View Filing Data

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 21, 2020
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0000101829
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-00812
Entity Registrant Name	RAYTHEON TECHNOLOGIES CORPORATION
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		1,527,655,238
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

Condensed Consolidated Statement of Operations - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net Sales:
Net sales	$ 14,061	$ 11,329	$ 25,421	$ 22,282
Costs and Expenses:
Research and development	695	605	1,230	1,192
Selling, general and administrative	1,811	902	2,788	1,770
Total costs and expenses	14,720	10,061	24,804	19,935
Goodwill impairment	(3,183)	0	(3,183)	0
Other income (expense), net	82	118	101	181
Operating profit (loss)	(3,760)	1,386	(2,465)	2,528
Non-service pension (income) cost	(237)	(200)	(405)	(392)
Interest expense, net	335	352	667	772
Total non-operating (income) expense, net	98	152	262	380
Income (loss) from continuing operations before income taxes	(3,858)	1,234	(2,727)	2,148
Income tax expense (benefit)	(38)	6	601	159
Net income (loss) from continuing operations	(3,820)	1,228	(3,328)	1,989
Less: Noncontrolling interest in subsidiaries’ earnings from continuing operations	24	45	78	94
Income (loss) from continuing operations attributable to common shareowners	(3,844)	1,183	(3,406)	1,895
Income (loss) from discontinued operations	(56)	1,206	(232)	2,114
Income tax expense (benefit) from discontinued operations	(65)	435	237	679
Income (loss) from discontinued operations, net of tax	9	771	(469)	1,435
Less: Noncontrolling interest in subsidiaries’ earnings from discontinued operations	0	54	43	84
Income (loss) from discontinued operations attributable to common shareowners	9	717	(512)	1,351
Net income attributable to common shareowners	$ (3,835)	$ 1,900	$ (3,918)	$ 3,246
Earnings Per Share of Common Stock - Basic:
Income (loss) from continuing operations attributable to common shareowners	$ (2.56)	$ 1.38	$ (2.78)	$ 2.22
Income (loss) from discontinued operations	0.01	0.84	(0.42)	1.58
Net income attributable to common shareowners	(2.55)	2.22	(3.20)	3.80
Earnings Per Share of Common Stock - Diluted:
Income (loss) from continuing operations attributable to common shareowners	(2.56)	1.37	(2.78)	2.20
Income (loss) from discontinued operations	0.01	0.83	(0.42)	1.56
Net income attributable to common shareowners	$ (2.55)	$ 2.20	$ (3.20)	$ 3.76
Product [Member]
Net Sales:
Net sales	$ 10,768	$ 8,389	$ 18,933	$ 16,424
Costs and Expenses:
Cost of Products and Services Sold	9,620	6,736	16,249	13,399
Service [Member]
Net Sales:
Net sales	3,293	2,940	6,488	5,858
Costs and Expenses:
Cost of Products and Services Sold	$ 2,594	$ 1,818	$ 4,537	$ 3,574

Condensed Consolidated Statement of Comprehensive (Loss) Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (3,811)	$ 1,999	$ (3,797)	$ 3,424
Foreign currency translation adjustments	665	(437)	(780)	97
Pension and postretirement benefit plans adjustments	(2,286)	30	(2,176)	73
Change in unrealized cash flow hedging	215	37	(159)	48
Other Comprehensive Income (Loss), before Tax	(1,406)	(370)	(3,115)	218
Income tax benefit (expense) related to items of other comprehensive income (loss)	519	(4)	589	(30)
Other comprehensive income (loss), net of tax	(887)	(374)	(2,526)	188
Comprehensive income (loss)	(4,698)	1,625	(6,323)	3,612
Less: Comprehensive income attributable to noncontrolling interest	(30)	(100)	(121)	(182)
Comprehensive income (loss) attributable to common shareowners	$ (4,728)	$ 1,525	$ (6,444)	$ 3,430

Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Cash and cash equivalents	$ 6,975	$ 4,937
Accounts receivable, net	9,496	8,743
Contract assets	9,943	4,462
Inventory, net	10,256	9,047
Assets related to discontinued operations	135	31,823
Other assets, current	5,469	2,565
Total Current Assets	42,274	61,577
Customer financing assets	3,363	3,463
Future income tax benefits	732	884
Fixed assets	25,118	20,077
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(10,313)	(9,755)
Fixed assets, net	14,805	10,322
Operating lease right-of-use assets	2,102	1,252
Goodwill	53,269	36,609
Intangible assets, net	42,003	24,473
Other assets	2,969	1,035
Assets	161,517	139,615
Short-term borrowings	243	2,293
Accounts payable	7,182	7,816
Accrued liabilities	14,253	9,770
Contract liabilities	11,997	9,014
Liabilities related to discontinued operations	319	14,443
Long-term debt currently due	1,297	3,258
Total Current Liabilities	35,291	46,594
Long-term debt	31,210	37,701
Operating lease liabilities, non-current	1,723	1,093
Future pension and postretirement benefit obligations	14,972	2,487
Other long-term liabilities	9,394	7,414
Liabilities	92,590	95,289
Commitments and contingencies (Note 17)
Redeemable noncontrolling interest	35	95
Common Stock	36,735	23,019
Treasury Stock	(10,398)	(32,626)
Retained earnings	49,744	61,594
Unearned ESOP Shares	(56)	(64)
Accumulated other comprehensive loss	(8,800)	(10,149)
Total Shareowners' Equity	67,225	41,774
Noncontrolling interest	1,667	2,457
Total Equity	68,892	44,231
Total Liabilities and Equity	$ 161,517	$ 139,615

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Statement of Cash Flows [Abstract]
Net income (loss) from continuing operations	$ (3,328)	$ 1,989
Adjustments to reconcile income from continuing operations to net cash flows provided by operating activities of continuing operations:
Depreciation and amortization	1,839	1,330
Deferred income tax provision	118	10
Stock compensation cost	135	118
Goodwill impairment loss	(223)	(244)
Goodwill, Impairment Loss	3,183	0
Change in:
Accounts receivable	1,163	736
Contract assets	376	(573)
Inventory	(550)	(795)
Other current assets	(180)	(322)
Accounts payable and accrued liabilities	(1,395)	(218)
Contract liabilities	201	633
Global pension contributions	(42)	(37)
Canadian Government Settlement	0	(38)
Other operating activities, net	45	180
Net cash flows provided by operating activities from continuing operations	1,342	2,769
Investing Activities of Continuing Operations:
Capital expenditures	(783)	(678)
Dispositions of businesses (Note 2)	234	133
Cash acquired in Raytheon Merger	3,208	0
Increase in customer financing assets, net	(129)	(332)
Increase in collaboration intangible assets	(106)	(169)
(Payments) receipts from settlements of derivative contracts	286	(61)
Other investing activities, net	(82)	(118)
Net cash flows provided by (used in) investing activities from continuing operations	2,056	(1,103)
Financing Activities:
Issuance of long-term debt	1,984	2
Dividend from discontinued operations	17,207	0
Repayment of long-term debt	(15,038)	(13)
Decrease in short-term borrowings, net	(2,045)	(388)
Proceeds from Common Stock issued under employee stock plans	10	11
Dividends paid on Common Stock	(1,338)	(1,219)
Repurchase of Common Stock	47	69
Net transfers (to) from discontinued operations	(1,966)	682
Other financing activities, net	(99)	(73)
Net cash flows used in financing activities from continuing operations	(1,332)	(1,067)
Discontinued Operations:
Net cash provided by (used in) operating activities	(661)	841
Net cash used in investing activities	(241)	(114)
Net cash used in financing activities	(1,481)	(698)
Net cash flows (used in) provided by discontinued operations	(2,383)	29
Effect of foreign exchange rate changes on cash and cash equivalents	(10)	4
Effect of foreign exchange rate changes on cash and cash equivalents from discontinued operations	(76)	11
Net (decrease) increase in cash, cash equivalents and restricted cash	(403)	643
Cash, cash equivalents and restricted cash, beginning of period	4,961	3,731
Cash, cash equivalents and restricted cash within assets related to discontinued operations, beginning of period	2,459	2,481
Cash, cash equivalents and restricted cash, end of period	7,017	6,855
Less: Restricted cash	42	18
Less: Cash, cash equivalents and restricted cash for discontinued operations	0	2,521
Cash and cash equivalents, end of period	$ 6,975	$ 4,316

Condensed Consolidated Statement of Changes in Equity Statement - USD ($) shares in Thousands, $ in Millions	Total	Raytheon Company [Member]	Common Stock [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Retained Earnings [Member] Carrier [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)
Noncontrolling interest									$ 2,164
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture			211	4			5
Stock Issued During Period, Value, Acquisitions			0	0
Stockholders' Equity Note, Spinoff Transaction			0			$ 0		0	0
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests			0						(1)
Noncontrolling Interest, Change in Redemption Value			(7)		(7)
Treasury Stock, Value, Acquired, Cost Method				71
Net income attributable to common shareowners	3,246				3,246
Dividends, Common Stock					1,219
Employee Stock Ownership Plan (ESOP), Dividends Paid to ESOP					36
Reclassification to Retained Earnings, current period, ASU 2018-02 adoption impact					745
Stockholders' Equity, Other					(4)				0
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent								186
ASU 2018-02 adoption impact	$ (745)							(745)
Net Income (Loss) Attributable to Noncontrolling Interest									178
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest									5
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest									4
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders									145
Noncontrolling Interest, Increase from Capital Contributions									18
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	1,827
Stock Repurchased During Period, Shares	553
Stock Issued During Period, Shares, Acquisitions		0
Common Stock, Dividends, Per Share, Declared	$ 1.470
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 41,946
Stockholders' Equity Attributable to Parent			22,564	(32,511)	59,279		(75)	(9,519)
Noncontrolling interest									2,208
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture			154	1			4
Stock Issued During Period, Value, Acquisitions			0	0
Stockholders' Equity Note, Spinoff Transaction			0			0		0	0
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests			0						(1)
Noncontrolling Interest, Change in Redemption Value			0		(11)
Treasury Stock, Value, Acquired, Cost Method				39
Net income attributable to common shareowners	$ 1,900				1,900
Dividends, Common Stock					610
Employee Stock Ownership Plan (ESOP), Dividends Paid to ESOP					18
Reclassification to Retained Earnings, current period, ASU 2018-02 adoption impact					0
Stockholders' Equity, Other					8				(3)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent								(373)
ASU 2018-02 adoption impact								0
Net Income (Loss) Attributable to Noncontrolling Interest									99
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest									2
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest									1
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders									101
Noncontrolling Interest, Increase from Capital Contributions									18
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	799
Stock Repurchased During Period, Shares	297
Stock Issued During Period, Shares, Acquisitions		0
Common Stock, Dividends, Per Share, Declared	$ 0.740
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 42,977
Stockholders' Equity Attributable to Parent			22,718	(32,549)	60,548		(71)	(9,892)
Noncontrolling interest									2,223
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)
Noncontrolling interest	2,457								2,457
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture			221	2			8
Stock Issued During Period, Value, Acquisitions			10,897	22,269
Stockholders' Equity Note, Spinoff Transaction			2,598			(5,805)		3,875	(865)
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests			0						66
Noncontrolling Interest, Change in Redemption Value			0		0
Treasury Stock, Value, Acquired, Cost Method				43
Net income attributable to common shareowners	$ (3,918)				(3,918)
Dividends, Common Stock					2,041
Employee Stock Ownership Plan (ESOP), Dividends Paid to ESOP					27
Reclassification to Retained Earnings, current period, ASU 2018-02 adoption impact					0
Stockholders' Equity, Other					(59)				0
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent								(2,526)
ASU 2018-02 adoption impact								0
Net Income (Loss) Attributable to Noncontrolling Interest									121
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest									(1)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest									0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders									80
Noncontrolling Interest, Increase from Capital Contributions									(31)
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	1,907
Stock Repurchased During Period, Shares	330
Stock Issued During Period, Shares, Acquisitions		652,638
Common Stock, Dividends, Per Share, Declared	$ 1.210
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 41,935
Stockholders' Equity Attributable to Parent			23,099	(32,665)	60,826		(61)	(11,788)
Noncontrolling interest									2,524
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture			140	(2)			5
Stock Issued During Period, Value, Acquisitions			10,897	22,269
Stockholders' Equity Note, Spinoff Transaction			2,598			$ (5,805)		3,875	(865)
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests			1						66
Noncontrolling Interest, Change in Redemption Value			0		(1)
Treasury Stock, Value, Acquired, Cost Method				0
Net income attributable to common shareowners	$ (3,835)				(3,835)
Dividends, Common Stock					1,427
Employee Stock Ownership Plan (ESOP), Dividends Paid to ESOP					10
Reclassification to Retained Earnings, current period, ASU 2018-02 adoption impact					0
Stockholders' Equity, Other					(4)				0
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent								(887)
ASU 2018-02 adoption impact								0
Net Income (Loss) Attributable to Noncontrolling Interest									24
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest									(1)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest									6
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders									22
Noncontrolling Interest, Increase from Capital Contributions									(65)
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	(142)
Stock Repurchased During Period, Shares	0
Stock Issued During Period, Shares, Acquisitions		652,638
Common Stock, Dividends, Per Share, Declared	$ 0.475
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 68,892
Stockholders' Equity Attributable to Parent	67,225		$ 36,735	$ (10,398)	$ 49,744		$ (56)	$ (8,800)
Noncontrolling interest	$ 1,667								$ 1,667

Accounting Policies

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Summary of Accounting Principles

The Condensed Consolidated Financial Statements at June 30, 2020 and for the quarters and six months ended June 30, 2020 and 2019 are unaudited, and in the opinion of management include adjustments of a normal recurring nature necessary for a fair statement of the results for the interim periods. Raytheon Intelligence & Space (RIS) and Raytheon Missiles & Defense (RMD) follow a 4-4-5 fiscal calendar with results recorded from the April 3, 2020 merger close date through June 28, 2020 while Collins Aerospace Systems (Collins Aerospace) and Pratt & Whitney continue to use a quarter calendar end of June 30, 2020. 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, particularly 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).

Separation Transactions and Distributions. On April 3, 2020, United Technologies Corporation (UTC) (since renamed Raytheon Technologies Corporation) completed the previously announced separation of its business into three independent, publicly traded companies – UTC, Carrier Global Corporation (Carrier) and Otis Worldwide Corporation (Otis) (such separations, the “Separation Transactions”). UTC distributed all of the outstanding shares of Carrier common stock and all of the outstanding shares of Otis common stock to UTC shareowners who held shares of UTC common stock as of the close of business on March 19, 2020, the record date for the distributions (the Distributions). UTC distributed 866,158,910 and 433,079,455 shares of common stock of Carrier and Otis, respectively in the Distributions, each of which was effective at 12:01 a.m., Eastern Time, on April 3, 2020. The historical results of Otis and Carrier are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Throughout this Quarterly Report on Form 10-Q, unless otherwise indicated, amounts and activity are presented on a continuing operations basis.

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, Raytheon Company became a wholly-owned subsidiary of UTC, which 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,” or “Raytheon” mean Raytheon Company and its subsidiaries prior to the Raytheon Merger. UTC was determined to be the accounting acquirer in the merger and, as a result, the financial statements of Raytheon Technologies for the period ended and as of June 30, 2020 include Raytheon Company’s financial position and results of operations for the period subsequent to the completion of the Raytheon Merger on April 3, 2020.

COVID-19 Pandemic. In March 2020, the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government. The pandemic has negatively affected the U.S. and global economy, disrupted global supply chains and financial markets, and resulted in significant travel restrictions, mandated facility closures and shelter-in-place and social distancing orders in numerous jurisdictions around the world. Raytheon Technologies is taking all prudent measures to protect the health and safety of our employees, such as practicing social distancing, performing deep cleaning in all of our facilities, and enabling our employees to work from home where possible. We have also taken appropriate actions to help support our communities in addressing the challenges posed by the pandemic, including the production and donation of personal protective equipment.

Our business and operations and the industries in which we operate have been significantly impacted by public and private sector policies and initiatives in the U.S. and worldwide to address the transmission of COVID-19, such as the imposition of travel restrictions and the adoption of remote working. Additionally, public sentiments regarding air travel have also had a significant impact. We began to experience issues related to COVID-19 in the first quarter, primarily related to a limited number of facility closures, less than full staffing, and disruptions in supplier deliveries, most significantly in our Collins Aerospace and Pratt & Whitney businesses. However, our customers continued to receive our products and services

during the first quarter and the outbreak did not have a significant impact on our operating results for the quarter ended March 31, 2020.

In the second quarter of 2020 and subsequent to quarter end, the continued disruption to air travel and commercial activities and the significant restrictions and limitations on businesses, particularly within the aerospace and commercial airline industries, have negatively impacted global supply, demand and distribution capabilities. In particular, the significant decrease in air travel resulting from the COVID-19 pandemic is adversely affecting our airline and airframer customers, and their demand for the products and services of our Collins Aerospace and Pratt & Whitney businesses. Based on recent public data and estimates, revenue passenger miles (RPMs) for the year ended December 31, 2020 could decline by approximately 60% in comparison to the prior year due to the pandemic. As a result, our airline customers have reported significant reductions in fleet utilization, aircraft grounding and unplanned retirements, and have deferred and, in some cases, cancelled new aircraft deliveries. Airlines have shifted to cash conservation behaviors such as deferring engine maintenance due to lower flight hours and aircraft utilization, requesting extended payment terms, deferring delivery of new aircraft and spare engines and requesting discounts on engine maintenance. Some airline customers have filed for bankruptcy due to their inability to meet their financial obligations. Additionally, we are seeing purchase order declines in line with publicly communicated aircraft production volumes as original equipment manufacturer (OEM) customers delay and cancel orders. We continue to monitor these trends and are working closely with our customers. We are actively mitigating costs and adjusting production schedules to accommodate these declines in demand. We have also been taking actions to preserve capital and protect the long-term needs of our businesses, including cutting discretionary spending, significantly reducing capital expenditures and research and development spend, suspending our share buybacks, deferring merit increases and implementing temporary pay reductions, freezing non-essential hiring, repositioning employees to defense work, and furloughing employees when needed. In the quarter ended June 30, 2020, we recorded total restructuring charges of $427 million primarily related to personnel reductions. Thus far, most of these actions have been taken at our Collins Aerospace and Pratt & Whitney businesses. The former Raytheon Company businesses have not experienced significant facility closures or other business disruptions.

Given the significant reduction in business and leisure passenger air travel, the number of planes temporarily grounded, and continued travel restrictions that have resulted from the pandemic, we expect our future operating results, particularly those of our Collins Aerospace and Pratt & Whitney businesses to continue to be significantly negatively impacted. Our expectations regarding the COVID-19 pandemic and its potential financial impact are based on available information and assumptions that we believe are reasonable at this time; however, the actual financial impact is highly uncertain and subject to a wide range of factors and future developments. While we believe that the long-term outlook for the aerospace industry remains positive due to the fundamental drivers of air travel demand, there is significant uncertainty with respect to when and if commercial air traffic levels will begin to recover, and whether and at what point capacity will return to and/or exceed pre-COVID-19 levels. Our latest estimates are that this recovery may occur in 2023 or 2024. New information may emerge concerning the scope, severity and duration of the COVID-19 pandemic, as well as any worsening of the pandemic and whether there will be additional outbreaks of the pandemic, actions to contain its spread or treat its impact, and governmental, business and individuals’ actions taken in response to the pandemic (including restrictions and limitations on travel and transportation) among others.

We considered the deterioration in general economic and market conditions primarily due to the COVID-19 pandemic to be a triggering event requiring us to reassess our commercial aerospace business goodwill and intangibles valuations, as well as our significant assumptions of future cash flows from our underlying assets and potential changes in our liabilities in both the first and second quarters of 2020. In the second quarter of 2020, our revenue at Collins Aerospace and Pratt & Whitney was significantly impacted by the decline in flight hours, aircraft fleet utilization, shop visits and commercial OEM deliveries. In order to evaluate the ongoing impact, we updated our forecast assumptions of future business activity that are subject to a wide range of uncertainties, including those noted above.

Based upon our analysis, we concluded that the carrying value of two of our Collins Aerospace reporting units as of June 30, 2020 was greater than its fair value, and accordingly, we recorded a goodwill impairment charge of $3.2 billion in the quarter ended June 30, 2020. Refer to “Note 2: Acquisitions, Dispositions, Goodwill and Other Intangible Assets” for additional information. Additionally, in the quarter and six months ended June 30, 2020 we recorded write-downs of assets in our Collins Aerospace and Pratt & Whitney businesses primarily related to increased estimated credit losses of $237 million and $309 million in the quarter and six months ended June 30, 2020, respectively, a reduction in expected future billings or revenues on commercial contracts, based on a change in estimated customer activity during the current period, of $179 million and $190 million in the quarter and six months ended June 30, 2020, respectively, the impairment of a Collins Aerospace trade name of $17 million and $57 million in the quarter and six months ended June 30, 2020, respectively, and a change in contract estimates related to a shift in overhead costs to military contracts of $44 million in both the quarter and six months ended June 30, 2020. Given the uncertainty related to the severity and length of the pandemic, as well as any worsening of the pandemic and whether there will be additional outbreaks of the pandemic and its impact across the aerospace industry, we may be required to record additional charges or impairments in future periods.

Although the impact of COVID-19 on our commercial markets is significant, we currently believe we have sufficient liquidity to withstand the potential impacts of COVID-19. With the completion of the Separation Transactions, the Distributions and the Raytheon Merger, we have a balanced and diversified portfolio of both aerospace and defense businesses which we believe will help mitigate the impacts of the COVID-19 pandemic and future business cycles.

Summary of Accounting Principles. As a result of the Raytheon Merger and the Separation Transactions, several of our accounting policies have been modified and certain additional polices have been added. The following represents the significant accounting principles of Raytheon Technologies Corporation.

Consolidation and Classification. The Condensed Consolidated Financial Statements include the accounts of Raytheon Technologies Corporation, and all wholly-owned, majority-owned and otherwise controlled domestic and foreign subsidiaries. All intercompany transactions have been eliminated. For classification of certain current assets and liabilities, the duration of our contracts or programs is utilized for our operating cycle, which is generally longer than one year. Included within our current assets and liabilities are contract assets and liabilities related to our aftermarket and development arrangements, which can generally span up to fifteen years.

As a result of the Separation Transactions, the Distributions and the Raytheon Merger, certain reclassifications have been made to the prior year amounts to conform to the current year presentation. These reclassifications include the presentation of current assets and liabilities based upon the duration of our operating cycle, the reclassification of certain unbilled accounts receivable from accounts receivable, net to contract assets, reclassifications of lease amortization within our presentation of cash flows, reclassifications within our segment presentation, and the reclassification of the historical Otis and Carrier results to discontinued operations.

Use of Estimates. Our consolidated financial statements are based on the application of U.S. Generally Accepted Accounting Principles (GAAP), which require us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and the accompanying notes. As discussed above, the full extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations, financial condition, and cash flows, including sales, expenses, reserves and allowances, asset recoverability and Estimate at Completion adjustments, will depend on future developments that are highly uncertain, including new information that may emerge concerning COVID-19 and related containment and treatment actions, as well as the economic impact on local, regional, national and international customers and markets. We have made estimates of the impact of COVID-19 within our financial statements and there may be changes to those estimates in future periods. Other future events, including regarding COVID-19, and their effects cannot be determined with certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and any such differences may be material to our consolidated financial statements.

Cash and Cash Equivalents. Cash and cash equivalents includes cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less.

On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions or divestitures or other legal obligations. This restricted cash is excluded from cash and cash equivalents and is included in other assets, current and other assets on our Condensed Consolidated Balance Sheet.

Accounts Receivable. Accounts receivable are stated at the net amount expected to be collected. The allowance for credit losses is established to provide for the expected lifetime credit losses by evaluating factors such as customer creditworthiness, historical payment and loss experiences, current economic conditions and the age and status of outstanding receivables. See the Accounting Pronouncements section below for additional information as to how we develop our allowance for credit losses under Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

Unbilled receivables represent revenues that are not currently billable to the customer under the terms of the contract and include unbilled amounts under commercial contracts where payment is subject to the passage of time. These items are expected to be billed and collected in the normal course of business. Other unbilled receivables not just subject to the passage of time are included in Contract assets in the Condensed Consolidated Balance Sheet, and are generally classified as current.

Contract Assets and Liabilities. Contract assets and liabilities represent the difference in the timing of revenue recognition from receipt of cash from our customers. Contract assets reflect revenue recognized and performance obligations satisfied or partially 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. Contract assets and contract liabilities are generally classified as current. See “Note 6: Contract Assets and Liabilities” for further discussion of contract assets and liabilities.

Inventory. Inventory is stated at the lower of cost or estimated realizable value and are primarily based on first-in, first-out (FIFO) or average cost methods.

Valuation reserves for excess, obsolete, and slow-moving inventory are estimated by comparing the inventory levels of individual parts to both future sales forecasts or production requirements and historical usage rates in order to identify inventory where the resale value or replacement value is less than inventoriable cost. Other factors that management considers in determining the adequacy of these reserves include whether individual inventory parts meet current specifications and can be substituted for a part currently being sold or used as a service part, overall market conditions, and other inventory management initiatives. Manufacturing costs are allocated to current production contracts.

