Carrier Global (CARR) 10-Q 26 Oct 23 2023 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2023	Oct. 16, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-39220
Entity Registrant Name	CARRIER GLOBAL CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-4051582
Entity Address, Address Line One	13995 Pasteur Boulevard
Entity Address, City or Town	Palm Beach Gardens
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33418
City Area Code	(561)
Local Phone Number	365-2000
Title of each class	Common Stock ($0.01 par value)
Trading Symbol(s)	CARR
Name of each exchange on which registered	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		839,046,579
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001783180

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net sales
Total Net sales	$ 5,731	$ 5,451	$ 16,996	$ 15,316
Costs and expenses
Research and development	(157)	(143)	(447)	(390)
Selling, general and administrative	(831)	(624)	(2,336)	(1,839)
Total Costs and expenses	(4,903)	(4,741)	(14,830)	(13,328)
Equity method investment net earnings	75	63	171	222
Other income (expense), net	(258)	753	(648)	1,872
Operating profit	645	1,526	1,689	4,082
Non-service pension (expense) benefit	0	0	0	(2)
Interest (expense) income, net	(51)	(56)	(164)	(165)
Income from operations before income taxes	594	1,470	1,525	3,915
Income tax (expense) benefit	(213)	(138)	(524)	(609)
Net income from operations	381	1,332	1,001	3,306
Less: Non-controlling interest in subsidiaries' earnings from operations	24	20	72	42
Net income attributable to common shareowners	$ 357	$ 1,312	$ 929	$ 3,264
Earnings per share
Basic (in dollars per share)	$ 0.43	$ 1.56	$ 1.11	$ 3.86
Diluted (in dollars per share)	$ 0.42	$ 1.53	$ 1.09	$ 3.78
Weighted-average number of shares outstanding
Basic (in shares)	838.7	839.6	836.6	846.1
Diluted (in shares)	854.7	856.5	852.7	864.3
Product
Net sales
Total Net sales	$ 5,081	$ 4,891	$ 15,122	$ 13,723
Costs and expenses
Cost of products and services sold	(3,428)	(3,569)	(10,655)	(9,930)
Service
Net sales
Total Net sales	650	560	1,874	1,593
Costs and expenses
Cost of products and services sold	$ (487)	$ (405)	$ (1,392)	$ (1,169)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income from operations	$ 381	$ 1,332	$ 1,001	$ 3,306
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments arising during period	(246)	(645)	(255)	(1,195)
Pension and post-retirement benefit plan adjustments	0	2	0	2
Unrealized cash flow hedging gain (loss) arising during period	80	0	80	0
Chubb divestiture	0	0	0	(245)
Other comprehensive income (loss), net of tax	(166)	(643)	(175)	(1,438)
Comprehensive income (loss)	215	689	826	1,868
Less: Comprehensive income (loss) attributable to non-controlling interest	23	7	65	20
Comprehensive income (loss) attributable to common shareowners	$ 192	$ 682	$ 761	$ 1,848

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 3,902	$ 3,520
Accounts receivable, net	3,030	2,833
Contract assets, current	605	537
Inventories, net	2,562	2,640
Other assets, current	412	349
Total current assets	10,511	9,879
Future income tax benefits	712	612
Fixed assets, net	2,210	2,241
Operating lease right-of-use assets	577	642
Intangible assets, net	1,100	1,342
Goodwill	9,825	9,977
Pension and post-retirement assets	29	26
Equity method investments	1,166	1,148
Other assets	414	219
Total Assets	26,544	26,086
Liabilities and Equity
Accounts payable	2,887	2,833
Accrued liabilities	2,832	2,610
Contract liabilities, current	496	449
Current portion of long-term debt	134	140
Total current liabilities	6,349	6,032
Long-term debt	8,651	8,702
Future pension and post-retirement obligations	337	349
Future income tax obligations	553	568
Operating lease liabilities	465	529
Other long-term liabilities	1,687	1,830
Total Liabilities	18,042	18,010
Commitments and contingent liabilities (Note 19)
Equity
Common stock	9	9
Treasury stock	(1,972)	(1,910)
Additional paid-in capital	5,517	5,481
Retained earnings	6,486	5,866
Accumulated other comprehensive loss	(1,856)	(1,688)
Non-controlling interest	318	318
Total Equity	8,502	8,076
Total Liabilities and Equity	$ 26,544	$ 26,086

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions		Total	Accumulated Other Comprehensive Income (Loss)	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Non-Controlling Interest
Balance as of beginning of period at Dec. 31, 2021		$ 7,094	$ (989)	$ 9	$ (529)	$ 5,411	$ 2,865	$ 327
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		1,387					1,379	8
Other comprehensive income (loss), net of tax		(308)	(308)
Shares issued under incentive plans, net		(17)				(17)
Stock-based compensation		21				21
Dividends attributable to non-controlling interest		(1)						(1)
Sale of non-controlling interest		(5)						(5)
Treasury stock repurchase		(741)			(741)
Balance as of end of period at Mar. 31, 2022		7,430	(1,297)	9	(1,270)	5,415	4,244	329
Balance as of beginning of period at Dec. 31, 2021		7,094	(989)	9	(529)	5,411	2,865	327
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		3,306
Other comprehensive income (loss), net of tax		(1,438)
Balance as of end of period at Sep. 30, 2022		7,463	(2,405)	9	(1,791)	5,463	5,876	311
Balance as of beginning of period at Dec. 31, 2021		7,094	(989)	9	(529)	5,411	2,865	327
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock repurchase		(1,900)
Balance as of end of period at Dec. 31, 2022		8,076	(1,688)	9	(1,910)	5,481	5,866	318
Balance as of beginning of period at Mar. 31, 2022		7,430	(1,297)	9	(1,270)	5,415	4,244	329
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		587					573	14
Other comprehensive income (loss), net of tax		(487)	(478)					(9)
Dividends declared on common stock	[1]	(253)					(253)
Conversion of cash settled awards		6				6
Stock-based compensation		20				20
Dividends attributable to non-controlling interest		(38)						(38)
Treasury stock repurchase		(273)			(273)
Balance as of end of period at Jun. 30, 2022		6,992	(1,775)	9	(1,543)	5,441	4,564	296
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		1,332					1,312	20
Other comprehensive income (loss), net of tax		(643)	(630)					(13)
Stock-based compensation		17				17
Dividends attributable to non-controlling interest		(1)						(1)
Acquisition of non-controlling interest		27				5		22
Sale of non-controlling interest		(13)						(13)
Treasury stock repurchase		(248)			(248)
Balance as of end of period at Sep. 30, 2022		7,463	(2,405)	9	(1,791)	5,463	5,876	311
Balance as of beginning of period at Dec. 31, 2022		8,076	(1,688)	9	(1,910)	5,481	5,866	318
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		387					373	14
Other comprehensive income (loss), net of tax		54	52					2
Shares issued under incentive plans, net		(9)				(9)
Stock-based compensation		22				22
Treasury stock repurchase		(62)			(62)
Balance as of end of period at Mar. 31, 2023		8,468	(1,636)	9	(1,972)	5,494	6,239	334
Balance as of beginning of period at Dec. 31, 2022		8,076	(1,688)	9	(1,910)	5,481	5,866	318
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		1,001
Other comprehensive income (loss), net of tax		(175)
Treasury stock repurchase		(62)
Balance as of end of period at Sep. 30, 2023		8,502	(1,856)	9	(1,972)	5,517	6,486	318
Balance as of beginning of period at Mar. 31, 2023		8,468	(1,636)	9	(1,972)	5,494	6,239	334
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		233					199	34
Other comprehensive income (loss), net of tax		(63)	(55)					(8)
Shares issued under incentive plans, net		(18)				(18)
Dividends declared on common stock	[2]	(309)					(309)
Stock-based compensation		18				18
Dividends attributable to non-controlling interest		(41)						(41)
Balance as of end of period at Jun. 30, 2023		8,288	(1,691)	9	(1,972)	5,494	6,129	319
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		381					357	24
Other comprehensive income (loss), net of tax		(166)	(165)					(1)
Stock-based compensation		23				23
Dividends attributable to non-controlling interest		(2)						(2)
Sale of non-controlling interest		(22)						(22)
Balance as of end of period at Sep. 30, 2023		$ 8,502	$ (1,856)	$ 9	$ (1,972)	$ 5,517	$ 6,486	$ 318
[1] (1) Cash dividends declared were $0.30 per share for the three months ended June 30, 2022. (1) Cash dividends declared were $0.37 per share for the three months ended June 30, 2023.

