Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Registrant Name | UNITED TECHNOLOGIES CORP /DE/ | ||
Entity Central Index Key | 101,829 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Public Float | $ 99,985,852,722 | ||
Entity Common Stock, Shares Outstanding | 861,748,797 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 66,501 | $ 59,837 | $ 57,244 |
Costs and Expenses: | |||
Research and development | 2,462 | 2,427 | 2,376 |
Selling, general and administrative | 7,066 | 6,429 | 5,958 |
Total costs and expenses | 59,513 | 53,057 | 49,805 |
Other Income | 1,565 | 1,358 | 782 |
Operating profit | 8,553 | 8,138 | 8,221 |
Non-service pension cost (benefit) | (765) | (534) | 49 |
Interest Expense, net | 1,038 | 909 | 1,039 |
Income from continuing operations before income taxes | 8,280 | 7,763 | 7,133 |
Income tax expense | 2,626 | 2,843 | 1,697 |
Net income from continuing operations | 5,654 | 4,920 | 5,436 |
Less: Noncontrolling interest in subsidiaries' earnings from continuing operations | 385 | 368 | 371 |
Income from continuing operations attributable to common shareowners | 5,269 | 4,552 | 5,065 |
Discontinued operations (Note 3): | |||
Income from operations | 0 | 0 | 1 |
Gain on disposal | 0 | 0 | 13 |
Income tax expense | 0 | 0 | 24 |
Net (loss) income from discontinued operations | 0 | 0 | (10) |
(Loss) Income from discontinued operations attributable to common shareowners | 0 | 0 | (10) |
Net income attributable to common shareowners | $ 5,269 | $ 4,552 | $ 5,055 |
Earnings Per Share of Common Stock - Basic: | |||
Net income from continuing operations attributable to common shareowners | $ 6.58 | $ 5.76 | $ 6.19 |
Net income attributable to common shareowners | 6.58 | 5.76 | 6.18 |
Earnings Per Share of Common Stock - Diluted: | |||
Net income from continuing operations attributable to common shareowners | 6.50 | 5.70 | 6.13 |
Net income attributable to common shareowners | 6.50 | 5.70 | 6.12 |
Dividends Per Share of Common Stock | $ 2.84 | $ 2.72 | $ 2.62 |
Weighted average number of shares outstanding: | |||
Basic shares | 800,400,000 | 790,000,000 | 818,200,000 |
Diluted shares | 810,100,000 | 799,100,000 | 826,100,000 |
Product [Member] | |||
Revenues | $ 45,434 | $ 41,361 | $ 40,735 |
Costs and Expenses: | |||
Cost of Goods and Services Sold | 36,754 | 31,224 | 30,304 |
Service [Member] | |||
Revenues | 21,067 | 18,476 | 16,509 |
Costs and Expenses: | |||
Cost of Goods and Services Sold | $ 13,231 | $ 12,977 | $ 11,167 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income from continuing operations | $ 5,654 | $ 4,920 | $ 5,436 |
Net (loss) income from discontinued operations | 0 | 0 | (10) |
Net income | 5,654 | 4,920 | 5,426 |
Foreign currency translation adjustments | |||
Foreign currency translation adjustments arising during period | (516) | 620 | (1,089) |
Reclassification adjustments for from sale of an investment in a foreign entity recognized in net income | 2 | 10 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (518) | 610 | (1,089) |
Tax expense (benefit) | 4 | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (522) | 610 | (1,089) |
Change in pension and post-retirement benefit plans | |||
Net actuarial (loss) gain arising during period | (1,819) | 241 | (785) |
Prior service cost (credit) arising during period | 22 | (2) | 13 |
Amortization of prior service credit | 344 | 529 | 535 |
Other | 105 | (116) | 542 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, Portion Attributable to Parent | 1,392 | (656) | (279) |
Tax (expense) benefit | 326 | (263) | (189) |
Other Comprehensive Income (Loss), Defined Benefit Plan, after Reclassification Adjustment, after Tax | 1,066 | (393) | (90) |
Unrealized gain (loss) on available-for-sale securities | |||
Unrealized holding gain arising during period | 0 | 5 | 190 |
Reclassification adjustments for gain included in Other income, net | 0 | 566 | 94 |
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on Securities Arising During Period | (5) | 0 | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | (5) | (561) | 96 |
Tax expense (benefit) | 0 | (213) | 36 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | (5) | (348) | 60 |
Change in unrealized cash flow hedging | |||
Unrealized cash flow hedging gain (loss) arising during period | (307) | 347 | 75 |
Gain (Loss) reclassified into Product sales | 16 | 39 | (171) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Portion Attributable to Parent | (323) | 308 | 246 |
Tax expense (benefit) | (78) | 74 | 69 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | (245) | 234 | 177 |
Other comprehensive (loss) income, net of tax | (1,838) | 889 | (762) |
Comprehensive income | 3,816 | 5,809 | 4,664 |
Less: Comprehensive income attributable to noncontrolling interest | 355 | 448 | 324 |
Comprehensive income atrributable to common shareowners | $ 3,461 | $ 5,361 | $ 4,340 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 6,152 | $ 8,985 |
Accounts receivable (net of allowance for doubtful accounts of $488 and $456) | 14,271 | 12,595 |
Contract with Customer, Asset, Net, Current | 3,486 | 0 |
Inventories and contracts in progress, net | 10,083 | 9,881 |
Other assets, current | 1,511 | 1,397 |
Total Current Assets | 35,503 | 32,858 |
Customer financing assets | 3,023 | 2,372 |
Future income tax benefits | 1,646 | 1,723 |
Fixed assets, net | 12,297 | 10,186 |
Goodwill | 48,112 | 27,910 |
Intangible assets, net | 26,424 | 15,883 |
Other assets | 7,206 | 5,988 |
Total Assets | 134,211 | 96,920 |
Liabilities and Equity | ||
Short-term borrowings | 1,469 | 392 |
Accounts payable | 11,080 | 9,579 |
Accrued liabilities | 10,223 | 12,316 |
Contract with Customer, Liability, Current | 5,720 | 0 |
Long-term debt currently due | 2,876 | 2,104 |
Total Current Liabilities | 31,368 | 24,391 |
Long-term debt | 41,192 | 24,989 |
Future pension and postretirement benefit obligations | 4,018 | 3,036 |
Other long-term liabilities | 16,914 | 12,952 |
Total Liabilities | 93,492 | 65,368 |
Redeemable noncontrolling interest | 109 | 131 |
Capital Stock: | ||
Preferred Stock, $1 par value; 250,000 shares authorized; None issued or outstanding | 0 | 0 |
Common Stock, $1 par value; 4,000,000 shares authorized; 1,446,961 and 1,444,187 shares issued | 22,514 | 17,574 |
Treasury Stock— 585,479 and 645,057 common shares at average cost | 32,482 | 35,596 |
Retained earnings | 57,823 | 55,242 |
Unearned ESOP shares | 76 | 85 |
Total Accumulated other comprehensive loss | (9,333) | (7,525) |
Total Shareowners' Equity | 38,446 | 29,610 |
Noncontrolling interest | 2,164 | 1,811 |
Total Equity | 40,610 | 31,421 |
Total Liabilities and Equity | $ 134,211 | $ 96,920 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 488 | $ 456 |
Preferred Stock, par value | $ 1 | $ 1 |
Preferred Stock. shares authorized | 250,000 | 250,000 |
Preferred Stock, shares issued | 0 | 0 |
Common Stock, par value | $ 1 | $ 1 |
Common Stock, shares authorized | 4,000,000 | 4,000,000 |
Common Stock, Shares, Issued | 1,446,961 | 1,444,187 |
Treasury Stock, shares | 585,479 | 645,057 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities of Continuing Operations: | |||
Income from continuing operations | $ 5,654 | $ 4,920 | $ 5,436 |
Adjustments to reconcile income from continuing operations to net cash flows provided by operating activities of continuing operations: | |||
Depreciation and amortization | 2,433 | 2,140 | 1,962 |
Deferred income tax provision | 735 | 62 | 398 |
Stock compensation cost | 251 | 192 | 152 |
Gain on sale of Taylor Company | 799 | 0 | 0 |
Change in: | |||
Accounts receivable | 2,426 | 448 | 941 |
Contract assets, current | 604 | 0 | 0 |
Inventories and contracts in progress | 537 | 1,074 | 719 |
Other current assets | (161) | 101 | (49) |
Accounts payable and accrued liabilities | 2,446 | 1,571 | 450 |
Contract liabilities, current | 205 | 0 | 0 |
Global pension contributions | 147 | 2,112 | 303 |
Canadian Government Settlement | (429) | (285) | (237) |
Other operating activities, net | 621 | (766) | (165) |
Net Cash Provided by Operating Activities, Continuing Operations | 6,322 | 5,631 | 6,412 |
Investing Activities of Continuing Operations: | |||
Capital expenditures | 1,902 | 2,014 | 1,699 |
Increase in customer financing assets | 988 | 1,197 | 438 |
Decrease in customer financing assets | 606 | 222 | 217 |
Investments in businesses | 15,398 | 231 | 710 |
Dispositions of businesses | 1,105 | 70 | 211 |
Proceeds from the sale of the investment in Watsco Inc. | 0 | 596 | 0 |
Increase in collaboration intangible assets | 400 | 380 | 388 |
Payments (receipts) from settlements of derivative contracts | (143) | 317 | (249) |
Other investing activities, net | 139 | (232) | (49) |
Net cash flows used in investing activities of continuing operations | (16,973) | (3,019) | (2,509) |
Financing Activities of Continuing Operations: | |||
Issuance of long-term debt | 13,455 | 4,954 | 6,469 |
Repayment of long-term debt | 2,520 | 1,604 | 2,452 |
(Decrease) increase in short-term borrowings, net | (356) | (271) | (331) |
Common Stock issued under employee stock plans | 36 | 31 | 13 |
Dividends paid on Common Stock | 2,170 | 2,074 | 2,069 |
Repurchase of Common Stock | 325 | 1,453 | 2,254 |
Other financing activities, net | (155) | (576) | (564) |
Net cash flows provided by (used in) financing activities of continuing operations | 7,965 | (993) | (1,188) |
Discontinued Operations: | |||
Net cash used in operating activities | 0 | 0 | (2,532) |
Net cash provided by investing activities | 0 | 0 | 6 |
Net cash flows (used in) provided by discontinued operations | 0 | 0 | (2,526) |
Effect of foreign exchange rate changes on cash and cash equivalents | (120) | 210 | (120) |
Net (decrease) increase in cash and cash equivalents | (2,806) | 1,829 | 69 |
Cash and Cash Equivalents, beginning of period | 9,018 | 7,189 | 7,120 |
Cash and Cash Equivalents, end of period | 6,212 | 9,018 | 7,189 |
Cash and cash equivalents of continuing operations, end of year | 6,152 | 8,985 | 7,157 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid, net of amounts capitalized | 1,027 | 974 | 1,157 |
Income taxes paid, net of refunds | 1,714 | 1,326 | 4,096 |
Restricted Cash And Cash Equivalents | $ 60 | $ 33 | $ 32 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) shares in Thousands, $ in Millions | Total | ASU 2014-09 [Member] | Common Stock [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Unearned ESOP Shares [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Noncontrolling Interest |
Increase (Decrease) In Equity [Roll Forward] | ||||||||
Stockholders' Equity Attributable to Parent | $ 16,033 | $ (30,907) | $ 49,956 | $ (105) | $ (7,619) | |||
Noncontrolling interest | $ 1,486 | |||||||
Total Equity | $ 28,844 | |||||||
Common Stock issued under employee plans | 262 | 9 | 10 | |||||
Common Stock repurchased | (998) | 3,252 | ||||||
Common Stock issued for Rockwell Collins | 0 | 0 | ||||||
Purchase (sale) of subsidiary shares from noncontrolling interest | 8 | |||||||
Redeemable noncontrolling interest fair value adjustment | 0 | (1) | ||||||
Net Income - Retained Earnings | $ 5,055 | 5,055 | ||||||
Dividends on Common Stock | 2,069 | |||||||
Dividends on ESOP Common Stock | 74 | |||||||
Other | $ 0 | 6 | 1 | |||||
Other comprehensive income (loss), net of tax - AOCI | (715) | |||||||
Net Income - NCI | 371 | |||||||
Redeemable Noncontrolling Interest in subsidiaries' earnings | 6 | |||||||
Other comprehensive income (loss), net of tax - NCI | (27) | |||||||
Dividends attributable to noncontrolling interest | 345 | |||||||
Sale (purchase) of subsidiary shares in noncontrolling interest | 24 | |||||||
Acquisition (disposition) of noncontrolling interest | 98 | |||||||
Redeemable noncontrolling interest reclassification to noncontrolling interest | (12) | |||||||
Noncontrolling Interest, Increase from Capital Contributions | 0 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 2,485 | |||||||
Stock Repurchased During Period, Shares | 32,300 | |||||||
Dividends Per Share of Common Stock | $ 2.62 | |||||||
Stockholders' Equity Attributable to Parent | 17,285 | (34,150) | 52,873 | (95) | (8,334) | |||
Noncontrolling interest | 1,590 | |||||||
Total Equity | $ 29,169 | |||||||
Common Stock issued under employee plans | 331 | 7 | 10 | |||||
Common Stock repurchased | (1) | 1,453 | ||||||
Common Stock issued for Rockwell Collins | 0 | 0 | ||||||
Purchase (sale) of subsidiary shares from noncontrolling interest | (4) | |||||||
Redeemable noncontrolling interest fair value adjustment | (47) | (42) | ||||||
Net Income - Retained Earnings | $ 4,552 | 4,552 | ||||||
Dividends on Common Stock | 2,074 | |||||||
Dividends on ESOP Common Stock | 72 | |||||||
Other | 0 | 5 | 1 | |||||
Other comprehensive income (loss), net of tax - AOCI | 809 | |||||||
Net Income - NCI | 368 | |||||||
Redeemable Noncontrolling Interest in subsidiaries' earnings | 17 | |||||||
Other comprehensive income (loss), net of tax - NCI | 56 | |||||||
Dividends attributable to noncontrolling interest | 336 | |||||||
Sale (purchase) of subsidiary shares in noncontrolling interest | 0 | |||||||
Acquisition (disposition) of noncontrolling interest | 14 | |||||||
Redeemable noncontrolling interest reclassification to noncontrolling interest | 0 | |||||||
Noncontrolling Interest, Increase from Capital Contributions | 135 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 3,205,000 | |||||||
Stock Repurchased During Period, Shares | 12,900 | |||||||
Dividends Per Share of Common Stock | $ 2.72 | |||||||
Stockholders' Equity Attributable to Parent | $ 29,610 | 17,574 | (35,596) | 55,242 | (85) | (7,525) | ||
Noncontrolling interest | 1,811 | 1,811 | ||||||
Total Equity | 31,421 | |||||||
Common Stock issued under employee plans | 423 | 6 | 9 | |||||
Common Stock repurchased | 0 | 329 | ||||||
Common Stock issued for Rockwell Collins | 7,960 | 4,523 | 3,437 | |||||
Purchase (sale) of subsidiary shares from noncontrolling interest | 6 | |||||||
Redeemable noncontrolling interest fair value adjustment | 0 | 7 | ||||||
Net Income - Retained Earnings | $ 5,269 | 5,269 | ||||||
Dividends on Common Stock | 2,170 | |||||||
Dividends on ESOP Common Stock | 71 | |||||||
Other | $ 480 | 26 | 6 | |||||
Other comprehensive income (loss), net of tax - AOCI | (1,808) | |||||||
Net Income - NCI | 385 | |||||||
Redeemable Noncontrolling Interest in subsidiaries' earnings | 4 | |||||||
Other comprehensive income (loss), net of tax - NCI | (30) | |||||||
Dividends attributable to noncontrolling interest | 315 | |||||||
Sale (purchase) of subsidiary shares in noncontrolling interest | (23) | |||||||
Acquisition (disposition) of noncontrolling interest | (8) | |||||||
Redeemable noncontrolling interest reclassification to noncontrolling interest | 0 | |||||||
Noncontrolling Interest, Increase from Capital Contributions | 342 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 2,775 | |||||||
Stock Repurchased During Period, Shares | 2,727 | |||||||
Dividends Per Share of Common Stock | $ 2.84 | |||||||
Stockholders' Equity Attributable to Parent | $ 38,446 | $ 22,514 | $ (32,482) | $ 57,823 | $ (76) | $ (9,333) | ||
Noncontrolling interest | 2,164 | $ 2,164 | ||||||
Total Equity | $ 40,610 |
Summary of Accounting Principle
Summary of Accounting Principles | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Accounting Principles | SUMMARY OF ACCOUNTING PRINCIPLES The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. Consolidation. The Consolidated Financial Statements include the accounts of United Technologies Corporation (UTC) and its controlled subsidiaries. Intercompany transactions have been eliminated. Cash and Cash Equivalents. Cash and cash equivalents includes cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less. On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions or divestitures or other legal obligations. As of December 31, 2018 and 2017 , the amount of such restricted cash was approximately $60 million and $33 million , respectively. Accounts Receivable. Current and long-term accounts receivable as of December 31, 2018 includes retainage of $116 million and unbilled receivables of $678 million , which primarily includes unbilled receivables with commercial aerospace customers. Current and long-term accounts receivable as of December 31, 2017 include retainage of $118 million and unbilled receivables of $2,770 million , which includes approximately $1,109 million of unbilled receivables under commercial aerospace long-term aftermarket contracts. See Note 5 for discussion of commercial aerospace industry assets and commitments. Retainage represents amounts that, pursuant to the applicable contract, are not due until project completion and acceptance by the customer. Unbilled receivables represent revenues that are not currently billable to the customer under the terms of the contract. These items are expected to be billed and collected in the normal course of business. Upon adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers , and its related amendments (collectively, the New Revenue Standard) on January 1, 2018, the majority of unbilled receivables have been reclassified to contract assets as described below. Unbilled receivables where we have an unconditional right to payment are included in Accounts receivable as of December 31, 2018. Contract Assets and Liabilities. Contract assets and liabilities represent the difference in the timing of revenue recognition from receipt of cash from our customers. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Performance obligations partially satisfied in advance of customer billings are included in contract assets; prior to the New Revenue Standard, these amounts were included as unbilled receivables in Accounts receivable. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. See Note 3 for further discussion of contract assets and liabilities. Marketable Equity Securities. Equity securities that have a readily determinable fair value and that we do not intend to trade are classified as available-for-sale and carried at fair value. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . This ASU modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Upon adoption, investments that do not result in consolidation and are not accounted for under the equity method generally must be carried at fair value, with changes in fair value recognized in net income. As discussed in Note 10, we had approximately $5 million of unrealized gains on these securities recorded in Accumulated other comprehensive loss in our Consolidated Balance Sheet as of December 31, 2017. We adopted this standard effective January 1, 2018, with these amounts recorded directly to retained earnings as of that date. Inventories and Contracts in Progress. Inventories and contracts in progress are stated at the lower of cost or estimated realizable value and are primarily based on first-in, first-out (FIFO) or average cost methods; however, certain Collins Aerospace Systems and Carrier entities use the last-in, first-out (LIFO) method. If inventories that were valued using the LIFO method had been valued under the FIFO method, they would have been higher by $119 million and $106 million at December 31, 2018 and 2017 , respectively. Valuation reserves for excess, obsolete, and slow-moving inventory are estimated by comparing the inventory levels of individual parts to both future sales forecasts or production requirements and historical usage rates in order to identify inventory where the resale value or replacement value is less than inventoriable cost. Other factors that management considers in determining the adequacy of these reserves include whether individual inventory parts meet current specifications and cannot be substituted for a part currently being sold or used as a service part, overall market conditions, and other inventory management initiatives. Manufacturing costs are allocated to current production and firm contracts. Under prior accounting within commercial aerospace, the unit of accounting for certain contracts was the contract, and early-contract OEM unit costs in excess of the average unit costs expected over the contract were capitalized and amortized over lower-cost units later in the contract. As described in the "Revenue Recognition" section of Note 1 below, these costs were eliminated through retained earnings on January 1, 2018 and will not be amortized into future earnings based on the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers . Equity Method Investments. Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other assets on the Consolidated Balance Sheet. Under this method of accounting, our share of the net earnings or losses of the investee is included in Other income, net on the Consolidated Statement of Operations since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. Business Combinations. We account for transactions that are classified as business combinations in accordance with FASB ASC Topic 805, “Business Combinations” . Once a business is acquired, the fair value of the identifiable assets acquired and liabilities assumed is determined with the excess cost recorded to goodwill. As required, a preliminary fair value is determined once a business is acquired, with the final determination of the fair value being completed within the one year measurement period from the date of acquisition. Goodwill and Intangible Assets. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Goodwill and indefinite‑lived intangible assets are subject to annual impairment testing or when a triggering event occurs using the guidance and criteria described in the Intangibles - Goodwill and Other Topic of the FASB ASC. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. Intangible assets consist of service portfolios, patents, trademarks/tradenames, customer relationships and other intangible assets including a collaboration asset, as discussed further in Note 2. Acquired intangible assets are recognized at fair value in purchase accounting and then amortized to cost of sales and selling, general & administrative expenses over the applicable useful lives. Also included within other intangible assets are commercial aerospace payments made to secure certain contractual rights to provide product on new aircraft platforms. We classify amortization of such payments as a reduction of sales. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. Consideration paid on these contractual commitments is capitalized when it is no longer conditional. Useful lives of finite-lived intangible assets are estimated based upon the nature of the intangible asset and the industry in which the intangible asset is used. These intangible assets are amortized based on the pattern in which the economic benefits of the intangible assets are consumed. For both our commercial aerospace collaboration assets and exclusivity arrangements, the pattern of economic benefit generally results in lower amortization during the development period with increasing amortization as programs enter full rate production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined or if straight-line amortization approximates the pattern of economic benefit, a straight-line amortization method may be used. The range of estimated useful lives is as follows: Collaboration assets 30 years Customer relationships and related programs 1 to 50 years Purchased service contracts 5 to 25 years Patents & trademarks 4 to 40 years Exclusivity assets 5 to 25 years 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. Long-Term Financing Receivables. Our long-term financing receivables primarily represent balances related to the aerospace businesses such as long-term trade accounts receivable, leases, and notes receivable. We also have other long-term receivables in our commercial businesses; however, both the individual and aggregate amounts of those other receivables are not significant. Long-term trade accounts receivable, including unbilled receivables related to long-term aftermarket contracts in 2017, are principally amounts arising from the sale of goods and services with a contractual maturity date or realization period of greater than one year and are recognized as "Other assets" in our Consolidated Balance Sheet. Notes and leases receivable represent notes and lease receivables other than receivables related to operating leases, and are recognized as "Customer financing assets" in our Consolidated Balance Sheet. The following table summarizes the balance by class of aerospace business-related long-term receivables as of December 31, 2018 and 2017 : (dollars in millions) 2018 2017 Long-term trade accounts receivable $ 269 $ 973 Notes and leases receivable 258 424 Total long-term receivables $ 527 $ 1,397 We determine a receivable is impaired when, based on current information and events, it is probable that we will be unable to collect amounts due according to the contractual terms of the receivable agreement. Factors considered in assessing collectability and risk include, but are not limited to, examination of credit quality indicators and other evaluation measures, underlying value of any collateral or security interests, significant past due balances, historical losses, and existing economic conditions. 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 losses on these balances quarterly or when events and circumstances warrant. Customer credit ratings range from customers with an extremely strong capacity to meet financial obligations, to customers whose uncollateralized receivable is in default. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to the allowance for credit losses on long-term receivables. Based upon the customer credit ratings, approximately $150 million and $170 million of our long-term receivables were considered to bear high credit risk as of December 31, 2018 and 2017 , respectively. See Note 5 for further discussion of commercial aerospace industry assets and commitments. Reserves for credit losses on receivables relate to specifically identified receivables that are evaluated individually for impairment. For notes and leases receivable, we determine a specific reserve for exposure based on the difference between the carrying value of the receivable and the estimated fair value of the related collateral in connection with the evaluation of credit risk and collectability. For long-term trade accounts receivable, we evaluate credit risk and collectability individually to determine if an allowance is necessary. Our long-term receivables reflected in the table above, which include reserves of $16 million and $17 million as of December 31, 2018 and 2017 , respectively, are individually evaluated for impairment. At both December 31, 2018 and 2017 , 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. Income Taxes. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest expense has also been recognized. We recognize accrued interest related to unrecognized tax benefits in interest expense. Penalties, if incurred, would be recognized as a component of income tax expense. On December 22, 2017 the TCJA was enacted. The TCJA contains a new law that subjects the Company to a tax on Global Intangible Low-Taxed Income (GILTI), beginning in 2018. GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The FASB has 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, if incurred. Revenue Recognition. ASU 2014-09 and its related amendments are effective for reporting periods beginning after December 15, 2017. We adopted the New Revenue Standard effective January 1, 2018 and elected the modified retrospective approach. The results for periods before 2018 were not adjusted for the new standard and the cumulative effect of the change in accounting was recognized through retained earnings at the date of adoption. See Note 3 for a discussion of the effect of the New Revenue Standard on our statements of financial position and results of operations. We account for revenue in accordance with Accounting Standards Codification (ASC) Topic 606: Revenue from Contracts with Customers. Under Topic 606, a performance obligation is a promise in a contract with a customer to transfer a distinct good or service to the customer. Some of our contracts with customers contain a single performance obligation, while others contain multiple performance obligations most commonly when a contract spans multiple phases of the product life-cycle such as development, production, maintenance and support. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When there are multiple performance obligations within a contract, we allocate the transaction price to each performance obligation based on its standalone selling price. We consider the contractual consideration payable by the customer and assess variable consideration that may affect the total transaction price, including contractual discounts, contract incentive payments, estimates of award fees, unfunded contract value under U.S. Government contracts, and other sources of variable consideration, when determining the transaction price of each contract. We include variable consideration in the estimated transaction price when there is a basis to reasonably estimate the amount. These estimates are based on historical experience, anticipated performance and our best judgment at the time. We also consider whether our contracts provide customers with significant financing. Generally, our contracts do not contain significant financing. Point in time revenue recognition. 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 heating, ventilating, air-conditioning and refrigeration systems, certain alarm and fire detection and suppression systems, and certain aerospace components, engines, and spare parts. Revenue is recognized when control of the product transfers to the customer, generally upon product shipment. Over-time revenue recognition. Performance obligations are satisfied over-time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being produced, or if the product being produced for the customer has no alternative use and we have a contractual right to payment. Revenue is recognized for our construction-type and certain production-type contracts on an over-time basis. We recognize revenue on an over-time basis on certain long-term aerospace aftermarket contracts and aftermarket service work; development, fixed price, and other cost reimbursement contracts in our aerospace businesses; and elevator and escalator sales, installation, service, modernization and other construction contracts in our commercial businesses. For construction and installation contracts within our commercial businesses and aerospace performance obligations satisfied over time, revenue is recognized 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 include labor, materials, and subcontractors' costs, or other direct costs, and where applicable on government and commercial contracts, indirect costs. For certain of our long-term aftermarket contracts, revenue is recognized over the contract period. In the commercial businesses, revenue is primarily recognized on a straight-line basis over the contract period. In the aerospace businesses, we generally account for such contracts as a series of daily obligations to stand ready to provide spare parts and product maintenance and aftermarket services. These arrangements include the sale of spare parts with integral services to our customers, and are generally classified as Service sales, with the corresponding costs classified in Cost of services sold, within the statement of operations. Revenue is primarily recognized in proportion to cost as sufficient historical evidence indicates that the cost of performing services under the contract is incurred on an other than straight-line basis. Aerospace contract modifications are routine and contracts are often modified to account for changes in contract specifications or requirements. Contract modifications that are for goods or services that are not distinct are accounted for as part of the existing contract. We incur costs for engineering and development of aerospace products directly related to existing or anticipated contracts with customers. Such costs generate or enhance our ability to satisfy our performance obligations under these contracts. We capitalize these costs as contract fulfillment costs to the extent the costs are recoverable from the associated contract margin and subsequently amortize the costs as the original equipment (OEM) products performance obligations are satisfied. In instances where intellectual property does not transfer to the customer, we defer the customer funding of OEM product engineering and development and recognize revenue when the OEM products performance obligations are satisfied. Capitalized contract fulfillment costs are recognized in "Other assets" in our Consolidated Balance Sheet. Costs to obtain contracts are not material. Loss provisions on OEM contracts are recognized to the extent that estimated contract costs exceed the estimated consideration from the products contemplated under the contractual arrangement. For new commitments, we generally record loss provisions at the earlier of contract announcement or contract signing except for certain contracts under which losses are recorded upon receipt of the purchase order that obligates us to perform. For existing commitments, anticipated losses on contractual arrangements are recognized in the period in which losses become evident. Products contemplated under contractual arrangements include firm quantities of product sold under contract and, in the commercial engine and wheels and brakes businesses, future highly probable sales of replacement parts required by regulation that are expected to be sold subsequently for incorporation into the original equipment. In the commercial engine and wheels and brakes businesses, when the combined original equipment and aftermarket arrangement for each individual sales campaign are profitable, we record original equipment product losses, as applicable, at the time of delivery. We review our cost estimates on significant contracts on a quarterly basis and for others, no less frequently than annually or when circumstances change and warrant a modification to a previous estimate. We record changes in contract estimates using the cumulative catch-up method. Operating profits included net unfavorable changes in aerospace contract estimates of approximately $50 million , $110 million , and $157 million in 2018 , 2017 and 2016 , respectively, primarily the result of unexpected increases in estimated costs related to Pratt & Whitney long term aftermarket contracts. Collaborations: Sales generated from engine programs, spare parts sales, and aftermarket business under collaboration arrangements are recorded consistent with our revenue recognition policies in our consolidated financial statements. Amounts attributable to our collaborators for their share of sales are recorded as cost of sales in our consolidated financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement of a collaborator's share of program costs is recorded as a reduction of the related expense item at that time. Cash Payments to Customers: Carrier customarily offers its customers incentives to purchase products to ensure an adequate supply of its products in the distribution channels. The principal incentive program provides reimbursements to distributors for offering promotional pricing for our products. We account for incentive payments made as a reduction in sales. In our aerospace businesses, we may make participation payments to certain 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. Contractually stated prices in arrangements with our customers that include the acquisition of intangible rights within the scope of the Intangibles - Goodwill and Other Topic of the FASB ASC and deliverables within the scope of the Revenue Recognition Topic of the FASB ASC are not presumed to be representative of fair value for determining the amounts to allocate to each element of an arrangement. Research and Development. Research and development costs not specifically covered by contracts and those related to the company sponsored share of research and development activity in connection with cost-sharing arrangements are charged to expense as incurred. Government research and development support, not associated with specific contracts, is recorded as a reduction to research and development expense in the period earned. Research and development costs incurred under contracts with customers are included as a contract cost and reported as a component of cost of products sold when revenue from such contracts is recognized. Research and development costs in excess of contractual consideration are expensed as incurred. Foreign Exchange. We conduct business in many different currencies and, accordingly, are subject to the inherent risks associated with foreign exchange rate movements. The financial position and results of operations of substantially all of our foreign subsidiaries are measured using the local currency as the functional currency. Foreign currency denominated assets and liabilities are translated into U.S. Dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries are deferred as a separate component of shareowners' equity. Derivatives and Hedging Activity. We have used derivative instruments, including swaps, forward contracts and options, to help manage certain foreign currency, interest rate and commodity price exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. By their nature, all financial instruments involve market and credit risks. We enter into derivative and other financial instruments with major investment grade financial institutions and have policies to monitor the credit risk of those counterparties. We limit counterparty exposure and concentration of risk by diversifying counterparties. While there can be no assurance, we do not anticipate any material non-performance by any of these counterparties. We enter into transactions that are subject to enforceable master netting arrangements or similar agreements with various counterparties. However, we have not elected to offset multiple contracts with a single counterparty and, as a result, the fair value of the derivative instruments in a loss position is not offset against the fair value of derivative instruments in a gain position. Derivatives used for hedging purposes may be designated and effective as a hedge of the identified risk exposure at the inception of the contract. All derivative instruments are recorded on the balance sheet at fair value. Derivatives used to hedge foreign currency denominated balance sheet items are reported directly in earnings along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate. Gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income and reclassified to earnings as a component of product sales or expenses, as applicable, when the hedged transaction occurs. Gains and losses on derivatives designated as cash flow hedges are recorded in Other operating activities, net within the Consolidated Statement of Cash Flows. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period it occurs. As discussed in Note 14, at December 31, 2018 we have approximately €4.95 billion of euro-denominated long-term debt and €750 million of euro-denominated commercial paper borrowings outstanding, which qualify as a net investment hedge against our investments in European businesses. To the extent the hedge accounting criteria are not met, the foreign currency forward contracts are utilized as economic hedges and changes in the fair value of these contracts are recorded currently in earnings in the period in which they occur. Additional information pertaining to foreign currency forward contracts and net investment hedging is included in Note 14. Environmental . Environmental investigatory, remediation, operating and maintenance costs are accrued when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including existing technology, current laws and regulations and prior remediation experience. Where no amount within a range of estimates is more likely, the minimum is accrued. For sites with multiple responsible parties, we consider our likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their obligations in establishing a provision for those costs. Liabilities with fixed or reliably determinable future cash payments are discounted. Accrued environmental liabilities are not reduced by potential insurance reimbursements. See Note 18 for additional details on the environmental remediation activities. Pension and Postretirement Obligations. Guidance under the Compensation - Retirement Benefits Topic of the FASB ASC requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Under this guidance, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit cost. Product Performance Obligations. We extend performance and operating cost guarantees beyond our normal service and warranty policies for extended periods on some of our products, particularly commercial aircraft engines. Liability under such guarantees is 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 17 for |
Schedule II Schedule II
Schedule II Schedule II | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II UNITED TECHNOLOGIES CORPORATION AND SUBSIDIARIES Valuation and Qualifying Accounts Three years ended December 31, 2018 (Millions of Dollars) Allowances for Doubtful Accounts and Other Customer Financing Activity: Balance, December 31, 2015 $ 553 Provision charged to income 64 Doubtful accounts written off (net) (105 ) Other adjustments (45 ) Balance, December 31, 2016 467 Provision charged to income 88 Doubtful accounts written off (net) (82 ) Other adjustments (17 ) Balance, December 31, 2017 456 Provision charged to income 54 Doubtful accounts written off (net) (37 ) Other adjustments 15 Balance, December 31, 2018 $ 488 Future Income Tax Benefits—Valuation allowance: Balance, December 31, 2015 $ 591 Additions charged to income tax expense 32 Reductions credited to income tax expense (61 ) Other adjustments (17 ) Balance, December 31, 2016 545 Additions charged to income tax expense 45 Reductions credited to income tax expense (29 ) Other adjustments 21 Balance, December 31, 2017 582 Additions charged to income tax expense 61 Additions charged to goodwill, due to acquisitions 25 Reductions credited to income tax expense (25 ) Other adjustments (38 ) Balance, December 31, 2018 $ 605 |
Business Acquisitions, Disposit