Equity Method Investments. Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other assets on the Condensed Consolidated Balance Sheet. Under this method of accounting, our share of the net earnings or losses of the investee is included in Operating profit on the Condensed Consolidated Statement of Operations since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period.

Customer Financing Assets. Customer financing assets (CFA) relate to our commercial aerospace businesses in which we provide financing to airline customers. Our financing predominately relates to products under lease, and to a lesser extent, notes and lease receivables. We record revenue from lease assets by applying Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842: Leases, and from interest on the notes and lease receivables. Interest from notes and financing leases and rental income from operating lease assets is included in Other income, net in the Condensed Consolidated Statement of Operations, while gains or losses on sales of operating lease assets are included in product sales and cost of sales. The current portion of these financing arrangements are aggregated in Other assets, current and the non-current portion of these financing arrangements are aggregated in CFA in the Condensed Consolidated Balance Sheet. The increases and decreases in CFA from funding, receipts and certain other activity, are reflected as Investing Activities in the Condensed Consolidated Statement of Cash Flows. The product under lease assets are valued at cost and reviewed for impairment when circumstances indicate that the related carrying amounts may not be recoverable. Notes and lease receivables are valued at the net amount expected to be collected. Reserves for credit losses on notes and lease receivables relate to specifically identified receivables that are evaluated individually for impairment. For notes and lease receivables, 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. As of June 30, 2020 and December 31, 2019 the reserves related to CFA are not material. At June 30, 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.

Business Combinations. Once a business is acquired, the fair value of the identifiable assets acquired and liabilities assumed is determined with the excess cost recorded to goodwill. As required, a preliminary fair value is determined once a business is acquired, with the final determination of the fair value being completed within the one year measurement period from the date of acquisition.

Goodwill and Intangible Assets. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Goodwill and indefinite-lived intangible assets are subject to annual impairment testing or when a triggering event occurs using the guidance and criteria described in the Intangibles - Goodwill and Other (Topic 350) of the FASB ASC. The impairment test compares carrying values of the reporting units to its estimated fair values. If the carrying value exceeds the fair value then the carrying value is reduced to fair value.

Intangible assets consist of patents, trademarks/tradenames, customer relationships, exclusivity assets, developed technology and other intangible assets including collaboration assets. Acquired intangible assets are recognized at fair value in purchase accounting and then finite lived-intangible assets are amortized to cost of sales and selling, general & administrative expenses over the applicable useful lives. Exclusivity assets are commercial aerospace payments made to secure certain contractual rights to provide product on new aircraft platforms. We classify amortization of such payments as a reduction of sales. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. Consideration paid on these contractual commitments is capitalized when it is no longer conditional.

Useful lives of finite-lived intangible assets are estimated based upon the nature of the intangible asset and the industry in which the intangible asset is used. These intangible assets are amortized based on the pattern in which the economic benefits of the intangible assets are consumed, as represented by the underlying cash flows, which may result in an amortization method

other than straight-line. For both our commercial aerospace collaboration assets and exclusivity arrangements, the pattern of economic benefit generally results in no amortization during the development period with amortization beginning as programs enter full rate production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined or if straight-line amortization approximates the pattern of economic benefit, a straight-line amortization method may be used. The range of estimated useful lives is as follows:


			Years
Collaboration assets			30
Customer relationships and related programs			1 to 32
Developed technology			5 to 25
Patents & trademarks			4 to 40
Exclusivity assets			5 to 25

Leases. We account for leases in accordance with ASC Topic 842: Leases. Under Topic 842, the right-of-use model requires a lessee to record a right-of-use asset and a lease liability on the Condensed Consolidated Balance Sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the Condensed Consolidated Statement of Operations.

We enter into lease agreements for the use of real estate space, vehicles, information technology equipment, and certain other equipment under both operating and finance leases. We determine if an arrangement contains a lease at inception. Operating leases are included in Operating lease right-of-use assets, Accrued liabilities for the current portion of our operating lease liabilities, and Operating lease liabilities in our Condensed Consolidated Balance Sheet. Finance leases are not considered significant to our Condensed Consolidated Balance Sheet or Condensed Consolidated Statement of Operations.

Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments, and use the implicit rate when readily determinable. We determine our incremental borrowing rate through market sources including relevant industry rates. Our lease right-of-use assets also include any initial direct costs and lease pre-payments made at or before the commencement date and is reduced for any lease incentives received at or before the commencement date. Certain of our leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. We exclude variable payments from lease right-of-use assets and lease liabilities, to the extent not considered fixed, and instead, expense variable payments as incurred. Variable lease expense and lease expense for short duration contracts are not a material component of lease expense. Some of our leases include the option to extend or terminate the lease. We include these options in the recognition of our right-of-use assets and lease liabilities when it is reasonably certain that we will exercise the option. Lease expense is generally recognized on a straight-line basis over the lease term.

In limited instances we act as a lessor, primarily for commercial aerospace engines, the majority of which are classified as operating leases. These leases are not significant to our Condensed Consolidated Balance Sheet or Condensed Consolidated Statement of Operations.

Other Long-Lived Assets. We evaluate the potential impairment of other long-lived assets whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. If the carrying value of other long-lived assets held and used exceeds the sum of the undiscounted expected future cash flows, the carrying value is written down to fair value. In order for long-lived assets to be considered held for disposal, we must have committed to a plan to dispose of the assets. Once deemed held for disposal, the assets are stated at the lower of the carrying amount or fair value.

Income Taxes. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest expense has also been recognized. We recognize accrued interest related to unrecognized tax benefits in interest expense. Penalties, if incurred, would be recognized as a component of income tax expense. State income tax amounts are generally included in income tax expense; however state income tax payments related to our RIS and RMD segments are generally recoverable through the pricing of products and services to the U.S. government. Accordingly, these state income taxes are allocated to contracts and reclassified to administrative and selling expenses when paid (recovered) or otherwise agreed as allocable with the U.S. government.

On December 22, 2017 the Tax Cuts and Jobs Act of 2017 (TCJA) was enacted. The TCJA includes a provision that imposes a tax on Global Intangible Low-Taxed Income (GILTI) beginning in 2018. GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The FASB has provided that companies subject to GILTI have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for temporary differences, including outside basis differences, expected to reverse as GILTI. We have elected to account for GILTI as a period cost, as incurred.

Revenue Recognition. The vast majority of our revenues are from long-term contracts associated with the design, development, manufacture or modification of complex aerospace or defense equipment or related services. Collins Aerospace and Pratt & Whitney primarily serve commercial and government customers in both the OEM and aftermarket parts and services markets of the aerospace industry, while RIS and RMD primarily provide products and services to government customers in the defense market.

We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. For certain contracts that meet the foregoing requirements, primarily contracts that are directly with a foreign government, we are required to obtain certain regulatory approvals. In these cases, we recognize revenue based on the likelihood of obtaining regulatory approvals based upon all known facts and circumstances. A performance obligation is a promise in a contract with a customer to transfer a distinct good or service to the customer. Some of our contracts with customers contain a single performance obligation, while others contain multiple performance obligations most commonly when a contract contains multiple distinct units (such as engines or certain aerospace components) or spans multiple phases of the product life-cycle such as production, maintenance and support. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as the performance obligation is satisfied. When there are multiple performance obligations within a contract, we allocate the transaction price to each performance obligation based on its standalone selling price when available. If standalone selling price is not available, we estimate the standalone selling price of each performance obligation, which is generally based on an expected cost plus a margin approach.

We consider the contractual consideration payable by the customer and assess variable consideration that may affect the total transaction price, including contractual discounts, contract incentive payments, estimates of award fees and other sources of variable consideration, when determining the transaction price of each contract. When reasonably able to estimate, we include variable consideration in the transaction price at the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. These estimates are based on historical experience, anticipated performance and our best judgment at the time. We also consider whether our contracts contain a significant financing component, which they generally do not.

Timing of the satisfaction of performance obligations varies across our businesses due to our diverse product and service mix, customer base, and contractual terms.

Performance obligations are satisfied as of a point in time for certain aerospace components, engines, and spare parts. Revenue is recognized when control of the product transfers to the customer, generally upon product shipment. Since billing also typically occurs upon product shipment, we generally do not have contract assets or contract liabilities balances related to point in time sales.

Performance obligations are satisfied over-time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being produced (continuous transfer of control), or if the product being produced for the customer has no alternative use and we have a contractual right to payment for performance to date. We recognize revenue on an over-time basis for substantially all defense contracts and certain long-term aerospace OEM and aftermarket contracts.

Substantially all of our defense business revenue is recognized over time because of the continuous transfer of control to our customers. For performance obligations satisfied over time, revenue is recognized on a percentage of completion basis using costs incurred to date relative to total estimated costs at completion to measure progress. Incurred costs represent work performed, which correspond with and best depict transfer of control to the customer. Contract costs can include labor, materials, subcontractors’ costs, or other direct costs and indirect costs. Our contracts with the U.S. government are typically subject to the Federal Acquisition Regulation (FAR) and are priced based on estimated or actual costs of producing goods or providing services. The FAR provides guidance on the types of costs that are allowable in establishing prices for goods and services provided under U.S. government contracts. The pricing for non-U.S. government contracts is based on the specific negotiations with each customer. Under the typical payment terms of our U.S. government fixed-price contracts, the customer pays us either performance-based payments (PBPs) or progress payments. PBPs are interim payments equal to a negotiated percentage of the contract price based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments up to 80-90% of costs incurred as the work progresses. Because the

customer retains a portion of the contract price until completion of the contract, our U.S. government fixed-price contracts generally result in revenue recognized in excess of billings which we present as Contract assets on the Condensed Consolidated Balance Sheet. For our U.S. government cost-type contracts, the customer generally pays us for our costs incurred within a short period of time. For non-U.S. government contracts, we typically receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment. We recognize a liability for advance payments in excess of revenue recognized and present it as Contract liabilities on the Condensed Consolidated Balance Sheet.

For certain of our long-term aftermarket contracts, revenue is recognized over the contract period. We generally account for such contracts as a series of daily performance obligations to stand ready to provide spare parts, product maintenance and aftermarket services. These arrangements include the sale of spare parts with integral services to our customers, and are generally classified as Service sales, with the corresponding costs classified in Cost of services sold, within the Condensed Consolidated Statement of Operations. Revenue is primarily recognized in proportion to cost as sufficient historical evidence indicates that the cost of performing services under the contract is incurred on an other-than-straight-line basis. For some of our long-term aftermarket contracts, we receive payment prior to our work being completed, resulting in a contract liability balance, while for others, we perform work in advance of payment, resulting in a contract asset balance.

Contract modifications are routine as contracts are often modified to account for changes in contract specifications or requirements. We consider contract modifications to exist when the modification either creates new or changes existing enforceable rights and obligations. Contract modifications for goods or services that are not distinct are accounted for as part of the existing contract either on a cumulative catch-up basis or prospective basis depending on the nature of the modification.

Loss provisions on contracts are recognized to the extent that estimated contract costs exceed the estimated consideration from the products or services contemplated under the contractual arrangement. For new commitments, we generally record loss provisions at contract signing except for certain contracts under which losses are recorded upon receipt of the purchase order that obligates us to perform. For existing commitments, anticipated losses on contractual arrangements are recognized in the period in which losses become evident. In estimating losses, products contemplated under contractual arrangements include firm quantities of product sold under contract and, in the commercial engine and wheels and brakes businesses, future highly probable sales of replacement parts required by regulation that are expected to be sold subsequently for incorporation into the original equipment. In our commercial engine and wheels and brakes businesses, when the OEM product is sold for a loss, but the combined OEM and aftermarket arrangement for each individual sales campaign are profitable, we record OEM product losses at the time of product delivery.

We review our Estimate at Completion (EACs) on significant contracts on a periodic basis and for others, no less than annually or when a change in circumstances warrant a modification to a previous estimate. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment by management on a contract by contract basis. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management’s judgment about the ability and cost to achieve the schedule including consideration of customer-directed delays or reductions in scheduled deliveries, and technical and other specific contract requirements including customer activity levels and variable consideration based upon that activity. Management’s judgment related to these considerations has become increasingly more significant given the current economic environment primarily caused by the COVID-19 pandemic. Management must make assumptions and estimates regarding contract revenue and costs, including estimates of labor productivity and availability, the complexity and scope of the work to be performed, the availability and cost of materials, the length of time to complete the performance obligation, execution by our subcontractors, the availability and timing of funding from our customer, overhead cost rates, estimated aircraft and engine utilization and estimated useful lives of components, among other variables. Cost estimates may also include the estimated cost of satisfying our industrial cooperation agreements, sometimes in the form of either offset obligations or in-country industrial participation (ICIP) agreements, required under certain contracts. These obligations may or may not be distinct depending on their nature. If cash is paid to a customer to satisfy our offset obligations it is recorded as a reduction in the transaction price.

Changes in estimates of net sales, cost of sales and the related impact to operating profit are recognized on a cumulative catch-up basis, which recognizes the cumulative effect of the profit changes on current and prior periods based on a performance obligation’s percentage of completion in the current period. A significant change in one or more of these estimates could affect the profitability of one or more of our performance obligations. Our EAC adjustments also include the establishment of loss provisions on our contracts accounted for on a percentage of completion basis.

Net EAC adjustments had the following impact on our operating results:


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions, except per share amounts)	2020		2019		2020		2019
Operating profit (loss)	$	(151)	$	(69)	$	(130)	$	(81)
Income (loss) from continuing operations attributable to common shareowners⁽¹⁾	(119)		(55)		(103)		(64)
Diluted earnings (loss) per share from continuing operations attributable to common shareholders ⁽¹⁾	$	(0.08)	$	(0.06)	$	(0.08)	$	(0.07)

(1) Amounts reflect a U.S. statutory tax rate of 21%, which approximates our effective tax rate on our EAC adjustments.

In the second quarters of 2020 and 2019, revenue was reduced by $218 million and $90 million, respectively, for performance obligations satisfied (or partially satisfied) in previous periods. In the first six months of 2020 and 2019, revenue was reduced by $201 million and $115 million, respectively, for performance obligations satisfied (or partially satisfied) in previous periods. This primarily relates to EAC adjustments that impacted revenue.

As a result of the Raytheon Merger, Raytheon Company’s contracts accounted for on a percentage of completion basis were reset to zero percent complete as of the date of completion of the Raytheon Merger, since only the unperformed portion of the contract at such date represents the obligation of the Company. This will have the impact of reducing gross favorable and unfavorable EAC adjustments for these segments in the short-term, with the exception of EAC adjustments related to loss reserves. For additional information related to the Raytheon Merger, see “Note 2: Acquisitions, Dispositions, Goodwill and Other Intangible Assets.”

In our Collins Aerospace and Pratt & Whitney businesses, we incur contract fulfillment costs for engineering and development of aerospace OEM products directly related to existing or anticipated contracts with customers. Such costs generate or enhance our ability to satisfy our performance obligations under these contracts. We capitalize these costs as contract fulfillment costs to the extent the costs are recoverable from the associated contract margin and subsequently amortize the costs as the related performance obligations are satisfied. In instances where intellectual property does not transfer to the customer, we generally defer the customer funding of product engineering and development and recognize revenue when the related performance obligations are satisfied. Capitalized contract fulfillment costs were $1,808 million and $1,519 million as of June 30, 2020 and December 31, 2019, respectively and are recognized in Other assets in our Condensed Consolidated Balance Sheet and are included in Other operating activities, net in our Condensed Consolidated Statement of Cash Flows. We regularly assess capitalized contract fulfillment costs for impairment. Costs to obtain contracts are not material.

Sales generated from engine programs, spare parts sales, and aftermarket business under collaboration arrangements, primarily at our Pratt & Whitney business, are recorded consistent with our revenue recognition policies in our Condensed Consolidated Financial Statements. Amounts attributable to our collaborators for their share of sales are recorded as cost of sales in our Consolidated Financial Statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments for shared or joint program costs. The reimbursement from collaborators of their share of program costs is recorded as a reduction of the related expense item at that time.

In our Collins Aerospace and Pratt & Whitney businesses, we may offer customers incentives to purchase our products, which may result in payments made to those customers. In addition, we make participation payments to certain aerospace customers to secure certain contractual rights. To the extent these rights are incremental and are supported by the incremental cash flows obtained, they are capitalized as intangible assets. Otherwise, such payments are recorded as a reduction in sales. We classify the subsequent amortization of the capitalized acquired intangible assets from our customers as a reduction in sales.

Remaining Performance Obligations (RPO). Remaining performance obligations (RPO) represent the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied. Total RPO was $158.7 billion as of June 30, 2020. Of the total RPO as of June 30, 2020, we expect approximately 30% will be recognized as sales over the next 12 months. This percentage of RPO to be recognized as sales over the next 12 months 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, which may result in customer delays or order cancellations.

research and development projects performed under contracts with customers are accounted for as contract costs and reported as cost of sales on related to revenue generating contracts.

Foreign Exchange. We conduct business in many different currencies and, accordingly, are subject to the inherent risks associated with foreign exchange rate movements. The financial position and results of operations of many of our foreign subsidiaries are measured using the local currency as the functional currency. Foreign currency denominated assets and liabilities are translated into U.S. Dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries are deferred as a separate component of accumulated other comprehensive loss (AOCL) in shareowners’ equity.

Derivatives and Hedging Activity. From time to time, we use derivative instruments, including swaps, forward contracts and options, to help manage certain foreign currency, interest rate and commodity price exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. By their nature, all financial instruments involve market and credit risks. We enter into derivative and other financial instruments with major investment grade financial institutions and have policies to monitor the credit risk of those counterparties. We limit counterparty exposure and concentration of risk by diversifying counterparties. While there can be no assurance, we do not anticipate any material non-performance by any of these counterparties. We enter into transactions that are subject to enforceable master netting arrangements or similar agreements with various counterparties. However, we have not elected to offset multiple contracts with a single counterparty and, as a result, the fair value of the derivative instruments in a loss position is not offset against the fair value of derivative instruments in a gain position.

Derivatives used for hedging purposes may be designated and effective as a hedge of the identified risk exposure at the inception of the contract. All derivative instruments are recorded on the balance sheet at fair value. Derivatives used to hedge foreign currency denominated balance sheet items are reported directly in earnings along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate. Gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income and reclassified to earnings as a component of product sales or expenses, as applicable, when the hedged transaction occurs. Gains and losses on derivatives designated as cash flow hedges are recorded in Other operating activities, net within the Condensed Consolidated Statement of Cash Flows. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period it occurs.

To the extent the hedge accounting criteria are not met, the foreign currency forward contracts are utilized as economic hedges and changes in the fair value of these contracts are recorded currently in earnings in the period in which they occur. Cash receipts or payments related to the settlement of derivatives not designated as hedging instruments are recorded as investing cash flows within the Condensed Consolidated Statement of Cash Flows. Additional information pertaining to foreign currency forward contracts and net investment hedging is included in “Note 12: Financial Instruments.”

Environmental. Environmental investigatory, remediation, operating and maintenance costs are accrued when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including existing technology, current laws and regulations and prior remediation experience. Where no amount within a range of estimates is more likely, the minimum is accrued. For sites with multiple responsible parties, we consider our likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their obligations in establishing a provision for those costs. Liabilities with fixed or reliably determinable future cash payments are discounted. A portion of these costs is eligible for future recovery through the pricing of our products and services to the U.S. government. We regularly assess the probability of recovery of these costs, which requires us to make assumptions about the extent of cost recovery under our contracts and the amount of future contract activity with the U.S. government. We consider such recovery probable based on government contracting regulations and our history of receiving reimbursement for such costs, and accordingly have recorded the future recovery of these costs from the U.S. government within Other assets in the Condensed Consolidated Balance Sheet. Accrued environmental liabilities are not reduced by potential insurance reimbursements or potential recoveries from pursuing other parties. See “Note 17: Commitments and Contingencies” for additional details on the environmental remediation activities.

Pension and Postretirement Obligations. U.S. GAAP requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Funded status is measured at least annually in the fourth quarter and represents the difference between the plans’ projected benefit obligation (PBO) and the fair market value of the plans’ assets.

Changes to our pension and postretirement plans’ funded status can result from company actions, such as contributions or changes in plan provisions, or by gains and losses. Gains and losses are primarily a result of changes in discount rates, differences between actual and expected asset returns, and differences between actual and assumed demographic experience.

These gains or losses are recorded in other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit (income) cost.

A calculated “market-related value” of our plan assets is used to develop the amount of deferred asset gains or losses to be amortized. The market-related value of assets is equal to the fair value of assets adjusted to reflect the recognition, and subsequent amortization, of the difference between actual and expected asset return over a five-year period. The market-related value of assets is used to calculate the expected return on assets included in the net periodic benefit (income) cost.

The company has elected to use the “corridor” approach in the amortization of gains and losses, which limits the expense recognition to the net outstanding gains and losses in excess of the greater of 10% of the PBO or 10% of the market-related value of assets. Gains and losses exceeding the corridor are amortized in net periodic benefit (income) cost over either the projected average remaining employee service period or the projected average remaining lifetime of inactive participants depending on the plan.

Net periodic benefit (income) cost is split between operating profit and non-operating income, whereby only the service cost component is included in operating profit and the remaining components are included in Non-service pension (benefit).

Product Performance Obligations. We extend performance and operating cost guarantees beyond our normal service and warranty policies for extended periods on some of our products, particularly commercial aircraft engines. Liability under such guarantees is based upon future product performance and durability. We accrue for such costs that are probable and can be reasonably estimated. In addition, we incur discretionary costs to service our products in connection with product performance issues. The costs associated with these product performance and operating cost guarantees require estimates over the full terms of the agreements, and require management to consider factors such as the extent of future maintenance requirements and the future cost of material and labor to perform the services. These cost estimates are largely based upon historical experience. See “Note 16: Guarantees” for further discussion.

Collaborative Arrangements. In view of the risks and costs associated with developing new engines, Pratt & Whitney has entered into certain collaboration arrangements in which sales, costs and risks are shared. Sales generated from engine programs, spare parts, and aftermarket business under collaboration arrangements are recognized in our financial statements when earned. Amounts attributable to our collaborators for their share of sales are recorded as an expense in our financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement from the collaborators of their share of program costs is recorded as a reduction of the related expense item at that time. As of June 30, 2020, the collaborators’ interests in all commercial engine programs ranged from 13% to 49%, inclusive of a portion of Pratt & Whitney’s interests held by other participants. Pratt & Whitney is the principal participant in all existing collaborative arrangements, with the exception of the Engine Alliance (EA), a joint venture with GE Aviation, which markets and manufactures the GP7000 engine for the Airbus A380 aircraft. There are no individually significant collaborative arrangements, and none of the collaborators individually exceed a 31% share in an individual program.

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 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 is 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 June 30, 2020.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update remove certain exceptions of Topic 740 including: exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or gain from other items; exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. There are also additional areas of guidance in regards to: franchise and other taxes partially based on income and the interim recognition of enactment of tax laws and rate changes. The provisions of this ASU are effective for years beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this ASU on our Consolidated Financial Statements.

Other new pronouncements adopted and issued but not effective until after June 30, 2020 did not and are not expected to have a material impact on our financial position, results of operations or liquidity.

Acquisitions, Dispositions, Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 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. As noted above, on April 3, 2020, pursuant to the Agreement and Plan of Merger dated June 9, 2019, as amended (the Raytheon Merger Agreement) UTC and Raytheon Company completed their previously announced all-stock merger of equals, following the completion by UTC of the Separation Transactions and Distributions. Raytheon Company (previously NYSE:RTN) shares ceased trading prior to the market open on April 3, 2020, and each share of Raytheon common stock was converted in the merger into the right to receive 2.3348 shares of UTC common stock previously traded on the NYSE under the ticker symbol “UTX.” Upon closing of the Raytheon Merger, UTC’s name was 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.”

Total consideration is calculated as follows:


(dollars, in millions, except per share amounts and exchange ratio)	Amount
Fair value of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards	$	33,067
Fair value attributable to pre-merger service for replacement equity awards	99
Total estimated merger consideration	$	33,166

The fair value of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards is calculated as follows:


(dollars and shares, in millions, except per share amounts and exchange ratio)	Amount
Number of Raytheon Company common shares outstanding as of April 3, 2020	277.3
Number of Raytheon Company stock awards vested as a result of the Raytheon Merger ⁽¹⁾	0.4
Total outstanding shares of Raytheon Company common stock and equity awards entitled to merger consideration	277.7
Exchange ratio ⁽²⁾	2.3348
Shares of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards	648.4
Price per share of RTC common stock ⁽³⁾	$	51.00
Fair value of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards	$	33,067

(1) Represents Raytheon Company stock awards that vested as a result of the Raytheon Merger, which is considered a “change in control” for purposes of the Raytheon 2010 Stock Plan. Certain Raytheon Company restricted stock awards and Raytheon Company restricted stock unit (RSU) awards, issued under the Raytheon 2010 Stock Plan vested on an accelerated basis as a result of the Raytheon Merger. Such vested awards were converted into the right to receive RTC common stock determined as the product of (1) the number of vested awards, and (2) the exchange ratio.