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF CHANGES EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Statement of Stockholders' Equity [Abstract]
Common stock dividends, declared (in dollars per share)	$ 0.37	$ 0.30

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating Activities
Net income from operations	$ 1,001	$ 3,306
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	407	257
Deferred income tax provision	(151)	(107)
Stock-based compensation costs	63	58
Equity method investment net earnings	(171)	(222)
(Gain) loss on extinguishment of debt	0	(36)
(Gain) loss on sale of investments / deconsolidation	278	(1,844)
Changes in operating assets and liabilities
Accounts receivable, net	(297)	(433)
Contract assets, current	(74)	(201)
Inventories, net	7	(492)
Other assets, current	(75)	(3)
Accounts payable and accrued liabilities	491	180
Contract liabilities, current	55	34
Defined benefit plan contributions	(17)	(10)
Distributions from equity method investments	45	55
Other operating activities, net	(17)	78
Net cash flows provided by (used in) operating activities	1,545	620
Investing Activities
Capital expenditures	(236)	(213)
Investment in businesses, net of cash acquired	(69)	(472)
Dispositions of businesses	54	2,944
Settlement of derivative contracts, net	(66)	(202)
Kidde-Fenwal, Inc. deconsolidation	(134)	0
Other investing activities, net	20	(12)
Net cash flows provided by (used in) investing activities	(431)	2,045
Financing Activities
Increase (decrease) in short-term borrowings, net	(35)	(125)
Issuance of long-term debt	14	421
Repayment of long-term debt	(15)	(1,185)
Repurchases of common stock	(62)	(1,261)
Dividends paid on common stock	(465)	(384)
Dividends paid to non-controlling interest	(46)	(22)
Other financing activities, net	(79)	(28)
Net cash flows provided by (used in) financing activities	(688)	(2,584)
Effect of foreign exchange rate changes on cash and cash equivalents	(45)	(115)
Net increase (decrease) in cash and cash equivalents and restricted cash	381	(34)
Cash, cash equivalents and restricted cash, beginning of period	3,527	3,025
Cash, cash equivalents and restricted cash, end of period	3,908	2,991
Less: restricted cash	6	6
Cash and cash equivalents, end of period	$ 3,902	$ 2,985

DESCRIPTION OF THE BUSINESS

DESCRIPTION OF THE BUSINESS	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF THE BUSINESS	DESCRIPTION OF THE BUSINESS Carrier Global Corporation (the "Company") is a global leader in intelligent climate and energy solutions with a focus on providing differentiated, digitally-enabled lifecycle solutions to its customers. The Company's portfolio includes industry-leading brands such as Carrier, Toshiba, Automated Logic, Carrier Transicold, Kidde, Edwards and LenelS2 that offer innovative heating, ventilating, air conditioning ("HVAC"), refrigeration, fire, security and building automation technologies to help make the world safer and more comfortable. The Company also provides a broad array of related building services, including audit, design, installation, system integration, repair, maintenance and monitoring. The Company's operations are classified into three segments: HVAC, Refrigeration and Fire & Security. In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements contain all adjustments (which include normal recurring adjustments) necessary to state fairly the financial position, results of operations and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). The accompanying Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for 2022 filed with the SEC on February 7, 2023 (the "2022 Form 10-K").

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The Unaudited Condensed Consolidated Financial Statements include all accounts of the Company and its wholly-owned and majority-owned subsidiaries in which it has control. Inter-company accounts and transactions have been eliminated. Related party transactions between the Company and its equity method investees have not been eliminated. Non-controlling interest represents a non-controlling investor's interests in the results of subsidiaries that the Company controls and consolidates. Planned Portfolio Transformation On April 25, 2023, the Company announced that it entered into a Share Purchase Agreement (the “Agreement”) to acquire the climate solutions business (the "VCS Business") of Viessmann Group GmbH & Co. KG (“Viessmann”), a privately-held company, for approximately €12 billion. The VCS Business develops intelligent, integrated and sustainable technologies, including heat pumps, boilers, photovoltaic systems, home battery storage and digital solutions, primarily for residential customers in Europe. The transaction is expected to close around the end of 2023, subject to customary closing conditions and regulatory approvals. In addition, the Company also announced plans to exit its Fire & Security and Commercial Refrigeration businesses over the course of 2024. See Note 15 – Acquisitions and Note 16 - Divestitures for additional information. Deconsolidation of Kidde-Fenwal, Inc. On May 14, 2023, Kidde-Fenwal, Inc. ("KFI"), an indirect wholly-owned subsidiary of the Company, filed a petition for voluntary reorganization under Chapter 11 of the United States Bankruptcy Code ("Chapter 11") in the United States Bankruptcy Court for the District of Delaware. KFI, an industrial fire detection and suppression business historically reported in the Company's Fire & Security segment, has indicated that it intends to use the bankruptcy process to explore strategic alternatives, including the sale of KFI as a going concern. KFI has further stated that, during the Chapter 11 process, KFI expects that there will be no significant interruptions to its business operations. As of the petition date, KFI was deconsolidated and its respective assets and liabilities were derecognized from the Company's Unaudited Condensed Consolidated Financial Statements. See Note 19 - Commitments and Contingent Liabilities for additional information. Acquisition of Toshiba Carrier Corporation On February 6, 2022, the Company entered into a binding agreement to acquire a majority ownership interest in Toshiba Carrier Corporation (“TCC”), a variable refrigerant flow ("VRF") and light commercial HVAC joint venture between Carrier and Toshiba Corporation. The acquisition was completed on August 1, 2022. As a result, the assets, liabilities and results of operations of TCC are consolidated in the accompanying Unaudited Condensed Consolidated Financial Statements as of the date of acquisition and reported within the Company’s HVAC segment. Upon closing, Toshiba Corporation retained a 5% ownership interest in TCC. See Note 15 – Acquisitions for additional information. Sale of Chubb Fire & Security Business On July 26, 2021, the Company entered into a stock purchase agreement to sell its Chubb Fire and Security business ("Chubb") to APi Group Corporation ("APi"). Chubb, which was reported within the Company’s Fire & Security segment, delivered essential fire safety and security solutions from design and installation to monitoring, service and maintenance across more than 17 countries around the globe. The sale of Chubb was completed on January 3, 2022 (the "Chubb Sale"). See Note 16 - Divestitures for additional information. Separation from United Technologies On April 3, 2020 (the Distribution Date"), United Technologies Corporation ("UTC"), since renamed RTX Corporation ("Raytheon Technologies Corporation" or "RTX"), completed the spin-off of Carrier into an independent, publicly traded company (the "Separation") through a pro-rata distribution (the "Distribution") on a one-for-one basis of all of the outstanding shares of common stock of Carrier to UTC shareowners who held shares of UTC common stock as of the close of business on March 19, 2020, the record date of the Distribution. In connection with the Separation, the Company issued an aggregate principal balance of $11.0 billion of debt and transferred approximately $10.9 billion of cash to UTC on February 27, 2020 and March 27, 2020. On April 1, 2020 and April 2, 2020, the Company received cash contributions totaling $590 million from UTC related to the Separation. Recently Issued and Adopted Accounting Pronouncements The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") is the sole source of authoritative U.S. GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues Accounting Standards Updates ("ASU") to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. ASUs pending adoption were assessed and determined to be either not applicable or are not expected to have a material impact on the accompanying Unaudited Condensed Consolidated Financial Statements.

INVENTORIES, NET

INVENTORIES, NET	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
INVENTORIES, NET	INVENTORIES, NET Inventories are stated at the lower of cost or estimated net realizable value. Cost is primarily determined based on the first-in, first-out inventory method ("FIFO") or average cost methods, which approximates current replacement cost. However, certain subsidiaries use the last-in, first-out inventory method ("LIFO"). Inventories, net consisted of the following: (In millions) September 30, December 31, Raw materials $ 782 $ 884 Work-in-process 260 230 Finished goods 1,520 1,526 Inventories, net $ 2,562 $ 2,640 The Company performs periodic assessments utilizing customer demand, production requirements and historical usage rates to determine the existence of excess and obsolete inventory and records necessary provisions to reduce such inventories to the lower of cost or estimated net realizable value. Raw materials, work-in-process and finished goods are net of valuation reserves of $230 million and $190 million as of September 30, 2023 and December 31, 2022, respectively.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETSThe Company records goodwill as the excess of the purchase price over the fair value of the net assets acquired in a business combination. Goodwill is tested and reviewed annually for impairment on July 1 or whenever there is a material change in events or circumstances that indicates that the fair value of the reporting unit may be less than its carrying value. The changes in the carrying amount of goodwill were as follows: (In millions) HVAC Refrigeration Fire & Security Total Balance as of December 31, 2022 $ 6,392 $ 1,197 $ 2,388 $ 9,977 Acquisitions / divestitures — (4) — (4) Foreign currency translation (91) (16) (41) (148) Balance as of September 30, 2023 $ 6,301 $ 1,177 $ 2,347 $ 9,825 Indefinite-lived intangible assets are tested and reviewed annually for impairment on July 1 or whenever there is a material change in events or circumstances that indicates that the fair value of the asset may be less than the carrying amount of the asset. All other intangible assets with finite useful lives are amortized over their estimated useful lives. Identifiable intangible assets consisted of the following: September 30, 2023 December 31, 2022 (In millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Amortized: Customer relationships $ 1,387 $ (766) $ 621 $ 1,431 $ (720) $ 711 Patents and trademarks 375 (201) 174 401 (191) 210 Service portfolios and other 915 (674) 241 953 (595) 358 2,677 (1,641) 1,036 2,785 (1,506) 1,279 Unamortized: Trademarks and other 64 — 64 63 — 63 Intangible assets, net $ 2,741 $ (1,641) $ 1,100 $ 2,848 $ (1,506) $ 1,342 Amortization of intangible assets was as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Amortization expense of Intangible assets $ 60 $ 38 $ 185 $ 79 Annual Impairment Test The Company tested its goodwill and indefinite-lived intangible assets for impairment on July 1 as part of its annual assessment. For each test, the Company qualitatively assessed all relevant events or circumstances that could impact the estimate of fair value and determined it was more likely than not that the fair value of each reporting unit and indefinite-lived intangible assets exceeded their carrying amount.

