial gain (11) (52) Total benefits paid (69) (70) Business combinations — 186 Plan amendments — (43) Other 2 (6) Ending balance $ 765 $ 810 Change in Plan Assets: Beginning balance $ 20 $ — Employer contributions 69 69 Benefits paid (69) (70) Business combinations — 20 Other — 1 Ending balance $ 20 $ 20 Funded Status: Fair value of plan assets $ 20 $ 20 Benefit obligations (765) (810) Funded status of plan $ (745) $ (790) Amounts Recognized in the Consolidated Balance Sheet Consist of: Current liability $ (47) $ (61) Noncurrent liability (698) (729) Net amount recognized $ (745) $ (790) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial gain $ (181) $ (184) Prior service credit (4) (47) Net amount recognized $ (185) $ (231) |
Schedule of Net Benefit Costs [Table Text Block] | The components of net periodic benefit cost are as follows: (dollars in millions) 2019 2018 2017 Other Postretirement Benefits: Service cost $ 2 $ 2 $ 2 Interest cost 31 26 29 Expected return on plan assets (1) — — Amortization of prior service credit (42) (6) (1) Recognized actuarial net gain (12) (10) (9) Net periodic other postretirement (benefit) cost $ (22) $ 12 $ 21 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2019 are as follows: (dollars in millions) Current year actuarial gain $ (10) Amortization of prior service credit 42 Amortization of actuarial net gain 12 Other 2 Total recognized in other comprehensive loss $ 46 Net recognized in net periodic other postretirement benefit cost and other comprehensive loss $ 24 |
Defined Benefit Plan, Assumptions [Table Text Block] | Major assumptions used in determining the benefit obligation and net cost for postretirement plans are presented in the following table as weighted-averages: Benefit Obligation Net Cost 2019 2018 2019 2018 2017 Discount rate 3.0 % 4.1 % 4.0 % 3.4 % 3.8 % Expected return on assets — — 7.0 % 7.0 % N/A |
Schedule of Health Care Cost Trend Rates [Table Text Block] | Assumed health care cost trend rates are as follows: 2019 2018 Health care cost trend rate assumed for next year 6.5 % 7.0 % Rate that the cost trend rate gradually declines to 5.0 % 5.0 % Year that the rate reaches the rate it is assumed to remain at 2026 2026 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | A one-percentage-point change in assumed health care cost trend rates would have the following effects: 2019 One-Percentage-Point (dollars in millions) Increase Decrease Effect on total service and interest cost $ 1 $ (1) Effect on postretirement benefit obligation 25 (22) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Consolidated Financial Statements [Abstract] | |
Schedule of Income before Income Tax Domestic and Foreign [Table Text Block] | The sources of income from continuing operations before income taxes are: (dollars in millions) 2019 2018 2017 United States $ 1,594 $ 635 $ 607 Foreign 2,558 1,869 1,915 $ 4,152 $ 2,504 $ 2,522 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax expense (benefit) for the years ended December 31, 2019, 2018 and 2017 consisted of the following components: (dollars in millions) 2019 2018 2017 Current: United States: Federal $ (100) $ (68) $ 709 State (58) 1 (42) Foreign 541 402 284 383 335 951 Future: United States: Federal 121 45 (48) State 56 58 85 Foreign (139) 660 66 38 763 103 Income tax expense $ 421 $ 1,098 $ 1,054 Attributable to items credited (charged) to equity $ 40 $ 501 $ (128) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows: 2019 2018 2017 Statutory U.S. federal income tax rate 21.0 % 21.0 % 35.0 % Tax on international activities (3.1) % (5.1) % (15.3) % Tax audit settlements (7.0) % — % (2.2) % U.S. tax reform — % 29.7 % 27.4 % Other (0.8) % (1.8) % (3.1) % Effective income tax rate 10.1 % 43.8 % 41.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2019 and 2018 are as follows: (dollars in millions) 2019 2018 Future income tax benefits: Insurance and employee benefits $ 1,205 $ 1,154 Other asset basis differences 829 1,013 Other liability basis differences 2,153 1,482 Tax loss carryforwards 622 583 Tax credit carryforwards 1,021 1,050 Valuation allowances (616) (605) $ 5,214 $ 4,677 Future income taxes payable: Intangible assets $ 4,293 $ 4,462 Other asset basis differences 2,904 2,159 Other items, net 143 123 $ 7,340 $ 6,744 |
Summary Of Tax Credit Carryforwards [Table Text Block] | At December 31, 2019, tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows: (dollars in millions) Tax Credit Tax Loss Expiration period: 2020-2024 $ 59 $ 393 2025-2029 27 179 2030-2039 336 394 Indefinite 599 2,218 Total $ 1,021 $ 3,184 |
Summary Of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 is as follows: (dollars in millions) 2019 2018 2017 Balance at January 1 $ 1,619 $ 1,189 $ 1,086 Additions for tax positions related to the current year 131 192 192 Additions for tax positions of prior years 73 344 73 Reductions for tax positions of prior years (101) (91) (91) Settlements (375) (15) (71) Balance at December 31 $ 1,347 $ 1,619 $ 1,189 Gross interest expense related to unrecognized tax benefits $ 57 $ 37 $ 34 Total accrued interest balance at December 31 $ 249 $ 255 $ 215 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) Pratt & Whitney 133 Collins Aerospace Systems 106 Eliminations and other 6 Total $ 245 Restructuring charges incurred in 2019 primarily relate to actions initiated during 2019 and 2018, and were recorded as follows: (dollars in millions) Cost of sales $ 177 Selling, general & administrative 64 Non-service pension (benefit) 4 Total $ 245 |
Current Year Actions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the accrual balances and utilization by cost type for the 2019 restructuring actions: (dollars in millions) Severance Facility Exit & Other Costs Total Net pre-tax restructuring costs $ 151 $ 11 $ 162 Utilization, foreign exchange and other costs (104) — (104) Balance at December 31, 2019 $ 47 $ 11 $ 58 |
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 Cost Incurred During 2019 Remaining Costs at December 31, 2019 Pratt & Whitney 133 (133) — Collins Aerospace Systems 120 (27) 93 Eliminations and other 2 (2) — Total $ 255 $ (162) $ 93 |
Prior Year Actions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the accrual balances and utilization by cost type for the 2018 restructuring actions: (dollars in millions) Severance Facility Exit Total Restructuring accruals at January 1, 2019 $ 60 $ 22 $ 82 Net pre-tax restructuring costs 22 1 23 Utilization, foreign exchange and other costs (76) (22) (98) Balance at December 31, 2019 $ 6 $ 1 $ 7 |
Schedule of Restructuring and Related Costs [Table Text Block] | The following table summarizes expected, incurred and remaining costs for the 2018 programs by segment: (dollars in millions) Expected Costs Costs Remaining Pratt & Whitney 3 (3) — — Collins Aerospace Systems 111 (87) (23) 1 Eliminations and other 7 (5) — 2 Total $ 121 $ (95) $ (23) $ 3 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 Consolidated Balance Sheets for derivative instruments as of December 31, 2019 and 2018: (dollars in millions) Balance Sheet Location December 31, 2019 December 31, 2018 Derivatives designated as hedging instruments: Foreign exchange contracts Asset Derivatives: Other assets, current $ 23 $ 22 Liability Derivatives: Accrued liabilities 166 194 Derivatives not designated as hedging instruments: Foreign exchange contracts Asset Derivatives: Other assets, current 23 27 Liability Derivatives: Accrued liabilities 116 89 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | Year Ended December 31, (dollars in millions) 2019 2018 Loss recorded in Accumulated other comprehensive loss $ (33) $ (307) Loss (Gain) reclassified from Accumulated other comprehensive loss into Product sales $ 51 $ (16) |
Other Income (Expense) [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | Year Ended December 31, (dollars in millions) 2019 2018 Foreign exchange contracts $ 91 $ 127 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and nonrecurring basis in our Consolidated Balance Sheet as of December 31, 2019 and 2018: December 31, 2019 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 53 $ 53 $ — $ — Derivative assets 46 — 46 — Derivative liabilities (282) — (282) — December 31, 2018 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 48 $ 48 $ — $ — Derivative assets 49 — 49 — Derivative liabilities (283) — (283) — |
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 Consolidated Balance Sheet at December 31, 2019 and 2018: December 31, 2019 December 31, 2018 (dollars in millions) Carrying Fair Carrying Fair Customer financing notes receivable 220 220 226 219 Short-term borrowings (2,293) (2,293) (1,428) (1,428) Long-term debt (excluding finance leases) (40,883) (45,887) (43,703) (43,710) Long-term liabilities (334) (320) (505) (464) The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Consolidated Balance Sheet as of December 31, 2019 and 2018: December 31, 2019 (dollars in millions) Total Level 1 Level 2 Level 3 Customer financing notes receivable 220 — 220 — Short-term borrowings (2,293) — — (2,293) Long-term debt (excluding finance leases) (45,887) — (45,802) (85) Long-term liabilities (320) — (320) — December 31, 2018 (dollars in millions) Total Level 1 Level 2 Level 3 Customer financing notes receivable 219 — 219 — Short-term borrowings (1,428) — (1,258) (170) Long-term debt (excluding finance leases) (43,710) — (43,620) (90) Long-term liabilities (464) — (464) — |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 Consolidated Balance Sheet as of December 31, 2019 and 2018 are as follows: (dollars in millions) 2019 2018 Current assets $ 5,448 $ 5,622 Noncurrent assets 894 710 Total assets $ 6,342 $ 6,332 Current liabilities $ 6,971 $ 6,742 Noncurrent liabilities 94 102 Total liabilities $ 7,065 $ 6,844 |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations [Table Text Block] | As of December 31, 2019 and 2018, the following financial guarantees were outstanding: December 31, 2019 December 31, 2018 (dollars in millions) Maximum Carrying Maximum Carrying Commercial aerospace financing arrangements (see Note 5) $ 333 $ 7 $ 348 $ 9 Credit facilities and debt obligations — — 15 — Performance guarantees 48 — 55 5 |
Product Warranty Disclosure [Table Text Block] | The changes in the carrying amount of service and product warranties and product performance guarantees for the years ended December 31, 2019 and 2018 are as follows: (dollars in millions) 2019 2018 Balance as of January 1 $ 929 $ 591 Warranties and performance guarantees issued 444 421 Settlements made (330) (284) Other (1) (10) 201 Balance as of December 31 $ 1,033 $ 929 (1) Other in 2018 is driven by the Rockwell Collins acquisition. |
Segment Financial Data (Tables)
Segment Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment [Table Text Block] | Net Sales Operating Profits (dollars in millions) 2019 2018 2017 2019 2018 2017 Pratt & Whitney 20,892 19,397 16,160 1,668 1,269 1,300 Collins Aerospace Systems 26,028 16,634 14,691 4,100 2,303 2,191 Total segment 46,920 36,031 30,851 5,768 3,572 3,491 Eliminations and other (1,571) (1,330) (1,138) (339) (220) (63) General corporate expenses — — — (515) (475) (439) Consolidated $ 45,349 $ 34,701 $ 29,713 $ 4,914 $ 2,877 $ 2,989 Total Assets Capital Expenditures Depreciation & Amortization (dollars in millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Pratt & Whitney 31,271 29,341 26,768 822 866 923 980 852 672 Collins Aerospace Systems 74,049 73,115 34,567 959 515 527 1,749 883 823 Total segment 105,320 102,456 61,335 1,781 1,381 1,450 2,729 1,735 1,495 Eliminations and other 2,472 1,015 4,659 87 86 106 (21) 161 85 Assets related to discontinued operations $ 31,823 $ 30,740 $ 30,926 Consolidated $ 139,615 $ 134,211 $ 96,920 $ 1,868 $ 1,467 $ 1,556 $ 2,708 $ 1,896 $ 1,580 |
Schedule of Revenues From External Customers And Long Lived Assets By Geographic Areas [Table Text Block] | External Net Sales Operating Profits Long-Lived Assets (dollars in millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 United States Operations $ 35,125 $ 26,646 $ 21,975 $ 3,287 $ 1,790 $ 1,603 $ 6,507 $ 6,165 $ 4,424 International Operations Europe 4,419 3,092 2,747 1,480 1,027 826 1,268 1,272 1,147 Asia Pacific 1,989 1,645 1,779 444 365 351 917 905 685 Other 5,387 4,648 4,350 557 390 711 1,089 1,064 1,082 Eliminations and other (1,571) (1,330) (1,138) (854) (695) (502) 541 500 469 Consolidated $ 45,349 $ 34,701 $ 29,713 $ 4,914 $ 2,877 $ 2,989 $ 10,322 $ 9,906 $ 7,807 |
Schedule Of Revenue By Major Customers By Reporting Segments [Table Text Block] | (dollars in millions) 2019 2018 2017 Pratt & Whitney $ 5,614 $ 4,489 $ 3,347 Collins Aerospace Systems 4,802 2,779 2,299 Other 12 10 12 Total $ 10,428 $ 7,278 $ 5,658 |
Revenue from External Customers by Geographic Areas [Table Text Block] | (dollars in millions) 2019 2018 2017 Europe $ 7,078 $ 6,217 $ 5,197 Asia Pacific 6,411 5,355 3,526 Other 3,295 1,966 1,675 Total $ 16,784 $ 13,538 $ 10,398 |
Schedule of Segment Reporting Information, by Geographic Market [Table Text Block] | Sales by primary geographical market for the year ended December 31, 2019 is as follows: (dollars in millions) Pratt & Whitney Collins Aerospace Systems Total Primary Geographical Markets United States $ 16,148 $ 18,977 $ 35,125 Europe 498 3,921 4,419 Asia Pacific 1,164 825 1,989 Other* 3,082 2,305 5,387 Total segment $ 20,892 $ 26,028 $ 46,920 Eliminations and other (1,571) Consolidated $ 45,349 |
Segment Reporting Disclosure, Product & Sales Type [Text Block] | for the year ended December 31, 2019 are as follows: (dollars in millions) Pratt & Whitney Collins Aerospace Systems Total Product Type Commercial and industrial, non aerospace $ 102 $ 51 $ 153 Commercial aerospace 14,516 19,005 33,521 Military aerospace 6,274 6,972 13,246 Total segment $ 20,892 $ 26,028 $ 46,920 Eliminations and other (1,571) Consolidated $ 45,349 Sales Type Product $ 12,977 $ 21,440 $ 34,417 Service 7,915 4,588 12,503 Total segment $ 20,892 $ 26,028 $ 46,920 Eliminations and other (1,571) Consolidated $ 45,349 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule Of Quarterly Financial Information [Table Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) 2019 Quarters 2018 Quarters (dollars in millions, First Second Third Fourth First Second Third Fourth Net Sales $ 10,953 $ 11,329 $ 11,373 $ 11,694 $ 7,836 $ 8,333 $ 8,412 $ 10,121 Gross margin 2,534 2,775 2,864 2,578 1,791 1,819 1,586 2,041 Income (loss) from continuing operations 712 1,183 958 657 598 541 318 (240) Income from discontinued operations 634 717 190 486 699 1,507 920 926 Net income attributable to common shareowners 1,346 1,900 1,148 1,143 1,297 2,048 1,238 686 Earnings per share of Common Stock - Basic: Income (loss) from continuing operations 0.84 1.38 1.12 $ 0.77 $ 0.76 $ 0.68 $ 0.40 $ (0.29) Income from discontinued operations 0.74 0.84 0.22 $ 0.56 $ 0.88 $ 1.91 $ 1.16 $ 1.12 Net income attributable to common shareholders $ 1.58 $ 2.22 $ 1.34 $ 1.33 $ 1.64 $ 2.59 $ 1.56 $ 0.83 Earnings per share of Common Stock - Diluted: Income (loss) from continuing operations $ 0.83 $ 1.37 $ 1.11 $ 0.76 $ 0.75 $ 0.68 $ 0.39 $ (0.29) Income from discontinued operations $ 0.73 $ 0.83 $ 0.22 $ 0.56 $ 0.87 $ 1.88 $ 1.15 $ 1.12 Net income attributable to common shareholders $ 1.56 $ 2.20 $ 1.33 $ 1.32 $ 1.62 $ 2.56 $ 1.54 $ 0.83 |
Performance Graph - Unaudited (
Performance Graph - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Performance Graph [Abstract] | |
Cumulative Total Shareholder Return [Table Text Block] | COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Supplemental operating lease cash flow information [Table Text Block] | Supplemental cash flow information related to operating leases was as follows: (dollars in millions) Year ended December 31, 2019 Operating cash flows used in the measurement of operating lease liabilities $ 411 Operating lease right-of-use assets obtained in exchange for operating lease obligations 123 |
Balance Sheet Location, Operating Leases [Table Text Block] | Operating lease right-of-use assets and liabilities are reflected on our Consolidated Balance Sheet as follows: (dollars in millions, except lease term and discount rate) December 31, 2019 Operating lease right-of-use assets $ 1,252 Accrued liabilities $ (245) Operating lease liabilities (1,093) Total operating lease liabilities $ (1,338) |
Supplemental Balance Sheet Information, Operating Leases [Table Text Block] | Supplemental balance sheet information related to operating leases was as follows: December 31, 2019 Weighted Average Remaining Lease Term (in years) 8.6 Weighted Average Discount Rate 3.5 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Undiscounted maturities of operating lease liabilities as of December 31, 2019 are as follows: (dollars in millions) 2020 $ 298 2021 265 2022 196 2023 147 2024 120 Thereafter 595 Total undiscounted lease payments 1,621 Less imputed interest (283) Total discounted lease payments $ 1,338 |
Summary of Accounting Princip_3
Summary of Accounting Principles (Details) € in Millions, $ in Millions | Apr. 03, 2020shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019EUR (€) |
Accounting Policies [Abstract] | |||||
Restricted Cash And Cash Equivalents | $ 24 | $ 38 | |||
Unbilled Contracts Receivable | 265 | 439 | |||
Capitalized Contract Cost, Net | 1,519 | 914 | |||
Operating profit impact of contract adjustments | (69) | (50) | $ (110) | ||
Revenue, Remaining Performance Obligation, Amount | $ 111,700 | $ 93,800 | |||
Revenue, Remaining Performance Obligations, to be recognized within 24 months | 37.00% | 37.00% | |||
Long-term debt, euro-denominated | € | € 4,200 | ||||
Collaborators interests existing programs low end | 13.00% | 13.00% | |||
Collaborators interests existing programs high end | 49.00% | 49.00% | |||
Partner share individual program maximum | 31.00% | 31.00% | |||
Carrier [Member] | |||||
Accounting Policies [Abstract] | |||||
Shares of common stock distributed in the Distribution | shares | 866,158,910 | ||||
Finite-Lived Intangible Assets [Line Items] | |||||
Shares of common stock distributed in the Distribution | shares | 866,158,910 | ||||
Otis [Member] | |||||
Accounting Policies [Abstract] | |||||
Shares of common stock distributed in the Distribution | shares | 433,079,455 | ||||
Finite-Lived Intangible Assets [Line Items] | |||||
Shares of common stock distributed in the Distribution | shares | 433,079,455 |
Summary of Accounting Princip_4
Summary of Accounting Principles (Indefinite Lived Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Collaboration Asset [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 30 years |
Customer Relationships [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Customer Relationships [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 32 years |
Patents & trademarks [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Patents & trademarks [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 30 years |
Exclusivity Assets [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Exclusivity Assets [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 25 years |
Summary of Accounting Princip_5
Summary of Accounting Principles (Collaborative Arrangements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Collaborators interests existing programs low end | 13.00% | ||
Collaborators interests existing programs high end | 49.00% | ||
Partner share individual program maximum | 31.00% | ||