(2) The exchange ratio is equal to 2.3348 shares of UTC common stock for each share of Raytheon Company common stock in accordance with the Raytheon Merger Agreement.

(3) The price per share of RTC common stock is based on the RTC opening stock price as of April 3, 2020.

Preliminary Allocation of Consideration Transferred to Net Assets Acquired. We are accounting for the Raytheon Merger under the acquisition method and are required to measure identifiable assets acquired and liabilities assumed of the acquiree (Raytheon Company) at the fair values on the closing date. The following amounts represent the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed from the Raytheon Merger. As of June 30, 2020, the majority of the valuation studies necessary to determine the fair market value of the assets acquired and liabilities assumed have been reviewed and finalized; however, our assessment of certain contingencies including loss contracts and environmental liabilities, pension and postretirement benefit obligations and taxes remain open for completion of the related valuation

analyses. We expect to finalize the purchase price allocation process in the second half of 2020 when we finalize our valuations and reviews. Any potential adjustments made could be material in relation to the preliminary values presented below.


(dollars, in millions)
Cash and cash equivalents	$	3,208
Accounts receivable	1,997
Inventory	705
Contract assets	6,023
Other assets, current	897
Future income tax benefits	14
Fixed assets	4,732
Intangible assets:	19,130
Customer relationships	12,900
Tradenames/trademarks	5,430
Developed technology	800
Other assets	2,139
Total identifiable assets acquired	38,845

Accounts payable	1,455
Accrued liabilities	3,235
Contract liabilities	2,991
Long-term debt, including current portion	4,700
Future pension and postretirement benefit obligation	10,651
Other long-term liabilities	3,482
Total liabilities acquired	26,514
Total identifiable net assets	12,331
Goodwill	20,869
Redeemable noncontrolling interest	(34)
Total consideration transferred	$	33,166

Fair value adjustments to Raytheon Company’s identified assets and liabilities included an increase in fixed assets of $1.1 billion and a preliminarily estimated increase to future pension and postretirement benefit obligations of $2.6 billion. The preliminarily estimated increase in future pension and postretirement benefit obligations primarily relates to remeasurement of the liability based on market conditions on the Raytheon Merger closing date. For further information, see “Note 10: Employee Benefit Plans.” In determining the fair value of identifiable assets acquired and liabilities assumed, a review was conducted for any significant contingent assets or liabilities existing as of such closing date. The preliminary assessment did not note any significant contingencies related to existing legal or government action.

The fair values of the customer relationship intangible assets were determined by using an income approach. Under this approach, the estimated future cash flows attributable to the asset are adjusted to exclude the future cash flows that can be attributed to supporting assets, such as trade names or fixed assets. Both the amount and the duration of the cash flows are considered from a market participant perspective. Our estimates of market participant future cash flows considered historical and projected revenues, remaining developmental effort, operational performance including company specific synergies, program life cycles, material and labor pricing, and other relevant customer, contractual and market factors. Where appropriate, the net cash flows are probability-adjusted to reflect the uncertainties associated with the underlying assumptions, including cancellation rates related to backlog, government demand for sole-source and recompete contracts and win rates for recompete contracts, as well as the risk profile of the net cash flows utilized in the valuation. The probability-adjusted future cash flows are then discounted to present value. The customer relationship intangible assets are being amortized based on the pattern of economic benefits we expect to realize over the estimated economic life of the underlying programs. The fair value of the tradename intangible assets were determined utilizing the relief from royalty method which is a form of the income approach. Under this method, a royalty rate based on observed market royalties is applied to projected revenue supporting the tradename and discounted to present value. The tradename intangible assets have been determined to have an indefinite life. The developed technology intangible assets are being amortized based on the pattern of economic benefits. The intangible assets included above consist of the following:


(dollars, in millions)	Estimated Fair Value		Estimated Life
Acquired customer relationships	$	12,900	25 years
Acquired tradenames	5,430		Indefinite
Acquired developed technology	800		5 to 7 years
Total identifiable intangible assets	$	19,130

We also identified customer contractual obligations on loss making programs and recorded liabilities of approximately $218 million related to these programs based on the difference between the actual expected operating loss and a normalized operating profit. These liabilities will be liquidated based on the expected pattern of expenses incurred on these contracts.

We recorded $20.9 billion of goodwill as a result of the Raytheon Merger which primarily relates to expected synergies from combining operations and the value of the existing workforce. The Raytheon Merger creates a premier systems provider with advanced technologies to address rapidly growing segments within aerospace and defense. The Raytheon Merger offers complementary technologies and creates additional growth opportunities while delivering benefits to our shareowners, customers and employees. With our technological and R&D capabilities, Raytheon Technologies will deliver innovative and cost-effective solutions aligned with the highest customer priorities. The goodwill generated as a result of the Raytheon Merger is nondeductible for tax purposes.

Merger-Related Costs. Merger-related costs have been expensed as incurred. In the quarter and six months ended June 30, 2020, approximately $70 million and $99 million, respectively, of transaction and integration costs have been incurred. These costs were recorded in Selling, general and administrative expenses within the Condensed Consolidated Statement of Operations.

Supplemental Pro-Forma Data. Raytheon Company’s results of operations have been included in RTC’s financial statements for the period subsequent to the completion of the Raytheon Merger 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 on a continuing basis, in order to more accurately represent the structure of Raytheon Technologies after completion of the Separation Transactions and the Raytheon Merger.


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions, except per share amounts)	2020		2019		2020		2019
Net sales	$	14,470	$	18,416	$	32,921	$	36,038
Income (loss) from continuing operations attributable to common shareowners	(3,732)		2,006		(3,014)		3,308


Basic (loss) earnings per share of common stock from continuing operations	$	(2.49)	$	1.33	$	(2.08)	$	2.20


Diluted (loss) earnings per share of common stock from continuing operations	(2.49)		1.32		(2.07)		2.19

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

applicable tax impact. As the merger was completed on April 3, 2020, the pro-forma adjustments in the table below only include the required adjustments through April 3, 2020.


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2020		2019		2020		2019
Amortization of acquired Raytheon Company intangible assets, net ⁽¹⁾	$	—	$	(262)	$	(270)	$	(525)
Amortization of fixed asset fair value adjustment ⁽²⁾	—		(9)		(9)		(18)
Utilization of contractual customer obligation ⁽³⁾	—		15		8		29
Deferred revenue fair value adjustment ⁽⁴⁾	—		(8)		(4)		(17)
Adjustment to non-service pension (benefit) cost⁽⁵⁾	—		208		239		416
RTC/Raytheon fees for advisory, legal, accounting services⁽⁶⁾	61		45		96		(96)
Adjustment to interest expense related to debt distributions and Raytheon Merger, net⁽⁷⁾	—		9		9		18
Elimination of deferred commission amortization ⁽⁸⁾	—		7		5		10
	$	61	$	5	$	74	$	(183)

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

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

(3) Reflects the additional amortization of liabilities recognized for certain acquired loss making contracts as of the acquisition date.

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

(5) Represents the elimination of unamortized prior service costs and actuarial losses, as a result of fair value purchase accounting.

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

(7) Reflects the amortization of the fair market value adjustment related to Raytheon Company.

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

Dispositions. As discussed further in “Note 3: Discontinued Operations,” on April 3, 2020, Carrier and Otis entered into a Separation and Distribution Agreement with UTC (since renamed Raytheon Technologies Corporation), pursuant to which, among other things, UTC agreed to separate into three independent, publicly traded companies – UTC, Otis and Carrier and distribute all of the outstanding common stock of Carrier and Otis to UTC shareowners who held shares of 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.

In May 2020, in order to meet the requirements for regulatory approval of the Raytheon Merger, we completed the sale of our airborne tactical radios business for $234 million in cash, net of transaction-related costs. The business was part of our RIS segment. As the transaction occurred subsequent to the Raytheon Merger, the gain of $210 million was not recorded in the Condensed Consolidated Statement of Operations, but rather was recorded as an adjustment to the fair value of net assets acquired in the preliminary allocation of consideration transferred to net assets acquired in the Raytheon Merger, as discussed further above. Income before taxes related to the disposed business for the period from the closing of the Raytheon Merger to disposal date was not material.

In accordance with conditions imposed for regulatory approval of the Raytheon Merger, Collins Aerospace is required to dispose of certain businesses. We expect the disposals to be completed in the third quarter of 2020. The criteria for held for sale accounting treatment was met upon the completion of the Raytheon Merger on April 3, 2020. At June 30, 2020, we had $1,814 million and $90 million of assets and liabilities, respectively, classified as held for sale related to these disposals, which do not qualify for presentation as discontinued operations. These held for sale assets and liabilities are presented in Other assets, current and Accrued liabilities, respectively, on our Condensed Consolidated Balance Sheet. Assets held for sale included $1.6 billion of goodwill and intangible assets. A further breakout of major classes of assets and liabilities has not been provided as the assets and liabilities held for sale are not material.

Goodwill. Changes in our goodwill balances for the six months ended June 30, 2020 were as follows:


(dollars in millions)	Balance as of January 1, 2020		Acquisitions and Divestitures		Impairment Losses		Foreign Currency Translation and Other		Balance as of June 30, 2020
Collins Aerospace Systems⁽¹⁾	$	35,025	$	(886)	$	(3,183)	$	(120)	$	30,836
Pratt & Whitney	1,563		—		—		—		1,563
Raytheon Intelligence & Space	—		8,422		—		2		8,424
Raytheon Missiles & Defense	—		11,067		—		—		11,067
Total Segments	36,588		18,603		(3,183)		(118)		51,890
Eliminations and other	21		1,380		—		(22)		1,379
Total	$	36,609	$	19,983	$	(3,183)	$	(140)	$	53,269

(1) Change in Acquisitions and Divestitures relates to reclassification of Goodwill associated with the Collins Aerospace businesses that are expected to be disposed of in the third quarter of 2020 as criteria for held for sale accounting treatment was met upon completion of the Raytheon Merger on April 3, 2020.

The Company reviews goodwill for impairment annually or more frequently if events or changes in circumstances indicate the asset might be impaired.

The Company has been monitoring the deterioration in general economic and market conditions primarily due to the COVID-19 pandemic. In the second quarter of 2020, we observed several airline customer bankruptcies, delays and cancellations of aircraft purchases by airlines, fleet retirements and repositioning of OEM production schedules. These factors contributed to a deterioration of our expectations regarding the timing of a return to pre-COVID-19 commercial flight activity, which further reduced our expectations regarding future sales and cash flows. We considered these factors to be a triggering event requiring impairment evaluation of goodwill, intangible assets and other assets in our commercial aerospace businesses, Collins Aerospace and Pratt & Whitney.

Impairment evaluations at Collins Aerospace and Pratt & Whitney resulted in several other charges as further discussed in “Note 1: Basis of Presentation and Summary of Accounting Principles.” These charges were primarily due to declines in expected future commercial air traffic, airline bankruptcies, or other impacts such as accelerated fleet retirements and the shift in overhead costs to our military production contracts in joint military/commercial production facilities due to the decline in commercial sales volumes. We also evaluated amortizable intangible assets and identified no impairments.

Finally, we evaluated the Collins Aerospace and Pratt & Whitney reporting units for goodwill impairment and determined that the carrying values of two of the six Collins Aerospace reporting units exceeded the sum of discounted future cash flows, resulting in goodwill impairments of $3.2 billion. Collins Aerospace discounted future cash flow estimates were developed for three scenarios: a base case, downside case, and an upside case. These scenarios included assumptions regarding future airline flight activity, out of warranty hours on original equipment, expected repairs, upgrades and replacements, future OEM manufacturing schedules and related environmental assumptions, including individuals’ desire to return to normal travel, business needs to travel, and potential cures or vaccines to prevent or reduce the effects of COVID-19. These estimates require a significant amount of judgment and are subject to change based upon factors outside our control.

We recorded total goodwill impairments of $3.2 billion related to the two Collins Aerospace reporting units by weighting the three scenarios as follows: 50% for the base case, 40% for the downside case, and 10% for the upside case. We used these weightings, as we believe they reflect the risks and opportunities relative to our current estimates. Goodwill impairment was not indicated for any of the other reporting units evaluated for impairment in any of these scenarios. For these other reporting units, the reporting unit that was closest to impairment was a reporting unit at Collins Aerospace, with a fair value in excess of book value, including goodwill, of $1.4 billion or 19%. Material changes in these estimates could occur and result in additional impairments in future periods. If the discount rate used for the impairment analysis increased or decreased by 25 basis points, the impairments of the two Collins Aerospace reporting units would have increased by$1.2 billion or decreased by $1.3 billion, respectively. If the cash flows were decreased or increased by 10% the impairments would have increased by $2.5 billion or decreased by $2.1 billion, respectively.

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:


	June 30, 2020						December 31, 2019
(dollars in millions)	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
Amortized:

Patents and trademarks	$	47	$	(34)	$	47	$	(34)
Collaboration assets	4,948		(997)		4,862		(920)
Exclusivity assets	2,425		(274)		2,386		(275)
Developed technology and other	1,685		(288)		890		(217)
Customer relationships	29,938		(4,134)		17,750		(3,392)
	$	39,043	$	(5,727)	$	25,935	$	(4,838)
Unamortized:
Trademarks and other	8,687		—		3,376		—
Total	$	47,730	$	(5,727)	$	29,311	$	(4,838)

Exclusivity assets represent payments made to our customers to secure certain contractual rights that 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 recorded as a reduction in revenue.

Intangible assets are tested for impairment when events occur that indicate that the net book value will not be recovered over future cash flows. Given the deterioration in general economic and market conditions primarily due to the COVID-19 pandemic, we performed an assessment of our amortizable intangible assets and no impairment was identified as of June 30, 2020; however, we recorded $17 million and $57 million in the quarter and six months ended June 30, 2020, respectively related to the impairment of an indefinite-lived tradename intangible assets at Collins Aerospace. With the exception of this tradename, the intangible asset that was closest to impairment was another tradename at Collins Aerospace with a fair value in excess of book value of approximately $70 million, or 4%. 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 and six months ended June 30, 2020 and 2019 were $600 million and $907 million and $296 million and $615 million, respectively. The following is the expected amortization of intangible assets for the years 2020 through 2025.


(dollars in millions)	Remaining 2020		2021		2022		2023		2024		2025
Amortization expense	$	1,230	$	2,523	$	1,989	$	2,101	$	2,166	$	2,030

Discontinued Operations and Disposal Groups

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

Discontinued Operations

As discussed above, 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 and Carrier and distribute all of the outstanding common stock of Carrier and Otis to UTC shareowners who held shares of UTC common stock as of the close of business on March 19, 2020. The Separation Transactions were completed on April 3, 2020. In the six months ended June 30, 2020, a total of $1,345 million of costs have been incurred related to the Separation Transactions and recorded in the following financial statement line items: $876 million in Income from discontinued operations, $19 million in Income tax expense from discontinued operations, $35 million in Income from continuing operations and $415 million in Income tax expense.

Carrier and Otis are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Income (loss) from discontinued operations is as follows:


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars, in millions)	2020		2019		2020		2019
Otis	$	—	$	260	$	187	$	522
Carrier	—		544		196		916
Separation related transactions ⁽¹⁾	9		(87)		(895)		(87)
Income (loss) from discontinued operations ⁽²⁾	$	9	$	717	$	(512)	$	1,351

Separation Transactions and the establishment of Otis and Carrier as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges related to separation activities.

(2) Net income for Otis and Carrier for the quarter ended June 30, 2020 prior to the Separation Transactions were not material.

The following summarized financial information related to discontinued operations has been reclassified from Income from continuing operations and included in Income (loss) from discontinued operations:


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars, in millions)	2020		2019		2020		2019
Otis
Net sales	$	—	$	3,348	$	2,966	$	6,444
Cost of products sold	—		1,224		913		2,286
Cost of services sold	—		1,150		1,157		2,284
Research and development	—		35		38		79
Selling, general and administrative expense	—		471		450		913
Other expense, net	—		(19)		(65)		(25)
Non-operating expense, net	—		4		3		8
Income from discontinued operations, before income taxes	—		445		340		849
Income tax expense	—		140		116		256
Income from discontinued operations	—		305		224		593
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations	—		45		37		71
Income from discontinued operations attributable to common shareowners	$	—	$	260	$	187	$	522
Carrier
Net sales	$	—	$	4,956	$	3,884	$	9,273
Cost of products sold	—		2,901		2,239		5,463
Cost of services sold	—		582		527		1,114
Research and development	—		103		98		200
Selling, general and administrative expense	—		735		669		1,420
Other income (expense), net	—		115		(30)		170
Non-operating (income) expense, net	—		(12)		17		(22)
Income from discontinued operations, before income taxes	—		762		304		1,268
Income tax expense	—		209		102		339
Income from discontinued operations	—		553		202		929
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations	—		9		6		13
Income from discontinued operations attributable to common shareowners	$	—	$	544	$	196	$	916
Separation related transactions ⁽¹⁾
Selling, general and administrative expense	$	13	$	—	167		$	—

Non-operating expense, net	43		—		709		—
Loss from discontinued operations, before income taxes	(56)		—		(876)		—
Income tax (benefit) expense	(65)		87		19		87
Income (loss) from discontinued operations, net of tax ⁽²⁾	9		(87)		(895)		(87)
Total Income (loss) from discontinued operations attributable to common shareowners	$	9	$	717	$	(512)	$	1,351

(1) Reflects debt extinguishment costs related to the Company’s paydown of debt to not exceed the maximum applicable net indebtedness under the Raytheon Merger Agreement, and unallocable transaction costs incurred by the Company primarily related to professional services costs pertaining to the Separation Transactions and the establishment of Otis and Carrier as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges related to separation activities.

(2) Net income for Otis and Carrier for the quarter ended June 30, 2020 prior to the Separation Transactions were not material.

Selected financial information related to cash flows from discontinued operations is as follows:


	Six Months Ended June 30,
(dollars, in millions)	2020		2019











Net cash (used in) provided by operating activities	$	(661)	$	841
Net cash used in investing activities	(241)		(114)
Net cash used in financing activities	(1,481)		(698)

Net cash (used in) provided by operating activities includes the net operating cash flows of Otis and Carrier prior to the separation, as well as costs incurred by the Company primarily related to professional services costs pertaining to the separation and the establishment of Otis and Carrier as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges related to separation activities. Net cash used in financing activities primarily consists of cash distributed by the Company to Otis and Carrier upon separation.

The major components of assets and liabilities related to discontinued operations at December 31, 2019 are provided below:


(dollars, in millions)	Otis		Carrier		Total
Assets
Cash and cash equivalents	$	1,446	$	995	$	2,441
Accounts receivable, net	2,899		2,728		5,627
Contract assets, current	530		679		1,209
Inventories and contracts in progress, net	571		1,332		1,903
Other assets, current	213		221		434

Future income tax benefits	355		370		725
Fixed assets, net	747		1,686		2,433
Operating lease right-of-use assets	529		818		1,347
Goodwill	1,647		9,807		11,454
Intangible assets, net	490		1,083		1,573
Other assets	220		2,457		2,677
Total assets related to discontinued operations	$	9,647	$	22,176	$	31,823
Liabilities and Redeemable Noncontrolling Interest
Short-term borrowings	$	33	$	38	$	71
Accounts payable	1,321		1,682		3,003
Accrued liabilities	1,651		2,889		4,540
Contract liabilities, current	2,288		611		2,899
Long-term debt, currently due	1		237		238
Long-term debt	5		82		87
Future pension and postretirement benefit obligations	560		455		1,015
Operating lease liabilities	383		668		1,051

Other long-term liabilities ⁽¹⁾	514		1,025		1,539

Total liabilities related to discontinued operations	$	6,756	$	7,687	$	14,443

(1) Amounts include a deferred tax jurisdictional netting adjustment of $145 million.

The Separation of Carrier was treated as a return on capital and recorded as a reduction to retained earnings, as it was in a net asset position, while the Separation of Otis was treated as a return of capital and recorded as an adjustment to Common stock, as it was in a net liability position. The remaining assets and liabilities related to discontinued operations at June 30, 2020 primarily relate to trailing tax assets and liabilities of the Company related to the Separation Transactions, including indemnification obligations.

Earnings Per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings Per Share


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions, except per share amounts; shares in millions)	2020		2019		2020		2019
Net income (loss) attributable to common shareowners:
Income (loss) from continuing operations attributable to common shareowners	$	(3,844)	$	1,183	$	(3,406)	$	1,895
Income (loss) from discontinued operations	9		717		(512)		1,351
Net income (loss) attributable to common shareowners	$	(3,835)	$	1,900	$	(3,918)	$	3,246
Basic weighted average number of shares outstanding	1,501.3		854.4		1,225.4		853.8
Stock awards and equity units (share equivalent)	—		9.3		—		8.5
Diluted weighted average number of shares outstanding	1,501.3		863.7		1,225.4		862.3
Earnings (Loss) Per Share attributable to common shareowners - Basic:
Income (loss) from continuing operations attributable to common shareowners	$	(2.56)	$	1.38	$	(2.78)	$	2.22
Income (loss) from discontinued operations	0.01		0.84		(0.42)		1.58
Net income (loss) attributable to common shareowners	$	(2.55)	$	2.22	$	(3.20)	$	3.80
Earnings (Loss) Per Share attributable to common shareowners - Diluted:
Income (loss) from continuing operations attributable to common shareowners	$	(2.56)	$	1.37	$	(2.78)	$	2.20
Income (loss) from discontinued operations	0.01		0.83		(0.42)		1.56
Net income (loss) attributable to common shareowners	$	(2.55)	$	2.20	$	(3.20)	$	3.76

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock appreciation rights and stock options, when the average market price of the common stock is lower than the exercise price of the related stock awards during the period because the effect would be anti-dilutive. In addition, the computation of diluted earnings per share excludes the effect of the potential exercise of stock awards when the awards’ assumed proceeds exceed the average market price of the common shares during the period. For the quarter and six months ended June 30, 2020, the number of stock awards excluded from the computation was 36.6 million and 53.3 million, respectively. For the quarter and six months ended June 30, 2019, the number of stock awards excluded from the computation was 11.0 million and 13.0 million, respectively. All outstanding stock awards are excluded in the computation of diluted earnings per share in the quarter and six months ended June 30, 2020 because their effect was antidilutive due to the loss from continuing operations.

Receivables, Loans, Notes Receivable, and Others

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure

Accounts Receivable, Net

Accounts receivable, net consisted of the following:


(dollars in millions)	June 30, 2020		December 31, 2019
Accounts receivable	$	9,990	$	8,997
Allowance for expected credit losses	(494)		(254)
Total accounts receivable, net	$	9,496	$	8,743

The Company enters into various factoring agreements with third-party financial institutions to sell certain of its receivables. Under these factoring arrangements, the Company factored receivables of $3.8 billion and $3.5 billion during the six months ended June 30, 2020 and 2019, respectively. 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 June 30, 2020 and December 31, 2019, the Company had $11 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 expected credit losses related to Accounts receivable for the six months ended June 30, 2020 were as follows:


(dollars in millions)
Balance as of December 31, 2019	$	254
Current period provision for expected credit losses⁽¹⁾	225
Write-offs charged against the allowance for expected credit losses	(3)
Other⁽²⁾	18
Balance as of June 30, 2020	$	494

(1) The current provision for expected credit losses for the six months ended June 30, 2020 includes $194 million of reserves driven by customer bankruptcies and additional general reserves for credit losses primarily due to the current economic environment primarily caused by the COVID-19 pandemic.

(2) Other includes $34 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)

6 Months Ended

Jun. 30, 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 June 30, 2020 and December 31, 2019 are as follows:


(dollars in millions)	June 30, 2020		December 31, 2019
Contract assets	$	9,943	$	4,462
Contract liabilities, current	(11,997)		(9,014)
Contract liabilities, non-current (included within Other long-term liabilities)	(111)		—
Net contract liabilities	$	(2,165)	$	(4,552)

Contract assets increased $5.5 billion during the six months ended June 30, 2020, primarily due to the Raytheon Merger, which accounted for an increase of $5.4 billion. Contract liabilities increased $3.1 billion during the six months ended June 30, 2020 due to the Raytheon Merger, which accounted for an increase of $3.2 billion. We recognized revenue of $625 million and $1,808 million during the quarter and six months ended June 30, 2020, respectively, related to contract liabilities as of January 1, 2020 and $587 million and $1,538 million during the quarter and six months ended June 30, 2019, respectively, related to contract liabilities as of January 1, 2019.

Our contract assets and liabilities also include amounts related to foreign government direct commercial sales contracts for precision guided munitions to certain Middle Eastern customers for which we have not yet obtained regulatory approval and licenses. We had approximately $1.2 billion of total contract value, recognized approximately $400 million of sales for work performed through the date of the Raytheon Merger and approximately $50 million of sales subsequent to the date of the Raytheon Merger through June 30, 2020, and received approximately $450 million in advances as of June 30, 2020 on these contracts. On a contract by contract basis, we had $150 million of both net contract assets and net contract liabilities, related to the contracts pending approval.

