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Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2020 shares
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Registrant Name	RAYTHEON TECHNOLOGIES CORPORATION
Entity Central Index Key	0000101829
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	1-812
Entity Incorporation, State or Country Code	DE
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
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	866,160,621
Entity Address, Country	US
Entity Information, Former Legal or Registered Name	United Technologies Corporation
Former Address [Member]
Entity Address, Address Line One	10 Farm Springs Road
Entity Address, City or Town	Farmington
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06032
Common Stock [Member]
Title of 12(b) Security	Common Stock ($1 par value)
Trading Symbol	RTX
Security Exchange Name	NYSE
Notes 2.150% Due 2030 [Member]
Title of 12(b) Security	2.150% Notes due 2030
Trading Symbol	RTX 30
Security Exchange Name	NYSE
Floating Rate Notes Due2020 [Member]
Title of 12(b) Security	Floating Rate Notes due 2020
Trading Symbol	RTX 20B
Security Exchange Name	NYSE

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Income TaxesAs a result of the Separation Transactions, the Distributions and the Raytheon Merger, coupled with the impact of the wide range of uncertainties of the COVID-19 pandemic, rather than applying a forecasted annualized effective tax rate, the Company recorded its first quarter tax expense based upon income and tax items as they occurred in the quarter. The increase in the effective tax rate for the quarter ended March 31, 2020 is primarily the result of tax charges in connection with the Company’s Separation Transactions, including the impairment of deferred tax assets not expected to be utilized. We conduct business globally and, as a result, Raytheon Technologies 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.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. As a result of the Separation Transactions and the Distributions in the second quarter of 2020, we expect to transfer unrecognized tax benefits to Carrier and Otis of approximately $440 million in the second quarter including certain amounts related to pending tax litigation in Germany as further discussed in Note 16, Contingent Liabilities. Pursuant to the terms of the separation agreements, certain other unrecognized tax benefits retained by Raytheon Technologies will be subject to indemnification. Additionally, it is reasonably possible that a net reduction within the range of $100 million to $300 million of unrecognized tax benefits may occur within the next 12 months as a result of worldwide uncertain tax positions, the revaluation of current uncertain tax positions arising from the issuance of legislation, regulatory or other guidance or developments in examinations, in appeals, or in the courts, or the closure of tax statutes

Condensed Consolidated Statement of Operations Condensed Consolidated Statement of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net Sales:
Revenues	$ 18,210	$ 18,365
Costs and Expenses:
Research and development	671	728
Selling, general and administrative	2,248	1,997
Total costs and expenses	16,327	16,432
Other income, net	(76)	112
Operating Income (Loss)	1,807	2,045
Non-service pension cost (benefit)	(188)	(208)
Interest expense, net	380	431
Income from operations before income taxes	955	1,822
Income tax expense	941	397
Net Income from operations	14	1,425
Less: Noncontrolling interest in subsidiaries' earnings from operations	97	79
Net income attributable to common shareowners	$ (83)	$ 1,346
Earnings Per Share of Common Stock - Basic:
Net income attributable to common shareowners	$ (0.10)	$ 1.58
Earnings Per Share of Common Stock - Diluted:
Net income attributable to common shareowners	$ (0.10)	$ 1.56
Extinguishment of Debt, Amount	$ 660	$ 0
Product [Member]
Net Sales:
Revenues	12,432	12,875
Costs and Expenses:
Cost of Products and Services Sold	9,781	10,286
Service [Member]
Net Sales:
Revenues	5,778	5,490
Costs and Expenses:
Cost of Products and Services Sold	$ 3,627	$ 3,421

Condensed Consolidated Statement of Comprehensive (Loss) Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net Income from operations	$ 14	$ 1,425
Foreign currency translation adjustments
Foreign Currency Translation Adjustments, Net of Tax	(1,444)	521
Pension and post-retirement benefit plans
Pension and Other Postretirement Benefit Plans, Net of Tax	79	33
Change in unrealized cash flow hedging
Total unrealized gain (loss) on cash-flow hedging, net of tax	(282)	8
Other comprehensive income (loss), net of tax	(1,647)	562
Comprehensive (loss) income	(1,633)	1,987
Less: Comprehensive income attributable to noncontrolling interest	91	82
Comprehensive (loss) income attributable to common shareowners	$ (1,724)	$ 1,905

Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Cash and cash equivalents	$ 8,001	$ 7,378
Accounts receivable, net	13,104	13,524
Contract assets, current	4,549	4,184
Inventory, net	11,506	10,950
Other assets, current	1,715	1,461
Total Current Assets	38,875	37,497
Customer financing assets	3,496	3,477
Future income tax benefits	1,444	1,611
Fixed assets	25,544	25,686
Less: Accumulated depreciation	13,060	12,931
Fixed assets, net	12,484	12,755
Operating Lease, Right-of-Use Asset	2,624	2,599
Goodwill	47,481	48,063
Intangible assets, net	25,600	26,046
Other assets	7,568	7,668
Total Assets	139,572	139,716
Short-term borrowings	1,725	2,364
Accounts payable	10,976	10,809
Accrued liabilities	11,055	11,737
Contract liabilities, current	6,384	6,180
Long-term debt currently due	1,362	3,496
Total Current Liabilities	31,502	34,586
Long-term debt	43,232	37,788
Future pension and postretirement benefit obligations	3,225	3,502
Operating Lease, Liability, Noncurrent	2,126	2,144
Other long-term liabilities	11,903	11,638
Total Liabilities	97,542	95,390
Redeemable noncontrolling interest	95	95
Common Stock	23,099	23,019
Treasury Stock	32,665	32,626
Retained earnings	60,826	61,594
Unearned ESOP shares	61	64
Accumulated other comprehensive loss	(11,788)	(10,149)
Total Shareowners' Equity	39,411	41,774
Stockholders' Equity Attributable to Noncontrolling Interest	2,524	2,457
Total Equity	41,935	44,231
Total Liabilities and Equity	139,572	139,716
Contract with Customer, Liability, Noncurrent	$ 5,554	$ 5,732

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Cash Flows [Abstract]
Net Income from operations	$ 14	$ 1,425
Adjustments to reconcile income from continuing operations to net cash flows provided by operating activities of continuing operations:
Depreciation and amortization	980	942
Deferred income tax provision	485	21
Stock compensation cost	87	64
Net periodic pension and other postretirement benefit	(136)	(120)
Change in:
Accounts receivable	(196)	(849)
Contract assets, current	220	215
Inventories	707	697
Other current assets	191	165
Accounts payable and accrued liabilities	(318)	(588)
Contract liabilities, current	353	371
Global pension contributions	39	32
Canadian Government Settlement	0	(38)
Other operating activities, net	(157)	317
Net cash flows provided by operating activities of continuing operations	661	1,500
Investing Activities of Continuing Operations:
Capital expenditures	412	363
Investments in businesses	5	19
Dispositions of businesses	0	133
Increase in customer financing assets	88	173
Increase in collaboration intangible assets	78	87
Payments (receipts) from settlements of derivative contracts	639	(92)
Other investing activities, net	61	(23)
Net cash flows used in investing activities of continuing operations	(1,283)	(394)
Financing Activities of Continuing Operations:
Proceeds from Issuance of Long-term Debt	17,207	32
Repayments of Long-term Debt	13,836	26
(Decrease) increase in short-term borrowings, net	(626)	(349)
Proceeds from Common Stock issued under employee stock plans	6	5
Dividends paid on Common Stock	614	609
Repurchase of Common Stock	47	29
Other financing activities, net	(68)	(101)
Net cash flows used in financing activities of continuing operations	1,362	(1,077)
Effect of Exchange Rate on Cash and Cash Equivalents [Abstract]
Effect of foreign exchange rate changes on cash and cash equivalents	(94)	41
Net increase in cash, cash equivalents and restricted cash	646	70
Cash and Cash Equivalents, beginning of year	7,420	6,212
Cash and Cash Equivalents, end of period	8,066	6,282
Restricted Cash	65	42
Cash and cash equivalents, end of period	8,001	6,240
Payment for Debt Extinguishment or Debt Prepayment Cost	$ 660	$ 0