Cost of Products Sold [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Collaborator Share Of Sales | $ 2,097 | $ 1,688 | $ 1,789 |
Collaborator Share Of Program Costs | 190 | 209 | 143 |
Cost of Services Sold [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Collaborator Share Of Sales | 1,674 | 1,765 | 929 |
Research and Development [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Collaborator Share Of Program Costs | 219 | 225 | 190 |
Selling General and Administrative [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Collaborator Share Of Program Costs | $ 101 | $ 87 | $ 74 |
Summary of Accounting Princip_6
Summary of Accounting Principles Accounting Pronouncements (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Standards Update 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 326): Measurement of Credit Losses on Financial Instruments. This ASU and its related amendments modifies the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables, contract assets, long-term receivables and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, including historical information, current conditions and a reasonable forecast period, which may result in earlier recognition of certain losses. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. A modified retrospective approach is required with a cumulative-effect adjustment to retained earnings as of January 1, 2020. We are still quantifying the impact of this ASU and its related amendments on our Consolidated Financial Statements which is not expected to be material. |
Accounting Standards Update 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. |
Accounting Standards Update 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 fiscal years ending after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this ASU. |
Accounting Standards Update 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, 2019, with early adoption permitted. We adopted the new standard prospectively effective January 1, 2020. We do not expect this ASU to have a material impact on the Consolidated Financial Statements. |
Accounting Standards Update 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 adopted the new standard effective January 1, 2020. This ASU did not have an impact on the Consolidated Financial Statements. |
Accounting Standards Update 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 adopted the new standard effective January 1, 2020. This ASU did not have an impact on the Consolidated Financial Statements. |
ASU 2019-12 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update remove certain exceptions of Topic 740 including: exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or gain from other items; exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. There are also additional areas of guidance in regards to: franchise and other taxes partially based on income and the interim recognition of enactment of tax laws and rate changes. 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 on our consolidated financial statements |
Business Combinations (Details)
Business Combinations (Details) - USD ($) | Jan. 20, 2020 | Nov. 26, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||||||||
Acquisition Cost Of Acquired Entities and Interest in Affiliates | $ 9,000,000 | $ 30,783,000,000 | $ 25,000,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 7,784,000,000 | 7,784,000,000 | |||||||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 7,960,000,000 | ||||||||||||
Proceeds from Issuance of Debt | 11,000,000,000 | ||||||||||||
Proceeds from Debt, Net of Issuance Costs | 10,900,000,000 | ||||||||||||
Goodwill, Acquired During Period | 75,000,000 | ||||||||||||
Contractual Obligation | $ 1,408,000,000 | 1,705,000,000 | 1,408,000,000 | 1,705,000,000 | |||||||||
Contractual Obligation, Consumed in Current Year | 345,000,000 | 252,000,000 | |||||||||||
Contractual Obligation, Due in Next Fiscal Year | 263,000,000 | 263,000,000 | |||||||||||
Contractual Obligation, Due in Second Year | 189,000,000 | 189,000,000 | |||||||||||
Contractual Obligation, Due in Third Year | 148,000,000 | 148,000,000 | |||||||||||
Contractual Obligation, Due in Fourth Year | 118,000,000 | 118,000,000 | |||||||||||
Contractual Obligation, Due in Fifth Year | 127,000,000 | 127,000,000 | |||||||||||
Operating profit | 4,914,000,000 | 2,877,000,000 | 2,989,000,000 | ||||||||||
Revenues | 11,694,000,000 | $ 11,373,000,000 | $ 11,329,000,000 | $ 10,953,000,000 | 10,121,000,000 | $ 8,412,000,000 | $ 8,333,000,000 | $ 7,836,000,000 | 45,349,000,000 | 34,701,000,000 | 29,713,000,000 | ||
Assets held for sale | 175,000,000 | 175,000,000 | |||||||||||
Dispositions of businesses | 134,000,000 | 74,000,000 | 19,000,000 | ||||||||||
Liabilities held for sale | 0 | 40,000,000 | 0 | 40,000,000 | |||||||||
BAE Systems sale of assets agreement | $ 1,930,000,000 | ||||||||||||
Goodwill | 36,609,000,000 | 36,590,000,000 | 36,609,000,000 | 36,590,000,000 | |||||||||
Goodwill, Translation and Purchase Accounting Adjustments | (56,000,000) | ||||||||||||
Finite-Lived Intangible Assets, Gross | 25,935,000,000 | 24,864,000,000 | 25,935,000,000 | 24,864,000,000 | |||||||||
Finite-Lived Intangible Assets, Accumulated Amortization | (4,838,000,000) | (3,594,000,000) | (4,838,000,000) | (3,594,000,000) | |||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 3,376,000,000 | 3,372,000,000 | 3,376,000,000 | 3,372,000,000 | |||||||||
Intangible Assets, Gross (Excluding Goodwill) | 29,311,000,000 | 28,236,000,000 | 29,311,000,000 | 28,236,000,000 | |||||||||
Amortization of Intangible Assets | 1,244,000,000 | 736,000,000 | 587,000,000 | ||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 1,248,000,000 | 1,248,000,000 | |||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,249,000,000 | 1,249,000,000 | |||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,283,000,000 | 1,283,000,000 | |||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,290,000,000 | 1,290,000,000 | |||||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,277,000,000 | 1,277,000,000 | |||||||||||
Business Combination, Acquisition Related Costs | 40,000,000 | 112,000,000 | 39,000,000 | ||||||||||
Pratt and Whitney [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Goodwill, Acquired During Period | 0 | ||||||||||||
Operating profit | 1,668,000,000 | 1,269,000,000 | 1,300,000,000 | ||||||||||
Revenues | 20,892,000,000 | 19,397,000,000 | 16,160,000,000 | ||||||||||
Goodwill | 1,563,000,000 | 1,567,000,000 | 1,563,000,000 | 1,567,000,000 | |||||||||
Goodwill, Translation and Purchase Accounting Adjustments | (4,000,000) | ||||||||||||
Collins Aerospace Systems [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Goodwill, Acquired During Period | 75,000,000 | ||||||||||||
Operating profit | 4,100,000,000 | 2,303,000,000 | 2,191,000,000 | ||||||||||
Revenues | 26,028,000,000 | 16,634,000,000 | 14,691,000,000 | ||||||||||
Goodwill | 35,025,000,000 | 35,002,000,000 | 35,025,000,000 | 35,002,000,000 | |||||||||
Goodwill, Translation and Purchase Accounting Adjustments | (52,000,000) | ||||||||||||
Goodwill, Purchase Accounting Adjustments | 475,000,000 | ||||||||||||
Total Segments [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Goodwill, Acquired During Period | 75,000,000 | ||||||||||||
Operating profit | 5,768,000,000 | 3,572,000,000 | 3,491,000,000 | ||||||||||
Revenues | 46,920,000,000 | 36,031,000,000 | 30,851,000,000 | ||||||||||
Goodwill | 36,588,000,000 | 36,569,000,000 | 36,588,000,000 | 36,569,000,000 | |||||||||
Goodwill, Translation and Purchase Accounting Adjustments | (56,000,000) | ||||||||||||
Eliminations and other [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Goodwill, Acquired During Period | 0 | ||||||||||||
Operating profit | (339,000,000) | (220,000,000) | (63,000,000) | ||||||||||
Revenues | (1,571,000,000) | (1,330,000,000) | (1,138,000,000) | ||||||||||
Goodwill | 21,000,000 | 21,000,000 | 21,000,000 | 21,000,000 | |||||||||
Goodwill, Translation and Purchase Accounting Adjustments | 0 | ||||||||||||
Property, Plant and Equipment [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Assets held for sale | 37,000,000 | 37,000,000 | |||||||||||
Inventories [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Assets held for sale | 51,000,000 | 51,000,000 | |||||||||||
Customer Relationships [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Goodwill, Purchase Accounting Adjustments | 400,000,000 | ||||||||||||
Finite-Lived Intangible Assets, Gross | 21,026,000,000 | 20,308,000,000 | 21,026,000,000 | 20,308,000,000 | |||||||||
Finite-Lived Intangible Assets, Accumulated Amortization | (3,884,000,000) | (2,913,000,000) | $ (3,884,000,000) | (2,913,000,000) | |||||||||
Customer Relationships [Member] | Maximum [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Finite-Lived Intangible Asset, Useful Life | 32 years | ||||||||||||
Customer Relationships [Member] | Minimum [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||||||||||||
Patents & trademarks [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Finite-Lived Intangible Assets, Gross | 47,000,000 | 47,000,000 | $ 47,000,000 | 47,000,000 | |||||||||
Finite-Lived Intangible Assets, Accumulated Amortization | (34,000,000) | (32,000,000) | $ (34,000,000) | (32,000,000) | |||||||||
Patents & trademarks [Member] | Maximum [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Finite-Lived Intangible Asset, Useful Life | 30 years | ||||||||||||
Patents & trademarks [Member] | Minimum [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||||||||||
Collaboration [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Finite-Lived Intangible Assets, Gross | 4,862,000,000 | 4,509,000,000 | $ 4,862,000,000 | 4,509,000,000 | |||||||||
Finite-Lived Intangible Assets, Accumulated Amortization | (920,000,000) | $ (649,000,000) | (920,000,000) | (649,000,000) | |||||||||
Rockwell Collins [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 5,530,000,000 | ||||||||||||
Business Acquisition Cash Paid Per Share | 93.33 | ||||||||||||
Business Acquisition UTC stock payable | 0.37525 | ||||||||||||
Payments to Acquire Businesses, Gross | 15,500,000,000 | 15,533,000,000 | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 14.9 | ||||||||||||
Stock Issued During Period, Shares, Acquisitions | 62,200,000 | ||||||||||||
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 | 1,659,000,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 1,487,000,000 | ||||||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, contract with customer asset, current | 320,000,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 251,000,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 38,000,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,542,000,000 | ||||||||||||
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 | 217,000,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 17,344,000,000 | ||||||||||||
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 | 520,000,000 | ||||||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, accrued liabilities current | 1,663,000,000 | ||||||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, contract with customer liabilities, current | 299,000,000 | ||||||||||||
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 | 3,614,000,000 | ||||||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, noncontrolling interest | 6,000,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 14,388,000,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 2,956,000,000 | ||||||||||||
Goodwill, Acquired During Period | 20,537,000,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 23,493,000,000 | ||||||||||||
Fair value adjustment, inventory | 282,000,000 | ||||||||||||
Fair value adjustment, fixed assets | 244,000,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 11,190,000,000 | ||||||||||||
Contractual Obligation | 1,020,000,000 | ||||||||||||
Contractual Obligation, Consumed in Current Year | 129,000,000 | ||||||||||||
Contractual Obligation, Due in Next Fiscal Year | 104,000,000 | 104,000,000 | |||||||||||
Contractual Obligation, Due in Second Year | 104,000,000 | 104,000,000 | |||||||||||
Contractual Obligation, Due in Third Year | 112,000,000 | 112,000,000 | |||||||||||
Contractual Obligation, Due in Fourth Year | 96,000,000 | 96,000,000 | |||||||||||
Contractual Obligation, Due in Fifth Year | $ 101,000,000 | 101,000,000 | |||||||||||
Operating profit | 11,000,000 | ||||||||||||
Revenues | $ 778,000,000 | ||||||||||||
Business Acquisition, Pro Forma Revenue | 42,336,000,000 | 37,909,000,000 | |||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 2,011,000,000 | $ 1,423,000,000 | |||||||||||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 2.26 | $ 1.66 | |||||||||||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 2.24 | $ 1.65 | |||||||||||
Pro Forma Nonrecurring Adjustment, Amortization of inventory and fixed asset fair value adjustment | $ 58,000,000 | $ (192,000,000) | |||||||||||
Pro Forma Nonrecurring Adjustment, Amortization of acquired Rockwell Collins intangible assets, net | (193,000,000) | (202,000,000) | |||||||||||
Pro Forma Nonrecurring Adjustment, Utilization of contractual customer obligation | 16,000,000 | 116,000,000 | |||||||||||
Pro Forma Nonrecurring Adjustment, UTC/Rockwell fees for advisory, legal, accounting services | 212,000,000 | (212,000,000) | |||||||||||
Pro Forma Nonrecurring Adjustment, Interest expense incurred on acquisition financing, net | (199,000,000) | (234,000,000) | |||||||||||
Pro Forma Nonrecurring Adjustment, Elimination of capitalized pre-production engineering amortization | 63,000,000 | 42,000,000 | |||||||||||
Pro Forma Nonrecurring Adjustment, Adjustment to net periodic pension cost | 42,000,000 | 34,000,000 | |||||||||||
Pro Forma Nonrecurring Adjustment, Adjustment to reflect the adoption of ASC 606 | 106,000,000 | 0 | |||||||||||
Pro Forma Nonrecurring Adjustment, Elimination of entities held for sale | (47,000,000) | (35,000,000) | |||||||||||
Pro Forma Nonrecurring Adjustment, to include the results and related adjustments for B/E Aerospace | 0 | (51,000,000) | |||||||||||
Pro Forma Nonrecurring Adjustments, Net | $ 58,000,000 | $ (734,000,000) | |||||||||||
Rockwell Collins [Member] | Customer Relationships [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 8,720,000,000 | ||||||||||||
Rockwell Collins [Member] | Customer Relationships [Member] | Maximum [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Finite-Lived Intangible Asset, Useful Life | 23 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 | ||||||||||||
Raytheon Company [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Agreed Upon Number Shares of Common Stock of UTC which each share of Raytheon Common Stock will be Converted Into | 2.3348 | 2.3348 |
Discontinued Operations and D_3
Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net (loss) income from discontinued operations | $ 486 | $ 190 | $ 717 | $ 634 | $ 926 | $ 920 | $ 1,507 | $ 699 | $ 2,027 | $ 4,053 | $ 3,239 |
Income from discontinued operations, before income taxes | 4,091 | 5,776 | 5,241 | ||||||||
Income tax expense | 1,874 | 1,528 | 1,789 | ||||||||
Income from discontinued operations | 2,217 | 4,248 | 3,452 | ||||||||
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations | 190 | 195 | 213 | ||||||||
Net cash provided by operating activities | 3,062 | 3,652 | 3,349 | ||||||||
Net cash (used in) provided by investing activities | (416) | 286 | 108 | ||||||||
Net cash used in financing activities | (2,651) | (4,244) | (3,431) | ||||||||
Cash and cash equivalents | 2,441 | 2,459 | 2,441 | 2,459 | |||||||
Accounts receivable, net | 5,627 | 5,647 | 5,627 | 5,647 | |||||||
Contract assets, current | 1,209 | 1,111 | 1,209 | 1,111 | |||||||
Inventories and contracts in progress, net | 1,903 | 2,003 | 1,903 | 2,003 | |||||||
Other assets, current | 434 | 559 | 434 | 559 | |||||||
Future income tax benefits | 725 | 647 | 725 | 647 | |||||||
Fixed assets, net | 2,433 | 2,390 | 2,433 | 2,390 | |||||||
Operating lease right-of-use assets | 1,347 | 1,347 | |||||||||
Goodwill | 11,454 | 11,523 | 11,454 | 11,523 | |||||||
Intangible assets, net | 1,573 | 1,783 | 1,573 | 1,783 | |||||||
Other assets | 2,677 | 2,618 | 2,677 | 2,618 | |||||||
Total assets related to discontinued operations | 31,823 | 30,740 | 31,823 | 30,740 | |||||||
Short-term borrowings | 71 | 41 | 71 | 41 | |||||||
Accounts payable | 3,003 | 3,244 | 3,003 | 3,244 | |||||||
Accrued liabilities | 4,540 | 3,538 | 4,540 | 3,538 | |||||||
Contract liabilities, current | 2,899 | 2,971 | 2,899 | 2,971 | |||||||
Long-term debt, currently due | 238 | 154 | 238 | 154 | |||||||
Long-term debt | 87 | 150 | 87 | 150 | |||||||
Future pension and postretirement benefit obligations | 1,015 | 968 | 1,015 | 968 | |||||||
Operating lease liabilities | 1,051 | 1,051 | |||||||||
Other long-term liabilities (1) | 1,539 | 1,562 | 1,539 | 1,562 | |||||||
Total liabilities related to discontinued operations | 14,443 | 12,628 | 14,443 | 12,628 | |||||||
Disposal Group, Including Discontinued Operation, Deferred Tax Liabilities | 145 | 145 | |||||||||
Otis [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net (loss) income from discontinued operations | 1,033 | 1,213 | 1,123 | ||||||||
Selling, general and administrative expense | 1,906 | 1,636 | 1,583 | ||||||||
Disposal Group, Including Discontinued Operation, Other Expense | (40) | 26 | 37 | ||||||||
Income from discontinued operations, before income taxes | 1,709 | 1,935 | 2,000 | ||||||||
Income tax expense | 525 | 561 | 704 | ||||||||
Income from discontinued operations | 1,184 | 1,374 | 1,296 | ||||||||
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations | 151 | 161 | 173 | ||||||||
Cash and cash equivalents | 1,446 | 1,329 | 1,446 | 1,329 | |||||||
Accounts receivable, net | 2,899 | 2,764 | 2,899 | 2,764 | |||||||
Contract assets, current | 530 | 661 | 530 | 661 | |||||||
Inventories and contracts in progress, net | 571 | 640 | 571 | 640 | |||||||
Other assets, current | 213 | 264 | 213 | 264 | |||||||
Future income tax benefits | 355 | 304 | 355 | 304 | |||||||
Fixed assets, net | 747 | 709 | 747 | 709 | |||||||
Operating lease right-of-use assets | 529 | 529 | |||||||||
Goodwill | 1,647 | 1,688 | 1,647 | 1,688 | |||||||
Intangible assets, net | 490 | 569 | 490 | 569 | |||||||
Other assets | 220 | 169 | 220 | 169 | |||||||
Total assets related to discontinued operations | 9,647 | 9,097 | 9,647 | 9,097 | |||||||
Short-term borrowings | 33 | 27 | 33 | 27 | |||||||
Accounts payable | 1,321 | 1,334 | 1,321 | 1,334 | |||||||
Accrued liabilities | 1,651 | 1,462 | 1,651 | 1,462 | |||||||
Contract liabilities, current | 2,288 | 2,359 | 2,288 | 2,359 | |||||||
Long-term debt, currently due | 1 | 1 | 1 | 1 | |||||||
Long-term debt | 5 | 4 | 5 | 4 | |||||||
Future pension and postretirement benefit obligations | 560 | 542 | 560 | 542 | |||||||
Operating lease liabilities | 383 | 383 | |||||||||
Other long-term liabilities (1) | 514 | 469 | 514 | 469 | |||||||
Total liabilities related to discontinued operations | 6,756 | 6,198 | 6,756 | 6,198 | |||||||
Otis [Member] | Research and Development [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Research and development | 163 | 185 | 187 | ||||||||
Otis [Member] | Nonoperating Income (Expense) | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Disposal Group, Including Discontinued Operation, Other Expense | (4) | 18 | 4 | ||||||||
Otis [Member] | Product [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Sales | 5,669 | 5,636 | 5,498 | ||||||||