Total contract assets include an allowance for credit losses of $155 million as of June 30, 2020. The increase in the allowance for the six months ended June 30, 2020 includes incremental reserves of $108 million related to a number of airline customers that have filed for bankruptcy due to the current economic environment primarily caused by the COVID-19 pandemic. In addition, in the quarter and six months ended June 30, 2020, we wrote off $96 million and $106 million, respectively, of contract assets due to the impact of lower estimated future customer activity principally driven by the expected acceleration of fleet retirements of a certain aircraft.

Inventory

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Inventory [Text Block]

Inventory, net


(dollars in millions)	June 30, 2020		December 31, 2019
Raw materials	$	3,375	$	2,984
Work-in-process	3,031		2,586
Finished goods	3,850		3,477
	$	10,256	$	9,047

Raw materials, work-in-process and finished goods are net of valuation reserves of $1,345 million and $1,122 million as of June 30, 2020 and December 31, 2019, respectively.

Borrowings and Lines of Credit

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Borrowings and Lines of Credit [Text Block]


(dollars in millions)	June 30, 2020		December 31, 2019
Commercial paper	$	160	$	—
Other borrowings	83		2,293
Total short-term borrowings	$	243	$	2,293

As of June 30, 2020, our maximum commercial paper borrowing limit was $5.0 billion as the commercial paper is backed by our $5.0 billion revolving credit agreement. We had $160 million of commercial paper borrowings as of June 30, 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. The commercial paper notes outstanding have original maturities of not more than 90 days from the date of issuance.

In preparation for and in anticipation of the Separation Transactions, the Distributions and the Raytheon Merger, the Company entered into and terminated a number of credit agreements in the six months ended June 30, 2020.

On February 11, 2020 and March 3, 2020, we terminated a $2.0 billion revolving credit agreement and a $4.0 billion term loan credit agreement, respectively. Upon termination, we repaid the $2.1 billion of borrowings outstanding on the $4.0 billion term loan credit agreement. On April 3, 2020, upon the completion of the Raytheon Merger, we terminated a $2.20 billion revolving credit agreement and a $2.15 billion multicurrency revolving credit agreement.

On March 20, 2020 and March 23, 2020, we entered into two $500 million term loan credit agreements and borrowed $1.0 billion under these agreements in the first quarter of 2020. We terminated these agreements on May 5, 2020 and April 28, 2020, respectively, upon repayment.

On March 16, 2020, we entered into a revolving credit agreement with various banks permitting aggregate borrowings of up to $5.0 billion which became available upon completion of the Raytheon Merger on April 3, 2020. This credit agreement matures on April 3, 2025. On May 6, 2020, we entered into a revolving credit agreement with various banks permitting aggregate borrowings of up to $2.0 billion. This credit agreement matures on May 5, 2021. As of June 30, 2020 we had revolving credit agreements with various banks permitting aggregate borrowings of up to $7.0 billion.

In preparation for and in anticipation of the Separation Transactions and Distributions, the Company, Otis and Carrier issued and the Company repaid long-term debt in the six months ended June 30, 2020, which are included in the tables below. On February 10, 2020, Otis entered into a term loan credit agreement providing for a $1.0 billion unsecured, unsubordinated 3-year term loan credit facility which matures on February 10, 2023. Also on February 10, 2020, Carrier entered into a term loan credit agreement providing for a $1.75 billion unsecured, unsubordinated 3-year term loan credit facility which matures February 10, 2023. On March 27, 2020, Otis and Carrier drew on the full amounts of the term loans and distributed the full proceeds to Raytheon Technologies in connection with the Separation Transactions. UTC utilized those amounts to extinguish Raytheon Technologies’ short-term and long-term debt in order to not exceed the maximum applicable net indebtedness required by the Raytheon Merger Agreement.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Income Taxes Our effective tax rate was 1.0% and 0.5% in the quarters ended June 30, 2020 and 2019, respectively. The increase in the effective tax rate for the quarter ended June 30, 2020 is primarily due to the absence of the tax benefit related to the 2019 audit settlements, which decreased the prior year rate by 22.5%, partially offset by a 17.4% increase in the rate associated with the non-deductible goodwill impairment, a 1.6% increase to the rate related to the debt exchange, and a 1.2% increase in the rate associated with a revaluation of certain international tax incentives, with the remaining 1.8% decrease composed of various unrelated items, which individually and collectively are not significant. Our effective tax rate was (22.0)% and 7.4% in the six months ended June 30, 2020 and 2019, respectively. The decrease in the effective tax rate for the six months ended June 30, 2020 is primarily due to the absence of the tax benefit related to the 2019 audit settlements, which decreased the prior year rate by 12.7%, partially offset by a 24.6% increase in the rate associated with the non-deductible goodwill impairment, a 14.3% increase in the rate for the impairment of deferred tax assets as a result of the Separation Transactions or the Raytheon Merger, a 2.2% increase to the rate related to the debt exchange, and a 1.7% increase in the rate associated with a revaluation of certain international tax incentives. The remaining decrease of 0.7% is composed of various unrelated items, which individually and collectively are not significant. 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 Canada, China, France, Germany, India, Philippines, Poland, Singapore, 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 April of 2020, we transferred unrecognized tax benefits to Carrier and Otis of approximately $440 million in the second quarter. Pursuant to the terms of the separation agreements, certain other unrecognized tax benefits retained by Raytheon Technologies will be subject to indemnification. As a result of the Raytheon Merger, unrecognized tax benefits increased during the second quarter by approximately $240 million due to inclusion of items related to pre-merger Raytheon Company tax periods. Additionally, it is reasonably possible that a net reduction within the range of $140 million to $275 million of unrecognized tax benefits may occur within the next 12 months as a result of the revaluation of 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. Interest on unrecognized tax benefits during the quarter ended June 30, 2020 and 2019 were $11 million and $13 million, respectively. The amount of interest accrued at June 30, 2020 was $126 million. Management has determined that the distributions of Carrier and Otis on April 3, 2020, and certain related internal business separation transactions, qualified as tax-free under applicable law. In making these determinations, we applied the tax law in the relevant jurisdictions to our facts and circumstances and either obtained tax rulings from the relevant taxing authorities, tax opinions, and/or other external tax advice related to the concluded tax treatment. If the completed distributions of Carrier or Otis, in each case, or certain internal business separation transactions, were to fail to qualify for tax-free treatment, the Company could be subject to significant liabilities, and there could be material adverse impacts on the Company’s business, financial condition, results of operations and cash flows in future reporting periods. The Examination Division of the Internal Revenue Service (IRS) commenced an audit of Raytheon Technologies tax years 2017 and 2018 in the second quarter of 2020. The Examination Division of the IRS is auditing pre-merger Raytheon Company tax periods 2017, 2018 and 2019 under the IRS Compliance Assurance Program, as well as certain refund claims of Raytheon Company for tax years 2014, 2015 and 2016 filed prior to the Raytheon Merger. The Examination Division of the IRS is also auditing pre-acquisition Rockwell Collins fiscal tax years 2016 and 2017, which is projected to close prior to the end of 2020. As a result of the projected closure of the audit of Rockwell Collins fiscal tax years 2016 and 2017 as well as other potential settlements and statute of limitations expirations, it is reasonably possible that the Company may recognize non-cash gains in the range of $75 million to $125 million, primarily tax, prior to the end of 2020.

Employee Benefit Plans

6 Months Ended

Jun. 30, 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 benefit pension and postretirement benefit (PRB) plans, and defined contribution plans.

On April 3, 2020, UTC completed the Separation Transactions, which included the transfer of certain defined benefit plans from UTC to Otis and Carrier. The plans transferred were primarily international plans with the majority of the UTC defined benefit liability remaining with Raytheon Technologies. Upon separation, the employees within Otis and Carrier were terminated from Raytheon Technologies. The terminations of approximately 3,400 domestic pension plan participants triggered a mid-year remeasurement of the UTC domestic plans. The remeasurement, which was calculated using discount rates and asset values as of April 3, 2020, resulted in a $2.4 billion increase to our pension liability, primarily due to a decrease in the fair market value of the plans’ assets since December 31, 2019. Historical amounts have been restated for discontinued operations. All service cost previously associated with Otis and Carrier is included in discontinued operations. For non-service pension expense and the pension liability, only the portion related to the defined benefit plans that was transferred to Otis and Carrier as part of the Separation Transactions was reclassified to discontinued operations.

Raytheon Company has both funded and unfunded domestic and foreign defined benefit pension and PRB plans. As of the merger date, the Raytheon Company plans were remeasured at fair value using accounting policies consistent with the UTC plans. The deferred pension and PRB plan losses included in Raytheon Company’s accumulated other comprehensive income (loss) as of the merger date were eliminated and are no longer subject to amortization in net periodic benefit (income) cost and postretirement benefit costs. Amounts prior to the merger date of April 3, 2020, do not include the Raytheon Company pension plan results.

Contributions to our plans were as follows:


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2020		2019		2020		2019
US qualified and international defined benefit plans	$	34	$	33	$	42	$	37
Defined contribution plans	227		117		440		252

We made no contributions to our domestic defined benefit pension plans for the quarters and six months ended June 30, 2020 and 2019. Included in the current year contributions to employer sponsored defined contribution plans for the six months ended June 30, 2020 is $77 million of additional contributions resulting from the 2019 amendment to the UTC domestic pension plans whereby plan participants ceased accrual of additional benefits for future service effective December 31, 2019 and began receiving additional employer contributions effective January 1, 2020 under the UTC domestic defined contribution plan.

Future pension and postretirement benefit obligations on the Condensed Consolidated Balance Sheet consisted of the following:


(dollars in millions)	June 30, 2020		December 31, 2019
Long-term pension liabilities	$	13,774	$	1,770
Long-term PRB liabilities	1,069		696
Other pension and PRB related items	129		21
Total long-term pension and PRB liabilities⁽¹⁾	$	14,972	$	2,487

(1) Increase in long-term pension and PRB liabilities is primarily due to the Raytheon Merger and the remeasurement of the UTC legacy plans.

The following table illustrates the components of net periodic benefit (income) cost for our defined pension and PRB plans:


	Pension Benefits Quarter Ended June 30,						Other Postretirement Benefits Quarter Ended June 30,
(dollars in millions)	2020		2019		2020		2019
Operating expense
Service cost	$	142	$	74	$	2	$	1
Non-operating expense
Interest cost	452		321		10		8
Expected return on plan assets	(814)		(568)		(4)		—
Amortization of prior service cost (credit)	13		4		(1)		(11)
Recognized actuarial net loss (gain)	83		49		(3)		(3)
Net settlement and curtailment loss	27		—		—		—
Non-service pension (income) cost	(239)		(194)		2		(6)
Total net periodic benefit (income) cost	$	(97)	$	(120)	$	4	$	(5)


	Pension Benefits Six Months Ended June 30,						Other Postretirement Benefits Six Months Ended June 30,
(dollars in millions)	2020		2019		2020		2019
Operating expense
Service cost	$	179	$	146	$	3	$	2
Non-operating expense
Interest cost	705		642		16		16
Expected return on plan assets	(1,335)		(1,136)		(5)		(1)
Amortization of prior service cost (credit)	26		9		(2)		(22)
Recognized actuarial net loss (gain)	169		98		(6)		(6)
Net settlement and curtailment loss	27		8		—		—
Non-service pension (income) cost	(408)		(379)		3		(13)
Total net periodic benefit (income) cost	$	(229)	$	(233)	$	6	$	(11)

We have set aside assets in separate trusts, which we expect to be used to pay for certain nonqualified defined benefit and defined contribution plan obligations in excess of qualified plan limits. The fair value of marketable securities held in trusts consisted of the following:


(dollars in millions)	June 30, 2020		December 31, 2019
Marketable securities held in trusts	$	758	$	—

Restructuring and Other Costs

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Other Costs [Text Block]

Restructuring Costs

Restructuring costs are generally expensed as incurred. All U.S. government unallowable restructuring costs related to the Raytheon Merger are recorded within Corporate expenses and other unallocated items, as these costs are not included in management’s evaluation of the segments’ performance, and as a result, there are no unallowable restructuring costs at the RIS and RMD segments. During the quarter and six months ended June 30, 2020, we recorded net pre-tax restructuring costs totaling $427 million and $435 million, respectively, for new and ongoing restructuring actions. We recorded charges in the segments as follows:


(dollars in millions)	Quarter Ended June 30, 2020		Six Months Ended June 30, 2020
Pratt & Whitney	$	107	$	107
Collins Aerospace Systems	151		157
Corporate expenses and other unallocated items	169		171

Total	$	427	$	435

Restructuring charges incurred during the quarter and six months ended June 30, 2020 primarily relate to actions initiated during 2020 and 2019, and were recorded as follows:


(dollars in millions)	Quarter Ended June 30, 2020		Six Months Ended June 30, 2020
Cost of sales	$	183	$	188
Selling, general and administrative	244		247



Total	$	427	$	435

2020 Actions. During the quarter ended June 30, 2020, we recorded net pre-tax restructuring costs of $444 million, comprised of $199 million in cost of sales and $245 million in selling, general and administrative expenses. During the six months ended June 30, 2020, we recorded net pre-tax restructuring costs of $446 million, comprised of $200 million in cost of sales and $246 million in selling, general and administrative expenses. The 2020 actions primarily relate to severance and restructuring actions resulting from the Raytheon Merger, severance and restructuring actions at Pratt & Whitney and Collins Aerospace in response to the anticipated impact on our operating results related to the current economic environment primarily caused by the COVID-19 pandemic, and 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 and six months ended June 30, 2020:


(dollars in millions)	Severance		Facility Exit and Other Costs		Total
Quarter Ended June 30, 2020
Restructuring accruals at March 31, 2020	$	2	$	—	$	2
Net pre-tax restructuring costs	443		1		444
Utilization, foreign exchange and other costs	(50)		(1)		(51)
Balance at June 30, 2020	$	395	$	—	$	395

Six Months Ended June 30, 2020
Restructuring accruals at December 31, 2019	$	—	$	—	$	—
Net pre-tax restructuring costs	445		1		446
Utilization, foreign exchange and other costs	(50)		(1)		(51)
Balance at June 30, 2020	$	395	$	—	$	395

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		Costs Incurred Quarter Ended June 30, 2020		Remaining Costs at June 30, 2020
Pratt & Whitney	$	131	$	—	$	(130)	$	1
Collins Aerospace Systems	184		(1)		(146)		37
Corporate expenses and other unallocated items	169		(1)		(168)		—

Total	$	484	$	(2)	$	(444)	$	38

We are targeting to complete the majority of the remaining workforce and facility related cost reduction actions during 2020 and 2021.

2019 Actions. During the quarter ended June 30, 2020, we reversed $9 million of net pre-tax restructuring costs for restructuring actions initiated in 2019, all of which was recorded in cost of sales. During the six months ended June 30, 2020, we recorded a reversal of net pre-tax restructuring costs totaling $4 million for restructuring actions initiated in 2019, including a reversal of $7 million in cost of sales, partially offset by expense of $3 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 and six months ended June 30, 2020:


(dollars in millions)	Severance		Facility Exit, and Other Costs		Total
Quarter Ended June 30, 2020
Restructuring accruals at March 31, 2020	$	36	$	10	$	46
Net pre-tax restructuring costs	(9)		—		(9)
Utilization, foreign exchange and other costs	(10)		—		(10)
Balance at June 30, 2020	$	17	$	10	$	27

Six Months Ended June 30, 2020
Restructuring accruals at December 31, 2019	$	47	$	11	$	58
Net pre-tax restructuring costs	(6)		2		(4)
Utilization, foreign exchange and other costs	(24)		(3)		(27)
Balance at June 30, 2020	$	17	$	10	$	27

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		Costs Incurred Quarter Ended June 30, 2020		Remaining Costs at June 30, 2020
Pratt & Whitney	$	121	$	(133)	$	—	$	12	$	—
Collins Aerospace Systems	112		(27)		(5)		(3)		77
Corporate expenses and other unallocated items	2		(2)		—		—		—

Total	$	235	$	(162)	$	(5)	$	9	$	77

2018 and Prior Actions. During the quarter and six months ended June 30, 2020, we reversed net pre-tax restructuring costs totaling $8 million and $7 million, respectively, for restructuring actions initiated in 2018 and prior. As of June 30, 2020, we have approximately $48 million of accrual balances remaining related to 2018 and prior actions.

Financial Instruments

6 Months Ended

Jun. 30, 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 815) 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 aggregate notional amount of our outstanding foreign currency hedges was $13.5 billion and $13.0 billion at June 30, 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 June 30, 2020 and December 31, 2019:


(dollars in millions)	Balance Sheet Location	June 30, 2020		December 31, 2019
Derivatives designated as hedging instruments:

Foreign exchange contracts	Other assets, current	$	30	$	23



	Accrued liabilities	(334)		(166)


Derivatives not designated as hedging instruments:

Foreign exchange contracts	Other assets, current	$	19	$	23



	Accrued liabilities	(47)		(116)

The effect of cash flow hedging relationships on Accumulated other comprehensive income and on the Condensed Consolidated Statement of Operations for the quarters and six months ended June 30, 2020 and 2019 are presented in the table below. The amounts of loss are attributable to foreign exchange contract activity and are generally recorded as a component of Product sales when reclassified from Accumulated other comprehensive income.


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2020		2019		2020		2019
(Loss) gain recorded in Accumulated other comprehensive loss	$	188	$	21	$	(215)	$	28
Loss reclassified from Accumulated other comprehensive loss into Product sales	27		16		56		20

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 June 30, 2020, we have €500 million of euro-denominated long-term debt outstanding, which qualifies as a net investment hedge against our investments in European businesses. As of June 30, 2020, the net investment hedge is deemed to be effective.

Assuming current market conditions continue, $77 million of pre-tax losses is expected to be reclassified from Accumulated other comprehensive loss into Product sales to reflect the fixed prices obtained from foreign exchange hedging within the next 12 months. At June 30, 2020, all derivative contracts accounted for as cash flow hedges will mature by January 21, 2028.

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


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2020		2019		2020		2019
Foreign exchange contracts	$	10	$	27	$	(29)	$	60

Fair Value Measurements

6 Months Ended

Jun. 30, 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 basis in our Condensed Consolidated Balance Sheet as of June 30, 2020 and December 31, 2019:


	June 30, 2020
(dollars in millions)	Total		Level 1		Level 2		Level 3
Recurring fair value measurements:

Marketable securities held in trusts	$	758	$	758	$	—	$	—
Derivative assets	49		—		49		—
Derivative liabilities	(381)		—		(381)		—


	December 31, 2019
(dollars in millions)	Total		Level 1		Level 2		Level 3
Recurring fair value measurements:
Available-for-sale securities	$	53	$	53	$	—	$	—
Derivative assets	46		—		46		—
Derivative liabilities	(282)		—		(282)		—

Valuation Techniques. Our available-for-sale securities include equity investments that are traded in active markets, either domestically or internationally, and are measured at fair value using closing stock prices from active markets. Our derivative assets and liabilities include foreign exchange contracts that are measured at fair value using internal models based on observable market inputs such as forward rates, interest rates, our own credit risk and our counterparties’ credit risks.

As of June 30, 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 June 30, 2020 and December 31, 2019:


	June 30, 2020						December 31, 2019
(dollars in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value

Customer financing notes receivable	$	281	$	276	$	220	$	220
Short-term borrowings	(243)		(243)		(2,293)		(2,293)
Long-term debt (excluding finance leases)	(32,442)		(37,165)		(40,883)		(45,887)
Long-term liabilities	(48)		(46)		(334)		(320)

The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Condensed Consolidated Balance Sheet at June 30, 2020 and December 31, 2019:


	June 30, 2020
(dollars in millions)	Total		Level 1		Level 2		Level 3

Customer financing notes receivable	$	276	$	—	$	276	$	—
Short-term borrowings	(243)		—		(160)		(83)
Long-term debt (excluding finance leases)	(37,165)		—		(28,842)		(8,323)
Long-term liabilities	(46)		—		(46)		—


	December 31, 2019
(dollars in millions)	Total		Level 1		Level 2		Level 3

Customer financing notes receivable	$	220	$	—	$	220	$	—
Short-term borrowings	(2,293)		—		—		(2,293)
Long-term debt (excluding finance leases)	(45,887)		—		(45,802)		(85)
Long-term liabilities	(320)		—		(320)		—

- 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

Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2020

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

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

Accumulated Other Comprehensive Loss

A summary of the changes in each component of Accumulated other comprehensive loss, net of tax for the quarters and six months ended June 30, 2020 and 2019 is provided below:


(dollars in millions)	Foreign Currency Translation		Pension and Post-retirement Plans		Unrealized Hedging (Losses) Gains		Accumulated Other Comprehensive Income (Loss)
Quarter Ended June 30, 2020
Balance at March 31, 2020	$	(4,647)	$	(6,693)	$	(448)	$	(11,788)
Other comprehensive income (loss) before reclassifications, net	665		(2,371)		188		(1,518)
Amounts reclassified, pre-tax	—		85		27		112
Tax benefit (expense)	3		568		(52)		519

Separation of Otis and Carrier, net of tax	3,287		584		4		3,875
Balance at June 30, 2020	$	(692)	$	(7,827)	$	(281)	$	(8,800)

Six Months Ended June 30, 2020
Balance at December 31, 2019	$	(3,211)	$	(6,772)	$	(166)	$	(10,149)
Other comprehensive income (loss) before reclassifications, net	(780)		(2,363)		(215)		(3,358)
Amounts reclassified, pre-tax	—		187		56		243
Tax benefit (expense)	12		537		40		589

Separation of Otis and Carrier, net of tax	3,287		584		4		3,875
Balance at June 30, 2020	$	(692)	$	(7,827)	$	(281)	$	(8,800)


(dollars in millions)	Foreign Currency Translation		Pension and Post-retirement Plans		Unrealized Hedging (Losses) Gains		Accumulated Other Comprehensive Income (Loss)
Quarter Ended June 30, 2019
Balance at March 31, 2019	$	(2,932)	$	(6,422)	$	(165)	$	(9,519)
Other comprehensive income (loss) before reclassifications, net	(435)		(13)		21		(427)
Amounts reclassified, pre-tax	(1)		43		16		58
Tax expense (benefit)	14		(6)		(12)		(4)

Balance at June 30, 2019	$	(3,354)	$	(6,398)	$	(140)	$	(9,892)

Six Months Ended June 30, 2019
Balance at December 31, 2018	$	(3,442)	$	(5,718)	$	(173)	$	(9,333)
Other comprehensive income (loss) before reclassifications, net	95		(14)		28		109
Amounts reclassified, pre-tax	—		87		20		107
Tax expense (benefit)	1		(16)		(15)		(30)
ASU 2018-02 adoption impact	(8)		(737)		—		(745)
Balance at June 30, 2019	$	(3,354)	$	(6,398)	$	(140)	$	(9,892)

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 TCJA. We elected to reclassify the income tax effects of the 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 10: Employee Benefit Plans” for additional details).

Variable Interest Entities

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity Disclosure

Variable Interest Entities

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


(dollars in millions)	June 30, 2020		December 31, 2019
Current assets	$	6,097	$	5,448
Noncurrent assets	908		894
Total assets	$	7,005	$	6,342
Current liabilities	$	6,904	$	6,971
Noncurrent liabilities	109		94
Total liabilities	$	7,013	$	7,065

Guarantees

6 Months Ended

Jun. 30, 2020

Service and Product Warranties and Product Performance Guarantees [Abstract]

Guarantees [Text Block]

Guarantees

We extend a variety of financial, market value and performance guarantees to third parties. These instruments expire on various dates through 2024. Additional guarantees of project performance for which there is no stated value also remain outstanding. As of June 30, 2020 and December 31, 2019, the following guarantees related to continuing operations were outstanding:


(dollars in millions)	June 30, 2020						December 31, 2019
	Maximum Potential Payment		Carrying Amount of Liability		Maximum Potential Payment		Carrying Amount of Liability
Commercial aerospace financing arrangements	$	333	$	8	$	333	$	7
Third party guarantees⁽¹⁾	365		4		48		—

(1) Increase in guarantees is primarily due to the Raytheon Merger.

We also have obligations arising from sales of certain businesses and assets, including those from representations and warranties and related indemnities for environmental, health and safety, tax and employment matters. The maximum potential payment related to these obligations is not a specified amount as a number of the obligations do not contain financial caps. The carrying amount of liabilities related to these obligations was $121 million and $166 million at June 30, 2020 and December 31, 2019, respectively. For additional information regarding the environmental indemnifications, see ”Note 17: Commitments and Contingencies.”

We accrue for costs associated with guarantees when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts, and where no amount within a range of estimates is more likely, the minimum is accrued.