Condensed Consolidated Statement of Changes in Equity Statement - USD ($) shares in Thousands, $ in Millions	Total	Common Stock [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Deferred Compensation, Share-based Payments [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 40,610
Stockholders' Equity Attributable to Parent		$ 22,514	$ (32,482)	$ 57,823	$ (76)	$ (9,333)
Stockholders' Equity Attributable to Noncontrolling Interest							$ 2,164
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture		57	3		1
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests		0
Treasury Stock, Value, Acquired, Cost Method			32
Net income attributable to common shareowners	1,346			1,346
Dividends, Common Stock				609
Employee Stock Ownership Plan (ESOP), Dividends Paid to ESOP				18
Noncontrolling Interest, Change in Redemption Value		(7)		4
Reclassification to Retained Earnings, current period, ASU 2018-02 adoption impact				745
Stockholders' Equity, Other				(12)			3
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent						559
ASU 2018-02 adoption impact	$ (745)					(745)
Net Income (Loss) Attributable to Noncontrolling Interest							79
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest							3
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest							3
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders							44
Noncontrolling Interest, Increase from Capital Contributions							0
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	1,028
Stock Repurchased During Period, Shares	256
Common Stock, Dividends, Per Share, Declared	$ 0.735
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 41,946
Stockholders' Equity Attributable to Parent		22,564	(32,511)	59,279	(75)	(9,519)
Stockholders' Equity Attributable to Noncontrolling Interest							2,208
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	44,231
Stockholders' Equity Attributable to Parent	41,774	23,019	(32,626)	61,594	(64)	(10,149)
Stockholders' Equity Attributable to Noncontrolling Interest	2,457						2,457
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture		81	4		3
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests		1
Treasury Stock, Value, Acquired, Cost Method			43
Net income attributable to common shareowners	$ (83)			(83)
Dividends, Common Stock				614
Employee Stock Ownership Plan (ESOP), Dividends Paid to ESOP				17
Noncontrolling Interest, Change in Redemption Value		0		1
Reclassification to Retained Earnings, current period, ASU 2018-02 adoption impact				0
Stockholders' Equity, Other				(55)			0
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent						(1,639)
ASU 2018-02 adoption impact						0
Net Income (Loss) Attributable to Noncontrolling Interest							97
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest							0
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest							(6)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders							58
Noncontrolling Interest, Increase from Capital Contributions							34
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	2,050
Stock Repurchased During Period, Shares	330
Common Stock, Dividends, Per Share, Declared	$ 0.735
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 41,935
Stockholders' Equity Attributable to Parent	39,411	$ 23,099	$ (32,665)	$ 60,826	$ (61)	$ (11,788)
Stockholders' Equity Attributable to Noncontrolling Interest	$ 2,524						$ 2,524

Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2020

Variable Interest Entity, Primary Beneficiary

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities [Table Text Block]

The carrying amounts and classification of assets and liabilities for variable interest entities in our Condensed Consolidated Balance Sheet are as follows:


(dollars in millions)	March 31, 2020		December 31, 2019
Current assets	$	4,990	$	4,573
Noncurrent assets	2,048		1,919
Total assets	$	7,038	$	6,492

Current liabilities	$	5,352	$	4,916
Noncurrent liabilities	2,240		2,149
Total liabilities	$	7,592	$	7,065

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Introduction to Notes to Condensed Consolidated Financial Statements (Unaudited) Introduction	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Introduction of Notes to Condensed Consolidated Financial Statements	The Condensed Consolidated Financial Statements at March 31, 2020 and for the quarters ended March 31, 2020 and 2019 are unaudited, but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods. The results reported in these Condensed Consolidated Financial Statements should not necessarily be taken as indicative of results that may be expected for the entire year in particular, in light of the completion of the Separation Transactions, Distributions and Raytheon Merger (each defined below). The financial information included herein should be read in conjunction with the financial statements and notes in our Annual Report to Shareowners (2019 Annual Report) incorporated by reference in our Annual Report on Form 10-K for calendar year 2019 (2019 Form 10-K) and with our and Raytheon Company’s other filings with the U.S. Securities and Exchange Commission (“SEC”). Separation Transactions and Distributions. On April 2, 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 financial statements of Raytheon Technologies Corporation for the period ended and as of March 31, 2020 include the financial position and results of Otis and Carrier. However, with the completion of the Separation Transactions and the Distributions, the historical results of Otis and Carrier will be presented as discontinued operations in our second quarter financial statements. 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 their previously announced all-stock merger of equals transaction (the "Raytheon Merger"). Upon closing of the Raytheon Merger, UTC changed its name to “Raytheon Technologies Corporation”. Unless the context otherwise requires, the terms “we,” “our,” “us,” “the Company”, “Raytheon Technologies", and "RTC" mean United Technologies Corporation and its subsidiaries when referring to periods prior to the Raytheon Merger and to the combined company, Raytheon Technologies Corporation, when referring to periods after the Raytheon Merger. Unless the context otherwise requires, the terms "Raytheon Company," "Raytheon," or "RTN" mean Raytheon Company and its subsidiaries prior to the Raytheon merger. The financial statements of Raytheon Technologies Corporation for the period ended and as of March 31, 2020 include the financial position and results of Otis and Carrier and do not include the financial position or operations of Raytheon since the Separation Transactions, the Distributions and the Raytheon Merger occurred subsequent to the end of the reporting period.

Acquisitions, Dispositions, Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2020

Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]

Acquisitions, Dispositions, Goodwill and Other Intangible Assets [Text Block]

Acquisitions, Dispositions, Goodwill and Other Intangible Assets

Business Acquisitions. During the quarter ended March 31, 2020, our investment in business acquisitions was $5 million.

As noted above, on April 3, 2020, pursuant to the agreement dated June 9, 2019, United Technologies and Raytheon Company completed their previously announced merger in an all-stock merger of equals, following the completion by United Technologies of the Separation Transactions and Distributions. Raytheon Company (NYSE:RTN) shares ceased trading prior to the market open on April 3, 2020, and each share of Raytheon common stock has been converted in the merger into the right to receive 2.3348 shares of United Technologies common stock previously traded on the NYSE under the ticker symbol “UTX." Upon closing of the Raytheon Merger, United Technologies’ name has changed to “Raytheon Technologies Corporation,” and its shares of common stock began trading as of April 3, 2020 on the NYSE under the ticker symbol “RTX.”

Supplemental Pro-Forma Data:

Raytheon Company's results of operations have not been included in our financial statements for the quarter ended March 31, 2020 as the Raytheon Merger was completed on April 3, 2020. The following unaudited supplemental pro-forma data presents consolidated information as if the Raytheon Merger had been completed on January 1, 2019. The pro-forma results were calculated by combining the results of Raytheon Technologies with the stand-alone results of Raytheon Company for the pre-acquisition periods, which were adjusted to account for certain costs that would have been incurred during this pre-acquisition period. The results below reflect Raytheon Technologies excluding the results of Carrier and Otis, in order to more accurately represent the structure of Raytheon Technologies after completion of the Raytheon Merger.


	Quarter Ended March 31,
(dollars in millions, except per share amounts; shares in millions)	2020		2019
Net sales	$	18,451	$	17,623
Net income attributable to common shareowners	$	1,760	$	1,599
Basic earnings per share of common stock	$	1.17	$	1.06
Diluted earnings per share of common stock	$	1.16	$	1.06

The unaudited supplemental pro-forma data above includes the following significant adjustments made to account for certain costs which would have been incurred if the acquisition had been completed on January 1, 2019, as adjusted for the applicable tax impact.


	Quarter Ended March 31,
(dollars in millions)	2020		2019
Amortization of acquired Raytheon Company intangible assets, net ¹	$	(273)	$	(266)
Amortization of fixed asset fair value adjustment ²	(9)		(10)
Utilization of contractual customer obligation ³	8		15
Deferred revenue fair value adjustment ⁴	(4)		(9)
Adjustment to net periodic pension cost⁵	239		241
RTC/Raytheon fees for advisory, legal, accounting services⁶	34		—
Adjustment to interest expense related to debt distributions and Raytheon Merger, net⁷	106		131
Elimination of deferred commission amortization ⁸	5		3
Otis and Carrier separation⁹	949		(634)
	$	1,055	$	(529)

1 Reflects the additional amortization of the acquired Raytheon Company's intangible assets recognized at fair value in purchase accounting and eliminates the historical Raytheon Company intangible asset amortization expense.

2 Reflects the amortization of the fixed asset fair value adjustment as of the acquisition date.

3 Reflects the additional amortization of liabilities recognized for acquired contracts with terms less favorable than could be realized in market transactions as of the acquisition date.

4 Reflects the difference between prepayments related to extended arrangements and the preliminary fair value of the assumed performance obligations as they are satisfied.

5 Represents the impact of the pension and postretirement service cost expense as determined under RTC’s plan assumptions.

6 Reflects the elimination of transaction-related fees incurred by RTC and Raytheon Company in connection with the Raytheon Merger and assumes all of the fees were incurred during the first quarter of 2019.

7 Reflects a reduction in interest expense as result of RTC's paydown of debt to meet its targeted indebtedness, in connection with the Raytheon Merger.

8 Reflects the elimination of amortization recognized on deferred commissions that are eliminated in purchase accounting.

9 Reflects the impact of the Separation Transactions and Distributions.

Pro Forma Information Including the Results of Otis and Carrier:

The following unaudited supplemental pro-forma data presents consolidated information as if the Raytheon Merger had been completed on January 1, 2019. The pro-forma results were calculated by combining the results of Raytheon Technologies, including the results of Carrier and Otis, with the stand-alone results of Raytheon Company for the pre-acquisition periods, which were adjusted to account for certain costs that would have been incurred during this pre-acquisition period. Significant adjustments made to account for certain costs which would have been incurred if the acquisition had been completed on January 1, 2019 were consistent with the adjustments presented in the table above.


	Quarter Ended March 31,
(dollars in millions, except per share amounts; shares in millions)	2020		2019
Net sales	$	25,301	$	25,035
Net income attributable to common shareowners	$	709	$	1,942
Basic earnings per share of common stock	$	0.47	$	1.29
Diluted earnings per share of common stock	$	0.47	$	1.28

The unaudited supplemental pro-forma financial data 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 had been consummated on January 1, 2019, nor are they indicative of future results.

Dispositions. During the quarter ended March 31, 2020 there were no dispositions.