Costs of Goods Sold | 4,656 | 4,624 | 4,392 | ||||||||
Otis [Member] | Service [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Sales | 7,444 | 7,268 | 6,843 | ||||||||
Costs of Goods Sold | 4,635 | 4,568 | 4,220 | ||||||||
Carrier [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net (loss) income from discontinued operations | 1,698 | 2,840 | 2,116 | ||||||||
Selling, general and administrative expense | 2,888 | 2,566 | 2,459 | ||||||||
Disposal Group, Including Discontinued Operation, Other Expense | 246 | 1,156 | 794 | ||||||||
Income from discontinued operations, before income taxes | 2,409 | 3,841 | 3,241 | ||||||||
Income tax expense | 672 | 967 | 1,085 | ||||||||
Income from discontinued operations | 1,737 | 2,874 | 2,156 | ||||||||
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations | 39 | 34 | 40 | ||||||||
Cash and cash equivalents | 995 | 1,130 | 995 | 1,130 | |||||||
Accounts receivable, net | 2,728 | 2,883 | 2,728 | 2,883 | |||||||
Contract assets, current | 679 | 450 | 679 | 450 | |||||||
Inventories and contracts in progress, net | 1,332 | 1,363 | 1,332 | 1,363 | |||||||
Other assets, current | 221 | 295 | 221 | 295 | |||||||
Future income tax benefits | 370 | 343 | 370 | 343 | |||||||
Fixed assets, net | 1,686 | 1,681 | 1,686 | 1,681 | |||||||
Operating lease right-of-use assets | 818 | 818 | |||||||||
Goodwill | 9,807 | 9,835 | 9,807 | 9,835 | |||||||
Intangible assets, net | 1,083 | 1,214 | 1,083 | 1,214 | |||||||
Other assets | 2,457 | 2,449 | 2,457 | 2,449 | |||||||
Total assets related to discontinued operations | 22,176 | 21,643 | 22,176 | 21,643 | |||||||
Short-term borrowings | 38 | 14 | 38 | 14 | |||||||
Accounts payable | 1,682 | 1,910 | 1,682 | 1,910 | |||||||
Accrued liabilities | 2,889 | 2,076 | 2,889 | 2,076 | |||||||
Contract liabilities, current | 611 | 612 | 611 | 612 | |||||||
Long-term debt, currently due | 237 | 153 | 237 | 153 | |||||||
Long-term debt | 82 | 146 | 82 | 146 | |||||||
Future pension and postretirement benefit obligations | 455 | 426 | 455 | 426 | |||||||
Operating lease liabilities | 668 | 668 | |||||||||
Other long-term liabilities (1) | 1,025 | 1,093 | 1,025 | 1,093 | |||||||
Total liabilities related to discontinued operations | $ 7,687 | $ 6,430 | 7,687 | 6,430 | |||||||
Carrier [Member] | Research and Development [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Research and development | 400 | 399 | 364 | ||||||||
Carrier [Member] | Nonoperating Income (Expense) | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Disposal Group, Including Discontinued Operation, Other Expense | 43 | 82 | 88 | ||||||||
Carrier [Member] | Product [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Sales | 15,337 | 15,657 | 14,744 | ||||||||
Costs of Goods Sold | 10,878 | 11,047 | 10,447 | ||||||||
Carrier [Member] | Service [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Sales | 3,247 | 3,239 | 3,039 | ||||||||
Costs of Goods Sold | 2,298 | 2,281 | 2,154 | ||||||||
Separation Related Transactions [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net (loss) income from discontinued operations | (704) | 0 | 0 | ||||||||
Selling, general and administrative expense | 16 | 0 | 0 | ||||||||
Income from discontinued operations, before income taxes | (27) | 0 | 0 | ||||||||
Income tax expense | $ 677 | $ 0 | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Antidilutive securities excluded from computation of earnings per share amount | 8,300,000 | 5,100,000 | 5,900,000 | ||||||||
Net Income (Loss) Attributable to Common Shareowners | |||||||||||
Net income from continuing operations | $ 657 | $ 958 | $ 1,183 | $ 712 | $ (240) | $ 318 | $ 541 | $ 598 | $ 3,510 | $ 1,216 | $ 1,313 |
Net (loss) income from discontinued operations | 486 | 190 | 717 | 634 | 926 | 920 | 1,507 | 699 | 2,027 | 4,053 | 3,239 |
Net income attributable to common shareowners | $ 1,143 | $ 1,148 | $ 1,900 | $ 1,346 | $ 686 | $ 1,238 | $ 2,048 | $ 1,297 | $ 5,537 | $ 5,269 | $ 4,552 |
Basic weighted average number of shares outstanding | 854,800,000 | 800,400,000 | 790,000,000 | ||||||||
Stock Awards | 9,100,000 | 9,700,000 | 9,100,000 | ||||||||
Diluted weighted average number of shares outstanding | 863,900,000 | 810,100,000 | 799,100,000 | ||||||||
Earnings Per Share of Common Stock - Basic | |||||||||||
Net income from continuing operations | $ 0.77 | $ 1.12 | $ 1.38 | $ 0.84 | $ (0.29) | $ 0.40 | $ 0.68 | $ 0.76 | $ 4.11 | $ 1.52 | $ 1.66 |
Net (loss) income from discontinued operations | 0.56 | 0.22 | 0.84 | 0.74 | 1.12 | 1.16 | 1.91 | 0.88 | 2.37 | 5.06 | 4.10 |
Net income attributable to common shareowners | 1.33 | 1.34 | 2.22 | 1.58 | 0.83 | 1.56 | 2.59 | 1.64 | 6.48 | 6.58 | 5.76 |
Earnings Per Share of Common Stock - Diluted | |||||||||||
Net income from continuing operations | 0.76 | 1.11 | 1.37 | 0.83 | (0.29) | 0.39 | 0.68 | 0.75 | 4.06 | 1.50 | 1.64 |
Net (loss) income from discontinued operations | 0.56 | 0.22 | 0.83 | 0.73 | 1.12 | 1.15 | 1.88 | 0.87 | 2.35 | 5 | 4.06 |
Net income attributable to common shareowners | $ 1.32 | $ 1.33 | $ 2.20 | $ 1.56 | $ 0.83 | $ 1.54 | $ 2.56 | $ 1.62 | $ 6.41 | $ 6.50 | $ 5.70 |
Commercial Aerospace Industry_3
Commercial Aerospace Industry Assets and Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Nov. 26, 2018 | Jul. 26, 2012 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Contract with Customer, Asset, after Allowance for Credit Loss | $ 4,462 | $ 3,666 | ||
Contractual Obligation | 1,408 | 1,705 | ||
Contractual Obligation, Consumed in Current Year | 345 | 252 | ||
Contractual Obligation, Due in Next Fiscal Year | 263 | |||
Contractual Obligation, Due in Second Year | 189 | |||
Contractual Obligation, Due in Third Year | 148 | |||
Contractual Obligation, Due in Fourth Year | 118 | |||
Contractual Obligation, Due in Fifth Year | 127 | |||
Contractual Obligation, Due after Fifth Year | 563 | |||
Commercial Aerospace [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Guarantee Obligations Maximum Exposure | 333 | 348 | ||
Partner Share of Guarantor Obligations, Maximum Exposure, Undiscounted | 142 | |||
Commercial Aerospace [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Accounts, Notes, Loans and Financing Receivable, gross | 11,293 | 11,695 | ||
Products Under Lease | 3,185 | 2,736 | ||
Notes and leases receivable, total committed | 308 | 299 | ||
Commercial Aerospace financing and other contractual commitments | 15,000 | |||
Notes and leases receivable within one year | 30 | |||
Notes and leases receivable within two years | 23 | |||
Notes and leases receivable within three years | 14 | |||
Notes and leases receivable within four years | 22 | |||
Notes and leases receivable within five years | 38 | |||
Notes and leases receivable after five years | 181 | |||
Commercial aerospace financing commitments, total committed | 3,937 | |||
Commercial aerospace financing commitments within one year | 911 | |||
Commercial aerospace financing commitments within two years | 1,119 | |||
Commercial aerospace financing commitments within three years | 974 | |||
Commercial aerospace financing commitments within four years | 819 | |||
Commercial aerospace financing commitments within five years | 44 | |||
Commercial aerospace financing commitments after five years | 70 | |||
Other commercial aerospace commitments, total committed | 11,055 | |||
Other commercial aerospace commitments within one year | 702 | |||
Other commercial aerospace commitments within two years | 736 | |||
Other commercial aerospace commitments within three years | 717 | |||
Other commercial aerospace commitments within four years | 668 | |||
Other commercial aerospace commitments within five years | 627 | |||
Other commercial aerospace commitments after five years | 7,605 | |||
Collaboration partners' share, total committed | 5,284 | |||
Collaboration partners' share within one year | 508 | |||
Collaboration partners' share within two years | 623 | |||
Collaboration partners' share within three years | 571 | |||
Collaboration partners' share within four years | 538 | |||
Collaboration partners' share within five years | 193 | |||
Collaboration partners' share after five years | 2,851 | |||
Total commercial commitments, total committed | 9,708 | |||
Total commercial commitments within one year | 1,105 | |||
Total commercial commitments within two years | 1,232 | |||
Total commercial commitments within three years | 1,120 | |||
Total commercial commitments within four years | 949 | |||
Total commercial commitments within five years | 478 | |||
Total commercial commitments after five years | 4,824 | |||
Contract with Customer, Asset, after Allowance for Credit Loss | 2,741 | 2,247 | ||
Allowance for Receivables and Other Financing Assets | 248 | 245 | ||
Financing Commitments and Guarantees Reserve | 7 | $ 15 | ||
Goodrich Corporation [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Contractual Obligation | $ 2,200 | |||
Rockwell Collins [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Contractual Obligation | $ 1,020 | |||
Contractual Obligation, Consumed in Current Year | 129 | |||
Contractual Obligation, Due in Next Fiscal Year | 104 | |||
Contractual Obligation, Due in Second Year | 104 | |||
Contractual Obligation, Due in Third Year | 112 | |||
Contractual Obligation, Due in Fourth Year | 96 | |||
Contractual Obligation, Due in Fifth Year | $ 101 |
Inventory, Net (Details)
Inventory, Net (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,984 | $ 2,624 |
Work-in-process | 2,586 | 2,538 |
Finished goods | 3,477 | 2,919 |
Inventory, net | 9,047 | 8,081 |
Inventory Valuation Reserves | $ 1,122 | $ 1,036 |
Contract with Customer, Asset a
Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, after Allowance for Credit Loss | $ 4,462 | $ 3,666 |
Contract with Customer, Liability | 9,014 | 7,818 |
Contract with Customer, Net | (4,552) | $ (4,152) |
Contract with Customer, Asset, Change | 796 | |
Contract with Customer, Liability, Change | (1,196) | |
Contract with Customer, Liability, Revenue Recognized | $ 2,900 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | |||
Land | $ 292 | $ 266 | |
Buildings and improvements | 4,978 | 4,768 | |
Machinery, tools and equipment | 12,936 | 11,951 | |
Other, including assets under construction | 1,871 | 1,735 | |
Fixed assets | 20,077 | 18,720 | |
Accumulated depreciation | 9,755 | 8,814 | |
Fixed assets, net | 10,322 | 9,906 | |
Depreciation | $ 1,191 | $ 945 | $ 869 |
Land Buildings And Improvements [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Land Buildings And Improvements [Member] | Minimum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 12 years | ||
Machinery And Equipment [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Machinery And Equipment [Member] | Minimum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities [Abstract] | ||
Accrued salaries, wages and employee benefits | $ 1,353 | $ 1,063 |
Contractual Obligation | 1,408 | 1,705 |
Service and warranty accruals | 1,033 | 929 |
Interest payable | 472 | 468 |
Litigation and contract matters | 405 | 324 |
Income taxes payable | 106 | 313 |
Accrued property, sales and use taxes | 140 | 94 |
Canadian government settlement - current portion | 0 | 34 |
Accrued restructuring costs | 123 | 159 |
Accrued workers compensation | 91 | 80 |
Liabilities held for sale | 0 | 40 |
Operating Lease, Liability, Current | 245 | 0 |
Other | 4,394 | 4,186 |
Accrued liabilities | $ 9,770 | $ 9,395 |
Borrowings and Lines of Credi_2
Borrowings and Lines of Credit (Short-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Commercial Paper | $ 0 | $ 1,257 |
Other borrowings | 2,293 | 171 |
Total short-term borrowings | $ 2,293 | $ 1,428 |
Borrowings and Lines of Credi_3
Borrowings and Lines of Credit (ST Borrowings Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Maximum Commercial Paper Borrowing Authority | $ 6,350 | |
Short Term Line of Credit Facilities Remaining Borrowing Capacities | $ 2,300 | |
Short Term Debt Weighted Average Interest Rate, Avg Outstanding | 1.70% | 1.30% |
Total Debt Weighted Average Interest Rate, Avg Outstanding | 3.60% | 3.50% |
Short Term Debt Weighted Average Interest Rate, Outstanding | 2.30% | 1.90% |
Total Debt Weighted Average Interest Rate, Outstanding | 3.60% | 3.50% |
Line of Credit Facility [Line Items] | ||
Aggregate Line of Credit Facility Maximum Borrowing Capacity | $ 10,350 | |
Multicurrency Revolving Credit Agreement [Member] | Matures August 2021 [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,150 | |
Revolving Credit Agreement [Member] | Matures August 2021 [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,200 | |
Revolving Credit Agreement [Member] | Matures March 15 2021 [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000 | |
Term Credit Facility [Member] | Matures March 15 2021 [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 4,000 | |
Borrowings under Long-term Lines of Credit | $ 2,100 |
Borrowings and Lines of Credi_4
Borrowings and Lines of Credit (Long-Term Debt) (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | ||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Debt | $ 11,000 | |||||
Total principal long-term debt | $ 41,274 | 44,111 | ||||
Other debt (including capitalized leases) | 315 | 269 | ||||
Other (fair market value adjustments, discounts and debt issuance costs) | (315) | (348) | ||||
Total long-term debt | 40,959 | 43,763 | ||||
Less: current portion | 3,258 | 2,722 | ||||
Long-term debt, net of current portion | 37,701 | 41,041 | ||||
Long Term Debt Maturities Repayments Of Principal In Next Twelve Months | 3,258 | |||||
Long Term Debt Maturities Repayments Of Principal In Year Two | 4,091 | |||||
Long Term Debt Maturities Repayments Of Principal In Year Three | 3,904 | |||||
Long Term Debt Maturities Repayments Of Principal In Year Four | 3,490 | |||||
Long Term Debt Maturities Repayments Of Principal In Year Five | 2,592 | |||||
Long Term Debt Maturities Repayments Of Principal After Year Five | 23,939 | |||||
LIBOR plus 0.350% floating rate notes due 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [1] | $ 0 | 350 | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.35% | |||||
Debt Instrument, Maturity Year Date | Libor plus 0.350% floating rate notes due 2019 (3) | Libor plus 0.350% floating rate notes due 2019 (3) | ||||
Notes 1.500% Due 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 0 | 650 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | |||||
Debt Instrument, Maturity Year Date | 2019 | 2019 | ||||
Notes 1.950% Due 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [3] | $ 0 | 300 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | |||||
Debt Instrument, Maturity Year Date | 2019 | 2019 | ||||
EURIBOR plus 0.15% floating rate notes due 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [4] | $ 0 | 858 | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.15% | |||||
Debt Instrument, Maturity Year Date | 2019 | 2019 | ||||
Repayment of Debt, Date | Nov. 13, 2019 | Nov. 13, 2019 | ||||
Notes 5.250% Due 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [3] | $ 0 | 300 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||||
Debt Instrument, Maturity Year Date | 2019 | 2019 | ||||
Notes 8.875% Due 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | $ 0 | 271 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.875% | |||||
Debt Instrument, Maturity Year Date | 2019 | 2019 | ||||
Repayment of Debt, Date | Nov. 15, 2019 | Nov. 15, 2019 | ||||
Notes 4.875% Due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 171 | 171 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | |||||
Debt Instrument, Maturity Year Date | 2020 | 2020 | ||||
Notes 4.500% Due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 1,250 | 1,250 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||
Debt Instrument, Maturity Year Date | 2020 | 2020 | ||||
Notes 1.900% Due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 1,000 | 1,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.90% | |||||
Debt Instrument, Maturity Year Date | 2020 | 2020 | ||||
EURIBOR plus 0.20% floating rate notes due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Debt | € | [5] | € 750 | ||||
Debt Instrument, Carrying Amount | [4] | $ 831 | 858 | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.20% | |||||
Debt Instrument, Maturity Year Date | 2020 | 2020 | ||||
Notes 8.750% Due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | $ 250 | 250 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | |||||
Debt Instrument, Maturity Year Date | 2021 | 2021 | ||||
Notes 3.100% Due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [3] | $ 250 | 250 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | |||||
Debt Instrument, Maturity Year Date | 2021 | 2021 | ||||
Notes 3.350% due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Debt | [6] | $ 1,000 | ||||
Debt Instrument, Carrying Amount | [2] | $ 1,000 | 1,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.35% | |||||
Debt Instrument, Maturity Year Date | 2021 | 2021 | ||||
LIBOR plus 0.650% floating rate notes due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Debt | [6] | $ 750 | ||||
Debt Instrument, Carrying Amount | [2] | $ 750 | [1] | 750 | [7] | |
Debt Instrument, Interest Rate, Stated Percentage | 0.65% | |||||
Debt Instrument, Maturity Year Date | 2021 | 2021 | ||||
Notes 1.950% Due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 750 | 750 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | |||||
Debt Instrument, Maturity Year Date | 2021 | 2021 | ||||
Notes 1.125% Due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 1,053 | 1,088 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.125% | |||||
Debt Instrument, Maturity Year Date | 2021 | 2021 | ||||
Notes 2.300% Due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 500 | 500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.30% | |||||
Debt Instrument, Maturity Year Date | 2022 | 2022 | ||||
Notes 2.800% Due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [3] | $ 1,100 | 1,100 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | |||||
Debt Instrument, Maturity Year Date | 2022 | 2022 | ||||
Notes 3.100% Due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 2,300 | 2,300 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | |||||
Debt Instrument, Maturity Year Date | 2022 | 2022 | ||||
Notes 1.250% due 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 831 | 858 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | |||||
Debt Instrument, Maturity Year Date | 2023 | 2023 | ||||
Notes 3.650% Due 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Debt | [6] | $ 2,250 | ||||
Debt Instrument, Carrying Amount | [2] | $ 2,250 | 2,250 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.65% | |||||
Debt Instrument, Maturity Year Date | 2023 | 2023 | ||||
Notes 3.700% Due 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [3] | $ 400 | 400 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | |||||
Debt Instrument, Maturity Year Date | 2023 | 2023 | ||||
Notes 2.800% Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 800 | 800 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | |||||
Debt Instrument, Maturity Year Date | 2024 | 2024 | ||||
Notes 3.200% Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | $ 950 | [3] | 950 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | |||||
Debt Instrument, Maturity Year Date | 2024 | 2024 | ||||