Business Acquisitions, Dispositions, Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Note 2: Business Acquisitions, Dispositions, Goodwill and Intangible Assets | BUSINESS ACQUISITIONS, DISPOSITIONS, GOODWILL AND INTANGIBLE ASSETS Business Acquisitions. Our investments in businesses net of cash acquired in 2018 , 2017 and 2016 totaled $31,142 million (including debt assumed of $7,784 million and stock issued of $7,960 million ), $231 million and $712 million (including debt assumed of $2 million ), respectively. Our investments in businesses in 2018 primarily consisted of the acquisition of Rockwell Collins, Inc. (Rockwell Collins) . Our investments in businesses in 2017 consisted of a number of small acquisitions, primarily in our commercial businesses. Our investments in businesses in 2016 consisted of the acquisition of a majority interest in an Italian heating products and services company by Carrier, the acquisition of a Japanese services company by Otis and a number of small acquisitions, primarily in our commercial businesses. On November 26, 2018 , we completed the acquisition of Rockwell Collins, a leader in aviation and high-integrity solutions for commercial and military customers as well as leading-edge avionics, flight controls, aircraft interior and data connectivity solutions. Under the terms of the merger agreement, each share of common stock, par value $0.01 per share, of Rockwell Collins issued and outstanding immediately prior to the effective time of the Merger (other than shares held by Rockwell Collins, the Company, Merger Sub or any of their respective wholly owned subsidiaries) was converted into the right to receive (1) $93.33 in cash, without interest, and (2) 0.37525 of a share of Company common stock, par value $1.00 per share, and cash in lieu of fractional shares (together, the “Merger Consideration”), less any applicable withholding taxes. The total aggregate consideration payable in the Merger was $15.5 billion in cash ( $14.9 billion net of cash acquired) and 62.2 million shares of Company common stock. In addition, $7.8 billion of Rockwell Collins debt was outstanding at the time of the Merger. This equated to a total enterprise value of $30.6 billion , including the $7.8 billion of Rockwell Collins' outstanding debt. (dollars in millions) Amount Cash consideration paid for Rockwell Collins outstanding common stock & equity awards 1 $ 15,533 Fair value of UTC common stock issued for Rockwell Collins outstanding common stock & equity awards 7,960 Total consideration transferred $ 23,493 1 Cash consideration paid for Rockwell Collins net of cash acquired is $14.9 billion . The cash consideration utilized for the Rockwell Collins acquisition was partially financed through the previously disclosed issuance of $11 billion aggregate principal notes on August 16, 2018 for net proceeds of $10.9 billion . For the remainder of the cash consideration, we utilized repatriated cash and cash equivalents and cash flow generated from operating activities. Preliminary Allocation of Consideration Transferred to Net Assets Acquired: The following amounts represent the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed from the Rockwell Collins acquisition. The final determination of the fair value of certain assets and liabilities will be completed up to a one year measurement period from the date of acquisition as required by FASB ASC Topic 805, “Business Combinations” . As of December 31, 2018, the valuation studies necessary to determine the fair market value of the assets acquired and liabilities assumed are preliminary, including the validation of the underlying cash flows used to determine the fair value of the identified intangible assets. The size and breadth of the Rockwell Collins acquisition necessitates use of the one year measurement period to adequately analyze all the factors used in establishing the asset and liability fair values as of the acquisition date, including, but not limited to, intangible assets, inventory, real property, leases, deferred tax liabilities related to the unremitted earnings of foreign subsidiaries, certain reserves and the related tax impacts of any changes made. Any potential adjustments made could be material in relation to the preliminary values presented below: (dollars in millions) Cash and cash equivalents $ 640 Accounts receivable, net 1,660 Inventory, net 1,527 Contract assets, current 302 Other assets, current 297 Future income tax benefits 41 Fixed assets, net 1,691 Intangible assets: Customer relationships 8,320 Tradenames/trademarks 1,870 Developed technology 600 Other assets 192 Total identifiable assets acquired 17,140 Short-term borrowings 2,254 Accounts payable 378 Accrued liabilities 1,679 Contract liabilities, current 301 Long-term debt 5,530 Future pension and postretirement benefit obligation 502 Other long-term liabilities 3,465 Noncontrolling interest 6 Total liabilities acquired 14,115 Total identifiable net assets 3,025 Goodwill 20,468 Total consideration transferred $ 23,493 In order to allocate the consideration transferred for Rockwell Collins, the fair values of all identifiable assets and liabilities were established. For accounting and financial reporting purposes, fair value is defined under FASB ASC Topic 820, “Fair Value Measurements and Disclosures” as the price that would be received upon sale of an asset or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. Use of different estimates and judgments could yield different results. Fair value adjustments to Rockwell Collins' identified assets and liabilities resulted in an increase in inventory and fixed assets of $282 million and $269 million , respectively. In determining the fair value of identifiable assets acquired and liabilities assumed, a review was conducted for any significant contingent assets or liabilities existing as of the acquisition date. The preliminary assessment did not note any significant contingencies related to existing legal or government action. The fair values of the customer relationship and related program intangible assets, which include the related aerospace program OEM and aftermarket cash flows, were determined by using an “income approach." Under this approach, the net earnings attributable to the asset or liability being measured are isolated using the discounted projected net cash flows. These projected cash flows are isolated from the projected cash flows of the combined asset group over the remaining economic life of the intangible asset or liability being measured. Both the amount and the duration of the cash flows are considered from a market participant perspective. Our estimates of market participant net cash flows considered historical and projected pricing, remaining developmental effort, operational performance including company specific synergies, aftermarket retention, product life cycles, material and labor pricing, and other relevant customer, contractual and market factors. Where appropriate, the net cash flows are probability-adjusted to reflect the uncertainties associated with the underlying assumptions, as well as the risk profile of the net cash flows utilized in the valuation. The probability-adjusted future cash flows are then discounted to present value using an appropriate discount rate. The customer relationship and related program intangible assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of the underlying programs of 10 to 20 years. The developed technology intangible asset is being amortized over the economic pattern of benefit. The fair value of the tradename intangible assets were determined utilizing the relief from royalty method which is a form of the income approach. Under this method, a royalty rate based on observed market royalties is applied to projected revenue supporting the tradename and discounted to present value using an appropriate discount rate. The tradename intangible assets have been determined to have an indefinite life. The Intangible assets included above consist of the following: (dollars in millions) Estimated Fair Value Estimated Life Acquired customer relationships $ 8,320 10-20 years Acquired tradenames/trademarks 1,870 indefinite Acquired developed technology 600 15 years $ 10,790 We also identified customer contractual obligations on certain programs with terms less favorable than could be realized in market transactions as of the acquisition date. We measured these liabilities under the measurement provisions of FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” which is based on the price to transfer the obligation to a market participant at the measurement date, assuming that the liability will remain outstanding in the marketplace. Based on the estimated net cash outflows of the programs plus a reasonable contracting profit margin required to transfer the contracts to market participants, we recorded assumed liabilities of approximately $970 million . These liabilities will be liquidated in accordance with the underlying pattern of obligations, as reflected by the expenses incurred on the contracts. Total consumption of the contractual obligation for the next five years is expected to be as follows: $148 million in 2019, $138 million in 2020, $130 million in 2021, $125 million in 2022, and $116 million in 2023. Acquisition-Related Costs: Acquisition-related costs have been expensed as incurred. In 2018 and 2017, approximately $112 million and $39 million , respectively, of transaction and integration costs have been incurred. These costs were recorded in Selling, general and administrative expenses within the Consolidated Statement of Operations. In connection with the financing of the Rockwell Collins acquisition, approximately $46 million of net interest costs (interest expense of $114 million and interest income of $68 million ) have been recorded in 2018. Supplemental Pro-Forma Data: Rockwell Collins' results of operations have been included in UTC’s financial statements for the period subsequent to the completion of the acquisition on November 26, 2018. Rockwell Collins contributed sales of approximately $778 million and operating profit of approximately $11 million for the period from the completion of the acquisition through December 31, 2018. The following unaudited supplemental pro-forma data presents consolidated information as if the acquisition had been completed on January 1, 2017. The pro-forma results were calculated by combining the results of UTC with the stand-alone results of Rockwell Collins for the pre-acquisition periods, which were adjusted to account for certain costs which would have been incurred during this pre-acquisition period: Year Ended December 31, (dollars in millions, except per share amounts; shares in millions) 2018 2017 Net sales $ 74,136 $ 68,033 Net income attributable to common shareowners from continuing operations $ 6,064 $ 4,662 Basic earnings per share of common stock from continuing operations $ 6.82 $ 5.45 Diluted earnings per share of common stock from continuing operations $ 6.76 $ 5.39 The unaudited supplemental pro-forma data above includes the following significant adjustments made to account for certain costs which would have been incurred if the acquisition had been completed on January 1, 2017, as adjusted for the applicable tax impact. As our acquisition of Rockwell Collins was completed on November 26, 2018, the pro-forma adjustments in the table below only include the required adjustments through November 26, 2018: Year Ended December 31, (dollars in millions) 2018 2017 Amortization of inventory and fixed asset fair value adjustment 1 $ 58 $ (192 ) Amortization of acquired Rockwell Collins intangible assets, net 2 (193 ) (202 ) Utilization of contractual customer obligation 3 16 116 UTC/Rockwell fees for advisory, legal, accounting services 4 212 (212 ) Interest expense incurred on acquisition financing, net 5 (199 ) (234 ) Elimination of capitalized pre-production engineering amortization 6 63 42 Adjustment to net periodic pension cost 7 42 34 Adjustment to reflect the adoption of ASC 606 8 106 — Elimination of entities held for sale 9 (47 ) (35 ) Inclusion of B/E Aerospace 10 — (51 ) $ 58 $ (734 ) 1 Reflects the amortization expense on the Rockwell Collins inventory step up which would be completed within the first two quarters of 2017 and eliminated the inventory step-up amortization recorded by UTC in 2018. Additionally, this adjustment reflects the amortization of the fixed asset fair value adjustment as of the acquisition date. 2 Reflects the additional amortization of the acquired Rockwell Collins intangible assets recognized at fair value in purchase accounting and eliminates the historical Rockwell Collins intangible asset amortization expense. 3 Reflects the additional amortization of liabilities recognized for acquired contracts with terms less favorable than could be realized in market transactions as of the acquisition date and eliminates Rockwell Collins historical amortization of these liabilities. 4 Reflects the elimination of transaction-related fees incurred by UTC and Rockwell Collins in connection with the acquisition and assumes all of the fees were incurred during the first quarter of 2017. 5 Reflects the additional interest expense incurred on debt to finance our acquisition of Rockwell Collins and reduces interest expense for the debt fair value adjustment which would have been amortized. 6 Reflects the elimination of capitalized pre-production engineering amortization to conform to UTC policy. 7 Reflects adjustments for the elimination of amortization of prior service cost and actuarial loss amortization, which was recorded by Rockwell Collins, as a result of fair value purchase accounting, net of the impact of the revised pension and post-retirement benefit (expense) as determined under UTC’s plan assumptions. 8 Reflects adjustments to Rockwell Collins revenue recognition as if they adopted the New Revenue Standard as of January 1, 2018 and primarily relates to deferral of revenue recognized on OEM product engineering and development, partially offset by changes in timing of sales recognition for contracts requiring an over time method of revenue recognition. 9 Reflects the elimination of entities required to be sold for regulatory approvals. 10 Reflects adjustments to include the results and related adjustments for B/E Aerospace as if it had been acquired by Rockwell Collins on January 1, 2017. The unaudited supplemental pro-forma financial information does not reflect the potential realization of cost savings relating to the integration of the two companies. Further, the pro-forma data should not be considered indicative of the results that would have occurred if the acquisition and related financing had been consummated on January 1, 2017, nor are they indicative of future results. Dispositions. On June 21, 2018, Carrier completed its sale of Taylor Company for proceeds of $1.0 billion resulting in a pre-tax gain of $799 million ( $591 million after tax). In accordance with conditions imposed for regulatory approval of the Rockwell Collins acquisition, Rockwell Collins must dispose of certain businesses. These businesses have been held separate from UTC’s and Rockwell Collins' ongoing businesses pursuant to regulatory requirements. Definitive agreements to sell each of the businesses were entered into prior to the completion of UTC's acquisition of Rockwell Collins. The related assets and liabilities of these businesses have been accounted for as held for sale at fair value less cost to sell. As of December 31, 2018, assets of $175 million are included within Other assets, current and liabilities of $40 million are included within Accrued liabilities on the Consolidated Balance Sheet. The major classes of assets and liabilities primarily include net Inventory of $51 million and net Fixed assets of $37 million . On January 18, 2019, Rockwell Collins completed the sale of one of the businesses which was held for sale as of December 31, 2018 for approximately $20 million . The remaining two businesses are expected in 2019 and are subject to regulatory approvals and other customary closing conditions. On November 26, 2018, the Company announced its intention to separate into three independent companies. Following the separations, the Company will operate as an aerospace company comprised of Collins Aerospace Systems and the Pratt & Whitney businesses, and Otis and Carrier are each expected to become independent companies. The proposed separations are expected to be effected through spin-offs of Otis and Carrier that are intended to be tax-free for the Company’s shareowners for U.S. federal income tax purposes, and are expected to be completed by mid-year 2020. Separation of Otis and Carrier from UTC via spin-off transactions will be subject to the satisfaction of customary conditions, including, among others, final approval by the Company’s Board of Directors, receipt of tax rulings in certain jurisdictions and/or a tax opinion from external counsel (as applicable), the filing with the Securities and Exchange Commission (SEC) and effectiveness of Form 10 registration statements, and satisfactory completion of financing. Goodwill. Changes in our goodwill balances for the year ended in 2018 were as follows: (dollars in millions) Balance as of January 1, 2018 Goodwill resulting from business combinations Foreign currency translation and other Balance as of December 31, 2018 Otis $ 1,737 $ 7 $ (56 ) $ 1,688 Carrier 10,009 194 (368 ) 9,835 Pratt & Whitney 1,511 58 (2 ) 1,567 Collins Aerospace Systems 14,650 20,468 (117 ) 35,001 Total Segments 27,907 20,727 (543 ) 48,091 Eliminations and other 3 18 — 21 Total $ 27,910 $ 20,745 $ (543 ) $ 48,112 Collins Aerospace Systems goodwill increased $20.4 billion principally as a result of the Rockwell Collins acquisition. The goodwill results from the workforce acquired with the business as well as the significant synergies that are expected to be realized through the consolidation of manufacturing facilities and overhead functions. No amount of this goodwill is deductible for tax purposes. The goodwill acquired will be allocated to the six reporting units within the Collins Aerospace Systems segment. The $543 million net reduction in goodwill within Foreign Currency Translation and Other includes a $151 million reduction of goodwill attributable to Carrier's sale of Taylor Company. The $18 million increase in goodwill within Eliminations and other is due to an acquisition of a digital analytics company. Intangible Assets. Identifiable intangible assets are comprised of the following: 2018 2017 (dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Service portfolios $ 2,164 $ (1,608 ) $ 2,178 $ (1,534 ) Patents and trademarks 361 (236 ) 399 (233 ) Collaboration intangible assets 4,509 (649 ) 4,109 (384 ) Customer relationships and other 22,525 (4,560 ) 13,352 (4,100 ) 29,559 (7,053 ) 20,038 (6,251 ) Unamortized: Trademarks and other 3,918 — 2,096 — Total $ 33,477 $ (7,053 ) $ 22,134 $ (6,251 ) Customer relationship intangible assets include payments made to our customers to secure certain contractual rights. Such payments are capitalized when distinct rights are obtained and sufficient incremental cash flows to support the recoverability of the assets have been established. Otherwise, the applicable portion of the payments is expensed. We amortize these intangible assets based on the underlying pattern of economic benefit, which may result in an amortization method other than straight-line. In the aerospace industry, amortization based on the pattern of economic benefit generally results in lower amortization expense during the development period with amortization expense increasing as programs enter full production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined, a straight-line amortization method may be used. We classify amortization of such payments as a reduction of sales. The acquired intangible assets related to Rockwell Collins are primarily being amortized on a straight-line basis which approximates the pattern of economic benefit. Amortization of intangible assets was $976 million , $834 million and $778 million in 2018 , 2017 and 2016 , respectively. The collaboration intangible assets are amortized based upon the pattern of economic benefits as represented by the underlying cash flows. The following is the expected amortization of total intangible assets for 2019 through 2023 , which reflects the pattern of expected economic benefit on certain aerospace intangible assets: (dollars in millions) 2019 2020 2021 2022 2023 Amortization expense $ 1,476 $ 1,438 $ 1,456 $ 1,464 $ 1,670 |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 3: REVENUE RECOGNITION ASU 2014-09 and its related amendments (collectively, the New Revenue Standard) are effective for reporting periods beginning after December 15, 2017. We adopted the New Revenue Standard effective January 1, 2018 and elected the modified retrospective approach. The results for periods before 2018 were not adjusted for the new standard and the cumulative effect of the change in accounting was recognized through retained earnings at the date of adoption. The New Revenue Standard changed the revenue recognition practices for a number of revenue streams across our businesses, although the most significant impacts are concentrated in our aerospace units. Several businesses, which previously accounted for revenue on a point in time basis are now required to use an over-time model when their contracts meet one or more of the mandatory criteria established in the New Revenue Standard. Revenue is now recognized based on an over-time basis using an input method for repair contracts within Otis and Carrier; certain U.S. Government and commercial aerospace equipment contracts; and aerospace aftermarket service work. We measure progress toward completion for these contracts using costs incurred to date relative to total estimated costs at completion. Incurred costs represent work performed, which corresponds with and best depicts the transfer of control to the customer. For these businesses, unrecognized sales related to the satisfied portion of the performance obligations of contracts in process as of the date of adoption of approximately $220 million were recorded through retained earnings. The ongoing effect of recording revenue on an over-time basis within these businesses is not expected to be materially different than the previous revenue recognition method. In addition to the foregoing, our aerospace businesses, in certain cases, also changed the timing of manufacturing cost recognition and certain engineering and development costs. In most circumstances, our commercial aerospace businesses identify the performance obligation as the individual OEM unit; revenue and cost to manufacture each unit are recognized upon OEM unit delivery. Under the prior accounting, the unit of accounting was the contract and early-contract OEM unit costs in excess of the average unit costs expected over the contract were capitalized and amortized over lower-cost units later in the contract. With the adoption of the New Revenue Standard, deferred unit costs in excess of the contract average of $438 million as of January 1, 2018 were eliminated through retained earnings, and as such, will not be amortized into future earnings. Under the New Revenue Standard, costs incurred for engineering and development of aerospace products under contracts with customers must be capitalized as contract fulfillment costs, to the extent recoverable from the associated contract margin, and subsequently amortized as the OEM products are delivered to the customer. Under prior accounting, we generally expensed costs of engineering and development of aerospace products. The new standard also requires that customer funding of OEM product engineering and development be deferred in instances where economic benefit does not transfer to the customer and recognized as revenue when the OEM products are delivered. Engineering and development costs which do not qualify for capitalization as contract fulfillment costs are expensed as incurred. Prior to the New Revenue Standard, any customer funding received for such development efforts was recognized when earned, with the corresponding costs recognized as cost of sales. With the adoption of the New Revenue Standard, we capitalized engineering and development costs of approximately $700 million as contract fulfillment cost assets through retained earnings as of January 1, 2018. We also established previously recognized customer funding of approximately $850 million as a contract liability through retained earnings as of the adoption date. The New Revenue Standard also requires disclosure of remaining performance obligations, which is a concept that is similar to that of backlog. Beginning in 2018, we replaced our definition of backlog with that of remaining performance obligations under the New Revenue Standard. We have historically included in backlog engine orders from airlines for which such purchase orders have not yet been received from the aircraft manufacturer. Effective with the adoption of the New Revenue Standard, we will no longer include in backlog airline engine orders for which we have not yet received the associated firm manufacturing purchase order. The New Revenue Standard had an immaterial impact on our 2018 net income. Adoption of the New Revenue Standard has resulted in Statement of Operations classification changes between Net Sales, Cost of sales, Research & development, and Other income. The New Revenue Standard also resulted in the establishment of Contract asset and Contract liability balance sheet accounts, and in the reclassification of balances to these new accounts from Accounts receivable, Inventories and contracts in progress, net, and Accrued liabilities. In addition to the following disclosures, Note 19 provides incremental disclosures required by the New Revenue Standard, including disaggregation of revenue into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following schedules quantify the impact of the New Revenue Standard on the statement of operations for the year ended December 31, 2018 . The effect of the new standard represents the increase (decrease) in the line item based on the adoption of the New Revenue Standard. (dollars in millions) Year Ended December 31, 2018, under previous standard 1 Effect of the New Revenue Standard Year Ended December 31, 2018 as reported Net Sales: Product sales $ 45,128 $ 306 $ 45,434 Service sales 20,821 246 21,067 65,949 552 66,501 Costs and Expenses: Cost of products sold 36,481 273 36,754 Cost of services sold 13,068 163 13,231 Research and development 2,549 (87 ) 2,462 Selling, general and administrative 7,066 — 7,066 59,164 349 59,513 Other income, net 1,573 (8 ) 1,565 Operating profit 8,358 195 8,553 Non-service pension (benefit) (765 ) — (765 ) Interest expense, net 1,038 — 1,038 Income from operations before income taxes 8,085 195 8,280 Income tax expense 2,577 49 2,626 Net income from operations 5,508 146 5,654 Less: Noncontrolling interest in subsidiaries' earnings from operations 380 5 385 Net income attributable to common shareowners $ 5,128 $ 141 $ 5,269 1 Includes the as reported results of Rockwell Collins. Because Rockwell Collins adopted the New Revenue Standard prior to the merger, its reported results have been excluded from the quantification of the effect of the New Revenue Standard shown above for the period from November 26, 2018 through December 31, 2018. The New Revenue Standard resulted in an increase to Product and Service sales and Cost of products and services sold primarily due to the change to an over-time revenue model for certain U.S Government and commercial aerospace equipment contracts, and aerospace aftermarket service work at Pratt & Whitney and Collins Aerospace Systems. The New Revenue Standard also resulted in an increase in Cost of products sold primarily related to the timing of manufacturing cost recognition on early-contract OEM units sold, with costs in excess of the contract average unit costs recorded through Cost of products sold. The lower amounts of research and development expense recognized under the New Revenue Standard reflect the capitalization of costs of engineering and development of aerospace products as contract fulfillment costs under contracts with customers to the extent recoverable. The following schedule quantifies the impact of the New Revenue Standard on our balance sheet as of December 31, 2018 . (dollars in millions) December 31, 2018 under previous standard 1 Effect of the New Revenue Standard December 31, 2018 as reported Assets Accounts receivable, net $ 15,636 $ (1,365 ) $ 14,271 Contract assets, current 331 3,155 3,486 Inventories 12,169 (2,086 ) 10,083 Other assets, current 1,519 (8 ) 1,511 Future income tax benefits 1,614 32 1,646 Intangible assets, net 26,495 (71 ) 26,424 Other assets 6,056 1,150 7,206 Liabilities and Equity Accrued liabilities $ 15,522 $ (5,299 ) $ 10,223 Contract liabilities, current 345 5,375 5,720 Other long term liabilities 15,841 1,073 16,914 Noncontrolling interest 2,158 6 2,164 Retained earnings 58,162 (339 ) 57,823 1 Includes the as reported balance sheet amounts of Rockwell Collins. Because Rockwell Collins adopted the New Revenue Standard prior to the merger, its reported balance sheet amounts have been excluded from the quantification of the effect of the New Revenue Standard shown above. The decrease in Retained earnings of $339 million in the table above reflects $480 million of adjustments to the balance sheet as of January 1, 2018, resulting from the adoption of the New Revenue Standard and $141 million higher reported net income under the New Revenue Standard during 2018. The declines in Accounts receivable, net, Inventories, Other assets, current, and Intangible assets, net, reflect reclassifications to contract assets, and specifically for Inventories, earlier recognition of costs of products sold for contracts requiring an over-time method of revenue recognition. The increase in Other assets reflects the establishment of non-current contract assets and contract fulfillment cost assets. Capitalized net contract fulfillment costs as of December 31, 2018 are $914 million . The decline in accrued liabilities is primarily due to the reclassification of payments from customers in advance of work performed as contract liabilities. The Other long term liabilities increase primarily reflects the establishment of non-current contract liabilities for certain customer funding of OEM product engineering and development, which will be recognized as revenue when the OEM products are delivered to the customer. 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 December 31, 2018 are as follows: (dollars in millions) December 31, 2018 Contract assets, current $ 3,486 Contract assets, noncurrent (included within Other assets) 1,142 Total contract assets 4,628 Contract liabilities, current (5,720 ) Contract liabilities, noncurrent (included within Other long-term liabilities) (5,069 ) Total contract liabilities (10,789 ) Net contract liabilities $ (6,161 ) We established contract assets of $3,609 million in connection with our adoption of the New Revenue Standard on January 1, 2018. Contract assets increased $1,019 million from January 1, 2018 to December 31, 2018 as a result of the acquisition of Rockwell Collins ( $308 million ) and due to revenue recognition in excess of customer billings, primarily on Pratt & Whitney commercial aftermarket and military engines contracts. We established contract liabilities of $9,974 million in connection with our adoption of the New Revenue Standard. Contract liabilities increased $815 million from January 1, 2018 through December 31, 2018, as a result of the acquisition of Rockwell Collins ( $313 million ) and due to customer billings in excess of revenue on Otis new equipment contracts and on Pratt & Whitney commercial aftermarket contracts. We recognized revenue of $4,211 million related to contract liabilities as of January 1, 2018. Remaining performance obligations ("RPO") are the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied. As of December 31, 2018 , our total RPO is approximately $115.5 billion . Of this total, we expect approximately 46% will be recognized as sales over the following 24 months. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Text Block | EARNINGS PER SHARE (dollars in millions, except per share amounts; shares in millions) 2018 2017 2016 Net income attributable to common shareowners: Net income from continuing operations $ 5,269 $ 4,552 $ 5,065 Net loss from discontinued operations — — (10 ) Net income attributable to common shareowners $ 5,269 $ 4,552 $ 5,055 Basic weighted average number of shares outstanding 800.4 790.0 818.2 Stock awards and equity units (share equivalent) 9.7 9.1 7.9 Diluted weighted average number of shares outstanding 810.1 799.1 826.1 Earnings Per Share of Common Stock—Basic: Net income from continuing operations $ 6.58 $ 5.76 $ 6.19 Net loss from discontinued operations — — (0.01 ) Net income attributable to common shareowners 6.58 5.76 6.18 Earnings Per Share of Common Stock—Diluted: Net income from continuing operations $ 6.50 $ 5.70 $ 6.13 Net loss from discontinued operations — — (0.01 ) Net income attributable to common shareowners 6.50 5.70 6.12 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 2018 , 2017 and 2016 , there were 5.1 million , 5.9 million and 14.5 million anti-dilutive stock awards excluded from the computation, respectively. |
Commercial Aerospace Industry A
Commercial Aerospace Industry Assets and Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Other Commitments [Abstract] | |
Commercial Aerospace Industry Assets and Commitments | NOTE 5: COMMERCIAL AEROSPACE INDUSTRY ASSETS AND COMMITMENTS We have receivables and other financing assets with commercial aerospace industry customers totaling $11,695 million and $9,477 million at December 31, 2018 and 2017 , respectively. These include customer financing assets related to commercial aerospace industry customers, consisting of products under lease of $2,736 million and $1,913 million , and notes and leases receivable of $299 million and $652 million , at December 31, 2018 and 2017 , respectively. Aircraft financing commitments, in the form of debt or lease financing, are provided to commercial aerospace customers. The extent to which the financing commitments will be utilized is not currently known, since customers may be able to obtain more favorable terms from other financing sources. We may also arrange for third-party investors to assume a portion of these commitments. If financing commitments are exercised, debt financing is generally secured by assets with fair market values equal to or exceeding the financed amounts consistent with market terms and conditions. We may also lease aircraft and subsequently sublease the aircraft to customers under long-term non-cancelable operating leases. Our financing commitments with customers are contingent upon maintenance of certain levels of financial condition by the customers. We have also made residual value and other guarantees related to various commercial aerospace customer financing arrangements. The estimated fair market values of the guaranteed assets equal or exceed the value of the related guarantees, net of existing reserves. We have residual value and other guarantees of $348 million as of December 31, 2018 . Refer to Note 17 to the Consolidated Financial Statements for additional discussion on guarantees. We also have other contractual commitments, including commitments to secure certain contractual rights to provide product on new aircraft platforms, which are included in "Other commercial aerospace commitments" in the table below. Payments made on these contractual commitments are included within other intangible assets and are to be amortized over the term of underlying economic benefit. Our commercial aerospace financing and other contractual commitments as of December 31, 2018 were approximately $ 15.5 billion . We have entered into certain collaboration arrangements, which may include participation by our collaboration partners in these commitments. The following is the expected maturity of commercial aerospace industry assets and commitments as of December 31, 2018 : (dollars in millions) Committed 2019 2020 2021 2022 2023 Thereafter Notes and leases receivable $ 299 $ 25 $ 97 $ 53 $ 22 $ 23 $ 79 Commercial aerospace financing commitments $ 4,556 $ 862 $ 709 $ 1,001 $ 873 $ 640 $ 471 Other commercial aerospace commitments 10,914 815 706 673 708 585 7,427 Collaboration partners' share (5,261 ) (468 ) (448 ) (562 ) (513 ) (412 ) (2,858 ) Total commercial commitments $ 10,209 $ 1,209 $ 967 $ 1,112 $ 1,068 $ 813 $ 5,040 In connection with our 2012 agreement to acquire Rolls-Royce's ownership and collaboration interests in 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, included in "Other commercial aerospace commitments" in the table above, are being capitalized as collaboration intangible assets. We have long-term aftermarket maintenance contracts with commercial aerospace industry customers for which revenue is recognized over-time in proportion to actual costs incurred relative to total expected costs to be incurred over the respective contract periods. Billings, however, are typically based on factors such as aircraft or engine flight hours. The timing differences between the billings and the maintenance costs incurred generates both Contract assets and Contract liabilities, previously referred to as unbilled receivables and deferred revenue. Additionally, we have other contracts with commercial aerospace industry customers which can result in the generation of Contract assets and Contract liabilities. Contract assets related to long-term aftermarket and other contracts totaled $2,247 million at December 31, 2018 and are included in "Contract assets, current" and "Other assets" in the accompanying Consolidated Balance Sheet. Unbilled receivables totaled $1,109 million at December 31, 2017 and are included in “Accounts receivable” and “Other Assets” in the accompanying Consolidated Balance Sheet. Contract liabilities totaled $7,083 million and are included in "Contract liabilities, current" and "Other long-term liabilities" in the accompanying Consolidated Balance Sheet. Deferred revenue totaled $5,048 million at December 31, 2017 and are included in "Accrued liabilities" and "Other long-term liabilities" in the accompanying Consolidated Balance Sheet. In connection with the adoption of the New Revenue Standard, costs for engineering and development of aerospace products have been capitalized as contract fulfillment costs to the extent recoverable. Contract fulfillment costs related to commercial aerospace industry customers is $830 million as of December 31, 2018 and is included in "Other Assets" in the accompanying Consolidated Balance Sheet. Reserves related to aerospace receivables and financing assets were $245 million and $175 million at December 31, 2018 and 2017 , respectively. Reserves related to financing commitments and guarantees were $15 million and $23 million at December 31, 2018 and 2017 , respectively. In addition, in connection with the acquisition of Rockwell Collins in 2018 and Goodrich in 2012, we recorded assumed liabilities of approximately $970 million and $2.2 billion , respectively related to customer contractual obligations on certain programs with terms less favorable than could be realized in market transactions as of the acquisition date. These liabilities are being liquidated in accordance with the underlying pattern of obligations, as reflected by the net cash outflows incurred on the contracts. Total consumption of the contractual obligations for the years ended December 31, 2018 and 2017 was approximately $252 million and $217 million , respectively. The balance of the contractual obligations at December 31, 2018 was $1,690 million , with future consumption expected to be as follows: $381 million in 2019 , $295 million in 2020 , $217 million in 2021 , $163 million in 2022 , $134 million in 2023 and $500 million thereafter. |
Inventories and Contracts in Pr
Inventories and Contracts in Progress | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories and Contracts in Progress | INVENTORIES & CONTRACTS IN PROGRESS, NET (dollars in millions) 2018 2017 Raw materials $ 3,052 $ 2,038 Work-in-process 2,673 3,366 Finished goods 4,358 3,845 Contracts in progress — 10,205 10,083 19,454 Less: Progress payments, secured by lien, on U.S. Government contracts — (236 ) Billings on contracts in progress — (9,337 ) $ 10,083 $ 9,881 Raw materials, work-in-process and finished goods are net of valuation reserves of $1,270 million and $1,107 million as of December 31, 2018 and 2017 , respectively. Contracts in progress principally relate to elevator and escalator contracts and include costs of manufactured components, accumulated installation costs and estimated earnings on incomplete contracts. Upon adoption of the New Revenue Standard, Contracts in progress have been reclassified to Contract assets. Inventories as of December 31, 2017 included capitalized contract development costs of $127 million related to certain aerospace programs at Collins Aerospace Systems. Upon adoption of the New Revenue Standard, these costs are recorded as contract fulfillment costs included in Other assets. Under prior accounting within commercial aerospace, the unit of accounting for certain contracts was the contract, and early-contract OEM unit costs in excess of the average unit costs expected over the contract were capitalized and amortized over lower-cost units later in the contract. As of December 31, 2017 , inventory included $438 million of such capitalized amounts. As described in the "Revenue Recognition" section of Note 1, upon adoption of the New Revenue Standard, these amounts are no longer included in inventory. Our sales contracts in many cases are long-term contracts expected to be performed over periods exceeding 12 months. At December 31, 2018 and 2017 , approximately 32% and 63% respectively, of total inventories and contracts in progress have been acquired or manufactured under such long-term contracts, with approximately 28% and 38% scheduled for delivery within the succeeding 12 months for 2018 and 2017 , respectively. The decline in percentages above is due to the reclassification of Contracts in progress to Contract assets upon adoption of the New Revenue Standard. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | FIXED ASSETS (dollars in millions) Estimated 2018 2017 Land $ 425 $ 412 Buildings and improvements 12-40 years 6,486 5,727 Machinery, tools and equipment 3-20 years 15,119 13,476 Other, including assets under construction 2,054 1,749 24,084 21,364 Accumulated depreciation (11,787 ) (11,178 ) $ 12,297 $ 10,186 The increase in fixed assets is primarily driven by the acquisition of Rockwell Collins as described in Note 2 to the Consolidated Financial Statements. Depreciation expense was $1,240 million in 2018 , $1,178 million in 2017 and $1,105 million in 2016 . |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES (dollars in millions) 2018 2017 Advances on sales contracts and service billings $ — $ 4,547 Accrued salaries, wages and employee benefits 2,074 1,741 Service and warranty accruals 754 629 Interest payable 637 439 Litigation and contract matters 461 435 Income taxes payable 460 285 Accrued property, sales and use taxes 277 258 Canadian government settlement - current portion 34 217 Accrued restructuring costs 249 212 Accrued workers compensation 142 204 Liabilities held for sale 40 — Other 5,095 3,349 $ 10,223 $ 12,316 The decline in advances on sales contracts and service billings is due to reclassification of amounts to Contract liabilities, current upon adoption of the New Revenue Standard. On December 30, 2015, P&WC and federal and provincial Canadian government agencies entered into amendments of certain government research and development support arrangements. Under the amendments, P&WC agreed to make four annual payments of approximately CAD 327 million (approximately $243 million at December 2018), commencing in the first quarter of 2016, to fully settle and terminate P&WC's future contractual obligations to pay royalties to these agencies that had previously been contingent upon future engine deliveries and P&WC sales; to maintain its commitments to perform certain assembly, test and manufacturing operations in Canada; and to provide support of innovation and research and development through initiatives with post-secondary institutions and key industry associations in Canada over a 14 year period. As a result of the amendments to these contractual arrangements, Pratt & Whitney recorded a charge and related discounted obligation of $867 million in the fourth quarter of 2015. The current portion of the Canadian government settlement included in the table above represents the final payment under this agreement to be paid in 2019. There were no Other long-term liabilities related to this settlement in the accompanying Consolidated Balance Sheet as of December 31, 2018 and approximately $256 million as of December 31, 2017. |
Borrowings and Lines of Credit
Borrowings and Lines of Credit | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings and Lines of Credit | BORROWINGS AND LINES OF CREDIT (dollars in millions) 2018 2017 Short-term borrowings: Commercial paper $ 1,257 $ 300 Other borrowings 212 92 Total short-term borrowings $ 1,469 $ 392 At December 31, 2018 , we had revolving credit agreements with various banks permitting aggregate borrowings of up to $4.35 billion pursuant to a $2.20 billion revolving credit agreement and a $2.15 billion multicurrency revolving credit agreement, both of which expire in August 2021 . Additionally, on November 26, 2018, we entered into a $1.5 billion revolving credit agreement, which will mature on May 25, 2019. As of December 31, 2018 , there were no borrowings on any of these agreements. The undrawn portions of these revolving credit agreements are also available to serve as backup facilities for the issuance of commercial paper. As of December 31, 2018 , our maximum commercial paper borrowing limit was $4.35 billion . Commercial paper borrowings at December 31, 2018 include approximately €750 million ( $858 million ) of euro-denominated commercial paper. We use our commercial paper borrowings for general corporate purposes, including the funding of potential acquisitions, pension contributions, debt refinancing, dividend payments and repurchases of our common stock. The need for commercial paper borrowings arises when the use of domestic cash for general corporate purposes exceeds the sum of domestic cash generation and foreign cash repatriated to the U.S. At December 31, 2018 , approximately $2.2 billion was available under short-term lines of credit with local banks at our various domestic and international subsidiaries. The weighted-average interest expense rates applicable to short-term borrowings and total debt were as follows: 2018 2017 Average interest expense rate - average outstanding borrowings during the year: Short-term borrowings 1.5 % 1.1 % Total debt 3.5 % 3.5 % Average interest expense rate - outstanding borrowings as of December 31: Short-term borrowings 1.2 % 2.3 % Total debt 3.5 % 3.5 % Long-term debt consisted of the following as of December 31: (dollars in millions) 2018 2017 6.800% notes due 2018 $ — $ 99 EURIBOR plus 0.80% floating rate notes due 2018 (€750 million principal value) 2 — 890 1.778% junior subordinated notes due 2018 — 1,100 LIBOR plus 0.350% floating rate notes due 2019 3 350 350 1.500% notes due 2019 1 650 650 1.950% notes due 2019 4 300 — EURIBOR plus 0.15% floating rate notes due 2019 (€750 million principal value) 2 858 890 5.250% notes due 2019 4 300 — 8.875% notes due 2019 271 271 4.875% notes due 2020 1 171 171 4.500% notes due 2020 1 1,250 1,250 1.900% notes due 2020 1 1,000 1,000 EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value) 2 858 — 8.750% notes due 2021 250 250 3.100% notes due 2021 4 250 — 3.350% notes due 2021 1 1,000 — LIBOR plus 0.650% floating rate notes due 2021 1,3 750 — 1.950% notes due 2021 1 750 750 1.125% notes due 2021 (€950 million principal value) 1 1,088 1,127 2.300% notes due 2022 1 500 500 2.800% notes due 2022 4 1,100 — 3.100% notes due 2022 1 2,300 2,300 1.250% notes due 2023 (€750 million principal value) 1 858 890 3.650% notes due 2023 1 2,250 — 3.700% notes due 2023 4 400 — 2.800% notes due 2024 1 800 800 3.200% notes due 2024 4 950 — 1.150% notes due 2024 (€750 million principal value) 1 858 — 3.950% notes due 2025 1 1,500 — 1.875% notes due 2026 (€500 million principal value) 1 573 593 2.650% notes due 2026 1 1,150 1,150 3.125% notes due 2027 1 1,100 1,100 3.500% notes due 2027 4 1,300 — 7.100% notes due 2027 141 141 6.700% notes due 2028 400 400 4.125% notes due 2028 1 3,000 — 7.500% notes due 2029 1 550 550 2.150% notes due 2030 (€500 million principal value) 1 573 — 5.400% notes due 2035 1 600 600 6.050% notes due 2036 1 600 600 6.800% notes due 2036 1 134 134 7.000% notes due 2038 159 159 6.125% notes due 2038 1 1,000 1,000 4.450% notes due 2038 1 750 — 5.700% notes due 2040 1 1,000 1,000 4.500% notes due 2042 1 3,500 3,500 4.800% notes due 2043 4 400 — 4.150% notes due 2045 1 850 850 3.750% notes due 2046 1 1,100 1,100 4.050% notes due 2047 1 600 600 4.350% notes due 2047 4 1,000 — 4.625% notes due 2048 1 1,750 — Project financing obligations 287 158 Other (including capitalized leases) 287 195 Total principal long-term debt 44,416 27,118 Other (fair market value adjustments, discounts and debt issuance costs) (348 ) (25 ) Total long-term debt 44,068 27,093 Less: current portion 2,876 2,104 Long-term debt, net of current portion $ 41,192 $ 24,989 1 We may redeem these notes at our option pursuant to their terms. 2 The three-month EURIBOR rate as of December 31, 2018 was approximately -0.309%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. 3 The three-month LIBOR rate as of December 31, 2018 was approximately 2.808%. 4 Rockwell Collins debt which remained outstanding following the Merger. The project financing obligations included in the table above are associated with the sale of rights to unbilled revenues related to the ongoing activity of an entity owned by Carrier. We had the following issuances of debt in 2018 and 2017 . (dollars in millions) Issuance Date Description of Notes Aggregate Principal Balance August 16, 2018: 3.350% notes due 2021 1 $ 1,000 3.650% notes due 2023 1 2,250 3.950% notes due 2025 1 1,500 4.125% notes due 2028 1 3,000 4.450% notes due 2038 1 750 4.625% notes due 2048 2 1,750 LIBOR plus 0.65% floating rate notes due 2021 1 750 May 18, 2018: 1.150% notes due 2024 3 € 750 2.150% notes due 2030 3 500 EURIBOR plus 0.20% floating rate notes due 2020 3 750 November 13, 2017: EURIBOR plus 0.15% floating rate notes due 2019 2 € 750 May 4, 2017: 1.900% notes due 2020 4 $ 1,000 2.300% notes due 2022 4 500 2.800% notes due 2024 4 800 3.125% notes due 2027 4 1,100 4.050% notes due 2047 4 600 1 The net proceeds received from these debt issuances were used to partially finance the cash consideration portion of the purchase price for Rockwell Collins and fees, expenses and other amounts related to the acquisition of Rockwell Collins. 2 The net proceeds from these debt issuances were used to fund the repayment of commercial paper and for other general corporate purposes. 3 The net proceeds received from these debt issuances were used for general corporate purposes. 4 The net proceeds received from these debt issuances were used to fund the repayment at maturity of our 1.800% notes due 2017, representing $1.5 billion in aggregate principal and other general corporate purposes. We made the following repayments of debt in 2018 and 2017 : (dollars in millions) Repayment Date Description of Notes Aggregate Principal Balance December 14, 2018 Variable-rate term loan due 2020 (1 month LIBOR plus 1.25%) 1 $ 482 May 4, 2018 1.778% junior subordinated notes $ 1,100 February 22, 2018 EURIBOR plus 0.80% floating rate notes € 750 February 1, 2018 6.80% notes $ 99 June 1, 2017 1.800% notes $ 1,500 1 This term loan was assumed in connection with the Rockwell Collins acquisition and subsequently repaid. The percentage of total short-term borrowings and long-term debt at variable interest rates was 10% and 9% at December 31, 2018 and 2017 , respectively. Interest rates on our commercial paper borrowings are considered variable due to their short-term duration and high-frequency of turnover. The average maturity of our long-term debt at December 31, 2018 is approximately 11 years . The schedule of principal payments required on long-term debt for the next five years and thereafter is: (dollars in millions) 2019 $ 2,876 2020 3,436 2021 4,151 2022 3,910 2023 3,523 Thereafter 26,520 Total $ 44,416 We have an existing universal shelf registration statement filed with the SEC for an indeterminate amount of debt and equity securities for future issuance, subject to our internal limitations on the amount of debt to be issued under this shelf registration statement. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | EQUITY A summary of the changes in each component of Accumulated other comprehensive (loss) income, net of tax for the years ended December 31, 2018 and 2017 is provided below: (dollars in millions) Foreign Currency Translation Defined Benefit Pension and Postretirement Plans Unrealized Gains (Losses) on Available-for- Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2016 $ (3,480 ) $ (5,045 ) $ 353 $ (162 ) $ (8,334 ) Other comprehensive income before reclassifications, net 540 78 3 264 885 Amounts reclassified, pre-tax (10 ) 529 (566 ) (39 ) (86 ) Tax (expense) benefit reclassified — (214 ) 215 9 10 Balance at December 31, 2017 $ (2,950 ) $ (4,652 ) $ 5 $ 72 $ (7,525 ) Other comprehensive loss before reclassifications, net (486 ) (1,736 ) — (307 ) (2,529 ) Amounts reclassified, pre-tax (2 ) 344 — (16 ) 326 Tax (expense) benefit reclassified (4 ) 326 — 78 400 ASU 2016-01 adoption impact — — (5 ) — (5 ) Balance at December 31, 2018 $ (3,442 ) $ (5,718 ) $ — $ (173 ) $ (9,333 ) In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Upon adoption, investments that do not result in consolidation and are not accounted for under the equity method generally must be carried at fair value, with changes in fair value recognized in net income. We had approximately $5 million of unrealized gains on these securities recorded in Accumulated other comprehensive loss in our Consolidated Balance Sheet as of December 31, 2017. We adopted this standard effective January 1, 2018, with these amounts recorded directly to retained earnings as of that date. Amounts reclassified that relate to our defined benefit pension and postretirement plans include the amortization of prior service costs and actuarial net losses recognized during each period presented. These costs are recorded as components of net periodic pension cost for each period presented (see Note 12 for additional details). Amounts reclassified that relate to unrealized gains (losses) on available-for-sale securities, pre-tax includes approximately $500 million of previously unrealized gains reclassified to other income as a result of sales of significant investments in available-for-sale securities in 2017, including Carrier's sale of investments in Watsco, Inc. All noncontrolling interests with redemption features, such as put options, that are not solely within our control (redeemable noncontrolling interests) are reported in the mezzanine section of the Consolidated Balance Sheet, between liabilities and equity, at the greater of redemption value or initial carrying value. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefits and Share-based Compensation, Noncash [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We sponsor numerous domestic and foreign employee benefit plans, which are discussed below. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . This ASU requires an employer to report the service cost component of net periodic pension benefit cost in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period, with other cost components presented separately from the service cost component and outside of income from operations. This ASU also allows only the service cost component of net periodic pension benefit cost to be eligible for capitalization when applicable. This ASU was effective for years beginning after December 15, 2017. The Company adopted this standard on January 1, 2018 applying the presentation requirements retrospectively. We elected to apply the practical expedient, which allows us to reclassify amounts disclosed previously in the employee benefit plans note as the basis for applying retrospective presentation for comparative periods as it is impracticable to determine the disaggregation of the cost components for amounts capitalized and amortized in those periods. Provisions related to presentation of the service cost component eligibility for capitalization were applied prospectively. The effect of the retrospective presentation change related to the net periodic benefit cost of our defined benefit pension and postretirement plans on our consolidated statement of operations was as follows: 2017 (dollars in millions) Previously Reported Effect of Change Higher/(Lower) As Revised Cost of product sold $ 31,027 $ 197 $ 31,224 Cost of services sold 12,926 51 12,977 Research and development 2,387 40 2,427 Selling, general and administrative 6,183 246 6,429 Non-service pension (benefit) — (534 ) (534 ) 2016 (dollars in millions) Previously Reported Effect of Change Higher/(Lower) As Revised Cost of product sold $ 30,325 $ (21 ) $ 30,304 Cost of services sold 11,135 32 11,167 Research and development 2,337 39 2,376 Selling, general and administrative 6,060 (102 ) 5,958 Other income 785 (3 ) 782 Non-service pension cost — 49 49 Employee Savings Plans. We sponsor various employee savings plans. Our contributions to employer sponsored defined contribution plans were $403 million , $351 million and $318 million for 2018 , 2017 and 2016 , respectively. Our non-union domestic employee savings plan uses an Employee Stock Ownership Plan (ESOP) for employer matching contributions. External borrowings were used by the ESOP to fund a portion of its purchase of ESOP stock from us. The external borrowings have been extinguished and only re-amortized loans remain between UTC and the ESOP Trust. As ESOP debt service payments are made, common stock is released from an unreleased shares account. ESOP debt may be prepaid or re-amortized to either increase or decrease the number of shares released so that the value of released shares equals the value of plan benefit. We may also, at our option, contribute additional common stock or cash to the ESOP. Shares of common stock are allocated to employees' ESOP accounts at fair value on the date earned. Cash dividends on common stock held by the ESOP are used for debt service payments. Participants may choose to have their ESOP dividends reinvested or distributed in cash. Common stock allocated to ESOP participants is included in the average number of common shares outstanding for both basic and diluted earnings per share. At December 31, 2018 , 24.7 million common shares had been allocated to employees, leaving 9.4 million unallocated common shares in the ESOP Trust, with an approximate fair value of $1.0 billion . Pension Plans. We sponsor both funded and unfunded domestic and foreign defined benefit pension plans that cover a large number of our employees. Our largest plans are generally closed to new participants. Our plans use a December 31 measurement date consistent with our fiscal year. (dollars in millions) 2018 2017 Change in Benefit Obligation: Beginning balance $ 36,999 $ 34,923 Service cost 372 374 Interest cost 1,117 1,120 Actuarial (gain) loss (2,048 ) 1,804 Total benefits paid (1,932 ) (1,782 ) Net settlement, curtailment and special termination benefits (38 ) (49 ) Plan amendments 65 4 Business combinations 3,694 — Other (434 ) 605 Ending balance $ 37,795 $ 36,999 Change in Plan Assets: Beginning balance $ 35,689 $ 30,555 Actual return on plan assets (1,667 ) 4,258 Employer contributions 238 2,188 Benefits paid (1,932 ) (1,782 ) Settlements (38 ) (41 ) Business combinations 3,355 — Other (392 ) 511 Ending balance $ 35,253 $ 35,689 Funded Status: Fair value of plan assets $ 35,253 $ 35,689 Benefit obligations (37,795 ) (36,999 ) Funded status of plan $ (2,542 ) $ (1,310 ) Amounts Recognized in the Consolidated Balance Sheet Consist of: Noncurrent assets $ 686 $ 957 Current liability (88 ) (70 ) Noncurrent liability (3,140 ) (2,197 ) Net amount recognized $ (2,542 ) $ (1,310 ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial loss $ 8,606 $ 7,238 Prior service cost 139 37 Net amount recognized $ 8,745 $ 7,275 As part of our long-term strategy to de-risk our defined benefit pension plans, we made discretionary contributions of approximately $1.9 billion to our domestic defined benefit pension plans in the quarter ended September 30, 2017. In 2016, we entered into an agreement to purchase a group annuity contract to transfer approximately $768 million of our outstanding pension benefit obligations related to certain U.S. retirees or beneficiaries, which was finalized on October 12, 2016. We also offered certain former U.S. employees or beneficiaries (generally all former U.S. participants not yet in receipt of their vested pension benefits) an option to take a one-time lump-sum distribution in lieu of future monthly pension payments, which reduced our pension benefit obligations by approximately $935 million . These transactions reduced the assets of our defined benefit pension plans by approximately $1.5 billion . As a result of these 2016 transactions, we recognized a one-time pre-tax pension settlement charge of approximately $423 million in the fourth quarter of 2016. The amounts included in "Other" in the above table primarily reflect the impact of foreign exchange translation, primarily for plans in the U.K. and Canada. As part of the Rockwell acquisition on November 26, 2018, we assumed approximately $3.7 billion of pension projected benefit obligations and $3.4 billion of plan assets. As approved in 2016, effective January 1, 2017, a voluntary lump-sum option is available for the frozen final average earnings benefits of certain U.S. salaried employees upon termination of employment after 2016. This option provides participants with the choice of electing to receive a lump-sum payment in lieu of receiving a future monthly pension benefit. This plan change reduced the projected benefit obligation by $170 million as of December 31, 2016. Qualified domestic pension plan benefits comprise approximately 75% of the projected benefit obligation. Benefits for union employees are generally based on a stated amount for each year of service. For non-union employees, benefits for service up to December 31, 2014 are generally based on an employee's years of service and compensation through December 31, 2014. Benefits for service after December 31, 2014 are based on the existing cash balance formula that was adopted in 2003 for newly hired non-union employees and for other non-union employees who made a one-time voluntary election to have future benefit accruals determined under this formula. Certain foreign plans, which comprise approximately 23% of the projected benefit obligation, are considered defined benefit plans for accounting purposes. Nonqualified domestic pension plans provide supplementary retirement benefits to certain employees and are not a material component of the projected benefit obligation. We made no contributions to our domestic defined benefit pension plans and made $147 million of cash contributions to our foreign defined benefit pension plans in 2018 . In 2017 , we made $1.9 billion of cash contributions to our domestic defined benefit pension plans and made $212 million of cash contributions to our foreign defined benefit pension plans. Information for pension plans with accumulated benefit obligations in excess of plan assets: (dollars in millions) 2018 2017 Projected benefit obligation $ 25,884 $ 22,360 Accumulated benefit obligation 25,455 22,159 Fair value of plan assets 22,803 20,438 Information for pension plans with projected benefit obligations in excess of plan assets: (dollars in millions) 2018 2017 Projected benefit obligation $ 28,591 $ 27,211 Accumulated benefit obligation 27,968 26,560 Fair value of plan assets 25,362 24,944 The accumulated benefit obligation for all defined benefit pension plans was $37.0 billion and $36.2 billion at December 31, 2018 and 2017 , respectively. The components of the net periodic pension (benefit) cost are as follows: (dollars in millions) 2018 2017 2016 Pension Benefits: Service cost $ 372 $ 374 $ 383 Interest cost 1,117 1,120 1,183 Expected return on plan assets (2,255 ) (2,215 ) (2,202 ) Amortization of prior service credit (41 ) (36 ) (33 ) Recognized actuarial net loss 401 575 572 Net settlement, curtailment and special termination benefits loss 1 3 498 Net periodic pension (benefit) cost - employer $ (405 ) $ (179 ) $ 401 Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2018 are as follows: (dollars in millions) Current year actuarial loss $ 1,871 Amortization of actuarial loss (401 ) Current year prior service cost 65 Amortization of prior service credit 41 Net settlement and curtailment loss 2 Other (108 ) Total recognized in other comprehensive loss $ 1,470 Net recognized in net periodic pension (benefit) cost and other comprehensive loss $ 1,065 The amount included in "Other" in the above table primarily reflects the impact of foreign exchange translation, primarily for plans in the U.K. and Canada. The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension (benefit) cost in 2019 is as follows: (dollars in millions) Net actuarial loss $ 214 Prior service cost 17 $ 231 Major assumptions used in determining the benefit obligation and net cost for pension plans are presented in the following table as weighted-averages: Benefit Obligation Net Cost 2018 2017 2018 2017 2016 Discount rate PBO 4.0 % 3.4 % 3.4 % 3.8 % 4.1 % Interest cost 1 — — 3.0 % 3.3 % 3.4 % Service cost 1 — — 3.3 % 3.6 % 3.8 % Salary scale 4.2 % 4.2 % 4.2 % 4.1 % 4.2 % Expected return on plan assets — — 6.8 % 7.3 % 7.3 % Note 1 The discount rates used to measure the service cost and interest cost applies to our significant plans. The PBO discount rate is used for the service cost and interest cost measurements for non-significant plans. In determining the expected return on plan assets, we consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes, and economic and other indicators of future performance. In addition, we may consult with and consider the opinions of financial and other professionals in developing appropriate capital market assumptions. Return projections are also validated using a simulation model that incorporates yield curves, credit spreads and risk premiums to project long-term prospective returns. The plans' investment management objectives include providing the liquidity and asset levels needed to meet current and future benefit payments, while maintaining a prudent degree of portfolio diversification considering interest rate risk and market volatility. Globally, investment strategies target a mix of 50% to 55% of growth seeking assets and 45% to 50% of income generating and hedging assets using a wide set of diversified asset types, fund strategies and investment managers. The growth seeking allocation consists of global public equities in developed and emerging countries, private equity, real estate and multi-asset class strategies. Growth assets include an enhanced alpha strategy that invests in publicly traded equity and fixed income securities, derivatives and foreign currency. Investments in private equity are primarily via limited partnership interests in buy-out strategies with smaller allocations to distressed debt funds. The real estate strategy is principally concentrated in directly held U.S. core investments with some smaller investments in international, value-added and opportunistic strategies. Within the income generating assets, the fixed income portfolio consists of mainly government and broadly diversified high quality corporate bonds. The plans have continued their pension risk management techniques designed to reduce their interest rate risk. Specifically, the plans have incorporated liability hedging programs that include the adoption of a risk reduction objective as part of the long-term investment strategy. Under this objective the interest rate hedge is dynamically increased as funded status improves. The hedging programs incorporate a range of assets and investment tools, each with varying interest rate sensitivities. As result of the improved funded status of the plans due to favorable asset returns and funding of the plans, the interest rate hedge increased significantly during 2017. The investment portfolios are currently hedging approximately 60% to 65% of the interest rate sensitivity of the pension plan liabilities. As a result of the shift in the target asset mix in 2017 to higher income generating and hedging assets and lower growth seeking assets, we reduced the expected return on plan assets assumption for 2018 including the assumption of a 7% return on plan assets for our qualified domestic pension plans, down from 7.6% in 2017. The fair values of pension plan assets at December 31, 2018 and 2017 by asset category are as follows: (dollars in millions) Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling Total Asset Category: Public Equities Global Equities $ 2,917 $ 4 $ — $ — $ 2,921 Global Equity Commingled Funds 1 185 426 — — 611 Enhanced Global Equities 2 79 605 — — 684 Global Equity Funds at net asset value 8 — — — 7,386 7,386 Private Equities 3,8 — — 133 1,194 1,327 Fixed Income Securities Governments 1,789 162 — — 1,951 Corporate Bonds — 11,527 18 29 11,574 Fixed Income Securities 8 — — — 3,599 3,599 Real Estate 4,8 — 13 1,387 429 1,829 Other 5,8 — 262 — 2,368 2,630 Cash & Cash Equivalents 6,8 — 220 — 138 358 Subtotal $ 4,970 $ 13,219 $ 1,538 $ 15,143 34,870 Other Assets & Liabilities 7 383 Total at December 31, 2018 $ 35,253 Public Equities Global Equities $ 3,129 $ 3 $ — $ — $ 3,132 Global Equity Commingled Funds 1 — 1,084 — — 1,084 Enhanced Global Equities 2 213 819 — — 1,032 Global Equity Funds at net asset value 8 — — — 7,599 7,599 Private Equities 3,8 — — 46 1,170 1,216 Fixed Income Securities Governments 1,445 69 — — 1,514 Corporate Bonds — 10,929 — — 10,929 Fixed Income Securities 8 — — — 3,519 3,519 Real Estate 4,8 — 15 1,446 396 1,857 Other 5,8 — 287 — 2,509 2,796 Cash & Cash Equivalents 6,8 — 79 — 498 577 Subtotal $ 4,787 $ 13,285 $ 1,492 $ 15,691 35,255 Other Assets & Liabilities 7 434 Total at December 31, 2017 $ 35,689 Note 1 Represents commingled funds that invest primarily in common stocks. Note 2 Represents enhanced equity separate account and commingled fund portfolios. A portion of the portfolio may include long-short market neutral and relative value strategies that invest in publicly traded, equity and fixed income securities, as well as derivatives of equity and fixed income securities and foreign currency. Note 3 Represents limited partner investments with general partners that primarily invest in debt and equity. Note 4 Represents investments in real estate including commingled funds and directly held properties. Note 5 Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities. Note 6 Represents short-term commercial paper, bonds and other cash or cash-like instruments. Note 7 Represents trust receivables and payables that are not leveled. Note 8 In accordance with ASU 2015-07, Fair Value Measurement (Topic 820) , certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets. Derivatives in the plan are primarily used to manage risk and gain asset class exposure while still maintaining liquidity. Derivative instruments mainly consist of equity futures, interest rate futures, interest rate swaps and currency forward contracts. Our common stock represents approximately less than 1% of total plan assets at both December 31, 2018 and 2017 . We review our assets at least quarterly to ensure we are within the targeted asset allocation ranges and, if necessary, asset balances are adjusted back within target allocations. We employ a broadly diversified investment manager structure that includes diversification by active and passive management, style, capitalization, country, sector, industry and number of investment managers. The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed due to the following: (dollars in millions) Private Equities Corporate Bonds Real Estate Total Balance, December 31, 2016 $ 122 $ — $ 1,285 $ 1,407 Realized gains 61 — 31 92 Unrealized (losses) gains relating to instruments still held in the reporting period (47 ) — 17 (30 ) Purchases, sales, and settlements, net (90 ) — 113 23 Balance, December 31, 2017 46 — 1,446 1,492 Plan assets acquired — 33 — 33 Realized (losses) gains — (1 ) 10 9 Unrealized gains relating to instruments still held in the reporting period — 2 38 40 Purchases, sales, and settlements, net 87 (16 ) (107 ) (36 ) Balance, December 31, 2018 $ 133 $ 18 $ 1,387 $ 1,538 Quoted market prices are used to value investments when available. Investments in securities traded on exchanges, including listed futures and options, are valued at the last reported sale prices on the last business day of the year or, if not available, the last reported bid prices. Fixed income securities are primarily measured using a market approach pricing methodology, where observable prices are obtained by market transactions involving identical or comparable securities of issuers with similar credit ratings. Mortgages have been valued on the basis of their future principal and interest payments discounted at prevailing interest rates for similar investments. Investment contracts are valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations. Real estate investments are valued on a quarterly basis using discounted cash flow models which consider long-term lease estimates, future rental receipts and estimated residual values. Valuation estimates are supplemented by third-party appraisals on an annual basis. Private equity limited partnerships are valued quarterly using discounted cash flows, earnings multiples and market multiples. Valuation adjustments reflect changes in operating results, financial condition, or prospects of the applicable portfolio company. Over-the-counter securities and government obligations are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes. Temporary cash investments are stated at cost, which approximates fair value. As a result of the $1.9 billion contribution in 2017, we are not required to make additional contributions to our domestic defined benefit pension plans through the end of 2024. We expect to make total contributions of approximately $100 million to our global defined benefit pension plans in 2019 . Contributions do not reflect benefits to be paid directly from corporate assets. Benefit payments, including amounts to be paid from corporate assets, and reflecting expected future service, as appropriate, are expected to be paid as follows: $2,371 million in 2019 , $2,195 million in 2020 , $2,240 million in 2021 , $2,292 million in 2022 , $2,327 million in 2023 , and $11,939 million from 2024 through 2028 . Postretirement Benefit Plans. We sponsor a number of postretirement benefit plans that provide health and life benefits to eligible retirees. Such benefits are provided primarily from domestic plans, which comprise approximately 87% of the benefit obligation. The postretirement plans are primarily unfunded. The assets are invested in approximately 50% growth seeking assets and 50% income generating assets. (dollars in millions) 2018 2017 Change in Benefit Obligation: Beginning balance $ 767 $ 805 Service cost 2 2 Interest cost 26 29 Actuarial gain (52 ) (4 ) Total benefits paid (70 ) (87 ) Business combinations 186 — Plan amendments (43 ) (6 ) Other (6 ) 28 Ending balance $ 810 $ 767 Change in Plan Assets: Beginning balance $ — $ — Employer contributions 69 71 Benefits paid (70 ) (87 ) Business combinations 20 — Other 1 16 Ending balance $ 20 $ — Funded Status: Fair value of plan assets $ 20 $ — Benefit obligations (810 ) (767 ) Funded status of plan $ (790 ) $ (767 ) Amounts Recognized in the Consolidated Balance Sheet Consist of: Current liability $ (61 ) $ (72 ) Noncurrent liability (729 ) (695 ) Net amount recognized $ (790 ) $ (767 ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial gain $ (184 ) $ (143 ) Prior service credit (47 ) (10 ) Net amount recognized $ (231 ) $ (153 ) As part of our acquisition of Rockwell on November 26, 2018, we assumed approximately $186 million of postretirement benefit obligations and $20 million of plan assets. We modified the postretirement medical benefits provided to legacy Rockwell employees by eliminating any company subsidy from retirements that occur after December 31, 2019. This resulted in a $43 million reduction in the benefit obligation as of November 26, 2018. The components of net periodic benefit cost are as follows: (dollars in millions) 2018 2017 2016 Other Postretirement Benefits: Service cost $ 2 $ 2 $ 3 Interest cost 26 29 34 Amortization of prior service credit (6 ) (1 ) — Recognized actuarial net gain (10 ) (9 ) (4 ) Net periodic other postretirement benefit cost $ 12 $ 21 $ 33 Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2018 are as follows: (dollars in millions) Current year actuarial gain $ (52 ) Current year prior service credit (43 ) Amortization of prior service credit 6 Amortization of actuarial net gain 10 Other 1 Total recognized in other comprehensive loss $ (78 ) Net recognized in net periodic other postretirement benefit cost and other comprehensive loss $ (66 ) The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2019 include actuarial net gains of $12 million and prior service credits of $42 million . Major assumptions used in determining the benefit obligation and net cost for postretirement plans are presented in the following table as weighted-averages: Benefit Obligation Net Cost 2018 2017 2018 2017 2016 Discount rate 4.1 % 3.4 % 3.4 % 3.8 % 4.0 % Expected return on assets — — 7.0 % N/A N/A Assumed health care cost trend rates are as follows: 2018 2017 Health care cost trend rate assumed for next year 7.0 % 7.0 % Rate that the cost trend rate gradually declines to 5.0 % 5.0 % Year that the rate reaches the rate it is assumed to remain at 2026 2026 Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: 2018 One-Percentage-Point (dollars in millions) Increase Decrease Effect on total service and interest cost $ 1 $ (1 ) Effect on postretirement benefit obligation 32 (28 ) Benefit payments, including net amounts to be paid from corporate assets and reflecting expected future service, as appropriate, are expected to be paid as follows: $81 million in 2019 , $75 million in 2020 , $72 million in 2021 , $67 million in 2022 , $61 million in 2023 , and $253 million from 2024 through 2028 . Multiemployer Benefit Plans. We contribute to various domestic and foreign multiemployer defined benefit pension plans. The risks of participating in these multiemployer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. Lastly, if we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans a withdrawal liability based on the underfunded status of the plan. Our participation in these plans for the annual periods ended December 31 is outlined in the table below. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2018 and 2017 is for the plan's year-end at June 30, 2017 , and June 30, 2016 , respectively. The zone status is based on information that we received from the plan and is certified by the plan's actuary. Our significant plan is in the green zone which represents a plan that is at least 80% funded and does not require a financial improvement plan (FIP) or a rehabilitation plan (RP). An extended amortization provision of ten years is utilized to recognize investment gains or losses for our significant plan. (dollars in millions) Pension Protection Act Zone Status FIP/ RP Status Contributions Pension Fund EIN/Pension Plan Number 2018 2017 Pending/ Implemented 2018 2017 2016 Surcharge Imposed Expiration Date of Collective-Bargaining Agreement National Elevator Industry Pension Plan 23-2694291 Green Green No $ 120 $ 114 $ 100 No July 8, 2022 Other funds 31 31 31 $ 151 $ 145 $ 131 For the plan years ended June 30, 2017 and 2016 , respectively, we were listed in the National Elevator Industry Pension Plan 's Forms 5500 as providing more than 5% of the total contributions for the plan. At the date these financial statements were issued, Forms 5500 were not available for the plan year ending June 30, 2018 . In addition, we participate in several multiemployer arrangements that provide postretirement benefits other than pensions, with the National Elevator Industry Health Benefit Plan being the most significant. These arrangements generally provide medical and life benefits for eligible active employees and retirees and their dependents. Contributions to multiemployer plans that provide postretirement benefits other than pensions were $20 million , $19 million and $17 million for 2018 , 2017 and 2016 , respectively. Stock-based Compensation. UTC's long-term incentive plans authorize various types of market and performance based incentive awards that may be granted to officers and employees. The UTC 2018 Long-Term Incentive Plan (the "2018 LTIP") was approved by shareholders on April 30, 2018 and its predecessor plan (the "Legacy LTIP"), was last amended on February 5, 2016. A total of 184 million shares have been authorized for issuance pursuant to awards under these Plans. There are no equity-based compensation awards granted under any other plan. As of December 31, 2018, approximately 58 million shares remain available for awards under the 2018 LTIP. No shares remain available for future awards under the Legacy LTIP. Neither plan contains an aggregate annual award limit, however, each Plan sets an annual award limit per participant. We expect that the shares awarded on an annual basis will range from 1.0% to 1.5% of shares outstanding. The 2018 LTIP will expire after all authorized shares have been awarded or April 30, 2028, whichever is sooner. Under both Plans, the exercise price of awards is set on the grant date and may not be less than the fair market value per share on that date. Generally, stock appreciation rights and stock options have a term of ten years and a three-year vesting period, subject to limited exceptions. In the event of retirement, annual stock appreciation rights, stock options, and restricted stock units held for more than one year may become vested and exercisable, subject to certain terms and conditions. LTIP awards with performance-based vesting generally have a minimum three-year vesting period and vest based on actual performance against pre-established metrics. In the event of retirement, performance-based awards held for more than one year, remain eligible to vest based on actual performance relative to target metrics. We have historically repurchased shares of our common stock in an amount at least equal to the number of shares issued under our equity compensation arrangements and will continue to evaluate this policy in conjunction with our overall share repurchase program. We measure the cost of all share-based payments, including stock options, at fair value on the grant date and recognize this cost in the Consolidated Statement of Operations as follows: (dollars in millions) 2018 2017 2016 Continuing operations $ 251 $ 192 $ 152 Discontinued operations — — 1 Total compensation cost recognized $ 251 $ 192 $ 153 The associated future income tax benefit recognized was $42 million , $38 million and $49 million for the years ended December 31, 2018, 2017 and 2016 , respectively. The amounts have been adjusted for the impact of the TCJA. Please refer to Note 11 for additional detail. For the years ended December 31, 2018, 2017 and 2016 , the amount of cash received from the exercise of stock options was $36 million , $29 million and $17 million , respectively, with an associated tax benefit realized of $59 million , $100 million and $69 million , respectively. In addition, for the years ended December 31, 2018, 2017 and 2016 , the associated tax benefit realized from the vesting of performance share units and other restricted awards was $13 million , $12 million and $17 million , respectively. The 2018 amount was computed using current US Federal and State tax rates. At December 31, 2018 , there was $240 million of total unrecognized compensation cost related to non-vested equity awards granted under long-term incentive plans, of which $50 million relates to Rockwell Collins awards. This cost is expected to be recognized ratably over a weighted-average period of 2.6 years. A summary of the transactions under all long-term incentive plans for the year ended December 31, 2018 follows: Stock Options Stock Appreciation Rights Performance Share Units Other Incentive Shares/Units (shares and units in thousands) Shares Average Price* Shares Average Price* Units Average Price** Outstanding at: December 31, 2017 1,745 $ 94.35 32,722 $ 92.54 1,876 $ 106.38 2,182 Granted 1 255 126.94 4,579 127.37 598 128.20 992 Exercised / earned (389 ) 92.52 (4,781 ) 74.47 (181 ) 115.08 (406 ) Cancelled (8 ) 111.87 (454 ) 110.50 (487 ) 114.99 (72 ) Other - Rockwell Collins 2 — $ — — $ — — $ — 351 December 31, 2018 1,603 $ 99.89 32,066 $ 99.95 1,806 $ 110.41 3,047 * weighted-average exercise price ** weighted-average grant stock price 1 Other Incentive Shares include 193 thousand of units granted post-acquisition to specific Rockwell Collins executives 2 Represents Rockwell Collins awards converted to UTC RSU shares in accordance with merger acquisition The weighted-average grant date fair value of stock options and stock appreciation rights granted during 2018, 2017 and 2016 was $20.24 , $17.22 and $14.02 , respectively. The weighted-average grant date fair value of performance share units, which vest upon achieving certain performance metrics, granted during 2018, 2017 and 2016 was $131.55 , $111.00 and $91.63 , respectively. The total fair value of awards vested during the years ended December 31, 2018, 2017 and 2016 was $14 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |
Income Taxes | INCOME TAXES Income Before Income Taxes. The sources of income from continuing operations before income taxes are: (dollars in millions) 2018 2017 2016 United States $ 3,630 $ 2,990 $ 2,534 Foreign 4,650 4,773 4,599 $ 8,280 $ 7,763 $ 7,133 On December 22, 2017 Public Law 115-97 “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” was enacted. This law is commonly referred to as the Tax Cuts and Jobs Act of 2017 (TCJA). In 2018, the Company recorded a $744 million charge, representing TCJA related adjustments. The amounts primarily relate to non-U.S. taxes that will become due when previously reinvested earnings of certain international subsidiaries are remitted. The Company has completed its accounting for the TCJA as described in Staff Accounting Bulletin (SAB 118). In 2019, the Company will continue to review and incorporate, as necessary, updates related to forthcoming U.S. Treasury Regulations, other interpretive guidance, and the finalization of the deemed inclusions to be reported on the Company’s U.S. federal income tax returns. The Company no longer intends to reinvest certain undistributed earnings of its international subsidiaries that have been previously taxed in the U.S. As such, in the fourth quarter, it has recorded the taxes associated therewith. For the remainder of the Company’s undistributed international earnings, unless tax effective to repatriate, UTC will continue to permanently reinvest these earnings. As of December 31, 2018, such undistributed earnings were approximately $18 billion , excluding other comprehensive income amounts. It is not practicable to estimate the amount of tax that might be payable on the remaining amounts. Provision for Income Taxes. The income tax expense (benefit) for the years ended December 31, 2018, 2017 and 2016 consisted of the following components: (dollars in millions) 2018 2017 2016 Current: United States: Federal $ 442 $ 1,577 $ 30 State 211 64 (21 ) Foreign 1,238 1,140 1,290 1,891 2,781 1,299 Future: United States: Federal 57 (27 ) 318 State 62 84 134 Foreign 616 5 (54 ) 735 62 398 Income tax expense $ 2,626 $ 2,843 $ 1,697 Attributable to items credited (charged) to equity $ 501 $ (128 ) $ (299 ) Reconciliation of Effective Income Tax Rate. Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows: 2018 2017 2016 Statutory U.S. federal income tax rate 21.0 % 35.0 % 35.0 % Tax on international activities 0.9 % (6.4 )% (8.1 )% Tax audit settlements — % (0.7 )% (2.9 )% U.S. tax reform 9.0 % 8.9 % — Other 0.8 % (0.2 )% (0.2 )% Effective income tax rate 31.7 % 36.6 % 23.8 % The 2018 effective tax rate reflects a net tax charge of $744 million for TCJA related adjustments. The amount primarily relates to non-U.S. taxes that will become due when previously reinvested earnings of certain international subsidiaries are remitted. As noted above, the Company has completed its accounting related to these items as described in Staff Accounting Bulletin (SAB 118). The 2018 effective tax rate reconciliation reflects the corporate rate reduction enacted by the TCJA. The decrease in international activities is primarily related to higher international tax costs compared to the U.S. federal statutory rate. The 2017 effective tax rate reflects a net tax charge of $690 million , as described above, attributable to the passage of the TCJA. These 2017 provisional amounts, recorded as described in SAB 118, relate to U.S. income tax attributable to previously undistributed earnings of UTC’s international subsidiaries and equity investments, net of foreign tax credits, and the revaluation of U.S. deferred income taxes. The decrease in the tax audit settlement represents a $55 million favorable adjustment in 2017 related to the expiration of certain statute of limitations offset by the absence of the favorable audit settlements in 2016 described below. The decrease in the benefit associated with international activities is related to international earnings taxed at lower statutory rates offset by the absence of certain credits included in 2016. On December 7, 2017, the province of Quebec enacted a retroactive tax law change resulting in a cost of $48 million offset by the 2016 French law changes described below. The 2016 effective tax rate reflects $206 million of favorable adjustments related to the conclusion of the review by the Examination Division of the Internal Revenue Service of the UTC 2011 and 2012 tax years and the Goodrich Corporation 2011 and 2012 tax years through the date of its acquisition. In addition, at the end of 2016, France enacted a tax law change reducing its corporate income tax rate, which resulted in a tax benefit of $25 million . Deferred Tax Assets and Liabilities. Future income taxes represent the tax effects of transactions which are reported in different periods for tax and financial reporting purposes. These amounts consist of the tax effects of temporary differences between the tax and financial reporting balance sheets and tax carryforwards. Future income tax benefits and payables within the same tax paying component of a particular jurisdiction are offset for presentation in the Consolidated Balance Sheet. The amounts have been adjusted for the impact of the TCJA. The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2018 and 2017 are as follows: (dollars in millions) 2018 2017 Future income tax benefits: Insurance and employee benefits $ 1,154 $ 928 Other asset basis differences 1,013 798 Other liability basis differences 1,482 1,158 Tax loss carryforwards 583 544 Tax credit carryforwards 1,050 948 Valuation allowances (605 ) (582 ) $ 4,677 $ 3,794 Future income taxes payable: Intangible assets $ 4,462 $ 2,100 Other asset basis differences 2,159 1,315 Other items, net 123 411 $ 6,744 $ 3,826 Valuation allowances have been established primarily for tax credit carryforwards, tax loss carryforwards, and certain foreign temporary differences to reduce the future income tax benefits to expected realizable amounts. Tax Credit and Loss Carryforwards. At December 31, 2018 , tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows: (dollars in millions) Tax Credit Carryforwards Tax Loss Carryforwards Expiration period: 2019-2023 $ 32 $ 286 2024-2028 33 189 2029-2038 354 559 Indefinite 631 1,931 Total $ 1,050 $ 2,965 Unrecognized Tax Benefits. At December 31, 2018 , we had gross tax-effected unrecognized tax benefits of $1,619 million , of which $1,609 million , if recognized, would impact the effective tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for the years ended December 31, 2018, 2017 and 2016 is as follows: (dollars in millions) 2018 2017 2016 Balance at January 1 $ 1,189 $ 1,086 $ 1,169 Additions for tax positions related to the current year 192 192 69 Additions for tax positions of prior years 344 73 167 Reductions for tax positions of prior years (91 ) (91 ) (61 ) Settlements (15 ) (71 ) (258 ) Balance at December 31 $ 1,619 $ 1,189 $ 1,086 Gross interest expense related to unrecognized tax benefits $ 37 $ 34 $ 41 Total accrued interest balance at December 31 $ 255 $ 215 $ 185 The 2018 amounts above include amounts related to the acquisition of Rockwell Collins. We conduct business globally and, as a result, UTC or one or more of our subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong, India, Italy, Japan, Mexico, Netherlands, Poland, Singapore, South Korea, Spain, Switzerland, the United Kingdom and the United States. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2008. During the quarter ended September 30, 2017, the Company recognized a noncash gain of approximately $64 million , including a pre-tax interest adjustment of $9 million , as a result of federal, state and non-U.S. tax year closures related to audit resolutions and the expiration of applicable statutes of limitation, including expiration of the U.S. federal income tax statute of limitations for UTC’s 2013 tax year. During the quarter ended December 31, 2016, the Company recognized a noncash gain of approximately $ 172 million , including a pre-tax interest adjustment of $ 22 million , as a result of the closure of the audit by the Examination Division of the Internal Revenue Service (IRS) of UTC tax years 2011 and 2012. During the quarter ended September 30, 2016, the Company recognized a noncash gain of approximately $ 58 million , primarily tax, as a result of the closure of the audit by the Examination Division of the IRS of Goodrich Corporation tax years 2011 and 2012 through the date of acquisition by UTC. As of December 31, 2018, UTC’s tax years 2014, 2015 and 2016 were under audit by the Examination Division of the Internal Revenue Service (IRS) and the audit is expected to conclude during 2019. The Examination Division of the IRS is also auditing the 2014 tax year of a subsidiary acquired as part of UTC’s acquisition of Rockwell Collins and the audit is expected to conclude during 2019. Another subsidiary of the Company is engaged in litigation in Italy which is currently pending before the Italian Supreme Court following favorable lower court decisions. The Italian Tax Authority recently announced an amnesty program; the Company expects to make a decision whether to take part in the first or second quarter of 2019. If we participate, the Company would expect to recognize a non-cash gain, primarily tax, in the range of $90 million to $110 million before the end of the second quarter of 2019. It is reasonably possible that a net reduction within the range of $ 470 million to $ 845 million of unrecognized tax benefits may occur over the next 12 months as a result of additional worldwide uncertain tax positions, the revaluation of current uncertain tax positions arising from developments in examinations, in appeals, or in the courts, or the closure of tax statutes. See Note 18 "Contingent Liabilities" for discussion regarding uncertain tax positions, included in the above range, related to pending litigation with respect to certain deductions claimed in Germany. |
Restructuring and Other Costs
Restructuring and Other Costs | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING COSTS During 2018 , we recorded net pre-tax restructuring costs totaling $307 million for new and ongoing restructuring actions. We recorded charges in the segments as follows: (dollars in millions) Otis $ 69 Carrier 80 Pratt & Whitney (7 ) Collins Aerospace Systems 160 Eliminations and other 5 Total $ 307 Restructuring charges incurred in 2018 primarily relate to actions initiated during 2018 and 2017 , and were recorded as follows: (dollars in millions) Cost of sales $ 147 Selling, general & administrative 162 Non-service pension (benefit) (2 ) Total $ 307 2018 Actions. During 2018 , we recorded net pre-tax restructuring costs totaling $207 million for restructuring actions initiated in 2018 , consisting of $76 million in cost of sales, $133 million in selling, general and administrative expenses and $(2) million in non-service pension benefit. The 2018 actions relate to ongoing cost reduction efforts, including workforce reductions and consolidation of field operations. We are targeting to complete in 2019 and 2020 the majority of the remaining workforce and all facility related cost reduction actions initiated in 2018 . No specific plans for significant other actions have been finalized at this time. The following table summarizes the accrual balances and utilization by cost type for the 2018 restructuring actions: (dollars in millions) Severance Facility Exit, Lease Termination & Other Costs Total Net pre-tax restructuring costs $ 191 $ 16 $ 207 Utilization, foreign exchange and other costs (76 ) 7 (69 ) Balance at December 31, 2018 $ 115 $ 23 $ 138 The following table summarizes expected, incurred and remaining costs for the 2018 restructuring actions by segment: (dollars in millions) Expected Costs Cost Incurred During 2018 Remaining Costs at December 31, 2018 Otis $ 55 $ (48 ) $ 7 Carrier 111 (64 ) 47 Pratt & Whitney 3 (3 ) — Collins Aerospace Systems 111 (87 ) 24 Eliminations and other 6 (5 ) 1 Total $ 286 $ (207 ) $ 79 2017 Actions. During 2018 , we recorded net pre-tax restructuring costs totaling $94 million for restructuring actions initiated in 2017 , consisting of $72 million in cost of sales and $22 million in selling, general and administrative expenses. The 2017 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. The following table summarizes the accrual balances and utilization by cost type for the 2017 restructuring actions: (dollars in millions) Severance Facility Exit, Lease Termination and Other Costs Total Restructuring accruals at January 1, 2018 $ 84 $ 1 $ 85 Net pre-tax restructuring costs 62 32 94 Utilization, foreign exchange and other costs (89 ) (37 ) (126 ) Balance at December 31, 2018 $ 57 $ (4 ) $ 53 The following table summarizes expected, incurred and remaining costs for the 2017 programs by segment: (dollars in millions) Expected Costs Costs Incurred During 2017 Costs Incurred During 2018 Remaining Costs at December 31, 2018 Otis $ 66 $ (43 ) $ (20 ) $ 3 Carrier 77 (76 ) — 1 Pratt & Whitney 7 (7 ) — — Collins Aerospace Systems 204 (43 ) (74 ) 87 Eliminations and other 7 (7 ) — — Total $ 361 $ (176 ) $ (94 ) $ 91 2016 and Prior Actions. During 2018 , we recorded net pre-tax restructuring costs totaling $6 million for restructuring actions initiated in 2016 and prior. As of December 31, 2018 , we have approximately $58 million of accrual balances remaining related to 2016 and prior actions. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments Disclosure [Text Block] | NOTE 14: FINANCIAL INSTRUMENTS We enter into derivative instruments primarily for risk management purposes, including derivatives designated as hedging instruments under the Derivatives and Hedging Topic of the FASB ASC and those utilized as economic hedges. We operate internationally and, in the normal course of business, are exposed to fluctuations in interest rates, foreign exchange rates and commodity prices. These fluctuations can increase the costs of financing, investing and operating the business. We have used derivative instruments, including swaps, forward contracts and options, to manage certain foreign currency, interest rate and commodity price exposures. The four quarter rolling average of the notional amount of foreign exchange contracts hedging foreign currency transactions was $ 20.1 billion and $ 19.1 billion at December 31, 2018 and 2017 , respectively. Additional information pertaining to foreign exchange and hedging activities is included in Note 1. The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivative instruments as of December 31, 2018 and 2017 : (dollars in millions) Balance Sheet Location December 31, 2018 December 31, 2017 Derivatives designated as hedging instruments: Foreign exchange contracts Asset Derivatives: Other assets, current $ 10 $ 77 Other assets 12 101 Total asset derivatives $ 22 $ 178 Liability Derivatives: Accrued liabilities (83 ) (10 ) Other long-term liabilities (111 ) (8 ) Total liability derivatives $ (194 ) $ (18 ) Derivatives not designated as hedging instruments: Foreign exchange contracts Asset Derivatives: Other assets, current 44 70 Other assets 19 5 Total asset derivatives $ 63 $ 75 Liability Derivatives: Accrued liabilities (89 ) (57 ) Other long-term liabilities (3 ) (3 ) Total liability derivatives $ (92 ) $ (60 ) The effect of cash flow hedging relationships on accumulated other comprehensive income for the years ended December 31, 2018 and 2017 are presented in the table below. The amounts of gain or (loss) are attributable to foreign exchange contract activity and are recorded as a component of Product sales when reclassified from accumulated other comprehensive income. Year Ended December 31, (dollars in millions) 2018 2017 (Loss) Gain recorded in Accumulated other comprehensive loss $ (307 ) $ 347 Gain reclassified from Accumulated other comprehensive loss into Product sales $ (16 ) $ (39 ) The table above reflects the effect of cash flow hedging relationships on the Consolidated Statement of Operations for the years ended December 31, 2018 and 2017 . The Company utilizes the critical terms match method in assessing derivatives for hedge effectiveness. Accordingly, the hedged items and derivatives designated as hedging instruments are highly effective. We have approximately €4.95 billion of euro-denominated long-term debt and €750 million of euro-denominated commercial paper borrowings outstanding, which qualify as a net investment hedge against our investments in European businesses . As of December 31, 2018 , the net investment hedge is deemed to be effective. Assuming current market conditions continue, a $ 48 million pre-tax loss is expected to be reclassified from Accumulated other comprehensive loss into Product sales to reflect the fixed prices obtained from foreign exchange hedging within the next 12 months. At December 31, 2018 , all derivative contracts accounted for as cash flow hedges will mature by January 2023 . The effect of derivatives not designated as hedging instruments within Other income, net, on the Consolidated Statement of Operations was as follows: Year Ended December 31, (dollars in millions) 2018 2017 Gain recognized in Other income, net $ 115 $ 77 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS In accordance with the provisions of ASC 820, the following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and nonrecurring basis in our Consolidated Balance Sheet as of December 31, 2018 and 2017 : 2018 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 51 $ 51 $ — $ — Derivative assets 85 — 85 — Derivative liabilities (286 ) — (286 ) — 2017 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 64 $ 64 $ — $ — Derivative assets 253 — 253 — Derivative liabilities (78 ) — (78 ) — Valuation Techniques. Our available-for-sale securities include equity investments that are traded in active markets, either domestically or internationally, and are measured at fair value using closing stock prices from active markets. Our derivative assets and liabilities include foreign exchange contracts that are measured at fair value using internal models based on observable market inputs such as forward rates, interest rates, our own credit risk and our counterparties' credit risks. As of December 31, 2018 , there were no significant transfers in or out of Level 1 and Level 2. As of December 31, 2018 , there has not been any significant impact to the fair value of our derivative liabilities due to our own credit risk. Similarly, there has not been any significant adverse impact to our derivative assets based on our evaluation of our counterparties' credit risks. The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Consolidated Balance Sheet at December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 (dollars in millions) Carrying Fair Carrying Fair Long-term receivables $ 334 $ 314 $ 127 $ 121 Customer financing notes receivable 272 265 609 596 Short-term borrowings (1,469 ) (1,469 ) (392 ) (392 ) Long-term debt (excluding capitalized leases) (43,996 ) (44,003 ) (27,067 ) (29,180 ) Long-term liabilities (508 ) (467 ) (362 ) (330 ) The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Consolidated Balance Sheet as of December 31, 2018 and 2017 : December 31, 2018 (dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 314 $ — $ 314 $ — Customer financing notes receivable 265 — 265 — Short-term borrowings (1,469 ) — (1,258 ) (211 ) Long-term debt (excluding capitalized leases) (44,003 ) — (43,620 ) (383 ) Long-term liabilities (467 ) — (467 ) — December 31, 2017 (dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 121 $ — $ 121 $ — Customer financing notes receivable 596 — 596 — Short-term borrowings (392 ) — (300 ) (92 ) Long-term debt (excluding capitalized leases) (29,180 ) — (28,970 ) (210 ) Long-term liabilities (330 ) — (330 ) — |