BORROWINGS AND LINES OF CREDIT

BORROWINGS AND LINES OF CREDIT	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
BORROWINGS AND LINES OF CREDIT	BORROWINGS AND LINES OF CREDIT Long-term debt consisted of the following: (In millions) September 30, December 31, 2.242% Notes due February 15, 2025 $ 1,200 $ 1,200 2.493% Notes due February 15, 2027 900 900 2.722% Notes due February 15, 2030 2,000 2,000 2.700% Notes due February 15, 2031 750 750 3.377% Notes due April 5, 2040 1,500 1,500 3.577% Notes due April 5, 2050 2,000 2,000 Total long-term notes 8,350 8,350 Japanese Term Loan Facility 362 404 Other debt (including project financing obligations and finance leases) 154 149 Discounts and debt issuance costs (81) (61) Total debt 8,785 8,842 Less: current portion of long-term debt 134 140 Long-term debt, net of current portion $ 8,651 $ 8,702 Japanese Term Loan Facility On July 15, 2022, the Company entered into a five-year, JPY 54 billion (approximately $400 million) senior unsecured term loan facility with MUFG Bank Ltd., as administrative agent and lender, and certain other lenders (the "Japanese Term Loan Facility"). Borrowings under the Japanese Term Loan Facility bear interest at a rate equal to the Tokyo Term Risk Free Rate plus 0.75%. In addition, the Japanese Term Loan Facility is subject to customary covenants including a covenant to maintain a maximum consolidated leverage ratio. The Company capitalized $2 million of deferred financing costs which are being amortized over its term. On July 25, 2022, the Company borrowed JPY 54 billion under the Japanese Term Loan Facility and used the proceeds to fund a portion of the TCC acquisition and to pay related fees and expenses. Revolving Credit Facility On May 19, 2023, the Company entered into a revolving credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders, permitting aggregate borrowings of up to $2.0 billion pursuant to an unsecured, unsubordinated revolving credit facility that matures in May 2028 (the "Revolving Credit Facility"). The Revolving Credit Facility supports the Company's commercial paper program and can be used for other general corporate purposes. Borrowings are available in U.S. Dollars and Euros. U.S. Dollar borrowings can bear interest at either a Term SOFR Rate plus 0.10% and a ratings-based margin or, alternatively, at an alternate base rate plus a ratings-based margin. Euro borrowings bear interest at an adjusted EURIBOR rate plus a ratings-based margin. A ratings-based commitment fee is charged on unused commitments. Upon entering into the agreement, the Company terminated its existing revolving credit facility that was set to mature in April 2025. In addition, the Company capitalized $2 million of deferred financing costs which are being amortized over its term. As of September 30, 2023, there were no borrowings outstanding under the Revolving Credit Facility. Commercial Paper Program The Company has a $2.0 billion unsecured, unsubordinated commercial paper program, which can be used for general corporate purposes, including the funding of working capital and potential acquisitions. As of September 30, 2023, there were no borrowings outstanding under the commercial paper program. Project Financing Arrangements The Company is involved in long-term construction contracts in which it arranges project financing with certain customers. As a result, the Company issued $14 million and $27 million of debt during the nine months ended September 30, 2023 and 2022, respectively. Long-term debt repayments associated with these financing arrangements during the nine months ended September 30, 2023 and 2022 were $15 million and $70 million, respectively. Debt Covenants The Revolving Credit Facility, the indenture for the long-term notes and the Japanese Term Loan Facility contain affirmative and negative covenants customary for financings of these types, which, among other things, limit the Company's ability to incur additional liens, to make certain fundamental changes and to enter into sale and leaseback transactions. As of September 30, 2023, the Company was in compliance with the covenants under the agreements governing its outstanding indebtedness. Tender Offers On March 15, 2022, the Company commenced tender offers to purchase up to $1.15 billion ("Aggregate Tender Cap") aggregate principal of the Company's 2.242% Notes due 2025 and 2.493% Notes due 2027 (together, the "Senior Notes"). The tender offers included payment of applicable accrued and unpaid interest up to the settlement date, along with a fixed spread for early repayment. Based on participation, the Company elected to settle the tender offers on March 30, 2022. The aggregate principal amount of Senior Notes validly tendered and accepted was approximately $1.15 billion, which included $800 million of Notes due 2025 and $350 million of Notes due 2027. As a result, the Company recognized a net gain of $33 million and wrote off $5 million of unamortized deferred financing costs within Interest (expense) income, net on the accompanying Unaudited Condensed Consolidated Statement of Operations during the three months ended March 31, 2022.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurement ("ASC 820"), defines fair value as the price that would be received if an asset is sold or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-level fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability as follows: • Level 1: Observable inputs such as quoted prices in active markets; • Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3: Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions. ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors, including foreign currency and commodity price risk. These exposures are managed through operational strategies and the use of undesignated hedging contracts. The Company's derivative assets and liabilities are measured at fair value on a recurring basis using internal models based on observable market inputs, such as forward, interest, contract and discount rates with changes in fair value reported in Other income (expense), net in the accompanying Unaudited Condensed Consolidated Statement of Operations. In connection with the TCC acquisition, the Company funded a portion of the Yen-denominated purchase price with cash on hand by entering into cross currency swaps with SMBC Capital Markets, Inc., as syndication swap arranger, and certain other financial institutions. The cross currency swaps are measured at fair value on a recurring basis using observable market inputs, such as forward, discount and interest rates as well as credit default swap spreads. The Company designated the cross currency swaps as a partial hedge of its investment in certain subsidiaries whose functional currency is the Japanese Yen in order to manage foreign currency translation risk. As a result, changes in the fair value of the swaps are recorded in Equity in the accompanying Unaudited Condensed Consolidated Balance Sheet. The remaining portion of the Yen-denominated purchase price was funded by the Japanese Term Loan Facility. The carrying value of the facility is translated on a recurring basis using the exchange rate at the end of the applicable period and approximates its fair value. The Company designated the Japanese Term Loan Facility as a partial hedge of its investment in certain subsidiaries whose functional currency is the Japanese Yen in order to manage foreign currency translation risk. As a result, changes in the carrying value of the Japanese Term Loan Facility associated with foreign exchange rate movements are recorded in Equity in the Unaudited Condensed Consolidated Balance Sheet. In connection with the proposed acquisition of the VCS Business, the Company entered into window forward contracts with Bank of America N.A. and JPMorgan Chase Bank N.A. to mitigate the foreign currency risk of the expected cash outflows associated with the Euro-denominated purchase price. The instruments have an aggregate notional amount of €7 billion and a settlement window between November 28, 2023 and February 27, 2024. The window forward contracts are measured at fair value on a recurring basis using observable market inputs, such as forward, discount and interest rates with changes in fair value reported in Other income (expense), net in the accompanying Unaudited Condensed Consolidated Statement of Operations. During the three and nine months ended September 30, 2023, the Company recognized a $257 million and $368 million loss on the mark-to-market valuation of its window forward contracts, respectively. During the three months ended September 30, 2023, the Company entered into several floating-to-fixed interest rate swap contracts to mitigate interest rate exposure on the forecasted issuance of long-term debt. The contracts have an aggregate notional amount of $1.275 billion and were designated as cash flow hedges. The interest rate swap contracts are measured at fair value on a recurring basis using observable market inputs, such as forward, discount and interest rates with changes in fair value reported in Equity in the accompanying Unaudited Condensed Consolidated Balance Sheet. During the three months ended September 30, 2023 , the Company recorded an $80 million unrealized gain on the mark-to-market valuation of its interest rate swap contracts. The following tables provide the valuation hierarchy classification of assets and liabilities that are recorded at fair value and measured on a recurring basis in the accompanying Unaudited Condensed Consolidated Balance Sheet: (In millions) Total Level 1 Level 2 Level 3 September 30, 2023 Derivative assets (1)(3) $ 116 $ — $ 116 $ — Derivative liabilities (2)(3) $ (408) $ — $ (408) $ — December 31, 2022 Derivative assets (1) (3) $ 28 $ — $ 28 $ — Derivative liabilities (2) (3) $ (48) $ — $ (48) $ — (1) Included in Other assets, current and Other assets on the accompanying Unaudited Condensed Consolidated Balance Sheet. (2) Included in Accrued liabilities and Other long-term liabilities on the accompanying Unaudited Condensed Consolidated Balance Sheet. (3) Includes cross currency swaps, window forward contracts and interest rate swap contracts. The following table provides the carrying amounts and fair values of the Company's long-term notes that are not recorded at fair value in the accompanying Unaudited Condensed Consolidated Balance Sheet: September 30, 2023 December 31, 2022 (In millions) Carrying Fair Carrying Fair Total long-term Notes (1) $ 8,350 $ 6,653 $ 8,350 $ 6,832 (1) Excludes debt discount and issuance costs. The fair value of the Company's long-term debt is measured based on observable market inputs which are considered Level 1 within the fair value hierarchy. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings approximate fair value due to the short-term nature of these accounts and would be classified as Level 1 in the fair value hierarchy. The Company's financing leases and project financing obligations, included in Long-term debt and Current portion of long-term debt on the accompanying Unaudited Condensed Consolidated Balance Sheet , approximate fair value and are classified as Level 3 in the fair value hierarchy.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	9 Months Ended
	Sep. 30, 2023
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANSThe Company sponsors both funded and unfunded domestic and international defined benefit pension and defined contribution plans. In addition, the Company contributes to various domestic and international multi-employer pension plans. Contributions to the plans were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Defined benefit plans $ 6 $ 4 $ 17 $ 10 Defined contribution plans $ 30 $ 29 $ 96 $ 95 Multi-employer pension plans $ 3 $ 5 $ 11 $ 11 The components of net periodic pension expense (benefit) for the defined benefit pension plans are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Service cost $ 4 $ 5 $ 12 $ 14 Interest cost 8 5 24 13 Expected return on plan assets (8) (7) (24) (20) Amortization of prior service credit 1 1 2 2 Recognized actuarial net (gain) loss (1) 2 (2) 7 Net periodic pension expense (benefit) $ 4 $ 6 $ 12 $ 16