Notes 1.150% Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Debt | € | [5] | € 750 | ||||
Debt Instrument, Carrying Amount | [2] | $ 831 | 858 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.15% | |||||
Debt Instrument, Maturity Year Date | 2024 | 2024 | ||||
Notes 3.950% Due 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Debt | [6] | $ 1,500 | ||||
Debt Instrument, Carrying Amount | [2] | $ 1,500 | 1,500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | |||||
Debt Instrument, Maturity Year Date | 2025 | 2025 | ||||
Notes 1.875% Due 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 554 | 573 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.875% | |||||
Debt Instrument, Maturity Year Date | 2026 | 2026 | ||||
Notes 2.650% Due 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 1,150 | 1,150 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | |||||
Debt Instrument, Maturity Year Date | 2026 | 2026 | ||||
Notes 3.125% Due 2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 1,100 | 1,100 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | |||||
Debt Instrument, Maturity Year Date | 2027 | 2027 | ||||
Notes 3.500% Due 2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [3] | $ 1,300 | 1,300 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | |||||
Debt Instrument, Maturity Year Date | 2027 | 2027 | ||||
Notes 7.100% Due 2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | $ 141 | 141 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.10% | |||||
Debt Instrument, Maturity Year Date | 2027 | 2027 | ||||
Notes 6.700% Due 2028 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | $ 400 | 400 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | |||||
Debt Instrument, Maturity Year Date | 2028 | 2028 | ||||
Notes 4.125% Due 2028 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Debt | [6] | $ 3,000 | ||||
Debt Instrument, Carrying Amount | [2] | $ 3,000 | 3,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | |||||
Debt Instrument, Maturity Year Date | 2028 | 2028 | ||||
Notes 7.500% Due 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 550 | 550 | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | |||||
Debt Instrument, Maturity Year Date | 2029 | 2029 | ||||
Notes 2.150% Due 2030 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Debt | € | [5] | € 500 | ||||
Debt Instrument, Carrying Amount | [2] | $ 554 | 573 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.15% | |||||
Debt Instrument, Maturity Year Date | 2030 | 2030 | ||||
Notes 5.400% Due 2035 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 600 | 600 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | |||||
Debt Instrument, Maturity Year Date | 2035 | 2035 | ||||
Notes 6.050% Due 2036 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 600 | 600 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.05% | |||||
Debt Instrument, Maturity Year Date | 2036 | 2036 | ||||
Notes 6.800% Due 2036 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 134 | 134 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | |||||
Debt Instrument, Maturity Year Date | 2036 | 2036 | ||||
Notes 7.000% Due 2038 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | $ 159 | 159 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||||
Debt Instrument, Maturity Year Date | 2038 | 2038 | ||||
Notes 6.125% Due 2038 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 1,000 | 1,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | |||||
Debt Instrument, Maturity Year Date | 2038 | 2038 | ||||
Notes 4.450% Due 2038 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Debt | [6] | $ 750 | ||||
Debt Instrument, Carrying Amount | [2] | $ 750 | 750 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.45% | |||||
Debt Instrument, Maturity Year Date | 2038 | 2038 | ||||
Notes 5.700% Due 2040 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 1,000 | 1,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | |||||
Debt Instrument, Maturity Year Date | 2040 | 2040 | ||||
Notes 4.500% Due 2042 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 3,500 | 3,500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||||
Debt Instrument, Maturity Year Date | 2042 | 2042 | ||||
Notes 4.800% Due 2043 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [3] | $ 400 | 400 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | |||||
Debt Instrument, Maturity Year Date | 2043 | 2043 | ||||
Notes 4.150% Due 2045 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 850 | 850 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | |||||
Debt Instrument, Maturity Year Date | 2045 | 2045 | ||||
Notes 3.750% Due 2046 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 1,100 | 1,100 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | |||||
Debt Instrument, Maturity Year Date | 2046 | 2046 | ||||
Notes 4.050% Due 2047 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [2] | $ 600 | 600 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.05% | |||||
Debt Instrument, Maturity Year Date | 2047 | 2047 | ||||
Notes 4.350% Due 2047 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Carrying Amount | [3] | $ 1,000 | 1,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | |||||
Debt Instrument, Maturity Year Date | 2047 | 2047 | ||||
Notes 4.625% Due 2048 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Debt | [8] | $ 1,750 | ||||
Debt Instrument, Carrying Amount | [2] | $ 1,750 | $ 1,750 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | |||||
Debt Instrument, Maturity Year Date | 2048 | 2048 | ||||
[1] | The three-month LIBOR rate as of December 31, 2019 was approximately 1.908%. | |||||
[2] | We may redeem these notes at our option pursuant to their terms. | |||||
[3] | Rockwell Collins debt which remained outstanding following the Rockwell Acquisition. | |||||
[4] | The three-month EURIBOR rate as of December 31, 2019 was approximately (0.383)%. 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. | |||||
[5] | (3) The net proceeds received from these debt issuances were used for general corporate purposes. | |||||
[6] | (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. | |||||
[7] | The three-month LIBOR rate as of December 31, 2019 was approximately 1.908%. | |||||
[8] | (2) The net proceeds from these debt issuances were used to fund the repayment of commercial paper and for other general corporate purposes. |
Borrowings and Lines of Credi_5
Borrowings and Lines of Credit Borrowings and Lines of Credit (LT Debt Narrative) (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | |||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | $ 11,000 | ||||
Debt Percentage Bearing Variable Interest Rate | 9.00% | 9.00% | 10.00% | ||
Average Years of Maturity of Long Term Debt | 10 years | 10 years | |||
Notes 3.350% due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | $ 1,000 | [1] | |||
Debt Instrument, Maturity Year Date | 2021 | 2021 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.35% | 3.35% | |||
Notes 3.650% Due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | $ 2,250 | [1] | |||
Debt Instrument, Maturity Year Date | 2023 | 2023 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.65% | 3.65% | |||
Notes 3.950% Due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | $ 1,500 | [1] | |||
Debt Instrument, Maturity Year Date | 2025 | 2025 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | 3.95% | |||
Notes 4.125% Due 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | $ 3,000 | [1] | |||
Debt Instrument, Maturity Year Date | 2028 | 2028 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | 4.125% | |||
Notes 4.450% Due 2038 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | $ 750 | [1] | |||
Debt Instrument, Maturity Year Date | 2038 | 2038 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.45% | 4.45% | |||
Notes 4.625% Due 2048 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | $ 1,750 | [2] | |||
Debt Instrument, Maturity Year Date | 2048 | 2048 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | |||
LIBOR plus 0.650% floating rate notes due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | $ 750 | [1] | |||
Debt Instrument, Maturity Year Date | 2021 | 2021 | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.65% | 0.65% | |||
Notes 1.150% Due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | € | € 750 | [3] | |||
Debt Instrument, Maturity Year Date | 2024 | 2024 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.15% | 1.15% | |||
Notes 2.150% Due 2030 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | € | € 500 | [3] | |||
Debt Instrument, Maturity Year Date | 2030 | 2030 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.15% | 2.15% | |||
EURIBOR plus 0.20% floating rate notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | € | € 750 | [3] | |||
Debt Instrument, Maturity Year Date | 2020 | 2020 | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.20% | 0.20% | |||
Notes 8.875% Due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of Debt, Date | Nov. 15, 2019 | Nov. 15, 2019 | |||
Repayments of Debt | $ 271 | ||||
Debt Instrument, Maturity Year Date | 2019 | 2019 | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.875% | 8.875% | |||
EURIBOR plus 0.15% floating rate notes due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of Debt, Date | Nov. 13, 2019 | Nov. 13, 2019 | |||
Repayments of Debt | € | € 750 | ||||
Debt Instrument, Maturity Year Date | 2019 | 2019 | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.15% | 0.15% | |||
LIBOR plus 0.350% floating rate notes due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of Debt | $ 350 | ||||
Debt Instrument, Maturity Year Date | Libor plus 0.350% floating rate notes due 2019 (3) | Libor plus 0.350% floating rate notes due 2019 (3) | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.35% | 0.35% | |||
Notes 1.500% Due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of Debt | $ 650 | ||||
Debt Instrument, Maturity Year Date | 2019 | 2019 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | |||
Notes 1.950% Due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of Debt | $ 300 | [4] | |||
Debt Instrument, Maturity Year Date | 2019 | 2019 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | 1.95% | |||
Notes 5.250% Due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of Debt | $ 300 | [4] | |||
Debt Instrument, Maturity Year Date | 2019 | 2019 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | |||
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 | [4] | |||
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 | ||||
[1] | (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] | (2) The net proceeds from these debt issuances were used to fund the repayment of commercial paper and for other general corporate purposes. | ||||
[3] | (3) The net proceeds received from these debt issuances were used for general corporate purposes. | ||||
[4] | These notes and term loan were assumed in connection with the Rockwell Collins acquisition and subsequently repaid. |
Summary of Changes in AOCI (Det
Summary of Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (10,149) | $ (9,333) | $ (7,525) |
Other comprehensive (loss) income, net - Foreign Currency Translation | 266 | (516) | 620 |
Amounts reclassified, pretax - Foreign Currency Translation | (2) | 2 | 10 |
Tax (benefit) expense reclassified - Foreign Currency Translation | 43 | 4 | |
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on foreign currency translation Arising During Period | 0 | ||
Other comprehensive (loss) income before reclassifications, net - Pension | (584) | (1,736) | |
Amounts reclassified, pretax - Pension | 228 | 344 | 529 |
Tax (benefit) expense reclassified - Pension | (97) | (326) | |
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on Defined Benefit Plan Arising During Period | 0 | ||
Other comprehensive (loss) income before reclassifications, net - AFS Securities | 0 | 0 | |
Amounts reclassified, pretax - AFS Securities | 0 | 0 | 566 |
Tax (benefit) expense reclassified - AFS Securities | 0 | 0 | |
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on Securities Arising During Period | 0 | (5) | 0 |
Other comprehensive (loss) income before reclassifications, net - Unrealized Hedging (Losses) Gains | (33) | (307) | |
Amounts reclassified, pretax - Unrealized Hedging (Losses) Gains | (51) | 16 | 39 |
Tax (benefit) expense reclassified - Unrealized Hedging (Losses) Gains | 11 | (78) | |
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on Derivatives Arising During Period | 0 | ||
Other comprehensive (loss) income before reclassifications, net | (337) | (2,529) | |
Amounts reclassified, pretax | (223) | (326) | |
Tax (benefit) expense reclassified | (43) | (400) | |
Reclassification from OCI, current period, ASU 2016-01 adoption impact | (5) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax [Abstract] | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 170 | ||
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) | 0 | 0 |
Other Comprehensive Income (Loss), ASU 2018-02 adoption impact on Securities Arising During Period | 0 | ||
Pension Plan [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified, pretax - Pension | 17 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax [Abstract] | |||
Net settlement and curtailment gain (loss) | 59 | (3) | (3) |
UNITED STATES | Pension Plan [Member] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax [Abstract] | |||
Net settlement and curtailment gain (loss) | 98 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (3,211) | (3,442) | (2,950) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (6,772) | (5,718) | (4,652) |
Accumulated Net Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 5 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (166) | (173) | $ 72 |
Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive (loss) income, net - Foreign Currency Translation | $ (280) | $ 486 |
Employee Benefit Plans (Employe
Employee Benefit Plans (Employee Savings Plans) (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan [Abstract] | |||
Contributions to employer sponsored defined contribution plans | $ 485 | $ 332 | $ 286 |
Employee Stock Ownership Plan (ESOP), Plan Description | Our non-union domestic employee savings plan uses an Employee Stock Ownership Plan (ESOP) for employer matching contributions. External borrowings were used by the ESOP to fund a portion of its purchase of ESOP stock from us. The external borrowings have been extinguished and only re-amortized loans remain between RTC and the ESOP Trust. As ESOP debt service payments are made, common stock is released from an unreleased shares account. ESOP debt may be prepaid or re-amortized to either increase or decrease the number of shares released so that the value of released shares equals the value of plan benefit. We may also, at our option, contribute additional common stock or cash to the ESOP. | ||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 23.4 | ||
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | 7.9 | ||
Employee Stock Ownership Plan (ESOP), Deferred Shares, Fair Value | $ 1,200 | ||
Contract with Customer, Liability, Revenue Recognized | 2,900 | ||
Research and Development Expense [Abstract] | |||
Research and development | 2,452 | 1,878 | 1,876 |
Selling, general and administrative | 3,711 | 2,864 | 2,387 |
Non-service pension cost (benefit) | (829) | (659) | (455) |
Net periodic pension and other postretirement benefit | $ (566) | (392) | $ (185) |
Equity Awards Vested and Expected to Vest, Remaining Term | 2 years 10 months 24 days | ||
Accounting Standards Update 2017-07 [Member] | |||
Research and Development Expense [Abstract] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | 455 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | 455 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | 0 | ||
Accounting Standards Update 2017-07 [Member] | Non-service pension benefit [Member] | |||
Research and Development Expense [Abstract] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | 455 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ 455 |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension and Postretirement Plans) (Details) - USD ($) $ in Millions | Nov. 26, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Other | $ (93) | $ 105 | $ (116) | |||
Beginning Balance, Plan Assets | 32,150 | |||||
Ending Balance, Plan Assets | 36,225 | 32,150 | ||||
Noncurrent liability | $ 2,487 | $ 3,050 | ||||
Payment for Pension Benefits | 55 | 79 | 2,044 | |||
Impact of change in estimation of NPPC | (566) | (392) | (185) | |||
Current year actuarial gain (loss) | (543) | (1,819) | 241 | |||
Current year prior service cost/credit | 6 | 22 | (2) | |||
Amortization of prior service credit | 228 | 344 | 529 | |||
Other Postretirement Benefits Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Beginning Balance, Benefit Obligation | 810 | 767 | ||||
Service Cost | 2 | 2 | 2 | |||
Interest cost | 31 | 26 | 29 | |||
Actuarial loss (gain) | (11) | (52) | ||||
Total benefits paid | 69 | 70 | ||||
Defined Benefit Plan, Benefit Obligation, Business Combination | 0 | 186 | ||||
Plan amendments | $ (43) | 0 | (43) | |||
Other | 2 | (6) | ||||
Ending Balance, Benefit Obligation | 765 | 810 | 767 | |||
Beginning Balance, Plan Assets | 20 | 0 | ||||
Employer Contributions | 69 | 69 | ||||
Benefits Paid | 69 | 70 | ||||
Defined Benefit Plan, Plan Assets, Business Combination | 0 | 20 | ||||
Other | 0 | 1 | ||||
Ending Balance, Plan Assets | 20 | 20 | 0 | |||
Benefit obligations | 810 | 810 | 767 | 765 | 810 | |
Funded status of plan | (745) | (790) | ||||
Current liability | 47 | 61 | ||||
Noncurrent liability | 698 | 729 | ||||
Net amount recognized | (745) | (790) | ||||
Net actuarial gain (loss) | 181 | 184 | ||||
Prior service credit | (4) | (47) | ||||
Net amount recognized | (185) | $ (231) | ||||
Expected return on plan assets | (1) | 0 | 0 | |||
Amortization of prior service credit | (42) | (6) | (1) | |||
Recognized actuarial net (gain) loss - in net periodic cost | (12) | (10) | (9) | |||
Impact of change in estimation of NPPC | (22) | $ 12 | $ 21 | |||
Current year actuarial gain (loss) | 10 | |||||
Amortization of actuarial loss (gain) | (12) | |||||
Amortization of prior service credit | (42) | |||||
Other | 2 | |||||
Total recognized in other comprehensive loss | 46 | |||||
Net recognized in net periodic pension cost and other comprehensive loss | $ 24 | |||||
Net actuarial (loss)/gain | 13 | |||||
Prior service credit | $ (3) | |||||
Discount rate, benefit obligation | 3.00% | 4.10% | ||||
Discount rate, net cost | 4.00% | 3.40% | 3.80% | |||
Health care cost trend rate assumed for next year | 6.50% | 7.00% | ||||
Rate that the cost trend rate gradually declines to | 5.00% | 5.00% | ||||
Year that the rate reaches the rate it is assumed to remain at | 2026 | 2026 | ||||
Expected return on plan assets, net cost | 7.00% | 7.00% | ||||
Effect on total service and interest cost - increase | $ 1 | |||||
Effect on postretirement benefit obligation - increase | 25 | |||||
Effect on total service and interest cost - decrease | 1 | |||||
Effect on postretirement benefit obligation - decrease | 22 | |||||
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Beginning Balance, Benefit Obligation | 34,344 | $ 33,283 | ||||
Service Cost | 261 | 265 | $ 268 | |||
Interest cost | 1,245 | 1,058 | 1,043 | |||
Actuarial loss (gain) | 4,247 | (1,938) | ||||
Total benefits paid | 2,016 | 1,783 | ||||