As previously disclosed, on 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 Worldwide Corporation and Carrier Global Corporation 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. UTC distributed 866,158,910 and 433,079,455 shares of common stock of Carrier and Otis, respectively in the Distributions. As a result of the Distributions, Carrier and Otis are now independent publicly traded companies. The historical results of Otis and Carrier will be presented as discontinued operations in our second quarter financial statements. In the quarter ended March 31, 2020, a total of $1,437 million of costs have been incurred related to the Separation Transactions and recorded in the following financial statement line items: $271 million of Selling, general and administrative costs, $660 million of Debt extinguishment costs, $6 million of Interest expense, and $500 million of Income tax expense.

In accordance with conditions imposed for regulatory approval of the Raytheon Merger, Collins Aerospace Systems is required to dispose of certain businesses. The proposed sale of these businesses was subject to the completion of the Raytheon Merger as well as the satisfaction of other closing conditions, including receipt of regulatory approvals. Due to these closing conditions, the criteria for held for sale accounting treatment was not met until the completion of the Raytheon Merger on April 3, 2020.

Goodwill. Changes in our goodwill balances for the quarter ended March 31, 2020 were as follows:


(dollars in millions)	Balance as of January 1, 2020		Goodwill Resulting from Business Combinations		Foreign Currency Translation and Other		Balance as of March 31, 2020
Otis	$	1,647	$	—	$	(39)	$	1,608
Carrier	9,807		—		(208)		9,599
Pratt & Whitney	1,563		—		—		1,563
Collins Aerospace Systems	35,025		—		(335)		34,690
Total Segments	48,042		—		(582)		47,460
Eliminations and other	21		—		—		21
Total	$	48,063	$	—	$	(582)	$	47,481

The Company reviews goodwill for impairment annually or more frequently if events or changes in circumstances indicate the asset might be impaired. The Company considered the deterioration in general economic and market conditions due to the COVID-19 pandemic to be a triggering event requiring us to reassess our goodwill and intangibles valuations as well as significant assumptions of future income from our underlying assets and potential changes in our liabilities. The extent of the pandemic’s impact depends on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the scope, severity and duration of the COVID-19 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. Based upon the dynamic environment, we will continue to evaluate in future periods whether these assumptions continue to be reasonable and will update the forecasts and impairment analysis as needed.

Based upon our analysis, we have determined that none of our goodwill has been impaired as of March 31, 2020. The reporting unit that was closest to impairment was a reporting unit at Collins Aerospace Systems with a fair value in excess of

net book value, including goodwill, of approximately $1.5 billion or 15%. As noted below, our assessment did result in a $40 million impairment of an indefinite-lived intangible asset at Collins Aerospace Systems.

The Company continuously monitors for events and circumstances that could negatively impact the key assumptions in determining fair value, including long-term revenue growth projections, profitability, discount rates, recent market valuations from transactions by comparable companies, volatility in the Company's market capitalization, and general industry, market and macro-economic conditions. It is possible that future changes in such circumstances, including a more prolonged and/or severe COVID-19 pandemic than originally anticipated, or future changes in the variables associated with the judgments, assumptions and estimates used in assessing the fair value of our reporting units, would require the Company to record a non-cash impairment charge.

Intangible Assets. Identifiable intangible assets are comprised of the following:


	March 31, 2020						December 31, 2019
(dollars in millions)	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
Amortized:
Service portfolios	$	2,052	$	(1,600)	$	2,105	$	(1,626)
Patents and trademarks	350		(249)		356		(250)
Collaboration intangible assets	4,940		(990)		4,862		(920)
Customer relationships and other	23,084		(5,795)		23,210		(5,607)
	30,426		(8,634)		30,533		(8,403)
Unamortized:
Trademarks and other¹	3,808		—		3,916		—
Total	$	34,234	$	(8,634)	$	34,449	$	(8,403)

¹The reduction in Trademarks and other includes a $40 million impairment charge related to a tradename at Collins Aerospace resulting from an assessment of the impact of the COVID-19 pandemic performed during the quarter ended March 31, 2020.

In addition to customer relationship intangible assets obtained through business combinations, customer relationship intangible assets include payments made to our customers to secure certain contractual rights. Such payments are capitalized when distinct rights are obtained and sufficient incremental cash flows to support the recoverability of the assets have been established. Otherwise, the applicable portion of the payments is expensed. We amortize these intangible assets based on the underlying pattern of economic benefit, which may result in an amortization method other than straight-line. In the aerospace industry, amortization based on the pattern of economic benefit generally results in lower amortization expense during the development period with amortization expense increasing as programs enter full production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined, a straight-line amortization method is used. We classify amortization of such payments as a reduction of sales. The collaboration intangible assets are amortized based upon the pattern of economic benefits as represented by the underlying cash flows.

Amortizable intangible assets are tested for impairment when events occur that indicate that the net book value will not be recovered over future cash flows. Based on our assessments performed related to COVID-19, no impairment of our amortizable intangible assets was identified as of March 31, 2020; however, we will continue to evaluate the impact on our customers and our business in future periods which may result in a different conclusion.

Amortization of intangible assets for the quarters ended March 31, 2020 and 2019 were $354 million and $374 million, respectively. The following is the expected amortization of intangible assets for the years 2020 through 2025, which reflects the pattern of expected economic benefit on certain aerospace intangible assets. The table below includes the expected amortization of the intangible assets of Otis and Carrier as of March 31, 2020.


(dollars in millions)	Remaining 2020		2021		2022		2023		2024		2025
Amortization expense	$	1,036	$	1,401	$	1,385	$	1,377	$	1,347	$	1,327

Earnings Per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings Per Share


	Quarter Ended March 31,
(dollars in millions, except per share amounts; shares in millions)	2020		2019

Net (loss) income attributable to common shareowners	$	(83)	$	1,346


Basic weighted average number of shares outstanding	858.4		853.2
Stock awards and equity units (share equivalent)	—		7.5
Diluted weighted average number of shares outstanding	858.4		860.7
(Loss) Earnings Per Share of Common Stock:
Basic	$	(0.10)	$	1.58



Diluted	$	(0.10)	$	1.56

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock appreciation rights and stock options, when the average market price of the common stock is lower than the exercise price of the related stock awards during the period because the effect would be anti-dilutive. In addition, the computation of diluted earnings per share excludes the effect of the potential exercise of stock awards when the awards’ assumed proceeds exceed the average market price of the common shares during the period. For the quarters ended March 31, 2020 and 2019, the number of stock awards excluded from the computation was approximately 16.7 million and 12.2 million, respectively. All outstanding stock awards are excluded in the computation of diluted earnings per share in the quarter ended March 31, 2020 because their effect was antidilutive due to the loss from continuing operations.

Receivables, Loans, Notes Receivable, and Others

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure

Accounts Receivable, Net

Accounts receivable, net consisted of the following:


(dollars in millions)	March 31, 2020		December 31, 2019
Accounts receivable	$	13,601	$	13,913
Allowance for expected credit losses	(497)		(389)
Total accounts receivable, net	$	13,104	$	13,524

The Company enters into various factoring agreements with third-party financial institutions to sell certain of its receivables. The Company factored receivables of $2.7 billion and $2.4 billion during the quarter ended March 31, 2020 and December 31, 2019, respectively, under these factoring arrangements, which reduced receivables. The cash received from these arrangements is reflected as cash provided by operating activities in the Condensed Consolidated Statement of Cash Flows. In certain of these factoring arrangements, for ease of administration, the Company will collect customer payments related to the factored receivables, which it then remits to the financial institutions. At March 31, 2020 and December 31, 2019, the Company had $32 million and $7 million, respectively, that was collected on behalf of the financial institutions and recorded as restricted cash and accrued liabilities. The net cash flows relating to these collections are reported as financing activities in the Condensed Consolidated Statement of Cash Flows.

The changes in the allowance for credit losses related to Accounts receivable for the quarter ended March 31, 2020 is as follows:


(dollars in millions)	March 31, 2020
Balance as of December 31, 2019	$	(389)
Current period provision for expected credit losses¹	(63)
Write-offs charged against the allowance for expected credit losses	5
Other²	(50)
Balance as of March 31, 2020	$	(497)

¹The current provision for expected credit losses includes incremental reserves related to our assessments of COVID-19 impacts of $38 million.

²Other includes $64 million of impact related to the adoption of Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

Contract Assets and Liabilities (Notes)

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition [Text Block]

Contract Assets and Liabilities. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. Total contract assets and contract liabilities as of March 31, 2020 and December 31, 2019 are as follows:


(dollars in millions)	March 31, 2020		December 31, 2019
Contract assets, current	$	4,549	$	4,184
Contract assets, noncurrent (included within Other assets)	1,277		1,338
Total contract assets	5,826		5,522
Contract liabilities, current	(6,384)		(6,180)
Contract liabilities, noncurrent	(5,554)		(5,732)
Total contract liabilities	(11,938)		(11,912)
Net contract liabilities	$	(6,112)	$	(6,390)

Contract assets increased $304 million during the quarter ended March 31, 2020 due to revenue recognition in excess of customer billings, primarily on Pratt & Whitney military and commercial aftermarket service agreements. Contract liabilities increased $26 million during the quarter ended March 31, 2020 due to customer billings in excess of revenue recognized at Otis of $278 million, primarily offset by a contract settlement at Pratt & Whitney. We recognized revenue of $2.2 billion during the quarter ended March 31, 2020 related to contract liabilities as of December 31, 2019.

Total contract assets include an allowance for credit losses of $58 million as of March 31, 2020, of which $29 million is attributed to the estimated impact of COVID-19. Changes in the allowance were not material for the quarter ended March 31, 2020.