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION The Company accounts for stock-based compensation plans in accordance with ASC 718, Compensation - Stock Compensation , which requires a fair-value based method for measuring the value of stock-based compensation. Fair value is measured at the date of grant and is generally not adjusted for subsequent changes. The Company's stock-based compensation plans include programs for stock appreciation rights, restricted stock units and performance share units. Stock-based compensation expense, net of estimated forfeitures, is included in Cost of products sold , Selling, general and administrative and Research and development in the accompanying Unaudited Condensed Consolidated Statements of Operations. Stock-based compensation cost by award type was as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Equity compensation costs - equity settled $ 23 $ 17 $ 63 $ 58 Equity compensation costs - cash settled (1) 1 1 3 (16) Total stock-based compensation expense $ 24 $ 18 $ 66 $ 42 (1) The cash settled awards are classified as liability awards and are measured at fair value at each balance sheet date.

PRODUCT WARRANTIES

PRODUCT WARRANTIES	9 Months Ended
	Sep. 30, 2023
Guarantees [Abstract]
PRODUCT WARRANTIES	PRODUCT WARRANTIES In the ordinary course of business, the Company provides standard warranty coverage on its products. Provisions for these amounts are established at the time of sale and estimated primarily based on product warranty terms and historical claims experience. In addition, the Company incurs discretionary costs to service its products in connection with specific product performance issues. Provisions for these amounts are established when they are known and estimable. The Company assesses the adequacy of its initial provisions and will make adjustments as necessary based on known or anticipated claims or as new information becomes available that suggests it is probable that future costs will be different than estimated amounts. Amounts associated with these provisions are classified on the accompanying Unaudited Condensed Consolidated Balance Sheet as Accrued liabilities or Other long-term liabilities based on their anticipated settlement date. The changes in the carrying amount of warranty related provisions are as follows: Nine Months Ended September 30, (In millions) 2023 2022 Balance as of January 1, $ 552 $ 524 Warranties, performance guarantees issued and changes in estimated liability 186 120 Settlements made (146) (116) Other (15) 9 Balance as of September 30, $ 577 $ 537

EQUITY

EQUITY	9 Months Ended
	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
EQUITY	EQUITY The authorized number of shares of common stock of Carrier is 4,000,000,000 shares of $0.01 par value. As of September 30, 2023 and December 31, 2022, 882,497,944 and 876,487,480 shares of common stock were issued, respectively, which includes 43,490,981 and 42,103,995 shares of treasury stock, respectively. Share Repurchase Program The Company may repurchase its outstanding common stock from time to time subject to market conditions and at the Company's discretion. Repurchases occur in the open market or through one or more other public or private transactions pursuant to plans complying with Rules 10b5-1 and 10b-18 under the Exchange Act. Shares acquired are recognized at cost and presented separately on the balance sheet as a reduction to Equity . Since the initial authorization in February 2021, the Company's Board of Directors authorized the repurchase of up to $4.1 billion of the Company's outstanding common stock. As of December 31, 2022, the Company repurchased 42.1 million shares of common stock for an aggregate purchase price of $1.9 billion, including shares repurchased under an accelerated share repurchase agreement. As a result, the Company had approximately $2.2 billion remaining under the current authorization at December 31, 2022. During the nine months ended September 30, 2023, the Company repurchased 1.4 million shares of common stock for an aggregate purchase price of $62 million. As a result, the Company has approximately $2.1 billion remaining under the current authorization at September 30, 2023. Accumulated Other Comprehensive Income (Loss) A summary of changes in the components of Accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2023 is as follows: (In millions) Foreign Currency Translation Defined Benefit Pension and Post-retirement Plans Unrealized Hedging Gains (Losses) Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2022 $ (1,604) $ (84) $ — $ (1,688) Other comprehensive income (loss) before reclassifications, net 52 — — 52 Amounts reclassified, pre-tax — — — — Tax expense (benefit) reclassified — — — — Balance as of March 31, 2023 $ (1,552) $ (84) $ — $ (1,636) Other comprehensive income (loss) before reclassifications, net (55) — — (55) Amounts reclassified, pre-tax — — — — Tax expense (benefit) reclassified — — — — Balance as of June 30, 2023 $ (1,607) $ (84) $ — $ (1,691) Other comprehensive income (loss) before reclassifications, net (245) — 80 (165) Amounts reclassified, pre-tax — — — — Tax expense (benefit) reclassified — — — — Balance as of September 30, 2023 $ (1,852) $ (84) $ 80 $ (1,856) A summary of changes in the components of Accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2022 is as follows: (In millions) Foreign Currency Translation Defined Benefit Pension and Post-retirement Plans Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2021 $ (505) $ (484) $ (989) Other comprehensive income (loss) before reclassifications, net (61) (4) (65) Amounts reclassified, pre-tax — 3 3 Tax expense (benefit) reclassified — (1) (1) Chubb divestiture (574) 329 (245) Balance as of March 31, 2022 $ (1,140) $ (157) $ (1,297) Other comprehensive income (loss) before reclassifications, net (480) — (480) Amounts reclassified, pre-tax — 3 3 Tax expense (benefit) reclassified — (1) (1) Balance as of June 30, 2022 $ (1,620) $ (155) $ (1,775) Other comprehensive income (loss) before reclassifications, net (632) — (632) Amounts reclassified, pre-tax — 3 3 Tax expense (benefit) reclassified — (1) (1) Balance as of September 30, 2022 $ (2,252) $ (153) $ (2,405)