Net settlement, curtailment, and special termination benefits | 206 | 14 | ||||
Defined Benefit Plan, Benefit Obligation, Business Combination | (6) | 3,694 | ||||
Plan amendments | 0 | 56 | ||||
Other | 124 | (317) | ||||
Ending Balance, Benefit Obligation | 38,027 | 34,344 | 33,283 | |||
Beginning Balance, Plan Assets | 32,150 | 32,205 | ||||
Actual return on plan assets | 5,873 | (1,516) | ||||
Employer Contributions | 137 | 156 | ||||
Benefits Paid | 2,016 | 1,783 | ||||
Defined Benefit Plan, Plan Assets, Business Combination | 3,355 | |||||
Settlements | 17 | 16 | ||||
Other | 108 | (251) | ||||
Ending Balance, Plan Assets | 36,225 | 32,150 | 32,205 | |||
Benefit obligations | 38,027 | 33,283 | 33,283 | $ 38,027 | $ 34,344 | |
Funded status of plan | (1,802) | (2,194) | ||||
Noncurrent assets | 19 | 157 | ||||
Current liability | 51 | 56 | ||||
Noncurrent liability | 1,770 | 2,295 | ||||
Net amount recognized | (1,802) | (2,194) | ||||
Net actuarial gain (loss) | (8,160) | (7,948) | ||||
Prior service credit | 190 | 130 | ||||
Net amount recognized | 9,113 | $ 8,745 | ||||
Expected return on plan assets | 2,252 | 2,061 | 2,033 | |||
Amortization of prior service credit | 16 | (42) | (37) | |||
Recognized actuarial net (gain) loss - in net periodic cost | 245 | 373 | 550 | |||
Impact of change in estimation of NPPC | (544) | (404) | (206) | |||
Net settlement and curtailment gain (loss) | 59 | $ (3) | $ (3) | |||
Current year actuarial gain (loss) | (553) | |||||
Amortization of actuarial loss (gain) | 265 | |||||
Current year prior service cost/credit | 6 | |||||
Amortization of prior service credit | 17 | |||||
Net settlement and curtailment loss | 57 | |||||
Other | 34 | |||||
Total recognized in other comprehensive loss | 368 | |||||
Net recognized in net periodic pension cost and other comprehensive loss | $ (135) | |||||
Net actuarial (loss)/gain | (336) | |||||
Prior service credit | 49 | |||||
Total amount to be amortized from AOCI to NPPC | $ 385 | |||||
Salary scale, benefit obligation | 4.30% | 4.30% | ||||
Expected return on plan assets, benefit obligation | 0.00% | 0.00% | ||||
Salary scale, net cost | 4.30% | 4.30% | 4.30% | |||
Expected return on plan assets, net cost | 6.80% | 6.90% | 7.40% | |||
Fair value of plan assets | $ 36,120 | $ 22,558 | ||||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 37,943 | 27,225 | ||||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 37,600 | 26,752 | ||||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 36,122 | 24,873 | ||||
Defined Benefit Plan, Plan Assets, Divestiture | $ 10 | |||||
Pension Plan [Member] | Discontinued Operations [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service Cost | 34 | $ 40 | ||||
Net amount recognized | $ 763 | $ 667 | ||||
Current year actuarial gain (loss) | (119) | |||||
Amortization of actuarial loss (gain) | 20 | |||||
Current year prior service cost/credit | 6 | |||||
Amortization of prior service credit | 1 | |||||
Net settlement and curtailment loss | (5) | |||||
Other | (2) | |||||
Total recognized in other comprehensive loss | 97 | |||||
Net recognized in net periodic pension cost and other comprehensive loss | 97 | |||||
Pension Plan [Member] | Continuing operations [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Current year actuarial gain (loss) | (434) | |||||
Amortization of actuarial loss (gain) | 245 | |||||
Current year prior service cost/credit | 0 | |||||
Amortization of prior service credit | 16 | |||||
Net settlement and curtailment loss | 62 | |||||
Other | 36 | |||||
Total recognized in other comprehensive loss | 271 | |||||
Net recognized in net periodic pension cost and other comprehensive loss | (232) | |||||
Pension Plan [Member] | UNITED STATES | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Actuarial loss (gain) | (425) | |||||
Impact of change in estimation of NPPC | 39 | |||||
Net settlement and curtailment gain (loss) | $ 98 | |||||
PBO [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate, benefit obligation | 3.10% | 4.00% | ||||
Discount rate, net cost | 4.00% | 3.50% | 3.90% | |||
Interest cost [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate, benefit obligation | 0.00% | 0.00% | ||||
Discount rate, net cost | 3.70% | 3.10% | 3.30% | |||
Service cost [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate, benefit obligation | 0.00% | 0.00% | ||||
Discount rate, net cost | 3.70% | 3.40% | 3.80% | |||
Rockwell Collins [Member] | Other Postretirement Benefits Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, liability, pension projected benefit obligation | 186 | |||||
Business combination, recognized identifiable assets acquired and liabilities assumed, asset, pension plan assets | 20 | |||||
Rockwell Collins [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, liability, pension projected benefit obligation | 3,700 | |||||
Business combination, recognized identifiable assets acquired and liabilities assumed, asset, pension plan assets | $ 3,400 |
Employee Benefit Plans (Pensi_2
Employee Benefit Plans (Pension Plans) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 26, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 37,700 | $ 33,800 | ||
Payment for Pension Benefits | 55 | 79 | $ 2,044 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | (93) | 105 | (116) | |
Research and development | 2,452 | 1,878 | 1,876 | |
Selling, general and administrative | 3,711 | 2,864 | 2,387 | |
Other Income | 326 | 383 | 527 | |
Non-service pension cost (benefit) | (829) | (659) | (455) | |
Net periodic pension and other postretirement benefit | (566) | (392) | (185) | |
Net periodic pension and other postretirement benefit | (566) | (392) | (185) | |
Product [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cost of Goods and Services Sold | 26,910 | 21,083 | 16,385 | |
Service [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cost of Goods and Services Sold | 7,688 | 6,382 | 6,603 | |
Foreign Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Payment for Pension Benefits | 30 | $ 79 | ||
Domestic Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Payment for Pension Benefits | $ 25 | $ 1,900 | ||
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage Of Projected Benefit Obligation Comprised Of Domestic Plan Benefits | 82.00% | |||
Percentage Of Projected Benefit Obligation Comprised Of Foreign Plan Benefits | 17.00% | |||
Range Of Growth Seeking Assets In Company's Overall Investment Strategy | 45% to 50 | |||
Range Of Income Generating Assets In Company's Overall Investment Strategy | 50% to 55 | |||
Pecentage Of Interest Rate Sensitivity Of Pension Plan Liabilities Fixed Income Portfolio Designed To Hedge | 65% to 70 | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.80% | 6.90% | 7.40% | |
Defined Benefit Plan Common Stock Funded Percentage | 1.00% | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | $ 124 | $ (317) | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 100 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 2,249 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 2,059 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 2,087 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 2,107 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 2,123 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 10,645 | |||
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 37,941 | 24,796 | ||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 37,599 | 24,471 | ||
Actuarial loss (gain) | 4,247 | (1,938) | ||
Net settlement and curtailment gain (loss) | 59 | (3) | $ (3) | |
Net periodic pension and other postretirement benefit | (544) | (404) | (206) | |
Actuarial loss (gain) | 4,247 | (1,938) | ||
Net settlement and curtailment gain (loss) | 59 | (3) | (3) | |
Net periodic pension and other postretirement benefit | $ (544) | $ (404) | $ (206) | |
Pension Plan [Member] | Domestic Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.50% | 7.00% | ||
Pension Plan [Member] | UNITED STATES | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial loss (gain) | $ (425) | |||
Net settlement and curtailment gain (loss) | 98 | |||
Net periodic pension and other postretirement benefit | 39 | |||
Defined Benefit Plan Actuarial Gain | 180 | |||
Actuarial loss (gain) | (425) | |||
Net settlement and curtailment gain (loss) | 98 | |||
Net periodic pension and other postretirement benefit | 39 | |||
Pension Plan [Member] | UNITED STATES | Remeasurement loss [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial loss (gain) | (605) | |||
Actuarial loss (gain) | $ (605) | |||
Rockwell Collins [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, liability, pension projected benefit obligation | $ 3,700 | |||
Business combination, recognized identifiable assets acquired and liabilities assumed, asset, pension plan assets | $ 3,400 |
Employee Benefit Plans (Pensi_3
Employee Benefit Plans (Pension Plans) (Fair Value Tables) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | ||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | $ 32,150 | ||||
Ending Balance, Plan Assets | 36,225 | $ 32,150 | |||
Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 12,864 | ||||
Ending Balance, Plan Assets | 14,553 | 12,864 | |||
Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 4,970 | ||||
Ending Balance, Plan Assets | 4,880 | 4,970 | |||
Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 13,011 | ||||
Ending Balance, Plan Assets | 15,489 | 13,011 | |||
Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 1,538 | 1,492 | |||
Defined Benefit Plan, Plan Assets, Business Combination | 33 | ||||
Realized gains (losses) | (2) | 9 | |||
Unrealized gains (losses) relating to instruments still held in the reporting period | 59 | 40 | |||
Purchases, sales and settlements, net | 76 | (36) | |||
Ending Balance, Plan Assets | 1,671 | 1,538 | |||
Global Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 2,921 | ||||
Ending Balance, Plan Assets | 3,593 | 2,921 | |||
Global Equities [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Global Equities [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 2,917 | ||||
Ending Balance, Plan Assets | 3,588 | 2,917 | |||
Global Equities [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 4 | ||||
Ending Balance, Plan Assets | 5 | 4 | |||
Global Equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Global Equity Commingled Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [1] | 404 | |||
Ending Balance, Plan Assets | [1] | 1,496 | 404 | ||
Global Equity Commingled Funds [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [1] | 0 | |||
Ending Balance, Plan Assets | [1] | 0 | 0 | ||
Global Equity Commingled Funds [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [1] | 185 | |||
Ending Balance, Plan Assets | 0 | 185 | [1] | ||
Global Equity Commingled Funds [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [1] | 219 | |||
Ending Balance, Plan Assets | [1] | 1,496 | 219 | ||
Global Equity Commingled Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [1] | 0 | |||
Ending Balance, Plan Assets | [1] | 0 | 0 | ||
Enhanced Global Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [2] | 684 | |||
Ending Balance, Plan Assets | [2] | 715 | 684 | ||
Enhanced Global Equities [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [2] | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | [2] | ||
Enhanced Global Equities [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [2] | 79 | |||
Ending Balance, Plan Assets | [2] | 322 | 79 | ||
Enhanced Global Equities [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [2] | 605 | |||
Ending Balance, Plan Assets | [2] | 393 | 605 | ||
Enhanced Global Equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [2] | 0 | |||
Ending Balance, Plan Assets | [2] | 0 | 0 | ||
Global Equity Funds at net asset value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 6,539 | |||
Ending Balance, Plan Assets | [3] | 5,332 | 6,539 | ||
Global Equity Funds at net asset value [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 6,539 | |||
Ending Balance, Plan Assets | [3] | 5,332 | 6,539 | ||
Global Equity Funds at net asset value [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 0 | |||
Ending Balance, Plan Assets | [3] | 0 | 0 | ||
Global Equity Funds at net asset value [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 0 | |||
Ending Balance, Plan Assets | [3] | 0 | 0 | ||
Global Equity Funds at net asset value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 0 | |||
Ending Balance, Plan Assets | [3] | 0 | 0 | ||
Private Equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 1,327 | ||||
Ending Balance, Plan Assets | 1,432 | [3],[4] | 1,327 | ||
Private Equities | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[4] | 1,194 | |||
Ending Balance, Plan Assets | [3],[4] | 1,230 | 1,194 | ||
Private Equities | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[4] | 0 | |||
Ending Balance, Plan Assets | [3],[4] | 0 | 0 | ||
Private Equities | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[4] | 0 | |||
Ending Balance, Plan Assets | [3],[4] | 0 | 0 | ||
Private Equities | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 133 | [3],[4] | 46 | ||
Defined Benefit Plan, Plan Assets, Business Combination | 0 | ||||
Realized gains (losses) | 0 | 0 | |||
Unrealized gains (losses) relating to instruments still held in the reporting period | 32 | 0 | |||
Purchases, sales and settlements, net | 37 | 87 | |||
Ending Balance, Plan Assets | 202 | 133 | [3],[4] | ||
Governments [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 1,951 | ||||
Ending Balance, Plan Assets | 1,085 | 1,951 | |||
Governments [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Governments [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 1,789 | ||||
Ending Balance, Plan Assets | 969 | 1,789 | |||
Governments [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 162 | ||||
Ending Balance, Plan Assets | 116 | 162 | |||
Governments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Corporate Bonds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 11,573 | ||||
Ending Balance, Plan Assets | 13,065 | 11,573 | |||
Corporate Bonds [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 29 | ||||
Ending Balance, Plan Assets | 0 | 29 | |||
Corporate Bonds [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 1 | 0 | |||
Corporate Bonds [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 11,526 | ||||
Ending Balance, Plan Assets | 13,059 | 11,526 | |||
Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 18 | 0 | |||
Defined Benefit Plan, Plan Assets, Business Combination | 33 | ||||
Realized gains (losses) | 0 | (1) | |||
Unrealized gains (losses) relating to instruments still held in the reporting period | 0 | 2 | |||
Purchases, sales and settlements, net | (13) | (16) | |||
Ending Balance, Plan Assets | 5 | 18 | |||
Fixed Income Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 2,225 | |||
Ending Balance, Plan Assets | [3] | 4,755 | 2,225 | ||
Fixed Income Securities [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 2,225 | |||
Ending Balance, Plan Assets | [3] | 4,755 | 2,225 | ||
Fixed Income Securities [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 0 | |||
Ending Balance, Plan Assets | [3] | 0 | 0 | ||
Fixed Income Securities [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 0 | |||
Ending Balance, Plan Assets | [3] | 0 | 0 | ||
Fixed Income Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 0 | |||
Ending Balance, Plan Assets | [3] | 0 | 0 | ||
Real Estate [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 1,809 | ||||
Ending Balance, Plan Assets | 1,843 | [3],[5] | 1,809 | ||
Real Estate [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[5] | 409 | |||
Ending Balance, Plan Assets | [3],[5] | 366 | 409 | ||
Real Estate [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[5] | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | [3],[5] | ||
Real Estate [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[5] | 13 | |||
Ending Balance, Plan Assets | 13 | 13 | [3],[5] | ||
Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 1,387 | [3],[5] | 1,446 | ||
Defined Benefit Plan, Plan Assets, Business Combination | 0 | ||||
Realized gains (losses) | (2) | 10 | |||
Unrealized gains (losses) relating to instruments still held in the reporting period | 27 | 38 | |||
Purchases, sales and settlements, net | 52 | (107) | |||
Ending Balance, Plan Assets | [3],[5] | 1,464 | 1,387 | ||
Other [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[6] | 2,630 | |||
Ending Balance, Plan Assets | [3],[6] | 3,177 | 2,630 | ||
Other [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[6] | 2,368 | |||
Ending Balance, Plan Assets | [3],[6] | 2,834 | 2,368 | ||
Other [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Other [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[6] | 262 | |||
Ending Balance, Plan Assets | [3],[6] | 343 | 262 | ||
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[6] | 0 | |||
Ending Balance, Plan Assets | [3],[6] | 0 | 0 | ||
Cash & Cash Equivalents [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[7] | 320 | |||
Ending Balance, Plan Assets | [3],[7] | 83 | 320 | ||
Cash & Cash Equivalents [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[7] | 100 | |||
Ending Balance, Plan Assets | [3],[7] | 36 | 100 | ||
Cash & Cash Equivalents [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Cash & Cash Equivalents [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[7] | 220 | |||
Ending Balance, Plan Assets | [3],[7] | 47 | 220 | ||
Cash & Cash Equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[7] | 0 | |||
Ending Balance, Plan Assets | [3],[7] | 0 | 0 | ||
Subtotal [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 32,383 | ||||
Ending Balance, Plan Assets | 36,593 | 32,383 | |||
Other Assets & Liabilities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [8] | (233) | |||
Ending Balance, Plan Assets | (368) | $ (233) | [8] | ||
Structured Products | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Ending Balance, Plan Assets | 17 | ||||
Structured Products | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Ending Balance, Plan Assets | 0 | ||||
Structured Products | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Ending Balance, Plan Assets | 0 | ||||
Structured Products | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Ending Balance, Plan Assets | 17 | ||||
Structured Products | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Ending Balance, Plan Assets | $ 0 | ||||
[1] | Represents commingled funds that invest primarily in common stocks. | ||||
[2] | Represents enhanced equity separate account and commingled fund portfolios. A portion of the portfolio may include long-short market neutral and relative value strategies that invest in publicly traded, equity and fixed income securities, as well as derivatives of equity and fixed income securities and foreign currency. | ||||
[3] | In accordance with ASU 2015-07, Fair Value Measurement (Topic 820) , certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets. | ||||
[4] | Represents limited partner investments with general partners that primarily invest in debt and equity. | ||||
[5] | Represents investments in real estate including commingled funds and directly held properties. | ||||
[6] | Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities. | ||||
[7] | Represents short-term commercial paper, bonds and other cash or cash-like instruments. | ||||