Inventory

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Inventory [Text Block]

Inventory, net


(dollars in millions)	March 31, 2020		December 31, 2019
Raw materials	$	3,576	$	3,357
Work-in-process	2,850		2,726
Finished goods	5,080		4,867
	$	11,506	$	10,950

Raw materials, work-in-process and finished goods are net of valuation reserves of $1,386 million and $1,377 million as of March 31, 2020 and December 31, 2019, respectively.

Borrowings and Lines of Credit

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Borrowings and Lines of Credit [Text Block]

Note 6: Borrowings and Lines of Credit


(dollars in millions)	March 31, 2020		December 31, 2019
Commercial paper	$	500	$	—
Other borrowings	1,225		2,364
Total short-term borrowings	$	1,725	$	2,364

In preparation for and in anticipation of the Separation Transactions, the Distributions and the Raytheon Merger, the Company, Otis and Carrier entered into, and the Company terminated, a number of credit agreements in the quarter ended March 31, 2020.

As of March 31, 2020, we had credit agreements with various banks permitting aggregate borrowings of up to $4.35 billion, including: a $2.20 billion revolving credit agreement and a $2.15 billion multicurrency revolving credit agreement, both of which were terminated on April 3, 2020 upon the completion of the Raytheon Merger. 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 March 31, 2020, our maximum commercial paper borrowing limit was $4.35 billion. There was $500 million of commercial paper borrowings as of March 31, 2020. 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. Generally, 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.

On March 23, 2020, we entered into a $500 million term loan credit agreement which matures on the earlier of June 18, 2020 and the date that is 30 days after the Raytheon Merger. On March 20, 2020, we entered into a $500 million term loan credit agreement which will mature on June 18, 2020. As of March 31, 2020, we had borrowed $1.0 billion under these term loan credit agreements. On April 28, 2020, we repaid $500 million borrowed under the term loan credit agreement entered into on March 23, 2020. On May 5, 2020, we repaid $500 million borrowed under the term loan credit agreement entered into on March 20, 2020.

As of March 31, 2020, Carrier entered into a revolving credit agreement with various banks permitting aggregate borrowings of up to $2.0 billion pursuant to an unsecured, unsubordinated 5-year revolving credit agreement, maturing on February 10, 2025. This credit agreement became available upon Carrier's separation on April 3, 2020.

As of March 31, 2020, Otis entered into a revolving credit agreement with various banks permitting aggregate borrowings of up to $1.5 billion pursuant to an unsecured, unsubordinated 5-year revolving credit agreement, maturing on February 10, 2025. This credit agreement became available upon Otis' separation on April 3, 2020.

On February 10, 2020, Otis entered into a term loan credit agreement providing for a $1.0 billion unsecured, unsubordinated 3-year loan credit agreement which matures on February 10, 2023. On March 27, 2020 Otis drew on the full amount of the term loan and distributed the full proceeds to Raytheon Technologies in connection with the separation. The borrowings under the term loan agreement are classified as long-term debt on the Condensed Consolidated Balance Sheet as of March 31, 2020.

On February 10, 2020, Carrier entered into a term loan credit agreement providing for a $1.75 billion unsecured, unsubordinated 3-year loan credit agreement which matures February 10, 2023. On March 27, 2020, Carrier drew on the full amount of the term loan and distributed the full proceeds to Raytheon Technologies in connection with the separation. The borrowings under the term loan agreement is classified as long-term debt on the Condensed Consolidated Balance Sheet as of March 31, 2020.

During the quarter ended March 31, 2020, we had a $2.0 billion revolving credit agreement and a $4.0 billion term loan credit agreement, both of which we entered into on March 15, 2019 and which would have matured 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 $2.1 billion under the $4.0 billion term credit agreement, which were repaid during the quarter ended March 31, 2020. As of March 31, 2020, the $2.0 billion revolving credit agreement and the $4.0 billion term loan credit agreement were terminated.

Long-term debt consisted of the following:


(dollars in millions)	March 31, 2020		December 31, 2019
4.875% notes due 2020	$	—	$	171
4.500% notes due 2020	—		1,250
1.900% notes due 2020	—		1,000
EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value) ²	824		831
8.750% notes due 2021	250		250
3.100% notes due 2021 ⁴	250		250
3.350% notes due 2021	—		1,000
LIBOR plus 0.650% floating rate notes due 2021 ³	—		750
1.950% notes due 2021	—		750
1.125% notes due 2021 (€950 million principal value)	—		1,053
2.300% notes due 2022	—		500
2.800% notes due 2022 ⁴	1,100		1,100
3.100% notes due 2022	—		2,300
1.923% notes due 2023 ⁶	500		—
LIBOR plus 1.125% Term Loan due 2023 (Otis) ⁶	1,000		—
LIBOR plus 0.45% floating rates due 2023 ⁶	500		—
1.250% notes due 2023 (€750 million principal value)	—		831
LIBOR plus 1.125% Term Loan due 2023 (Carrier) ⁶	1,750		—


3.650% notes due 2023 ¹	581		2,250
3.700% notes due 2023 ⁴	400		400
2.800% notes due 2024	—		800
3.200% notes due 2024 ⁴	950		950
1.150% notes due 2024 (€750 million principal value)	—		831
2.056% notes due 2025 ⁶	1,300		—
2.242% notes due 2025 ⁶	2,000		—
3.950% notes due 2025 ¹	1,500		1,500
1.875% notes due 2026 (€500 million principal value)	—		554
2.650% notes due 2026 ¹	719		1,150
2.293% notes due 2027 ⁶	500		—
2.493% notes due 2027 ⁶	1,250		—
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	549		554
2.565% notes due 2030 ⁶	1,500		—
2.722% notes due 2030 ⁶	2,000		—
5.400% notes due 2035 ¹	600		600
6.050% notes due 2036 ¹	600		600
6.800% notes due 2036 ¹	134		134
7.000% notes due 2038	159		159
6.125% notes due 2038 ¹	1,000		1,000
4.450% notes due 2038 ¹	750		750
3.112% notes due 2040 ⁶	750		—
3.377% notes due 2040 ⁶	1,500		—
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
3.362% notes due 2050 ⁶	750		—
3.577% notes due 2050 ⁶	2,000
Project financing obligations ⁵	316		309
Other (including finance leases)	268		331
Total principal long-term debt	44,941		41,599
Other (fair market value adjustments, discounts and debt issuance costs)	(347)		(315)
Total long-term debt	44,594		41,284
Less: current portion	1,362		3,496
Long-term debt, net of current portion	$	43,232	$	37,788

1 We may redeem these notes at our option pursuant to their terms.

2 The three-month EURIBOR rate as of March 31, 2020 was approximately -0.363%. 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 March 31, 2020 was approximately 1.4505%.

4 Rockwell Collins debt which remained outstanding following the Rockwell Acquisition.

5 Project financing obligations are associated with the sale of rights to unbilled revenues related to the ongoing activity of an entity owned by Carrier.

6 The debt issuances reflect additional debt incurred by Otis and Carrier and attributed to those businesses post Separation Transactions. The net proceeds of these issuances were primarily utilized to extinguish Raytheon Technologies short-term and long-term debt in order to achieve the applicable net indebtedness required by the merger agreement with Raytheon.

We had no long-term debt issuances in 2019 and had the following issuances of debt during the quarter ended March 31, 2020:


(dollars in millions)
Issuance Date	Description of Notes	Aggregate Principal Balance
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 2025¹	2,000
	2.293% notes due 2027¹	500
	2.493% notes due 2027¹	1,250
	2.565% notes due 2030¹	1,500
	2.722% notes due 2030¹	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
March 27, 2020	Term Loan due 2023 (Otis)¹	1,000
	Term Loan due 2023 (Carrier)¹	1,750
				$	17,300

1 The debt issuances and term loan draws reflect additional debt incurred by Otis and Carrier and attributed to those businesses post Separation Transactions. The net proceeds of these issuances were primarily utilized to extinguish Raytheon Technologies short term and long term debt in order to achieve the applicable net indebtedness required by the merger agreement with Raytheon.

We had the following repayments of long-term debt during the quarter ended March 31, 2020 and the year-ended December 31, 2019:


(dollars in millions)
Repayment Date	Description of Notes	Aggregate Principal Balance
March 29, 2020	4.500% notes due 2020 ^2,3	$	1,250
	1.125% notes due 2021 (€950 million principal value) ^2,3	1,082
	1.250% notes due 2023 (€750 million principal value) ^2,3	836
	1.150% notes due 2024 (€750 million principal value) ^2,3	841
	1.875% notes due 2026 (€500 million principal value) ^2,3	567
March 3, 2020	1.900% notes due 2020 ^2,3	1,000
	3.350% notes due 2021 ^2,3	1,000
	LIBOR plus 0.650% floating rate notes due 2021 ^2,3	750
	1.950% notes due 2021 ^2,3	750
	2.300% notes due 2022 ^2,3	500
	3.100% notes due 2022 ^2,3	2,300
	2.800% notes due 2024 ^2,3	800
March 2, 2020	4.875% notes due 2020 ^2,3	171
February 28, 2020	3.650% notes due 2023 ^2,3	1,669
	2.650% notes due 2026 ^2,3	431
				$	13,947
November 15, 2019	8.875% notes due 2019	$	271
November 13, 2019	EURIBOR plus 0.15% floating rate notes due 2019	831
November 1, 2019	LIBOR plus 0.350% floating rate notes due 2019	350
	1.500% notes due 2019	650
July 15, 2019	1.950% notes due 2019 ¹	300
	5.250% notes due 2019 ¹	300
				$	2,702

1 The notes and term loan were acquired in connection with the Rockwell Collins acquisition and have been subsequently repaid.