We also provide service and warranty policies on our products and extend performance and operating cost guarantees beyond our normal service and warranty policies on some of our products, particularly commercial aircraft engines. In addition, we incur discretionary costs to service our products in connection with specific product performance issues. Liabilities for performance and operating cost guarantees are based upon future product performance and durability, and are largely estimated based upon historical experience. Adjustments are made to accruals as claim data and historical experience warrant. The changes in the carrying amount of service and product warranties and product performance guarantees for the six months ended June 30, 2020 and 2019 are as follows:


(dollars in millions)	2020		2019
Balance as of January 1	$	1,033	$	929
Warranties and performance guarantees issued	149		212
Settlements	(154)		(155)
Other	(20)		9
Balance as of June 30	$	1,008	$	995

Contingent Liabilities	6 Months Ended
Contingent Liabilities	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingent Liabilities [Text Block]	Commitments and Contingencies Summarized below are the matters previously described in “Note 16: Contingent Liabilities” within 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: Basis of Presentation and Summary of Accounting Principles,” 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. At June 30, 2020 and December 31, 2019, we had $811 million and $725 million, respectively, reserved for environmental remediation. Additional information pertaining to environmental matters is included in “Note 1: Basis of Presentation and Summary of Accounting Principles.” Commercial Aerospace Financing and Other Commitments. We had commercial aerospace financing and other contractual commitments of approximately $15.0 billion as of both June 30, 2020 and December 31, 2019 on a gross basis before reduction for our collaboration partners’ share. These commitments primarily relate to financing commitments to our commercial aerospace industry customers and commitments to secure certain contractual rights to provide product on new aircraft platforms. In connection with our 2012 agreement to acquire Rolls-Royce’s ownership and collaboration interests in International Aero Engines AG (IAE), additional payments are due to Rolls-Royce contingent upon each hour flown through June 2027 by the V2500-powered aircraft in service as of the acquisition date. These flight hour payments, which are considered in other contractual commitments above, are being capitalized as collaboration intangible assets. Associated risks on these commitments are mitigated due to the fact that 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 financing commitments is expected to equal the amounts funded. Other Financing Arrangements. We have entered into standby letters of credit and surety bonds with financial institutions to meet various bid, performance, warranty, retention and advance payment obligations for us or our affiliates. We enter into these agreements to assist certain affiliates in obtaining financing on more favorable terms, making bids on contracts and performing their contractual obligations. The stated values of these letters of credit agreements and surety bonds totaled $4.9 billion as of June 30, 2020. Offset Obligations. We have entered into industrial cooperation agreements, sometimes in the form of either offset agreements or ICIP agreements, as a condition to obtaining orders for our products and services from certain customers in foreign countries. At June 30, 2020, the aggregate amount of our offset agreements, both agreed to and anticipated to be agreed to, had an outstanding notional value of approximately $12.6 billion. These agreements are designed to return economic value to the foreign country by requiring us to engage in activities supporting local defense or commercial industries, promoting a balance of trade, developing in-country technology capabilities or addressing other local development priorities. Offset agreements may be satisfied through activities that do not require a direct cash payment, including transferring technology, providing manufacturing, training and other consulting support to in-country projects, and the purchase by third parties (e.g., our vendors) of supplies from in-country vendors. These agreements may also be satisfied through our use of cash for activities such as subcontracting with local partners, purchasing supplies from in-country vendors, providing financial support for in-country projects and making investments in local ventures. Such activities may also vary by country depending upon requirements as dictated by their governments. We typically do not commit to offset agreements until orders for our products or services are definitive. The amounts ultimately applied against our offset agreements are based on negotiations with the customers and typically require cash outlays that represent only a fraction of the notional value in the offset agreements. Offset programs usually extend over several or more years and may provide for penalties in the event we fail to perform in accordance with offset requirements. Historically, we have not been required to pay any penalties of significance. Government Oversight. 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 DCMA asserted a claim against Pratt & Whitney to recover overpayments of approximately $1.73 billion plus interest ($621 million at June 30, 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 ($105 million at June 30, 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 ($64 million at June 30, 2020), which we also believe is without merit and which Pratt & Whitney appealed to the ASBCA in January 2019. Thales-Raytheon Systems Matter As previously disclosed in Raytheon Company’s Form 10-K for the year ended December 31, 2019, in 2019, Raytheon Company received a subpoena from the Securities and Exchange Commission (SEC) seeking information in connection with an investigation into whether there were improper payments made by Thales-Raytheon Systems (TRS) or anyone acting on their behalf in connection with TRS or Raytheon contracts in certain Middle East countries since 2014. In the first quarter of 2020, the Department of Justice (DOJ) advised Raytheon it had opened a parallel investigation. Raytheon maintains a rigorous anti-corruption compliance program, is cooperating fully with the SEC’s inquiry, and is examining whether there has been any conduct that is in violation of Raytheon policy. At this time, there is no ability to predict the outcome of the SEC’s or DOJ’s inquiry. Based on the information available to date, however, we do not believe the results of this inquiry will have a material adverse effect on our financial condition, results of operations or liquidity. This matter became applicable to Raytheon Technologies following the April 3, 2020 Raytheon Merger. Other. As described in “Note 16: Guarantees,” we extend performance and operating cost guarantees beyond our normal warranty and service policies for extended periods on some of our products. We have accrued our estimate of the liability that may result under these guarantees and for service costs that are probable and can be reasonably estimated. We also have other commitments and contingent liabilities related to legal proceedings, self-insurance programs and matters arising out of the normal course of business. We accrue contingencies based upon a range of possible outcomes. If no amount within this range is a better estimate than any other, then we accrue the minimum amount. 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

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Segment Financial Data

Our operations, effective as of the date of the Raytheon Merger, are classified into four principal segments: Collins Aerospace, Pratt & Whitney, RIS and RMD. 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. The results of RIS and RMD reflect the period subsequent to the completion of the Raytheon Merger on April 3, 2020. See “Note 20: Segment Financial Data” within the Notes to the Consolidated Financial Statements in our 2019 Annual Report for a description of the Collins Aerospace and Pratt & Whitney segments.

Raytheon Intelligence & Space is a leading developer and provider of integrated sensor and communication systems for advanced missions, including space-enabled information and multi-domain intelligence solutions, as well as electronic warfare solutions, advanced training and logistic services, and cyber and software solutions to intelligence, defense, federal and commercial customers worldwide.

Raytheon Missiles & Defense is a leading designer, developer, integrator and producer of missile and combat systems for the armed forces of the U.S. and allied nations and a leader in integrated air and missile defense, large land- and sea-based radar solutions, command, control, communications, computers, cyber and intelligence solutions, naval combat and ship electronic and sensing systems, and undersea sensing and effects solutions.

In conjunction with the Raytheon Merger, we revised our measurement of segment performance to reflect how management now reviews and evaluates operating performance. Under the new segment performance measurement, certain acquisition accounting adjustments are now excluded from segments’ results in order to better represent the ongoing operational performance of those segments. In addition, the majority of Corporate expenses are now allocated to the segments, excluding certain items that remain at Corporate because they are not included in management’s review of the segments’ results. Historical results, discussion and presentation of our business segments reflect the impact of these adjustments for all periods

presented. Also as a result of the Raytheon Merger, we now present a FAS/CAS operating adjustment outside of segment results, which represents the difference between our service cost component of our pension and PRB expense under the Financial Accounting Standards (FAS) requirements of U.S. GAAP and our pension and PRB expense under U.S. government Cost Accounting Standards (CAS) primarily related to our RIS and RMD segments. Because the Collins Aerospace and Pratt & Whitney segments generally record pension and PRB expense on a FAS basis, historical results were not impacted by this change in segment reporting.

Recast segment sales and operating profit, reflecting the performance measurement changes described above, were as follows:


Total Net Sales	Quarter Ended													Twelve Months Ended
(dollars in millions)	March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019			December 31, 2019
Collins Aerospace Systems	$	6,438	$	6,444	$	6,495	$	6,576	$	6,513		$	26,028
Pratt & Whitney	5,353		5,645		5,285		5,154		4,818			$	20,902
Raytheon Intelligence & Space	—		—		—		—		—		—	—
Raytheon Missiles & Defense	—		—		—		—		—		—	—
Total segment	11,791		12,089		11,780		11,730		11,331			$	46,930
Eliminations and other	(431)		(395)		(407)		(401)		(378)			(1,581)
Consolidated	$	11,360	$	11,694	$	11,373	$	11,329	$	10,953		$	45,349


Operating Profit	Quarter Ended													Twelve Months Ended
(dollars in millions)	March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019			December 31, 2019
Collins Aerospace Systems	$	1,246	$	1,009	$	1,259	$	1,276	$	964		$	4,508
Pratt & Whitney	475		354		520		449		478			1,801
Raytheon Intelligence & Space	—		—		—		—		—		—	—
Raytheon Missiles & Defense	—		—		—		—		—		—	—
Total segment	1,721		1,363		1,779		1,725		1,442			6,309
Eliminations and other	(25)		(25)		(46)		(42)		(27)			(140)
Corporate expenses and other unallocated items	(130)		(151)		(83)		(87)		(46)			(367)
FAS/CAS operating adjustment	—		—		—		—		—			—
Acquisition accounting adjustments	(271)		(231)		(220)		(210)		(227)			$	(888)
Consolidated	$	1,295	$	956	$	1,430	$	1,386	$	1,142		$	4,914

Total sales and operating profit by segment include inter-segment sales which are generally recorded at prices approximating those that the selling entity is able to obtain on external sales for our Collins Aerospace and Pratt & Whitney segments, and at cost-plus a specified fee, which may differ from what the selling entity would be able to obtain on sales to external customers, for our RIS and RMD segments. Results for the quarters ended June 30, 2020 and 2019 are as follows:


	Net Sales						Operating Profits						Operating Profit Margins
(dollars in millions)	2020		2019		2020		2019		2020		2019
Collins Aerospace Systems	$	4,202	$	6,576	$	(317)	$	1,276	(7.5)	%	19.4	%
Pratt & Whitney	3,487		5,154		(457)		449		(13.1)	%	8.7	%
Raytheon Intelligence & Space	3,314		—		311		—		9.4	%	—	%
Raytheon Missiles & Defense	3,590		—		397		—		11.1	%	—	%
Total segment	14,593		11,730		(66)		1,725		(0.5)	%	14.7	%
Eliminations and other⁽¹⁾	(532)		(401)		(28)		(42)
Corporate expenses and other unallocated items ⁽²⁾	—		—		(277)		(87)
FAS/CAS operating adjustment	—		—		356		—
Acquisition accounting adjustments	—		—		(3,745)		(210)
Consolidated	$	14,061	$	11,329	$	(3,760)	$	1,386	(26.7)	%	12.2	%

(1) Includes the operating results of certain smaller non-reportable business segments, including Forcepoint, LLC, which was acquired as part of the Raytheon Merger.

(2) The net expenses related to the U.S. Army’s Lower Tier Air and Missile Defense Sensor (LTAMDS) project of $35 million in the three months ended June 30, 2020 are included in Corporate operating profit as they are not included in management’s evaluation of business segment results. No amounts were recorded in the quarter ended June 30, 2019.

Results for the six months ended June 30, 2020 and 2019 are as follows:


	Net Sales						Operating Profits						Operating Profit Margins
(dollars in millions)	2020		2019		2020		2019		2020		2019
Collins Aerospace Systems	$	10,640	$	13,089	$	929	$	2,240	8.7	%	17.1	%
Pratt & Whitney	8,840		9,972		18		927		0.2	%	9.3	%
Raytheon Intelligence & Space	3,314		—		311		—		9.4	%	—	%
Raytheon Missiles & Defense	3,590		—		397		—		11.1	%	—	%
Total segment	26,384		23,061		1,655		3,167		6.3	%	13.7	%
Eliminations and other ⁽¹⁾	(963)		(779)		(53)		(69)
Corporate expenses and other unallocated items ⁽²⁾	—		—		(407)		(133)
FAS/CAS operating adjustment	—		—		356		—
Acquisition accounting adjustments	—		—		(4,016)		(437)
Consolidated	$	25,421	$	22,282	$	(2,465)	$	2,528	(9.7)	%	11.3	%

(1) Includes the operating results of certain smaller non-reportable business segments, including Forcepoint, LLC, which was acquired as part of the Raytheon Merger.

(2) The net expenses related to the U.S. Army’s LTAMDS project of $35 million in the six months ended June 30, 2020 are included in Corporate operating profit as they are not included in management’s evaluation of business segment results. No amounts were recorded in the six months ended June 30, 2019.

Total assets by segment are as follows:


	Total Assets
(dollars in millions)	June 30, 2020		December 31, 2019
Collins Aerospace Systems⁽¹⁾	$	70,791	$	74,049
Pratt & Whitney⁽¹⁾	31,749		31,170
Raytheon Intelligence & Space⁽¹⁾	20,137		—
Raytheon Missiles & Defense⁽¹⁾	29,681		—
Total segment	152,358		105,219
Corporate and other	9,024		2,573
Assets related to discontinued operations	135		31,823
Consolidated	$	161,517	$	139,615

(1) Total assets include acquired intangible assets and property, plant and equipment fair value adjustment. Related amortization expense is included in Acquisition accounting adjustments.

We disaggregate our contracts from customers by geographic location, by customer and by sales type. Our geographic location is based on customer location, utilizing end user customer location where known or practical. In instances in which determining the end user customer is not known or practical, we utilize ship to location as the customer location. In addition, for our RIS and RMD segments, we disaggregate our contracts from customers by contract type. We believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Historical results have been recast to reflect the presentation of this disaggregation.

Segment sales disaggregated by geographic region for the quarters ended June 30, 2020 and 2019 are as follows:


	2020																						2019
(dollars in millions)	Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total		Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total
United States	$	2,505	$	1,892	$	2,565	$	2,150	$	49	$	9,161	$	3,233	$	2,076	$	—	$	—	$	2	$	5,311
Asia Pacific	388		787		195		351		13		1,734		606		1,277		—		—		—		1,883
Middle East and North Africa	99		122		122		720		8		1,071		184		198		—		—		—		382
Europe	787		512		102		291		66		1,758		1,795		1,181		—		—		—		2,976
Canada and All Other	114		177		24		14		8		337		356		421		—		—		—		777
Consolidated net sales	3,893		3,490		3,008		3,526		144		14,061		6,174		5,153		—		—		2		11,329
Inter-segment sales	309		(3)		306		64		(676)		—		402		1		—		—		(403)		—
Business segment sales	$	4,202	$	3,487	$	3,314	$	3,590	$	(532)	$	14,061	$	6,576	$	5,154	$	—	$	—	$	(401)	$	11,329

Segment sales disaggregated by geographic region for the six months ended June 30, 2020 and 2019 are as follows:


	2020																						2019
(dollars in millions)	Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total		Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total
United States	$	5,649	$	4,247	$	2,565	$	2,150	$	47	$	14,658	$	6,321	$	4,093	$	—	$	—	$	6	$	10,420
Asia Pacific	992		2,208		195		351		13		3,759		1,178		2,478		—		—		—		3,656
Middle East and North Africa	242		294		122		720		8		1,386		368		396		—		—		—		764
Europe	2,532		1,529		102		291		66		4,520		3,679		2,173		—		—				5,852
Canada and All Other	486		559		24		14		15		1,098		756		834		—		—		—		1,590
Consolidated net sales	9,901		8,837		3,008		3,526		149		25,421		12,302		9,974		—		—		6		22,282
Inter-segment sales	739		3		306		64		(1,112)		—		787		(2)		—		—		(785)		—
Business segment sales	$	10,640	$	8,840	$	3,314	$	3,590	$	(963)	$	25,421	$	13,089	$	9,972	$	—	$	—	$	(779)	$	22,282

Segment sales disaggregated by customer for the quarters ended June 30, 2020 and 2019 are as follows:


	2020																						2019
(dollars in millions)	Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total		Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total
U.S. government⁽¹⁾	$	1,353	$	1,283	$	2,497	$	2,141	$	54	$	7,328	$	1,286	$	1,148	$	—	$	—	$	—	$	2,434
Foreign military sales through the U.S. government	77		281		202		782		—		1,342		75		315		—		—		—		390
Foreign government direct commercial sales	204		122		209		569		—		1,104		248		134		—		—		—		382
Commercial aerospace and other commercial	2,259		1,804		100		34		90		4,287		4,565		3,556		—		—		2		8,123
Consolidated net sales	3,893		3,490		3,008		3,526		144		14,061		6,174		5,153		—		—		2		11,329
Inter-segment sales	309		(3)		306		64		(676)		—		402		1		—		—		(403)		—
Business segment sales	$	4,202	$	3,487	$	3,314	$	3,590	$	(532)	$	14,061	$	6,576	$	5,154	$	—	$	—	$	(401)	$	11,329

(1) Excludes foreign military sales through the U.S. government.

Segment sales disaggregated by customer for the six months ended June 30, 2020 and 2019 are as follows:


	2020																						2019
(dollars in millions)	Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total		Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total
U.S. government⁽¹⁾	$	2,642	$	2,522	$	2,497	$	2,141	$	54	$	9,856	$	2,312	$	2,152	$	—	$	—	$	—	$	4,464
Foreign military sales through the U.S. government	132		552		202		782		—		1,668		126		566		—		—		—		692
Foreign government direct commercial sales	429		260		209		569		—		1,467		483		284		—		—		—		767
Commercial aerospace and other commercial	6,698		5,503		100		34		95		12,430		9,381		6,972		—		—		6		16,359
Consolidated net sales	9,901		8,837		3,008		3,526		149		25,421		12,302		9,974		—		—		6		22,282
Inter-segment sales	739		3		306		64		(1,112)		—		787		(2)		—		—		(785)		—
Business segment sales	$	10,640	$	8,840	$	3,314	$	3,590	$	(963)	$	25,421	$	13,089	$	9,972	$	—	$	—	$	(779)	$	22,282

(1) Excludes foreign military sales through the U.S. government.

Segment sales disaggregated by sales type for the quarters ended June 30, 2020 and 2019 are as follows:


	2020																						2019
(dollars in millions)	Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total		Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total
Product	$	3,190	$	1,888	$	2,333	$	3,232	$	125	$	10,768	$	5,076	$	3,310	$	—	$	—	$	2	$	8,388
Service	703		1,602		675		294		19		3,293		1,098		1,843		—		—		—		2,941
Consolidated net sales	$	3,893	$	3,490	$	3,008	$	3,526	$	144	$	14,061	$	6,174	$	5,153	$	—	$	—	$	2	$	11,329
Inter-segment sales	309		(3)		306		64		(676)		—		402		1		—		—		(403)		—
Business segment sales	$	4,202	$	3,487	$	3,314	$	3,590	$	(532)	$	14,061	$	6,576	$	5,154	$	—	$	—	$	(401)	$	11,329

Segment sales disaggregated by sales type for the six months ended June 30, 2020 and 2019 are as follows:


	2020																						2019
(dollars in millions)	Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total		Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total
Product	$	8,094	$	5,143	$	2,333	$	3,232	$	130	$	18,932	$	10,132	$	6,286	$	—	$	—	$	6	$	16,424
Service	1,807		3,694		675		294		19		6,489		2,170		3,688		—		—		—		5,858
Consolidated net sales	$	9,901	$	8,837	$	3,008	$	3,526	$	149	$	25,421	$	12,302	$	9,974	$	—	$	—	$	6	$	22,282
Inter-segment sales	739		3		306		64		(1,112)		—		787		(2)		—		—		(785)		—
Business segment sales	$	10,640	$	8,840	$	3,314	$	3,590	$	(963)	$	25,421	$	13,089	$	9,972	$	—	$	—	$	(779)	$	22,282

RIS and RMD segment sales disaggregated by contract type for the quarter and six months ended June 30, 2020 are as follows:


	Quarter Ended June 30, 2020										Six Months Ended June 30, 2020
(dollars in millions)	Raytheon Intelligence & Space		Raytheon Missiles & Defense		Total		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Total
Fixed-price	$	1,203	$	2,178	$	3,381	$	1,203	$	2,178	$	3,381
Cost-type	1,805		1,348		3,153		1,805		1,348		3,153

Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Consolidation, Policy

Use of Estimates, Policy

Cash and Cash Equivalents, Policy

Receivable

Contract with Customer, Contract Assets and Liabilities

Inventory, Policy

Inventory. Inventory is stated at the lower of cost or estimated realizable value and are primarily based on first-in, first-out (FIFO) or average cost methods.

Equity Method Investments

Financing Receivable

Business Combinations Policy

Goodwill and Intangible Assets, Policy


			Years
Collaboration assets			30
Customer relationships and related programs			1 to 32
Developed technology			5 to 25
Patents & trademarks			4 to 40
Exclusivity assets			5 to 25

Lessee, Leases

Impairment or Disposal of Long-Lived Assets, Policy

Income Tax, Policy

Revenue

Timing of the satisfaction of performance obligations varies across our businesses due to our diverse product and service mix, customer base, and contractual terms.

Net EAC adjustments had the following impact on our operating results:


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions, except per share amounts)	2020		2019		2020		2019
Operating profit (loss)	$	(151)	$	(69)	$	(130)	$	(81)
Income (loss) from continuing operations attributable to common shareowners⁽¹⁾	(119)		(55)		(103)		(64)
Diluted earnings (loss) per share from continuing operations attributable to common shareholders ⁽¹⁾	$	(0.08)	$	(0.06)	$	(0.08)	$	(0.07)

(1) Amounts reflect a U.S. statutory tax rate of 21%, which approximates our effective tax rate on our EAC adjustments.

Remaining Performance Obligations

Research and Development Expense, Policy

Research and Development. Company-sponsored research and development costs, including those costs related to the Company’s portion in connection with cost-sharing arrangements, are charged to expense as incurred and recovery on these cost-sharing arrangements is recorded as a reduction to research and development expense as earned. Customer-sponsored research and development projects performed under contracts with customers are accounted for as contract costs and reported as cost of sales on related to revenue generating contracts.

Foreign Currency Transactions and Translations Policy

Derivatives, Policy

Environmental Costs, Policy

Pension and Other Postretirement Plans, Policy

These gains or losses are recorded in other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit (income) cost.

Extended Product Warranty, Policy

Collaborative Arrangement, Accounting Policy

New Accounting Pronouncements, Policy [Text Block]

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.

Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Schedule Of Finite-Lived Intangible Assets Estimated Useful Life Of Asset

The range of estimated useful lives is as follows:


			Years
Collaboration assets			30
Customer relationships and related programs			1 to 32
Developed technology			5 to 25
Patents & trademarks			4 to 40
Exclusivity assets			5 to 25

Schedule of Change in Accounting Estimate

Net EAC adjustments had the following impact on our operating results:


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions, except per share amounts)	2020		2019		2020		2019
Operating profit (loss)	$	(151)	$	(69)	$	(130)	$	(81)
Income (loss) from continuing operations attributable to common shareowners⁽¹⁾	(119)		(55)		(103)		(64)
Diluted earnings (loss) per share from continuing operations attributable to common shareholders ⁽¹⁾	$	(0.08)	$	(0.06)	$	(0.08)	$	(0.07)

(1) Amounts reflect a U.S. statutory tax rate of 21%, which approximates our effective tax rate on our EAC adjustments.

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

6 Months Ended

Jun. 30, 2020

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

Schedule of Goodwill [Table Text Block]

Changes in our goodwill balances for the six months ended June 30, 2020 were as follows:


(dollars in millions)	Balance as of January 1, 2020		Acquisitions and Divestitures		Impairment Losses		Foreign Currency Translation and Other		Balance as of June 30, 2020
Collins Aerospace Systems⁽¹⁾	$	35,025	$	(886)	$	(3,183)	$	(120)	$	30,836
Pratt & Whitney	1,563		—		—		—		1,563
Raytheon Intelligence & Space	—		8,422		—		2		8,424
Raytheon Missiles & Defense	—		11,067		—		—		11,067
Total Segments	36,588		18,603		(3,183)		(118)		51,890
Eliminations and other	21		1,380		—		(22)		1,379
Total	$	36,609	$	19,983	$	(3,183)	$	(140)	$	53,269

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

Identifiable intangible assets are comprised of the following:


	June 30, 2020						December 31, 2019
(dollars in millions)	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
Amortized:

Patents and trademarks	$	47	$	(34)	$	47	$	(34)
Collaboration assets	4,948		(997)		4,862		(920)
Exclusivity assets	2,425		(274)		2,386		(275)
Developed technology and other	1,685		(288)		890		(217)
Customer relationships	29,938		(4,134)		17,750		(3,392)
	$	39,043	$	(5,727)	$	25,935	$	(4,838)
Unamortized:
Trademarks and other	8,687		—		3,376		—
Total	$	47,730	$	(5,727)	$	29,311	$	(4,838)

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.


(dollars in millions)	Remaining 2020		2021		2022		2023		2024		2025
Amortization expense	$	1,230	$	2,523	$	1,989	$	2,101	$	2,166	$	2,030

Raytheon Company [Member]

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

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


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions, except per share amounts)	2020		2019		2020		2019
Net sales	$	14,470	$	18,416	$	32,921	$	36,038
Income (loss) from continuing operations attributable to common shareowners	(3,732)		2,006		(3,014)		3,308


Basic (loss) earnings per share of common stock from continuing operations	$	(2.49)	$	1.33	$	(2.08)	$	2.20


Diluted (loss) earnings per share of common stock from continuing operations	(2.49)		1.32		(2.07)		2.19

applicable tax impact. As the merger was completed on April 3, 2020, the pro-forma adjustments in the table below only include the required adjustments through April 3, 2020.