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	REVENUE RECOGNITION The Company accounts for revenue in accordance with ASC 606: Revenue from Contracts with Customers . Revenue is recognized when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. A significant portion of the Company's performance obligations are recognized at a point-in-time when control of the product transfers to the customer, which is generally at the time of shipment. The remaining portion of the Company’s performance obligations are recognized over time as the customer simultaneously obtains control as the Company performs work under a contract, or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment. Sales disaggregated by product and service are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Sales Type Product $ 3,533 $ 3,330 $ 10,488 $ 8,974 Service 475 404 1,358 1,118 HVAC sales 4,008 3,734 11,846 10,092 Product 808 811 2,453 2,603 Service 116 112 341 337 Refrigeration sales 924 923 2,794 2,940 Product 864 859 2,546 2,468 Service 59 46 178 142 Fire & Security sales 923 905 2,724 2,610 Total segment sales 5,855 5,562 17,364 15,642 Eliminations and other (124) (111) (368) (326) Net sales $ 5,731 $ 5,451 $ 16,996 $ 15,316 Contract Balances Total contract assets and contract liabilities consisted of the following: (In millions) September 30, December 31, Contract assets, current $ 605 $ 537 Contract assets, non-current (included within Other assets ) 18 6 Total contract assets 623 543 Contract liabilities, current (496) (449) Contract liabilities, non-current (included within Other long-term liabilities ) (166) (174) Total contract liabilities (662) (623) Net contract assets (liabilities) $ (39) $ (80) The timing of revenue recognition, billings and cash collections results in contract assets and contract liabilities. Contract assets relate to the conditional right to consideration for any completed performance under a contract when costs are incurred in excess of billings under the percentage-of-completion methodology. Contract liabilities relate to payments received in advance of performance under a contract or when the Company has a right to consideration that is conditioned upon transfer of a good or service to a customer. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract. The Company recognized revenue of $325 million during the nine months ended September 30, 2023 that related to contract liabilities as of January 1, 2023. The Company expects a majority of its current contract liabilities at the end of the period to be recognized as revenue in the next 12 months.

RESTRUCTURING COSTS

RESTRUCTURING COSTS	9 Months Ended
	Sep. 30, 2023
Restructuring and Related Activities [Abstract]
RESTRUCTURING COSTS	RESTRUCTURING COSTSThe Company incurs costs associated with restructuring initiatives intended to improve operating performance, profitability and working capital levels. Actions associated with these initiatives may include improving productivity, workforce reductions and the consolidation of facilities. Due to the size, nature and frequency of these discrete plans, they are fundamentally different from the Company's ongoing productivity actions. The Company recorded net pre-tax restructuring costs for new and ongoing restructuring initiatives as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 HVAC $ 25 $ 2 $ 27 $ 8 Refrigeration 4 3 14 9 Fire & Security (1) 1 11 10 Total Segment 28 6 52 27 General corporate expenses — — 2 2 Total restructuring costs $ 28 $ 6 $ 54 $ 29 Cost of sales $ 3 $ 1 $ 12 $ 8 Selling, general and administrative 25 5 42 21 Total restructuring costs $ 28 $ 6 $ 54 $ 29 The following table summarizes changes in the restructuring reserve, included in Accrued liabilities on the accompanying Unaudited Condensed Consolidated Balance Sheet: Nine Months Ended September 30, (In millions) 2023 2022 Balance as of January 1, $ 24 $ 54 Net pre-tax restructuring costs 54 29 Utilization, foreign exchange and other (34) (50) Balance as of September 30, $ 44 $ 33 During the nine months ended September 30, 2023 and 2022, charges associated with restructuring initiatives related to cost reduction efforts. Amounts recognized primarily related to severance due to workforce reductions and exit costs due to the consolidation of field operations. As of September 30, 2023, the Company had $44 million accrued for costs associated with its announced restructuring initiatives, all of which is expected to be paid within one year.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company accounts for income tax expense in accordance with ASC 740, Income Taxes ("ASC 740"), which requires an estimate of the annual effective income tax rate for the full year to be applied to the respective interim period, taking into account year-to-date amounts and projected results for the full year. The effective tax rate was 35.9% for the three months ended September 30, 2023 compared with 9.4% for the three months ended September 30, 2022. The year-over-year increase was primarily driven by the non-deductible loss of $257 million on the mark-to-market valuation of the Company's window forward contracts associated with the expected cash outflows of the Euro-denominated purchase price of the VCS Business and a tax charge of $33 million related to the Company's intention to no longer permanently reinvest historical earnings from certain jurisdictions. In addition, the three months ended September 30, 2022 included a lower effective tax rate on a $732 million non-cash gain resulting from the recognition of the Company's previously held TCC equity investments at fair value upon acquisition of TCC compared to the Company's U.S. statutory tax rate. The effective tax rate was 34.4% for the nine months ended September 30, 2023 compared with 15.6% for the nine months ended September 30, 2022. The year-over-year increase was primarily driven by the non-deductible loss of $297 million on the deconsolidation of KFI due to its Chapter 11 filing and the $368 million loss on the mark-to-market valuation of the Company's window forward contracts associated with the expected cash outflows of the Euro-denominated purchase price of the VCS Business. In addition, the nine months ended September 30, 2022 included a lower effective tax rate on a $732 million non-cash gain resulting from the recognition of the Company's previously held TCC equity investments at fair value upon acquisition of TCC and the $1.1 billion Chubb gain compared with the Company's U.S. statutory rate and a favorable tax adjustment of $32 million associated with foreign tax credits generated and utilized in the prior year. The Company assesses the realizability of its deferred tax assets on a quarterly basis through an analysis of potential sources of future taxable income, including prior year taxable income that may be available to absorb a carryback of tax losses, reversals of existing taxable temporary differences, tax planning strategies and forecasts of taxable income. The Company considers all negative and positive evidence, including the weight of the evidence, to determine whether valuation allowances against deferred tax assets are required. The Company maintains valuation allowances against certain deferred tax assets. The Company conducts business globally and files income tax returns in U.S. federal, state and foreign jurisdictions. In certain jurisdictions, the Company's operations were included in UTC's combined tax returns for the periods through the Distribution. The U.S. Internal Revenue Service ("IRS") is currently auditing UTC's 2017 and 2018 tax years and this audit could conclude within the next twelve months. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including Australia, Belgium, Canada, China, Czech Republic, France, Germany, Hong Kong, India, Italy, Mexico, the Netherlands, Singapore, the United Kingdom and the United States. The Company is no longer subject to U.S. federal income tax examination for years prior to 2017 and, with few exceptions, is no longer subject to state, local and foreign income tax examinations for tax years prior to 2013. In the ordinary course of business, there is inherent uncertainty in quantifying the Company's income tax positions. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. The Company believes that it is reasonably possible that a net decrease in unrecognized tax benefits of $70 million to $85 million may occur within 12 months as a result of additional uncertain tax positions, the Separation, the revaluation of uncertain tax positions arising from examinations, appeals, court decisions and/or the expiration of tax statutes.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Earnings per share is computed by dividing Net income attributable to common shareowners by the weighted-average number of shares of common stock outstanding during the period (excluding treasury stock). Diluted earnings per share is computed by giving effect to all potentially dilutive stock awards that are outstanding. The computation of diluted earnings per share excludes the effect of the potential exercise of stock-based awards, including stock appreciation rights and stock options, when the effect of the potential exercise would be anti-dilutive. The following table summarizes the weighted-average number of shares of common stock outstanding for basic and diluted earnings per share calculations: Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share amounts) 2023 2022 2023 2022 Net income attributable to common shareowners $ 357 $ 1,312 $ 929 $ 3,264 Basic weighted-average number of shares outstanding 838.7 839.6 836.6 846.1 Stock awards and equity units (share equivalent) 16.0 16.9 16.1 18.2 Diluted weighted-average number of shares outstanding 854.7 856.5 852.7 864.3 Antidilutive shares excluded from computation of diluted earnings per share 2.0 4.5 1.9 3.1 Earnings Per Share Basic $ 0.43 $ 1.56 $ 1.11 $ 3.86 Diluted $ 0.42 $ 1.53 $ 1.09 $ 3.78