2 Extinguishment of Raytheon Technologies short term and long term debt in order to achieve the net indebtedness required by the merger agreement with Raytheon.

3 In connection with the early repayment of outstanding principal, Raytheon Technologies paid approximately $660 million of debt extinguishment costs.

The average maturity of our long-term debt at March 31, 2020 is approximately 14 years. The average interest expense rate on our total borrowings for the quarters ended March 31, 2020 and 2019 was as follows:


	Quarter Ended March 31,
	2020		2019
Average interest expense rate	3.6	%	3.6	%

We have an existing universal shelf registration statement filed with the SEC for an indeterminate amount of debt and equity securities for future issuance, subject to our internal limitation on the amount of debt to be issued under this shelf registration statement.

Employee Benefit Plans

3 Months Ended

Mar. 31, 2020

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

Employee Benefit Plans

Pension and Postretirement Plans. We sponsor both funded and unfunded domestic and foreign defined pension and other postretirement benefit plans, and defined contribution plans. Contributions to our plans were as follows:


	Quarter Ended March 31,
(dollars in millions)	2020		2019
Defined benefit plans	$	39	$	32
Defined contribution plans	227		153

We made no contributions to our domestic defined benefit pension plans for the quarters ended March 31, 2020 and 2019. Included in the current year contributions to employer sponsored defined contribution plans for the quarter ended March 31, 2020 is $48 million of additional contributions resulting from the 2019 amendment to our domestic pension plans whereby plan participants ceased accrual of additional benefits for future service effective December 31, 2019. The following table illustrates the components of net periodic benefit (income) cost for our defined pension and other postretirement benefit plans:


	Pension Benefits Quarter Ended March 31,						Other Postretirement Benefits Quarter Ended March 31,
(dollars in millions)	2020		2019		2020		2019
Service cost	$	55	$	87	$	1	$	1
Interest cost	272		340		6		8
Expected return on plan assets	(573)		(607)		(1)		(1)
Amortization of prior service cost (credit)	13		5		(1)		(11)
Recognized actuarial net loss (gain)	94		53		(3)		(3)
Net settlement and curtailment loss	1		8		—		—
Total net periodic benefit (income) cost	$	(138)	$	(114)	$	2	$	(6)

Restructuring and Other Costs

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Other Costs [Text Block]

Restructuring Costs

During the quarter ended March 31, 2020, we recorded net pre-tax restructuring costs totaling $19 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:


(dollars in millions)
Otis	$	6
Carrier	5
Pratt & Whitney	—
Collins Aerospace Systems	6
Eliminations and other	2
Total	$	19

Restructuring charges incurred during the quarter ended March 31, 2020 primarily relate to actions initiated during 2020 and 2019, and were recorded as follows:


(dollars in millions)
Cost of sales	$	6
Selling, general and administrative	13

Total	$	19

2020 Actions. During the quarter ended March 31, 2020, we recorded net pre-tax restructuring costs of $8 million, comprised of $2 million in cost of sales and $6 million in selling, general and administrative expenses. The 2020 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field and manufacturing operations.

The following table summarizes the accrual balance and utilization for the 2020 restructuring actions for the quarter ended March 31, 2020:


(dollars in millions)	Severance		Facility Exit and Other Costs		Total


Net pre-tax restructuring costs	$	8	—		$	8
Utilization, foreign exchange and other costs	(3)		—		(3)
Balance at March 31, 2020	$	5	$	—	$	5

The following table summarizes expected, incurred and remaining costs for the 2020 restructuring actions by segment:


(dollars in millions)	Expected Costs		Costs Incurred Quarter Ended March 31, 2020		Remaining Costs at March 31, 2020
Otis	$	5	$	(4)	$	1
Carrier	4		(2)		2
Pratt & Whitney	—		—		—
Collins Aerospace Systems	6		(1)		5
Eliminations and other	2		(1)		1
Total	$	17	$	(8)	$	9

We are targeting to complete the majority of the remaining workforce and facility related cost reduction actions during 2020 and 2021. In response to the anticipated significant impact of the COVID-19 pandemic on our future operating results, the Company is likely to initiate further actions in 2020, however no specific plans for other significant actions have been finalized at this time.

2019 Actions. During the quarter ended March 31, 2020, we recorded net pre-tax restructuring costs totaling $10 million for restructuring actions initiated in 2019, including $2 million in cost of sales and $8 million in selling, general and administrative expenses. The 2019 actions relate to ongoing cost reduction efforts, including workforce reductions, consolidation of field and manufacturing operations, and costs to exit legacy programs. The following table summarizes the accrual balances and utilization for the 2019 restructuring actions for the quarter ended March 31, 2020:


(dollars in millions)	Severance		Facility Exit, and Other Costs		Total
Quarter Ended March 31, 2020
Restructuring accruals at December 31, 2019	$	105	$	13	$	118
Net pre-tax restructuring costs	8		2		10
Utilization, foreign exchange and other costs	(35)		(3)		(38)
Balance at March 31, 2020	$	78	$	12	$	90

The following table summarizes expected, incurred and remaining costs for the 2019 restructuring actions by segment:


(dollars in millions)	Expected Costs		Costs Incurred in 2019		Costs Incurred Quarter Ended March 31, 2020		Remaining Costs at March 31, 2020
Otis	$	63	$	(45)	$	(2)	$	16
Carrier	120		(110)		(3)		7
Pratt & Whitney	133		(133)		—		—
Collins Aerospace Systems	118		(27)		(5)		86
Eliminations and other	6		(6)		—		—
Total	$	440	$	(321)	$	(10)	$	109

2018 and Prior Actions. During the quarter ended March 31, 2020, we recorded net pre-tax restructuring costs totaling $1 million for restructuring actions initiated in 2018 and prior. As of March 31, 2020, we have approximately $58 million of accrual balances remaining related to 2018 and prior actions.

Financial Instruments

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments [Text Block]

Financial Instruments

We enter into derivative instruments primarily for risk management purposes, including derivatives designated as hedging instruments under the Derivatives and Hedging Topic of the FASB ASC and those utilized as economic hedges. We operate internationally and, in the normal course of business, are exposed to fluctuations in interest rates, foreign exchange rates and commodity prices. These fluctuations can increase the costs of financing, investing and operating the business. We have used derivative instruments, including swaps, forward contracts and options, to manage certain foreign currency, interest rate and commodity price exposures.

The four quarter rolling average of the notional amount of foreign exchange contracts hedging foreign currency transactions was $18.2 billion and $17.8 billion at March 31, 2020 and December 31, 2019, respectively.

The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheets for derivative instruments as of March 31, 2020 and December 31, 2019:


(dollars in millions)	Balance Sheet Location	March 31, 2020		December 31, 2019
Derivatives designated as hedging instruments:
Foreign exchange contracts	Asset Derivatives:
	Other assets, current	$	10	$	11
	Other assets	2		13
	Total asset derivatives	$	12	$	24
	Liability Derivatives:
	Accrued liabilities	(223)		(72)
	Other long-term liabilities	(329)		(98)
	Total liability derivatives	$	(552)	$	(170)
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Asset Derivatives:
	Other assets, current	$	122	$	27
	Other assets	3		5
	Total asset derivatives	$	125	$	32
	Liability Derivatives:
	Accrued liabilities	(41)		(116)
	Other long-term liabilities	(1)		(1)
	Total liability derivatives	$	(42)	$	(117)

The effect of cash flow hedging relationships on Accumulated other comprehensive income and on the Condensed Consolidated Statement of Operations for the quarters ended March 31, 2020 and 2019 are presented in the table below. The amounts of loss are attributable to foreign exchange contract activity and are recorded as a component of Product sales when reclassified from Accumulated other comprehensive income.


	Quarter Ended March 31,
(dollars in millions)	2020		2019
(Loss) gain recorded in Accumulated other comprehensive loss	$	(404)	$	7
Loss reclassified from Accumulated other comprehensive loss into Product sales	29		4

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.

As of March 31, 2020, we have €1.25 billion of euro-denominated long-term debt outstanding, €750 million variable rate debt due May 2020, which has been de-designated and resides in Long-term debt currently due. As of March 31, 2020, €500 million of euro-denominated long-term debt qualifies as a net investment hedge against our investments in European businesses. As of March 31, 2020, the net investment hedge is deemed to be effective.

Assuming current market conditions continue, a $140 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 March 31, 2020, all derivative contracts accounted for as cash flow hedges will mature by April 2024.