[8] | Represents trust receivables and payables that are not leveled. |
Employee Benefit Plans (Postret
Employee Benefit Plans (Postretirement Benefit Plans) (Narrative) (Details) - Other Postretirement Benefits Plan [Member] $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage Of Projected Benefit Obligation Comprised Of Domestic Plan Benefits | 84.00% |
Future Amortization of Gain | $ 13 |
Future amortization of prior service credit | (3) |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 67 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 64 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 60 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 56 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 53 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 210 |
Employee Benefit Plans (Stock B
Employee Benefit Plans (Stock Based Compensation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost of Share Based Payments | $ 268 | $ 169 | $ 129 | |
Equity Awards Vested and Expected to Vest, Remaining Term | 2 years 10 months 24 days | |||
Expected Volatility | 19.00% | |||
Expected Volatility, Minimum | 18.80% | 17.50% | ||
Expected Volatility, Maximum | 19.70% | 21.10% | ||
Expected term (in years) | 6 years 6 months | |||
Weighted-average volatility | 20.00% | 18.00% | 19.00% | |
Expected dividend yield | 2.40% | 2.20% | 2.40% | |
Risk-free rate, minimum | 2.30% | 1.30% | 0.50% | |
Risk-free rate, maximum | 2.70% | 2.70% | 2.50% | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 184,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 42,000 | |||
Expected Range Of Shares Awarded Annually Under Long Term Incentive Plan | 1.0% to 1.5% | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 6 months | 6 years 6 months | ||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 7 months 6 days | 6 years 7 months 6 days | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period Start, Shares | 1,603 | |||
Granted, Shares | 339 | |||
Exercised/earned, Shares | 317 | |||
Cancelled, Shares | 57 | |||
Period End, Shares | 1,568 | 1,603 | ||
Period Start, Average Price | [1] | $ 99.89 | ||
Granted, Average Price | [1] | 124.72 | ||
Exercised/Earned, Average Price | [1] | 88.61 | ||
Cancelled, Average Price | [1] | 121.69 | ||
Period End, Average Price | [1] | $ 106.75 | $ 99.89 | |
Share-based Compensation Arrangement by Share-based Payment Award, Ancillary | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Ancillary, Average Price | $ 0 | |||
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period Start, Shares | 32,066 | |||
Granted, Shares | 8,081 | |||
Exercised/earned, Shares | 6,843 | |||
Cancelled, Shares | 591 | |||
Period End, Shares | 32,713 | 32,066 | ||
Period Start, Average Price | [1] | $ 99.95 | ||
Granted, Average Price | [1] | 123.54 | ||
Exercised/Earned, Average Price | [1] | 84.44 | ||
Cancelled, Average Price | [1] | 122.76 | ||
Period End, Average Price | [1] | $ 108.61 | $ 99.95 | |
Share-based Compensation Arrangement by Share-based Payment Award, Ancillary | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Ancillary, Average Price | $ 0 | |||
Performance Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period Start, Shares | 1,806 | |||
Granted, Shares | 839 | |||
Exercised/earned, Shares | 758 | |||
Cancelled, Shares | 69 | |||
Period End, Shares | 1,919 | 1,806 | ||
Period Start, Average Price | [2] | $ 110.41 | ||
Granted, Average Price | [2] | 121.22 | ||
Exercised/Earned, Average Price | [2] | 95.28 | ||
Cancelled, Average Price | [2] | 118.21 | ||
Period End, Average Price | [2] | $ 120.04 | $ 110.41 | |
Share-based Compensation Arrangement by Share-based Payment Award, Ancillary | 101 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Ancillary, Average Price | $ 95.28 | |||
Other Incentive Shares/Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period Start, Shares | 3,047 | |||
Granted, Shares | 1,223 | |||
Exercised/earned, Shares | 816 | |||
Cancelled, Shares | 135 | |||
Period End, Shares | 3,319 | 3,047 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Ancillary | 0 | |||
Stock Options/Stock Appreciation Rights SARS [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Awards Vested and Expected to Vest, Awards | 33,769 | |||
Equity Awards Vested and Expected to Vest, Average Price | [3] | $ 107.58 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 1,424 | |||
Equity Awards Vested and Expected to Vest, Remaining Term | 5 years 10 months 24 days | |||
Equity Awards That Are Exercisable, Awards | 19,285 | |||
Equity Awards That Are Exercisable, Average Price | [3] | $ 96.56 | ||
Equity Awards That Are Exercisable, Aggregate Intrinsic Value | $ 1,026 | |||
Equity Awards That Are Exercisable, Remaining Term | 4 years | |||
Performance Share Units/Other Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Awards Vested and Expected to Vest, Awards | 5,514 | |||
Equity Awards Vested and Expected to Vest, Average Price | [3] | $ 0 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 826 | |||
Equity Awards Vested and Expected to Vest, Remaining Term | 2 years 1 month 6 days | |||
[1] | eighted-average grant / exercise price. | |||
[2] | ncillary shares earned based on actual performance achieved on the 2016 award. | |||
[3] | eighted-average exercise price per share. |
Employee Benefit Plans (Stock_2
Employee Benefit Plans (Stock Based Compensation) (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Volatility, Minimum | 18.80% | 17.50% | |
Equity Awards Vested and Expected to Vest, Remaining Term | 2 years 10 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 184,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 42,000 | ||
Expected Range Of Shares Awarded Annually Under Long Term Incentive Plan | 1.0% to 1.5% | ||
Share-based Payment Arrangement, Expense, Tax Benefit | $ 47 | $ 31 | $ 28 |
Proceeds from Stock Options Exercised | 27 | 36 | 29 |
Share-based Payment Arrangement, Exercise of Option, Tax Benefit | 75 | 59 | 100 |
Employee Service Share Based Compensation Tax Benefit Realized From Vesting Of Performance Share Units | 36 | 13 | 12 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 291 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Vested In Period Total Fair Value | $ 211 | $ 149 | $ 138 |
Stock Options/Stock Appreciation Rights SARS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Awards Vested and Expected to Vest, Awards | 33,769 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 1,424 | ||
Equity Awards Vested and Expected to Vest, Remaining Term | 5 years 10 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 20.81 | $ 20.24 | $ 17.22 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 383 | $ 283 | $ 320 |
Performance Share Units/Other Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Awards Vested and Expected to Vest, Awards | 5,514 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 826 | ||
Equity Awards Vested and Expected to Vest, Remaining Term | 2 years 1 month 6 days | ||
Share Based Compensation Arrangement By Share Based Payment Award Options and Other Restricted Awards Exercised In Period Total Intrinsic Value | $ 188 | $ 74 | $ 49 |
Performance Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 117.87 | $ 131.55 | $ 111 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Income, United States | $ 1,594 | $ 635 | $ 607 |
Income, Foreign | 2,558 | 1,869 | 1,915 |
Income from continuing operations before income taxes | 4,152 | 2,504 | 2,522 |
Undistributed Earnings of Foreign Subsidiaries | 21,000 | ||
Current Tax Provision, Federal | (100) | (68) | 709 |
Current Tax Provision, State | (58) | 1 | (42) |
Current Tax Provision, Foreign | 541 | 402 | 284 |
Current Income Tax Expense Benefit | 383 | 335 | 951 |
Future Tax Provision, Federal | 121 | 45 | (48) |
Future Tax Provision, State | 56 | 58 | 85 |
Future Tax Provision, Foreign | (139) | 660 | 66 |
Deferred income tax provision | 38 | 763 | 103 |
Income tax expense | 421 | 1,098 | 1,054 |
Attributable to items credited (charged) to equity and goodwill | $ 40 | $ 501 | $ (128) |
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 35.00% |
Tax on international activities | (3.10%) | (5.10%) | (15.30%) |
Tax audit settlements | (7.00%) | 0.00% | (2.20%) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.00% | 29.70% | 27.40% |
Other | (0.80%) | (1.80%) | (3.10%) |
Effective income tax rate | 10.10% | 43.80% | 41.80% |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ 290 | ||
Discontinued Operations [Member] | |||
Income Tax Contingency [Line Items] | |||
Deferred Tax Assets, Net | $ 442 | $ 393 | |
US TCJA Tax Law Change [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax Adjustments Settlements And Unusual Provisions | $ 744 | $ 690 |
Income Taxes (Tax Carryforwards
Income Taxes (Tax Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Tax Credit Carryforward [Line Items] | ||
Insurance and employee benefits | $ 1,205 | $ 1,154 |
Other asset basis differences | 829 | 1,013 |
Other liability basis differences | 2,153 | 1,482 |
Tax loss carryforwards | 622 | 583 |
Tax credit carryforwards | 1,021 | 1,050 |
Valuation allowances | 616 | 605 |
Future Income Tax Benefits | 5,214 | 4,677 |
Deferred Tax Liabilities Intangible Assets | 4,293 | 4,462 |
Other Asset Basis Differences | 2,904 | 2,159 |
Other items, net | 143 | 123 |
Future Income Taxes Payable | 7,340 | $ 6,744 |
Tax Credit Carryforwards | 1,021 | |
Tax Loss Carryforwards | 3,184 | |
Expiration Period Current To Five Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforwards | 59 | |
Tax Loss Carryforwards | 393 | |
Expiration Period Six To Ten Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforwards | 27 | |
Tax Loss Carryforwards | 179 | |
Expiration Period Eleven To Twenty Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforwards | 336 | |
Tax Loss Carryforwards | 394 | |
Expiration Period Indefinite [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforwards | 599 | |
Tax Loss Carryforwards | $ 2,218 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 1,338 | ||
Balance at January 1 | 1,619 | $ 1,189 | $ 1,086 |
Additions for tax positions related to the current year | 131 | 192 | 192 |
Additions for tax positions of prior years | 73 | 344 | 73 |
Reductions for tax positions of prior years | 101 | 91 | 91 |
Settlements | 375 | 15 | 71 |
Balance at December 31 | 1,347 | 1,619 | 1,189 |
Gross interest expense related to unrecognized tax benefits | 57 | 37 | 34 |
Total accrued interest balance at December 31 | 249 | 255 | 215 |
Discontinued Operations [Member] | |||
Income Tax Examination [Line Items] | |||
Deferred Tax Assets, Net | 442 | $ 393 | |
Minimum [Member] | |||
Income Tax Examination [Line Items] | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 50 | ||
Maximum [Member] | |||
Income Tax Examination [Line Items] | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 650 | ||
IRS audit of 2014, 2015 and 2016 tax years | |||
Income Tax Examination [Line Items] | |||
Tax Settlement Gain (Loss) Noncash | 307 | ||
IRS audit of 2014, Rockwell Collins subsidiary | |||
Income Tax Examination [Line Items] | |||
Tax Settlement Gain (Loss) Noncash | 40 | ||
Reversal of indemnity asset | |||
Income Tax Examination [Line Items] | |||
Tax Settlement Gain (Loss) Noncash | (23) | ||
Various federal, state and non-US statute of limitations expirations and settlements [Member] | |||
Income Tax Examination [Line Items] | |||
Tax Settlement Gain (Loss) Noncash | 18 | ||
Closure of IRS audit of UTC Tax Year 2013 [Member] | |||
Income Tax Examination [Line Items] | |||
Tax Settlement Gain (Loss) Noncash | 64 | ||
Tax Settlement Interest Gain (Loss) Noncash | $ 9 | ||
Interest Income [Member] | IRS audit of 2014, Rockwell Collins subsidiary | |||
Income Tax Examination [Line Items] | |||
Tax Settlement Gain (Loss) Noncash | 56 | ||
Interest Income [Member] | Various federal, state and non-US statute of limitations expirations and settlements [Member] | |||
Income Tax Examination [Line Items] | |||
Tax Settlement Gain (Loss) Noncash | $ 5 |
Restructuring and Other Costs_2
Restructuring and Other Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | $ 245 | |
Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 177 | |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 64 | |
Non-service pension (benefit) [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 4 | |
Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 162 | |
Utilization and foreign exchange | (104) | |
Restructuring Reserve | 58 | |
Expected Costs | 255 | |
Restructuring cost incurred | (162) | |
Remaining Costs | 93 | |
Current Year Actions [Member] | Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 122 | |
Current Year Actions [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 40 | |
Current Year Actions [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 151 | |
Utilization and foreign exchange | (104) | |
Restructuring Reserve | 47 | |
Current Year Actions [Member] | Facility Exit, Lease Termination and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 11 | |
Utilization and foreign exchange | 0 | |
Restructuring Reserve | 11 | |
Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 23 | |
Utilization and foreign exchange | (98) | |
Restructuring Reserve | 7 | $ 82 |
Expected Costs | 121 | |
Restructuring cost incurred | (23) | (95) |
Remaining Costs | 3 | |
Prior Year Actions [Member] | Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 12 | |
Prior Year Actions [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 11 | |
Prior Year Actions [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 22 | |
Utilization and foreign exchange | (76) | |
Restructuring Reserve | 6 | 60 |
Prior Year Actions [Member] | Facility Exit, Lease Termination and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 1 | |
Utilization and foreign exchange | (22) | |
Restructuring Reserve | 1 | 22 |
Two Years Prior Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 60 | |
Restructuring Reserve | 59 | |
Pratt and Whitney [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 133 | |
Pratt and Whitney [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 133 | |
Restructuring cost incurred | (133) | |
Remaining Costs | 0 | |
Pratt and Whitney [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 3 | |
Restructuring cost incurred | 0 | (3) |
Remaining Costs | 0 | |
Collins Aerospace Systems [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 106 | |
Collins Aerospace Systems [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 120 | |
Restructuring cost incurred | (27) | |
Remaining Costs | 93 | |
Collins Aerospace Systems [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 111 | |
Restructuring cost incurred | (23) | (87) |
Remaining Costs | 1 | |
Eliminations and other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 6 | |
Eliminations and other [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 2 | |
Restructuring cost incurred | (2) | |
Remaining Costs | 0 | |
Eliminations and other [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 7 | |
Restructuring cost incurred | 0 | $ (5) |
Remaining Costs | $ 2 |
Financial Instruments (Details)
Financial Instruments (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019EUR (€) | |
Derivatives, Fair Value [Line Items] | |||
Four Quarter Rolling Average Of Notional Amount Of Foreign Exchange Contracts Hedging Foreign Currency Transactions | $ 17,800 | $ 20,100 | |
Gain (loss) recorded in Accumulated other comprehensive loss | (33) | (307) | |
(Gain) loss reclassified from Accumulated other comprehensive loss into Product sales (effective portion) | $ 51 | (16) | |
Description of Net Investment Hedge Activity | We have approximately €4.2 billion of euro-denominated long-term debt, which qualifies as a net investment hedge against our investments in European businesses. As of December 31, 2019, the net investment hedge is deemed to be effective. | ||
Long-term debt, euro-denominated | € | € 4,200 | ||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ (33) | ||
Gain recognized in Other income, net | $ 91 | 127 | |
Maximum Length of Time, Foreign Currency Cash Flow Hedge | 4 years 20 days | ||
Other Current Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives designated as hedging instruments - assets | $ 23 | 22 | |
Derivatives not designated as hedging instruments - assets | 23 | 27 | |
Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives designated as hedging instruments - liabilities | (166) | (194) | |
Derivatives not designated as hedging instruments - liabilities | $ (116) | $ (89) |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 53 | $ 48 |
Derivative Assets | 46 | 49 |
Derivative liabilities | 282 | 283 |
Level 1 | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 53 | 48 |
Derivative Assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Derivative Assets | 46 | 49 |
Derivative liabilities | 282 | 283 |
Level 3 | Fair Value [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 (Fair_2
Fair Value Measurements (Fair Value Techniques) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term Debt | $ 2,293 | $ 1,428 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer Financing Notes Receivable | 220 | 226 |
Short-term Debt | 2,293 | 1,428 |
Long-term debt (excluding capitalized leases) | 40,883 | 43,703 |
Long-term liabilities | 334 | 505 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer Financing Notes Receivable | 220 | 219 |
Short-term Debt | 2,293 | 1,428 |
Long-term debt (excluding capitalized leases) | 45,887 | 43,710 |
Long-term liabilities | 320 | 464 |
Level 1 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer Financing Notes Receivable | 0 | 0 |
Short-term Debt | 0 | 0 |
Long-term debt (excluding capitalized leases) | 0 | 0 |
Long-term liabilities | 0 | 0 |
Level 2 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer Financing Notes Receivable | 220 | 219 |
Short-term Debt | 0 | 1,258 |
Long-term debt (excluding capitalized leases) | 45,802 | 43,620 |
Long-term liabilities | 320 | 464 |
Level 3 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer Financing Notes Receivable | 0 | 0 |
Short-term Debt | 2,293 | 170 |
Long-term debt (excluding capitalized leases) | 85 | 90 |
Long-term liabilities | $ 0 | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets, Total | $ 6,342 | $ 6,332 |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities, Total | 7,065 | 6,844 |
Current Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets, Total | 5,448 | 5,622 |
Noncurrent Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Assets, Total | 894 | 710 |
Current Liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities, Total | 6,971 | 6,742 |
Noncurrent Liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities, Total | $ 94 | $ 102 |
International Aero Engines AG [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Methodology | Pratt & Whitney holds a 61% program share 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 engine program through involvement with the collaborators. | |
Noncurrent assets | 49.50% | |
International Aero Engines LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Methodology | 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% program share 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. | |
Noncurrent assets | 59.00% |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Guarantee Obligations [Line Items] | ||||
Environmental, health and safety, tax and employment matters | $ 166 | $ 175 | ||