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	ACQUISITIONS Acquisitions are recorded using the acquisition method of accounting in accordance with ASC 805, Business Combinations . As a result, the aggregate purchase price has been allocated to assets acquired and liabilities assumed based on the estimate of fair market value of such assets and liabilities at the date of acquisition. Toshiba Carrier Corporation On February 6, 2022, the Company entered into a binding agreement to acquire a majority ownership interest in TCC for $920 million. TCC, a VRF and light commercial HVAC joint venture between Carrier and Toshiba Corporation, designs and manufactures flexible, energy-efficient and high-performance VRF and light commercial HVAC systems as well as commercial products, compressors and heat pumps. The acquisition included all of TCC’s advanced research and development centers and global manufacturing operations, product pipeline and the long-term use of Toshiba’s iconic brand. The acquisition was completed on August 1, 2022 and funded through the Japanese Term Loan Facility and cash on hand. Upon closing, Toshiba Corporation retained a 5% ownership interest in TCC. The allocation of the purchase price is as follows: (In millions) August 1, 2022 Cash and cash equivalents $ 462 Accounts receivable 428 Inventories 373 Other assets, current 54 Fixed assets 330 Intangible assets 965 Goodwill 876 Other assets 299 Accounts payable (412) Accrued liabilities (445) Contract liabilities, current (21) Other long-term liabilities (569) Net assets acquired $ 2,340 Less: Fair value of non-controlling interests (22) Less: Fair value of previously held TCC equity investments (1,398) Total cash consideration $ 920 The excess purchase price over the estimated fair value of the net assets acquired was recognized as goodwill and totaled $876 million, which is not deductible for tax purposes. Accounts receivable and current liabilities were stated at their historical carrying value, which approximates fair value given the short-term nature of these assets and liabilities. The estimate of fair value for inventory and fixed assets was based on an assessment of the acquired assets' condition as well as an evaluation of the current market value of such assets. The sale agreement included several customary provisions to settle working capital and other transaction-related items as of the date of sale. During 2022, the parties finalized these amounts in accordance with the terms of the sale agreement and the Company paid an additional $41 million to Toshiba Corporation in 2023. In addition, the parties finalized amounts related to pension funding levels during 2023 which resulted in the Company receiving $12 million from Toshiba Corporation. The Company recorded intangible assets based on its estimate of fair value which consisted of the following: (In millions) Estimated Useful Life (in years) Intangible Assets Acquired Customer relationships 23 $ 497 Technology 7 220 Trademark 26 180 Backlog 1 60 Land use rights 45 8 Total intangible assets acquired $ 965 The valuation of intangible assets was determined using an income approach methodology including the multi-period excess earnings method and the relief from royalty method. Key assumptions used in estimating future cash flows included projected revenue growth rates, EBIT margins, discount rates, customer attrition rates and royalty rates among others. The projected future cash flows are discounted to present value using an appropriate discount rate. As of September 30, 2023, the Company has finalized the process of allocating the purchase price and valuing the acquired assets and liabilities. The Company previously accounted for its minority ownership in TCC under the equity method of accounting. In connection with the transaction, the carrying value of the Company's previously held TCC equity investments were recognized at fair value at the date of acquisition using an income approach methodology. As a result, the Company recognized a $696 million non-cash gain within Other income (expense), net on the accompanying Unaudited Condensed Consolidated Statement of Operations. In addition, the assets, liabilities and results of operations of TCC are consolidated in the accompanying Unaudited Condensed C onsolidated Financial Statements as of the date of acquisition and reported within the Company's HVAC segment. The Company incurred $29 million of acquisition-related costs during 2022, of which $26 million was recognized during the nine months ended September 30, 2022 and included within Selling, general and administrative on the accompanying Unaudited Condensed Consolidated Statement of Operations. The Company has not included pro forma financial information required under ASC 805 as the pro forma impact was not significant. Announced Acquisition On April 25, 2023, the Company announced that it entered into an Agreement to acquire the VCS Business, a privately-held company, for approximately €12 billion. The VCS Business develops intelligent, integrated and sustainable technologies, including heat pumps, boilers, photovoltaic systems, home battery storage and digital solutions, primarily for residential customers in Europe. Under the terms of the Agreement, 20% of the purchase price will be paid in Carrier common stock, issued directly to Viessmann and subject to long-term lock-up provisions, and 80% will be paid in cash, subject to working capital and other adjustments. The Company intends to finance the acquisition with a combination of cash on hand and new debt financing and expects the transaction to close around the end of 2023, subject to customary closing conditions and regulatory approvals. On April 25, 2023, the Company entered into commitment letters with JPMorgan Chase Bank, N.A., BofA Securities, Inc. and Bank of America, N.A. to provide a €8.2 billion aggregate principal, senior unsecured bridge term loan facility (the "Bridge Loan"). Proceeds from the Bridge Loan are expected to be used to fund a portion of the Euro-denominated purchase price of the VCS Business if other debt financing is not secured by the acquisition date. The Company capitalized $48 million of deferred financing costs associated with the Bridge Loan which are being amortized over the commitment period. On May 19, 2023, the aggregate principal amount of the Bridge Loan was reduced by €2.3 billion upon entering into a senior unsecured delayed draw term loan credit agreement. As a result, the Company accelerated the amortization on $10 million of deferred financing costs in Interest expense . On May 19, 2023, the Company entered into a senior unsecured delayed draw term loan credit agreement with JPMorgan Chase Bank, N.A., as administrative agent and certain other lenders that permits aggregate borrowings of up to €2.3 billion (the "Delayed Draw Facility"). Proceeds from the Delayed Draw Facility are expected to be used to fund a portion of the Euro-denominated purchase price of the VCS Business. The Company capitalized $4 million of deferred financing costs associated with the Delayed Draw Facility which will be amortized over the term once the facility is drawn upon. In addition, the Company entered into a 364-day, $500 million, senior unsecured revolving credit agreement with JPMorgan Chase Bank, N.A., as administrative agent and certain other lenders (the "Revolver") on May 19, 2023. Proceeds from the Revolver become available upon closing the purchase of the VCS Business.

DIVESTITURES

DIVESTITURES	9 Months Ended
	Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]
DIVESTITURES	DIVESTITURES Sale of Chubb Fire & Security Business On January 3, 2022, the Company completed the Chubb Sale for net proceeds of $2.9 billion. Chubb, which was reported within the Company’s Fire & Security segment, delivered essential fire safety and security solutions from design and installation to monitoring, service and maintenance across more than 17 countries around the globe. The sale agreement included several customary provisions to settle working capital and other transaction-related items as of the date of sale. The parties finalized these amounts in accordance with the terms of the sale agreement during 2022. During the nine months ended September 30, 2022, the Company recognized a net gain on the sale of $1.1 billion, which is included in Other income (expense), net on the accompanying Unaudited Condensed Consolidated Statement of Operations. Planned Portfolio Transformation On April 25, 2023, the Company announced plans to exit its Fire & Security and Commercial Refrigeration businesses over the course of 2024. Carrier expects to use the proceeds from these transactions to reduce leverage, advance the Company’s capital allocation priorities and for general corporate purposes. The planned exit is not expected to impact UTEC, Fire & Security’s controls business for residential HVAC customers or the Sensitech monitoring businesses.

SEGMENT FINANCIAL DATA

SEGMENT FINANCIAL DATA	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
SEGMENT FINANCIAL DATA	SEGMENT FINANCIAL DATA The Company conducts its operations through three reportable operating segments: HVAC, Refrigeration and Fire & Security. In accordance with ASC 280 - Segment Reporting , the Company's segments maintain separate financial information for which results of operations are evaluated on a regular basis by the Company's Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance. • The HVAC segment provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers while enhancing building performance, health, energy efficiency and sustainability. • The Refrigeration segment includes transport refrigeration and monitoring products, services and digital solutions for trucks, trailers, shipping containers, intermodal and rail, as well as commercial refrigeration products. • The Fire & Security segment provides a wide range of residential, commercial and industrial technologies designed to help protect people and property. The Company's customers are in both the public and private sectors and its businesses reflect extensive geographic diversification. Inter-company sales between segments are immaterial. Net sales and Operating profit by segment are as follows: Net Sales Operating Profit Three Months Ended September 30, Three Months Ended September 30, (In millions) 2023 2022 2023 2022 HVAC $ 4,008 $ 3,734 $ 763 $ 1,314 Refrigeration 924 923 107 116 Fire & Security 923 905 164 142 Total segment 5,855 5,562 1,034 1,572 Eliminations and other (124) (111) (298) (10) General corporate expenses — — (91) (36) Total Consolidated $ 5,731 $ 5,451 $ 645 $ 1,526 Net Sales Operating Profit Nine Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 HVAC $ 11,846 $ 10,092 $ 1,940 $ 2,369 Refrigeration 2,794 2,940 327 370 Fire & Security 2,724 2,610 100 1,494 Total segment 17,364 15,642 2,367 4,233 Eliminations and other (368) (326) (482) (50) General corporate expenses — — (196) (101) Total Consolidated $ 16,996 $ 15,316 $ 1,689 $ 4,082 Geographic external sales are attributed to the geographic regions based on their location of origin. With the exception of the U.S. presented in the table below, there were no individually significant countries with sales exceeding 10% of total sales during the nine months ended September 30, 2023 and 2022. Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 United States $ 3,335 $ 3,154 $ 9,584 $ 9,109 International: Europe 1,124 1,024 3,525 3,188 Asia Pacific 1,061 1,071 3,288 2,436 Other 211 202 599 583 Net sales $ 5,731 $ 5,451 $ 16,996 $ 15,316