The effect of derivatives not designated as hedging instruments within Other income, net, on the Condensed Consolidated Statement of Operations was as follows:


	Quarter Ended March 31,
(dollars in millions)	2020		2019
Foreign exchange contracts	$	(49)	$	18

Fair Value Measurements

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurements

In accordance with the provisions of ASC 820, the following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and non-recurring basis in our Condensed Consolidated Balance Sheet as of March 31, 2020 and December 31, 2019:


	March 31, 2020
(dollars in millions)	Total		Level 1		Level 2		Level 3
Recurring fair value measurements:
Available-for-sale securities	$	52	$	52	$	—	$	—
Derivative assets	137		—		137		—
Derivative liabilities	(594)		—		(594)		—


	December 31, 2019
(dollars in millions)	Total		Level 1		Level 2		Level 3
Recurring fair value measurements:
Available-for-sale securities	$	57	$	57	$	—	$	—
Derivative assets	56		—		56		—
Derivative liabilities	(287)		—		(287)		—

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 March 31, 2020, there has not been any significant impact to the fair value of our derivative liabilities due to our own credit risk. Similarly, there has not been any significant adverse impact to our derivative assets based on our evaluation of our counterparties' credit risks.

The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Condensed Consolidated Balance Sheet at March 31, 2020 and December 31, 2019:


	March 31, 2020						December 31, 2019
(dollars in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term receivables	$	364	$	360	$	344	$	347
Customer financing notes receivable	309		283		283		283
Short-term borrowings	(1,725)		(1,725)		(2,364)		(2,364)
Long-term debt (excluding finance leases)	(44,510)		(47,738)		(41,199)		(46,202)
Long-term liabilities	(339)		(328)		(336)		(322)

The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Condensed Consolidated Balance Sheet at March 31, 2020 and December 31, 2019:


	March 31, 2020
(dollars in millions)	Total		Level 1		Level 2		Level 3
Long-term receivables	$	360	$	—	$	360	$	—
Customer financing notes receivable	283		—		283		—
Short-term borrowings	(1,725)		—		(500)		(1,225)
Long-term debt (excluding finance leases)	(47,738)		—		(44,642)		(3,096)
Long-term liabilities	(328)		—		(328)		—


	December 31, 2019
(dollars in millions)	Total		Level 1		Level 2		Level 3
Long-term receivables	$	347	$	—	$	347	$	—
Customer financing notes receivable	283		—		283		—
Short-term borrowings	(2,364)		—		—		(2,364)
Long-term debt (excluding finance leases)	(46,202)		—		(45,802)		(400)
Long-term liabilities	(322)		—		(322)		—

We had commercial aerospace financing and other contractual commitments totaling approximately $14.8 billion and $15.0 billion as of March 31, 2020 and December 31, 2019, respectively, related to commercial aircraft and certain contractual rights to provide product on new aircraft platforms. Associated risks on these commitments from changes in interest rates are mitigated because interest rates are variable during the commitment term and are set at the date of funding based on current market conditions, the fair value of the underlying collateral and the credit worthiness of the customers. As a result, the fair value of these financings is expected to equal the amounts funded.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Long-Term Financing Receivables

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Long-Term Financing Receivables [Text Block]

Long-Term Financing Receivables

Our long-term financing receivables primarily represent balances related to the aerospace businesses such as long-term trade accounts receivable, leases, and notes receivable. We also have other long-term receivables in our commercial businesses; however, both the individual and aggregate amounts of those other receivables are not significant. The following table summarizes the balance by class of aerospace business related long-term receivables as of March 31, 2020 and December 31, 2019:


(dollars in millions)	March 31, 2020		December 31, 2019
Long-term trade accounts receivable	$	251	$	251
Notes and leases receivable	261		265
Total long-term receivables	$	512	$	516

Customer credit ratings range from customers with an extremely strong capacity to meet financial obligations to customers whose uncollateralized receivable is in default. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to the allowance for credit losses on long-term receivables. Based upon the customer credit ratings, approximately $240 million and $150 million of our total long-term receivables were considered to bear high credit risk as of March 31, 2020 and December 31, 2019, respectively.

Reserves for credit losses on long term receivables relate to specifically identified receivables that are evaluated individually for impairment. For long-term trade accounts receivable, we evaluate credit risk and collectability individually to determine if an allowance is necessary. For notes and leases receivable, we determine a specific reserve for exposure based on the difference between the carrying value of the receivable and the estimated fair value of the related collateral in connection with the evaluation of credit risk and collectability. Our total long-term receivables reflected in the table above, include reserves of $33 million and $17 million as of March 31, 2020 and December 31, 2019, respectively. Changes in the allowance for credit losses were not material for the quarter ended March 31, 2020.

At March 31, 2020 and December 31, 2019, we did not have any significant balances that are considered to be delinquent, on non-accrual status, past due 90 days or more, or considered to be impaired.

Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss) Note [Text Block]

Accumulated Other Comprehensive LossA summary of the changes in each component of Accumulated other comprehensive loss, net of tax for the quarters ended March 31, 2020 and 2019 is provided below:


(dollars in millions)	Foreign Currency Translation		Defined Benefit Pension and Post- retirement Plans		Unrealized Hedging (Losses) Gains		Accumulated Other Comprehensive (Loss) Income
Quarter Ended March 31, 2020
Balance at December 31, 2019	$	(3,211)	$	(6,772)	$	(166)	$	(10,149)
Other comprehensive (loss) income before reclassifications, net	(1,445)		8		(403)		(1,840)
Amounts reclassified, pre-tax	—		102		29		131
Tax benefit (expense)	9		(31)		92		70

Balance at March 31, 2020	$	(4,647)	$	(6,693)	$	(448)	$	(11,788)


(dollars in millions)	Foreign Currency Translation		Defined Benefit Pension and Post- retirement Plans		Unrealized Hedging (Losses) Gains		Accumulated Other Comprehensive (Loss) Income
Quarter ended March 31, 2019
Balance at December 31, 2018	$	(3,442)	$	(5,718)	$	(173)	$	(9,333)
Other comprehensive income (loss) before reclassifications, net	530		(1)		7		536
Amounts reclassified, pre-tax	1		44		4		49
Tax expense	(13)		(10)		(3)		(26)
ASU 2018-02 adoption impact	(8)		(737)		—		(745)
Balance at March 31, 2019	$	(2,932)	$	(6,422)	$	(165)	$	(9,519)

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220). The standard allowed companies to reclassify to retained earnings the stranded tax effects in Accumulated other comprehensive income (AOCI) from the Tax Cuts and Jobs Act ("TCJA"). We elected to reclassify the income tax effects of TCJA from AOCI of $745 million to retained earnings, effective January 1, 2019.

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 benefit for each period presented (see Note 8 for additional details).

All noncontrolling interests with redemption features, such as put options, that are not solely within our control (redeemable noncontrolling interests) are reported in the mezzanine section of the Condensed Consolidated Balance Sheet, between liabilities and equity, at the greater of redemption value or initial carrying value.

Variable Interest Entities

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity Disclosure [Text Block]

Note 14: Variable Interest EntitiesPratt & Whitney holds a 61% net interest in the International Aero Engines AG (IAE) collaboration with MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC) and a 49.5% ownership interest in IAE. IAE's business purpose is to coordinate the design, development, manufacturing and product support of the V2500 program through involvement with the collaborators. Additionally, Pratt & Whitney, JAEC and MTU are participants in International Aero Engines, LLC (IAE LLC), whose business purpose is to coordinate the design, development, manufacturing and product support for the PW1100G-JM engine for the Airbus A320neo aircraft and the PW1400G-JM engine for the Irkut MC21 aircraft. Pratt & Whitney holds a 59% net interest and a 59% ownership interest in IAE LLC. IAE and IAE LLC retain limited equity with the primary economics of the programs passed to the participants. As such, we have determined that IAE and IAE LLC are variable interest entities with Pratt & Whitney the primary beneficiary. IAE and IAE LLC have, therefore, been consolidated. The carrying amounts and classification of assets and liabilities for variable interest entities in our Condensed Consolidated Balance Sheet are as follows:


(dollars in millions)	March 31, 2020		December 31, 2019
Current assets	$	4,990	$	4,573
Noncurrent assets	2,048		1,919
Total assets	$	7,038	$	6,492

Current liabilities	$	5,352	$	4,916
Noncurrent liabilities	2,240		2,149
Total liabilities	$	7,592	$	7,065

Guarantees

3 Months Ended

Mar. 31, 2020

Service and Product Warranties and Product Performance Guarantees [Abstract]

Guarantees [Text Block]

Guarantees

We extend a variety of financial, market value and product performance guarantees to third parties. There have been no material changes to financial guarantees outstanding since December 31, 2019. The changes in the carrying amount of service and product warranties and product performance guarantees for the quarters ended March 31, 2020 and 2019 are as follows:


(dollars in millions)	2020		2019
Balance as of January 1	$	1,548	$	1,449
Warranties and performance guarantees issued	133		137
Settlements made	(129)		(110)
Other	(16)		9
Balance as of March 31	$	1,536	$	1,485