Balance as of January 1 | 929 | [1] | 591 | |
Warranties and performance guarantees issued | 421 | |||
Settlements made | 330 | 284 | ||
Other | (10) | 201 | ||
Balance as of December 31 | 1,033 | 929 | [1] | |
Standard Product Warranty Accrual, Increase for Warranties Issued | 444 | |||
Commercial aerospace financing arrangements (see Note 5) | ||||
Guarantee Obligations [Line Items] | ||||
Maximum Potential Payment | 333 | 348 | ||
Carrying Amount of Liability | 7 | 9 | ||
Credit Facilities And Debt Obligations (expire 2019 to 2028) | ||||
Guarantee Obligations [Line Items] | ||||
Maximum Potential Payment | 0 | 15 | ||
Carrying Amount of Liability | 0 | 0 | ||
Performance Guarantees | ||||
Guarantee Obligations [Line Items] | ||||
Maximum Potential Payment | 48 | 55 | ||
Carrying Amount of Liability | $ 0 | $ 5 | ||
[1] | 1) |
Contingent Liabilities (Details
Contingent Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual For Environmental Loss Contingencies | $ 725 | $ 662 |
U.S. Defense Contract Management Agency Claim Against Pratt & Whitney [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency Damages Sought | 177 million | |
U.S. Defense Contract Management Claim against Pratt & Whitney | ||
Loss Contingencies [Line Items] | ||
Loss Contingency Lawsuit Filing Date | December 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 $98.4 million through December 31, 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. | |
Loss Contingency Actions Taken By Defendant | 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 $56.2 million through December 31, 2019), which we also believe is without merit and which Pratt & Whitney appealed to the ASBCA in January 2019. | |
Loss Contingency, Interest | 98.4 million | |
U.S. Defense Contract Management Second Claim against Pratt and Whitney [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency Lawsuit Filing Date | December 2018 | |
Loss Contingency, Interest | 56.2 million | |
Loss Contingency Damages Sought | 269 million |
Segment Financial Data (By Segm
Segment Financial Data (By Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 11,694 | $ 11,373 | $ 11,329 | $ 10,953 | $ 10,121 | $ 8,412 | $ 8,333 | $ 7,836 | $ 45,349 | $ 34,701 | $ 29,713 |
Operating Income (Loss) | 4,914 | 2,877 | 2,989 | ||||||||
Total Assets | 139,615 | 134,211 | 139,615 | 134,211 | 96,920 | ||||||
Capital Expenditures | 1,868 | 1,467 | 1,556 | ||||||||
Depreciation & Amortization | 2,708 | 1,896 | 1,580 | ||||||||
Major Customers, U.S. Government Sales | 10,428 | 7,278 | 5,658 | ||||||||
Major Customers, Airbus Sales | $ 9,879 | 10,025 | 8,908 | ||||||||
Segment Financial Data | SEGMENT FINANCIAL DATA Our operations for the periods presented herein are classified into two principal segments. The segments are generally determined 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. Pratt & Whitney products include commercial, military, business jet and general aviation aircraft engines, parts and services sold to a diversified customer base, including international and domestic commercial airlines and aircraft leasing companies, aircraft manufacturers, and U.S. and foreign governments. Pratt & Whitney also provides product support and a full range of overhaul, repair and fleet management services. Collins Aerospace Systems provides technologically advanced aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military and space operations. Products include electric power generation, power management and distribution systems, air data and aircraft sensing systems, engine control systems, intelligence, surveillance and reconnaissance systems, engine components, environmental control systems, fire and ice detection and protection systems, propeller systems, engine nacelle systems, including thrust reversers and mounting pylons, interior and exterior aircraft lighting, aircraft seating and cargo systems, actuation systems, landing systems, including landing gear, wheels and brakes, and space products and subsystems, integrated avionics systems, precision targeting, electronic warfare and range and training systems, flight controls, communications systems, navigation systems, oxygen systems, simulation and training systems, food and beverage preparation, storage and galley systems, lavatory and wastewater management systems. Aftermarket services include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and information management services. We have reported our financial and operational results for the periods presented herein under the two principal segments noted above, consistent with how we have reviewed our business operations for decision-making purposes, resource allocation and performance assessment during 2019. Segment Information. Total sales by segment include intersegment sales, which are generally made at prices approximating those that the selling entity is able to obtain on external sales. Segment information for the years ended December 31 is as follows: Net Sales Operating Profits (dollars in millions) 2019 2018 2017 2019 2018 2017 Pratt & Whitney 20,892 19,397 16,160 1,668 1,269 1,300 Collins Aerospace Systems 26,028 16,634 14,691 4,100 2,303 2,191 Total segment 46,920 36,031 30,851 5,768 3,572 3,491 Eliminations and other (1,571) (1,330) (1,138) (339) (220) (63) General corporate expenses — — — (515) (475) (439) Consolidated $ 45,349 $ 34,701 $ 29,713 $ 4,914 $ 2,877 $ 2,989 Total Assets Capital Expenditures Depreciation & Amortization (dollars in millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Pratt & Whitney 31,271 29,341 26,768 822 866 923 980 852 672 Collins Aerospace Systems 74,049 73,115 34,567 959 515 527 1,749 883 823 Total segment 105,320 102,456 61,335 1,781 1,381 1,450 2,729 1,735 1,495 Eliminations and other 2,472 1,015 4,659 87 86 106 (21) 161 85 Assets related to discontinued operations $ 31,823 $ 30,740 $ 30,926 Consolidated $ 139,615 $ 134,211 $ 96,920 $ 1,868 $ 1,467 $ 1,556 $ 2,708 $ 1,896 $ 1,580 Geographic External Sales and Operating Profit. Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. U.S. external sales include export sales to commercial customers outside the U.S. and sales to the U.S. Government, commercial and affiliated customers, which are known to be for resale to customers outside the U.S. Long-lived assets are net fixed assets attributed to the specific geographic regions. External Net Sales Operating Profits Long-Lived Assets (dollars in millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 United States Operations $ 35,125 $ 26,646 $ 21,975 $ 3,287 $ 1,790 $ 1,603 $ 6,507 $ 6,165 $ 4,424 International Operations Europe 4,419 3,092 2,747 1,480 1,027 826 1,268 1,272 1,147 Asia Pacific 1,989 1,645 1,779 444 365 351 917 905 685 Other 5,387 4,648 4,350 557 390 711 1,089 1,064 1,082 Eliminations and other (1,571) (1,330) (1,138) (854) (695) (502) 541 500 469 Consolidated $ 45,349 $ 34,701 $ 29,713 $ 4,914 $ 2,877 $ 2,989 $ 10,322 $ 9,906 $ 7,807 Sales from U.S. operations include export sales as follows: (dollars in millions) 2019 2018 2017 Europe $ 7,078 $ 6,217 $ 5,197 Asia Pacific 6,411 5,355 3,526 Other 3,295 1,966 1,675 Total $ 16,784 $ 13,538 $ 10,398 Sales by primary geographical market for the year ended December 31, 2019 is as follows: (dollars in millions) Pratt & Whitney Collins Aerospace Systems Total Primary Geographical Markets United States $ 16,148 $ 18,977 $ 35,125 Europe 498 3,921 4,419 Asia Pacific 1,164 825 1,989 Other* 3,082 2,305 5,387 Total segment $ 20,892 $ 26,028 $ 46,920 Eliminations and other (1,571) Consolidated $ 45,349 Sales by primary geographical market for the year ended December 31, 2018 is as follows: (dollars in millions) Pratt & Whitney Collins Aerospace Systems Total Primary Geographical Markets United States $ 14,852 $ 11,794 $ 26,646 Europe 594 2,498 3,092 Asia Pacific 1,277 368 1,645 Other (1) 2,674 1,974 4,648 Total segment $ 19,397 $ 16,634 $ 36,031 Eliminations and other (1,330) Consolidated $ 34,701 (1) Other includes sales to other regions as well as intersegment sales. Segment sales disaggregated by product type and product versus service for the year ended December 31, 2019 are as follows: (dollars in millions) Pratt & Whitney Collins Aerospace Systems Total Product Type Commercial and industrial, non aerospace $ 102 $ 51 $ 153 Commercial aerospace 14,516 19,005 33,521 Military aerospace 6,274 6,972 13,246 Total segment $ 20,892 $ 26,028 $ 46,920 Eliminations and other (1,571) Consolidated $ 45,349 Sales Type Product $ 12,977 $ 21,440 $ 34,417 Service 7,915 4,588 12,503 Total segment $ 20,892 $ 26,028 $ 46,920 Eliminations and other (1,571) Consolidated $ 45,349 Segment sales disaggregated by product type and product versus service for the year ended December 31, 2018 are as follows: (dollars in millions) Pratt & Whitney Collins Aerospace Systems Total Product Type Commercial and industrial, non aerospace $ 55 $ 60 $ 115 Commercial aerospace 14,027 12,564 26,591 Military aerospace 5,315 4,010 9,325 Total segment $ 19,397 $ 16,634 $ 36,031 Eliminations and other (1,330) Consolidated $ 34,701 Sales Type Product $ 11,410 $ 13,915 $ 25,325 Service 7,987 2,719 10,706 Total segment $ 19,397 $ 16,634 $ 36,031 Eliminations and other (1,330) Consolidated $ 34,701 Major Customers. Net Sales include sales under prime contracts and subcontracts to the U.S. Government as follows: (dollars in millions) 2019 2018 2017 Pratt & Whitney $ 5,614 $ 4,489 $ 3,347 Collins Aerospace Systems 4,802 2,779 2,299 Other 12 10 12 Total $ 10,428 $ 7,278 $ 5,658 Sales to Airbus prior to discounts and incentives were approximately $9,879 million, $10,025 million and $8,908 million for the years ended December 31, 2019, 2018 and 2017, respectively. | ||||||||||
Schedule Of Segment Reporting Information By Segment [Table Text Block] | Net Sales Operating Profits (dollars in millions) 2019 2018 2017 2019 2018 2017 Pratt & Whitney 20,892 19,397 16,160 1,668 1,269 1,300 Collins Aerospace Systems 26,028 16,634 14,691 4,100 2,303 2,191 Total segment 46,920 36,031 30,851 5,768 3,572 3,491 Eliminations and other (1,571) (1,330) (1,138) (339) (220) (63) General corporate expenses — — — (515) (475) (439) Consolidated $ 45,349 $ 34,701 $ 29,713 $ 4,914 $ 2,877 $ 2,989 Total Assets Capital Expenditures Depreciation & Amortization (dollars in millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Pratt & Whitney 31,271 29,341 26,768 822 866 923 980 852 672 Collins Aerospace Systems 74,049 73,115 34,567 959 515 527 1,749 883 823 Total segment 105,320 102,456 61,335 1,781 1,381 1,450 2,729 1,735 1,495 Eliminations and other 2,472 1,015 4,659 87 86 106 (21) 161 85 Assets related to discontinued operations $ 31,823 $ 30,740 $ 30,926 Consolidated $ 139,615 $ 134,211 $ 96,920 $ 1,868 $ 1,467 $ 1,556 $ 2,708 $ 1,896 $ 1,580 | ||||||||||
Schedule of Revenues From External Customers And Long Lived Assets By Geographic Areas [Table Text Block] | External Net Sales Operating Profits Long-Lived Assets (dollars in millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 United States Operations $ 35,125 $ 26,646 $ 21,975 $ 3,287 $ 1,790 $ 1,603 $ 6,507 $ 6,165 $ 4,424 International Operations Europe 4,419 3,092 2,747 1,480 1,027 826 1,268 1,272 1,147 Asia Pacific 1,989 1,645 1,779 444 365 351 917 905 685 Other 5,387 4,648 4,350 557 390 711 1,089 1,064 1,082 Eliminations and other (1,571) (1,330) (1,138) (854) (695) (502) 541 500 469 Consolidated $ 45,349 $ 34,701 $ 29,713 $ 4,914 $ 2,877 $ 2,989 $ 10,322 $ 9,906 $ 7,807 | ||||||||||
Revenue from External Customers by Geographic Areas [Table Text Block] | (dollars in millions) 2019 2018 2017 Europe $ 7,078 $ 6,217 $ 5,197 Asia Pacific 6,411 5,355 3,526 Other 3,295 1,966 1,675 Total $ 16,784 $ 13,538 $ 10,398 | ||||||||||
Total Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 46,920 | 36,031 | 30,851 | ||||||||
Operating Income (Loss) | 5,768 | 3,572 | 3,491 | ||||||||
Total Assets | 105,320 | 102,456 | 105,320 | 102,456 | 61,335 | ||||||
Capital Expenditures | 1,781 | 1,381 | 1,450 | ||||||||
Depreciation & Amortization | 2,729 | 1,735 | 1,495 | ||||||||
Eliminations and other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (1,571) | (1,330) | (1,138) | ||||||||
Operating Income (Loss) | (339) | (220) | (63) | ||||||||
Total Assets | 2,472 | 1,015 | 2,472 | 1,015 | 4,659 | ||||||
Capital Expenditures | 87 | 86 | 106 | ||||||||
Depreciation & Amortization | (21) | 161 | 85 | ||||||||
General corporate expenses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Income (Loss) | (515) | (475) | (439) | ||||||||
Pratt and Whitney [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 20,892 | 19,397 | 16,160 | ||||||||
Operating Income (Loss) | 1,668 | 1,269 | 1,300 | ||||||||
Total Assets | 31,271 | 29,341 | 31,271 | 29,341 | 26,768 | ||||||
Capital Expenditures | 822 | 866 | 923 | ||||||||
Depreciation & Amortization | 980 | 852 | 672 | ||||||||
Major Customers, U.S. Government Sales | 5,614 | 4,489 | 3,347 | ||||||||
Collins Aerospace Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 26,028 | 16,634 | 14,691 | ||||||||
Operating Income (Loss) | 4,100 | 2,303 | 2,191 | ||||||||
Total Assets | 74,049 | 73,115 | 74,049 | 73,115 | 34,567 | ||||||
Capital Expenditures | 959 | 515 | 527 | ||||||||
Depreciation & Amortization | 1,749 | 883 | 823 | ||||||||
Major Customers, U.S. Government Sales | 4,802 | 2,779 | 2,299 | ||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Major Customers, U.S. Government Sales | 12 | 10 | 12 | ||||||||
Discontinued Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | $ 31,823 | $ 30,740 | $ 31,823 | $ 30,740 | $ 30,926 |
Segment Financial Data (By Geog
Segment Financial Data (By Geographic Region) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 11,694 | $ 11,373 | $ 11,329 | $ 10,953 | $ 10,121 | $ 8,412 | $ 8,333 | $ 7,836 | $ 45,349 | $ 34,701 | $ 29,713 |
External Net Sales by Geography | 45,349 | 34,701 | 29,713 | ||||||||
United States Export Sales | $ 16,784 | $ 13,538 | $ 10,398 | ||||||||
Operating Income (Loss) | $ 4,914 | $ 2,877 | $ 2,989 | ||||||||
Long-Lived Assets by Geography | 10,322 | 9,906 | 7,807 | ||||||||
Europe [Member] | |||||||||||
External Net Sales by Geography | 4,419 | 3,092 | 2,747 | ||||||||
United States Export Sales | $ 7,078 | $ 6,217 | $ 5,197 | ||||||||
Operating Income (Loss) | $ 1,480 | $ 1,027 | $ 826 | ||||||||
Long-Lived Assets by Geography | 1,268 | 1,272 | 1,147 | ||||||||
Asia Pacific [Member] | |||||||||||
External Net Sales by Geography | 1,989 | 1,645 | 1,779 | ||||||||
United States Export Sales | $ 6,411 | $ 5,355 | $ 3,526 | ||||||||
Operating Income (Loss) | $ 444 | $ 365 | $ 351 | ||||||||
Long-Lived Assets by Geography | 917 | 905 | 685 | ||||||||
Other Geographic Regions [Member] | |||||||||||
External Net Sales by Geography | 5,387 | 4,648 | 4,350 | ||||||||
United States Export Sales | $ 3,295 | $ 1,966 | $ 1,675 | ||||||||
Operating Income (Loss) | $ 557 | $ 390 | $ 711 | ||||||||
Long-Lived Assets by Geography | 1,089 | 1,064 | 1,082 | ||||||||
UNITED STATES | |||||||||||
External Net Sales by Geography | 35,125 | 26,646 | 21,975 | ||||||||
Operating Income (Loss) | $ 3,287 | $ 1,790 | $ 1,603 | ||||||||
Long-Lived Assets by Geography | 6,507 | 6,165 | 4,424 | ||||||||
UNITED STATES | |||||||||||
Revenues | $ 35,125 | $ 26,646 | |||||||||
Other [Member] | |||||||||||
Revenues | 5,387 | 4,648 | |||||||||
Asia Pacific [Member] | |||||||||||
Revenues | 1,989 | 1,645 | |||||||||
Europe [Member] | |||||||||||
Revenues | $ 4,419 | $ 3,092 | |||||||||
Eliminations and other | |||||||||||
External Net Sales by Geography | (1,571) | (1,330) | (1,138) | ||||||||
Operating Income (Loss) | $ (854) | $ (695) | $ (502) | ||||||||
Long-Lived Assets by Geography | 541 | 500 | 469 | ||||||||
Total Segments [Member] | |||||||||||
Revenues | $ 46,920 | $ 36,031 | $ 30,851 | ||||||||
Operating Income (Loss) | 5,768 | 3,572 | 3,491 | ||||||||
Collins Aerospace Systems [Member] | |||||||||||
Revenues | 26,028 | 16,634 | 14,691 | ||||||||
Operating Income (Loss) | 4,100 | 2,303 | 2,191 | ||||||||
Collins Aerospace Systems [Member] | UNITED STATES | |||||||||||
Revenues | 18,977 | 11,794 | |||||||||
Collins Aerospace Systems [Member] | Other [Member] | |||||||||||
Revenues | 2,305 | 1,974 | |||||||||
Collins Aerospace Systems [Member] | Asia Pacific [Member] | |||||||||||
Revenues | 825 | 368 | |||||||||
Collins Aerospace Systems [Member] | Europe [Member] | |||||||||||
Revenues | 3,921 | 2,498 | |||||||||
Pratt and Whitney [Member] | |||||||||||
Revenues | 20,892 | 19,397 | 16,160 | ||||||||
Operating Income (Loss) | 1,668 | 1,269 | 1,300 | ||||||||
Pratt and Whitney [Member] | UNITED STATES | |||||||||||
Revenues | 16,148 | 14,852 | |||||||||
Pratt and Whitney [Member] | Other [Member] | |||||||||||
Revenues | 3,082 | 2,674 | |||||||||
Pratt and Whitney [Member] | Asia Pacific [Member] | |||||||||||
Revenues | 1,164 | 1,277 | |||||||||
Pratt and Whitney [Member] | Europe [Member] | |||||||||||
Revenues | 498 | 594 | |||||||||
Eliminations and other [Member] | |||||||||||
Revenues | (1,571) | (1,330) | (1,138) | ||||||||
Operating Income (Loss) | $ (339) | $ (220) | $ (63) |
Segment Financial Data (Disaggr
Segment Financial Data (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 11,694 | $ 11,373 | $ 11,329 | $ 10,953 | $ 10,121 | $ 8,412 | $ 8,333 | $ 7,836 | $ 45,349 | $ 34,701 | $ 29,713 |
Product [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 32,998 | 24,141 | 21,119 | ||||||||
Service [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 12,351 | 10,560 | 8,594 | ||||||||
Eliminations and other [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | (1,571) | (1,330) | (1,138) | ||||||||
Pratt and Whitney [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 20,892 | 19,397 | 16,160 | ||||||||
Pratt and Whitney [Member] | Product [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 12,977 | 11,410 | |||||||||
Pratt and Whitney [Member] | Service [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 7,915 | 7,987 | |||||||||
Collins Aerospace Systems [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 26,028 | 16,634 | 14,691 | ||||||||
Collins Aerospace Systems [Member] | Product [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 21,440 | 13,915 | |||||||||
Collins Aerospace Systems [Member] | Service [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 4,588 | 2,719 | |||||||||
Total Segments [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 46,920 | 36,031 | $ 30,851 | ||||||||
Total Segments [Member] | Product [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 34,417 | 25,325 | |||||||||
Total Segments [Member] | Service [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 12,503 | 10,706 | |||||||||
Commercial Aerospace [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 33,521 | ||||||||||
Commercial Aerospace [Member] | Pratt and Whitney [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 14,516 | 14,027 | |||||||||
Commercial Aerospace [Member] | Collins Aerospace Systems [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 19,005 | 12,564 | |||||||||
Commercial Aerospace [Member] | Total Segments [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 26,591 | ||||||||||
Commercial and industrial, non aerospace [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 153 | ||||||||||
Commercial and industrial, non aerospace [Member] | Pratt and Whitney [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 102 | 55 | |||||||||