RELATED PARTIES

RELATED PARTIES	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTIES	RELATED PARTIES Equity Method Investments The Company sells products to and purchases products from unconsolidated entities accounted for under the equity method and, therefore, these entities are considered to be related parties. Amounts attributable to equity method investees are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Sales to equity method investees included in Product sales $ 730 $ 718 $ 2,371 $ 2,129 Purchases from equity method investees included in Cost of products sold $ 57 $ 60 $ 159 $ 261 The Company had receivables from and payables to equity method investees as follows: (In millions) September 30, December 31, Receivables from equity method investees included in Accounts receivable, net $ 289 $ 154 Payables to equity method investees included in Accounts payable $ 35 $ 44

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	COMMITMENTS AND CONTINGENT LIABILITIES The Company is involved in various litigation, claims and administrative proceedings, including those related to environmental (including asbestos) and legal matters. In accordance with ASC 450, Contingencies , the Company records accruals for loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These accruals are generally based upon a range of possible outcomes. If no amount within the range is a better estimate than any other, the Company accrues the minimum amount. In addition, these estimates are reviewed periodically and adjusted to reflect additional information when it becomes available. The Company is unable to predict the final outcome of the following matters based on the information currently available, except as otherwise noted. However, the Company does not believe that the resolution of any of these matters will have a material adverse effect upon its results of operations, cash flows or financial condition. Environmental Matters The Company’s operations are subject to environmental regulation by various authorities. The Company has accrued for the costs of environmental remediation activities, including but not limited to investigatory, remediation, operating and maintenance costs and performance guarantees. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to individual sites, including the technology required to remediate, current laws and regulations and prior remediation experience. The outstanding liabilities for environmental obligations are as follows: (In millions) September 30, December 31, Environmental reserves included in Accrued liabilities $ 12 $ 24 Environmental reserves included in Other long-term liabilities 208 211 Total Environmental reserves $ 220 $ 235 For sites with multiple responsible parties, the Company considers its likely proportionate share of the anticipated remediation costs and the ability of other parties to fulfill their obligations in establishing a provision for these costs. Accrued environmental liabilities are not reduced by potential insurance reimbursements and are undiscounted. Asbestos Matters The Company has been named as a defendant in lawsuits alleging personal injury as a result of exposure to asbestos allegedly integrated into certain Carrier products or business premises. While the Company has never manufactured asbestos and no longer incorporates it into any currently-manufactured products, certain products that the Company no longer manufactures contained components incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or have been 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 period. The Company's asbestos liabilities and related insurance recoveries are as follows: (In millions) September 30, December 31, Asbestos liabilities included in Accrued liabilities $ 16 $ 16 Asbestos liabilities included in Other long-term liabilities 207 212 Total Asbestos liabilities $ 223 $ 228 Asbestos-related recoveries included in Other assets, current $ 5 $ 5 Asbestos-related recoveries included in Other assets 89 90 Total Asbestos-related recoveries $ 94 $ 95 The amounts recorded for asbestos-related liabilities are based on currently available information and assumptions that the Company believes are reasonable and are made with input from outside actuarial experts. These amounts are undiscounted and exclude the Company’s legal fees to defend the asbestos claims, which are expensed as incurred. In addition, the Company has recorded insurance recovery receivables for probable asbestos-related recoveries. UTC Equity Awards Conversion Litigation On August 12, 2020, several former employees of UTC or its subsidiaries filed a putative class action complaint (the "Complaint") in the United States District Court for the District of Connecticut against Raytheon Technologies Corporation, Carrier, Otis Worldwide Corporation ("Otis"), the former members of the UTC Board of Directors and the members of the Carrier and Otis Boards of Directors ( Geraud Darnis, et al. v. Raytheon Technologies Corporation, et al .). The Complaint challenged the method by which UTC equity awards were converted to UTC, Carrier and Otis equity awards following the Separation and the Distribution. Defendants moved to dismiss the Complaint. Plaintiffs amended their Complaint on September 13, 2021 (the "Amended Complaint"). The Amended Complaint, with Raytheon Technologies Corporation, Carrier and Otis as the only defendants, asserted that the defendants are liable for breach of certain equity compensation plans and for breach of the implied covenant of good faith and fair dealing. The Amended Complaint also sought specific performance. The Company believes all plaintiffs' claims against it are without merit. Defendants moved to dismiss the Amended Complaint. On September 30, 2022, the court dismissed the case against all defendants, with prejudice. Plaintiffs appealed the dismissal to the United States Court of Appeals for the Second Circuit. On August 3, 2023, the Second Circuit Court of Appeals affirmed the district court’s ruling. Aqueous Film Forming Foam Litigation As of September 30, 2023, the Company, KFI and others have been named as defendants in more than 5,000 lawsuits filed by individuals in or removed to the federal courts of the United States alleging that the historic use of Aqueous Film Forming Foam ("AFFF") caused personal injuries and/or property damage. The Company, KFI and others have also been named as defendants in more than 600 lawsuits filed by several U.S. states, municipalities and water utilities in or removed to U.S. federal courts alleging that the historic use of AFFF caused contamination of property and water supplies. In December 2018, the U.S. Judicial Panel on Multidistrict Litigation transferred and consolidated all AFFF cases pending in the U.S. federal courts against the Company, KFI and others to the U.S. District Court for the District of South Carolina (the "MDL Proceedings"). The individual plaintiffs in the MDL Proceedings generally seek damages for alleged personal injuries, medical monitoring, diminution in property value and injunctive relief to remediate alleged contamination of water supplies. The U.S. state, municipal and water utility plaintiffs in the MDL Proceedings generally seek damages and costs related to the remediation of public property and water supplies. AFFF is a firefighting foam, developed beginning in the late 1960s pursuant to U.S. military specification, used to extinguish certain types of hydrocarbon-fueled fires. The lawsuits identified above relate to Kidde Fire Fighting, Inc., which owned the National Foam business. Kidde Fire Fighting, Inc. was acquired by a UTC subsidiary in 2005 and merged into KFI in 2007. The National Foam business manufactured AFFF for sale to government (including the U.S. federal government) and non-government customers in the U.S. at a single facility located in West Chester, Pennsylvania (the "Pennsylvania Site"). In 2013, KFI divested the AFFF businesses to an unrelated third party. The Company acquired KFI as part of the Separation in April 2020. The key components that contribute to AFFF's fire-extinguishing capabilities are known as fluorosurfactants. Neither the Company, nor KFI, nor any of the Company's subsidiaries involved in the AFFF litigation manufactured fluorosurfactants. Instead, the National Foam business purchased these substances from unrelated third parties for use in manufacturing AFFF. Plaintiffs in the MDL Proceedings allege that the fluorosurfactants used by various manufacturers in producing AFFF contained, or over time degraded into, compounds known as per- and polyfluoroalkyl substances (referred to collectively as "PFAS"), including perflourooctanesulfonic acid ("PFOS") and perflourooctanoic acid ("PFOA"). Plaintiffs further allege that, as a result of the use of AFFF, PFOS and PFOA were released into the environment and, in some instances, ultimately reached drinking water supplies. Plaintiffs in the MDL Proceedings allege that PFOS and PFOA contamination has resulted from the use of AFFF manufactured using a process known as ECF, and that this process was used exclusively by 3M. They also allege that PFOA contamination has resulted from the use of AFFF manufactured using a different process, known as telomerization, and that this process was used exclusively by the other AFFF manufacturers (including the National Foam business). Compounds containing PFOS and PFOA (as well as many other PFAS) have also been used for decades by many third parties in a number of different industries to manufacture firefighters’ protective outerwear, carpets, clothing, fabrics, cookware, food packaging, personal care products, cleaning products, paints, varnishes and other consumer and industrial products. Plaintiffs in the MDL Proceedings have named multiple defendants, including suppliers of chemicals and raw materials used to manufacture fluorosurfactants, fluorosurfactant manufacturers and AFFF manufacturers. The defendants in the MDL Proceedings moved for summary judgment on the government contractor defense, which potentially applies to AFFF sold to or used by the U.S. government. After full briefing and oral argument, on September 16, 2022, the MDL court declined to enter summary judgment for the defendants. The defense, however, remains available at any trial to which it applies. On September 23, 2022, after completion of discovery, the MDL court selected one water provider case, the City of Stuart, FL v. 3M, et al ., for a bellwether trial. That trial was scheduled to begin in early June 2023 but was postponed indefinitely. The MDL court ordered that the bellwether process for personal injury cases will begin in 2023. The court has not yet outlined details on that process or its timing. Outside of the MDL Proceedings, the Company and other defendants also are party to six lawsuits in U.S. state courts brought by oil refining companies alleging product liability claims related to legacy sales of AFFF and seeking damages for the costs to replace the product and for property damage. In addition, the Company and other defendants are party to two actions related to the Pennsylvania Site in which the plaintiff water utility company seeks remediation costs related to the alleged contamination of the local water supply. The Company, KFI and other defendants are also party to one action in Arizona state court brought by a firefighter claiming that occupational exposure to AFFF has caused certain