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2020		2019		2020		2019
Amortization of acquired Raytheon Company intangible assets, net ⁽¹⁾	$	—	$	(262)	$	(270)	$	(525)
Amortization of fixed asset fair value adjustment ⁽²⁾	—		(9)		(9)		(18)
Utilization of contractual customer obligation ⁽³⁾	—		15		8		29
Deferred revenue fair value adjustment ⁽⁴⁾	—		(8)		(4)		(17)
Adjustment to non-service pension (benefit) cost⁽⁵⁾	—		208		239		416
RTC/Raytheon fees for advisory, legal, accounting services⁽⁶⁾	61		45		96		(96)
Adjustment to interest expense related to debt distributions and Raytheon Merger, net⁽⁷⁾	—		9		9		18
Elimination of deferred commission amortization ⁽⁸⁾	—		7		5		10
	$	61	$	5	$	74	$	(183)

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

(3) Reflects the additional amortization of liabilities recognized for certain acquired loss making contracts as of the acquisition date.

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

(5) Represents the elimination of unamortized prior service costs and actuarial losses, as a result of fair value purchase accounting.

(7) Reflects the amortization of the fair market value adjustment related to Raytheon Company.

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

Schedule of Noncash or Part Noncash Acquisitions

Total consideration is calculated as follows:


(dollars, in millions, except per share amounts and exchange ratio)	Amount
Fair value of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards	$	33,067
Fair value attributable to pre-merger service for replacement equity awards	99
Total estimated merger consideration	$	33,166

The fair value of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards is calculated as follows:


(dollars and shares, in millions, except per share amounts and exchange ratio)	Amount
Number of Raytheon Company common shares outstanding as of April 3, 2020	277.3
Number of Raytheon Company stock awards vested as a result of the Raytheon Merger ⁽¹⁾	0.4
Total outstanding shares of Raytheon Company common stock and equity awards entitled to merger consideration	277.7
Exchange ratio ⁽²⁾	2.3348
Shares of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards	648.4
Price per share of RTC common stock ⁽³⁾	$	51.00
Fair value of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards	$	33,067

(2) The exchange ratio is equal to 2.3348 shares of UTC common stock for each share of Raytheon Company common stock in accordance with the Raytheon Merger Agreement.

(3) The price per share of RTC common stock is based on the RTC opening stock price as of April 3, 2020.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed


(dollars, in millions)
Cash and cash equivalents	$	3,208
Accounts receivable	1,997
Inventory	705
Contract assets	6,023
Other assets, current	897
Future income tax benefits	14
Fixed assets	4,732
Intangible assets:	19,130
Customer relationships	12,900
Tradenames/trademarks	5,430
Developed technology	800
Other assets	2,139
Total identifiable assets acquired	38,845

Accounts payable	1,455
Accrued liabilities	3,235
Contract liabilities	2,991
Long-term debt, including current portion	4,700
Future pension and postretirement benefit obligation	10,651
Other long-term liabilities	3,482
Total liabilities acquired	26,514
Total identifiable net assets	12,331
Goodwill	20,869
Redeemable noncontrolling interest	(34)
Total consideration transferred	$	33,166

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The intangible assets included above consist of the following:


(dollars, in millions)	Estimated Fair Value		Estimated Life
Acquired customer relationships	$	12,900	25 years
Acquired tradenames	5,430		Indefinite
Acquired developed technology	800		5 to 7 years
Total identifiable intangible assets	$	19,130

Discontinued Operations and Disposal Groups (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Schedule of income (loss) from discontinued operations


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars, in millions)	2020		2019		2020		2019
Otis	$	—	$	260	$	187	$	522
Carrier	—		544		196		916
Separation related transactions ⁽¹⁾	9		(87)		(895)		(87)
Income (loss) from discontinued operations ⁽²⁾	$	9	$	717	$	(512)	$	1,351

(2) Net income for Otis and Carrier for the quarter ended June 30, 2020 prior to the Separation Transactions were not material.


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars, in millions)	2020		2019		2020		2019
Otis
Net sales	$	—	$	3,348	$	2,966	$	6,444
Cost of products sold	—		1,224		913		2,286
Cost of services sold	—		1,150		1,157		2,284
Research and development	—		35		38		79
Selling, general and administrative expense	—		471		450		913
Other expense, net	—		(19)		(65)		(25)
Non-operating expense, net	—		4		3		8
Income from discontinued operations, before income taxes	—		445		340		849
Income tax expense	—		140		116		256
Income from discontinued operations	—		305		224		593
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations	—		45		37		71
Income from discontinued operations attributable to common shareowners	$	—	$	260	$	187	$	522
Carrier
Net sales	$	—	$	4,956	$	3,884	$	9,273
Cost of products sold	—		2,901		2,239		5,463
Cost of services sold	—		582		527		1,114
Research and development	—		103		98		200
Selling, general and administrative expense	—		735		669		1,420
Other income (expense), net	—		115		(30)		170
Non-operating (income) expense, net	—		(12)		17		(22)
Income from discontinued operations, before income taxes	—		762		304		1,268
Income tax expense	—		209		102		339
Income from discontinued operations	—		553		202		929
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations	—		9		6		13
Income from discontinued operations attributable to common shareowners	$	—	$	544	$	196	$	916
Separation related transactions ⁽¹⁾
Selling, general and administrative expense	$	13	$	—	167		$	—

Non-operating expense, net	43		—		709		—
Loss from discontinued operations, before income taxes	(56)		—		(876)		—
Income tax (benefit) expense	(65)		87		19		87
Income (loss) from discontinued operations, net of tax ⁽²⁾	9		(87)		(895)		(87)
Total Income (loss) from discontinued operations attributable to common shareowners	$	9	$	717	$	(512)	$	1,351

(2) Net income for Otis and Carrier for the quarter ended June 30, 2020 prior to the Separation Transactions were not material.

Schedule of cash flows from discontinued operations

Selected financial information related to cash flows from discontinued operations is as follows:


	Six Months Ended June 30,
(dollars, in millions)	2020		2019











Net cash (used in) provided by operating activities	$	(661)	$	841
Net cash used in investing activities	(241)		(114)
Net cash used in financing activities	(1,481)		(698)

Major components of assets and liabilities related to discontinued operations

The major components of assets and liabilities related to discontinued operations at December 31, 2019 are provided below:


(dollars, in millions)	Otis		Carrier		Total
Assets
Cash and cash equivalents	$	1,446	$	995	$	2,441
Accounts receivable, net	2,899		2,728		5,627
Contract assets, current	530		679		1,209
Inventories and contracts in progress, net	571		1,332		1,903
Other assets, current	213		221		434

Future income tax benefits	355		370		725
Fixed assets, net	747		1,686		2,433
Operating lease right-of-use assets	529		818		1,347
Goodwill	1,647		9,807		11,454
Intangible assets, net	490		1,083		1,573
Other assets	220		2,457		2,677
Total assets related to discontinued operations	$	9,647	$	22,176	$	31,823
Liabilities and Redeemable Noncontrolling Interest
Short-term borrowings	$	33	$	38	$	71
Accounts payable	1,321		1,682		3,003
Accrued liabilities	1,651		2,889		4,540
Contract liabilities, current	2,288		611		2,899
Long-term debt, currently due	1		237		238
Long-term debt	5		82		87
Future pension and postretirement benefit obligations	560		455		1,015
Operating lease liabilities	383		668		1,051

Other long-term liabilities ⁽¹⁾	514		1,025		1,539

Total liabilities related to discontinued operations	$	6,756	$	7,687	$	14,443

(1) Amounts include a deferred tax jurisdictional netting adjustment of $145 million.

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions, except per share amounts; shares in millions)	2020		2019		2020		2019
Net income (loss) attributable to common shareowners:
Income (loss) from continuing operations attributable to common shareowners	$	(3,844)	$	1,183	$	(3,406)	$	1,895
Income (loss) from discontinued operations	9		717		(512)		1,351
Net income (loss) attributable to common shareowners	$	(3,835)	$	1,900	$	(3,918)	$	3,246
Basic weighted average number of shares outstanding	1,501.3		854.4		1,225.4		853.8
Stock awards and equity units (share equivalent)	—		9.3		—		8.5
Diluted weighted average number of shares outstanding	1,501.3		863.7		1,225.4		862.3
Earnings (Loss) Per Share attributable to common shareowners - Basic:
Income (loss) from continuing operations attributable to common shareowners	$	(2.56)	$	1.38	$	(2.78)	$	2.22
Income (loss) from discontinued operations	0.01		0.84		(0.42)		1.58
Net income (loss) attributable to common shareowners	$	(2.55)	$	2.22	$	(3.20)	$	3.80
Earnings (Loss) Per Share attributable to common shareowners - Diluted:
Income (loss) from continuing operations attributable to common shareowners	$	(2.56)	$	1.37	$	(2.78)	$	2.20
Income (loss) from discontinued operations	0.01		0.83		(0.42)		1.56
Net income (loss) attributable to common shareowners	$	(2.55)	$	2.20	$	(3.20)	$	3.76

Receivables, Loans, Notes Receivable, and Others (Tables)

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Schedule of Receivables, Net

Accounts receivable, net consisted of the following:


(dollars in millions)	June 30, 2020		December 31, 2019
Accounts receivable	$	9,990	$	8,997
Allowance for expected credit losses	(494)		(254)
Total accounts receivable, net	$	9,496	$	8,743

Accounts Receivable, Allowance for Credit Loss

The changes in the allowance for expected credit losses related to Accounts receivable for the six months ended June 30, 2020 were as follows:


(dollars in millions)
Balance as of December 31, 2019	$	254
Current period provision for expected credit losses⁽¹⁾	225
Write-offs charged against the allowance for expected credit losses	(3)
Other⁽²⁾	18
Balance as of June 30, 2020	$	494

Revenue Recognition Contract Asset & Liability (Tables)

6 Months Ended

Jun. 30, 2020

Contract Asset and Liability [Abstract]

Contract with Customer, Asset and Liability [Table Text Block]

Total contract assets and contract liabilities as of June 30, 2020 and December 31, 2019 are as follows:


(dollars in millions)	June 30, 2020		December 31, 2019
Contract assets	$	9,943	$	4,462
Contract liabilities, current	(11,997)		(9,014)
Contract liabilities, non-current (included within Other long-term liabilities)	(111)		—
Net contract liabilities	$	(2,165)	$	(4,552)

Inventory (Tables)

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]


(dollars in millions)	June 30, 2020		December 31, 2019
Raw materials	$	3,375	$	2,984
Work-in-process	3,031		2,586
Finished goods	3,850		3,477
	$	10,256	$	9,047

Borrowings and Lines of Credit (Tables)

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Schedule of Short-Term Debt [Table Text Block]


(dollars in millions)	June 30, 2020		December 31, 2019
Commercial paper	$	160	$	—
Other borrowings	83		2,293
Total short-term borrowings	$	243	$	2,293

Schedule of Long-term Debt [Table Text Block]

Long-term debt consisted of the following:


(dollars in millions)	June 30, 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)	—		831
3.125% notes due 2020 ⁽²⁾	1,000		—
8.750% notes due 2021	250		250
3.100% notes due 2021	250		250
3.350% notes due 2021	—		1,000
LIBOR plus 0.650% floating rate notes due 2021	—		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	1,100		1,100


3.100% notes due 2022	—		2,300



2.500% notes due 2022 ⁽²⁾	1,100		—
1.250% notes due 2023 (€750 million principal value)	—		831

3.650% notes due 2023 ⁽¹⁾	171		2,250
3.700% notes due 2023	400		400
2.800% notes due 2024	—		800
3.200% notes due 2024	950		950
1.150% notes due 2024 (€750 million principal value)	—		831


3.150% notes due 2024 ⁽²⁾	300		—
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


3.125% notes due 2027 ⁽¹⁾	1,100		1,100
3.500% notes due 2027	1,300		1,300
7.200% notes due 2027 ⁽²⁾	382		—
7.100% notes due 2027	142		141
6.700% notes due 2028	400		400
7.000% notes due 2028 ⁽²⁾	185		—
4.125% notes due 2028 ⁽¹⁾	3,000		3,000
7.500% notes due 2029 ⁽¹⁾	550		550
2.150% notes due 2030 (€500 million principal value) ⁽¹⁾	561		554


2.250% notes due 2030 ⁽¹⁾	1,000		—
5.400% notes due 2035 ⁽¹⁾	600		600
6.050% notes due 2036 ⁽¹⁾	600		600
6.800% notes due 2036 ⁽¹⁾	134		134
7.000% notes due 2038	159		159
6.125% notes due 2038 ⁽¹⁾	1,000		1,000
4.450% notes due 2038 ⁽¹⁾	750		750


5.700% notes due 2040 ⁽¹⁾	1,000		1,000
4.875% notes due 2040 ⁽²⁾	600		—
4.700% notes due 2041 ⁽²⁾	425		—
4.500% notes due 2042 ⁽¹⁾	3,500		3,500
4.800% notes due 2043	400		400
4.200% notes due 2044 ⁽²⁾	300		—
4.150% notes due 2045 ⁽¹⁾	850		850
3.750% notes due 2046 ⁽¹⁾	1,100		1,100
4.050% notes due 2047 ⁽¹⁾	600		600
4.350% notes due 2047	1,000		1,000
4.625% notes due 2048 ⁽¹⁾	1,750		1,750


3.125% notes due 2050 ⁽¹⁾	1,000		—
Other (including finance leases)	325		315
Total principal long-term debt	32,453		41,274
Other (fair market value adjustments, (discounts)/premiums, and debt issuance costs)	54		(315)
Total long-term debt	32,507		40,959
Less: current portion	1,297		3,258
Long-term debt, net of current portion	$	31,210	$	37,701

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

(2) Debt assumed in the Raytheon Merger.

Schedule of Weighted average interest rates [Table Text Block]

The average interest expense rate on our total borrowings for the quarters ended June 30, 2020 and 2019 was as follows:


	Quarter Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Average interest expense rate	3.8	%	3.6	%	3.8	%	3.6	%

Schedule of Long Term Debt Repayments

We had the following repayments of long-term debt during the six months ended June 30, 2020:


(dollars in millions)
Repayment Date	Description of Notes	Aggregate Principal Balance
May 19, 2020	3.650% notes due 2023 ⁽¹⁾⁽²⁾	$	410
May 15, 2020	EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value)⁽²⁾	817
March 29, 2020	4.500% notes due 2020 ⁽¹⁾⁽²⁾	1,250
	1.125% notes due 2021 (€950 million principal value) ⁽¹⁾⁽²⁾	1,082
	1.250% notes due 2023 (€750 million principal value) ⁽¹⁾⁽²⁾	836
	1.150% notes due 2024 (€750 million principal value) ⁽¹⁾⁽²⁾	841
	1.875% notes due 2026 (€500 million principal value) ⁽¹⁾⁽²⁾	567
March 3, 2020	1.900% notes due 2020 ⁽¹⁾⁽²⁾	1,000
	3.350% notes due 2021 ⁽¹⁾⁽²⁾	1,000
	LIBOR plus 0.650% floating rate notes due 2021 ⁽¹⁾⁽²⁾	750
	1.950% notes due 2021 ⁽¹⁾⁽²⁾	750
	2.300% notes due 2022 ⁽¹⁾⁽²⁾	500
	3.100% notes due 2022 ⁽¹⁾⁽²⁾	2,300
	2.800% notes due 2024 ⁽¹⁾⁽²⁾	800
March 2, 2020	4.875% notes due 2020 ⁽¹⁾⁽²⁾	171
February 28, 2020	3.650% notes due 2023 ⁽¹⁾⁽²⁾	1,669
	2.650% notes due 2026 ⁽¹⁾⁽²⁾	431
				$	15,174

Schedule of Long Term Debt Issuances

We had the following issuances of long-term debt during the six months ended June 30, 2020, which is inclusive of issuances made by Otis and Carrier which were primarily used by the Company to extinguish Raytheon Technologies short-term and long-term debt, and therefore were treated as a distribution from discontinued operations within financing activities from continuing operation on our Condensed Consolidated Statement of Cash Flows:


(dollars in millions)
Issuance Date	Description of Notes	Aggregate Principal Balance
May 18, 2020	2.250% notes due 2030	$	1,000
	3.125% notes due 2050	1,000
March 27, 2020	Term Loan due 2023 (Otis)⁽¹⁾	1,000
	Term Loan due 2023 (Carrier)⁽¹⁾	1,750
February 27, 2020	1.923% notes due 2023 ⁽¹⁾	500
	LIBOR plus 0.450% floating rate notes due 2023 ⁽¹⁾	500
	2.056% notes due 2025 ⁽¹⁾	1,300
	2.242% notes due 2025⁽¹⁾	2,000
	2.293% notes due 2027⁽¹⁾	500
	2.493% notes due 2027⁽¹⁾	1,250
	2.565% notes due 2030⁽¹⁾	1,500
	2.722% notes due 2030⁽¹⁾	2,000
	3.112% notes due 2040 ⁽¹⁾	750
	3.377% notes due 2040 ⁽¹⁾	1,500
	3.362% notes due 2050 ⁽¹⁾	750
	3.577% notes due 2050 ⁽¹⁾	2,000
				$	19,300

(1) The debt issuances and term loan draws reflect debt incurred by Otis and Carrier. The net proceeds of these issuances were primarily utilized to extinguish Raytheon Technologies short-term and long-term debt in order to not exceed the maximum applicable net indebtedness required by the Raytheon Merger Agreement.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Schedule of contributions to plans

Contributions to our plans were as follows:


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2020		2019		2020		2019
US qualified and international defined benefit plans	$	34	$	33	$	42	$	37
Defined contribution plans	227		117		440		252

Schedule of Amounts Recognized in Balance Sheet

Future pension and postretirement benefit obligations on the Condensed Consolidated Balance Sheet consisted of the following:


(dollars in millions)	June 30, 2020		December 31, 2019
Long-term pension liabilities	$	13,774	$	1,770
Long-term PRB liabilities	1,069		696
Other pension and PRB related items	129		21
Total long-term pension and PRB liabilities⁽¹⁾	$	14,972	$	2,487

(1) Increase in long-term pension and PRB liabilities is primarily due to the Raytheon Merger and the remeasurement of the UTC legacy plans.

Schedule of Net Benefit Costs

The following table illustrates the components of net periodic benefit (income) cost for our defined pension and PRB plans:


	Pension Benefits Quarter Ended June 30,						Other Postretirement Benefits Quarter Ended June 30,
(dollars in millions)	2020		2019		2020		2019
Operating expense
Service cost	$	142	$	74	$	2	$	1
Non-operating expense
Interest cost	452		321		10		8
Expected return on plan assets	(814)		(568)		(4)		—
Amortization of prior service cost (credit)	13		4		(1)		(11)
Recognized actuarial net loss (gain)	83		49		(3)		(3)
Net settlement and curtailment loss	27		—		—		—
Non-service pension (income) cost	(239)		(194)		2		(6)
Total net periodic benefit (income) cost	$	(97)	$	(120)	$	4	$	(5)


	Pension Benefits Six Months Ended June 30,						Other Postretirement Benefits Six Months Ended June 30,
(dollars in millions)	2020		2019		2020		2019
Operating expense
Service cost	$	179	$	146	$	3	$	2
Non-operating expense
Interest cost	705		642		16		16
Expected return on plan assets	(1,335)		(1,136)		(5)		(1)
Amortization of prior service cost (credit)	26		9		(2)		(22)
Recognized actuarial net loss (gain)	169		98		(6)		(6)
Net settlement and curtailment loss	27		8		—		—
Non-service pension (income) cost	(408)		(379)		3		(13)
Total net periodic benefit (income) cost	$	(229)	$	(233)	$	6	$	(11)

Marketable Securities

The fair value of marketable securities held in trusts consisted of the following:


(dollars in millions)	June 30, 2020		December 31, 2019
Marketable securities held in trusts	$	758	$	—

Restructuring and Other Costs (Tables)

6 Months Ended

Jun. 30, 2020

YTD Current and Prior Year Actions [Member]

Restructuring Cost and Reserve [Line Items]

Schedule of Restructuring and Related Costs [Table Text Block]

We recorded charges in the segments as follows:


(dollars in millions)	Quarter Ended June 30, 2020		Six Months Ended June 30, 2020
Pratt & Whitney	$	107	$	107
Collins Aerospace Systems	151		157
Corporate expenses and other unallocated items	169		171

Total	$	427	$	435

Restructuring charges incurred during the quarter and six months ended June 30, 2020 primarily relate to actions initiated during 2020 and 2019, and were recorded as follows:


(dollars in millions)	Quarter Ended June 30, 2020		Six Months Ended June 30, 2020
Cost of sales	$	183	$	188
Selling, general and administrative	244		247



Total	$	427	$	435

Current Year Actions [Member]

Restructuring Cost and Reserve [Line Items]

Schedule of Restructuring and Related Costs [Table Text Block]

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


(dollars in millions)	Expected Costs		Costs Incurred Quarter Ended March 31, 2020		Costs Incurred Quarter Ended June 30, 2020		Remaining Costs at June 30, 2020
Pratt & Whitney	$	131	$	—	$	(130)	$	1
Collins Aerospace Systems	184		(1)		(146)		37
Corporate expenses and other unallocated items	169		(1)		(168)		—

Total	$	484	$	(2)	$	(444)	$	38

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

The following table summarizes the accrual balance and utilization for the 2020 restructuring actions for the quarter and six months ended June 30, 2020:


(dollars in millions)	Severance		Facility Exit and Other Costs		Total
Quarter Ended June 30, 2020
Restructuring accruals at March 31, 2020	$	2	$	—	$	2
Net pre-tax restructuring costs	443		1		444
Utilization, foreign exchange and other costs	(50)		(1)		(51)
Balance at June 30, 2020	$	395	$	—	$	395

Six Months Ended June 30, 2020
Restructuring accruals at December 31, 2019	$	—	$	—	$	—
Net pre-tax restructuring costs	445		1		446
Utilization, foreign exchange and other costs	(50)		(1)		(51)
Balance at June 30, 2020	$	395	$	—	$	395

Prior Year Actions [Member]

Restructuring Cost and Reserve [Line Items]

Schedule of Restructuring and Related Costs [Table Text Block]

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


(dollars in millions)	Expected Costs		Costs Incurred in 2019		Costs Incurred Quarter Ended March 31, 2020		Costs Incurred Quarter Ended June 30, 2020		Remaining Costs at June 30, 2020
Pratt & Whitney	$	121	$	(133)	$	—	$	12	$	—
Collins Aerospace Systems	112		(27)		(5)		(3)		77
Corporate expenses and other unallocated items	2		(2)		—		—		—

Total	$	235	$	(162)	$	(5)	$	9	$	77

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

The following table summarizes the accrual balances and utilization for the 2019 restructuring actions for the quarter and six months ended June 30, 2020:


(dollars in millions)	Severance		Facility Exit, and Other Costs		Total
Quarter Ended June 30, 2020
Restructuring accruals at March 31, 2020	$	36	$	10	$	46
Net pre-tax restructuring costs	(9)		—		(9)
Utilization, foreign exchange and other costs	(10)		—		(10)
Balance at June 30, 2020	$	17	$	10	$	27

Six Months Ended June 30, 2020
Restructuring accruals at December 31, 2019	$	47	$	11	$	58
Net pre-tax restructuring costs	(6)		2		(4)
Utilization, foreign exchange and other costs	(24)		(3)		(27)
Balance at June 30, 2020	$	17	$	10	$	27

Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments, Gain (Loss) [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheets for derivative instruments as of June 30, 2020 and December 31, 2019:


(dollars in millions)	Balance Sheet Location	June 30, 2020		December 31, 2019
Derivatives designated as hedging instruments:

Foreign exchange contracts	Other assets, current	$	30	$	23



	Accrued liabilities	(334)		(166)


Derivatives not designated as hedging instruments:

Foreign exchange contracts	Other assets, current	$	19	$	23



	Accrued liabilities	(47)		(116)

Reclassification out of Accumulated Other Comprehensive Income [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Derivative Instruments, Gain (Loss) [Table Text Block]


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2020		2019		2020		2019
(Loss) gain recorded in Accumulated other comprehensive loss	$	188	$	21	$	(215)	$	28
Loss reclassified from Accumulated other comprehensive loss into Product sales	27		16		56		20

Other Income [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Derivative Instruments, Gain (Loss) [Table Text Block]

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


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in millions)	2020		2019		2020		2019
Foreign exchange contracts	$	10	$	27	$	(29)	$	60

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]


	June 30, 2020
(dollars in millions)	Total		Level 1		Level 2		Level 3
Recurring fair value measurements:

Marketable securities held in trusts	$	758	$	758	$	—	$	—
Derivative assets	49		—		49		—
Derivative liabilities	(381)		—		(381)		—


	December 31, 2019
(dollars in millions)	Total		Level 1		Level 2		Level 3
Recurring fair value measurements:
Available-for-sale securities	$	53	$	53	$	—	$	—
Derivative assets	46		—		46		—
Derivative liabilities	(282)		—		(282)		—

Fair Value, by Balance Sheet Grouping [Table Text Block]


	June 30, 2020						December 31, 2019
(dollars in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value

Customer financing notes receivable	$	281	$	276	$	220	$	220
Short-term borrowings	(243)		(243)		(2,293)		(2,293)
Long-term debt (excluding finance leases)	(32,442)		(37,165)		(40,883)		(45,887)
Long-term liabilities	(48)		(46)		(334)		(320)