Variable Interest Entities (Not
Variable Interest Entities (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | VARIABLE INTEREST ENTITIES Pratt & Whitney holds a net 61% interest in the International Aero Engines AG (IAE) collaboration with MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC) and a 49.5% ownership interest in IAE. IAE's business purpose is to coordinate the design, development, manufacturing and product support of the V2500 engine program through involvement with the collaborators. Additionally, Pratt & Whitney, JAEC and MTU are participants in International Aero Engines, LLC (IAE LLC), whose business purpose is to coordinate the design, development, manufacturing and product support for the PW1100G-JM engine for the Airbus A320neo aircraft and the PW1400G-JM engine for the Irkut MC21 aircraft. Pratt & Whitney holds a 59% 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 Consolidated Balance Sheet as of December 31, 2018 and 2017 are as follows: (dollars in millions) 2018 2017 Current assets $ 4,732 $ 3,976 Noncurrent assets 1,600 1,534 Total assets $ 6,332 $ 5,510 Current liabilities $ 4,946 $ 3,601 Noncurrent liabilities 1,898 2,086 Total liabilities $ 6,844 $ 5,687 |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES We extend a variety of financial, market value and product performance guarantees to third parties. As of December 31, 2018 and 2017 , the following financial guarantees were outstanding: December 31, 2018 December 31, 2017 (dollars in millions) Maximum Carrying Maximum Carrying Commercial aerospace financing arrangements (see Note 5) $ 348 $ 9 $ 336 $ 8 Credit facilities and debt obligations (expire 2019 to 2028) 116 — 256 15 Performance guarantees 55 5 56 2 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 $175 million and $179 million at December 31, 2018 and December 31, 2017 , respectively. For additional information regarding the environmental indemnifications, see Note 18. We accrue for costs associated with guarantees when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts, and where no amount within a range of estimates is more likely, the minimum is accrued. In accordance with the Guarantees Topic of the FASB ASC, we record these liabilities at fair value. We provide service and warranty policies on our products and extend performance and operating cost guarantees beyond our normal service and warranty policies on some of our products, particularly commercial aircraft engines. In addition, we incur discretionary costs to service our products in connection with specific product performance issues. Liabilities for performance and operating cost guarantees are based upon future product performance and durability, and are largely estimated based upon historical experience. Adjustments are made to accruals as claim data and historical experience warrant. The changes in the carrying amount of service and product warranties and product performance guarantees for the years ended December 31, 2018 and 2017 are as follows: (dollars in millions) 2018 2017 Balance as of January 1 1 $ 1,146 $ 1,199 Warranties and performance guarantees issued 604 323 Settlements made (493 ) (207 ) Other 2 192 9 Balance as of December 31 $ 1,449 $ 1,324 1 Change in beginning balance due to revenue recognition reclassification of extended warranty to net contract asset/liability. 2 Increase in Other is driven by Rockwell Collins acquisition. |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | CONTINGENT LIABILITIES 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. Leases. We occupy space and use certain equipment and assets under lease arrangements. Rental commitments of approximately $2.9 billion at December 31, 2018 under long-term non-cancelable operating leases are payable as follows: $683 million in 2019 , $544 million in 2020 , $407 million in 2021 , $301 million in 2022 , $235 million in 2023 and $746 million thereafter. Rent expense was $422 million in 2018 , $411 million in 2017 and $386 million in 2016 . Additional information pertaining to commercial aerospace rental commitments is included in Note 5 to the Consolidated Financial Statements. Environmental. Our operations are subject to environmental regulation by federal, state and local authorities in the United States and regulatory authorities with jurisdiction over our foreign operations. As described in Note 1 to the Consolidated Financial Statements, we have accrued for the costs of environmental remediation activities, including but not limited to investigatory, remediation, operating and maintenance costs and performance guarantees, and periodically reassess these amounts. We believe that the likelihood of incurring losses materially in excess of amounts accrued is remote. As of December 31, 2018 and 2017 , we had approximately $830 million reserved for environmental remediation, respectively. Additional information pertaining to environmental matters is included in Note 1 to the Consolidated Financial Statements. Government. In the ordinary course of business, the Company and its subsidiaries and our properties are subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations and threatened legal actions and proceedings. For example, we are now, and believe that, in light of the current U.S. Government contracting environment, we will continue to be the subject of one or more U.S. Government investigations. Such U.S. Government investigations often take years to complete and could result in administrative, civil or criminal liabilities, including repayments, fines, treble and other damages, forfeitures, restitution or penalties, or could lead to suspension or debarment of U.S. Government contracting privileges. For instance, if we or one of our business units were charged with wrongdoing as a result of any of these investigations or other government investigations (including violations of certain environmental or export laws) the U.S. Government could suspend us from bidding on or receiving awards of new U.S. Government contracts pending the completion of legal proceedings. If convicted or found liable, the U.S. Government could fine and debar us from new U.S. Government contracting for a period generally not to exceed three years. The U.S. Government also reserves the right to debar a contractor from receiving new government contracts for fraudulent, criminal or other seriously improper conduct. The U.S. Government could void any contracts found to be tainted by fraud. Our contracts with the U.S. Government are also subject to audits. Like many defense contractors, we have received audit reports, which recommend that certain contract prices should be reduced to comply with various government regulations, including because cost or pricing data we submitted in negotiation of the contract prices or cost accounting practices may not have conformed to government regulations, or that certain payments be delayed or withheld. Some of these audit reports involved substantial amounts. We have made voluntary refunds in those cases we believe appropriate, have settled some allegations and, in some cases, continue to negotiate and/or litigate. In addition, we accrue for liabilities associated with those matters that are probable and can be reasonably estimated. The most likely settlement amount to be incurred is accrued based upon a range of estimates. Where no amount within a range of estimates is more likely, then we accrued the minimum amount. Legal Proceedings. Cost Accounting Standards Claims As previously disclosed, in December 2013, a Divisional Administrative Contracting Officer of the United States Defense Contract Management Agency (DCMA) asserted a claim against Pratt & Whitney to recover overpayments of approximately $177 million plus interest (approximately $82.6 million through December 31, 2018). 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. On March 18, 2014, Pratt & Whitney filed an appeal to the Armed Services Board of Contract Appeals (ASBCA). We continue to believe that the claim is without merit and the matter is currently scheduled for trial later this year. On December 18, 2018, a Divisional Administrative Contracting Officer of the DCMA issued a second claim against Pratt & Whitney that similarly alleges that its method of determining the cost of collaborator parts does not comply with the cost accounting standards for calendar years 2013 through 2017. This second claim demands payment of $269 million plus interest (approximately $38.9 million), which we also believe is without merit and which Pratt & Whitney appealed to the ASBCA on January 9, 2019. German Tax Litigation As previously disclosed, UTC has been involved in administrative review proceedings with the German Tax Office, which concern approximately €215 million (approximately $247 million) of tax benefits that we have claimed related to a 1998 reorganization of the corporate structure of Otis operations in Germany. Upon audit, these tax benefits were disallowed by the German Tax Office. UTC estimates interest associated with the aforementioned tax benefits is an additional approximately €118 million (approximately $135 million). On August 3, 2012, we filed suit in the local German Tax Court (Berlin-Brandenburg). In March 2016, the local German Tax Court dismissed our suit, and we appealed this decision to the German Federal Tax Court (FTC). Following a hearing on July 24, 2018, the FTC remanded the matter to the local German Tax Court for further proceedings. In 2015, UTC made tax and interest payments to German tax authorities of €275 million (approximately $300 million) in order to avoid additional interest accruals pending final resolution of this matter. Asbestos Matters As previously disclosed, like many other industrial companies, we and our subsidiaries have been named as defendants in lawsuits alleging personal injury as a result of exposure to asbestos integrated into certain of our products or business premises. While we have never manufactured asbestos and no longer incorporate it in any currently-manufactured products, certain of our historical products, like those of many other manufacturers, have contained components incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or were covered in full or in part by insurance or other forms of indemnity. Additional cases were litigated and settled without any insurance reimbursement. The amounts involved in asbestos related claims were not material individually or in the aggregate in any year. Our estimated total liability to resolve all pending and unasserted potential future asbestos claims through 2059 is approximately $335 million and is principally recorded in Other long-term liabilities on our Consolidated Balance Sheet as of December 31, 2018 . This amount is on a pre-tax basis, not discounted, and excludes the Company’s legal fees to defend the asbestos claims (which will continue to be expensed by the Company as they are incurred). In addition, the Company has an insurance recovery receivable for probable asbestos related recoveries of approximately $155 million , which is included primarily in Other assets on our Consolidated Balance Sheet as of December 31, 2018 . The amounts recorded by UTC for asbestos-related liabilities and insurance recoveries are based on currently available information and assumptions that we believe are reasonable. Our actual liabilities or insurance recoveries could be higher or lower than those recorded if actual results vary significantly from the assumptions. Key variables in these assumptions include the number and type of new claims to be filed each year, the outcomes or resolution of such claims, the average cost of resolution of each new claim, the amount of insurance available, allocation methodologies, the contractual terms with each insurer with whom we have reached settlements, the resolution of coverage issues with other excess insurance carriers with whom we have not yet achieved settlements, and the solvency risk with respect to our insurance carriers. Other factors that may affect our future liability include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, legal rulings that may be made by state and federal courts, and the passage of state or federal legislation. At the end of each year, the Company will evaluate all of these factors and, with input from an outside actuarial expert, make any necessary adjustments to both our estimated asbestos liabilities and insurance recoveries. Other. As described in Note 17 to the Consolidated Financial Statements, we extend performance and operating cost guarantees beyond our normal warranty and service policies for extended periods on some of our products. We have accrued our estimate of the liability that may result under these guarantees and for service costs that are probable and can be reasonably estimated. We also have other commitments and contingent liabilities related to legal proceedings, self-insurance programs and matters arising out of the normal course of business. We accrue contingencies based upon a range of possible outcomes. If no amount within this range is a better estimate than any other, then we accrue the minimum amount. Of note, the design, development, production and support of new aerospace technologies is inherently complex and subject to risk. Since the PurePower PW1000G Geared TurboFan engine entered into service in 2016, technical issues have been identified and experienced with the engine, which is usual for new engines and new aerospace technologies. Pratt & Whitney has addressed these issues through various improvements and modifications. These issues have resulted in financial impacts, including increased warranty provisions, customer contract settlements, and reductions in contract performance estimates. Additional technical issues have been identified, for which a reasonable estimate of the impact cannot currently be made, and such issues may also arise in the normal course, which may result in financial impacts that could be material to the Company’s financial position, results of operations and cash flows. In the ordinary course of business, the Company and its subsidiaries are also routinely defendants in, parties to or otherwise subject to many pending and threatened legal actions, claims, disputes and proceedings. These matters are often based on alleged violations of contract, product liability, warranty, regulatory, environmental, health and safety, employment, intellectual property, tax and other laws. In some of these proceedings, claims for substantial monetary damages are asserted against the Company and its subsidiaries and could result in fines, penalties, compensatory or treble damages or non-monetary relief. We do not believe that these matters will have a material adverse effect upon our competitive position, results of operations, cash flows or financial condition. |
Segment Financial Data
Segment Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Financial Data | SEGMENT FINANCIAL DATA Our operations for the periods presented herein are classified into four principal segments. The segments are generally determined based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services. Otis products include elevators, escalators, moving walkways and service sold to customers in the commercial, residential and infrastructure property sectors around the world. Carrier products and related services include HVAC and refrigeration systems, building controls and automation, fire and special hazard suppression systems and equipment, security monitoring and rapid response systems, provided to a diversified international customer base principally in the industrial, commercial and residential property and commercial transportation sectors. Pratt & Whitney products include commercial, military, business jet and general aviation aircraft engines, parts and services sold to a diversified customer base, including international and domestic commercial airlines and aircraft leasing companies, aircraft manufacturers, and U.S. and foreign governments. Pratt & Whitney also provides product support and a full range of overhaul, repair and fleet management services. Collins Aerospace Systems provides technologically advanced aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military, space and undersea operations. Products include electric power generation, power management and distribution systems, air data and aircraft sensing systems, engine control systems, intelligence, surveillance and reconnaissance systems, engine components, environmental control systems, fire and ice detection and protection systems, propeller systems, engine nacelle systems, including thrust reversers and mounting pylons, interior and exterior aircraft lighting, aircraft seating and cargo systems, actuation systems, landing systems, including landing gear, wheels and brakes, and space products and subsystems, integrated avionics systems, precision targeting, electronic warfare and range and training systems, flight controls, communications systems, navigation systems, oxygen systems, simulation and training systems, food and beverage preparation, storage and galley systems, lavatory and wastewater management systems. Aftermarket services include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and information management services. We have reported our financial and operational results for the periods presented herein under the four principal segments noted above, consistent with how we have reviewed our business operations for decision-making purposes, resource allocation and performance assessment during 2018 . Segment Information. Total sales by segment include intersegment sales, which are generally made at prices approximating those that the selling entity is able to obtain on external sales. Segment information for the years ended December 31 is as follows: Net Sales Operating Profits (dollars in millions) 2018 2017 2016 2018 2017 2016 Otis $ 12,904 $ 12,341 $ 11,893 $ 1,915 $ 2,002 $ 2,125 Carrier 18,922 17,812 16,851 3,777 3,165 2,848 Pratt & Whitney 19,397 16,160 14,894 1,269 1,300 1,501 Collins Aerospace Systems 16,634 14,691 14,465 2,303 2,191 2,167 Total segment 67,857 61,004 58,103 9,264 8,658 8,641 Eliminations and other (1,356 ) (1,167 ) (859 ) (236 ) (81 ) (18 ) General corporate expenses — — — (475 ) (439 ) (402 ) Consolidated $ 66,501 $ 59,837 $ 57,244 $ 8,553 $ 8,138 $ 8,221 Total Assets Capital Expenditures Depreciation & Amortization (dollars in millions) 2018 2017 2016 2018 2017 2016 2018 2017 2016 Otis $ 9,374 $ 9,421 $ 8,867 $ 172 $ 133 $ 94 $ 190 $ 177 $ 171 Carrier 22,189 22,657 21,787 263 326 340 357 372 354 Pratt & Whitney 29,341 26,768 22,971 866 923 725 852 672 550 Collins Aerospace Systems 73,115 34,567 34,093 515 527 452 883 823 807 Total segment 134,019 93,413 87,718 1,816 1,909 1,611 2,282 2,044 1,882 Eliminations and other 192 3,507 1,988 86 105 88 151 96 80 Consolidated $ 134,211 $ 96,920 $ 89,706 $ 1,902 $ 2,014 $ 1,699 $ 2,433 $ 2,140 $ 1,962 Geographic External Sales and Operating Profit. Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. U.S. external sales include export sales to commercial customers outside the U.S. and sales to the U.S. Government, commercial and affiliated customers, which are known to be for resale to customers outside the U.S. Long-lived assets are net fixed assets attributed to the specific geographic regions. External Net Sales Operating Profits Long-Lived Assets (dollars in millions) 2018 2017 2016 2018 2017 2016 2018 2017 2016 United States Operations $ 39,481 $ 33,912 $ 32,335 $ 4,941 $ 4,126 $ 4,304 $ 7,111 $ 5,323 $ 4,822 International Operations Europe 12,857 11,879 11,151 2,141 1,959 1,826 1,908 1,817 1,538 Asia Pacific 8,847 8,770 8,260 1,476 1,491 1,486 1,349 1,113 999 Other 6,672 6,443 6,357 706 1,082 1,025 1,363 1,389 1,325 Eliminations and other (1,356 ) (1,167 ) (859 ) (711 ) (520 ) (420 ) 566 544 474 Consolidated $ 66,501 $ 59,837 $ 57,244 $ 8,553 $ 8,138 $ 8,221 $ 12,297 $ 10,186 $ 9,158 Sales from U.S. operations include export sales as follows: (dollars in millions) 2018 2017 2016 Europe $ 6,285 $ 5,273 $ 5,065 Asia Pacific 5,429 3,634 3,449 Other 2,514 2,217 2,313 $ 14,228 $ 11,124 $ 10,827 Sales by primary geographical market for the year ended December 31, 2018 is as follows: (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Primary Geographical Markets United States $ 3,433 $ 9,402 $ 14,852 $ 11,794 $ 39,481 Europe 4,055 5,710 594 2,498 12,857 Asia Pacific 4,354 2,849 1,277 367 8,847 Other 1,062 961 2,674 1,975 6,672 Total segment $ 12,904 $ 18,922 $ 19,397 $ 16,634 67,857 Eliminations and other (1,356 ) Consolidated $ 66,501 Segment sales disaggregated by product type and product versus service for the year ended December 31, 2018 are as follows: (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Product Type Commercial and industrial, non aerospace $ 12,904 $ 18,922 $ 55 $ 60 $ 31,941 Commercial aerospace — — 14,027 12,564 26,591 Military aerospace — — 5,315 4,010 9,325 Total segment $ 12,904 $ 18,922 $ 19,397 $ 16,634 67,857 Eliminations and other (1,356 ) Consolidated $ 66,501 Sales Type Product $ 5,636 $ 15,682 $ 11,410 $ 13,915 $ 46,643 Service 7,268 3,240 7,987 2,719 21,214 Total segment $ 12,904 $ 18,922 $ 19,397 $ 16,634 67,857 Eliminations and other (1,356 ) Consolidated $ 66,501 Major Customers. Net Sales include sales under prime contracts and subcontracts to the U.S. Government, primarily related to Pratt & Whitney and Collins Aerospace Systems products, as follows: (dollars in millions) 2018 2017 2016 Pratt & Whitney $ 4,489 $ 3,347 $ 3,187 Collins Aerospace Systems 2,779 2,299 2,301 Other 175 152 138 $ 7,443 $ 5,798 $ 5,626 Net sales to Airbus, primarily related to Pratt & Whitney and Collins Aerospace Systems products, were approximately $10,025 million , $8,908 million and $7,688 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data - Unaudited | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information [Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) 2018 Quarters 2017 Quarters (dollars in millions, except per share amounts) First Second Third Fourth First Second Third Fourth Net Sales $ 15,242 $ 16,705 $ 16,510 $ 18,044 $ 13,815 $ 15,280 $ 15,062 $ 15,680 Gross margin 3,962 4,283 3,974 4,297 3,679 4,116 3,956 3,885 Net income attributable to common shareowners 1,297 2,048 1,238 686 1,386 1,439 1,330 397 Earnings per share of Common Stock: Basic - net income $ 1.64 $ 2.59 $ 1.56 $ 0.83 $ 1.75 $ 1.83 $ 1.69 $ 0.50 Diluted - net income $ 1.62 $ 2.56 $ 1.54 $ 0.83 $ 1.73 $ 1.80 $ 1.67 $ 0.50 |
Performance Graph - Unaudited
Performance Graph - Unaudited | 12 Months Ended |
Dec. 31, 2018 | |
Performance Graph [Abstract] | |
Cumulative Total Shareholder Return [Text Block] | PERFORMANCE GRAPH (UNAUDITED) The following graph presents the cumulative total shareholder return for the five years ending December 31, 2018 for our common stock, as compared to the Standard & Poor's 500 Stock Index and to the Dow Jones 30 Industrial Average. Our common stock price is a component of both indices. These figures assume that all dividends paid over the five-year period were reinvested, and that the starting value of each index and the investment in common stock was $100.00 on December 31, 2013 . |
Summary of Accounting Princip_2
Summary of Accounting Principles (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Contract with Customer, Assets and Liabilities [Policy Text Block] | Contract Assets and Liabilities. Contract assets and liabilities represent the difference in the timing of revenue recognition from receipt of cash from our customers. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Performance obligations partially satisfied in advance of customer billings are included in contract assets; prior to the New Revenue Standard, these amounts were included as unbilled receivables in Accounts receivable. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. See Note 3 for further discussion of contract assets and liabilities. |
Consolidation Policy [Text Block] | Consolidation. The Consolidated Financial Statements include the accounts of United Technologies Corporation (UTC) and its controlled subsidiaries. Intercompany transactions have been eliminated. |
Cash And Cash Equivalents Policy [Text Block] | Cash and Cash Equivalents. Cash and cash equivalents includes cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less. |
Cash And Cash Equivalents Restricted Cash And Cash Equivalents Policy | On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions or divestitures or other legal obligations. As of December 31, 2018 and 2017 , the amount of such restricted cash was approximately $60 million and $33 million , respectively |
Accounts Receivable Policy [Text Block] | Accounts Receivable. Current and long-term accounts receivable as of December 31, 2018 includes retainage of $116 million and unbilled receivables of $678 million , which primarily includes unbilled receivables with commercial aerospace customers. Current and long-term accounts receivable as of December 31, 2017 include retainage of $118 million and unbilled receivables of $2,770 million , which includes approximately $1,109 million of unbilled receivables under commercial aerospace long-term aftermarket contracts. See Note 5 for discussion of commercial aerospace industry assets and commitments. Retainage represents amounts that, pursuant to the applicable contract, are not due until project completion and acceptance by the customer. Unbilled receivables represent revenues that are not currently billable to the customer under the terms of the contract. These items are expected to be billed and collected in the normal course of business. |
Marketable Equity Securities Policy | Marketable Equity Securities. Equity securities that have a readily determinable fair value and that we do not intend to trade are classified as available-for-sale and carried at fair value. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . This ASU modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Upon adoption, investments that do not result in consolidation and are not accounted for under the equity method generally must be carried at fair value, with changes in fair value recognized in net income. As discussed in Note 10, we had approximately $5 million of unrealized gains on these securities recorded in Accumulated other comprehensive loss in our Consolidated Balance Sheet as of December 31, 2017. We adopted this standard effective January 1, 2018, with these amounts recorded directly to retained earnings as of that date. |
Inventories and Contracts in Progress Policy Text Block | Inventories and Contracts in Progress. Inventories and contracts in progress are stated at the lower of cost or estimated realizable value and are primarily based on first-in, first-out (FIFO) or average cost methods; however, certain Collins Aerospace Systems and Carrier entities use the last-in, first-out (LIFO) method. If inventories that were valued using the LIFO method had been valued under the FIFO method, they would have been higher by $119 million and $106 million at December 31, 2018 and 2017 , respectively. Valuation reserves for excess, obsolete, and slow-moving inventory are estimated by comparing the inventory levels of individual parts to both future sales forecasts or production requirements and historical usage rates in order to identify inventory where the resale value or replacement value is less than inventoriable cost. Other factors that management considers in determining the adequacy of these reserves include whether individual inventory parts meet current specifications and cannot be substituted for a part currently being sold or used as a service part, overall market conditions, and other inventory management initiatives. Manufacturing costs are allocated to current production and firm contracts. Under prior accounting within commercial aerospace, the unit of accounting for certain contracts was the contract, and early-contract OEM unit costs in excess of the average unit costs expected over the contract were capitalized and amortized over lower-cost units later in the contract. As described in the "Revenue Recognition" section of Note 1 below, these costs were eliminated through retained earnings on January 1, 2018 and will not be amortized into future earnings based on the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers . |
Equity Method Investments Policy [Policy Text Block] | Equity Method Investments. Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other assets on the Consolidated Balance Sheet. Under this method of accounting, our share of the net earnings or losses of the investee is included in Other income, net on the Consolidated Statement of Operations since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. |
Goodwill And Intangible Assets Policy [Text Block] | Goodwill and Intangible Assets. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Goodwill and indefinite‑lived intangible assets are subject to annual impairment testing or when a triggering event occurs using the guidance and criteria described in the Intangibles - Goodwill and Other Topic of the FASB ASC. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. Intangible assets consist of service portfolios, patents, trademarks/tradenames, customer relationships and other intangible assets including a collaboration asset, as discussed further in Note 2. Acquired intangible assets are recognized at fair value in purchase accounting and then amortized to cost of sales and selling, general & administrative expenses over the applicable useful lives. Also included within other intangible assets are commercial aerospace payments made to secure certain contractual rights to provide product on new aircraft platforms. We classify amortization of such payments as a reduction of sales. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. Consideration paid on these contractual commitments is capitalized when it is no longer conditional. Useful lives of finite-lived intangible assets are estimated based upon the nature of the intangible asset and the industry in which the intangible asset is used. These intangible assets are amortized based on the pattern in which the economic benefits of the intangible assets are consumed. For both our commercial aerospace collaboration assets and exclusivity arrangements, the pattern of economic benefit generally results in lower amortization during the development period with increasing amortization as programs enter full rate production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined or if straight-line amortization approximates the pattern of economic benefit, a straight-line amortization method may be used. The range of estimated useful lives is as follows: Collaboration assets 30 years Customer relationships and related programs 1 to 50 years Purchased service contracts 5 to 25 years Patents & trademarks 4 to 40 years Exclusivity assets 5 to 25 years |
Other Long Lived Assets Policy [Text Block] | Other Long-Lived Assets. We evaluate the potential impairment of other long-lived assets whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. If the carrying value of other long-lived assets held and used exceeds the sum of the undiscounted expected future cash flows, the carrying value is written down to fair value. |
Long-Term Financing Receivables Policy [Text Block] | Long-Term Financing Receivables. Our long-term financing receivables primarily represent balances related to the aerospace businesses such as long-term trade accounts receivable, leases, and notes receivable. We also have other long-term receivables in our commercial businesses; however, both the individual and aggregate amounts of those other receivables are not significant. Long-term trade accounts receivable, including unbilled receivables related to long-term aftermarket contracts in 2017, are principally amounts arising from the sale of goods and services with a contractual maturity date or realization period of greater than one year and are recognized as "Other assets" in our Consolidated Balance Sheet. Notes and leases receivable represent notes and lease receivables other than receivables related to operating leases, and are recognized as "Customer financing assets" in our Consolidated Balance Sheet. The following table summarizes the balance by class of aerospace business-related long-term receivables as of December 31, 2018 and 2017 : (dollars in millions) 2018 2017 Long-term trade accounts receivable $ 269 $ 973 Notes and leases receivable 258 424 Total long-term receivables $ 527 $ 1,397 We determine a receivable is impaired when, based on current information and events, it is probable that we will be unable to collect amounts due according to the contractual terms of the receivable agreement. Factors considered in assessing collectability and risk include, but are not limited to, examination of credit quality indicators and other evaluation measures, underlying value of any collateral or security interests, significant past due balances, historical losses, and existing economic conditions. 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 losses on these balances quarterly or when events and circumstances warrant. Customer credit ratings range from customers with an extremely strong capacity to meet financial obligations, to customers whose uncollateralized receivable is in default. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to the allowance for credit losses on long-term receivables. Based upon the customer credit ratings, approximately $150 million and $170 million of our long-term receivables were considered to bear high credit risk as of December 31, 2018 and 2017 , respectively. See Note 5 for further discussion of commercial aerospace industry assets and commitments. Reserves for credit losses on receivables relate to specifically identified receivables that are evaluated individually for impairment. For notes and leases receivable, we determine a specific reserve for exposure based on the difference between the carrying value of the receivable and the estimated fair value of the related collateral in connection with the evaluation of credit risk and collectability. For long-term trade accounts receivable, we evaluate credit risk and collectability individually to determine if an allowance is necessary. Our long-term receivables reflected in the table above, which include reserves of $16 million and $17 million as of December 31, 2018 and 2017 , respectively, are individually evaluated for impairment. At both December 31, 2018 and 2017 , 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. |
Income Tax Policy [Text Block] | Income Taxes. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest expense has also been recognized. We recognize accrued interest related to unrecognized tax benefits in interest expense. Penalties, if incurred, would be recognized as a component of income tax expense. On December 22, 2017 the TCJA was enacted. The TCJA contains a new law that subjects the Company to a tax on Global Intangible Low-Taxed Income (GILTI), beginning in 2018. GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The FASB has 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, if incurred. |
Revenue Recognition Policy | Revenue Recognition. ASU 2014-09 and its related amendments are effective for reporting periods beginning after December 15, 2017. We adopted the New Revenue Standard effective January 1, 2018 and elected the modified retrospective approach. The results for periods before 2018 were not adjusted for the new standard and the cumulative effect of the change in accounting was recognized through retained earnings at the date of adoption. See Note 3 for a discussion of the effect of the New Revenue Standard on our statements of financial position and results of operations. We account for revenue in accordance with Accounting Standards Codification (ASC) Topic 606: Revenue from Contracts with Customers. Under Topic 606, a performance obligation is a promise in a contract with a customer to transfer a distinct good or service to the customer. Some of our contracts with customers contain a single performance obligation, while others contain multiple performance obligations most commonly when a contract spans multiple phases of the product life-cycle such as development, production, maintenance and support. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When there are multiple performance obligations within a contract, we allocate the transaction price to each performance obligation based on its standalone selling price. We consider the contractual consideration payable by the customer and assess variable consideration that may affect the total transaction price, including contractual discounts, contract incentive payments, estimates of award fees, unfunded contract value under U.S. Government contracts, and other sources of variable consideration, when determining the transaction price of each contract. We include variable consideration in the estimated transaction price when there is a basis to reasonably estimate the amount. These estimates are based on historical experience, anticipated performance and our best judgment at the time. We also consider whether our contracts provide customers with significant financing. Generally, our contracts do not contain significant financing. Point in time revenue recognition. 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 heating, ventilating, air-conditioning and refrigeration systems, certain alarm and fire detection and suppression systems, and certain aerospace components, engines, and spare parts. Revenue is recognized when control of the product transfers to the customer, generally upon product shipment. Over-time revenue recognition. Performance obligations are satisfied over-time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being produced, or if the product being produced for the customer has no alternative use and we have a contractual right to payment. Revenue is recognized for our construction-type and certain production-type contracts on an over-time basis. We recognize revenue on an over-time basis on certain long-term aerospace aftermarket contracts and aftermarket service work; development, fixed price, and other cost reimbursement contracts in our aerospace businesses; and elevator and escalator sales, installation, service, modernization and other construction contracts in our commercial businesses. For construction and installation contracts within our commercial businesses and aerospace performance obligations satisfied over time, revenue is recognized 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 include labor, materials, and subcontractors' costs, or other direct costs, and where applicable on government and commercial contracts, indirect costs. For certain of our long-term aftermarket contracts, revenue is recognized over the contract period. In the commercial businesses, revenue is primarily recognized on a straight-line basis over the contract period. In the aerospace businesses, we generally account for such contracts as a series of daily obligations to stand ready to provide spare parts and product maintenance and aftermarket services. These arrangements include the sale of spare parts with integral services to our customers, and are generally classified as Service sales, with the corresponding costs classified in Cost of services sold, within the statement of operations. Revenue is primarily recognized in proportion to cost as sufficient historical evidence indicates that the cost of performing services under the contract is incurred on an other than straight-line basis. Aerospace contract modifications are routine and contracts are often modified to account for changes in contract specifications or requirements. Contract modifications that are for goods or services that are not distinct are accounted for as part of the existing contract. We incur costs for engineering and development of aerospace products directly related to existing or anticipated contracts with customers. Such costs generate or enhance our ability to satisfy our performance obligations under these contracts. We capitalize these costs as contract fulfillment costs to the extent the costs are recoverable from the associated contract margin and subsequently amortize the costs as the original equipment (OEM) products performance obligations are satisfied. In instances where intellectual property does not transfer to the customer, we defer the customer funding of OEM product engineering and development and recognize revenue when the OEM products performance obligations are satisfied. Capitalized contract fulfillment costs are recognized in "Other assets" in our Consolidated Balance Sheet. Costs to obtain contracts are not material. Loss provisions on OEM contracts are recognized to the extent that estimated contract costs exceed the estimated consideration from the products contemplated under the contractual arrangement. For new commitments, we generally record loss provisions at the earlier of contract announcement or contract signing except for certain contracts under which losses are recorded upon receipt of the purchase order that obligates us to perform. For existing commitments, anticipated losses on contractual arrangements are recognized in the period in which losses become evident. Products contemplated under contractual arrangements include firm quantities of product sold under contract and, in the commercial engine and wheels and brakes businesses, future highly probable sales of replacement parts required by regulation that are expected to be sold subsequently for incorporation into the original equipment. In the commercial engine and wheels and brakes businesses, when the combined original equipment and aftermarket arrangement for each individual sales campaign are profitable, we record original equipment product losses, as applicable, at the time of delivery. We review our cost estimates on significant contracts on a quarterly basis and for others, no less frequently than annually or when circumstances change and warrant a modification to a previous estimate. We record changes in contract estimates using the cumulative catch-up method. Operating profits included net unfavorable changes in aerospace contract estimates of approximately $50 million , $110 million , and $157 million in 2018 , 2017 and 2016 , respectively, primarily the result of unexpected increases in estimated costs related to Pratt & Whitney long term aftermarket contracts. Collaborations: Sales generated from engine programs, spare parts sales, and aftermarket business under collaboration arrangements are recorded consistent with our revenue recognition policies in our consolidated financial statements. Amounts attributable to our collaborators for their share of sales are recorded as cost of sales in our consolidated financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement of a collaborator's share of program costs is recorded as a reduction of the related expense item at that time. |
Revenue Recognition, Cash Payments to Customers [Policy Text Block] | Cash Payments to Customers: Carrier customarily offers its customers incentives to purchase products to ensure an adequate supply of its products in the distribution channels. The principal incentive program provides reimbursements to distributors for offering promotional pricing for our products. We account for incentive payments made as a reduction in sales. In our aerospace businesses, we may make participation payments to certain 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. Contractually stated prices in arrangements with our customers that include the acquisition of intangible rights within the scope of the Intangibles - Goodwill and Other Topic of the FASB ASC and deliverables within the scope of the Revenue Recognition Topic of the FASB ASC are not presumed to be representative of fair value for determining the amounts to allocate to each element of an arrangement. |
Research and Development Policy [Text Block] | Research and Development. Research and development costs not specifically covered by contracts and those related to the company sponsored share of research and development activity in connection with cost-sharing arrangements are charged to expense as incurred. Government research and development support, not associated with specific contracts, is recorded as a reduction to research and development expense in the period earned. Research and development costs incurred under contracts with customers are included as a contract cost and reported as a component of cost of products sold when revenue from such contracts is recognized. Research and development costs in excess of contractual consideration are expensed as incurred. |
Foreign Currency Transactions And Translations Policy [Text Block] | Foreign Exchange. We conduct business in many different currencies and, accordingly, are subject to the inherent risks associated with foreign exchange rate movements. The financial position and results of operations of substantially all of our foreign subsidiaries are measured using the local currency as the functional currency. Foreign currency denominated assets and liabilities are translated into U.S. Dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries are deferred as a separate component of shareowners' equity. |