Commercial and industrial, non aerospace [Member] | Collins Aerospace Systems [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 51 | 60 | |||||||||
Commercial and industrial, non aerospace [Member] | Total Segments [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 115 | ||||||||||
Military aerospace [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 13,246 | ||||||||||
Military aerospace [Member] | Pratt and Whitney [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 6,274 | 5,315 | |||||||||
Military aerospace [Member] | Collins Aerospace Systems [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 6,972 | 4,010 | |||||||||
Military aerospace [Member] | Total Segments [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 9,325 |
Subsequent Events (Details)
Subsequent Events (Details) € in Millions | Apr. 03, 2020shares | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Jun. 30, 2020EUR (€) | |||
Subsequent Event [Line Items] | |||||||||||||
Net pre-tax restructuring costs (benefit) | $ 245,000,000 | ||||||||||||
Aggregate Line of Credit Facility Maximum Borrowing Capacity | $ 10,350,000,000 | ||||||||||||
Proceeds from Issuance of Debt | $ 11,000,000,000 | ||||||||||||
Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Net pre-tax restructuring costs (benefit) | $ 685,000,000 | ||||||||||||
Goodwill, Impairment Loss | $ 3,200,000,000 | ||||||||||||
Aggregate Line of Credit Facility Maximum Borrowing Capacity | 7,000,000,000 | $ 7,000,000,000 | |||||||||||
Proceeds from Issuance of Debt | 19,300,000,000 | ||||||||||||
Repayments of Debt | 15,174,000,000 | ||||||||||||
Extinguishment of Debt, Amount | $ 703,000,000 | ||||||||||||
Debt Exchanged | $ 8,200,000,000 | $ 8,200,000,000 | |||||||||||
Collins Aerospace Systems [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Proceeds from Divestiture of Businesses | $ 2,300,000,000 | ||||||||||||
Gain (Loss) on Disposition of Business | 580,000,000 | ||||||||||||
Gain (Loss) on Disposition of Business, Net of Tax | $ 253,000,000 | ||||||||||||
Otis [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Shares of common stock distributed in the Distribution | shares | 433,079,455 | ||||||||||||
Otis [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Shares of common stock distributed in the Distribution | shares | 433,079,455 | ||||||||||||
Carrier [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Shares of common stock distributed in the Distribution | shares | 866,158,910 | ||||||||||||
Raytheon Company [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Business Acquisition UTC stock payable shares | shares | 2.3348 | ||||||||||||
Notes 2.250% Due 2030 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | 2.25% | ||||||||||
Debt Instrument, Maturity Year Date | 2030 | ||||||||||||
Proceeds from Issuance of Debt | $ 1,000,000,000 | ||||||||||||
Notes 3.125% Due 2050 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | 3.125% | ||||||||||
Debt Instrument, Maturity Year Date | 2050 | ||||||||||||
Proceeds from Issuance of Debt | $ 1,000,000,000 | ||||||||||||
Otis 3-Year Term Loan due 2023 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Maturity Year Date | 2023 | ||||||||||||
Proceeds from Issuance of Debt | $ 1,000,000,000 | ||||||||||||
Carrier 3-Year Term Loan due 2023 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Maturity Year Date | 2023 | ||||||||||||
Proceeds from Issuance of Debt | $ 1,750,000,000 | ||||||||||||
Notes 1.923% Due 2023 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.923% | 1.923% | 1.923% | ||||||||||
Debt Instrument, Maturity Year Date | 2023 | ||||||||||||
Proceeds from Issuance of Debt | $ 500,000,000 | ||||||||||||
Libor plus 0.45% floating rates due 2023 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.45% | 0.45% | 0.45% | ||||||||||
Debt Instrument, Maturity Year Date | 2023 | ||||||||||||
Proceeds from Issuance of Debt | $ 500,000,000 | ||||||||||||
Notes 2.056% Due 2025 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.056% | 2.056% | 2.056% | ||||||||||
Debt Instrument, Maturity Year Date | 2025 | ||||||||||||
Proceeds from Issuance of Debt | $ 1,300,000,000 | ||||||||||||
Notes 2.242% Due 2025 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.242% | 2.242% | 2.242% | ||||||||||
Debt Instrument, Maturity Year Date | 2025 | ||||||||||||
Proceeds from Issuance of Debt | $ 2,000,000,000 | ||||||||||||
Notes 2.293% Due 2027 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.293% | 2.293% | 2.293% | ||||||||||
Debt Instrument, Maturity Year Date | 2027 | ||||||||||||
Proceeds from Issuance of Debt | $ 500,000,000 | ||||||||||||
Notes 2.493% Due 2027 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.493% | 2.493% | 2.493% | ||||||||||
Debt Instrument, Maturity Year Date | 2027 | ||||||||||||
Proceeds from Issuance of Debt | $ 1,250,000,000 | ||||||||||||
Notes 2.565% Due 2030 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.565% | 2.565% | 2.565% | ||||||||||
Debt Instrument, Maturity Year Date | 2030 | ||||||||||||
Proceeds from Issuance of Debt | $ 1,500,000,000 | ||||||||||||
Notes 2.722% Due 2030 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.722% | 2.722% | 2.722% | ||||||||||
Debt Instrument, Maturity Year Date | 2030 | ||||||||||||
Proceeds from Issuance of Debt | $ 2,000,000,000 | ||||||||||||
Notes 3.112% Due 2040 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.112% | 3.112% | 3.112% | ||||||||||
Debt Instrument, Maturity Year Date | 2040 | ||||||||||||
Proceeds from Issuance of Debt | $ 750,000,000 | ||||||||||||
Notes 3.377% Due 2040 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.377% | 3.377% | 3.377% | ||||||||||
Debt Instrument, Maturity Year Date | 2040 | ||||||||||||
Proceeds from Issuance of Debt | $ 1,500,000,000 | ||||||||||||
Notes 3.362% Due 2050 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.362% | 3.362% | 3.362% | ||||||||||
Debt Instrument, Maturity Year Date | 2050 | ||||||||||||
Proceeds from Issuance of Debt | $ 750,000,000 | ||||||||||||
Notes 3.577% Due 2050 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.577% | 3.577% | 3.577% | ||||||||||
Debt Instrument, Maturity Year Date | 2050 | ||||||||||||
Proceeds from Issuance of Debt | $ 2,000,000,000 | ||||||||||||
Notes 3.650% Due 2023 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.65% | ||||||||||||
Debt Instrument, Maturity Year Date | 2023 | 2023 | |||||||||||
Proceeds from Issuance of Debt | [1] | $ 2,250,000,000 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 2,250,000,000 | 2,250,000,000 | ||||||||||
Notes 3.650% Due 2023 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.65% | 3.65% | 3.65% | ||||||||||
Debt Instrument, Maturity Year Date | 2023 | ||||||||||||
Repayments of Debt | $ 1,669,000,000 | $ 410,000,000 | |||||||||||
EURIBOR plus 0.20% floating rate notes due 2020 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.20% | ||||||||||||
Debt Instrument, Maturity Year Date | 2020 | 2020 | |||||||||||
Proceeds from Issuance of Debt | € | [3] | € 750 | |||||||||||
Debt Instrument, Carrying Amount | [4] | $ 831,000,000 | 858,000,000 | ||||||||||
EURIBOR plus 0.20% floating rate notes due 2020 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.20% | 0.20% | 0.20% | ||||||||||
Debt Instrument, Maturity Year Date | 2020 | ||||||||||||
Debt Instrument, Carrying Amount | € | € 750 | ||||||||||||
Repayments of Debt | $ 817,000,000 | ||||||||||||
Notes 4.500% Due 2020 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||||||||||
Debt Instrument, Maturity Year Date | 2020 | 2020 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 1,250,000,000 | 1,250,000,000 | ||||||||||
Notes 4.500% Due 2020 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% | ||||||||||
Debt Instrument, Maturity Year Date | 2020 | ||||||||||||
Repayments of Debt | $ 1,250,000,000 | ||||||||||||
Notes 1.125% Due 2021 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.125% | ||||||||||||
Debt Instrument, Maturity Year Date | 2021 | 2021 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 1,053,000,000 | 1,088,000,000 | ||||||||||
Notes 1.125% Due 2021 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.125% | 1.125% | 1.125% | ||||||||||
Debt Instrument, Maturity Year Date | 2021 | ||||||||||||
Debt Instrument, Carrying Amount | € | € 950 | ||||||||||||
Repayments of Debt | $ 1,082,000,000 | ||||||||||||
Notes 1.250% due 2023 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | ||||||||||||
Debt Instrument, Maturity Year Date | 2023 | 2023 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 831,000,000 | 858,000,000 | ||||||||||
Notes 1.250% due 2023 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | 1.25% | 1.25% | ||||||||||
Debt Instrument, Maturity Year Date | 2023 | ||||||||||||
Debt Instrument, Carrying Amount | € | € 750 | ||||||||||||
Repayments of Debt | $ 836,000,000 | ||||||||||||
Notes 1.150% Due 2024 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.15% | ||||||||||||
Debt Instrument, Maturity Year Date | 2024 | 2024 | |||||||||||
Proceeds from Issuance of Debt | € | [3] | € 750 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 831,000,000 | 858,000,000 | ||||||||||
Notes 1.150% Due 2024 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.15% | 1.15% | 1.15% | ||||||||||
Debt Instrument, Maturity Year Date | 2024 | ||||||||||||
Debt Instrument, Carrying Amount | € | € 750 | ||||||||||||
Repayments of Debt | $ 841,000,000 | ||||||||||||
Notes 1.875% Due 2026 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.875% | ||||||||||||
Debt Instrument, Maturity Year Date | 2026 | 2026 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 554,000,000 | 573,000,000 | ||||||||||
Notes 1.875% Due 2026 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.875% | 1.875% | 1.875% | ||||||||||
Debt Instrument, Maturity Year Date | 2026 | ||||||||||||
Debt Instrument, Carrying Amount | € | € 500 | ||||||||||||
Repayments of Debt | $ 567,000,000 | ||||||||||||
Notes 1.900% Due 2020 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.90% | ||||||||||||
Debt Instrument, Maturity Year Date | 2020 | 2020 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 1,000,000,000 | 1,000,000,000 | ||||||||||
Notes 1.900% Due 2020 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.90% | 1.90% | 1.90% | ||||||||||
Debt Instrument, Maturity Year Date | 2020 | ||||||||||||
Repayments of Debt | $ 1,000,000,000 | ||||||||||||
Notes 3.350% due 2021 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.35% | ||||||||||||
Debt Instrument, Maturity Year Date | 2021 | 2021 | |||||||||||
Proceeds from Issuance of Debt | [1] | $ 1,000,000,000 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 1,000,000,000 | 1,000,000,000 | ||||||||||
Notes 3.350% due 2021 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.35% | 3.35% | 3.35% | ||||||||||
Debt Instrument, Maturity Year Date | 2021 | ||||||||||||
Repayments of Debt | $ 1,000,000,000 | ||||||||||||
LIBOR plus 0.650% floating rate notes due 2021 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.65% | ||||||||||||
Debt Instrument, Maturity Year Date | 2021 | 2021 | |||||||||||
Proceeds from Issuance of Debt | [1] | $ 750,000,000 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 750,000,000 | [5] | 750,000,000 | [6] | ||||||||
LIBOR plus 0.650% floating rate notes due 2021 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.65% | 0.65% | 0.65% | ||||||||||
Debt Instrument, Maturity Year Date | 2021 | ||||||||||||
Repayments of Debt | $ 750,000,000 | ||||||||||||
Notes 1.950% Due 2021 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | ||||||||||||
Debt Instrument, Maturity Year Date | 2021 | 2021 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 750,000,000 | 750,000,000 | ||||||||||
Notes 1.950% Due 2021 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | 1.95% | 1.95% | ||||||||||
Debt Instrument, Maturity Year Date | 2021 | ||||||||||||
Repayments of Debt | $ 750,000,000 | ||||||||||||
Notes 2.300% Due 2022 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.30% | ||||||||||||
Debt Instrument, Maturity Year Date | 2022 | 2022 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 500,000,000 | 500,000,000 | ||||||||||
Notes 2.300% Due 2022 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.30% | 2.30% | 2.30% | ||||||||||
Debt Instrument, Maturity Year Date | 2022 | ||||||||||||
Repayments of Debt | $ 500,000,000 | ||||||||||||
Notes 3.100% Due 2022 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | ||||||||||||
Debt Instrument, Maturity Year Date | 2022 | 2022 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 2,300,000,000 | 2,300,000,000 | ||||||||||
Notes 3.100% Due 2022 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | 3.10% | 3.10% | ||||||||||
Debt Instrument, Maturity Year Date | 2022 | ||||||||||||
Repayments of Debt | $ 2,300,000,000 | ||||||||||||
Notes 2.800% Due 2024 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | ||||||||||||
Debt Instrument, Maturity Year Date | 2024 | 2024 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 800,000,000 | 800,000,000 | ||||||||||
Notes 2.800% Due 2024 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | 2.80% | 2.80% | ||||||||||
Debt Instrument, Maturity Year Date | 2024 | ||||||||||||
Repayments of Debt | $ 800,000,000 | ||||||||||||
Notes 4.875% Due 2020 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | ||||||||||||
Debt Instrument, Maturity Year Date | 2020 | 2020 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 171,000,000 | 171,000,000 | ||||||||||
Notes 4.875% Due 2020 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% | 4.875% | ||||||||||
Debt Instrument, Maturity Year Date | 2020 | ||||||||||||
Repayments of Debt | $ 171,000,000 | ||||||||||||
Notes 2.650% Due 2026 [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | ||||||||||||
Debt Instrument, Maturity Year Date | 2026 | 2026 | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 1,150,000,000 | $ 1,150,000,000 | ||||||||||
Notes 2.650% Due 2026 [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | 2.65% | 2.65% | ||||||||||
Debt Instrument, Maturity Year Date | 2026 | ||||||||||||
Repayments of Debt | $ 431,000,000 | ||||||||||||
Line of Credit [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Termination of Credit Agreement | 4,000,000,000 | ||||||||||||
$2.0B revolving credit agreement [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Termination of Credit Agreement | $ 2,000,000,000 | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000,000,000 | 2,000,000,000 | |||||||||||
1.75B Credit Agreement - Carrier [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Termination of Credit Agreement | 1,750,000,000 | 1,750,000,000 | |||||||||||
Line of Credit - Otis [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Termination of Credit Agreement | 1,000,000,000 | 1,000,000,000 | |||||||||||
Borrowings [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,100,000,000 | 2,100,000,000 | |||||||||||
Revolving Credit Agreement, Current [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Termination of Credit Agreement | 2,200,000,000 | 2,200,000,000 | |||||||||||
Multicurrency Revolving Credit Agreement [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Termination of Credit Agreement | 2,150,000,000 | 2,150,000,000 | |||||||||||
$500M Term Loan Credit Agreement [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Termination of Credit Agreement | 500,000,000 | 500,000,000 | |||||||||||
1.0B Credit Agreement [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | 1,000,000,000 | |||||||||||
Revolving Credit Agreement [Member] | Forecast [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000,000 | $ 5,000,000,000 | |||||||||||
[1] | (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] | We may redeem these notes at our option pursuant to their terms. | ||||||||||||
[3] | (3) The net proceeds received from these debt issuances were used for general corporate purposes. | ||||||||||||
[4] | The three-month EURIBOR rate as of December 31, 2019 was approximately (0.383)%. 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. | ||||||||||||
[5] | The three-month LIBOR rate as of December 31, 2019 was approximately 1.908%. | ||||||||||||
[6] | The three-month LIBOR rate as of December 31, 2019 was approximately 1.908%. |
Selected Quarterly Financial _3
Selected Quarterly Financial Data - Unaudited (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenues | $ 11,694 | $ 11,373 | $ 11,329 | $ 10,953 | $ 10,121 | $ 8,412 | $ 8,333 | $ 7,836 | $ 45,349 | $ 34,701 | $ 29,713 |
Gross margin | 2,578 | 2,864 | 2,775 | 2,534 | 2,041 | 1,586 | 1,819 | 1,791 | |||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 657 | 958 | 1,183 | 712 | (240) | 318 | 541 | 598 | 3,510 | 1,216 | 1,313 |
Net (loss) income from discontinued operations | 486 | 190 | 717 | 634 | 926 | 920 | 1,507 | 699 | 2,027 | 4,053 | 3,239 |
Net income attributable to common shareowners | $ 1,143 | $ 1,148 | $ 1,900 | $ 1,346 | $ 686 | $ 1,238 | $ 2,048 | $ 1,297 | $ 5,537 | $ 5,269 | $ 4,552 |
Net income from continuing operations attributable to common shareowners | $ 0.77 | $ 1.12 | $ 1.38 | $ 0.84 | $ (0.29) | $ 0.40 | $ 0.68 | $ 0.76 | $ 4.11 | $ 1.52 | $ 1.66 |
Net (loss) income from discontinued operations | 0.56 | 0.22 | 0.84 | 0.74 | 1.12 | 1.16 | 1.91 | 0.88 | 2.37 | 5.06 | 4.10 |
Earnings Per Share of Common Stock - Basic and Diluted: | |||||||||||
Basic - net income | 1.33 | 1.34 | 2.22 | 1.58 | 0.83 | 1.56 | 2.59 | 1.64 | 6.48 | 6.58 | 5.76 |
Net income from continuing operations attributable to common shareowners | 0.76 | 1.11 | 1.37 | 0.83 | (0.29) | 0.39 | 0.68 | 0.75 | 4.06 | 1.50 | 1.64 |
Net (loss) income from discontinued operations | 0.56 | 0.22 | 0.83 | 0.73 | 1.12 | 1.15 | 1.88 | 0.87 | 2.35 | 5 | 4.06 |
Diluted - net income | $ 1.32 | $ 1.33 | $ 2.20 | $ 1.56 | $ 0.83 | $ 1.54 | $ 2.56 | $ 1.62 | $ 6.41 | $ 6.50 | $ 5.70 |
Performance Graph - Unaudited_2
Performance Graph - Unaudited (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
United Technologies Corporation | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | $ 105.03 | $ 123.08 | $ 103.37 | $ 88.32 | $ 103.19 | $ 100 |
S&P 500 Index | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | 150.33 | 157.22 | 129.05 | 115.26 | 113.69 | 100 |
Dow Jones Industrial Average | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | $ 158.85 | $ 164.58 | $ 128.47 | $ 110.28 | $ 110.04 | $ 100 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Expense | $ 323 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 123 | ||
Operating Lease, Right-of-Use Asset | 1,252 | $ 1,700 | $ 0 |
Operating Lease, Liability, Current | 245 | 0 | |
Operating Lease, Liability, Noncurrent | $ 1,093 | $ 0 | |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 7 months 6 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.50% | ||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 298 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 265 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 196 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 147 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 120 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 595 | ||
Lessee, Operating Lease, Liability, Payments, Due | 1,621 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 283 | ||
Operating Lease, Liability | 1,338 | $ 1,700 | |
Operating Lease, Payments | 411 | ||
Accrued Liabilities [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Liability, Current | $ 245 |