	June 30, 2020
(dollars in millions)	Total		Level 1		Level 2		Level 3

Customer financing notes receivable	$	276	$	—	$	276	$	—
Short-term borrowings	(243)		—		(160)		(83)
Long-term debt (excluding finance leases)	(37,165)		—		(28,842)		(8,323)
Long-term liabilities	(46)		—		(46)		—


	December 31, 2019
(dollars in millions)	Total		Level 1		Level 2		Level 3

Customer financing notes receivable	$	220	$	—	$	220	$	—
Short-term borrowings	(2,293)		—		—		(2,293)
Long-term debt (excluding finance leases)	(45,887)		—		(45,802)		(85)
Long-term liabilities	(320)		—		(320)		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2020

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

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

A summary of the changes in each component of Accumulated other comprehensive loss, net of tax for the quarters and six months ended June 30, 2020 and 2019 is provided below:


(dollars in millions)	Foreign Currency Translation		Pension and Post-retirement Plans		Unrealized Hedging (Losses) Gains		Accumulated Other Comprehensive Income (Loss)
Quarter Ended June 30, 2020
Balance at March 31, 2020	$	(4,647)	$	(6,693)	$	(448)	$	(11,788)
Other comprehensive income (loss) before reclassifications, net	665		(2,371)		188		(1,518)
Amounts reclassified, pre-tax	—		85		27		112
Tax benefit (expense)	3		568		(52)		519

Separation of Otis and Carrier, net of tax	3,287		584		4		3,875
Balance at June 30, 2020	$	(692)	$	(7,827)	$	(281)	$	(8,800)

Six Months Ended June 30, 2020
Balance at December 31, 2019	$	(3,211)	$	(6,772)	$	(166)	$	(10,149)
Other comprehensive income (loss) before reclassifications, net	(780)		(2,363)		(215)		(3,358)
Amounts reclassified, pre-tax	—		187		56		243
Tax benefit (expense)	12		537		40		589

Separation of Otis and Carrier, net of tax	3,287		584		4		3,875
Balance at June 30, 2020	$	(692)	$	(7,827)	$	(281)	$	(8,800)


(dollars in millions)	Foreign Currency Translation		Pension and Post-retirement Plans		Unrealized Hedging (Losses) Gains		Accumulated Other Comprehensive Income (Loss)
Quarter Ended June 30, 2019
Balance at March 31, 2019	$	(2,932)	$	(6,422)	$	(165)	$	(9,519)
Other comprehensive income (loss) before reclassifications, net	(435)		(13)		21		(427)
Amounts reclassified, pre-tax	(1)		43		16		58
Tax expense (benefit)	14		(6)		(12)		(4)

Balance at June 30, 2019	$	(3,354)	$	(6,398)	$	(140)	$	(9,892)

Six Months Ended June 30, 2019
Balance at December 31, 2018	$	(3,442)	$	(5,718)	$	(173)	$	(9,333)
Other comprehensive income (loss) before reclassifications, net	95		(14)		28		109
Amounts reclassified, pre-tax	—		87		20		107
Tax expense (benefit)	1		(16)		(15)		(30)
ASU 2018-02 adoption impact	(8)		(737)		—		(745)
Balance at June 30, 2019	$	(3,354)	$	(6,398)	$	(140)	$	(9,892)

Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities

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


(dollars in millions)	June 30, 2020		December 31, 2019
Current assets	$	6,097	$	5,448
Noncurrent assets	908		894
Total assets	$	7,005	$	6,342
Current liabilities	$	6,904	$	6,971
Noncurrent liabilities	109		94
Total liabilities	$	7,013	$	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

Guarantees (Tables)

6 Months Ended

Jun. 30, 2020

Service and Product Warranties and Product Performance Guarantees [Abstract]

Schedule of guarantees

As of June 30, 2020 and December 31, 2019, the following guarantees related to continuing operations were outstanding:


(dollars in millions)	June 30, 2020						December 31, 2019
	Maximum Potential Payment		Carrying Amount of Liability		Maximum Potential Payment		Carrying Amount of Liability
Commercial aerospace financing arrangements	$	333	$	8	$	333	$	7
Third party guarantees⁽¹⁾	365		4		48		—

(1) Increase in guarantees is primarily due to the Raytheon Merger.

Product Warranty Disclosure [Table Text Block]

The changes in the carrying amount of service and product warranties and product performance guarantees for the six months ended June 30, 2020 and 2019 are as follows:


(dollars in millions)	2020		2019
Balance as of January 1	$	1,033	$	929
Warranties and performance guarantees issued	149		212
Settlements	(154)		(155)
Other	(20)		9
Balance as of June 30	$	1,008	$	995

Segment Financial Data (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Revised historical segment sales and operating profit

Recast segment sales and operating profit, reflecting the performance measurement changes described above, were as follows:


Total Net Sales	Quarter Ended													Twelve Months Ended
(dollars in millions)	March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019			December 31, 2019
Collins Aerospace Systems	$	6,438	$	6,444	$	6,495	$	6,576	$	6,513		$	26,028
Pratt & Whitney	5,353		5,645		5,285		5,154		4,818			$	20,902
Raytheon Intelligence & Space	—		—		—		—		—		—	—
Raytheon Missiles & Defense	—		—		—		—		—		—	—
Total segment	11,791		12,089		11,780		11,730		11,331			$	46,930
Eliminations and other	(431)		(395)		(407)		(401)		(378)			(1,581)
Consolidated	$	11,360	$	11,694	$	11,373	$	11,329	$	10,953		$	45,349


Operating Profit	Quarter Ended													Twelve Months Ended
(dollars in millions)	March 31, 2020		December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019			December 31, 2019
Collins Aerospace Systems	$	1,246	$	1,009	$	1,259	$	1,276	$	964		$	4,508
Pratt & Whitney	475		354		520		449		478			1,801
Raytheon Intelligence & Space	—		—		—		—		—		—	—
Raytheon Missiles & Defense	—		—		—		—		—		—	—
Total segment	1,721		1,363		1,779		1,725		1,442			6,309
Eliminations and other	(25)		(25)		(46)		(42)		(27)			(140)
Corporate expenses and other unallocated items	(130)		(151)		(83)		(87)		(46)			(367)
FAS/CAS operating adjustment	—		—		—		—		—			—
Acquisition accounting adjustments	(271)		(231)		(220)		(210)		(227)			$	(888)
Consolidated	$	1,295	$	956	$	1,430	$	1,386	$	1,142		$	4,914

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Results for the quarters ended June 30, 2020 and 2019 are as follows:


	Net Sales						Operating Profits						Operating Profit Margins
(dollars in millions)	2020		2019		2020		2019		2020		2019
Collins Aerospace Systems	$	4,202	$	6,576	$	(317)	$	1,276	(7.5)	%	19.4	%
Pratt & Whitney	3,487		5,154		(457)		449		(13.1)	%	8.7	%
Raytheon Intelligence & Space	3,314		—		311		—		9.4	%	—	%
Raytheon Missiles & Defense	3,590		—		397		—		11.1	%	—	%
Total segment	14,593		11,730		(66)		1,725		(0.5)	%	14.7	%
Eliminations and other⁽¹⁾	(532)		(401)		(28)		(42)
Corporate expenses and other unallocated items ⁽²⁾	—		—		(277)		(87)
FAS/CAS operating adjustment	—		—		356		—
Acquisition accounting adjustments	—		—		(3,745)		(210)
Consolidated	$	14,061	$	11,329	$	(3,760)	$	1,386	(26.7)	%	12.2	%

(1) Includes the operating results of certain smaller non-reportable business segments, including Forcepoint, LLC, which was acquired as part of the Raytheon Merger.

Results for the six months ended June 30, 2020 and 2019 are as follows:


	Net Sales						Operating Profits						Operating Profit Margins
(dollars in millions)	2020		2019		2020		2019		2020		2019
Collins Aerospace Systems	$	10,640	$	13,089	$	929	$	2,240	8.7	%	17.1	%
Pratt & Whitney	8,840		9,972		18		927		0.2	%	9.3	%
Raytheon Intelligence & Space	3,314		—		311		—		9.4	%	—	%
Raytheon Missiles & Defense	3,590		—		397		—		11.1	%	—	%
Total segment	26,384		23,061		1,655		3,167		6.3	%	13.7	%
Eliminations and other ⁽¹⁾	(963)		(779)		(53)		(69)
Corporate expenses and other unallocated items ⁽²⁾	—		—		(407)		(133)
FAS/CAS operating adjustment	—		—		356		—
Acquisition accounting adjustments	—		—		(4,016)		(437)
Consolidated	$	25,421	$	22,282	$	(2,465)	$	2,528	(9.7)	%	11.3	%

(1) Includes the operating results of certain smaller non-reportable business segments, including Forcepoint, LLC, which was acquired as part of the Raytheon Merger.

Reconciliation of Assets from Segment to Consolidated

Total assets by segment are as follows:


	Total Assets
(dollars in millions)	June 30, 2020		December 31, 2019
Collins Aerospace Systems⁽¹⁾	$	70,791	$	74,049
Pratt & Whitney⁽¹⁾	31,749		31,170
Raytheon Intelligence & Space⁽¹⁾	20,137		—
Raytheon Missiles & Defense⁽¹⁾	29,681		—
Total segment	152,358		105,219
Corporate and other	9,024		2,573
Assets related to discontinued operations	135		31,823
Consolidated	$	161,517	$	139,615

(1) Total assets include acquired intangible assets and property, plant and equipment fair value adjustment. Related amortization expense is included in Acquisition accounting adjustments.

Disaggregation of Revenue

Segment sales disaggregated by geographic region for the quarters ended June 30, 2020 and 2019 are as follows:


	2020																						2019
(dollars in millions)	Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total		Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total
United States	$	2,505	$	1,892	$	2,565	$	2,150	$	49	$	9,161	$	3,233	$	2,076	$	—	$	—	$	2	$	5,311
Asia Pacific	388		787		195		351		13		1,734		606		1,277		—		—		—		1,883
Middle East and North Africa	99		122		122		720		8		1,071		184		198		—		—		—		382
Europe	787		512		102		291		66		1,758		1,795		1,181		—		—		—		2,976
Canada and All Other	114		177		24		14		8		337		356		421		—		—		—		777
Consolidated net sales	3,893		3,490		3,008		3,526		144		14,061		6,174		5,153		—		—		2		11,329
Inter-segment sales	309		(3)		306		64		(676)		—		402		1		—		—		(403)		—
Business segment sales	$	4,202	$	3,487	$	3,314	$	3,590	$	(532)	$	14,061	$	6,576	$	5,154	$	—	$	—	$	(401)	$	11,329

Segment sales disaggregated by geographic region for the six months ended June 30, 2020 and 2019 are as follows:


	2020																						2019
(dollars in millions)	Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total		Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total
United States	$	5,649	$	4,247	$	2,565	$	2,150	$	47	$	14,658	$	6,321	$	4,093	$	—	$	—	$	6	$	10,420
Asia Pacific	992		2,208		195		351		13		3,759		1,178		2,478		—		—		—		3,656
Middle East and North Africa	242		294		122		720		8		1,386		368		396		—		—		—		764
Europe	2,532		1,529		102		291		66		4,520		3,679		2,173		—		—				5,852
Canada and All Other	486		559		24		14		15		1,098		756		834		—		—		—		1,590
Consolidated net sales	9,901		8,837		3,008		3,526		149		25,421		12,302		9,974		—		—		6		22,282
Inter-segment sales	739		3		306		64		(1,112)		—		787		(2)		—		—		(785)		—
Business segment sales	$	10,640	$	8,840	$	3,314	$	3,590	$	(963)	$	25,421	$	13,089	$	9,972	$	—	$	—	$	(779)	$	22,282

Segment sales disaggregated by customer for the quarters ended June 30, 2020 and 2019 are as follows:


	2020																						2019
(dollars in millions)	Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total		Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total
U.S. government⁽¹⁾	$	1,353	$	1,283	$	2,497	$	2,141	$	54	$	7,328	$	1,286	$	1,148	$	—	$	—	$	—	$	2,434
Foreign military sales through the U.S. government	77		281		202		782		—		1,342		75		315		—		—		—		390
Foreign government direct commercial sales	204		122		209		569		—		1,104		248		134		—		—		—		382
Commercial aerospace and other commercial	2,259		1,804		100		34		90		4,287		4,565		3,556		—		—		2		8,123
Consolidated net sales	3,893		3,490		3,008		3,526		144		14,061		6,174		5,153		—		—		2		11,329
Inter-segment sales	309		(3)		306		64		(676)		—		402		1		—		—		(403)		—
Business segment sales	$	4,202	$	3,487	$	3,314	$	3,590	$	(532)	$	14,061	$	6,576	$	5,154	$	—	$	—	$	(401)	$	11,329

(1) Excludes foreign military sales through the U.S. government.

Segment sales disaggregated by customer for the six months ended June 30, 2020 and 2019 are as follows:


	2020																						2019
(dollars in millions)	Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total		Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total
U.S. government⁽¹⁾	$	2,642	$	2,522	$	2,497	$	2,141	$	54	$	9,856	$	2,312	$	2,152	$	—	$	—	$	—	$	4,464
Foreign military sales through the U.S. government	132		552		202		782		—		1,668		126		566		—		—		—		692
Foreign government direct commercial sales	429		260		209		569		—		1,467		483		284		—		—		—		767
Commercial aerospace and other commercial	6,698		5,503		100		34		95		12,430		9,381		6,972		—		—		6		16,359
Consolidated net sales	9,901		8,837		3,008		3,526		149		25,421		12,302		9,974		—		—		6		22,282
Inter-segment sales	739		3		306		64		(1,112)		—		787		(2)		—		—		(785)		—
Business segment sales	$	10,640	$	8,840	$	3,314	$	3,590	$	(963)	$	25,421	$	13,089	$	9,972	$	—	$	—	$	(779)	$	22,282

(1) Excludes foreign military sales through the U.S. government.

Segment sales disaggregated by sales type for the quarters ended June 30, 2020 and 2019 are as follows:


	2020																						2019
(dollars in millions)	Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total		Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total
Product	$	3,190	$	1,888	$	2,333	$	3,232	$	125	$	10,768	$	5,076	$	3,310	$	—	$	—	$	2	$	8,388
Service	703		1,602		675		294		19		3,293		1,098		1,843		—		—		—		2,941
Consolidated net sales	$	3,893	$	3,490	$	3,008	$	3,526	$	144	$	14,061	$	6,174	$	5,153	$	—	$	—	$	2	$	11,329
Inter-segment sales	309		(3)		306		64		(676)		—		402		1		—		—		(403)		—
Business segment sales	$	4,202	$	3,487	$	3,314	$	3,590	$	(532)	$	14,061	$	6,576	$	5,154	$	—	$	—	$	(401)	$	11,329

Segment sales disaggregated by sales type for the six months ended June 30, 2020 and 2019 are as follows:


	2020																						2019
(dollars in millions)	Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total		Collins Aerospace Systems		Pratt & Whitney		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Other		Total
Product	$	8,094	$	5,143	$	2,333	$	3,232	$	130	$	18,932	$	10,132	$	6,286	$	—	$	—	$	6	$	16,424
Service	1,807		3,694		675		294		19		6,489		2,170		3,688		—		—		—		5,858
Consolidated net sales	$	9,901	$	8,837	$	3,008	$	3,526	$	149	$	25,421	$	12,302	$	9,974	$	—	$	—	$	6	$	22,282
Inter-segment sales	739		3		306		64		(1,112)		—		787		(2)		—		—		(785)		—
Business segment sales	$	10,640	$	8,840	$	3,314	$	3,590	$	(963)	$	25,421	$	13,089	$	9,972	$	—	$	—	$	(779)	$	22,282

RIS and RMD segment sales disaggregated by contract type for the quarter and six months ended June 30, 2020 are as follows:


	Quarter Ended June 30, 2020										Six Months Ended June 30, 2020
(dollars in millions)	Raytheon Intelligence & Space		Raytheon Missiles & Defense		Total		Raytheon Intelligence & Space		Raytheon Missiles & Defense		Total
Fixed-price	$	1,203	$	2,178	$	3,381	$	1,203	$	2,178	$	3,381
Cost-type	1,805		1,348		3,153		1,805		1,348		3,153

Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended						6 Months Ended		12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Accounting Policies [Abstract]
Net pre-tax restructuring costs	$ 427						$ 435
Goodwill impairment	(3,183)				$ 0		(3,183)	$ 0
Allowance for expected credit losses	237						309
Reduction in expected future revenues on commercial aftermarket contracts	179						190
Expected charge due to change in contract estimates	44						44
Contract with Customer, Performance Obligation Satisfied in Previous Period	(218)				(90)		(201)	(115)
Capitalized Contract Cost, Gross	1,808		$ 1,519				1,808		$ 1,519
Revenue, Remaining Performance Obligation, Amount	$ 158,700						$ 158,700
Revenue, Remaining Performance Obligations, to be recognized within 24 months	30.00%						30.00%
Collaborators Interests Existing Programs Low End	1300.00%						1300.00%
Collaborators Interests Existing Programs High End	4900.00%						4900.00%
Partner share individual program maximum	3100.00%						3100.00%
Change in Accounting Estimate [Line Items]
Operating Income (Loss)	$ (3,760)	$ 1,295	956	$ 1,430	1,386	$ 1,142	$ (2,465)	2,528	4,914
Income (loss) from continuing operations attributable to common shareowners	$ (3,844)				$ 1,183		$ (3,406)	$ 1,895
Income (loss) from continuing operations attributable to common shareowners	$ (2.56)				$ 1.37		$ (2.78)	$ 2.20
ASU 2016-13 [Member]
Change in Accounting Estimate [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification							$ 59
Collins Aerospace Systems [Member]
Accounting Policies [Abstract]
Net pre-tax restructuring costs	$ 151						157
Goodwill impairment							(3,183)
Change in Accounting Estimate [Line Items]
Operating Income (Loss)	(317)	$ 1,246	$ 1,009	$ 1,259	$ 1,276	$ 964	929	$ 2,240	$ 4,508
Trade Names [Member] \| Collins Aerospace Systems [Member]
Change in Accounting Estimate [Line Items]
Impairment of Intangible Asset, Tradename	17						$ 57
Minimum [Member]
Change in Accounting Estimate [Line Items]
Operating Cycle							one year
Contracts Accounted for under Percentage of Completion [Member]
Change in Accounting Estimate [Line Items]
Operating Income (Loss)	(151)				(69)		$ (130)	(81)
Income (loss) from continuing operations attributable to common shareowners	$ (119)				$ (55)		$ (103)	$ (64)
Income (loss) from continuing operations attributable to common shareowners	$ (0.08)				$ (0.06)		$ (0.08)	$ (0.07)

Accounting Policies (Schedule of Finite-Lived Intangible Assets Estimate of Useful Life) (Details)		6 Months Ended
	Apr. 03, 2020	Jun. 30, 2020
Collaboration Asset [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		30 years
Customer relationships and other [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	25 years
Customer relationships and other [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		32 years
Customer relationships and other [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		1 year
Exclusivity assets \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		25 years
Exclusivity assets \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		5 years
Developed Technology Rights \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		25 years
Developed Technology Rights \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		5 years
Patents and trademarks [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		40 years
Patents and trademarks [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		4 years

Acquisitions, Dispositions, Goodwill and Other Intangible Assets (General Information) (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended
	Apr. 03, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill Resulting from Business Combinations				$ 19,983
Fair value of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards	$ 33,067
Fair value attributable to pre-merger service for replacement equity awards	99
Total estimated merger consideration	33,166
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	3,208
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	1,997
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	705
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contract Assets	6,023
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	897
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets	14
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	4,732
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	19,130
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	2,139
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	38,845
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	1,455
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accrued Liabilities	3,235
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Contract Liabilities	2,991
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	4,700
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Pension and Postretirement Liabilities	10,651
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	3,482
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	26,514
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	12,331
Goodwill	20,869	$ 53,269		53,269		$ 36,609
Business Combination, Acquisition of Noncontrolling Interest, Fair Value	(34)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	33,166
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Loss Contracts	$ 218
Proceeds from Divestiture of Businesses and Interests in Affiliates				234	$ 133
Gain on disposal recorded as an adjustment to fair value of net asset acquired				210
Assets		161,517		161,517		139,615
Liabilities		92,590		92,590		$ 95,289
Disposal Group, Held-for-sale, Not Discontinued Operations [Member]
Business Acquisition [Line Items]
Assets		1,814		1,814
Liabilities		90		90
Goodwill and intangible assets		1,600		$ 1,600
Carrier [Member]
Business Acquisition [Line Items]
Shares of common stock distributed in the Distribution	866,158,910
Otis [Member]
Business Acquisition [Line Items]
Shares of common stock distributed in the Distribution	433,079,455
Customer Relationships [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 12,900
Finite-Lived Intangible Asset, Useful Life	25 years
Customer Relationships [Member] \| Maximum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life				32 years
Customer Relationships [Member] \| Minimum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life				1 year
Trademarks
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 5,430
Developed Technology Rights
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 800
Developed Technology Rights \| Maximum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life				25 years
Developed Technology Rights \| Minimum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life				5 years
Raytheon Company [Member]
Business Acquisition [Line Items]
Business Acquisition UTC stock payable shares	2.3348
Pro Forma Nonrecurring Adjustment, Amortization of acquired Rockwell Collins intangible assets, net		0	$ (262)	$ (270)	(525)
Pro Forma Nonrecurring Adjustment, Amortization of inventory and fixed asset fair value adjustment		0	(9)	(9)	(18)
Pro Forma Nonrecurring Adjustment, Utilization of contractual customer obligation		0	15	8	29
Pro Forma Nonrecurring Adjustment, Adjustment to net periodic pension cost		0	208	239	416
Pro Forma Nonrecurring Adjustment, Deferred revenue fair value adjustment		0	(8)	(4)	(17)
Pro Forma Nonrecurring Adjustment, RTC/Raytheon fees for advisory, legal, accounting services		61	45	96	(96)
Pro Forma Nonrecurring Adjustment, Interest expense related to debt distributions and Raytheon Merger, net		0	9	9	18
Pro Forma Nonrecurring Adjustment, Elimination of deferred commission amortization		0	7	5	10
Pro Forma Nonrecurring Adjustments, Net		61	5	74	(183)
Business Acquisition, Pro Forma Net Income (Loss)		(3,732)	2,006	(3,014)	3,308
Business Acquisition, Pro Forma Revenue		$ 14,470	$ 18,416	$ 32,921	$ 36,038
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax, Per Share, Basic		$ (2.49)	$ 1.33	$ (2.08)	$ 2.20
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax, Per Share, Diluted		$ (2.49)	$ 1.32	$ (2.07)	$ 2.19
Business Combination, Acquisition Related Costs		$ 70		$ 99
Goodwill Resulting from Business Combinations		$ 20,900
Fair value of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards	$ 33,067
Common Stock, Shares, Outstanding	277,300,000
Stock awards vested as a result of the Raytheon Merger	400,000
Total outstanding shares entitled to merger consideration	277,700,000
Shares of RTC common stock issued for Raytheon Company outstanding common stock and vested equity awards	648,400,000
Price per share of RTC common stock	$ 51.00
Fair value adjustments to fixed assets	$ 1,100
Fair value adjustment to future pension and postretirement benefit obligations	$ 2,600
Raytheon Company [Member] \| Developed Technology Rights \| Maximum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	7 years
Raytheon Company [Member] \| Developed Technology Rights \| Minimum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	5 years

Acquisition, Dispositions, Goodwill and Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Goodwill [Line Items]
Goodwill - Beginning Balance			$ 36,609
Goodwill Resulting from Business Combinations			19,983
Goodwill - Foreign Currency Translation and Other			(140)
Goodwill - Ending Balance	$ 53,269		53,269
Goodwill impairment	(3,183)	$ 0	(3,183)	$ 0
Collins Aerospace Systems [Member]
Goodwill [Line Items]
Goodwill - Beginning Balance			35,025
Goodwill Resulting from Business Combinations			(886)
Goodwill - Foreign Currency Translation and Other			(120)
Goodwill - Ending Balance	30,836		30,836
Fair Value in Excess of Net Book Value, Amount	$ 1,400		$ 1,400
Fair Value in Excess of Net Book Value, Percent	19.00%		19.00%
Goodwill impairment			$ (3,183)
Goodwill impairment impact of 25bps increase in discount rate	$ 1,200		1,200
Goodwill impairment impact of 25bps decrease in discount rate	1,300		1,300
Goodwill impairment impact of 10% increase in cash flows	2,500		2,500
Goodwill impairment impact of 10% decrease in cash flows	2,100		2,100
Collins Aerospace Systems [Member] \| Trade Names [Member]
Goodwill [Line Items]
Impairment of Intangible Asset, Tradename	17		57
Pratt & Whitney [Member]
Goodwill [Line Items]
Goodwill - Beginning Balance			1,563
Goodwill Resulting from Business Combinations			0
Goodwill - Foreign Currency Translation and Other			0
Goodwill - Ending Balance	1,563		1,563
Goodwill impairment			0
Raytheon Intelligence & Space [Member]
Goodwill [Line Items]
Goodwill - Beginning Balance			0
Goodwill Resulting from Business Combinations			8,422
Goodwill - Foreign Currency Translation and Other			2
Goodwill - Ending Balance	8,424		8,424
Goodwill impairment			0
Raytheon Missiles & Defense
Goodwill [Line Items]
Goodwill - Beginning Balance			0
Goodwill Resulting from Business Combinations			11,067
Goodwill - Foreign Currency Translation and Other			0
Goodwill - Ending Balance	11,067		11,067
Goodwill impairment			0
Total Segments [Member]
Goodwill [Line Items]
Goodwill - Beginning Balance			36,588
Goodwill Resulting from Business Combinations			18,603
Goodwill - Foreign Currency Translation and Other			(118)
Goodwill - Ending Balance	51,890		51,890
Goodwill impairment			(3,183)
Eliminations and other [Member]
Goodwill [Line Items]
Goodwill - Beginning Balance			21
Goodwill Resulting from Business Combinations			1,380
Goodwill - Foreign Currency Translation and Other			(22)
Goodwill - Ending Balance	$ 1,379		1,379
Goodwill impairment			$ 0