Derivatives and Hedging Activity Policy [Text Block] | Derivatives and Hedging Activity. We have used derivative instruments, including swaps, forward contracts and options, to help manage certain foreign currency, interest rate and commodity price exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. By their nature, all financial instruments involve market and credit risks. We enter into derivative and other financial instruments with major investment grade financial institutions and have policies to monitor the credit risk of those counterparties. We limit counterparty exposure and concentration of risk by diversifying counterparties. While there can be no assurance, we do not anticipate any material non-performance by any of these counterparties. We enter into transactions that are subject to enforceable master netting arrangements or similar agreements with various counterparties. However, we have not elected to offset multiple contracts with a single counterparty and, as a result, the fair value of the derivative instruments in a loss position is not offset against the fair value of derivative instruments in a gain position. Derivatives used for hedging purposes may be designated and effective as a hedge of the identified risk exposure at the inception of the contract. All derivative instruments are recorded on the balance sheet at fair value. Derivatives used to hedge foreign currency denominated balance sheet items are reported directly in earnings along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate. Gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income and reclassified to earnings as a component of product sales or expenses, as applicable, when the hedged transaction occurs. Gains and losses on derivatives designated as cash flow hedges are recorded in Other operating activities, net within the Consolidated Statement of Cash Flows. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period it occurs. As discussed in Note 14, at December 31, 2018 we have approximately €4.95 billion of euro-denominated long-term debt and €750 million of euro-denominated commercial paper borrowings outstanding, which qualify as a net investment hedge against our investments in European businesses. To the extent the hedge accounting criteria are not met, the foreign currency forward contracts are utilized as economic hedges and changes in the fair value of these contracts are recorded currently in earnings in the period in which they occur. Additional information pertaining to foreign currency forward contracts and net investment hedging is included in Note 14. |
Environmental Costs Policy | Environmental . Environmental investigatory, remediation, operating and maintenance costs are accrued when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including existing technology, current laws and regulations and prior remediation experience. Where no amount within a range of estimates is more likely, the minimum is accrued. For sites with multiple responsible parties, we consider our likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their obligations in establishing a provision for those costs. Liabilities with fixed or reliably determinable future cash payments are discounted. Accrued environmental liabilities are not reduced by potential insurance reimbursements. See Note 18 for additional details on the environmental remediation activities. |
Pension and Postretirement Obligations Policy | Pension and Postretirement Obligations. Guidance under the Compensation - Retirement Benefits Topic of the FASB ASC requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Under this guidance, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit cost. |
Product Performance Obligations [Policy Text Block] | Product Performance Obligations. We extend performance and operating cost guarantees beyond our normal service and warranty policies for extended periods on some of our products, particularly commercial aircraft engines. Liability under such guarantees is based upon future product performance and durability. We accrue for such costs that are probable and can be reasonably estimated. In addition, we incur discretionary costs to service our products in connection with product performance issues. The costs associated with these product performance and operating cost guarantees require estimates over the full terms of the agreements, and require management to consider factors such as the extent of future maintenance requirements and the future cost of material and labor to perform the services. These cost estimates are largely based upon historical experience. See Note 17 for further discussion. |
Collaborative Arrangements Policy | Collaborative Arrangements. In view of the risks and costs associated with developing new engines, Pratt & Whitney has entered into certain collaboration arrangements in which sales, costs and risks are shared. Sales generated from engine programs, spare parts, and aftermarket business under collaboration arrangements are recognized in our financial statements when earned. Amounts attributable to our collaborators for their share of sales are recorded as an expense in our financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement of the collaborators' share of program costs is recorded as a reduction of the related expense item at that time. As of December 31, 2018 , the collaborators' interests in all commercial engine programs ranged from 13% to 50% , inclusive of a portion of Pratt & Whitney's interests held by other participants. Pratt & Whitney is the principal participant in all existing collaborative arrangements, with the exception of the Engine Alliance (EA), a joint venture with GE Aviation, which markets and manufactures the GP7000 engine for the Airbus A380 aircraft. There are no individually significant collaborative arrangements and none of the collaborators individually exceed a 31% share in an individual program. The following table illustrates the income statement classification and amounts attributable to transactions arising from the collaborative arrangements between participants for each period presented. Selling, general and administrative amounts for 2016 have been revised to present these amounts on a basis consistent with 2017 and 2018 presentation. (dollars in millions) 2018 2017 2016 Collaborator share of sales: Cost of products sold $ 1,688 $ 1,789 $ 1,700 Cost of services sold 1,765 929 675 Collaborator share of program costs (reimbursement of expenses incurred): Cost of products sold (209 ) (143 ) (108 ) Research and development (225 ) (190 ) (184 ) Selling, general and administrative (87 ) (74 ) (57 ) |
Business Acquisitions, Dispos_2
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Schedule of Goodwill [Table Text Block] | (dollars in millions) Balance as of January 1, 2018 Goodwill resulting from business combinations Foreign currency translation and other Balance as of December 31, 2018 Otis $ 1,737 $ 7 $ (56 ) $ 1,688 Carrier 10,009 194 (368 ) 9,835 Pratt & Whitney 1,511 58 (2 ) 1,567 Collins Aerospace Systems 14,650 20,468 (117 ) 35,001 Total Segments 27,907 20,727 (543 ) 48,091 Eliminations and other 3 18 — 21 Total $ 27,910 $ 20,745 $ (543 ) $ 48,112 |
Intangible Assets Disclosure [Table Text Block] | 2018 2017 (dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Service portfolios $ 2,164 $ (1,608 ) $ 2,178 $ (1,534 ) Patents and trademarks 361 (236 ) 399 (233 ) Collaboration intangible assets 4,509 (649 ) 4,109 (384 ) Customer relationships and other 22,525 (4,560 ) 13,352 (4,100 ) 29,559 (7,053 ) 20,038 (6,251 ) Unamortized: Trademarks and other 3,918 — 2,096 — Total $ 33,477 $ (7,053 ) $ 22,134 $ (6,251 ) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (dollars in millions) 2019 2020 2021 2022 2023 Amortization expense $ 1,476 $ 1,438 $ 1,456 $ 1,464 $ 1,670 |
Rockwell Collins [Member] | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | Supplemental Pro-Forma Data: Rockwell Collins' results of operations have been included in UTC’s financial statements for the period subsequent to the completion of the acquisition on November 26, 2018. Rockwell Collins contributed sales of approximately $778 million and operating profit of approximately $11 million for the period from the completion of the acquisition through December 31, 2018. The following unaudited supplemental pro-forma data presents consolidated information as if the acquisition had been completed on January 1, 2017. The pro-forma results were calculated by combining the results of UTC with the stand-alone results of Rockwell Collins for the pre-acquisition periods, which were adjusted to account for certain costs which would have been incurred during this pre-acquisition period: Year Ended December 31, (dollars in millions, except per share amounts; shares in millions) 2018 2017 Net sales $ 74,136 $ 68,033 Net income attributable to common shareowners from continuing operations $ 6,064 $ 4,662 Basic earnings per share of common stock from continuing operations $ 6.82 $ 5.45 Diluted earnings per share of common stock from continuing operations $ 6.76 $ 5.39 The unaudited supplemental pro-forma data above includes the following significant adjustments made to account for certain costs which would have been incurred if the acquisition had been completed on January 1, 2017, as adjusted for the applicable tax impact. As our acquisition of Rockwell Collins was completed on November 26, 2018, the pro-forma adjustments in the table below only include the required adjustments through November 26, 2018: Year Ended December 31, (dollars in millions) 2018 2017 Amortization of inventory and fixed asset fair value adjustment 1 $ 58 $ (192 ) Amortization of acquired Rockwell Collins intangible assets, net 2 (193 ) (202 ) Utilization of contractual customer obligation 3 16 116 UTC/Rockwell fees for advisory, legal, accounting services 4 212 (212 ) Interest expense incurred on acquisition financing, net 5 (199 ) (234 ) Elimination of capitalized pre-production engineering amortization 6 63 42 Adjustment to net periodic pension cost 7 42 34 Adjustment to reflect the adoption of ASC 606 8 106 — Elimination of entities held for sale 9 (47 ) (35 ) Inclusion of B/E Aerospace 10 — (51 ) $ 58 $ (734 ) 1 Reflects the amortization expense on the Rockwell Collins inventory step up which would be completed within the first two quarters of 2017 and eliminated the inventory step-up amortization recorded by UTC in 2018. Additionally, this adjustment reflects the amortization of the fixed asset fair value adjustment as of the acquisition date. 2 Reflects the additional amortization of the acquired Rockwell Collins intangible assets recognized at fair value in purchase accounting and eliminates the historical Rockwell Collins intangible asset amortization expense. 3 Reflects the additional amortization of liabilities recognized for acquired contracts with terms less favorable than could be realized in market transactions as of the acquisition date and eliminates Rockwell Collins historical amortization of these liabilities. 4 Reflects the elimination of transaction-related fees incurred by UTC and Rockwell Collins in connection with the acquisition and assumes all of the fees were incurred during the first quarter of 2017. 5 Reflects the additional interest expense incurred on debt to finance our acquisition of Rockwell Collins and reduces interest expense for the debt fair value adjustment which would have been amortized. 6 Reflects the elimination of capitalized pre-production engineering amortization to conform to UTC policy. 7 Reflects adjustments for the elimination of amortization of prior service cost and actuarial loss amortization, which was recorded by Rockwell Collins, as a result of fair value purchase accounting, net of the impact of the revised pension and post-retirement benefit (expense) as determined under UTC’s plan assumptions. 8 Reflects adjustments to Rockwell Collins revenue recognition as if they adopted the New Revenue Standard as of January 1, 2018 and primarily relates to deferral of revenue recognized on OEM product engineering and development, partially offset by changes in timing of sales recognition for contracts requiring an over time method of revenue recognition. 9 Reflects the elimination of entities required to be sold for regulatory approvals. 10 Reflects adjustments to include the results and related adjustments for B/E Aerospace as if it had been acquired by Rockwell Collins on January 1, 2017. The unaudited supplemental pro-forma financial information does not reflect the potential realization of cost savings relating to the integration of the two companies. Further, the pro-forma data should not be considered indicative of the results that would have occurred if the acquisition and related financing had been consummated on January 1, 2017, nor are they indicative of future results. |
Business Acquisitions, Dispos_3
Business Acquisitions, Dispositions, Goodwill and Intangible Assets Dispositions (Tables) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
After tax gain on the sale of Taylor Company | $ 591 | |||
Gain on sale of Taylor Company | 799 | $ 0 | $ 0 | |
Proceeds from sale of Taylor Company | 1,000 | |||
Assets held for sale | 175 | |||
Liabilities held for sale | 40 | 0 | ||
Inventories and contracts in progress, net | 10,083 | 9,881 | ||
Property, Plant and Equipment, Net | 12,297 | $ 10,186 | ||
Property, Plant and Equipment [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale | 37 | |||
Inventories [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale | $ 51 | |||
Subsequent Event [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of Entity held for sale | $ 20 |
Business Acquisitions, Dispos_4
Business Acquisitions, Dispositions, Goodwill and Intangible Assets Pro Forma Financial Data (Tables) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 18,044 | $ 16,510 | $ 16,705 | $ 15,242 | $ 15,680 | $ 15,062 | $ 15,280 | $ 13,815 | $ 66,501 | $ 59,837 | $ 57,244 |
Operating Income (Loss) | 8,553 | 8,138 | $ 8,221 | ||||||||
Pro Forma Nonrecurring Adjustment, Inclusion of B/E Aerospace | 0 | (51) | |||||||||
Rockwell Collins [Member] | |||||||||||
Revenues | 778 | ||||||||||
Operating Income (Loss) | 11 | ||||||||||
Business Acquisition, Pro Forma Revenue | 74,136 | 68,033 | |||||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 6,064 | $ 4,662 | |||||||||
Basic Earnings Per Share, Pro Forma | $ 6.82 | $ 5.45 | |||||||||
Diluted Earnings Per Share Pro Forma | $ 6.76 | $ 5.39 | |||||||||
Pro Forma Nonrecurring Adjustment, Amortization of inventory and fixed asset fair value adjustment | $ 58 | $ (192) | |||||||||
Pro Forma Nonrecurring Adjustment, Amortization of acquired Rockwell Collins intangible assets, net | 193 | 202 | |||||||||
Pro Forma Nonrecurring Adjustment, Utilization of contractual customer obligation | 16 | 116 | |||||||||
Pro Forma Nonrecurring Adjustment, UTC/Rockwell fees for advisory, legal, accounting services | 212 | (212) | |||||||||
Pro Forma Nonrecurring Adjustment, Interest expense incurred on acquisition financing, net | (199) | (234) | |||||||||
Pro Forma Nonrecurring Adjustment, Elimination of capitalized pre-production engineering amortization | 63 | 42 | |||||||||
Pro Forma Nonrecurring Adjustment, Adjustment to net periodic pension cost | 42 | 34 | |||||||||
Pro Forma Nonrecurring Adjustment, Adjustment to reflect the adoption of ASC 606 | 106 | 0 | |||||||||
Pro Forma Nonrecurring Adjustment, Elimination of entities held for sale | (47) | (35) | |||||||||
Pro Forma Nonrecurring Adjustments, Net | $ 58 | $ (734) |
Revenue Recognition Contract As
Revenue Recognition Contract Asset & Liability (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Assets and Liabilities. Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. Total contract assets and contract liabilities as of December 31, 2018 are as follows: (dollars in millions) December 31, 2018 Contract assets, current $ 3,486 Contract assets, noncurrent (included within Other assets) 1,142 Total contract assets 4,628 Contract liabilities, current (5,720 ) Contract liabilities, noncurrent (included within Other long-term liabilities) (5,069 ) Total contract liabilities (10,789 ) Net contract liabilities $ (6,161 ) We established contract assets of $3,609 million in connection with our adoption of the New Revenue Standard on January 1, 2018. Contract assets increased $1,019 million from January 1, 2018 to December 31, 2018 as a result of the acquisition of Rockwell Collins ( $308 million ) and due to revenue recognition in excess of customer billings, primarily on Pratt & Whitney commercial aftermarket and military engines contracts. We established contract liabilities of $9,974 million in connection with our adoption of the New Revenue Standard. Contract liabilities increased $815 million from January 1, 2018 through December 31, 2018, as a result of the acquisition of Rockwell Collins ( $313 million ) and due to customer billings in excess of revenue on Otis new equipment contracts and on Pratt & Whitney commercial aftermarket contracts. We recognized revenue of $4,211 million related to contract liabilities as of January 1, 2018. |
Revenue Recognition Remaining P
Revenue Recognition Remaining Performance Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Remaining Performance Obligations [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remaining performance obligations ("RPO") are the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied. As of December 31, 2018 , our total RPO is approximately $115.5 billion . Of this total, we expect approximately 46% will be recognized as sales over the following 24 months. |
Revenue Recognition Financial S
Revenue Recognition Financial Statement Supplementals - Rev Rec (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Statement Supplementals - Rev Rec [Abstract] | |
Additional Financial Information Disclosure [Text Block] | The following schedules quantify the impact of the New Revenue Standard on the statement of operations for the year ended December 31, 2018 . The effect of the new standard represents the increase (decrease) in the line item based on the adoption of the New Revenue Standard. (dollars in millions) Year Ended December 31, 2018, under previous standard 1 Effect of the New Revenue Standard Year Ended December 31, 2018 as reported Net Sales: Product sales $ 45,128 $ 306 $ 45,434 Service sales 20,821 246 21,067 65,949 552 66,501 Costs and Expenses: Cost of products sold 36,481 273 36,754 Cost of services sold 13,068 163 13,231 Research and development 2,549 (87 ) 2,462 Selling, general and administrative 7,066 — 7,066 59,164 349 59,513 Other income, net 1,573 (8 ) 1,565 Operating profit 8,358 195 8,553 Non-service pension (benefit) (765 ) — (765 ) Interest expense, net 1,038 — 1,038 Income from operations before income taxes 8,085 195 8,280 Income tax expense 2,577 49 2,626 Net income from operations 5,508 146 5,654 Less: Noncontrolling interest in subsidiaries' earnings from operations 380 5 385 Net income attributable to common shareowners $ 5,128 $ 141 $ 5,269 1 Includes the as reported results of Rockwell Collins. Because Rockwell Collins adopted the New Revenue Standard prior to the merger, its reported results have been excluded from the quantification of the effect of the New Revenue Standard shown above for the period from November 26, 2018 through December 31, 2018. The New Revenue Standard resulted in an increase to Product and Service sales and Cost of products and services sold primarily due to the change to an over-time revenue model for certain U.S Government and commercial aerospace equipment contracts, and aerospace aftermarket service work at Pratt & Whitney and Collins Aerospace Systems. The New Revenue Standard also resulted in an increase in Cost of products sold primarily related to the timing of manufacturing cost recognition on early-contract OEM units sold, with costs in excess of the contract average unit costs recorded through Cost of products sold. The lower amounts of research and development expense recognized under the New Revenue Standard reflect the capitalization of costs of engineering and development of aerospace products as contract fulfillment costs under contracts with customers to the extent recoverable. The following schedule quantifies the impact of the New Revenue Standard on our balance sheet as of December 31, 2018 . (dollars in millions) December 31, 2018 under previous standard 1 Effect of the New Revenue Standard December 31, 2018 as reported Assets Accounts receivable, net $ 15,636 $ (1,365 ) $ 14,271 Contract assets, current 331 3,155 3,486 Inventories 12,169 (2,086 ) 10,083 Other assets, current 1,519 (8 ) 1,511 Future income tax benefits 1,614 32 1,646 Intangible assets, net 26,495 (71 ) 26,424 Other assets 6,056 1,150 7,206 Liabilities and Equity Accrued liabilities $ 15,522 $ (5,299 ) $ 10,223 Contract liabilities, current 345 5,375 5,720 Other long term liabilities 15,841 1,073 16,914 Noncontrolling interest 2,158 6 2,164 Retained earnings 58,162 (339 ) 57,823 1 Includes the as reported balance sheet amounts of Rockwell Collins. Because Rockwell Collins adopted the New Revenue Standard prior to the merger, its reported balance sheet amounts have been excluded from the quantification of the effect of the New Revenue Standard shown above. The decrease in Retained earnings of $339 million in the table above reflects $480 million of adjustments to the balance sheet as of January 1, 2018, resulting from the adoption of the New Revenue Standard and $141 million higher reported net income under the New Revenue Standard during 2018. The declines in Accounts receivable, net, Inventories, Other assets, current, and Intangible assets, net, reflect reclassifications to contract assets, and specifically for Inventories, earlier recognition of costs of products sold for contracts requiring an over-time method of revenue recognition. The increase in Other assets reflects the establishment of non-current contract assets and contract fulfillment cost assets. Capitalized net contract fulfillment costs as of December 31, 2018 are $914 million . The decline in accrued liabilities is primarily due to the reclassification of payments from customers in advance of work performed as contract liabilities. The Other long term liabilities increase primarily reflects the establishment of non-current contract liabilities for certain customer funding of OEM product engineering and development, which will be recognized as revenue when the OEM products are delivered to the customer. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | (dollars in millions, except per share amounts; shares in millions) 2018 2017 2016 Net income attributable to common shareowners: Net income from continuing operations $ 5,269 $ 4,552 $ 5,065 Net loss from discontinued operations — — (10 ) Net income attributable to common shareowners $ 5,269 $ 4,552 $ 5,055 Basic weighted average number of shares outstanding 800.4 790.0 818.2 Stock awards and equity units (share equivalent) 9.7 9.1 7.9 Diluted weighted average number of shares outstanding 810.1 799.1 826.1 Earnings Per Share of Common Stock—Basic: Net income from continuing operations $ 6.58 $ 5.76 $ 6.19 Net loss from discontinued operations — — (0.01 ) Net income attributable to common shareowners 6.58 5.76 6.18 Earnings Per Share of Common Stock—Diluted: Net income from continuing operations $ 6.50 $ 5.70 $ 6.13 Net loss from discontinued operations — — (0.01 ) Net income attributable to common shareowners 6.50 5.70 6.12 |
Commercial Aerospace Industry_2
Commercial Aerospace Industry Assets and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Commitments [Abstract] | |
Commercial Aerospace Industry Assets and Commitments [Table Text Block] | The following is the expected maturity of commercial aerospace industry assets and commitments as of December 31, 2018 : (dollars in millions) Committed 2019 2020 2021 2022 2023 Thereafter Notes and leases receivable $ 299 $ 25 $ 97 $ 53 $ 22 $ 23 $ 79 Commercial aerospace financing commitments $ 4,556 $ 862 $ 709 $ 1,001 $ 873 $ 640 $ 471 Other commercial aerospace commitments 10,914 815 706 673 708 585 7,427 Collaboration partners' share (5,261 ) (468 ) (448 ) (562 ) (513 ) (412 ) (2,858 ) Total commercial commitments $ 10,209 $ 1,209 $ 967 $ 1,112 $ 1,068 $ 813 $ 5,040 |
Inventories and Contracts in _2
Inventories and Contracts in Progress (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Table [Table Text Block] | (dollars in millions) 2018 2017 Raw materials $ 3,052 $ 2,038 Work-in-process 2,673 3,366 Finished goods 4,358 3,845 Contracts in progress — 10,205 10,083 19,454 Less: Progress payments, secured by lien, on U.S. Government contracts — (236 ) Billings on contracts in progress — (9,337 ) $ 10,083 $ 9,881 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets [Text Block] | (dollars in millions) Estimated 2018 2017 Land $ 425 $ 412 Buildings and improvements 12-40 years 6,486 5,727 Machinery, tools and equipment 3-20 years 15,119 13,476 Other, including assets under construction 2,054 1,749 24,084 21,364 Accumulated depreciation (11,787 ) (11,178 ) $ 12,297 $ 10,186 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities Table [Text Block] | (dollars in millions) 2018 2017 Advances on sales contracts and service billings $ — $ 4,547 Accrued salaries, wages and employee benefits 2,074 1,741 Service and warranty accruals 754 629 Interest payable 637 439 Litigation and contract matters 461 435 Income taxes payable 460 285 Accrued property, sales and use taxes 277 258 Canadian government settlement - current portion 34 217 Accrued restructuring costs 249 212 Accrued workers compensation 142 204 Liabilities held for sale 40 — Other 5,095 3,349 $ 10,223 $ 12,316 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Table Text Block] | (dollars in millions) 2018 2017 Short-term borrowings: Commercial paper $ 1,257 $ 300 Other borrowings 212 92 Total short-term borrowings $ 1,469 $ 392 |
Schedule of Weighted average interest rates [Table Text Block] | The weighted-average interest expense rates applicable to short-term borrowings and total debt were as follows: 2018 2017 Average interest expense rate - average outstanding borrowings during the year: Short-term borrowings 1.5 % 1.1 % Total debt 3.5 % 3.5 % Average interest expense rate - outstanding borrowings as of December 31: Short-term borrowings 1.2 % 2.3 % Total debt 3.5 % 3.5 % |
Long-term Debt [Table Text Block] | (dollars in millions) 2018 2017 6.800% notes due 2018 $ — $ 99 EURIBOR plus 0.80% floating rate notes due 2018 (€750 million principal value) 2 — 890 1.778% junior subordinated notes due 2018 — 1,100 LIBOR plus 0.350% floating rate notes due 2019 3 350 350 1.500% notes due 2019 1 650 650 1.950% notes due 2019 4 300 — EURIBOR plus 0.15% floating rate notes due 2019 (€750 million principal value) 2 858 890 5.250% notes due 2019 4 300 — 8.875% notes due 2019 271 271 4.875% notes due 2020 1 171 171 4.500% notes due 2020 1 1,250 1,250 1.900% notes due 2020 1 1,000 1,000 EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value) 2 858 — 8.750% notes due 2021 250 250 3.100% notes due 2021 4 250 — 3.350% notes due 2021 1 1,000 — LIBOR plus 0.650% floating rate notes due 2021 1,3 750 — 1.950% notes due 2021 1 750 750 1.125% notes due 2021 (€950 million principal value) 1 1,088 1,127 2.300% notes due 2022 1 500 500 2.800% notes due 2022 4 1,100 — 3.100% notes due 2022 1 2,300 2,300 1.250% notes due 2023 (€750 million principal value) 1 858 890 3.650% notes due 2023 1 2,250 — 3.700% notes due 2023 4 400 — 2.800% notes due 2024 1 800 800 3.200% notes due 2024 4 950 — 1.150% notes due 2024 (€750 million principal value) 1 858 — 3.950% notes due 2025 1 1,500 — 1.875% notes due 2026 (€500 million principal value) 1 573 593 2.650% notes due 2026 1 1,150 1,150 3.125% notes due 2027 1 1,100 1,100 3.500% notes due 2027 4 1,300 — 7.100% notes due 2027 141 141 6.700% notes due 2028 400 400 4.125% notes due 2028 1 3,000 — 7.500% notes due 2029 1 550 550 2.150% notes due 2030 (€500 million principal value) 1 573 — 5.400% notes due 2035 1 600 600 6.050% notes due 2036 1 600 600 6.800% notes due 2036 1 134 134 7.000% notes due 2038 159 159 6.125% notes due 2038 1 1,000 1,000 4.450% notes due 2038 1 750 — 5.700% notes due 2040 1 1,000 1,000 4.500% notes due 2042 1 3,500 3,500 4.800% notes due 2043 4 400 — 4.150% notes due 2045 1 850 850 3.750% notes due 2046 1 1,100 1,100 4.050% notes due 2047 1 600 600 4.350% notes due 2047 4 1,000 — 4.625% notes due 2048 1 1,750 — Project financing obligations 287 158 Other (including capitalized leases) 287 195 Total principal long-term debt 44,416 27,118 Other (fair market value adjustments, discounts and debt issuance costs) (348 ) (25 ) Total long-term debt 44,068 27,093 Less: current portion 2,876 2,104 Long-term debt, net of current portion $ 41,192 $ 24,989 1 We may redeem these notes at our option pursuant to their terms. 2 The three-month EURIBOR rate as of December 31, 2018 was approximately -0.309%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. 3 The three-month LIBOR rate as of December 31, 2018 was approximately 2.808%. 4 Rockwell Collins debt which remained outstanding following the Merger. |
Schedule of Debt Issuances and Repayments [Table Text Block] | We had the following issuances of debt in 2018 and 2017 . (dollars in millions) Issuance Date Description of Notes Aggregate Principal Balance August 16, 2018: 3.350% notes due 2021 1 $ 1,000 3.650% notes due 2023 1 2,250 3.950% notes due 2025 1 1,500 4.125% notes due 2028 1 3,000 4.450% notes due 2038 1 750 4.625% notes due 2048 2 1,750 LIBOR plus 0.65% floating rate notes due 2021 1 750 May 18, 2018: 1.150% notes due 2024 3 € 750 2.150% notes due 2030 3 500 EURIBOR plus 0.20% floating rate notes due 2020 3 750 November 13, 2017: EURIBOR plus 0.15% floating rate notes due 2019 2 € 750 May 4, 2017: 1.900% notes due 2020 4 $ 1,000 2.300% notes due 2022 4 500 2.800% notes due 2024 4 800 3.125% notes due 2027 4 1,100 4.050% notes due 2047 4 600 1 The net proceeds received from these debt issuances were used to partially finance the cash consideration portion of the purchase price for Rockwell Collins and fees, expenses and other amounts related to the acquisition of Rockwell Collins. 2 The net proceeds from these debt issuances were used to fund the repayment of commercial paper and for other general corporate purposes. 3 The net proceeds received from these debt issuances were used for general corporate purposes. 4 The net proceeds received from these debt issuances were used to fund the repayment at maturity of our 1.800% notes due 2017, representing $1.5 billion in aggregate principal and other general corporate purposes. We made the following repayments of debt in 2018 and 2017 : (dollars in millions) Repayment Date Description of Notes Aggregate Principal Balance December 14, 2018 Variable-rate term loan due 2020 (1 month LIBOR plus 1.25%) 1 $ 482 May 4, 2018 1.778% junior subordinated notes $ 1,100 February 22, 2018 EURIBOR plus 0.80% floating rate notes € 750 February 1, 2018 6.80% notes $ 99 June 1, 2017 1.800% notes $ 1,500 1 This term loan was assumed in connection with the Rockwell Collins acquisition and subsequently repaid. |
Schedule of Principal Payments on Long-term Debt [Table Text Block] | (dollars in millions) 2019 $ 2,876 2020 3,436 2021 4,151 2022 3,910 2023 3,523 Thereafter 26,520 Total $ 44,416 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | A summary of the changes in each component of Accumulated other comprehensive (loss) income, net of tax for the years ended December 31, 2018 and 2017 is provided below: (dollars in millions) Foreign Currency Translation Defined Benefit Pension and Postretirement Plans Unrealized Gains (Losses) on Available-for- Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2016 $ (3,480 ) $ (5,045 ) $ 353 $ (162 ) $ (8,334 ) Other comprehensive income before reclassifications, net 540 78 3 264 885 Amounts reclassified, pre-tax (10 ) 529 (566 ) (39 ) (86 ) Tax (expense) benefit reclassified — (214 ) 215 9 10 Balance at December 31, 2017 $ (2,950 ) $ (4,652 ) $ 5 $ 72 $ (7,525 ) Other comprehensive loss before reclassifications, net (486 ) (1,736 ) — (307 ) (2,529 ) Amounts reclassified, pre-tax (2 ) 344 — (16 ) 326 Tax (expense) benefit reclassified (4 ) 326 — 78 400 ASU 2016-01 adoption impact — — (5 ) — (5 ) Balance at December 31, 2018 $ (3,442 ) $ (5,718 ) $ — $ (173 ) $ (9,333 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The effect of the retrospective presentation change related to the net periodic benefit cost of our defined benefit pension and postretirement plans on our consolidated statement of operations was as follows: 2017 (dollars in millions) Previously Reported Effect of Change Higher/(Lower) As Revised Cost of product sold $ 31,027 $ 197 $ 31,224 Cost of services sold 12,926 51 12,977 Research and development 2,387 40 2,427 Selling, general and administrative 6,183 246 6,429 Non-service pension (benefit) — (534 ) (534 ) 2016 (dollars in millions) Previously Reported Effect of Change Higher/(Lower) As Revised Cost of product sold $ 30,325 $ (21 ) $ 30,304 Cost of services sold 11,135 32 11,167 Research and development 2,337 39 2,376 Selling, general and administrative 6,060 (102 ) 5,958 Other income 785 (3 ) 782 Non-service pension cost — 49 49 |
Schedule Of Multiemployer Plans Table [Text Block] | (dollars in millions) Pension Protection Act Zone Status FIP/ RP Status Contributions Pension Fund EIN/Pension Plan Number 2018 2017 Pending/ Implemented 2018 2017 2016 Surcharge Imposed Expiration Date of Collective-Bargaining Agreement National Elevator Industry Pension Plan 23-2694291 Green Green No $ 120 $ 114 $ 100 No July 8, 2022 Other funds 31 31 31 $ 151 $ 145 $ 131 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | We measure the cost of all share-based payments, including stock options, at fair value on the grant date and recognize this cost in the Consolidated Statement of Operations as follows: (dollars in millions) 2018 2017 2016 Continuing operations $ 251 $ 192 $ 152 Discontinued operations — — 1 Total compensation cost recognized $ 251 $ 192 $ 153 |
Schedule of Stock Options Roll Forward [Table Text Block] | A summary of the transactions under all long-term incentive plans for the year ended December 31, 2018 follows: Stock Options Stock Appreciation Rights Performance Share Units Other Incentive Shares/Units (shares and units in thousands) Shares Average Price* Shares Average Price* Units Average Price** Outstanding at: December 31, 2017 1,745 $ 94.35 32,722 $ 92.54 1,876 $ 106.38 2,182 Granted 1 255 126.94 4,579 127.37 598 128.20 992 Exercised / earned (389 ) 92.52 (4,781 ) 74.47 (181 ) 115.08 (406 ) Cancelled (8 ) 111.87 (454 ) 110.50 (487 ) 114.99 (72 ) Other - Rockwell Collins 2 — $ — — $ — — $ — 351 December 31, 2018 1,603 $ 99.89 32,066 $ 99.95 1,806 $ 110.41 3,047 * weighted-average exercise price ** weighted-average grant stock price |
Disclosure Of Share Based Compensation Arrangements By Share Based Payment Award Text Block | The following table summarizes information about equity awards outstanding that are vested and expected to vest and equity awards outstanding that are exercisable at December 31, 2018 : Equity Awards Vested and Expected to Vest Equity Awards That Are Exercisable (shares in thousands; aggregate intrinsic value in millions) Awards Average Price* Aggregate Intrinsic Value Remaining Term** Awards Average Price* Aggregate Intrinsic Value Remaining Term** Stock Options/Stock Appreciation Rights 33,059 $ 98.97 $ 407 5.4 years 21,761 $ 92.08 $ 365 4.0 years Performance Share Units/Restricted Stock 1 4,821 — 513 1.7 years * weighted-average exercise price per share ** weighted-average contractual remaining term in years |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table indicates the assumptions used in estimating fair value for the years ended December 31, 2018, 2017 and 2016 . Lattice-based option models incorporate ranges of assumptions for inputs; those ranges are as follows: 2018 2017 2016 Expected volatility 17.5% - 21.1% 19 % 20 % Weighted-average volatility 18 % 19 % 20 % Expected term (in years) 6.5 - 6.6 6.5 6.5 Expected dividend yield 2.2 % 2.4 % 2.7 % Risk-free rate 1.3% - 2.7% 0.5% - 2.5% 0.2% - 2.6% |
Pension Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Text Block] | (dollars in millions) 2018 2017 Change in Benefit Obligation: Beginning balance $ 36,999 $ 34,923 Service cost 372 374 Interest cost 1,117 1,120 Actuarial (gain) loss (2,048 ) 1,804 Total benefits paid (1,932 ) (1,782 ) Net settlement, curtailment and special termination benefits (38 ) (49 ) Plan amendments 65 4 Business combinations 3,694 — Other (434 ) 605 Ending balance $ 37,795 $ 36,999 Change in Plan Assets: Beginning balance $ 35,689 $ 30,555 Actual return on plan assets (1,667 ) 4,258 Employer contributions 238 2,188 Benefits paid (1,932 ) (1,782 ) Settlements (38 ) (41 ) Business combinations 3,355 — Other (392 ) 511 Ending balance $ 35,253 $ 35,689 Funded Status: Fair value of plan assets $ 35,253 $ 35,689 Benefit obligations (37,795 ) (36,999 ) Funded status of plan $ (2,542 ) $ (1,310 ) Amounts Recognized in the Consolidated Balance Sheet Consist of: Noncurrent assets $ 686 $ 957 Current liability (88 ) (70 ) Noncurrent liability (3,140 ) (2,197 ) Net amount recognized $ (2,542 ) $ (1,310 ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial loss $ 8,606 $ 7,238 Prior service cost 139 37 Net amount recognized $ 8,745 $ 7,275 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | Information for pension plans with accumulated benefit obligations in excess of plan assets: (dollars in millions) 2018 2017 Projected benefit obligation $ 25,884 $ 22,360 Accumulated benefit obligation 25,455 22,159 Fair value of plan assets 22,803 20,438 |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | Information for pension plans with projected benefit obligations in excess of plan assets: (dollars in millions) 2018 2017 Projected benefit obligation $ 28,591 $ 27,211 Accumulated benefit obligation 27,968 26,560 Fair value of plan assets 25,362 24,944 |
Schedule of Net Benefit Costs [Table Text Block] | The components of the net periodic pension (benefit) cost are as follows: (dollars in millions) 2018 2017 2016 Pension Benefits: Service cost $ 372 $ 374 $ 383 Interest cost 1,117 1,120 1,183 Expected return on plan assets (2,255 ) (2,215 ) (2,202 ) Amortization of prior service credit (41 ) (36 ) (33 ) Recognized actuarial net loss 401 575 572 Net settlement, curtailment and special termination benefits loss 1 3 498 Net periodic pension (benefit) cost - employer $ (405 ) $ (179 ) $ 401 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2018 are as follows: (dollars in millions) Current year actuarial loss $ 1,871 Amortization of actuarial loss (401 ) Current year prior service cost 65 Amortization of prior service credit 41 Net settlement and curtailment loss 2 Other (108 ) Total recognized in other comprehensive loss $ 1,470 Net recognized in net periodic pension (benefit) cost and other comprehensive loss $ 1,065 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension (benefit) cost in 2019 is as follows: (dollars in millions) Net actuarial loss $ 214 Prior service cost 17 $ 231 |
Schedule of Assumptions Used [Table Text Block] | Major assumptions used in determining the benefit obligation and net cost for pension plans are presented in the following table as weighted-averages: Benefit Obligation Net Cost 2018 2017 2018 2017 2016 Discount rate PBO 4.0 % 3.4 % 3.4 % 3.8 % 4.1 % Interest cost 1 — — 3.0 % 3.3 % 3.4 % Service cost 1 — — 3.3 % 3.6 % 3.8 % Salary scale 4.2 % 4.2 % 4.2 % 4.1 % 4.2 % Expected return on plan assets — — 6.8 % 7.3 % 7.3 % Note 1 The discount rates used to measure the service cost and interest cost applies to our significant plans. The PBO discount rate is used for the service cost and interest cost measurements for non-significant plans. |
Schedule of Allocation of Plan Assets [Table Text Block] | The fair values of pension plan assets at December 31, 2018 and 2017 by asset category are as follows: (dollars in millions) Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling Total Asset Category: Public Equities Global Equities $ 2,917 $ 4 $ — $ — $ 2,921 Global Equity Commingled Funds 1 185 426 — — 611 Enhanced Global Equities 2 79 605 — — 684 Global Equity Funds at net asset value 8 — — — 7,386 7,386 Private Equities 3,8 — — 133 1,194 1,327 Fixed Income Securities Governments 1,789 162 — — 1,951 Corporate Bonds — 11,527 18 29 11,574 Fixed Income Securities 8 — — — 3,599 3,599 Real Estate 4,8 — 13 1,387 429 1,829 Other 5,8 — 262 — 2,368 2,630 Cash & Cash Equivalents 6,8 — 220 — 138 358 Subtotal $ 4,970 $ 13,219 $ 1,538 $ 15,143 34,870 Other Assets & Liabilities 7 383 Total at December 31, 2018 $ 35,253 Public Equities Global Equities $ 3,129 $ 3 $ — $ — $ 3,132 Global Equity Commingled Funds 1 — 1,084 — — 1,084 Enhanced Global Equities 2 213 819 — — 1,032 Global Equity Funds at net asset value 8 — — — 7,599 7,599 Private Equities 3,8 — — 46 1,170 1,216 Fixed Income Securities Governments 1,445 69 — — 1,514 Corporate Bonds — 10,929 — — 10,929 Fixed Income Securities 8 — — — 3,519 3,519 Real Estate 4,8 — 15 1,446 396 1,857 Other 5,8 — 287 — 2,509 2,796 Cash & Cash Equivalents 6,8 — 79 — 498 577 Subtotal $ 4,787 $ 13,285 $ 1,492 $ 15,691 35,255 Other Assets & Liabilities 7 434 Total at December 31, 2017 $ 35,689 Note 1 Represents commingled funds that invest primarily in common stocks. Note 2 Represents enhanced equity separate account and commingled fund portfolios. A portion of the portfolio may include long-short market neutral and relative value strategies that invest in publicly traded, equity and fixed income securities, as well as derivatives of equity and fixed income securities and foreign currency. Note 3 Represents limited partner investments with general partners that primarily invest in debt and equity. Note 4 Represents investments in real estate including commingled funds and directly held properties. Note 5 Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities. Note 6 Represents short-term commercial paper, bonds and other cash or cash-like instruments. Note 7 Represents trust receivables and payables that are not leveled. Note 8 In accordance with ASU 2015-07, Fair Value Measurement (Topic 820) , certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed due to the following: (dollars in millions) Private Equities Corporate Bonds Real Estate Total Balance, December 31, 2016 $ 122 $ — $ 1,285 $ 1,407 Realized gains 61 — 31 92 Unrealized (losses) gains relating to instruments still held in the reporting period (47 ) — 17 (30 ) Purchases, sales, and settlements, net (90 ) — 113 23 Balance, December 31, 2017 46 — 1,446 1,492 Plan assets acquired — 33 — 33 Realized (losses) gains — (1 ) 10 9 Unrealized gains relating to instruments still held in the reporting period — 2 38 40 Purchases, sales, and settlements, net 87 (16 ) (107 ) (36 ) Balance, December 31, 2018 $ 133 $ 18 $ 1,387 $ 1,538 |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Text Block] | (dollars in millions) 2018 2017 Change in Benefit Obligation: Beginning balance $ 767 $ 805 Service cost 2 2 Interest cost 26 29 Actuarial gain (52 ) (4 ) Total benefits paid (70 ) (87 ) Business combinations 186 — Plan amendments (43 ) (6 ) Other (6 ) 28 Ending balance $ 810 $ 767 Change in Plan Assets: Beginning balance $ — $ — Employer contributions 69 71 Benefits paid (70 ) (87 ) Business combinations 20 — Other 1 16 Ending balance $ 20 $ — Funded Status: Fair value of plan assets $ 20 $ — Benefit obligations (810 ) (767 ) Funded status of plan $ (790 ) $ (767 ) Amounts Recognized in the Consolidated Balance Sheet Consist of: Current liability $ (61 ) $ (72 ) Noncurrent liability (729 ) (695 ) Net amount recognized $ (790 ) $ (767 ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial gain $ (184 ) $ (143 ) Prior service credit (47 ) (10 ) Net amount recognized $ (231 ) $ (153 ) |
Schedule of Net Benefit Costs [Table Text Block] | The components of net periodic benefit cost are as follows: (dollars in millions) 2018 2017 2016 Other Postretirement Benefits: Service cost $ 2 $ 2 $ 3 Interest cost 26 29 34 Amortization of prior service credit (6 ) (1 ) — Recognized actuarial net gain (10 ) (9 ) (4 ) Net periodic other postretirement benefit cost $ 12 $ 21 $ 33 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2018 are as follows: (dollars in millions) Current year actuarial gain $ (52 ) Current year prior service credit (43 ) Amortization of prior service credit 6 Amortization of actuarial net gain 10 Other 1 Total recognized in other comprehensive loss $ (78 ) Net recognized in net periodic other postretirement benefit cost and other comprehensive loss $ (66 ) |
Schedule of Assumptions Used [Table Text Block] | Major assumptions used in determining the benefit obligation and net cost for postretirement plans are presented in the following table as weighted-averages: Benefit Obligation Net Cost 2018 2017 2018 2017 2016 Discount rate 4.1 % 3.4 % 3.4 % 3.8 % 4.0 % Expected return on assets — — 7.0 % N/A N/A |
Schedule of Health Care Cost Trend Rates [Table Text Block] | Assumed health care cost trend rates are as follows: 2018 2017 Health care cost trend rate assumed for next year 7.0 % 7.0 % Rate that the cost trend rate gradually declines to 5.0 % 5.0 % Year that the rate reaches the rate it is assumed to remain at 2026 2026 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | A one-percentage-point change in assumed health care cost trend rates would have the following effects: 2018 One-Percentage-Point (dollars in millions) Increase Decrease Effect on total service and interest cost $ 1 $ (1 ) Effect on postretirement benefit obligation 32 (28 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Consolidated Financial Statements [Abstract] | |
Schedule of Income before Income Tax Domestic and Foreign [Table Text Block] | The sources of income from continuing operations before income taxes are: (dollars in millions) 2018 2017 2016 United States $ 3,630 $ 2,990 $ 2,534 Foreign 4,650 4,773 4,599 $ 8,280 $ 7,763 $ 7,133 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax expense (benefit) for the years ended December 31, 2018, 2017 and 2016 consisted of the following components: (dollars in millions) 2018 2017 2016 Current: United States: Federal $ 442 $ 1,577 $ 30 State 211 64 (21 ) Foreign 1,238 1,140 1,290 1,891 2,781 1,299 Future: United States: Federal 57 (27 ) 318 State 62 84 134 Foreign 616 5 (54 ) 735 62 398 Income tax expense $ 2,626 $ 2,843 $ 1,697 Attributable to items credited (charged) to equity $ 501 $ (128 ) $ (299 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows: 2018 2017 2016 Statutory U.S. federal income tax rate 21.0 % 35.0 % 35.0 % Tax on international activities 0.9 % (6.4 )% (8.1 )% Tax audit settlements — % (0.7 )% (2.9 )% U.S. tax reform 9.0 % 8.9 % — Other 0.8 % (0.2 )% (0.2 )% Effective income tax rate 31.7 % 36.6 % 23.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2018 and 2017 are as follows: (dollars in millions) 2018 2017 Future income tax benefits: Insurance and employee benefits $ 1,154 $ 928 Other asset basis differences 1,013 798 Other liability basis differences 1,482 1,158 Tax loss carryforwards 583 544 Tax credit carryforwards 1,050 948 Valuation allowances (605 ) (582 ) $ 4,677 $ 3,794 Future income taxes payable: Intangible assets $ 4,462 $ 2,100 Other asset basis differences 2,159 1,315 Other items, net 123 411 $ 6,744 $ 3,826 |
Summary Of Tax Credit Carryforwards [Table Text Block] | At December 31, 2018 , tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows: (dollars in millions) Tax Credit Carryforwards Tax Loss Carryforwards Expiration period: 2019-2023 $ 32 $ 286 2024-2028 33 189 2029-2038 354 559 Indefinite 631 1,931 Total $ 1,050 $ 2,965 |
Summary Of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for the years ended December 31, 2018, 2017 and 2016 is as follows: (dollars in millions) 2018 2017 2016 Balance at January 1 $ 1,189 $ 1,086 $ 1,169 Additions for tax positions related to the current year 192 192 69 Additions for tax positions of prior years 344 73 167 Reductions for tax positions of prior years (91 ) (91 ) (61 ) Settlements (15 ) (71 ) (258 ) Balance at December 31 $ 1,619 $ 1,189 $ 1,086 Gross interest expense related to unrecognized tax benefits $ 37 $ 34 $ 41 Total accrued interest balance at December 31 $ 255 $ 215 $ 185 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Related Costs [Table Text Block] | Restructuring charges incurred in 2018 primarily relate to actions initiated during 2018 and 2017 , and were recorded as follows: (dollars in millions) Cost of sales $ 147 Selling, general & administrative 162 Non-service pension (benefit) (2 ) Total $ 307 We recorded charges in the segments as follows: (dollars in millions) Otis $ 69 Carrier 80 Pratt & Whitney (7 ) Collins Aerospace Systems 160 Eliminations and other 5 Total $ 307 |