Contingent Liabilities	3 Months Ended
Contingent Liabilities	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingent Liabilities [Text Block]	Note 16: Contingent Liabilities Summarized below are the matters previously described in Note 18 of the Notes to the Consolidated Financial Statements in our 2019 Annual Report, incorporated by reference in our 2019 Form 10-K, updated as applicable. Except as otherwise noted, while we are unable to predict the final outcome, based on information currently available, we do not believe that resolution of any of the following matters will have a material adverse effect upon our competitive position, results of operations, cash flows or financial condition. Environmental. Our operations are subject to environmental regulation by federal, state and local authorities in the United States and authorities with jurisdiction over our foreign operations. As described in Note 1 to the Consolidated Financial Statements in our 2019 Annual Report, we have accrued for the costs of environmental remediation activities, including but not limited to investigatory, remediation, operating and maintenance costs and performance guarantees, and periodically reassess these amounts. We believe that the likelihood of incurring losses materially in excess of amounts accrued is remote. Additional information pertaining to environmental matters is included in Note 1 to the Consolidated Financial Statements in our 2019 Annual Report. Government. In the ordinary course of business, the Company and its subsidiaries and our properties are subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations and threatened legal actions and proceedings. For example, we are now, and believe that, in light of the current U.S. Government contracting environment, we will continue to be the subject of one or more U.S. Government investigations. Our contracts with the U.S. Government are also subject to audits. Agencies that oversee contract performance include: the Defense Contract Audit Agency (“DCAA”); the Defense Contract Management Agency (“DCMA”); the Inspectors General of the U.S. Department of Defense (“DoD”) and other departments and agencies; the Government Accountability Office (“GAO”); the Department of Justice (“DOJ”); and Congressional Committees. Other areas of our business operations may also be subject to audit and investigation by these and other agencies. From time to time, agencies investigate or conduct audits to determine whether our operations are being conducted in accordance with applicable requirements. Such investigations and audits may be initiated due to a number of reasons, including as a result of a whistleblower complaint. Such investigations and audits could result in administrative, civil or criminal liabilities, including repayments, fines, treble or other damages, forfeitures, restitution, or penalties being imposed upon us, the suspension of government export licenses or the suspension or debarment from future U.S. government contracting. U.S. government investigations often take years to complete and many may result in no adverse action against us. 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. 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. Our final allowable incurred costs for each year are also subject to audit and have, from time to time, resulted in disputes between us and the U.S. government, with litigation resulting at the Court of Federal Claims (“COFC”) or the Armed Services Board of Contract Appeals (“ASBCA”) or their related courts of appeals. In addition, the DOJ has, from time to time, convened grand juries to investigate possible irregularities by us. We also provide products and services to customers outside of the U.S., and those sales are subject to local government laws, regulations and procurement policies and practices. Our compliance with such local government regulations or any applicable U.S. government regulations (e.g., the Foreign Corrupt Practices Act (“FCPA”) and International Traffic in Arms Regulations (“ITAR”)) may also be investigated or audited. 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. Other than as specifically disclosed in this Form 10-Q, we do not expect these audits, investigations or disputes to have a material effect on our financial position, results of operations or liquidity, either individually or in the aggregate. Legal Proceedings. The Company and its subsidiaries are subject to various litigation matters across jurisdictions, updates to certain of which are set forth below. 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 $592 million through March 31, 2020). 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 $101.8 million through March 31, 2020). 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 concluded post-hearing briefing in January 2020,and now await a decision from the ASBCA. 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 $60 million through March 31, 2020), which we also believe is without merit and which Pratt & Whitney appealed to the ASBCA in January 2019. German Tax Litigation As previously disclosed, Raytheon Technologies has been involved in administrative review proceedings with the German Tax Office, which concern approximately €215 million (approximately $237 million) of tax benefits that we have claimed related to a 1998 reorganization of the corporate structure of Otis operations in Germany. Upon audit, these tax benefits were disallowed by the German Tax Office. Raytheon Technologies estimates interest associated with the aforementioned tax benefits is an additional approximately €118 million (approximately $130 million). On August 3, 2012, we filed suit in the local German Tax Court (Berlin-Brandenburg). In March 2016, the local German Tax Court dismissed our suit, and we appealed this decision to the German Federal Tax Court (FTC). Following a hearing in July 2018, the FTC remanded the matter to the local German Tax Court for further proceedings. In 2015, Raytheon Technologies made tax and interest payments to German tax authorities of €275 million (approximately $300 million) in order to avoid additional interest accruals pending final resolution of this matter. These proceedings concern Raytheon Technologies' Otis business, which, as previously disclosed, separated from UTC on April 3, 2020 to form Otis Worldwide Corporation (Otis). The liability underlying these proceedings remained with Otis in connection with the Separation Transactions and the Distributions and is disclosed in its registration statement on Form 10 filed with the SEC on March 11, 2020. Asbestos Matters As previously disclosed, like many other industrial companies, we and our subsidiaries have been named as defendants in lawsuits alleging personal injury as a result of exposure to asbestos integrated into certain of our products or business premises. While we have never manufactured asbestos and no longer incorporate it in any currently-manufactured products, certain of our historical products, like those of many other manufacturers, have contained components incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or were covered in full or in part by insurance or other forms of indemnity. Additional cases were litigated and settled without any insurance reimbursement. The amounts involved in asbestos related claims were not material individually or in the aggregate in any year. The amounts recorded by the Company for asbestos-related liabilities are based on currently available information and assumptions that we believe are reasonable and are made with input from outside actuarial experts. The estimated range of total liabilities to resolve all pending and unasserted potential future asbestos claims through 2059 is approximately $325 million to $390 million. Where no amount within a range of estimates is more likely, the minimum is accrued. We have recorded the minimum amount of $325 million, which is principally recorded in Other long-term liabilities on our Condensed Consolidated Balance Sheet as of March 31, 2020. This amount is on a pre-tax basis, not discounted, and excludes the Company’s legal fees to defend the asbestos claims, which will continue to be expensed by the Company as they are incurred. In addition, the Company has an insurance recovery receivable for probable asbestos related recoveries of approximately $140 million, which is included primarily in Other assets on our Condensed Consolidated Balance Sheet as of March 31, 2020. A portion of these lawsuits and liabilities concerned Raytheon Technologies’ Otis and Carrier businesses, each of which, as previously disclosed, separated from UTC on April 3, 2020 to form Otis and Carrier Global Corporation (Carrier), respectively, and the respective liabilities remained with each new company. As disclosed in Carrier’s registration statement on Form 10 filed with the SEC on March 11, 2020, the estimated range of total liabilities to resolve all pending and unasserted potential future asbestos claims through 2059 made against Carrier and its subsidiaries and affiliates is $255 million to $290 million. As disclosed in Otis’s registration statement on Form 10, the estimated range of total liabilities to resolve all pending and unasserted potential future asbestos claims through 2059 made against Otis and its subsidiaries and affiliates is $24 million to $45 million. After excluding all pending and unasserted potential future asbestos claims through 2059 against Carrier and Otis, we do not expect that the range of total net liabilities (estimated total liabilities minus insurance recovery receivable) for pending and unasserted potential future asbestos claims through 2059 against Raytheon Technologies, including its subsidiaries and affiliates, will have a material adverse effect on our financial position, results of operations or cash flows. The amounts recorded by the Company for asbestos-related liabilities and insurance recoveries are based on currently available information and assumptions that we believe are reasonable. Our actual liabilities or insurance recoveries could be higher or lower than those recorded if actual results vary significantly from the assumptions. Key variables in these assumptions include the number and type of new claims to be filed each year, the outcomes or resolution of such claims, the average cost of resolution of each new claim, the amount of insurance available, the allocation methodologies, the contractual terms with each insurer with whom we have reached settlements, the resolution of coverage issues with other excess insurance carriers with whom we have not yet achieved settlements, and the solvency risk with respect to our insurance carriers. Other factors that may affect our future liability include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, legal rulings that may be made by state and federal courts, and the passage of state or federal legislation. At the end of each year, the Company will evaluate all of these factors and, with input from an outside actuarial expert, make any necessary adjustments to both our estimated asbestos liabilities and insurance recoveries. Other. As described in Note 15 of this Form 10-Q and Note 17 to the Consolidated Financial Statements in our 2019 Annual Report, we extend performance and operating cost guarantees beyond our normal warranty and service policies for extended periods on some of our products. We have accrued our estimate of the liability that may result under these guarantees and for service costs that are probable and can be reasonably estimated. We also have other commitments and contingent liabilities related to legal proceedings, self-insurance programs and matters arising out of the normal course of business. We accrue contingencies based upon a range of possible outcomes. If no amount within this range is a better estimate than any other, then we accrue the minimum amount. In the ordinary course of business, the Company and its subsidiaries are also routinely defendants in, parties to or otherwise subject to many pending and threatened legal actions, claims, disputes and proceedings. These matters are often based on alleged violations of contract, product liability, warranty, regulatory, environmental, health and safety, employment, intellectual property, tax and other laws. In some instances, claims for substantial monetary damages are asserted against the Company and its subsidiaries and could result in fines, penalties, compensatory or treble damages or non-monetary relief. We do not believe that these matters will have a material adverse effect upon our competitive position, results of operations, cash flows or financial condition.

Segment Financial Data

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 17: Segment Financial Data

Our operations prior to the Raytheon Merger, the Separation Transactions and the Distributions are classified into four principal segments: Otis, Carrier, Pratt & Whitney, and Collins Aerospace Systems. The segments are generally based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services.