Acquisitions, Dispositions, Goodwill and Other Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 39,043	$ 39,043	$ 25,935
Accumulated Amortization	5,727	5,727	4,838
Unamortized: Trademarks and Other	8,687	8,687	3,376
Total Intangible Assets Gross Excluding Goodwill	47,730	47,730	29,311
Collins Aerospace Systems [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of Intangible Assets (Excluding Goodwill)	17	57
Intangible assets, amount of fair value in excess of carrying amount	$ 70	$ 70
Intangible assets, percentage of fair value in excess of carrying amount	4.00%	4.00%
Patents and trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 47	$ 47	47
Accumulated Amortization	34	34	34
Collaboration intangible assets [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	4,948	4,948	4,862
Accumulated Amortization	997	997	920
Customer relationships and other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	29,938	29,938	17,750
Accumulated Amortization	4,134	4,134	3,392
Developed Technology Rights
Finite-Lived Intangible Assets [Line Items]
Gross Amount	1,685	1,685	890
Accumulated Amortization	288	288	217
Exclusivity assets
Finite-Lived Intangible Assets [Line Items]
Gross Amount	2,425	2,425	2,386
Accumulated Amortization	$ 274	$ 274	$ 275

Acquisitions, Dispositions, Goodwill and Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Amortization of Intangible Assets	$ 600	$ 296	$ 907	$ 615
Amortization Expense, Remaining 2020	1,230		1,230
Amortization Expense, 2021	2,523		2,523
Amortization Expense, 2022	1,989		1,989
Amortization Expense, 2023	2,101		2,101
Amortization Expense, 2024	2,166		2,166
Amortization Expense, 2025	$ 2,030		$ 2,030

Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents					$ 2,441
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net					5,627
Disposal Group, Including Discontinued Operation, Contract Assets					1,209
Disposal Group, Including Discontinued Operation, Inventory, Current					1,903
Disposal Group, Including Discontinued Operation, Other Assets, Current					434
Disposal Group, Including Discontinued Operation, Deferred Tax Assets					725
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Noncurrent					2,433
Disposal Group, Including Discontinued Operation, Operating Lease Right-of-Use Assets					1,347
Disposal Group, Including Discontinued Operation, Goodwill, Noncurrent					11,454
Disposal Group, Including Discontinued Operation, Intangible Assets, Noncurrent					1,573
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent					2,677
Disposal Group, Including Discontinued Operation, Assets					31,823
Disposal Group, Including Discontinued Operation, Accounts Payable, Current					3,003
Disposal Group, Including Discontinued Operation, Accrued Liabilities, Current					4,540
Disposal Group, Including Discontinued Operation, Short-term Borrowings					71
Disposal Group, Including Discontinued Operation, Contract Liabilities, Current					2,899
Disposal Group, Including Discontinued Operation, Long-term Debt Currently Due					238
Disposal Group, Including Discontinued Operation, Long-term Debt					87
Disposal Group, Including Discontinued Operation, Pension Plan Benefit Obligation, Noncurrent					1,015
Disposal Group, Including Discontinued Operation, Operating Lease Liabilities					1,051
Disposal Group, Including Discontinued Operation, Other Liabilities, Noncurrent					1,539
Disposal Group, Including Discontinued Operation, Liabilities					14,443
Disposal Group, Including Discontinued Operation, Deferred Tax Liabilities					145
Income (loss) from discontinued operations	$ (56)	$ 1,206	$ (232)	$ 2,114
Income tax expense (benefit) from discontinued operations	(65)	435	237	679
Income (loss) from discontinued operations, net of tax	9	771	(469)	1,435
Less: Noncontrolling interest in subsidiaries’ earnings from discontinued operations	0	54	43	84
Income (loss) from discontinued operations attributable to common shareowners	9	717	(512)	1,351
Portfolio separation costs			1,345
Net cash provided by (used in) operating activities			(661)	841
Net cash used in investing activities			(241)	(114)
Net cash used in financing activities			(1,481)	(698)
Income from discontinued operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Portfolio separation costs			876
Income tax expense from discontinued operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Portfolio separation costs			19
Income from continuing operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Portfolio separation costs			35
Income tax expense [Domain]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Portfolio separation costs			415
Otis [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents					1,446
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net					2,899
Disposal Group, Including Discontinued Operation, Contract Assets					530
Disposal Group, Including Discontinued Operation, Inventory, Current					571
Disposal Group, Including Discontinued Operation, Other Assets, Current					213
Disposal Group, Including Discontinued Operation, Deferred Tax Assets					355
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Noncurrent					747
Disposal Group, Including Discontinued Operation, Operating Lease Right-of-Use Assets					529
Disposal Group, Including Discontinued Operation, Goodwill, Noncurrent					1,647
Disposal Group, Including Discontinued Operation, Intangible Assets, Noncurrent					490
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent					220
Disposal Group, Including Discontinued Operation, Assets					9,647
Disposal Group, Including Discontinued Operation, Accounts Payable, Current					1,321
Disposal Group, Including Discontinued Operation, Accrued Liabilities, Current					1,651
Disposal Group, Including Discontinued Operation, Short-term Borrowings					33
Disposal Group, Including Discontinued Operation, Contract Liabilities, Current					2,288
Disposal Group, Including Discontinued Operation, Long-term Debt Currently Due					1
Disposal Group, Including Discontinued Operation, Long-term Debt					5
Disposal Group, Including Discontinued Operation, Pension Plan Benefit Obligation, Noncurrent					560
Disposal Group, Including Discontinued Operation, Operating Lease Liabilities					383
Disposal Group, Including Discontinued Operation, Other Liabilities, Noncurrent					514
Disposal Group, Including Discontinued Operation, Liabilities					6,756
Disposal Group, Including Discontinued Operation, Revenue	0	3,348	2,966	6,444
Disposal Group, Including Discontinued Operation, General and Administrative Expense	0	471	450	913
Disposal Group, Including Discontinued Operation, Other Expense	0	(19)	(65)	(25)
Income (loss) from discontinued operations	0	445	340	849
Income tax expense (benefit) from discontinued operations	0	140	116	256
Income (loss) from discontinued operations, net of tax	0	305	224	593
Less: Noncontrolling interest in subsidiaries’ earnings from discontinued operations	0	45	37	71
Income (loss) from discontinued operations attributable to common shareowners	0	260	187	522
Otis [Member] \| Research and Development Expense
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Operating Expense	0	35	38	79
Otis [Member] \| Nonoperating Income (Expense)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Other Expense	0	(4)	(3)	(8)
Otis [Member] \| Product [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Costs of Goods Sold	0	1,224	913	2,286
Otis [Member] \| Service [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Costs of Goods Sold	0	1,150	1,157	2,284
Carrier [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents					995
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net					2,728
Disposal Group, Including Discontinued Operation, Contract Assets					679
Disposal Group, Including Discontinued Operation, Inventory, Current					1,332
Disposal Group, Including Discontinued Operation, Other Assets, Current					221
Disposal Group, Including Discontinued Operation, Deferred Tax Assets					370
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Noncurrent					1,686
Disposal Group, Including Discontinued Operation, Operating Lease Right-of-Use Assets					818
Disposal Group, Including Discontinued Operation, Goodwill, Noncurrent					9,807
Disposal Group, Including Discontinued Operation, Intangible Assets, Noncurrent					1,083
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent					2,457
Disposal Group, Including Discontinued Operation, Assets					22,176
Disposal Group, Including Discontinued Operation, Accounts Payable, Current					1,682
Disposal Group, Including Discontinued Operation, Accrued Liabilities, Current					2,889
Disposal Group, Including Discontinued Operation, Short-term Borrowings					38
Disposal Group, Including Discontinued Operation, Contract Liabilities, Current					611
Disposal Group, Including Discontinued Operation, Long-term Debt Currently Due					237
Disposal Group, Including Discontinued Operation, Long-term Debt					82
Disposal Group, Including Discontinued Operation, Pension Plan Benefit Obligation, Noncurrent					455
Disposal Group, Including Discontinued Operation, Operating Lease Liabilities					668
Disposal Group, Including Discontinued Operation, Other Liabilities, Noncurrent					1,025
Disposal Group, Including Discontinued Operation, Liabilities					$ 7,687
Disposal Group, Including Discontinued Operation, Revenue	0	4,956	3,884	9,273
Disposal Group, Including Discontinued Operation, General and Administrative Expense	0	735	669	1,420
Disposal Group, Including Discontinued Operation, Other Expense	0	115	(30)	170
Income (loss) from discontinued operations	0	762	304	1,268
Income tax expense (benefit) from discontinued operations	0	209	102	339
Income (loss) from discontinued operations, net of tax	0	553	202	929
Less: Noncontrolling interest in subsidiaries’ earnings from discontinued operations	0	9	6	13
Income (loss) from discontinued operations attributable to common shareowners	0	544	196	916
Carrier [Member] \| Research and Development Expense
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Operating Expense	0	103	98	200
Carrier [Member] \| Nonoperating Income (Expense)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Other Expense	0	12	(17)	22
Carrier [Member] \| Product [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Costs of Goods Sold	0	2,901	2,239	5,463
Carrier [Member] \| Service [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Costs of Goods Sold	0	582	527	1,114
Separation related transactions
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, General and Administrative Expense	13	0	167	0
Income (loss) from discontinued operations	(56)	0	(876)	0
Income tax expense (benefit) from discontinued operations	(65)	87	19	87
Income (loss) from discontinued operations attributable to common shareowners	9	(87)	(895)	(87)
Separation related transactions \| Nonoperating Income (Expense)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Other Expense	$ (43)	$ 0	$ (709)	$ 0

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net income attributable to common shareowners:
Income (loss) from continuing operations attributable to common shareowners	$ (3,844)	$ 1,183	$ (3,406)	$ 1,895
Income (loss) from discontinued operations attributable to common shareowners	9	717	(512)	1,351
Net income attributable to common shareowners	$ (3,835)	$ 1,900	$ (3,918)	$ 3,246
Basic weighted average number of shares outstanding	1,501.3	854.4	1,225.4	853.8
Stock awards and equity units	0.0	9.3	0.0	8.5
Diluted weighted average number of shares outstanding	1,501.3	863.7	1,225.4	862.3
Earnings Per Share of Common Stock - Basic:
Income (loss) from continuing operations attributable to common shareowners	$ (2.56)	$ 1.38	$ (2.78)	$ 2.22
Income (loss) from discontinued operations	0.01	0.84	(0.42)	1.58
Earnings Per Share, Basic	(2.55)	2.22	(3.20)	3.80
Earnings Per Share of Common Stock - Diluted:
Income (loss) from continuing operations attributable to common shareowners	(2.56)	1.37	(2.78)	2.20
Income (loss) from discontinued operations	0.01	0.83	(0.42)	1.56
Earnings Per Share, Diluted	$ (2.55)	$ 2.20	$ (3.20)	$ 3.76
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	36.6	11.0	53.3	13.0

Accounts Receivable, Net (Schedule of Receivables, Net) (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Accounts Receivable, before Allowance for Credit Loss	$ 9,990	$ 8,997
Accounts Receivable, Allowance for Credit Loss	(494)	(254)
Accounts Receivable, after Allowance for Credit Loss	$ 9,496	$ 8,743

Accounts Receivable, Net (Allowance for Credit Loss) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2020 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance as of December 31, 2019	$ 254
Current period provision for expected credit losses(1)	225
Write-offs charged against the allowance for expected credit losses	(3)
Other(2)	18
Balance as of June 30, 2020	494
ASU 2016-13 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other(2)	34
COVID-19 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current period provision for expected credit losses(1)	$ 194

Accounts Receivable, Net (Details) - USD ($) $ in Millions	6 Months Ended
Accounts Receivable, Net (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Factored receivables	$ 3,800	$ 3,500
Less: Restricted cash	42	$ 18
Factored receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less: Restricted cash	11		$ 7
Accrued Liabilities	$ 11		$ 7

Contract Asset and Liability (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Apr. 03, 2020	Dec. 31, 2019
Revenue from contract with customer [Line Items]
Contract assets	$ 9,943		$ 9,943			$ 4,462
Contract liabilities, current	(11,997)		(11,997)			(9,014)
Contract liabilities, non-current (included within Other long-term liabilities)	(111)		(111)			0
Net contract liabilities	(2,165)		(2,165)			$ (4,552)
Contract with Customer, Asset, Change			5,500
Contract with Customer, Liability, Change			(3,100)
Contract with Customer, Liability, Revenue Recognized	625	$ 587	1,808	$ 1,538
Contract with Customer, Asset, Allowance for Credit Loss	155		155
Total contract value related to precision guided munitions to certain Middle Eastern customers pending U.S. government approval	1,200		1,200
Sales recognized for work performed to date related to precision guided munitions to certain Middle Eastern customers pending U.S. government approval	50		50		$ 400
Advances received to date on contracts related to precision guided munitions to certain Middle Eastern customers pending U.S. government approval	450		450
Net contract assets related to precision guided munitions to certain Middle Eastern customers pending U.S. government approval	150		150
Net contract liabilities related to precision guided munitions to certain Middle Eastern customers pending U.S. government approval	150		150
Contract with Customer, Asset, Allowance for Credit Loss, Writeoff	$ 96		106
Raytheon Company [Member]
Revenue from contract with customer [Line Items]
Contract with Customer, Asset, Change			5,400
Contract with Customer, Liability, Change			(3,200)
COVID-19 [Member]
Revenue from contract with customer [Line Items]
Contract with Customer, Asset, Credit Loss Expense (Reversal)			$ 108

Inventory (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 3,375	$ 2,984
Work-in-process	3,031	2,586
Finished goods	3,850	3,477
Inventory, net	10,256	9,047
Inventory Valuation Reserves	$ 1,345	$ 1,122

Borrowings and Lines of Credit (Short-Term Borrowings) (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Short-term Debt [Line Items]
Commercial paper	$ 160	$ 0
Other borrowings	83	2,293
Total short-term borrowings	$ 243	$ 2,293

Borrowing and Lines of Credit (Narrative) (Details)	6 Months Ended
Borrowing and Lines of Credit (Narrative) (Details)	Jun. 30, 2020 USD ($)
Line of Credit Facility [Line Items]
Maximum Commercial Paper Borrowing Authority	$ 5,000,000,000.0
Repayments of Debt	15,174,000,000
Aggregate Line of Credit Agreements, Maximum Borrowing Capacity	7,000,000,000.0
Debt Exchanged	$ 8,200,000,000
$500M Term Loan Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Date	May 05, 2020
Line of Credit Facility, Initiation Date	Mar. 20, 2020
Termination of Credit Agreement	$ 500,000,000
2.20B Revolving Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	5,000,000,000.0
2.15B Multicurrency Revolving Credit Agreement [Member]
Line of Credit Facility [Line Items]
Termination of Credit Agreement	2,150,000,000
2.0B Revolving Credit Agreement [Member]
Line of Credit Facility [Line Items]
Termination of Credit Agreement	2,200,000,000
4.0B Term Credit Agreement [Member]
Line of Credit Facility [Line Items]
Termination of Credit Agreement	$ 4,000,000,000.0
500M term credit agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Date	Apr. 28, 2020
Line of Credit Facility, Initiation Date	Mar. 23, 2020
1.0B Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000,000,000.0
Borrowings [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,100,000,000
1.0B Credit Agreement - Otis [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Date	Feb. 10, 2023
Line of Credit Facility, Initiation Date	Feb. 10, 2020
1.75B Credit Agreement - Carrier [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Date	Feb. 10, 2023
Line of Credit Facility, Initiation Date	Feb. 10, 2020
Termination of Credit Agreement	$ 1,750,000,000
Line of Credit - Otis [Member]
Line of Credit Facility [Line Items]
Termination of Credit Agreement	1,000,000,000.0
$2.0B revolving credit agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,000,000,000.0
Line of Credit Facility, Expiration Date	Feb. 11, 2020
Termination of Credit Agreement	$ 2,000,000,000.0
$4.0B Term Loan Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Date	Mar. 03, 2020
$2.20B Revolving Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Date	Apr. 03, 2020

Borrowings and Lines of Credit (Long-Term Debt) (Details)
€ in Millions, $ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2020

USD ($)

Mar. 31, 2020

USD ($)

Jun. 30, 2020

USD ($)

Jun. 30, 2020

EUR (€)

Dec. 31, 2019

USD ($)

Employee Benefit Plans (Details) $ in Millions		3 Months Ended		6 Months Ended
Employee Benefit Plans (Details) $ in Millions	Apr. 03, 2020 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, number of plan participants	3,400
Defined benefit plan, benefit obligation, (increase) decrease due to remeasurement	$ 2,400
Contributions - Defined benefit plans		$ 34	$ 33	$ 42	$ 37
Contributions - Defined contribution plans		227	117	440	252
Liability, Defined Benefit Pension Plan, Noncurrent		14,972		14,972		$ 2,487
Non-service pension (income) cost		(237)	(200)	(405)	(392)
Total net periodic benefit (income) cost				(223)	(244)
Fair Value, Recurring [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Marketable securities held in trusts		758		758		0
Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Liability, Defined Benefit Pension Plan, Noncurrent		13,774		13,774		1,770
Service cost		142	74	179	146
Interest cost		452	321	705	642
Expected return on plan assets		(814)	(568)	(1,335)	(1,136)
Amortization of prior service cost (credit)		13	4	26	9
Recognized actuarial net loss (gain)		83	49	169	98
Net settlement and curtailment loss		27	0	27	8
Non-service pension (income) cost		(239)	(194)	(408)	(379)
Total net periodic benefit (income) cost		(97)	(120)	(229)	(233)
Pension Plan [Member] \| UNITED STATES
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions - Defined contribution plans				77
Other Postretirement Benefits Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Liability, Defined Benefit Pension Plan, Noncurrent		1,069		1,069		696
Service cost		2	1	3	2
Interest cost		10	8	16	16
Expected return on plan assets		(4)	0	(5)	(1)
Amortization of prior service cost (credit)		(1)	(11)	(2)	(22)
Recognized actuarial net loss (gain)		(3)	(3)	(6)	(6)
Net settlement and curtailment loss		0	0	0	0
Non-service pension (income) cost		2	(6)	3	(13)
Total net periodic benefit (income) cost		4	$ (5)	6	$ (11)
Other pension and PRB related items
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Liability, Defined Benefit Pension Plan, Noncurrent		$ 129		$ 129		$ 21

Fair Value Measurements (Fair Value Hierarchy Classification) (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Portion at Other than Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Customer financing notes receivable	$ 281	$ 220
Short-term borrowings	(243)	(2,293)
Long-term debt (excluding finance leases)	(32,442)	(40,883)
Long-term liabilities	(48)	(334)
Short-term borrowings	(243)	(2,293)
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Customer financing notes receivable	276	220
Short-term borrowings	(243)	(2,293)
Long-term debt (excluding finance leases)	(37,165)	(45,887)
Long-term liabilities	(46)	(320)
Fair Value Level 1 [Member] \| Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Customer financing notes receivable	0	0
Short-term borrowings	0	0
Long-term debt (excluding finance leases)	0	0
Long-term liabilities	0	0
Fair Value Level 2 [Member] \| Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Customer financing notes receivable	276	220
Short-term borrowings	(160)	0
Long-term debt (excluding finance leases)	(28,842)	(45,802)
Long-term liabilities	(46)	(320)
Fair Value Level 3 [Member] \| Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Customer financing notes receivable	0	0
Short-term borrowings	(83)	(2,293)
Long-term debt (excluding finance leases)	(8,323)	(85)
Long-term liabilities	0	0
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		53
Marketable securities held in trusts	758	0
Derivative assets	49	46
Derivative liabilities	(381)	(282)
Fair Value, Recurring [Member] \| Fair Value Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		53
Marketable securities held in trusts	758
Derivative assets	0	0
Derivative liabilities	0	0
Fair Value, Recurring [Member] \| Fair Value Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		0
Marketable securities held in trusts	0
Derivative assets	49	46
Derivative liabilities	(381)	(282)
Fair Value, Recurring [Member] \| Fair Value Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		0
Marketable securities held in trusts	0
Derivative assets	0	0
Derivative liabilities	$ 0	$ 0

Variable Interest Entities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Variable Interest Entity [Line Items]
Assets, Current	$ 42,274	$ 61,577
Assets	161,517	139,615
Liabilities, Current	35,291	46,594
Liabilities	92,590	95,289
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Assets, Current	6,097	5,448
Assets, Noncurrent	908	894
Assets	7,005	6,342
Liabilities, Current	6,904	6,971
Liabilities, Noncurrent	109	94
Liabilities	$ 7,013	$ 7,065
International Aero Engines AG [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Methodology for Determining Whether Entity is Primary Beneficiary	Pratt & Whitney holds a 61% net interest in the International Aero Engines AG (IAE) collaboration with MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC) and a 49.5% ownership interest in IAE. IAE’s business purpose is to coordinate the design, development, manufacturing and product support of the V2500 program through involvement with the collaborators.
International Aero Engines LLC [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Methodology for Determining Whether Entity is Primary Beneficiary	Additionally, Pratt & Whitney, JAEC and MTU are participants in International Aero Engines, LLC (IAE LLC), whose business purpose is to coordinate the design, development, manufacturing and product support for the PW1100G-JM engine for the Airbus A320neo aircraft and the PW1400G-JM engine for the Irkut MC21 aircraft. Pratt & Whitney holds a 59% net interest and a 59% ownership interest in IAE LLC. IAE and IAE LLC retain limited equity with the primary economics of the programs passed to the participants.

Guarantees (Details) - USD ($) $ in Millions	6 Months Ended
Guarantees (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Product Warranty Liability [Line Items]
Balance as of January 1	$ 1,033	$ 929
Warranties and performance guarantees issued	149	212
Settlements made	(154)	(155)
Other	(20)	9
Balance as of September 30	1,008	$ 995
Commercial Aerospace Financing Arrangements
Product Warranty Liability [Line Items]
Maximum Potential Payment	333		$ 333
Carrying Amount of Liability	8		7
Guarantee Type, Other
Product Warranty Liability [Line Items]
Carrying Amount of Liability	121		166
third party guarantees
Product Warranty Liability [Line Items]
Maximum Potential Payment	365		48
Carrying Amount of Liability	$ 4		$ 0

Contingent Liabilities (Details) - USD ($) $ in Millions	6 Months Ended
Contingent Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
Accrual for Environmental Loss Contingencies	$ 811	$ 725
Other Commitment	12,600
Other Financing Arrangements [Member]
Loss Contingencies [Line Items]
Other Commitment	$ 4,900
Commercial Aerospace [Member]
Loss Contingencies [Line Items]
Financing and other contractual commitments		$ 15,000
2019 U.S. Defense Contract Management Agency Claim Against Pratt & Whitney [Domain]
Loss Contingencies [Line Items]
Loss Contingency Allegations	As previously disclosed, in April 2019, a Divisional Administrative Contracting Officer (DACO) of the United States DCMA asserted a claim against Pratt & Whitney to recover overpayments of approximately $1.73 billion plus interest ($621 million at June 30, 2020).
2013 U.S. Defense Contract Management Agency Claim Against Pratt & Whitney [Member]
Loss Contingencies [Line Items]
Loss Contingency Allegations	As previously disclosed, in December 2013, a DCMA DACO asserted a claim against Pratt & Whitney to recover overpayments of approximately $177 million plus interest ($105 million at June 30, 2020).
2018 U.S. Defense Contract Management Agency Claim Against Pratt & Whitney [Member]
Loss Contingencies [Line Items]
Loss Contingency Allegations	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 ($64 million at June 30, 2020), which we also believe is without merit and which Pratt & Whitney appealed to the ASBCA in January 2019.

Segment Financial Data (Components of Identifiable Assets) (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 161,517	$ 139,615
Collins Aerospace Systems [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	70,791	74,049
Pratt & Whitney [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	31,749	31,170
Raytheon Intelligence & Space [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	20,137	0
Raytheon Missiles & Defense
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	29,681	0
Discontinued Operations
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	135	31,823
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	152,358	105,219
Corporate, Non-Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 9,024	$ 2,573