Current Year Actions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the accrual balances and utilization by cost type for the 2018 restructuring actions: (dollars in millions) Severance Facility Exit, Lease Termination & Other Costs Total Net pre-tax restructuring costs $ 191 $ 16 $ 207 Utilization, foreign exchange and other costs (76 ) 7 (69 ) Balance at December 31, 2018 $ 115 $ 23 $ 138 |
Schedule of Restructuring and Related Costs [Table Text Block] | The following table summarizes expected, incurred and remaining costs for the 2018 restructuring actions by segment: (dollars in millions) Expected Costs Cost Incurred During 2018 Remaining Costs at December 31, 2018 Otis $ 55 $ (48 ) $ 7 Carrier 111 (64 ) 47 Pratt & Whitney 3 (3 ) — Collins Aerospace Systems 111 (87 ) 24 Eliminations and other 6 (5 ) 1 Total $ 286 $ (207 ) $ 79 |
Prior Year Actions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the accrual balances and utilization by cost type for the 2017 restructuring actions: (dollars in millions) Severance Facility Exit, Lease Termination and Other Costs Total Restructuring accruals at January 1, 2018 $ 84 $ 1 $ 85 Net pre-tax restructuring costs 62 32 94 Utilization, foreign exchange and other costs (89 ) (37 ) (126 ) Balance at December 31, 2018 $ 57 $ (4 ) $ 53 |
Schedule of Restructuring and Related Costs [Table Text Block] | The following table summarizes expected, incurred and remaining costs for the 2017 programs by segment: (dollars in millions) Expected Costs Costs Incurred During 2017 Costs Incurred During 2018 Remaining Costs at December 31, 2018 Otis $ 66 $ (43 ) $ (20 ) $ 3 Carrier 77 (76 ) — 1 Pratt & Whitney 7 (7 ) — — Collins Aerospace Systems 204 (43 ) (74 ) 87 Eliminations and other 7 (7 ) — — Total $ 361 $ (176 ) $ (94 ) $ 91 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivative instruments as of December 31, 2018 and 2017 : (dollars in millions) Balance Sheet Location December 31, 2018 December 31, 2017 Derivatives designated as hedging instruments: Foreign exchange contracts Asset Derivatives: Other assets, current $ 10 $ 77 Other assets 12 101 Total asset derivatives $ 22 $ 178 Liability Derivatives: Accrued liabilities (83 ) (10 ) Other long-term liabilities (111 ) (8 ) Total liability derivatives $ (194 ) $ (18 ) Derivatives not designated as hedging instruments: Foreign exchange contracts Asset Derivatives: Other assets, current 44 70 Other assets 19 5 Total asset derivatives $ 63 $ 75 Liability Derivatives: Accrued liabilities (89 ) (57 ) Other long-term liabilities (3 ) (3 ) Total liability derivatives $ (92 ) $ (60 ) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | Year Ended December 31, (dollars in millions) 2018 2017 (Loss) Gain recorded in Accumulated other comprehensive loss $ (307 ) $ 347 Gain reclassified from Accumulated other comprehensive loss into Product sales $ (16 ) $ (39 ) |
Other Income (Expense) [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | Year Ended December 31, (dollars in millions) 2018 2017 Gain recognized in Other income, net $ 115 $ 77 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and nonrecurring basis in our Consolidated Balance Sheet as of December 31, 2018 and 2017 : 2018 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 51 $ 51 $ — $ — Derivative assets 85 — 85 — Derivative liabilities (286 ) — (286 ) — 2017 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 64 $ 64 $ — $ — Derivative assets 253 — 253 — Derivative liabilities (78 ) — (78 ) — |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Consolidated Balance Sheet at December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 (dollars in millions) Carrying Fair Carrying Fair Long-term receivables $ 334 $ 314 $ 127 $ 121 Customer financing notes receivable 272 265 609 596 Short-term borrowings (1,469 ) (1,469 ) (392 ) (392 ) Long-term debt (excluding capitalized leases) (43,996 ) (44,003 ) (27,067 ) (29,180 ) Long-term liabilities (508 ) (467 ) (362 ) (330 ) The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Consolidated Balance Sheet as of December 31, 2018 and 2017 : December 31, 2018 (dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 314 $ — $ 314 $ — Customer financing notes receivable 265 — 265 — Short-term borrowings (1,469 ) — (1,258 ) (211 ) Long-term debt (excluding capitalized leases) (44,003 ) — (43,620 ) (383 ) Long-term liabilities (467 ) — (467 ) — December 31, 2017 (dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 121 $ — $ 121 $ — Customer financing notes receivable 596 — 596 — Short-term borrowings (392 ) — (300 ) (92 ) Long-term debt (excluding capitalized leases) (29,180 ) — (28,970 ) (210 ) Long-term liabilities (330 ) — (330 ) — |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities [Table Text Block] | The carrying amounts and classification of assets and liabilities for variable interest entities in our Consolidated Balance Sheet as of December 31, 2018 and 2017 are as follows: (dollars in millions) 2018 2017 Current assets $ 4,732 $ 3,976 Noncurrent assets 1,600 1,534 Total assets $ 6,332 $ 5,510 Current liabilities $ 4,946 $ 3,601 Noncurrent liabilities 1,898 2,086 Total liabilities $ 6,844 $ 5,687 |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations [Table Text Block] | As of December 31, 2018 and 2017 , the following financial guarantees were outstanding: December 31, 2018 December 31, 2017 (dollars in millions) Maximum Carrying Maximum Carrying Commercial aerospace financing arrangements (see Note 5) $ 348 $ 9 $ 336 $ 8 Credit facilities and debt obligations (expire 2019 to 2028) 116 — 256 15 Performance guarantees 55 5 56 2 |
Product Warranty Disclosure [Table Text Block] | The changes in the carrying amount of service and product warranties and product performance guarantees for the years ended December 31, 2018 and 2017 are as follows: (dollars in millions) 2018 2017 Balance as of January 1 1 $ 1,146 $ 1,199 Warranties and performance guarantees issued 604 323 Settlements made (493 ) (207 ) Other 2 192 9 Balance as of December 31 $ 1,449 $ 1,324 1 Change in beginning balance due to revenue recognition reclassification of extended warranty to net contract asset/liability. 2 Increase in Other is driven by Rockwell Collins acquisition. |
Segment Financial Data (Tables)
Segment Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment [Table Text Block] | Net Sales Operating Profits (dollars in millions) 2018 2017 2016 2018 2017 2016 Otis $ 12,904 $ 12,341 $ 11,893 $ 1,915 $ 2,002 $ 2,125 Carrier 18,922 17,812 16,851 3,777 3,165 2,848 Pratt & Whitney 19,397 16,160 14,894 1,269 1,300 1,501 Collins Aerospace Systems 16,634 14,691 14,465 2,303 2,191 2,167 Total segment 67,857 61,004 58,103 9,264 8,658 8,641 Eliminations and other (1,356 ) (1,167 ) (859 ) (236 ) (81 ) (18 ) General corporate expenses — — — (475 ) (439 ) (402 ) Consolidated $ 66,501 $ 59,837 $ 57,244 $ 8,553 $ 8,138 $ 8,221 Total Assets Capital Expenditures Depreciation & Amortization (dollars in millions) 2018 2017 2016 2018 2017 2016 2018 2017 2016 Otis $ 9,374 $ 9,421 $ 8,867 $ 172 $ 133 $ 94 $ 190 $ 177 $ 171 Carrier 22,189 22,657 21,787 263 326 340 357 372 354 Pratt & Whitney 29,341 26,768 22,971 866 923 725 852 672 550 Collins Aerospace Systems 73,115 34,567 34,093 515 527 452 883 823 807 Total segment 134,019 93,413 87,718 1,816 1,909 1,611 2,282 2,044 1,882 Eliminations and other 192 3,507 1,988 86 105 88 151 96 80 Consolidated $ 134,211 $ 96,920 $ 89,706 $ 1,902 $ 2,014 $ 1,699 $ 2,433 $ 2,140 $ 1,962 |
Schedule of Revenues From External Customers And Long Lived Assets By Geographic Areas [Table Text Block] | External Net Sales Operating Profits Long-Lived Assets (dollars in millions) 2018 2017 2016 2018 2017 2016 2018 2017 2016 United States Operations $ 39,481 $ 33,912 $ 32,335 $ 4,941 $ 4,126 $ 4,304 $ 7,111 $ 5,323 $ 4,822 International Operations Europe 12,857 11,879 11,151 2,141 1,959 1,826 1,908 1,817 1,538 Asia Pacific 8,847 8,770 8,260 1,476 1,491 1,486 1,349 1,113 999 Other 6,672 6,443 6,357 706 1,082 1,025 1,363 1,389 1,325 Eliminations and other (1,356 ) (1,167 ) (859 ) (711 ) (520 ) (420 ) 566 544 474 Consolidated $ 66,501 $ 59,837 $ 57,244 $ 8,553 $ 8,138 $ 8,221 $ 12,297 $ 10,186 $ 9,158 |
Schedule Of Revenue By Major Customers By Reporting Segments [Table Text Block] | (dollars in millions) 2018 2017 2016 Pratt & Whitney $ 4,489 $ 3,347 $ 3,187 Collins Aerospace Systems 2,779 2,299 2,301 Other 175 152 138 $ 7,443 $ 5,798 $ 5,626 |
Revenue from External Customers by Geographic Areas [Table Text Block] | (dollars in millions) 2018 2017 2016 Europe $ 6,285 $ 5,273 $ 5,065 Asia Pacific 5,429 3,634 3,449 Other 2,514 2,217 2,313 $ 14,228 $ 11,124 $ 10,827 |
Schedule of Segment Reporting Information, by Geographic Market [Table Text Block] | Sales by primary geographical market for the year ended December 31, 2018 is as follows: (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Primary Geographical Markets United States $ 3,433 $ 9,402 $ 14,852 $ 11,794 $ 39,481 Europe 4,055 5,710 594 2,498 12,857 Asia Pacific 4,354 2,849 1,277 367 8,847 Other 1,062 961 2,674 1,975 6,672 Total segment $ 12,904 $ 18,922 $ 19,397 $ 16,634 67,857 Eliminations and other (1,356 ) Consolidated $ 66,501 |
Segment Reporting Disclosure, Product & Sales Type [Text Block] | for the year ended December 31, 2018 are as follows: (dollars in millions) Otis Carrier Pratt & Whitney Collins Aerospace Systems Total Product Type Commercial and industrial, non aerospace $ 12,904 $ 18,922 $ 55 $ 60 $ 31,941 Commercial aerospace — — 14,027 12,564 26,591 Military aerospace — — 5,315 4,010 9,325 Total segment $ 12,904 $ 18,922 $ 19,397 $ 16,634 67,857 Eliminations and other (1,356 ) Consolidated $ 66,501 Sales Type Product $ 5,636 $ 15,682 $ 11,410 $ 13,915 $ 46,643 Service 7,268 3,240 7,987 2,719 21,214 Total segment $ 12,904 $ 18,922 $ 19,397 $ 16,634 67,857 Eliminations and other (1,356 ) Consolidated $ 66,501 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule Of Quarterly Financial Information [Table Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) 2018 Quarters 2017 Quarters (dollars in millions, except per share amounts) First Second Third Fourth First Second Third Fourth Net Sales $ 15,242 $ 16,705 $ 16,510 $ 18,044 $ 13,815 $ 15,280 $ 15,062 $ 15,680 Gross margin 3,962 4,283 3,974 4,297 3,679 4,116 3,956 3,885 Net income attributable to common shareowners 1,297 2,048 1,238 686 1,386 1,439 1,330 397 Earnings per share of Common Stock: Basic - net income $ 1.64 $ 2.59 $ 1.56 $ 0.83 $ 1.75 $ 1.83 $ 1.69 $ 0.50 Diluted - net income $ 1.62 $ 2.56 $ 1.54 $ 0.83 $ 1.73 $ 1.80 $ 1.67 $ 0.50 |
Performance Graph - Unaudited (
Performance Graph - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Performance Graph [Abstract] | |
Cumulative Total Shareholder Return [Table Text Block] | COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts and Other Customer Financing Activity [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at December 31 | $ 488 | $ 456 | $ 467 | $ 553 |
Provision charged to income | 54 | 88 | 64 | |
Doubtful accounts written off (net) | 37 | 82 | 105 | |
Other adjustments | 15 | (17) | (45) | |
Future Income Tax Benefits - Valuation Allowance | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at December 31 | 605 | 582 | 545 | $ 591 |
Additions charged to income tax expense | 61 | 45 | 32 | |
Additions charged to goodwill, due to acquisitions | 25 | |||
Reductions credited to income tax expense | 25 | 29 | 61 | |
Other adjustments | $ (38) | $ 21 | $ (17) |
Summary of Accounting Princip_3
Summary of Accounting Principles (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018EUR (€) | |
Accounting Policies [Abstract] | ||||
Restricted Cash And Cash Equivalents | $ 60 | $ 33 | $ 32 | |
Unbilled Contracts Receivable | 678 | 2,770 | ||
Contract Receivable Retainage | 116 | 118 | ||
Excess Of Replacement Or Current Costs Over Stated LIFO Value | 119 | 106 | ||
Operating profit impact of contract adjustments | (50) | (110) | $ (157) | |
Commercial paper, euro-denominated | $ 858 | € 750 | ||
Long-term debt, euro-denominated | € | € 4,950 | |||
Commercial Aerospace [Member] | ||||
Accounting Policies [Abstract] | ||||
Unbilled Contracts Receivable | $ 1,109 |
Summary of Accounting Princip_4
Summary of Accounting Principles Summary of Accounting Principles (Marketable Securities) (Details) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unrealized gains on available for sale securities | $ 5 | |
ASU 2016-01 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Upon adoption, investments that do not result in consolidation and are not accounted for under the equity method generally must be carried at fair value, with changes in fair value recognized in net income. As discussed in Note 10, we had approximately $5 million of unrealized gains on these securities recorded in Accumulated other comprehensive loss in our Consolidated Balance Sheet as of December 31, 2017. We adopted this standard effective January 1, 2018, with these amounts recorded directly to retained earnings as of that date. |
Summary of Accounting Princip_5
Summary of Accounting Principles (Indefinite Lived Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Collaboration Asset [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 30 years |
Customer Relationships [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Customer Relationships [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 50 years |
Purchased Service Contracts [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Purchased Service Contracts [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 25 years |
Patents & trademarks [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 4 years |
Patents & trademarks [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 40 years |
Exclusivity Assets [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Exclusivity Assets [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 25 years |
Summary of Accounting Princip_6
Summary of Accounting Principles (Long-Term Receivables) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Long Term Receivable | $ 527 | $ 1,397 |
Financing Receivable, Reserve for Credit Losses and Exposure, Individually Evaluated For Impairment | 16 | 17 |
Long Term Receivables High Credit Risk | 150 | 170 |
Long-term Trade Accounts Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Long Term Receivable | 269 | 973 |
Notes and Leases Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Long Term Receivable | $ 258 | $ 424 |
Summary of Accounting Princip_7
Summary of Accounting Principles (Collaborative Arrangements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborators interests existing programs low end | 13.00% | ||
Collaborators interests existing programs high end | 50.00% | ||
Partner share individual program maximum | 31.00% | ||
Cost of Products Sold [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborator Share Of Sales | $ 1,688 | $ 1,789 | $ 1,700 |
Collaborator Share Of Program Costs | 209 | 143 | 108 |
Cost of Services Sold [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborator Share Of Sales | 1,765 | 929 | 675 |
Research and Development [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborator Share Of Program Costs | 225 | 190 | 184 |
Selling General and Administrative [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborator Share Of Program Costs | $ 87 | $ 74 | $ 57 |
Summary of Accounting Princip_8
Summary of Accounting Principles Accounting Pronouncements (Details) | 12 Months Ended |
Dec. 31, 2018 | |
ASU 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | Valuation reserves for excess, obsolete, and slow-moving inventory are estimated by comparing the inventory levels of individual parts to both future sales forecasts or production requirements and historical usage rates in order to identify inventory where the resale value or replacement value is less than inventoriable cost. Other factors that management considers in determining the adequacy of these reserves include whether individual inventory parts meet current specifications and cannot be substituted for a part currently being sold or used as a service part, overall market conditions, and other inventory management initiatives. Manufacturing costs are allocated to current production and firm contracts. Under prior accounting within commercial aerospace, the unit of accounting for certain contracts was the contract, and early-contract OEM unit costs in excess of the average unit costs expected over the contract were capitalized and amortized over lower-cost units later in the contract. As described in the "Revenue Recognition" section of Note 1 below, these costs were eliminated through retained earnings on January 1, 2018 and will not be amortized into future earnings based on the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. |
ASU 2016-16 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This ASU requires the income tax consequences of an intra-entity transfer of an asset, other than inventory, to be recognized when the transfer occurs. Two common examples of assets included in the scope of this update are intellectual property and property, plant, and equipment. The provisions of this ASU are effective for years beginning after December 15, 2017, with early adoption permitted. We adopted the new standard effective January 1, 2018. |
ASU 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In February 2016, In February 2016, the FASB issued ASU 2016- 02, Leases (Topic 842). In 2018, the FASB continued to issue various updates to ASU 2016-02 as follows: ASU 2018-10, Codification Improvements to Topic 842, Leases - makes various targeted enhancements and clarifications to the leasing standard ASU 2018-11, Leases (Topic 842): Targeted Improvements - allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption ASU 2016-02 and its related updates (collectively, the New Lease Accounting Standard) are effective for reporting periods beginning after December 15, 2018, and interim periods therein, using either of the following transition methods; (i) a full retrospective adoption reflecting the application of the standard in each prior reporting period, or (ii) a prospective adoption election with the cumulative effect of adopting recognized through retained earnings at the date of adoption. We are preparing to adopt the New Lease Accounting Standard effective January 1, 2019 and will used the prospective method of adoption with the cumulative effect of adoption recognized through retained earnings at the date of adoption. The New Lease Accounting Standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statement of Operations. In addition, this standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as financing. If the lessor doesn’t convey risks and rewards or control, the lease is treated as operating. We plan to elect all of the practical expedients available under the New Lease Accounting Standard upon adoption. Although we continue to evaluate the impact of the New Lease Accounting Standard on our statement of financial position, we do not expect that the standard will have a material effect on our cash flows or results of operations. Upon adoption we will record a ROU asset and lease liability, representing our obligation to make lease payments for operating leases, measured on a discounted basis. The ROU asset and lease liability will also reflect future payments under certain information technology service contracts, which we have determined contain embedded leases, which require balance sheet presentation under the New Lease Accounting Standard. We expect the ROU asset and lease liability recorded will be less than 5% of our total assets. In preparation for the adoption, we are implementing new software solutions and designing new business processes and controls over the financial reporting of leases, which will facilitate our reporting under the New Lease Accounting Standard in the first quarter of 2019. |
ASU 2017-01 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This ASU provides a new framework that will assist in the evaluation of whether business combination transactions should be accounted for as an acquisition of a business or as a group of assets, and specifies the minimum required inputs and processes necessary to be a business. The provisions of this ASU are effective for years beginning after December 15, 2017, with early adoption permitted. We adopted the new standard effective January 1, 2018. Refer to Note 2: Business Acquisitions. |
ASU 2017-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU provides that an entity should account for the effects of a modification unless the fair value, the vesting conditions of the modified award and the classification of the modified award (equity or liability instrument) are the same as the original award immediately before the modification. The provisions of this ASU are effective for years beginning after December 15, 2017, with early adoption permitted. We adopted the new standard effective January 1, 2018. The adoption of this standard did not have a material impact on the consolidated financial statements. |
ASU 2017-12 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. It is intended to more closely align hedge accounting with a company’s risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The provisions of this ASU are effective for years beginning after December 15, 2018, with early adoption permitted for any interim period after issuance of the ASU. We adopted the new standard effective January 1, 2018. The adoption of this standard did not have a material impact on the consolidated financial statements. |
ASU 2018-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220). The new standard allows companies to reclassify to retained earnings the stranded tax effects in accumulated other comprehensive income (AOCI) from the newly-enacted U.S. Tax Cuts and Jobs Act (TCJA). The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We will elect to reclassify the income tax effects of TCJA from AOCI to retained earnings effective January 1, 2019. We are still evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. We do not expect this ASU to have a material impact on our cash flows and results of operations. |
ASU 2018-13 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The new standard removes the disclosure requirements for the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We do not expect this ASU to have a significant impact on our consolidated financial statements, as it only includes changes to disclosure requirements. |
ASU 2018-14 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. The new standard includes updates to the disclosure requirements for defined benefit plans including several additions, deletions and modifications to the disclosure requirements. The provisions of this ASU are effective for years beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this ASU. |
ASU 2018-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The new standard provides updated guidance surrounding implementation costs associated with cloud computing arrangements that are service contracts. The provisions of this ASU are effective for years beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this ASU. |
SEC Release No. 33-10532 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2018, the SEC issued the final rule under SEC Release No. 33-10532, "Disclosure Update and Simplification," that amends certain of its disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded. The amendments include removing the requirement to disclose the historical and pro forma ratio of earnings to fixed charges (Exhibit 12) and replacing the requirement to disclose the high and low trading prices of entity's ordinary shares with a requirement to disclose the ticker symbol of its shares. Additionally, the final rule extends to interim periods the annual disclosure requirement of presenting changes in each caption of stockholders' equity and the amount of dividends per share. These disclosures are required to be provided for the current and comparative year-to-date interim periods. The final rule is effective for all filings on or after November 5, 2018. The Company has adopted all relevant disclosure requirements for its annual report on Form 10-K for the year ended December 31, 2018. |
ASU 2018-17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. The amendments in this Update for determining whether a decision-making fee is a variable interest require reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in GAAP). Therefore, these amendments likely will result in more decision makers not having a variable interest through their decision-making arrangements. These amendments also will create alignment between determining whether a decision making fee is a variable interest and determining whether a reporting entity within a related party group is the primary beneficiary of a VIE. If fewer decision-making fees are considered variable interests, the focus on determining which party within a related party group under common control may have a controlling financial interest will be shifted to the variable interest holders in the group with more significant economic interests. This will significantly reduce the risk that decision makers with insignificant direct and indirect interests could be deemed the primary beneficiary of a VIE. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this ASU. |
ASU 2018-18 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. The amendments in this Update make targeted improvements to generally accepted accounting principles (GAAP) for collaborative arrangements as follows: clarify that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in Topic 606 should be applied, including recognition, measurement, presentation, and disclosure requirements; add unit-of-account guidance in Topic 808 to align with the guidance in Topic 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of Topic 606; and require that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this ASU. |
Business Acquisitions, Dispos_5
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Details) - USD ($) shares in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 26, 2018 | |
Business Acquisition [Line Items] | ||||
Acquisition Cost Of Acquired Entities and Interest in Affiliates | $ 31,142,000,000 | $ 231,000,000 | $ 712,000,000 | |
Noncash Or Part Noncash Acquisition Debt Assumed | 7,784,000,000 | 2,000,000 | ||
Proceeds from Issuance of Debt | 11,000,000,000 | |||
Proceeds from Debt, Net of Issuance Costs | 10,900,000,000 | |||
Business Combination, Acquisition Related Costs | 112,000,000 | 39,000,000 | ||
Interest Expense | 1,038,000,000 | $ 909,000,000 | $ 1,039,000,000 | |
Stock Issued During Period, Value, Acquisitions | $ 7,960,000,000 | |||
Stock Issued During Period, Shares, Acquisitions | 62.2 | |||
Inventory, Net | $ 175,000,000 | |||
Goodwill resulting from business combinations | 20,745,000,000 | |||
Business Combination, Consideration Transferred | 23,493,000,000 | |||
Rockwell Collins [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 640,000,000 | |||
Noncash Or Part Noncash Acquisition Debt Assumed | 7,800,000,000 | |||
Total enterprise value | 30,600,000,000 | |||
Fair value adjustment, inventory | 282,000,000 | |||
Fair value adjustment, fixed assets | 269,000,000 | |||
Contractual Obligation | 970,000,000 | 970,000,000 | ||
Contractual Obligation, Due in Next Fiscal Year | 148,000,000 | |||
Contractual Obligation, Due in Second Year | 138,000,000 | |||
Contractual Obligation, Due in Third Year | 130,000,000 | |||
Contractual Obligation, Due in Fourth Year | 125,000,000 | |||
Contractual Obligation, Due in Fifth Year | 116,000,000 | |||
Interest Income (Expense), Net | 46,000,000 | |||
Interest Expense | 114,000,000 | |||
Interest Income, Domestic Deposits | $ 68,000,000 | |||
Business Acquisition, Name of Acquired Entity | Rockwell Collins, Inc. (Rockwell Collins) | |||
Business Acquisition, Effective Date of Acquisition | Nov. 26, 2018 | |||
Business Acquisition Cash Paid | $ 93.33 | |||
Business Acquisition UTC stock payable | 0.37525 | |||
Payments to Acquire Businesses, Gross | 15,500,000,000 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 14,900,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 1,660,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 1,527,000,000 | |||
Business combination, recognized identifiable assets acquired and liabilities assumed, contract with customer asset, current | 302,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 297,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 41,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,691,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 1,870,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 192,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 17,140,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | 2,254,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 378,000,000 | |||
Business combination, recognized identifiable assets acquired and liabilities assumed, accrued liabilities current | 1,679,000,000 | |||
Business combination, recognized identifiable assets acquired and liabilities assumed, contract with customer liabilities, current | 301,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 5,530,000,000 | |||
Business combination, recognized identifiable assets acquired and liabilities assumed, liability, defined benefit plan, noncurrent | 502,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 3,465,000,000 | |||
Business combination, recognized identifiable assets acquired and liabilities assumed, noncontrolling interest | 6,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 14,115,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 3,025,000,000 | |||
Goodwill resulting from business combinations | $ 20,468,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 23,493,000,000 | |||
Customer Relationships [Member] | Rockwell Collins [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 8,320,000,000 | |||
Technology-Based Intangible Assets [Member] | Rockwell Collins [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 600,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 10,790,000,000 | |||
Maximum [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 50 years | |||
Maximum [Member] | Customer Relationships [Member] | Rockwell Collins [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||
Maximum [Member] | Technology-Based Intangible Assets [Member] | Rockwell Collins [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||
Minimum [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 1 year | |||
Minimum [Member] | Customer Relationships [Member] | Rockwell Collins [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Business Acquisitions, Dispos_6
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Goodwill translation and other, increase (decrease) | $ (543) | |
Goodwill | 48,112 | $ 27,910 |
Goodwill resulting from business combinations | 20,745 | |
Goodwill, foreign currency translation and other | (543) | |
Goodwill Eliminations and other, increase (decrease) | 18 | |
Otis [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,688 | 1,737 |
Goodwill resulting from business combinations | 7 | |
Goodwill, foreign currency translation and other | (56) | |
Carrier [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 9,835 | 10,009 |
Goodwill resulting from business combinations | 194 | |
Goodwill, foreign currency translation and other | (368) | |
Pratt and Whitney [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,567 | 1,511 |
Goodwill resulting from business combinations | 58 | |
Goodwill, foreign currency translation and other | (2) | |
Collins Aerospace Systems [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Period Increase (Decrease) | 20,400 | |
Goodwill | 35,001 | 14,650 |
Goodwill resulting from business combinations | 20,468 | |
Goodwill, foreign currency translation and other | (117) | |
Eliminations and other [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 21 | 3 |
Goodwill resulting from business combinations | 18 | |
Goodwill, foreign currency translation and other | 0 | |
Total Segments [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 48,091 | $ 27,907 |
Goodwill resulting from business combinations | 20,727 | |
Goodwill, foreign currency translation and other | (543) | |
Taylor Company [Member] | ||
Goodwill [Line Items] | ||
Goodwill translation and other, increase (decrease) | $ 151 |
Business Acquisitions, Dispos_7
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Trademarks and other | $ 3,918 | $ 2,096 |
Total | 33,477 | 22,134 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 29,559 | 20,038 |
Accumulated Amortization | 7,053 | 6,251 |
Service Portfolios [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 2,164 | 2,178 |
Accumulated Amortization | 1,608 | 1,534 |
Patents and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 361 | 399 |
Accumulated Amortization | 236 | 233 |
Collaboration [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 4,509 | 4,109 |
Accumulated Amortization | 649 | 384 |
Customer Relationships and Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 22,525 | 13,352 |
Accumulated Amortization | $ 4,560 | $ 4,100 |
Business Acquisitions, Dispos_8
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Amortization Expense, Year 1 | $ 1,476 | ||
Amortization Expense, Year 2 | 1,438 | ||
Amortization Expense, Year 3 | 1,456 | ||
Amortization Expense, Year 4 | 1,464 | ||
Amortization Expense, Year 5 | 1,670 | ||
Amortization of Intangible Assets | $ 976 | $ 834 | $ 778 |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Inventory Costs in Excess of Average Cost Per Unit | $ 0 | $ 438 | $ 0 | $ 438 | ||||||||
Capitalized Contract Cost, Gross | $ 700 | |||||||||||
Previously Recognized Customer Funding to Contract Liability | 850 | |||||||||||
Revenues | 18,044 | $ 16,510 | $ 16,705 | $ 15,242 | 15,680 | $ 15,062 | $ 15,280 | $ 13,815 | 66,501 | 59,837 | $ 57,244 | |
Research and development | 2,462 | 2,427 | 2,376 | |||||||||
Selling, general and administrative | 7,066 | 6,429 | 5,958 | |||||||||
Total costs and expenses | 59,513 | 53,057 | 49,805 | |||||||||
Other Income | 1,565 | 1,358 | 782 | |||||||||
Operating profit | 8,553 | 8,138 | 8,221 | |||||||||
Non-service pension cost (benefit) | (765) | (534) | 49 | |||||||||
Interest Expense, net | 1,038 | 909 | 1,039 | |||||||||
Income from continuing operations before income taxes | 8,280 | 7,763 | 7,133 | |||||||||
Income tax expense | 2,626 | 2,843 | 1,697 | |||||||||
Net income from continuing operations | 5,654 | 4,920 | 5,436 | |||||||||
Less: Noncontrolling interest in subsidiaries' earnings from continuing operations | 385 | 368 | 371 | |||||||||
Net income attributable to common shareowners | 686 | $ 1,238 | $ 2,048 | $ 1,297 | 397 | $ 1,330 | $ 1,439 | $ 1,386 | 5,269 | 4,552 | 5,055 | |
Accounts receivable, net | 14,271 | 12,595 | 14,271 | 12,595 | ||||||||
Contract with Customer, Asset, Net, Current | 3,486 | 0 | 3,486 | 0 | ||||||||
Inventories and contracts in progress, net | 10,083 | 9,881 | 10,083 | 9,881 | ||||||||
Other assets, current | 1,511 | 1,397 | 1,511 | 1,397 | ||||||||
Future income tax benefits | 1,646 | 1,723 | 1,646 | 1,723 | ||||||||
Intangible assets, net | 26,424 | 15,883 | 26,424 | 15,883 | ||||||||
Other assets | 7,206 | 5,988 | 7,206 | 5,988 | ||||||||
Accrued liabilities | 10,223 | 12,316 | 10,223 | 12,316 | ||||||||
Contract with Customer, Liability, Current | 5,720 | 0 | 5,720 | 0 | ||||||||
Other long-term liabilities | 16,914 | 12,952 | 16,914 | 12,952 | ||||||||
Noncontrolling interest | 2,164 | 1,811 | 2,164 | 1,811 | ||||||||
Capitalized Contract Cost, Net | 914 | 914 | ||||||||||
Retained earnings | 57,823 | $ 55,242 | 57,823 | 55,242 | ||||||||
Contract with Customer, Asset, Net, Noncurrent | 1,142 | 1,142 | ||||||||||
Contract with Customer, Asset, Net | 4,628 | 4,628 | 3,609 | |||||||||
Contract with Customer, Liability, Noncurrent | 5,069 | 5,069 | ||||||||||
Contract with Customer, Liability | 10,789 | 10,789 | 9,974 | |||||||||
Contract with Customer, Net | (6,161) | (6,161) | ||||||||||
Contract with Customer, Asset, Change | 1,019 | |||||||||||
Contract with Customer, Asset, Increase (Decrease) for Contract Acquired in Business Combination | 308 | |||||||||||
Contract with Customer, Liability, Change | (815) | |||||||||||
Contract with Customer, Liability, Increase (Decrease) for Contract Acquired in Business Combination | 313 | |||||||||||
Contract with Customer, Liability, Revenue Recognized | 4,211 | |||||||||||
Revenue, Remaining Performance Obligation, Amount | $ 115,000 | $ 115,000 | ||||||||||
Revenue, Remaining Performance Obligations, to be recognized within 24 months | 46.00% | 46.00% | ||||||||||
Product [Member] | ||||||||||||
Revenues | $ 45,434 | 41,361 | 40,735 | |||||||||
Cost of Goods and Services Sold | 36,754 | 31,224 | 30,304 | |||||||||
Service [Member] | ||||||||||||
Revenues | 21,067 | 18,476 | 16,509 | |||||||||
Cost of Goods and Services Sold | 13,231 | $ 12,977 | $ 11,167 | |||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||||||||
Satisfied Portion of the Performance Obligation of CIP | 220 | |||||||||||
Inventory Costs in Excess of Average Cost Per Unit | 438 | |||||||||||
Revenues | 552 | |||||||||||
Research and development | (87) | |||||||||||
Selling, general and administrative | 0 | |||||||||||
Total costs and expenses | 349 | |||||||||||
Other Income | (8) | |||||||||||
Operating profit | 195 | |||||||||||
Non-service pension cost (benefit) | 0 | |||||||||||
Interest Expense, net | 0 | |||||||||||
Income from continuing operations before income taxes | 195 | |||||||||||
Income tax expense | 49 | |||||||||||
Net income from continuing operations | 146 | |||||||||||
Less: Noncontrolling interest in subsidiaries' earnings from continuing operations | 5 | |||||||||||
Net income attributable to common shareowners | 141 | |||||||||||
Accounts receivable, net | $ (1,365) | (1,365) | ||||||||||
Contract with Customer, Asset, Net, Current | (2,086) | (2,086) | ||||||||||
Inventories and contracts in progress, net | 3,155 | 3,155 | ||||||||||
Other assets, current | (8) | (8) | ||||||||||
Future income tax benefits | 32 | 32 | ||||||||||
Intangible assets, net | (71) | (71) | ||||||||||
Other assets | 1,150 | 1,150 | ||||||||||
Accrued liabilities | (5,299) | (5,299) | ||||||||||
Contract with Customer, Liability, Current | 5,375 | 5,375 | ||||||||||
Other long-term liabilities | 1,073 | 1,073 | ||||||||||
Noncontrolling interest | 6 | 6 | ||||||||||
Retained earnings | (339) | (339) | $ 480 | |||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Product [Member] | ||||||||||||
Revenues | 306 | |||||||||||
Cost of Goods and Services Sold | 273 | |||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Service [Member] | ||||||||||||
Revenues | 246 | |||||||||||
Cost of Goods and Services Sold | 163 | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||||
Revenues | 65,949 | |||||||||||
Research and development | 2,549 | |||||||||||
Selling, general and administrative | 7,066 | |||||||||||
Total costs and expenses | 59,164 | |||||||||||
Other Income | 1,573 | |||||||||||
Operating profit | 8,358 | |||||||||||
Non-service pension cost (benefit) | (765) | |||||||||||
Interest Expense, net | 1,038 | |||||||||||
Income from continuing operations before income taxes | 8,085 | |||||||||||
Income tax expense | 2,577 | |||||||||||
Net income from continuing operations | 5,508 | |||||||||||
Less: Noncontrolling interest in subsidiaries' earnings from continuing operations | 380 | |||||||||||
Net income attributable to common shareowners | 5,128 | |||||||||||
Accounts receivable, net | 15,636 | 15,636 | ||||||||||
Contract with Customer, Asset, Net, Current | 12,169 | 12,169 | ||||||||||
Inventories and contracts in progress, net | 331 | 331 | ||||||||||
Other assets, current | 1,519 | 1,519 | ||||||||||
Future income tax benefits | 1,614 | 1,614 | ||||||||||
Intangible assets, net | 26,495 | 26,495 | ||||||||||
Other assets | 6,056 | 6,056 | ||||||||||
Accrued liabilities | 15,522 | 15,522 | ||||||||||
Contract with Customer, Liability, Current | 345 | 345 | ||||||||||
Other long-term liabilities | 15,841 | 15,841 | ||||||||||
Noncontrolling interest | 2,158 | 2,158 | ||||||||||
Retained earnings | $ 58,162 | 58,162 | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Product [Member] | ||||||||||||
Revenues | 45,128 | |||||||||||
Cost of Goods and Services Sold | 36,481 | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Service [Member] | ||||||||||||
Revenues | 20,821 | |||||||||||
Cost of Goods and Services Sold | $ 13,068 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Antidilutive securities excluded from computation of earnings per share amount | 5,100,000 | 5,900,000 | 14,500,000 | ||||||||
Net Income (Loss) Attributable to Common Shareowners | |||||||||||
Net income from continuing operations | $ 5,269 | $ 4,552 | $ 5,065 | ||||||||
Net (loss) income from discontinued operations | 0 | 0 | (10) | ||||||||
Net income attributable to common shareowners | $ 686 | $ 1,238 | $ 2,048 | $ 1,297 | $ 397 | $ 1,330 | $ 1,439 | $ 1,386 | $ 5,269 | $ 4,552 | $ 5,055 |
Basic weighted average number of shares outstanding | 800,400,000 | 790,000,000 | 818,200,000 | ||||||||
Stock Awards | 9,700,000 | 9,100,000 | 7,900,000 | ||||||||
Diluted weighted average number of shares outstanding | 810,100,000 | 799,100,000 | 826,100,000 | ||||||||
Earnings Per Share of Common Stock - Basic | |||||||||||
Net income from continuing operations | $ 6.58 | $ 5.76 | $ 6.19 | ||||||||
Net (loss) income from discontinued operations | 0 | 0 | (0.01) | ||||||||
Net income attributable to common shareowners | $ 0.83 | $ 1.56 | $ 2.59 | $ 1.64 | $ 0.50 | $ 1.69 | $ 1.83 | $ 1.75 | 6.58 | 5.76 | 6.18 |
Earnings Per Share of Common Stock - Diluted | |||||||||||
Net income from continuing operations | 6.50 | 5.70 | 6.13 | ||||||||
Net (loss) income from discontinued operations | 0 | 0 | (0.01) | ||||||||
Net income attributable to common shareowners | $ 0.83 | $ 1.54 | $ 2.56 | $ 1.62 | $ 0.50 | $ 1.67 | $ 1.80 | $ 1.73 | $ 6.50 | $ 5.70 | $ 6.12 |
Commercial Aerospace Industry_3
Commercial Aerospace Industry Assets and Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Nov. 26, 2018 | Jan. 01, 2018 | Jul. 26, 2012 | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Unbilled Contracts Receivable | $ 678 | $ 2,770 | |||
Contract with Customer, Asset, Net | 4,628 | $ 3,609 | |||
Contract with Customer, Liability | 10,789 | $ 9,974 | |||
Capitalized Contract Cost, Net | 914 | ||||
Commercial Aerospace [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Guarantee Obligations Maximum Exposure | 348 | 336 | |||
Commercial Aerospace [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Accounts, Notes, Loans and Financing Receivable, gross | 11,695 | 9,477 | |||
Products Under Lease | 2,736 | 1,913 | |||
Notes and leases receivable, total committed | 299 | 652 | |||
Commercial Aerospace financing and other contractual commitments | 15,500 | ||||
Notes and leases receivable within one year | 25 | ||||
Notes and leases receivable within two years | 97 | ||||
Notes and leases receivable within three years | 53 | ||||
Notes and leases receivable within four years | 22 | ||||
Notes and leases receivable within five years | 23 | ||||
Notes and leases receivable after five years | 79 | ||||
Commercial aerospace financing commitments, total committed | 4,556 | ||||
Commercial aerospace financing commitments within one year | 862 | ||||
Commercial aerospace financing commitments within two years | 709 | ||||
Commercial aerospace financing commitments within three years | 1,001 | ||||
Commercial aerospace financing commitments within four years | 873 | ||||
Commercial aerospace financing commitments within five years | 640 | ||||
Commercial aerospace financing commitments after five years | 471 | ||||
Other commercial aerospace commitments, total committed | 10,914 | ||||
Other commercial aerospace commitments within one year | 815 | ||||
Other commercial aerospace commitments within two years | 706 | ||||
Other commercial aerospace commitments within three years | 673 | ||||
Other commercial aerospace commitments within four years | 708 | ||||
Other commercial aerospace commitments within five years | 585 | ||||
Other commercial aerospace commitments after five years | 7,427 | ||||
Collaboration partners' share, total committed | 5,261 | ||||
Collaboration partners' share within one year | 468 | ||||
Collaboration partners' share within two years | 448 | ||||
Collaboration partners' share within three years | 562 | ||||
Collaboration partners' share within four years | 513 | ||||
Collaboration partners' share within five years | 412 | ||||
Collaboration partners' share after five years | 2,858 | ||||
Total commercial commitments, total committed | 10,209 | ||||
Total commercial commitments within one year | 1,209 | ||||
Total commercial commitments within two years | 967 | ||||
Total commercial commitments within three years | 1,112 | ||||
Total commercial commitments within four years | 1,068 | ||||
Total commercial commitments within five years | 813 | ||||
Total commercial commitments after five years | 5,040 | ||||
Unbilled Contracts Receivable | 1,109 | ||||
Deferred Revenue | 5,048 | ||||
Allowance for Receivables and Other Financing Assets | 245 | 175 | |||
Financing Commitments and Guarantees Reserve | 15 | 23 | |||
Contract with Customer, Asset, Net | 2,247 | ||||
Contract with Customer, Liability | 7,083 | ||||
Capitalized Contract Cost, Net | 830 | ||||
Goodrich Corporation [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Contractual Obligation | 1,690 | $ 2,200 | |||
Contractual Obligation, Consumed in Current Year | 252 | $ 217 | |||
Contractual Obligation, Due in Next Fiscal Year | 381 | ||||
Contractual Obligation, Due in Second Year | 295 | ||||
Contractual Obligation, Due in Third Year | 217 | ||||
Contractual Obligation, Due in Fourth Year | 163 | ||||
Contractual Obligation, Due in Fifth Year | 134 | ||||
Contractual Obligation, Due after Fifth Year | 500 | ||||
Rockwell Collins [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Contractual Obligation | 970 | $ 970 | |||
Contractual Obligation, Due in Next Fiscal Year | 148 | ||||
Contractual Obligation, Due in Second Year | 138 | ||||
Contractual Obligation, Due in Third Year | 130 | ||||
Contractual Obligation, Due in Fourth Year | 125 | ||||
Contractual Obligation, Due in Fifth Year | $ 116 |
Inventories and Contracts in _3
Inventories and Contracts in Progress (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Inventory Costs in Excess of Average Cost Per Unit | $ 0 | $ 438 |
Raw materials | 3,052 | 2,038 |
Work-in-process | 2,673 | 3,366 |
Finished goods | 4,358 | 3,845 |
Contracts in progress | 0 | 10,205 |
Inventories before payments and billings | 10,083 | 19,454 |
Progress payments, secured by lien, on U.S. Government contracts | 0 | 236 |
Billings on contracts in progress | 0 | 9,337 |
Inventories and contracts in progress, net | 10,083 | 9,881 |
Inventory Valuation Reserves | $ 1,270 | $ 1,107 |
Percentage Of Inventory For Long Term Contracts Or Programs | 32.00% | 63.00% |
Percentage Of Inventory For Long Term Contracts Scheduled For Delivery Within Succeeding 12 Months | 28.00% | 38.00% |
Collins Aerospace Systems [Member] | ||
Inventory [Line Items] | ||
Capitalized Contract Development Costs | $ 0 | $ 127 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Land | $ 425 | $ 412 | |
Buildings and improvements | 6,486 | 5,727 | |
Machinery, tools and equipment | 15,119 | 13,476 | |
Other, including assets under construction | 2,054 | 1,749 | |
Fixed assets | 24,084 | 21,364 | |
Accumulated depreciation | 11,787 | 11,178 | |
Fixed assets, net | 12,297 | 10,186 | |
Property Plant And Equipment [Line Items] | |||
Depreciation | $ 1,240 | $ 1,178 | $ 1,105 |