Total sales by segment include inter-segment sales, which are generally made at prices approximating those that the selling entity is able to obtain on external sales. Results for the quarters ended March 31, 2020 and 2019 are as follows:


	Net Sales						Operating Profits						Operating Profit Margins
(dollars in millions)	2020		2019		2020		2019		2020		2019
Otis	$	2,966	$	3,096	$	371	$	426	12.5	%	13.8	%
Carrier	3,888		4,323		363		529		9.3	%	12.2	%
Pratt & Whitney	5,351		4,817		439		433		8.2	%	9.0	%
Collins Aerospace Systems	6,438		6,513		1,092		856		17.0	%	13.1	%
Total segments	18,643		18,749		2,265		2,244		12.1	%	12.0	%
Eliminations and other	(433)		(384)		(343)		(101)
General corporate expenses	—		—		(115)		(98)
Consolidated	$	18,210	$	18,365	$	1,807	$	2,045	9.9	%	11.1	%

Geographic sales are attributed to the geographic regions based on their location of origin. Segment information for the quarters ended March 31, 2020 and 2019 is as follows:


	2020																		2019
(dollars in millions)	Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total		Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total
United States	$	890	$	2,008	$	4,300	$	4,790	$	11,988	$	912	$	2,214	$	3,732	$	4,730	$	11,588
Europe	942		1,179		106		918		3,145		955		1,292		108		1,024		3,379
Asia Pacific	913		518		230		165		1,826		976		612		255		189		2,032
Other*	221		183		715		565		1,684		253		205		722		570		1,750
Total segment	$	2,966	$	3,888	$	5,351	$	6,438	$	18,643	$	3,096	$	4,323	$	4,817	$	6,513	$	18,749
Eliminations and other									(433)										(384)
Consolidated									$	18,210									$	18,365

*Other includes sales to other regions as well as inter-segment sales.

Segment sales disaggregated by product type for the quarters ended March 31, 2020 and 2019 are as follows:


	2020																		2019
(dollars in millions)	Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total		Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total
Commercial and industrial, non aerospace	$	2,966	$	3,888	$	10	$	11	$	6,875	$	3,096	$	4,323	$	23	$	14	$	7,456
Commercial aerospace	—		—		3,693		4,586		8,279		—		—		3,375		4,828		8,203
Military aerospace	—		—		1,648		1,841		3,489		—		—		1,419		1,671		3,090
Total segment	$	2,966	$	3,888	$	5,351	$	6,438	$	18,643	$	3,096	$	4,323	$	4,817	$	6,513	$	18,749
Eliminations and other									(433)										(384)
Consolidated									$	18,210									$	18,365

Segment sales disaggregated by sales type for the quarters ended March 31, 2020 and 2019 are as follows:


	2020																		2019
(dollars in millions)	Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total		Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total
Product	$	1,123	$	3,147	$	3,257	$	5,291	$	12,818	$	1,279	$	3,566	$	2,973	$	5,406	$	13,224
Service	1,843		741		2,094		1,147		5,825		1,817		757		1,844		1,107		5,525
Total segment	$	2,966	$	3,888	$	5,351	$	6,438	$	18,643	$	3,096	$	4,323	$	4,817	$	6,513	$	18,749
Eliminations and other									(433)										(384)
Consolidated									$	18,210									$	18,365

Remaining Performance Obligations	3 Months Ended
Remaining Performance Obligations	Mar. 31, 2020
Remaining Performance Obligations [Abstract]
Remaining Performance Obligation [Text Block]	Remaining Performance ObligationsRemaining performance obligations (RPO) represent the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied. As of March 31, 2020 our total RPO was approximately $132.8 billion compared to $132.7 billion as of December 31, 2019. Of the total RPO as of March 31, 2020, we expect approximately 44% will be recognized as sales over the following 24 months.

Accounting Pronouncements	3 Months Ended
Accounting Pronouncements	Mar. 31, 2020
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements, Policy [Text Block]	Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU and its related amendments (collectively, the Credit Loss Standard) 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 Credit Loss Standard requires consideration of a broader range of information to estimate expected credit losses, including historical information, current economic conditions and a reasonable forecast period. This ASU requires that the statement of operations reflect estimates of expected credit losses for newly recognized financial assets as well as changes in the estimate of expected credit losses that have taken place during the period, which may result in earlier recognition of certain losses. We adopted this standard effective January 1, 2020 utilizing a modified retrospective approach. A cumulative-effect non-cash adjustment to retained earnings as of January 1, 2020 was recorded in the amount of $59 million. The adoption of this standard did not have a material impact on the Company's Condensed Consolidated Financial Statements. We are exposed to credit losses primarily through our sales of products and services to commercial customers which are recorded as trade receivables, contract assets, long-term receivables, and notes and lease receivables on the Condensed Consolidated Balance Sheet. We do not have exposure for credit losses related to sales of products and services to our government customers. Our method for developing our allowance for credit losses involves making informed judgments regarding whether an adjustment is necessary to our historical loss experiences to reflect our expectations around current economic conditions and reasonable and supportable forecast periods, where applicable. We utilize current economic market data as well as other internal and external information available to us to inform our decision making. In certain circumstances we may be able to develop reasonable and supportable forecasts over the contractual term of the financial asset or off-balance sheet exposure. For periods beyond which we are able to make or obtain reasonable and supportable forecasts, we revert to historical loss experience and information. We determine credit ratings for each customer in our portfolio based upon public information and information obtained directly from our customers. We conduct a review of customer credit ratings, published historical credit default rates for different rating categories, and multiple third-party aircraft value publications as a basis to validate the reasonableness of the allowance for credit losses on these balances quarterly or when events and circumstances warrant. In addition to credit quality indicators, factors considered in our evaluation of assessing collectability and risk include: underlying value of any collateral or security interests, significant past due balances, historical losses, and existing economic conditions, including geographic and political risk. A credit limit is established for each customer based on the outcome of this review. Customer credit ratings range from customers with an extremely strong capacity to meet financial obligations, to customers whose uncollateralized receivable is in default. We may require collateral or prepayment to mitigate credit risk. To estimate expected credit losses of financial assets with similar risk characteristics, we determine an asset is impaired when, based on historical experience, current information and a reasonable forecast period, there’s risk that we will be unable to collect amounts due according to the contractual terms of the agreement. We monitor our ongoing credit exposure through reviews of customer balances against contract terms and due dates, current economic conditions, and dispute resolution. Estimated credit losses are written off in the period in which the financial asset is no longer collectible. We can also be exposed to credit losses from off-balance sheet exposures, such as certain financial guarantees and financing commitments. We have assessed these potential exposures and concluded that there are no associated credit losses as of March 31, 2020. 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 annual disclosure requirements for defined benefit plans including several additions, deletions and modifications to the disclosure requirements. The provisions of this ASU are effective for years beginning after December 15, 2020. This standard is required to be applied retrospectively. We do not expect this ASU to have a material effect on our annual disclosures. 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. This ASU did not have a material impact on the Condensed 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 Condensed 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 a material impact on the Condensed 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 Condensed Consolidated Financial Statements.

Acquisitions, Dispositions, Goodwill and Other Intangible Assets Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2020

Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]

Schedule of Goodwill [Table Text Block]

Changes in our goodwill balances for the quarter ended March 31, 2020 were as follows:


(dollars in millions)	Balance as of January 1, 2020		Goodwill Resulting from Business Combinations		Foreign Currency Translation and Other		Balance as of March 31, 2020
Otis	$	1,647	$	—	$	(39)	$	1,608
Carrier	9,807		—		(208)		9,599
Pratt & Whitney	1,563		—		—		1,563
Collins Aerospace Systems	35,025		—		(335)		34,690
Total Segments	48,042		—		(582)		47,460
Eliminations and other	21		—		—		21
Total	$	48,063	$	—	$	(582)	$	47,481

Schedule of Indefinite-Lived Intangible Assets [Table Text Block]

Identifiable intangible assets are comprised of the following:


	March 31, 2020						December 31, 2019
(dollars in millions)	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
Amortized:
Service portfolios	$	2,052	$	(1,600)	$	2,105	$	(1,626)
Patents and trademarks	350		(249)		356		(250)
Collaboration intangible assets	4,940		(990)		4,862		(920)
Customer relationships and other	23,084		(5,795)		23,210		(5,607)
	30,426		(8,634)		30,533		(8,403)
Unamortized:
Trademarks and other¹	3,808		—		3,916		—
Total	$	34,234	$	(8,634)	$	34,449	$	(8,403)

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The following is the expected amortization of intangible assets for the years 2020 through 2025, which reflects the pattern of expected economic benefit on certain aerospace intangible assets. The table below includes the expected amortization of the intangible assets of Otis and Carrier as of March 31, 2020.


(dollars in millions)	Remaining 2020		2021		2022		2023		2024		2025
Amortization expense	$	1,036	$	1,401	$	1,385	$	1,377	$	1,347	$	1,327

Raytheon Company [Member]

Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]

Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block]

Supplemental Pro-Forma Data:


	Quarter Ended March 31,
(dollars in millions, except per share amounts; shares in millions)	2020		2019
Net sales	$	18,451	$	17,623
Net income attributable to common shareowners	$	1,760	$	1,599
Basic earnings per share of common stock	$	1.17	$	1.06
Diluted earnings per share of common stock	$	1.16	$	1.06


	Quarter Ended March 31,
(dollars in millions)	2020		2019
Amortization of acquired Raytheon Company intangible assets, net ¹	$	(273)	$	(266)
Amortization of fixed asset fair value adjustment ²	(9)		(10)
Utilization of contractual customer obligation ³	8		15
Deferred revenue fair value adjustment ⁴	(4)		(9)
Adjustment to net periodic pension cost⁵	239		241
RTC/Raytheon fees for advisory, legal, accounting services⁶	34		—
Adjustment to interest expense related to debt distributions and Raytheon Merger, net⁷	106		131
Elimination of deferred commission amortization ⁸	5		3
Otis and Carrier separation⁹	949		(634)
	$	1,055	$	(529)