Land Buildings And Improvements [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Land Buildings And Improvements [Member] | Minimum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 12 years | ||
Machinery And Equipment [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Machinery And Equipment [Member] | Minimum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities [Abstract] | ||
Advances on sales contracts and service billings | $ 0 | $ 4,547 |
Accrued salaries, wages and employee benefits | 2,074 | 1,741 |
Service and warranty accruals | 754 | 629 |
Interest payable | 637 | 439 |
Litigation and contract matters | 461 | 435 |
Income taxes payable | 460 | 285 |
Accrued property, sales and use taxes | 277 | 258 |
Canadian government settlement - current portion | 34 | 217 |
Accrued restructuring costs | 249 | 212 |
Accrued workers compensation | 142 | 204 |
Liabilities held for sale | 40 | 0 |
Other | 5,095 | 3,349 |
Accrued liabilities | $ 10,223 | $ 12,316 |
Accrued Liabilities Narrative (
Accrued Liabilities Narrative (Details) $ in Millions, $ in Millions | 3 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2017USD ($) | |
Accrued Liabilities [Abstract] | ||||
Candadian Government Amendment Arrangements, Annual Payment Amount | $ 243 | $ 327 | ||
Canadian Government Amendment Arrangements, Expense | $ 867 | |||
Canadian Government Amendment Arrangements, Remaining Liability | $ 256 |
Borrowings and Lines of Credi_2
Borrowings and Lines of Credit (Short-Term Borrowings) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | ||
Document Fiscal Year Focus | 2,018 | |
Commercial Paper | $ 1,257 | $ 300 |
Other borrowings | 212 | 92 |
Total short-term borrowings | $ 1,469 | $ 392 |
Borrowings and Lines of Credi_3
Borrowings and Lines of Credit (ST Borrowings Narrative) (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Maximum Commercial Paper Borrowing Authority | $ 4,350 | ||
Short Term Line of Credit Facilities Remaining Borrowing Capacities | $ 2,200 | ||
Short Term Debt Weighted Average Interest Rate, Avg Outstanding | 1.50% | 1.50% | 1.10% |
Total Debt Weighted Average Interest Rate, Avg Outstanding | 3.50% | 3.50% | 3.50% |
Short Term Debt Weighted Average Interest Rate, Outstanding | 1.242% | 1.242% | 2.276% |
Total Debt Weighted Average Interest Rate, Outstanding | 3.50% | 3.50% | 3.50% |
Line of Credit Facility [Line Items] | |||
Aggregate Line of Credit Facility Maximum Borrowing Capacity | $ 4,350 | ||
Commercial paper, euro-denominated | $ 858 | € 750 | |
Multicurrency Revolving Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Expiration Date | Aug. 5, 2021 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,150 | ||
Borrowings under Long-term Lines of Credit | $ 0 | ||
Revolving Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Expiration Date | Aug. 5, 2021 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,200 | ||
Borrowings under Long-term Lines of Credit | $ 0 | ||
Revolving Credit Agreement, Current [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Expiration Date | May 25, 2019 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500 | ||
Borrowings under Lines of Credit, Current | $ 0 |
Borrowings and Lines of Credi_4
Borrowings and Lines of Credit (Long-Term Debt) (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | ||
Debt Instrument [Line Items] | |||||
Document Fiscal Year Focus | 2,018 | 2,018 | |||
Proceeds from Issuance of Debt | $ 11,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | ||||
Debt Instrument, Maturity Year Date | 2,021 | 2,021 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | Rockwell Collins debt which remained outstanding following the Merger. | |||
Project financing obligations | $ 287 | $ 158 | |||
Total principal long-term debt | 44,416 | 27,118 | |||
Other debt (including capitalized leases) | 287 | 195 | |||
Other (fair market value adjustments, discounts and debt issuance costs) | (348) | (25) | |||
Total long-term debt | 44,068 | 27,093 | |||
Less: current portion | 2,876 | 2,104 | |||
Long-term debt, net of current portion | 41,192 | 24,989 | |||
Long Term Debt Maturities Repayments Of Principal In Next Twelve Months | 2,876 | ||||
Long Term Debt Maturities Repayments Of Principal In Year Two | 3,436 | ||||
Long Term Debt Maturities Repayments Of Principal In Year Three | 4,151 | ||||
Long Term Debt Maturities Repayments Of Principal In Year Four | 3,910 | ||||
Long Term Debt Maturities Repayments Of Principal In Year Five | 3,523 | ||||
Long Term Debt Maturities Repayments Of Principal After Year Five | 26,520 | ||||
Notes 6.800% Due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | $ 0 | $ 99 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | ||||
Debt Instrument, Maturity Year Date | 2,018 | 2,018 | |||
EURIBOR plus 0.800% floating rate notes due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [1] | $ 0 | $ 890 | ||
Debt Instrument, Maturity Year Date | 2,018 | 2,018 | |||
Debt Instrument, Call Feature | The three-month EURIBOR rate as of December 31, 2018 was approximately -0.309%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | The three-month EURIBOR rate as of December 31, 2018 was approximately -0.309%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | |||
Junior subordinated notes 1.778% due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | $ 0 | $ 1,100 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.778% | ||||
Debt Instrument, Maturity Year Date | 2,018 | 2,018 | |||
LIBOR plus 0.350% floating rate notes due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [2] | $ 350 | $ 350 | ||
Debt Instrument, Maturity Year Date | 2,019 | 2,019 | |||
Debt Instrument, Call Feature | The three-month LIBOR rate as of December 31, 2018 was approximately 2.808%. | The three-month LIBOR rate as of December 31, 2018 was approximately 2.808%. | |||
Notes 1.500% Due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 650 | $ 650 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||||
Debt Instrument, Maturity Year Date | 2,019 | 2,019 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 1.950% Due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [4] | $ 300 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | ||||
Debt Instrument, Maturity Year Date | 2,019 | 2,019 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | Rockwell Collins debt which remained outstanding following the Merger. | |||
EURIBOR plus 0.15% floating rate notes due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Nov. 13, 2017 | Nov. 13, 2017 | |||
Proceeds from Issuance of Debt | € | [5] | € 750 | |||
Debt Instrument, Carrying Amount | [1] | $ 858 | $ 890 | ||
Debt Instrument, Maturity Year Date | 2,019 | 2,019 | |||
Debt Instrument, Call Feature | The three-month EURIBOR rate as of December 31, 2018 was approximately -0.309%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | The three-month EURIBOR rate as of December 31, 2018 was approximately -0.309%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | |||
Notes 5.250% Due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [4] | $ 300 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||||
Debt Instrument, Maturity Year Date | 2,019 | 2,019 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | Rockwell Collins debt which remained outstanding following the Merger. | |||
Notes 8.875% Due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | $ 271 | $ 271 | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.875% | ||||
Debt Instrument, Maturity Year Date | 2,019 | 2,019 | |||
Notes 4.875% Due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 171 | $ 171 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | ||||
Debt Instrument, Maturity Year Date | 2,020 | 2,020 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 4.500% Due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 1,250 | $ 1,250 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||
Debt Instrument, Maturity Year Date | 2,020 | 2,020 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 1.900% Due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | [6] | $ 1,000 | |||
Debt Instrument, Carrying Amount | [3] | $ 1,000 | $ 1,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.90% | ||||
Debt Instrument, Maturity Year Date | 2,020 | 2,020 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
EURIBOR plus 0.20% floating rate notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 18, 2018 | May 18, 2018 | |||
Proceeds from Issuance of Debt | € | [7] | € 750 | |||
Debt Instrument, Carrying Amount | [1] | $ 858 | $ 0 | ||
Debt Instrument, Maturity Year Date | 2,020 | 2,020 | |||
Debt Instrument, Call Feature | The three-month EURIBOR rate as of December 31, 2018 was approximately -0.309%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | The three-month EURIBOR rate as of December 31, 2018 was approximately -0.309%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | |||
Notes 8.750% Due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | $ 250 | $ 250 | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | ||||
Debt Instrument, Maturity Year Date | 2,021 | 2,021 | |||
Notes 3.100% Due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [4] | $ 250 | $ 0 | ||
Notes 3.350% due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [8] | $ 1,000 | |||
Debt Instrument, Carrying Amount | [3] | $ 1,000 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.35% | ||||
Debt Instrument, Maturity Year Date | 2,021 | 2,021 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
LIBOR plus 0.650% floating rate notes due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [8] | $ 750 | |||
Debt Instrument, Carrying Amount | [2],[3] | $ 750 | $ 0 | ||
Debt Instrument, Maturity Year Date | 2,021 | 2,021 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. The three-month LIBOR rate as of December 31, 2018 was approximately 2.808%. | We may redeem these notes at our option pursuant to their terms. The three-month LIBOR rate as of December 31, 2018 was approximately 2.808%. | |||
Notes 1.950% Due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 750 | $ 750 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | ||||
Debt Instrument, Maturity Year Date | 2,021 | 2,021 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 1.125% Due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 1,088 | $ 1,127 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.125% | ||||
Debt Instrument, Maturity Year Date | 2,021 | 2,021 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 2.300% Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 4, 2017 | May 4, 2017 | |||
Proceeds from Issuance of Debt | [6] | $ 500 | |||
Debt Instrument, Carrying Amount | [3] | $ 500 | $ 500 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.30% | ||||
Debt Instrument, Maturity Year Date | 2,022 | 2,022 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 2.800% Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [4] | $ 1,100 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | ||||
Debt Instrument, Maturity Year Date | 2,022 | 2,022 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | Rockwell Collins debt which remained outstanding following the Merger. | |||
Notes 3.100% Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 2,300 | $ 2,300 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | ||||
Debt Instrument, Maturity Year Date | 2,022 | 2,022 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 1.250% due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 858 | $ 890 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | ||||
Debt Instrument, Maturity Year Date | 2,023 | 2,023 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 3.650% Due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [8] | $ 2,250 | |||
Debt Instrument, Carrying Amount | [3] | $ 2,250 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.65% | ||||
Debt Instrument, Maturity Year Date | 2,023 | 2,023 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 3.700% Due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [4] | $ 400 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | ||||
Debt Instrument, Maturity Year Date | 2,023 | 2,023 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | Rockwell Collins debt which remained outstanding following the Merger. | |||
Notes 2.800% Due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 4, 2017 | May 4, 2017 | |||
Proceeds from Issuance of Debt | [6] | $ 800 | |||
Debt Instrument, Carrying Amount | [3] | $ 800 | $ 800 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | ||||
Debt Instrument, Maturity Year Date | 2,024 | 2,024 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 3.200% Due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [4] | $ 950 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | ||||
Debt Instrument, Maturity Year Date | 2,024 | 2,024 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | Rockwell Collins debt which remained outstanding following the Merger. | |||
Notes 1.150% Due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 18, 2018 | May 18, 2018 | |||
Proceeds from Issuance of Debt | € | [7] | € 750 | |||
Debt Instrument, Carrying Amount | [3] | $ 858 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.15% | ||||
Debt Instrument, Maturity Year Date | 2,024 | 2,024 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 3.950% Due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [8] | $ 1,500 | |||
Debt Instrument, Carrying Amount | [3] | $ 1,500 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | ||||
Debt Instrument, Maturity Year Date | 2,025 | 2,025 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 1.875% Due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 573 | $ 593 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.875% | ||||
Debt Instrument, Maturity Year Date | 2,026 | 2,026 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 2.650% Due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 1,150 | $ 1,150 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | ||||
Debt Instrument, Maturity Year Date | 2,026 | 2,026 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 3.125% Due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 4, 2017 | May 4, 2017 | |||
Proceeds from Issuance of Debt | [6] | $ 1,100 | |||
Debt Instrument, Carrying Amount | [3] | $ 1,100 | $ 1,100 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | ||||
Debt Instrument, Maturity Year Date | 2,027 | 2,027 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 3.500% Due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [4] | $ 1,300 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | ||||
Debt Instrument, Maturity Year Date | 2,027 | 2,027 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | Rockwell Collins debt which remained outstanding following the Merger. | |||
Notes 7.100% Due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | $ 141 | $ 141 | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.10% | ||||
Debt Instrument, Maturity Year Date | 2,027 | 2,027 | |||
Notes 6.700% Due 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | $ 400 | $ 400 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | ||||
Debt Instrument, Maturity Year Date | 2,028 | 2,028 | |||
Notes 4.125% Due 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [8] | $ 3,000 | |||
Debt Instrument, Carrying Amount | [3] | $ 3,000 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | ||||
Debt Instrument, Maturity Year Date | 2,028 | 2,028 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 7.500% Due 2029 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 550 | $ 550 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | ||||
Debt Instrument, Maturity Year Date | 2,029 | 2,029 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 2.150% Due 2030 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 18, 2018 | May 18, 2018 | |||
Proceeds from Issuance of Debt | € | [7] | € 500 | |||
Debt Instrument, Carrying Amount | [3] | $ 573 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.15% | ||||
Debt Instrument, Maturity Year Date | 2,030 | 2,030 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 5.400% Due 2035 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 600 | $ 600 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | ||||
Debt Instrument, Maturity Year Date | 2,035 | 2,035 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 6.050% Due 2036 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 600 | $ 600 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.05% | ||||
Debt Instrument, Maturity Year Date | 2,036 | 2,036 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 6.800% Due 2036 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 134 | $ 134 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | ||||
Debt Instrument, Maturity Year Date | 2,036 | 2,036 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 7.000% Due 2038 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | $ 159 | $ 159 | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||||
Debt Instrument, Maturity Year Date | 2,038 | 2,038 | |||
Notes 6.125% Due 2038 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 1,000 | $ 1,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | ||||
Debt Instrument, Maturity Year Date | 2,038 | 2,038 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 4.450% Due 2038 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [8] | $ 750 | |||
Debt Instrument, Carrying Amount | [3] | $ 750 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.45% | ||||
Debt Instrument, Maturity Year Date | 2,038 | 2,038 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 5.700% Due 2040 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 1,000 | $ 1,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | ||||
Debt Instrument, Maturity Year Date | 2,040 | 2,040 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 4.500% Due 2042 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 3,500 | $ 3,500 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||
Debt Instrument, Maturity Year Date | 2,042 | 2,042 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 4.800% Due 2043 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [4] | $ 400 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | ||||
Debt Instrument, Maturity Year Date | 2,043 | 2,043 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | Rockwell Collins debt which remained outstanding following the Merger. | |||
Notes 4.150% Due 2045 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 850 | $ 850 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | ||||
Debt Instrument, Maturity Year Date | 2,045 | 2,045 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 3.750% Due 2046 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [3] | $ 1,100 | $ 1,100 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | ||||
Debt Instrument, Maturity Year Date | 2,046 | 2,046 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 4.050% Due 2047 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 4, 2017 | May 4, 2017 | |||
Proceeds from Issuance of Debt | [6] | $ 600 | |||
Debt Instrument, Carrying Amount | [3] | $ 600 | $ 600 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.05% | ||||
Debt Instrument, Maturity Year Date | 2,047 | 2,047 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
Notes 4.350% Due 2047 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Carrying Amount | [4] | $ 1,000 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | ||||
Debt Instrument, Maturity Year Date | 2,047 | 2,047 | |||
Debt Instrument, Call Feature | Rockwell Collins debt which remained outstanding following the Merger. | Rockwell Collins debt which remained outstanding following the Merger. | |||
Notes 4.625% Due 2048 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [5] | $ 1,750 | |||
Debt Instrument, Carrying Amount | [3] | $ 1,750 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | ||||
Debt Instrument, Maturity Year Date | 2,048 | 2,048 | |||
Debt Instrument, Call Feature | We may redeem these notes at our option pursuant to their terms. | We may redeem these notes at our option pursuant to their terms. | |||
[1] | The three-month EURIBOR rate as of December 31, 2018 was approximately -0.309%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | ||||
[2] | The three-month LIBOR rate as of December 31, 2018 was approximately 2.808%. | ||||
[3] | We may redeem these notes at our option pursuant to their terms. | ||||
[4] | 4Rockwell Collins debt which remained outstanding following the Merger. | ||||
[5] | 2The net proceeds from these debt issuances were used to fund the repayment of commercial paper and for other general corporate purposes. | ||||
[6] | 4The net proceeds received from these debt issuances were used to fund the repayment at maturity of our 1.800% notes due 2017, representing $1.5 billion in aggregate principal and other general corporate purposes. | ||||
[7] | 3The net proceeds received from these debt issuances were used for general corporate purposes. | ||||
[8] | 1The net proceeds received from these debt issuances were used to partially finance the cash consideration portion of the purchase price for Rockwell Collins and fees, expenses and other amounts related to the acquisition of Rockwell Collins. |
Borrowings and Lines of Credi_5
Borrowings and Lines of Credit Borrowings and Lines of Credit (LT Debt Narrative) (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | ||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | $ 11,000 | ||||
Debt Percentage Bearing Variable Interest Rate | 10.00% | 10.00% | 9.00% | 9.00% | |
Debt Instrument, Maturity Year Date | 2,021 | 2,021 | |||
Average Years of Maturity of Long Term Debt | 11 years | 11 years | |||
Notes 3.350% due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [1] | $ 1,000 | |||
Debt Instrument, Maturity Year Date | 2,021 | 2,021 | |||
Notes 3.650% Due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [1] | $ 2,250 | |||
Debt Instrument, Maturity Year Date | 2,023 | 2,023 | |||
Notes 3.950% Due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [1] | $ 1,500 | |||
Debt Instrument, Maturity Year Date | 2,025 | 2,025 | |||
Notes 4.125% Due 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [1] | $ 3,000 | |||
Debt Instrument, Maturity Year Date | 2,028 | 2,028 | |||
Notes 4.450% Due 2038 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [1] | $ 750 | |||
Debt Instrument, Maturity Year Date | 2,038 | 2,038 | |||
Notes 4.625% Due 2048 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [2] | $ 1,750 | |||
Debt Instrument, Maturity Year Date | 2,048 | 2,048 | |||
LIBOR plus 0.650% floating rate notes due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Aug. 16, 2018 | Aug. 16, 2018 | |||
Proceeds from Issuance of Debt | [1] | $ 750 | |||
Debt Instrument, Maturity Year Date | 2,021 | 2,021 | |||
Notes 1.150% Due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 18, 2018 | May 18, 2018 | |||
Proceeds from Issuance of Debt | € | [3] | € 750 | |||
Debt Instrument, Maturity Year Date | 2,024 | 2,024 | |||
Notes 2.150% Due 2030 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 18, 2018 | May 18, 2018 | |||
Proceeds from Issuance of Debt | € | [3] | € 500 | |||
Debt Instrument, Maturity Year Date | 2,030 | 2,030 | |||
EURIBOR plus 0.20% floating rate notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 18, 2018 | May 18, 2018 | |||
Proceeds from Issuance of Debt | € | [3] | € 750 | |||
Debt Instrument, Maturity Year Date | 2,020 | 2,020 | |||
EURIBOR plus 0.15% floating rate notes due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Nov. 13, 2017 | Nov. 13, 2017 | |||
Proceeds from Issuance of Debt | € | [2] | € 750 | |||
Debt Instrument, Maturity Year Date | 2,019 | 2,019 | |||
Notes 1.900% Due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Debt | [4] | $ 1,000 | |||
Debt Instrument, Maturity Year Date | 2,020 | 2,020 | |||
Notes 2.300% Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 4, 2017 | May 4, 2017 | |||
Proceeds from Issuance of Debt | [4] | $ 500 | |||
Debt Instrument, Maturity Year Date | 2,022 | 2,022 | |||
Notes 2.800% Due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 4, 2017 | May 4, 2017 | |||
Proceeds from Issuance of Debt | [4] | $ 800 | |||
Debt Instrument, Maturity Year Date | 2,024 | 2,024 | |||
Notes 3.125% Due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 4, 2017 | May 4, 2017 | |||
Proceeds from Issuance of Debt | [4] | $ 1,100 | |||
Debt Instrument, Maturity Year Date | 2,027 | 2,027 | |||
Notes 4.050% Due 2047 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | May 4, 2017 | May 4, 2017 | |||
Proceeds from Issuance of Debt | [4] | $ 600 | |||
Debt Instrument, Maturity Year Date | 2,047 | 2,047 | |||
Variable-rate term loan due 2020 (1 month LIBOR plus 1.25%) [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of Debt, Date | Dec. 14, 2018 | Dec. 14, 2018 | |||
Repayments of Debt | [5] | $ 482 | |||
Junior subordinated notes 1.778% due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of Debt, Date | May 4, 2018 | May 4, 2018 | |||
Repayments of Debt | $ 1,100 | ||||
Debt Instrument, Maturity Year Date | 2,018 | 2,018 | |||
EURIBOR plus 0.800% floating rate notes due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of Debt, Date | Feb. 22, 2018 | Feb. 22, 2018 | |||
Repayments of Debt | € | € 750 | ||||
Debt Instrument, Maturity Year Date | 2,018 | 2,018 | |||
Notes 6.800% Due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of Debt, Date | Feb. 1, 2018 | Feb. 1, 2018 | |||
Repayments of Debt | $ 99 | ||||
Debt Instrument, Maturity Year Date | 2,018 | 2,018 | |||
Notes 1.800% Due 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of Debt, Date | Jun. 1, 2017 | Jun. 1, 2017 | |||
Repayments of Debt | $ 1,500 | ||||
[1] | 1The net proceeds received from these debt issuances were used to partially finance the cash consideration portion of the purchase price for Rockwell Collins and fees, expenses and other amounts related to the acquisition of Rockwell Collins. | ||||
[2] | 2The net proceeds from these debt issuances were used to fund the repayment of commercial paper and for other general corporate purposes. | ||||
[3] | 3The net proceeds received from these debt issuances were used for general corporate purposes. | ||||
[4] | 4The net proceeds received from these debt issuances were used to fund the repayment at maturity of our 1.800% notes due 2017, representing $1.5 billion in aggregate principal and other general corporate purposes. | ||||
[5] | This term loan was assumed in connection with the Rockwell Collins acquisition and subsequently repaid. |
Equity (Summary of Changes in A
Equity (Summary of Changes in AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (9,333) | $ (7,525) | $ (8,334) |
Other comprehensive (loss) income, net - Foreign Currency Translation | (516) | 620 | (1,089) |
Amounts reclassified, pretax - Foreign Currency Translation | 2 | 10 | 0 |
Tax (benefit) expense reclassified - Foreign Currency Translation | (4) | 0 | |
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on foreign currency translation Arising During Period | 0 | ||
Other comprehensive (loss) income before reclassifications, net - Pension | (1,736) | 78 | |
Amounts reclassified, pretax - Pension | 344 | 529 | 535 |
Tax (benefit) expense reclassified - Pension | 326 | (214) | |
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on Defined Benefit Plan Arising During Period | 0 | ||
Other comprehensive (loss) income before reclassifications, net - AFS Securities | 0 | 3 | |
Amounts reclassified, pretax - AFS Securities | 0 | 566 | 94 |
Tax (benefit) expense reclassified - AFS Securities | 0 | 215 | |
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on Securities Arising During Period | (5) | 0 | 0 |
Other comprehensive (loss) income before reclassifications, net - Unrealized Hedging (Losses) Gains | (307) | 264 | |
Amounts reclassified, pretax - Unrealized Hedging (Losses) Gains | 16 | 39 | (171) |
Tax (benefit) expense reclassified - Unrealized Hedging (Losses) Gains | 78 | 9 | |
Other Comprehensive Income (Loss), ASU 2016-01 adoption impact on Derivatives Arising During Period | 0 | ||
Other comprehensive (loss) income before reclassifications, net | (2,529) | 885 | |
Amounts reclassified, pretax | (326) | 86 | |
Tax (benefit) expense reclassified | 400 | 10 | |
Reclassification from OCI, current period, ASU 2016-01 adoption impact | (5) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (3,442) | (2,950) | (3,480) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (5,718) | (4,652) | (5,045) |
Accumulated Net Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 5 | 353 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (173) | 72 | $ (162) |
Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive (loss) income, net - Foreign Currency Translation | $ (486) | 540 | |
Sales of significant investments in AFS securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified, pretax - AFS Securities | $ 500 |
Employee Benefit Plans (Employe
Employee Benefit Plans (Employee Savings Plans) (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan [Abstract] | |||
Contributions to employer sponsored defined contribution plans | $ 403 | $ 351 | $ 318 |
Employee Stock Ownership Plan (ESOP), Plan Description | Our non-union domestic employee savings plan uses an Employee Stock Ownership Plan (ESOP) for employer matching contributions. External borrowings were used by the ESOP to fund a portion of its purchase of ESOP stock from us. The external borrowings have been extinguished and only re-amortized loans remain between UTC and the ESOP Trust. As ESOP debt service payments are made, common stock is released from an unreleased shares account. ESOP debt may be prepaid or re-amortized to either increase or decrease the number of shares released so that the value of released shares equals the value of plan benefit. We may also, at our option, contribute additional common stock or cash to the ESOP.Shares of common stock are allocated to employees' ESOP accounts at fair value on the date earned. Cash dividends on common stock held by the ESOP are used for debt service payments. Participants may choose to have their ESOP dividends reinvested or distributed in cash. Common stock allocated to ESOP participants is included in the average number of common shares outstanding for both basic and diluted earnings per share. | ||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 24.7 | ||
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | 9.4 | ||
Employee Stock Ownership Plan (ESOP), Deferred Shares, Fair Value | $ 1,000 |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension and Postretirement Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Nov. 26, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Document Fiscal Year Focus | 2,018 | |||||
Other | $ 105 | $ (116) | $ 542 | |||
Beginning Balance, Plan Assets | 35,689 | |||||
Ending Balance, Plan Assets | 35,253 | 35,689 | ||||
Noncurrent liability | $ 4,018 | $ 3,036 | ||||
Payment for Pension Benefits | 147 | 2,112 | 303 | |||
Current year actuarial gain (loss) | (1,819) | 241 | (785) | |||
Current year prior service cost/credit | 22 | (2) | 13 | |||
Amortization of prior service credit | 344 | 529 | 535 | |||
Other Postretirement Benefits Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Beginning Balance, Benefit Obligation | 767 | 805 | ||||
Service Cost | 2 | 2 | 3 | |||
Interest cost | 26 | 29 | 34 | |||
Actuarial loss (gain) | (52) | (4) | ||||
Total benefits paid | 70 | 87 | ||||
Defined Benefit Plan, Benefit Obligation, Business Combination | 186 | 0 | ||||
Plan amendments | (43) | (6) | ||||
Other | (6) | 28 | ||||
Ending Balance, Benefit Obligation | 810 | 767 | 805 | |||
Beginning Balance, Plan Assets | 0 | 0 | ||||
Employer Contributions | 69 | 71 | ||||
Benefits Paid | 70 | 87 | ||||
Defined Benefit Plan, Plan Assets, Business Combination | 20 | 0 | ||||
Other | 1 | 16 | ||||
Ending Balance, Plan Assets | 20 | 0 | 0 | |||
Benefit obligations | 767 | 805 | 805 | 810 | 767 | |
Funded status of plan | (790) | (767) | ||||
Current liability | 61 | 72 | ||||
Noncurrent liability | 729 | 695 | ||||
Net amount recognized | (790) | (767) | ||||
Net actuarial gain (loss) | 184 | 143 | ||||
Prior service credit | (47) | (10) | ||||
Net amount recognized | (231) | $ (153) | ||||
Amortization of prior service credit | (6) | (1) | 0 | |||
Recognized actuarial net (gain) loss - in net periodic cost | (10) | (9) | (4) | |||
Impact of change in estimation of NPPC | 12 | $ 21 | $ 33 | |||
Current year actuarial gain (loss) | 52 | |||||
Amortization of actuarial loss (gain) | 10 | |||||
Current year prior service cost/credit | (43) | |||||
Amortization of prior service credit | (6) | |||||
Other | 1 | |||||
Total recognized in other comprehensive loss | (78) | |||||
Net recognized in net periodic pension cost and other comprehensive loss | $ (66) | |||||
Net actuarial (loss)/gain | 12 | |||||
Prior service credit | $ 42 | |||||
Discount rate, benefit obligation | 4.10% | 3.40% | ||||
Discount rate, net cost | 3.40% | 3.80% | 4.00% | |||
Health care cost trend rate assumed for next year | 7.00% | 7.00% | ||||
Rate that the cost trend rate gradually declines to | 5.00% | 5.00% | ||||
Year that the rate reaches the rate it is assumed to remain at | 2,026 | 2,026 | ||||
Expected return on plan assets, net cost | 7.00% | |||||
Effect on total service and interest cost - increase | $ 1 | |||||
Effect on postretirement benefit obligation - increase | 32 | |||||
Effect on total service and interest cost - decrease | 1 | |||||
Effect on postretirement benefit obligation - decrease | 28 | |||||
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Beginning Balance, Benefit Obligation | 36,999 | $ 34,923 | ||||
Service Cost | 372 | 374 | $ 383 | |||
Interest cost | 1,117 | 1,120 | 1,183 | |||
Actuarial loss (gain) | (2,048) | 1,804 | ||||
Total benefits paid | 1,932 | 1,782 | ||||
Net settlement, curtailment, and special termination benefits | 38 | 49 | ||||
Defined Benefit Plan, Benefit Obligation, Business Combination | 3,694 | 0 | ||||
Plan amendments | 65 | 4 | ||||
Other | (434) | 605 | ||||
Ending Balance, Benefit Obligation | 37,795 | 36,999 | 34,923 | |||
Beginning Balance, Plan Assets | 35,689 | 30,555 | ||||
Actual return on plan assets | (1,667) | 4,258 | ||||
Employer Contributions | 238 | 2,188 | ||||
Benefits Paid | 1,932 | 1,782 | ||||
Defined Benefit Plan, Plan Assets, Business Combination | 3,355 | 0 | ||||
Settlements | 38 | 41 | ||||
Other | (392) | 511 | ||||
Ending Balance, Plan Assets | 35,253 | 35,689 | 30,555 | |||
Benefit obligations | 36,999 | 34,923 | 34,923 | $ 37,795 | $ 36,999 | |
Funded status of plan | (2,542) | (1,310) | ||||
Noncurrent assets | 686 | 957 | ||||
Current liability | 88 | 70 | ||||
Noncurrent liability | 3,140 | 2,197 | ||||
Net amount recognized | (2,542) | (1,310) | ||||
Net actuarial gain (loss) | (8,606) | (7,238) | ||||
Prior service credit | 139 | 37 | ||||
Net amount recognized | 8,745 | $ 7,275 | ||||
Expected return on plan assets | 2,255 | 2,215 | 2,202 | |||
Amortization of prior service credit | (41) | (36) | (33) | |||
Recognized actuarial net (gain) loss - in net periodic cost | 401 | 575 | 572 | |||
Impact of change in estimation of NPPC | (405) | (179) | 401 | |||
Net settlement and curtailment gain (loss) | (1) | $ (3) | $ (498) | |||
Current year actuarial gain (loss) | (1,871) | |||||
Amortization of actuarial loss (gain) | 401 | |||||
Current year prior service cost/credit | 65 | |||||
Amortization of prior service credit | (41) | |||||
Net settlement and curtailment loss | 2 | |||||
Other | (108) | |||||
Total recognized in other comprehensive loss | 1,470 | |||||
Net recognized in net periodic pension cost and other comprehensive loss | $ 1,065 | |||||
Net actuarial (loss)/gain | (214) | |||||
Prior service credit | 17 | |||||
Total amount to be amortized from AOCI to NPPC | $ 231 | |||||
Salary scale, benefit obligation | 4.20% | 4.20% | ||||
Expected return on plan assets, benefit obligation | 0.00% | 0.00% | ||||
Salary scale, net cost | 4.20% | 4.10% | 4.20% | |||
Expected return on plan assets, net cost | 6.80% | 7.30% | 7.30% | |||
Fair value of plan assets | $ 22,803 | $ 20,438 | ||||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 28,591 | 27,211 | ||||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 27,968 | 26,560 | ||||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | $ 25,362 | $ 24,944 | ||||
PBO [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate, benefit obligation | 4.00% | 3.40% | ||||
Discount rate, net cost | 3.40% | 3.80% | 4.10% | |||
Interest cost [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate, benefit obligation | 0.00% | 0.00% | ||||
Discount rate, net cost | 3.00% | 3.30% | 3.40% | |||
Service cost [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate, benefit obligation | 0.00% | 0.00% | ||||
Discount rate, net cost | 3.30% | 3.60% | 3.80% | |||
Rockwell Collins [Member] | Other Postretirement Benefits Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, liability, pension projected benefit obligation | $ 186 | |||||
Business combination, recognized identifiable assets acquired and liabilities assumed, asset, pension plan assets | 20 | |||||
Rockwell Collins [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, liability, pension projected benefit obligation | 3,700 | |||||
Business combination, recognized identifiable assets acquired and liabilities assumed, asset, pension plan assets | $ 3,400 |
Employee Benefit Plans (Pensi_2
Employee Benefit Plans (Pension Plans) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 26, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Document Fiscal Year Focus | 2,018 | |||||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 37,000 | $ 36,200 | ||||
Payment for Pension Benefits | 147 | 2,112 | $ 303 | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | 105 | (116) | 542 | |||
Research and development | 2,462 | 2,427 | 2,376 | |||
Selling, general and administrative | 7,066 | 6,429 | 5,958 | |||
Other Income | 1,565 | 1,358 | 782 | |||
Non-service pension cost (benefit) | (765) | (534) | 49 | |||
Product [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Cost of Goods and Services Sold | 36,754 | 31,224 | 30,304 | |||
Service [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Cost of Goods and Services Sold | 13,231 | 12,977 | 11,167 | |||
Previously Reported [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Research and development | 2,387 | 2,337 | ||||
Selling, general and administrative | 6,183 | 6,060 | ||||
Other Income | (785) | |||||
Non-service pension cost (benefit) | 0 | 0 | ||||
Previously Reported [Member] | Product [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Cost of Goods and Services Sold | 31,027 | 30,325 | ||||
Previously Reported [Member] | Service [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Cost of Goods and Services Sold | 12,926 | 11,135 | ||||
Accounting Standards Update 2017-07 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Research and development | 40 | 39 | ||||
Selling, general and administrative | 246 | (102) | ||||
Other Income | 3 | |||||
Non-service pension cost (benefit) | (534) | 49 | ||||
Accounting Standards Update 2017-07 [Member] | Product [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Cost of Goods and Services Sold | 197 | (21) | ||||
Accounting Standards Update 2017-07 [Member] | Service [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Cost of Goods and Services Sold | 51 | 32 | ||||
Foreign Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Payment for Pension Benefits | 147 | 212 | ||||
Domestic Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Payment for Pension Benefits | $ 1,900 | $ 0 | $ 1,900 | |||
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension Payout Program, Voluntary Lump-Sum Value | $ 170 | |||||
Percentage Of Projected Benefit Obligation Comprised Of Domestic Plan Benefits | 75.00% | |||||
Percentage Of Projected Benefit Obligation Comprised Of Foreign Plan Benefits | 23.00% | |||||
Range Of Growth Seeking Assets In Company's Overall Investment Strategy | 50% to 55% | |||||
Range Of Income Generating Assets In Company's Overall Investment Strategy | 45% to 50% | |||||
Pecentage Of Interest Rate Sensitivity Of Pension Plan Liabilities Fixed Income Portfolio Designed To Hedge | 60% to 65% | |||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 6.80% | 7.30% | 7.30% | |||
Defined Benefit Plan Common Stock Funded Percentage | 1.00% | |||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | $ (434) | $ 605 | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 100 | |||||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 2,371 | |||||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 2,195 | |||||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 2,240 | |||||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 2,292 | |||||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 2,327 | |||||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 11,939 | |||||
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 25,884 | 22,360 | ||||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | $ 25,455 | $ 22,159 | ||||
Pension Plan [Member] | Domestic Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.00% | 7.60% | ||||
Pension de-risking actions [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ (423) | |||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | $ 1,500 | |||||
Purchase of Annuity Contract [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | 768 | |||||
Lump Sum Payments [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change | $ 935 | |||||
Change in Assumptions for Defined Benefit Plans [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Change in Accounting Estimate, Description | At the end of fiscal 2015, we changed the approach we use to estimate the service and interest components of net periodic pension cost for our significant pension plans. This change compared to the previous approach resulted in a net decrease in the service and interest components of our annual net periodic pension cost of approximately $215 million for 2016. Historically, we estimated the service and interest cost components utilizing a single-weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. We have elected to utilize a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in determination of the benefit obligation to the relevant projected cash flows. We have made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. This change does not materially affect the measurement of our total benefit obligations. | |||||
Rockwell Collins [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, liability, pension projected benefit obligation | $ 3,700 | |||||
Business combination, recognized identifiable assets acquired and liabilities assumed, asset, pension plan assets | $ 3,400 |
Employee Benefit Plans (Pensi_3
Employee Benefit Plans (Pension Plans) (Fair Value Tables) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | ||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | $ 35,689 | ||||
Ending Balance, Plan Assets | 35,253 | $ 35,689 | |||
Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 15,691 | ||||
Ending Balance, Plan Assets | 15,143 | 15,691 | |||
Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 4,787 | ||||
Ending Balance, Plan Assets | 4,970 | 4,787 | |||
Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 13,285 | ||||
Ending Balance, Plan Assets | 13,219 | 13,285 | |||
Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 1,492 | 1,407 | |||
Defined Benefit Plan, Plan Assets, Business Combination | 33 | ||||
Realized gains (losses) | 9 | 92 | |||
Unrealized gains (losses) relating to instruments still held in the reporting period | 40 | (30) | |||
Purchases, sales and settlements, net | (36) | 23 | |||
Ending Balance, Plan Assets | 1,538 | 1,492 | |||
Global Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 3,132 | ||||
Ending Balance, Plan Assets | 2,921 | 3,132 | |||
Global Equities [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Global Equities [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 3,129 | ||||
Ending Balance, Plan Assets | 2,917 | 3,129 | |||
Global Equities [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 3 | ||||
Ending Balance, Plan Assets | 4 | 3 | |||
Global Equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Global Equity Commingled Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [1] | 1,084 | |||
Ending Balance, Plan Assets | [1] | 611 | 1,084 | ||
Global Equity Commingled Funds [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [1] | 0 | |||
Ending Balance, Plan Assets | [1] | 0 | 0 | ||
Global Equity Commingled Funds [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [1] | 0 | |||
Ending Balance, Plan Assets | 185 | 0 | [1] | ||
Global Equity Commingled Funds [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [1] | 1,084 | |||
Ending Balance, Plan Assets | [1] | 426 | 1,084 | ||
Global Equity Commingled Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [1] | 0 | |||
Ending Balance, Plan Assets | [1] | 0 | 0 | ||
Enhanced Global Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [2] | 1,032 | |||
Ending Balance, Plan Assets | [2] | 684 | 1,032 | ||
Enhanced Global Equities [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [2] | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | [2] | ||
Enhanced Global Equities [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [2] | 213 | |||
Ending Balance, Plan Assets | [2] | 79 | 213 | ||
Enhanced Global Equities [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [2] | 819 | |||
Ending Balance, Plan Assets | [2] | 605 | 819 | ||
Enhanced Global Equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [2] | 0 | |||
Ending Balance, Plan Assets | [2] | 0 | 0 | ||
Global Equity Funds at net asset value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 7,599 | |||
Ending Balance, Plan Assets | [3] | 7,386 | 7,599 | ||
Global Equity Funds at net asset value [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 7,599 | |||
Ending Balance, Plan Assets | [3] | 7,386 | 7,599 | ||
Global Equity Funds at net asset value [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 0 | |||
Ending Balance, Plan Assets | [3] | 0 | 0 | ||
Global Equity Funds at net asset value [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 0 | |||
Ending Balance, Plan Assets | [3] | 0 | 0 | ||
Global Equity Funds at net asset value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 0 | |||
Ending Balance, Plan Assets | [3] | 0 | 0 | ||
Private Equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 1,216 | ||||
Ending Balance, Plan Assets | 1,327 | [3],[4] | 1,216 | ||
Private Equities | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[4] | 1,170 | |||
Ending Balance, Plan Assets | [3],[4] | 1,194 | 1,170 | ||
Private Equities | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[4] | 0 | |||
Ending Balance, Plan Assets | [3],[4] | 0 | 0 | ||
Private Equities | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[4] | 0 | |||
Ending Balance, Plan Assets | [3],[4] | 0 | 0 | ||
Private Equities | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 46 | [3],[4] | 122 | ||
Defined Benefit Plan, Plan Assets, Business Combination | 0 | ||||
Realized gains (losses) | 0 | 61 | |||
Unrealized gains (losses) relating to instruments still held in the reporting period | 0 | (47) | |||
Purchases, sales and settlements, net | 87 | (90) | |||
Ending Balance, Plan Assets | 133 | 46 | [3],[4] | ||
Governments [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 1,514 | ||||
Ending Balance, Plan Assets | 1,951 | 1,514 | |||
Governments [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Governments [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 1,445 | ||||
Ending Balance, Plan Assets | 1,789 | 1,445 | |||
Governments [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 69 | ||||
Ending Balance, Plan Assets | 162 | 69 | |||
Governments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Corporate Bonds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 10,929 | ||||
Ending Balance, Plan Assets | 11,574 | 10,929 | |||
Corporate Bonds [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 29 | 0 | |||
Corporate Bonds [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Corporate Bonds [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 10,929 | ||||
Ending Balance, Plan Assets | 11,527 | 10,929 | |||
Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Business Combination | 33 | ||||
Realized gains (losses) | (1) | 0 | |||
Unrealized gains (losses) relating to instruments still held in the reporting period | 2 | 0 | |||
Purchases, sales and settlements, net | (16) | 0 | |||
Ending Balance, Plan Assets | 18 | 0 | |||
Fixed Income Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 3,519 | |||
Ending Balance, Plan Assets | [3] | 3,599 | 3,519 | ||
Fixed Income Securities [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 3,519 | |||
Ending Balance, Plan Assets | [3] | 3,599 | 3,519 | ||
Fixed Income Securities [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 0 | |||
Ending Balance, Plan Assets | [3] | 0 | 0 | ||
Fixed Income Securities [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 0 | |||
Ending Balance, Plan Assets | [3] | 0 | 0 | ||
Fixed Income Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3] | 0 | |||
Ending Balance, Plan Assets | [3] | 0 | 0 | ||
Real Estate [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 1,857 | ||||
Ending Balance, Plan Assets | 1,829 | [3],[5] | 1,857 | ||
Real Estate [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[5] | 396 | |||
Ending Balance, Plan Assets | [3],[5] | 429 | 396 | ||
Real Estate [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[5] | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | [3],[5] | ||
Real Estate [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[5] | 15 | |||
Ending Balance, Plan Assets | 13 | 15 | [3],[5] | ||
Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 1,446 | [3],[5] | 1,285 | ||
Defined Benefit Plan, Plan Assets, Business Combination | 0 | ||||
Realized gains (losses) | 10 | 31 | |||
Unrealized gains (losses) relating to instruments still held in the reporting period | 38 | 17 | |||
Purchases, sales and settlements, net | (107) | 113 | |||
Ending Balance, Plan Assets | [3],[5] | 1,387 | 1,446 | ||
Other [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[6] | 2,796 | |||
Ending Balance, Plan Assets | [3],[6] | 2,630 | 2,796 | ||
Other [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[6] | 2,509 | |||
Ending Balance, Plan Assets | [3],[6] | 2,368 | 2,509 | ||
Other [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Other [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[6] | 287 | |||
Ending Balance, Plan Assets | [3],[6] | 262 | 287 | ||
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[6] | 0 | |||
Ending Balance, Plan Assets | [3],[6] | 0 | 0 | ||
Cash & Cash Equivalents [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[7] | 577 | |||
Ending Balance, Plan Assets | [3],[7] | 358 | 577 | ||
Cash & Cash Equivalents [Member] | Not Subject to Leveling [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[7] | 498 | |||
Ending Balance, Plan Assets | [3],[7] | 138 | 498 | ||
Cash & Cash Equivalents [Member] | Quoted price in active markets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 0 | ||||
Ending Balance, Plan Assets | 0 | 0 | |||
Cash & Cash Equivalents [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[7] | 79 | |||
Ending Balance, Plan Assets | [3],[7] | 220 | 79 | ||
Cash & Cash Equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [3],[7] | 0 | |||
Ending Balance, Plan Assets | [3],[7] | 0 | 0 | ||
Subtotal [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | 35,255 | ||||
Ending Balance, Plan Assets | 34,870 | 35,255 | |||
Other Assets & Liabilities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | [8] | 434 | |||
Ending Balance, Plan Assets | $ 383 | $ 434 | [8] | ||
[1] | Represents commingled funds that invest primarily in common stocks. | ||||
[2] | Represents enhanced equity separate account and commingled fund portfolios. A portion of the portfolio may include long-short market neutral and relative value strategies that invest in publicly traded, equity and fixed income securities, as well as derivatives of equity and fixed income securities and foreign currency. | ||||
[3] | In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets. | ||||
[4] | Represents limited partner investments with general partners that primarily invest in debt and equity. | ||||
[5] | Represents investments in real estate including commingled funds and directly held properties. | ||||
[6] | Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities. | ||||
[7] | Represents short-term commercial paper, bonds and other cash or cash-like instruments. | ||||
[8] | Represents trust receivables and payables that are not leveled. |
Employee Benefit Plans (Postret
Employee Benefit Plans (Postretirement Benefit Plans) (Narrative) (Details) - Other Postretirement Benefits Plan [Member] $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage Of Projected Benefit Obligation Comprised Of Domestic Plan Benefits | 87.00% |
Future Amortization of Gain | $ 12 |
Future amortization of prior service credit | 42 |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 81 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 75 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 72 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 67 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 61 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 253 |
Employee Benefit Plans (Multiem
Employee Benefit Plans (Multiemployer Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Multiemployer Plans [Line Items] | |||
Document Fiscal Year Focus | 2,018 | ||
Multiemployer Plans General Nature | The risks of participating in these multiemployer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. Lastly, if we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans a withdrawal liability based on the underfunded status of the plan. | ||
Multiemployer Plans Period Contributions | $ 151 | $ 145 | $ 131 |
Multiemployer Plans Period Contributions Other Than Pensions | $ 20 | $ 19 | 17 |
National Elevator Industry Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Entity Tax Identification Number | 232,694,291 | ||
Multiemployer Plans Certified Zone Status | Green | Green | |
Multiemployer Plans Funding Improvement Plan And Rehabilitation Plan | No | ||
Multiemployer Plans Period Contributions | $ 120 | $ 114 | 100 |
Multiemployer Plans Surcharge | No | ||
Multiemployer Plans Collective Bargaining Arrangement Expiration Date | Jul. 8, 2022 | ||
Multiemployer Plans, Period Contributions, Significance of Contributions [true false] | 1 | 1 | |
Other Funds [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plans Period Contributions | $ 31 | $ 31 | $ 31 |
Employee Benefit Plans (Stock B
Employee Benefit Plans (Stock Based Compensation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Document Fiscal Year Focus | 2,018 | |||
Cost of Share Based Payments | $ 251 | $ 192 | $ 153 | |
Expected Volatility | 19.00% | |||
Expected Volatility, Minimum | 17.50% | 20.00% | ||
Expected Volatility, Maximum | 21.10% | 20.00% | ||
Expected term (in years) | 6 years 6 months | 6 years 6 months | ||
Weighted-average volatility | 18.00% | 19.00% | 20.00% | |
Expected dividend yield | 2.20% | 2.40% | 2.70% | |
Risk-free rate, minimum | 1.30% | 0.50% | 0.20% | |
Risk-free rate, maximum | 2.70% | 2.50% | 2.60% | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 184,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 58,000 | |||
Expected Range Of Shares Awarded Annually Under Long Term Incentive Plan | 1.0% to 1.5% | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 6 months | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 7 months | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period Start, Shares | 1,745 | |||
Granted, Shares | 255 | |||
Exercised/earned, Shares | 389 | |||
Cancelled, Shares | 8 | |||
Other, Shares | 0 | |||
Period End, Shares | 1,603 | 1,745 | ||
Period Start, Average Price | [1] | $ 94.35 | ||
Granted, Average Price | [1] | 126.94 | ||
Exercised/Earned, Average Price | [1] | 92.52 | ||
Cancelled, Average Price | [1] | 111.87 | ||
Other, Average Price | [1] | 0 | ||
Period End, Average Price | [1] | $ 99.89 | $ 94.35 | |
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period Start, Shares | 32,722 | |||
Granted, Shares | 4,579 | |||
Exercised/earned, Shares | 4,781 | |||
Cancelled, Shares | 454 | |||
Other, Shares | 0 | |||
Period End, Shares | 32,066 | 32,722 | ||
Period Start, Average Price | [1] | $ 92.54 | ||
Granted, Average Price | [1] | 127.37 | ||
Exercised/Earned, Average Price | [1] | 74.47 | ||
Cancelled, Average Price | [1] | 110.50 | ||
Other, Average Price | [1] | 0 | ||
Period End, Average Price | [1] | $ 99.95 | $ 92.54 | |
Performance Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period Start, Shares | 1,876 | |||
Granted, Shares | 598 | |||
Exercised/earned, Shares | 181 | |||
Cancelled, Shares | 487 | |||
Other, Shares | 0 | |||
Period End, Shares | 1,806 | 1,876 | ||
Period Start, Average Price | [2] | $ 106.38 | ||
Granted, Average Price | [2] | 128.20 | ||
Exercised/Earned, Average Price | [2] | 115.08 | ||
Cancelled, Average Price | [2] | 114.99 | ||
Other, Average Price | [2] | 0 | ||
Period End, Average Price | [2] | $ 110.41 | $ 106.38 | |
Other Incentive Shares/Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period Start, Shares | 2,182 | |||
Granted, Shares | 992 | |||
Exercised/earned, Shares | 406 | |||
Cancelled, Shares | 72 | |||
Other, Shares | 351 | |||
Period End, Shares | 3,047 | 2,182 | ||
Stock Options/Stock Appreciation Rights SARS [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Awards Vested and Expected to Vest, Awards | 33,059 | |||
Equity Awards Vested and Expected to Vest, Average Price | [3] | $ 98.97 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 407 | |||
Equity Awards Vested and Expected to Vest, Remaining Term | 5 years 5 months | |||
Equity Awards That Are Exercisable, Awards | 21,761 | |||
Equity Awards That Are Exercisable, Average Price | [3] | $ 92.08 | ||
Equity Awards That Are Exercisable, Aggregate Intrinsic Value | $ 365 | |||
Equity Awards That Are Exercisable, Remaining Term | 4 years | |||
Performance Share Units/Other Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Awards Vested and Expected to Vest, Awards | 4,821 | |||
Equity Awards Vested and Expected to Vest, Average Price | [3] | $ 0 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 513 | |||
Equity Awards Vested and Expected to Vest, Remaining Term | 1 year 8 months | |||
Continuing operations [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost of Share Based Payments | $ 251 | $ 192 | $ 152 | |
Discontinued operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost of Share Based Payments | $ 0 | $ 0 | $ 1 | |
Rockwell Collins [Member] | Performance Share Units/Other Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Awards Vested and Expected to Vest, Awards | 507 | |||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 54 | |||
Equity Awards Vested and Expected to Vest, Remaining Term | 2 years 2 months | |||
[1] | weighted-average exercise price | |||
[2] | weighted-average grant stock price | |||
[3] | weighted-average exercise price per share |
Employee Benefit Plans (Stock_2
Employee Benefit Plans (Stock Based Compensation) (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Volatility, Minimum | 17.50% | 20.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 184,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 58,000 | ||
Expected Range Of Shares Awarded Annually Under Long Term Incentive Plan | 1.0% to 1.5% | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 42 | $ 38 | $ 49 |
Proceeds from Stock Options Exercised | 36 | 29 | 17 |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | 59 | 100 | 69 |
Employee Service Share Based Compensation Tax Benefit Realized From Vesting Of Performance Share Units | 13 | 12 | 17 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 240 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Vested In Period Total Fair Value | $ 149 | $ 138 | $ 165 |
Stock Options/Stock Appreciation Rights SARS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Awards Vested and Expected to Vest, Awards | 33,059 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 407 | ||
Equity Awards Vested and Expected to Vest, Remaining Term | 5 years 5 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 20.24 | $ 17.22 | $ 14.02 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 283 | $ 320 | $ 214 |
Performance Share Units/Other Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Awards Vested and Expected to Vest, Awards | 4,821 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 513 | ||
Equity Awards Vested and Expected to Vest, Remaining Term | 1 year 8 months | ||
Share Based Compensation Arrangement By Share Based Payment Award Options and Other Restricted Awards Exercised In Period Total Intrinsic Value | $ 74 | $ 49 | $ 61 |
Performance Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 131.55 | $ 111 | $ 91.63 |
Rockwell Collins [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 50 | ||
Rockwell Collins [Member] | Performance Share Units/Other Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Awards Vested and Expected to Vest, Awards | 507 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 54 | ||
Equity Awards Vested and Expected to Vest, Remaining Term | 2 years 2 months |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Income, United States | $ 3,630 | $ 2,990 | $ 2,534 |
Income, Foreign | 4,650 | 4,773 | 4,599 |
Income from continuing operations before income taxes | 8,280 | 7,763 | 7,133 |
Undistributed Earnings of Foreign Subsidiaries | 18,000 | ||
Current Tax Provision, Federal | 442 | 1,577 | 30 |
Current Tax Provision, State | 211 | 64 | (21) |
Current Tax Provision, Foreign | 1,238 | 1,140 | 1,290 |
Current Income Tax Expense Benefit | 1,891 | 2,781 | 1,299 |
Future Tax Provision, Federal | 57 | (27) | 318 |
Future Tax Provision, State | 62 | 84 | 134 |
Future Tax Provision, Foreign | 616 | 5 | (54) |
Deferred income tax provision | 735 | 62 | 398 |
Income tax expense | 2,626 | 2,843 | 1,697 |
Attributable to items credited (charged) to equity and goodwill | $ 501 | $ (128) | $ (299) |
Statutory U.S. federal income tax rate | 21.00% | 35.00% | 35.00% |
Tax on international activities | 0.90% | (6.40%) | (8.10%) |
Tax audit settlements | 0.00% | (0.70%) | (2.90%) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 9.00% | 8.90% | 0.00% |
Other | 0.80% | (0.20%) | (0.20%) |
Effective income tax rate | 31.70% | 36.60% | 23.80% |
2011 - 2012 Tax Years [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax Adjustments Settlements And Unusual Provisions | $ 206 | ||
French Tax Law Change [Member] | |||
Income Tax Contingency [Line Items] | |||
Income Tax Credits and Adjustments | $ 48 | $ 25 | |
Tax Year 2016 [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax Adjustments Settlements And Unusual Provisions | 55 | ||
US TCJA Tax Law Change [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax Adjustments Settlements And Unusual Provisions | $ 744 | $ 690 |
Income Taxes (Tax Carryforwards
Income Taxes (Tax Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Tax Credit Carryforward [Line Items] | ||
Insurance and employee benefits | $ 1,154 | $ 928 |
Other asset basis differences | 1,013 | 798 |
Other liability basis differences | 1,482 | 1,158 |
Tax loss carryforwards | 583 | 544 |
Tax credit carryforwards | 1,050 | 948 |
Valuation allowances | 605 | 582 |
Future Income Tax Benefits | 4,677 | 3,794 |
Other Asset Basis Differences | 2,159 | 1,315 |
Other items, net | 123 | 411 |
Future Income Taxes Payable | 6,744 | 3,826 |
Tax Credit Carryforwards | 1,050 | |
Tax Loss Carryforwards | 2,965 | |
Deferred Tax Liabilities Intangible Assets | 4,462 | $ 2,100 |
Expiration Period Current To Five Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforwards | 32 | |
Tax Loss Carryforwards | 286 | |
Expiration Period Six To Ten Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforwards | 33 | |
Tax Loss Carryforwards | 189 | |
Expiration Period Eleven To Twenty Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforwards | 354 | |
Tax Loss Carryforwards | 559 | |
Expiration Period Indefinite [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforwards | 631 | |
Tax Loss Carryforwards | $ 1,931 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Examination [Line Items] | ||||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 1,609 | |||||
Balance at January 1 | 1,189 | $ 1,086 | $ 1,169 | |||
Additions for tax positions related to the current year | 192 | 192 | 69 | |||
Additions for tax positions of prior years | 344 | 73 | 167 | |||
Reductions for tax positions of prior years | 91 | 91 | 61 | |||
Settlements | 15 | 71 | 258 | |||
Balance at December 31 | $ 1,086 | 1,619 | 1,189 | 1,086 | ||
Gross interest expense related to unrecognized tax benefits | 37 | 34 | 41 | |||
Total accrued interest balance at December 31 | 185 | 255 | $ 215 | $ 185 | ||
Minimum [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Italian Tax Authority Amnesty Program Potential Noncash Gain | 90 | |||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 470 | |||||
Maximum [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Italian Tax Authority Amnesty Program Potential Noncash Gain | 110 | |||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 845 | |||||
Closure of IRS audit of Goodrich Corporation Tax Years 2011-2012 [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Tax Settlement Gain (Loss) Noncash | $ 58 | |||||
Closure of IRS audit of UTC Tax Years 2011-2012 [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Tax Settlement Gain (Loss) Noncash | 172 | |||||
Tax Settlement Interest Gain (Loss) Noncash | $ 22 | |||||
Closure of IRS audit of UTC Tax Year 2013 [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Tax Settlement Gain (Loss) Noncash | $ 64 | |||||
Tax Settlement Interest Gain (Loss) Noncash | $ 9 |
Restructuring and Other Costs_2
Restructuring and Other Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Document Fiscal Year Focus | 2,018 | |
Net pre-tax restructuring costs (benefit) | $ 307 | |
Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 147 | |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 162 | |
Non-service pension (benefit) [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | (2) | |
Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 207 | |
Utilization and foreign exchange | (69) | |
Restructuring Reserve | 138 | |
Expected Costs | 286 | |
Restructuring cost incurred | (207) | |
Remaining Costs | 79 | |
Current Year Actions [Member] | Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 76 | |
Current Year Actions [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 133 | |
Current Year Actions [Member] | Non-service pension (benefit) [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | (2) | |
Current Year Actions [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 191 | |
Utilization and foreign exchange | (76) | |
Restructuring Reserve | 115 | |
Current Year Actions [Member] | Facility Exit, Lease Termination and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 16 | |
Utilization and foreign exchange | 7 | |
Restructuring Reserve | 23 | |
Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 94 | |
Utilization and foreign exchange | (126) | |
Restructuring Reserve | 53 | $ 85 |
Expected Costs | 361 | |
Restructuring cost incurred | (94) | (176) |
Remaining Costs | 91 | |
Prior Year Actions [Member] | Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 72 | |
Prior Year Actions [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 22 | |
Prior Year Actions [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 62 | |
Utilization and foreign exchange | (89) | |
Restructuring Reserve | 57 | 84 |
Prior Year Actions [Member] | Facility Exit, Lease Termination and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 32 | |
Utilization and foreign exchange | (37) | |
Restructuring Reserve | (4) | 1 |
Two Years Prior Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 6 | |
Restructuring Reserve | 58 | |
Otis [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 69 | |
Otis [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 55 | |
Restructuring cost incurred | (48) | |
Remaining Costs | 7 | |
Otis [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 66 | |
Restructuring cost incurred | (20) | (43) |
Remaining Costs | 3 | |
Carrier [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 80 | |
Carrier [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 111 | |
Restructuring cost incurred | (64) | |
Remaining Costs | 47 | |
Carrier [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 77 | |
Restructuring cost incurred | 0 | (76) |
Remaining Costs | 1 | |
Pratt and Whitney [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | (7) | |
Pratt and Whitney [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 3 | |
Restructuring cost incurred | (3) | |
Remaining Costs | 0 | |
Pratt and Whitney [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 7 | |
Restructuring cost incurred | 0 | (7) |
Remaining Costs | 0 | |
Collins Aerospace Systems [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 160 | |
Collins Aerospace Systems [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 111 | |
Restructuring cost incurred | (87) | |
Remaining Costs | 24 | |
Collins Aerospace Systems [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 204 | |
Restructuring cost incurred | (74) | (43) |
Remaining Costs | 87 | |
Eliminations and other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (benefit) | 5 | |
Eliminations and other [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 6 | |
Restructuring cost incurred | (5) | |
Remaining Costs | 1 | |
Eliminations and other [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 7 | |
Restructuring cost incurred | 0 | $ (7) |
Remaining Costs | $ 0 |
Financial Instruments (Details)
Financial Instruments (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018EUR (€) | |
Derivatives, Fair Value [Line Items] | |||
Derivatives designated as hedging instruments - assets | $ 22 | $ 178 | |
Derivatives designated as hedging instruments - liabilities | 194 | 18 | |
Derivatives not designated as hedging instruments - assets | 63 | 75 | |
Derivatives not designated as hedging instruments - liabilities | 92 | 60 | |
Four Quarter Rolling Average Of Notional Amount Of Foreign Exchange Contracts Hedging Foreign Currency Transactions | 20,100 | 19,100 | |
Gain (loss) recorded in Accumulated other comprehensive loss | (307) | 347 | |
(Gain) loss reclassified from Accumulated other comprehensive loss into Product sales (effective portion) | $ (16) | (39) | |
Description of Net Investment Hedge Activity | <div style="line-height:120%;padding-top:8px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have approximately </font><font style="font-family:inherit;font-size:10pt;">€4.95 billion</font><font style="font-family:inherit;font-size:10pt;"> of euro-denominated long-term debt and </font><font style="font-family:inherit;font-size:10pt;">€750 million</font><font style="font-family:inherit;font-size:10pt;"> of euro-denominated commercial paper borrowings outstanding, which qualify as a net investment hedge against our investments in European businesses</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">. </font><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:inherit;font-size:10pt;">December 31, 2018</font><font style="font-family:inherit;font-size:10pt;">, the net investment hedge is deemed to be effective. </font></div></div>" id="sjs-B11"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have approximately </font><font style="font-family:inherit;font-size:10pt;">€4.95 billion</font><font style="font-family:inherit;font-size:10pt;"> of euro-denominated long-term debt and </font><font style="font-family:inherit;font-size:10pt;">€750 million</font><font style="font-family:inherit;font-size:10pt;"> of euro-denominated commercial paper borrowings outstanding, which qualify as a net investment hedge against our investments in European businesses</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">. </font><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:inherit;font-size:10pt;">December 31, 2018</font><font style="font-family:inherit;font-size:10pt;">, the net investment hedge is deemed to be effective. </font></div></div> | ||
Long-term debt, euro-denominated | € | € 4,950 | ||
Commercial paper, euro-denominated | $ 858 | € 750 | |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | (48) | ||
Gain recognized in Other income, net | $ 115 | 77 | |
Maximum Length of Time, Foreign Currency Cash Flow Hedge | 4 years 20 days | ||
Other Current Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives designated as hedging instruments - assets | $ 10 | 77 | |
Derivatives not designated as hedging instruments - assets | 44 | 70 | |
Other Noncurrent Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives designated as hedging instruments - assets | 12 | 101 | |
Derivatives not designated as hedging instruments - assets | 19 | 5 | |
Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives designated as hedging instruments - liabilities | 83 | 10 | |
Derivatives not designated as hedging instruments - liabilities | 89 | 57 | |
Other Long-Term Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives designated as hedging instruments - liabilities | 111 | 8 | |
Derivatives not designated as hedging instruments - liabilities | $ 3 | $ 3 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 51 | $ 64 |
Derivative Assets | 85 | 253 |
Derivative liabilities | 286 | 78 |
Recurring fair value measurements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 51 | 64 |
Derivative Assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring fair value measurements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Derivative Assets | 85 | 253 |
Derivative liabilities | 286 | 78 |
Recurring fair value measurements | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value Techniques) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | $ 334 | $ 127 |
Customer Financing Notes Receivable | 272 | 609 |
Short-term Debt | 1,469 | 392 |
Long-term debt (excluding capitalized leases) | 43,996 | 27,067 |
Long-term liabilities | 508 | 362 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 314 | 121 |
Customer Financing Notes Receivable | 265 | 596 |
Short-term Debt | 1,469 | 392 |
Long-term debt (excluding capitalized leases) | 44,003 | 29,180 |
Long-term liabilities | 467 | 330 |
Level 1 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 0 | 0 |
Customer Financing Notes Receivable | 0 | 0 |
Short-term Debt | 0 | 0 |
Long-term debt (excluding capitalized leases) | 0 | 0 |
Long-term liabilities | 0 | 0 |
Level 2 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 314 | 121 |
Customer Financing Notes Receivable | 265 | 596 |
Short-term Debt | 1,258 | 300 |
Long-term debt (excluding capitalized leases) | 43,620 | 28,970 |
Long-term liabilities | 467 | 330 |
Level 3 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 0 | 0 |
Customer Financing Notes Receivable | 0 | 0 |
Short-term Debt | 211 | 92 |
Long-term debt (excluding capitalized leases) | 383 | 210 |
Long-term liabilities | $ 0 | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Total Assets | $ 6,332 | $ 5,510 |
Total Liabilities | 6,844 | 5,687 |
Current Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 4,732 | 3,976 |
Noncurrent Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 1,600 | 1,534 |
Current Liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Liabilities | 4,946 | 3,601 |
Noncurrent Liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Liabilities | $ 1,898 | $ 2,086 |
International Aero Engines AG [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Methodology | Pratt & Whitney holds a net 61% interest in the International Aero Engines AG (IAE) collaboration with MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC) and a 49.5% ownership interest in IAE. IAE's business purpose is to coordinate the design, development, manufacturing and product support of the V2500 engine program through involvement with the collaborators. | |
Variable Interest Entity, Ownership Percentage | 49.50% | |
International Aero Engines LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Methodology | Additionally, Pratt & Whitney, JAEC and MTU are participants in International Aero Engines, LLC (IAE LLC), whose business purpose is to coordinate the design, development, manufacturing and product support for the PW1100G-JM engine for the Airbus A320neo aircraft and the PW1400G-JM engine for the Irkut MC21 aircraft. Pratt & Whitney holds a 59% net interest and a 59% ownership interest in IAE LLC. IAE and IAE LLC retain limited equity with the primary economics of the programs passed to the participants. | |
Variable Interest Entity, Ownership Percentage | 59.00% |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Jan. 01, 2018 | [1] | Dec. 31, 2017 | ||
Guarantee Obligations [Line Items] | |||||||
Environmental, health and safety, tax and employment matters | $ 175 | $ 179 | |||||
Balance as of January 1 | $ 1,324 | $ 1,199 | |||||
Balance as of January 1 (1) | 1,324 | 1,199 | 1,449 | $ 1,146 | 1,324 | ||
Warranties and performance guarantees issued | 604 | 323 | |||||
Settlements made | 493 | 207 | |||||
Other | 192 | [2] | 9 | ||||
Balance as of December 31 | $ 1,449 | $ 1,324 | |||||
Commercial aerospace financing arrangements (see Note 5) | |||||||
Guarantee Obligations [Line Items] | |||||||
Maximum Potential Payment | 348 | 336 | |||||
Carrying Amount of Liability | 9 | 8 | |||||
Credit Facilities And Debt Obligations (expire 2019 to 2028) | |||||||
Guarantee Obligations [Line Items] | |||||||
Maximum Potential Payment | 116 | 256 | |||||
Carrying Amount of Liability | 0 | 15 | |||||
Performance Guarantees | |||||||
Guarantee Obligations [Line Items] | |||||||
Maximum Potential Payment | 55 | 56 | |||||
Carrying Amount of Liability | $ 5 | $ 2 | |||||
[1] | 1 Change in beginning balance due to revenue recognition reclassification of extended warranty to net contract asset/liability. | ||||||
[2] | 2 Increase in Other is driven by Rockwell Collins acquisition. |
Contingent Liabilities (Details
Contingent Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases Future Minimum Payments Due | $ 2,916 | ||
Operating Leases Future Minimum Payments Due Current | 683 | ||
Operating Leases Future Minimum Payments Due In Two Years | 544 | ||
Operating Leases Future Minimum Payments Due In Three Years | 407 | ||
Operating Leases Future Minimum Payments Due In Four Years | 301 | ||
Operating Leases Future Minimum Payments Due In Five Years | 235 | ||
Operating Leases Future Minimum Payments Due Thereafter | 746 | ||
Rent Expense | 422 | $ 411 | $ 386 |
Accrual For Environmental Loss Contingencies | $ 830 | ||
German Tax Office Against Otis [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Lawsuit Filing Date | 8/3/2012 | ||
Loss Contingency Allegations | As previously disclosed, UTC has been involved in administrative review proceedings with the German Tax Office, which concern approximately €215 million (approximately $247 million) of tax benefits that we have claimed related to a 1998 reorganization of the corporate structure of Otis operations in Germany. Upon audit, these tax benefits were disallowed by the German Tax Office. UTC estimates interest associated with the aforementioned tax benefits is an additional approximately €118 million (approximately $135 million). On August 3, 2012, we filed suit in the local German Tax Court (Berlin-Brandenburg). In March 2016, the local German Tax Court dismissed our suit, and we appealed this decision to the German Federal Tax Court (FTC). Following a hearing on July 24, 2018, the FTC remanded the matter to the local German Tax Court for further proceedings. | ||
Loss Contingency Damages Sought | €215 million (approximately $247 million) | ||
Loss Contingency Actions Taken By Defendant | In 2015, UTC made tax and interest payments to German tax authorities of €275 million (approximately $300 million) in order to avoid additional interest accruals pending final resolution of this matter. | ||
Loss Contingency, Interest | €118 million (approximately $135 million) | ||
Loss Contingency, Interest Paid | €275 million (approximately $300 million) | ||
U.S. Defense Contract Management Claim against Pratt & Whitney | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Lawsuit Filing Date | December 24, 2013 | ||
Loss Contingency Allegations | As previously disclosed, in December 2013, a Divisional Administrative Contracting Officer of the United States Defense Contract Management Agency (DCMA) asserted a claim against Pratt & Whitney to recover overpayments of approximately $177 million plus interest (approximately $82.6 million through December 31, 2018). 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. | ||
Loss Contingency Damages Sought | $177 million | ||
Loss Contingency Actions Taken By Defendant | On March 18, 2014, Pratt & Whitney filed an appeal to the Armed Services Board of Contract Appeals (ASBCA). We continue to believe that the claim is without merit and the matter is currently scheduled for trial later this year. On December 18, 2018, a Divisional Administrative Contracting Officer of the DCMA issued a second claim against Pratt & Whitney that similarly alleges that its method of determining the cost of collaborator parts does not comply with the cost accounting standards for calendar years 2013 through 2017. This second claim demands payment of $269 million plus interest (approximately $38.9 million), which we also believe is without merit and which Pratt & Whitney appealed to the ASBCA on January 9, 2019. | ||
Loss Contingency, Interest | $82.6 million | ||
Asbestos Matter [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Allegations | As previously disclosed, like many other industrial companies, we and our subsidiaries have been named as defendants in lawsuits alleging personal injury as a result of exposure to asbestos integrated into certain of our products or business premises. While we have never manufactured asbestos and no longer incorporate it in any currently-manufactured products, certain of our historical products, like those of many other manufacturers, have contained components incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or were covered in full or in part by insurance or other forms of indemnity. Additional cases were litigated and settled without any insurance reimbursement. The amounts involved in asbestos related claims were not material individually or in the aggregate in any year. | ||
Loss Contingency, Management's Assessment and Process | Our estimated total liability to resolve all pending and unasserted potential future asbestos claims through 2059 is approximately $335 million and is principally recorded in Other long-term liabilities on our Consolidated Balance Sheet as of December 31, 2018. This amount is on a pre-tax basis, not discounted, and excludes the Company’s legal fees to defend the asbestos claims (which will continue to be expensed by the Company as they are incurred). In addition, the Company has an insurance recovery receivable for probable asbestos related recoveries of approximately $155 million, which is included primarily in Other assets on our Consolidated Balance Sheet as of December 31, 2018. The amounts recorded by UTC for asbestos-related liabilities and insurance recoveries are based on currently available information and assumptions that we believe are reasonable. Our actual liabilities or insurance recoveries could be higher or lower than those recorded if actual results vary significantly from the assumptions. Key variables in these assumptions include the number and type of new claims to be filed each year, the outcomes or resolution of such claims, the average cost of resolution of each new claim, the amount of insurance available, allocation methodologies, the contractual terms with each insurer with whom we have reached settlements, the resolution of coverage issues with other excess insurance carriers with whom we have not yet achieved settlements, and the solvency risk with respect to our insurance carriers. Other factors that may affect our future liability include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, legal rulings that may be made by state and federal courts, and the passage of state or federal legislation. At the end of each year, the Company will evaluate all of these factors and, with input from an outside actuarial expert, make any necessary adjustments to both our estimated asbestos liabilities and insurance recoveries. | ||
Loss Contingency, Estimate of Possible Loss | $ 335 | ||
Loss Contingency, Receivable | $ 155 | ||
U.S. Defense Contract Management Second Claim against Pratt and Whitney [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Lawsuit Filing Date | December 18, 2018 | ||
Loss Contingency Damages Sought | $269 million | ||
Loss Contingency, Interest | $38.9 million |
Segment Financial Data (By Segm
Segment Financial Data (By Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Document Fiscal Year Focus | 2,018 | ||||||||||
Revenues | $ 18,044 | $ 16,510 | $ 16,705 | $ 15,242 | $ 15,680 | $ 15,062 | $ 15,280 | $ 13,815 | $ 66,501 | $ 59,837 | $ 57,244 |
Operating Income (Loss) | 8,553 | 8,138 | 8,221 | ||||||||
Total Assets | 134,211 | 96,920 | 134,211 | 96,920 | 89,706 | ||||||
Capital Expenditures | 1,902 | 2,014 | 1,699 | ||||||||
Depreciation & Amortization | 2,433 | 2,140 | 1,962 | ||||||||
Major Customers, U.S. Government Sales | 7,443 | 5,798 | 5,626 | ||||||||
Major Customers, Airbus Sales | 10,025 | 8,908 | 7,688 | ||||||||
Total Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 67,857 | 61,004 | 58,103 | ||||||||
Operating Income (Loss) | 9,264 | 8,658 | 8,641 | ||||||||
Total Assets | 134,019 | 93,413 | 134,019 | 93,413 | 87,718 | ||||||
Capital Expenditures | 1,816 | 1,909 | 1,611 | ||||||||
Depreciation & Amortization | 2,282 | 2,044 | 1,882 | ||||||||
Eliminations and other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (1,356) | (1,167) | (859) | ||||||||
Operating Income (Loss) | (236) | (81) | (18) | ||||||||
Total Assets | 192 | 3,507 | 192 | 3,507 | 1,988 | ||||||
Capital Expenditures | 86 | 105 | 88 | ||||||||
Depreciation & Amortization | 151 | 96 | 80 | ||||||||
General corporate expenses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Income (Loss) | (475) | (439) | (402) | ||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Major Customers, U.S. Government Sales | 175 | 152 | 138 | ||||||||
Otis [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 12,904 | 12,341 | 11,893 | ||||||||
Operating Income (Loss) | 1,915 | 2,002 | 2,125 | ||||||||
Total Assets | 9,374 | 9,421 | 9,374 | 9,421 | 8,867 | ||||||
Capital Expenditures | 172 | 133 | 94 | ||||||||
Depreciation & Amortization | 190 | 177 | 171 | ||||||||
Carrier [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 18,922 | 17,812 | 16,851 | ||||||||
Operating Income (Loss) | 3,777 | 3,165 | 2,848 | ||||||||
Total Assets | 22,189 | 22,657 | 22,189 | 22,657 | 21,787 | ||||||
Capital Expenditures | 263 | 326 | 340 | ||||||||
Depreciation & Amortization | 357 | 372 | 354 | ||||||||
Pratt and Whitney [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 19,397 | 16,160 | 14,894 | ||||||||
Operating Income (Loss) | 1,269 | 1,300 | 1,501 | ||||||||
Total Assets | 29,341 | 26,768 | 29,341 | 26,768 | 22,971 | ||||||
Capital Expenditures | 866 | 923 | 725 | ||||||||
Depreciation & Amortization | 852 | 672 | 550 | ||||||||
Major Customers, U.S. Government Sales | 4,489 | 3,347 | 3,187 | ||||||||
Collins Aerospace Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 16,634 | 14,691 | 14,465 | ||||||||
Operating Income (Loss) | 2,303 | 2,191 | 2,167 | ||||||||
Total Assets | $ 73,115 | $ 34,567 | 73,115 | 34,567 | 34,093 | ||||||
Capital Expenditures | 515 | 527 | 452 | ||||||||
Depreciation & Amortization | 883 | 823 | 807 | ||||||||
Major Customers, U.S. Government Sales | 2,779 | $ 2,299 | $ 2,301 | ||||||||
Commercial Aerospace [Member] | Total Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 26,591 | ||||||||||
Commercial Aerospace [Member] | Otis [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Commercial Aerospace [Member] | Carrier [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Commercial Aerospace [Member] | Pratt and Whitney [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 14,027 | ||||||||||
Commercial Aerospace [Member] | Collins Aerospace Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 12,564 | ||||||||||
Military aerospace [Member] | Total Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 9,325 | ||||||||||
Military aerospace [Member] | Otis [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Military aerospace [Member] | Carrier [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | ||||||||||
Military aerospace [Member] | Pratt and Whitney [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 5,315 | ||||||||||
Military aerospace [Member] | Collins Aerospace Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 4,010 | ||||||||||
Commercial and industrial, non aerospace [Member] | Total Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 31,941 | ||||||||||
Commercial and industrial, non aerospace [Member] | Otis [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 12,904 | ||||||||||
Commercial and industrial, non aerospace [Member] | Carrier [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 18,922 | ||||||||||
Commercial and industrial, non aerospace [Member] | Pratt and Whitney [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 55 | ||||||||||
Commercial and industrial, non aerospace [Member] | Collins Aerospace Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 60 | ||||||||||
Product [Member] | Total Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 46,643 | ||||||||||
Product [Member] | Otis [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 5,636 | ||||||||||
Product [Member] | Carrier [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 15,682 | ||||||||||
Product [Member] | Pratt and Whitney [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 11,410 | ||||||||||
Product [Member] | Collins Aerospace Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 13,915 | ||||||||||
Service [Member] | Total Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 21,214 | ||||||||||
Service [Member] | Otis [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 7,268 | ||||||||||
Service [Member] | Carrier [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,240 | ||||||||||
Service [Member] | Pratt and Whitney [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 7,987 | ||||||||||
Service [Member] | Collins Aerospace Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 2,719 |
Segment Financial Data (By Geog
Segment Financial Data (By Geographic Region) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,018 | ||||||||||
Revenues | $ 18,044 | $ 16,510 | $ 16,705 | $ 15,242 | $ 15,680 | $ 15,062 | $ 15,280 | $ 13,815 | $ 66,501 | $ 59,837 | $ 57,244 |
External Net Sales by Geography | 66,501 | 59,837 | 57,244 | ||||||||
United States Export Sales | $ 14,228 | $ 11,124 | $ 10,827 | ||||||||
Operating Income (Loss) | $ 8,553 | $ 8,138 | $ 8,221 | ||||||||
Long-Lived Assets by Geography | 12,297 | 10,186 | 9,158 | ||||||||
UNITED STATES | |||||||||||
External Net Sales by Geography | 39,481 | 33,912 | 32,335 | ||||||||
Operating Income (Loss) | $ 4,941 | $ 4,126 | $ 4,304 | ||||||||
Long-Lived Assets by Geography | 7,111 | 5,323 | 4,822 | ||||||||
Europe [Member] | |||||||||||
External Net Sales by Geography | 12,857 | 11,879 | 11,151 | ||||||||
United States Export Sales | $ 6,285 | $ 5,273 | $ 5,065 | ||||||||
Operating Income (Loss) | $ 2,141 | $ 1,959 | $ 1,826 | ||||||||
Long-Lived Assets by Geography | 1,908 | 1,817 | 1,538 | ||||||||
Asia Pacific [Member] | |||||||||||
External Net Sales by Geography | 8,847 | 8,770 | 8,260 | ||||||||
United States Export Sales | $ 5,429 | $ 3,634 | $ 3,449 | ||||||||
Operating Income (Loss) | $ 1,476 | $ 1,491 | $ 1,486 | ||||||||
Long-Lived Assets by Geography | 1,349 | 1,113 | 999 | ||||||||
Other | |||||||||||
External Net Sales by Geography | 6,672 | 6,443 | 6,357 | ||||||||
United States Export Sales | $ 2,514 | $ 2,217 | $ 2,313 | ||||||||
Operating Income (Loss) | $ 706 | $ 1,082 | $ 1,025 | ||||||||
Long-Lived Assets by Geography | 1,363 | 1,389 | 1,325 | ||||||||
Eliminations and other | |||||||||||
External Net Sales by Geography | (1,356) | (1,167) | (859) | ||||||||
Operating Income (Loss) | $ (711) | $ (520) | $ (420) | ||||||||
Long-Lived Assets by Geography | 566 | 544 | 474 | ||||||||
Total Segments [Member] | |||||||||||
Revenues | $ 67,857 | $ 61,004 | $ 58,103 | ||||||||
Operating Income (Loss) | 9,264 | 8,658 | 8,641 | ||||||||
Total Segments [Member] | UNITED STATES | |||||||||||
Revenues | 39,481 | ||||||||||
Total Segments [Member] | Other [Member] | |||||||||||
Revenues | 6,672 | ||||||||||
Total Segments [Member] | Asia Pacific [Member] | |||||||||||
Revenues | 8,847 | ||||||||||
Total Segments [Member] | Europe [Member] | |||||||||||
Revenues | 12,857 | ||||||||||
Collins Aerospace Systems [Member] | |||||||||||
Revenues | 16,634 | 14,691 | 14,465 | ||||||||
Operating Income (Loss) | 2,303 | 2,191 | 2,167 | ||||||||
Collins Aerospace Systems [Member] | UNITED STATES | |||||||||||
Revenues | 11,794 | ||||||||||
Collins Aerospace Systems [Member] | Other [Member] | |||||||||||
Revenues | 1,975 | ||||||||||
Collins Aerospace Systems [Member] | Asia Pacific [Member] | |||||||||||
Revenues | 367 | ||||||||||
Collins Aerospace Systems [Member] | Europe [Member] | |||||||||||
Revenues | 2,498 | ||||||||||
Pratt and Whitney [Member] | |||||||||||
Revenues | 19,397 | 16,160 | 14,894 | ||||||||
Operating Income (Loss) | 1,269 | 1,300 | 1,501 | ||||||||
Pratt and Whitney [Member] | UNITED STATES | |||||||||||
Revenues | 14,852 | ||||||||||
Pratt and Whitney [Member] | Other [Member] | |||||||||||
Revenues | 2,674 | ||||||||||
Pratt and Whitney [Member] | Asia Pacific [Member] | |||||||||||
Revenues | 1,277 | ||||||||||
Pratt and Whitney [Member] | Europe [Member] | |||||||||||
Revenues | 594 | ||||||||||
Carrier [Member] | |||||||||||
Revenues | 18,922 | 17,812 | 16,851 | ||||||||
Operating Income (Loss) | 3,777 | 3,165 | 2,848 | ||||||||
Carrier [Member] | UNITED STATES | |||||||||||
Revenues | 9,402 | ||||||||||
Carrier [Member] | Other [Member] | |||||||||||
Revenues | 961 | ||||||||||
Carrier [Member] | Asia Pacific [Member] | |||||||||||
Revenues | 2,849 | ||||||||||
Carrier [Member] | Europe [Member] | |||||||||||
Revenues | 5,710 | ||||||||||
Otis [Member] | |||||||||||
Revenues | 12,904 | 12,341 | 11,893 | ||||||||
Operating Income (Loss) | 1,915 | 2,002 | 2,125 | ||||||||
Otis [Member] | UNITED STATES | |||||||||||
Revenues | 3,433 | ||||||||||
Otis [Member] | Other [Member] | |||||||||||
Revenues | 1,062 | ||||||||||
Otis [Member] | Asia Pacific [Member] | |||||||||||
Revenues | 4,354 | ||||||||||
Otis [Member] | Europe [Member] | |||||||||||
Revenues | 4,055 | ||||||||||
Eliminations and other [Member] | |||||||||||
Revenues | (1,356) | (1,167) | (859) | ||||||||
Operating Income (Loss) | $ (236) | $ (81) | $ (18) |
Selected Quarterly Financial _3
Selected Quarterly Financial Data - Unaudited (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenues | $ 18,044 | $ 16,510 | $ 16,705 | $ 15,242 | $ 15,680 | $ 15,062 | $ 15,280 | $ 13,815 | $ 66,501 | $ 59,837 | $ 57,244 |
Gross margin | 4,297 | 3,974 | 4,283 | 3,962 | 3,885 | 3,956 | 4,116 | 3,679 | |||
Net income attributable to common shareowners | $ 686 | $ 1,238 | $ 2,048 | $ 1,297 | $ 397 | $ 1,330 | $ 1,439 | $ 1,386 | $ 5,269 | $ 4,552 | $ 5,055 |
Earnings Per Share of Common Stock - Basic and Diluted: | |||||||||||
Basic - net income | $ 0.83 | $ 1.56 | $ 2.59 | $ 1.64 | $ 0.50 | $ 1.69 | $ 1.83 | $ 1.75 | $ 6.58 | $ 5.76 | $ 6.18 |
Diluted - net income | $ 0.83 | $ 1.54 | $ 2.56 | $ 1.62 | $ 0.50 | $ 1.67 | $ 1.80 | $ 1.73 | $ 6.50 | $ 5.70 | $ 6.12 |
Performance Graph - Unaudited_2
Performance Graph - Unaudited (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
United Technologies Corporation | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | $ 105 | $ 123 | $ 103 | $ 88 | $ 103 | $ 100 |
S&P 500 Index | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | 150 | 157 | 129 | 115 | 114 | 100 |
Dow Jones Industrial Average | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | $ 159 | $ 165 | $ 128 | $ 110 | $ 110 | $ 100 |