personal injuries. The Company and KFI believe that they have meritorious defenses to the claims in the MDL Proceedings and the other AFFF lawsuits. Given the numerous factual, scientific and legal issues to be resolved relating to these claims, the Company is unable to assess the probability of liability or to reasonably estimate a range of possible loss at this time. There can be no assurance that any such future exposure will not be material in any period. On May 14, 2023, KFI filed a voluntary petition with the United States Bankruptcy Court for the District of Delaware seeking relief under Chapter 11 of the Bankruptcy Code after the Company determined that it would not provide financial support to KFI going forward, other than ensuring KFI has access to services necessary for the effective operation of its business. As a result, all litigation against KFI is automatically stayed. KFI filed an adversary complaint and motion in the Chapter 11 case seeking an order staying or enjoining all AFFF-related litigation against the Company, its other subsidiaries and RTX. That motion was resolved through an agreement that effectively stays the AFFF litigation against these parties. KFI has also indicated to the bankruptcy court that it intends to pursue insurance coverage for AFFF-related liabilities and contractual indemnification for AFFF-related liabilities from the third party to which KFI sold National Foam. Deconsolidation Due to Bankruptcy As of May 14, 2023, the Company no longer controlled KFI as their activities are subject to review and oversight by the bankruptcy court. Therefore, KFI was deconsolidated and their respective assets and liabilities were derecognized from the Company’s Unaudited Condensed Consolidated Financial Statements. Upon deconsolidation, the Company determined the fair value of its retained interest in KFI to be zero and will account for it prospectively using the cost method. As a result of these actions, the Company recognized a loss of $297 million in its Unaudited Condensed Consolidated Statements of Operations within Other income/(expense), net . In addition, the deconsolidation resulted in an investing cash outflow of $134 million in the Company's Unaudited Condensed Consolidated Statements of Cash Flows. In connection with the bankruptcy filing, KFI entered into several agreements with subsidiaries of the Company to ensure they have access to services necessary for the effective operation of their business. All post-deconsolidation activity between the Company and KFI are reported as third-party transactions recorded within the Company's Unaudited Condensed Consolidated Statements of Operations. Since the petition date, there were no material transactions between the Company and KFI. Income Taxes Under the Tax Matters Agreement relating to the Separation, the Company is responsible to UTC for its share of the Tax Cuts and Jobs Act transition tax associated with foreign undistributed earnings as of December 31, 2017. As a result, liabilities of $75 million and $293 million are included within the accompanying Unaudited Condensed Consolidated Balance Sheet within Accrued Liabilities and Other Long-Term Liabilities as of September 30, 2023, respectively. This obligation is expected to be settled in annual installments ending in April 2026 with the next installment of $75 million due in 2024. The Company believes that the likelihood of incurring losses materially in excess of this amount is remote. Other The Company has other commitments and contingent liabilities related to legal proceedings, self-insurance programs and matters arising in the ordinary course of business. The Company accrues for contingencies generally based upon a range of possible outcomes. If no amount within the range is a better estimate than any other, the Company accrues the minimum amount. In the ordinary course of business, the Company is also routinely a defendant in, party 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 could result in fines, penalties, compensatory or treble damages or non-monetary relief. The Company does not believe that these matters will have a material adverse effect upon its results of operations, cash flows or financial condition.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Accounting	The Unaudited Condensed Consolidated Financial Statements include all accounts of the Company and its wholly-owned and majority-owned subsidiaries in which it has control. Inter-company accounts and transactions have been eliminated. Related party transactions between the Company and its equity method investees have not been eliminated. Non-controlling interest represents a non-controlling investor's interests in the results of subsidiaries that the Company controls and consolidates.
Recently Issued and Adopted Accounting Pronouncements	The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") is the sole source of authoritative U.S. GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues Accounting Standards Updates ("ASU") to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. ASUs pending adoption were assessed and determined to be either not applicable or are not expected to have a material impact on the accompanying Unaudited Condensed Consolidated Financial Statements.
Fair Value Measurements	ASC 820, Fair Value Measurement ("ASC 820"), defines fair value as the price that would be received if an asset is sold or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-level fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability as follows: • Level 1: Observable inputs such as quoted prices in active markets; • Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3: Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions. ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors, including foreign currency and commodity price risk. These exposures are managed through operational strategies and the use of undesignated hedging contracts. The Company's derivative assets and liabilities are measured at fair value on a recurring basis using internal models based on observable market inputs, such as forward, interest, contract and discount rates with changes in fair value reported in Other income (expense), net in the accompanying Unaudited Condensed Consolidated Statement of Operations. In connection with the TCC acquisition, the Company funded a portion of the Yen-denominated purchase price with cash on hand by entering into cross currency swaps with SMBC Capital Markets, Inc., as syndication swap arranger, and certain other financial institutions. The cross currency swaps are measured at fair value on a recurring basis using observable market inputs, such as forward, discount and interest rates as well as credit default swap spreads. The Company designated the cross currency swaps as a partial hedge of its investment in certain subsidiaries whose functional currency is the Japanese Yen in order to manage foreign currency translation risk. As a result, changes in the fair value of the swaps are recorded in Equity in the accompanying Unaudited Condensed Consolidated Balance Sheet. The remaining portion of the Yen-denominated purchase price was funded by the Japanese Term Loan Facility. The carrying value of the facility is translated on a recurring basis using the exchange rate at the end of the applicable period and approximates its fair value. The Company designated the Japanese Term Loan Facility as a partial hedge of its investment in certain subsidiaries whose functional currency is the Japanese Yen in order to manage foreign currency translation risk. As a result, changes in the carrying value of the Japanese Term Loan Facility associated with foreign exchange rate movements are recorded in Equity in the Unaudited Condensed Consolidated Balance Sheet. In connection with the proposed acquisition of the VCS Business, the Company entered into window forward contracts with Bank of America N.A. and JPMorgan Chase Bank N.A. to mitigate the foreign currency risk of the expected cash outflows associated with the Euro-denominated purchase price. The instruments have an aggregate notional amount of €7 billion and a settlement window between November 28, 2023 and February 27, 2024. The window forward contracts are measured at fair value on a recurring basis using observable market inputs, such as forward, discount and interest rates with changes in fair value reported in Other income (expense), net in the accompanying Unaudited Condensed Consolidated Statement of Operations. During the three and nine months ended September 30, 2023, the Company recognized a $257 million and $368 million loss on the mark-to-market valuation of its window forward contracts, respectively. During the three months ended September 30, 2023, the Company entered into several floating-to-fixed interest rate swap contracts to mitigate interest rate exposure on the forecasted issuance of long-term debt. The contracts have an aggregate notional amount of $1.275 billion and were designated as cash flow hedges. The interest rate swap contracts are measured at fair value on a recurring basis using observable market inputs, such as forward, discount and interest rates with changes in fair value reported in Equity in the accompanying Unaudited Condensed Consolidated Balance Sheet. During the three months ended September 30, 2023 , the Company recorded an $80 million unrealized gain on the mark-to-market valuation of its interest rate swap contracts. The fair value of the Company's long-term debt is measured based on observable market inputs which are considered Level 1 within the fair value hierarchy. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings approximate fair value due to the short-term nature of these accounts and would be classified as Level 1 in the fair value hierarchy. The Company's financing leases and project financing obligations, included in Long-term debt and Current portion of long-term debt on the accompanying Unaudited Condensed Consolidated Balance Sheet , approximate fair value and are classified as Level 3 in the fair value hierarchy.
Product Warranties	In the ordinary course of business, the Company provides standard warranty coverage on its products. Provisions for these amounts are established at the time of sale and estimated primarily based on product warranty terms and historical claims experience. In addition, the Company incurs discretionary costs to service its products in connection with specific product performance issues. Provisions for these amounts are established when they are known and estimable. The Company assesses the adequacy of its initial provisions and will make adjustments as necessary based on known or anticipated claims or as new information becomes available that suggests it is probable that future costs will be different than estimated amounts. Amounts associated with these provisions are classified on the accompanying Unaudited Condensed Consolidated Balance Sheet as Accrued liabilities or Other long-term liabilities based on their anticipated settlement date.
Revenue Recognition	The Company accounts for revenue in accordance with ASC 606: Revenue from Contracts with Customers . Revenue is recognized when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. A significant portion of the Company's performance obligations are recognized at a point-in-time when control of the product transfers to the customer, which is generally at the time of shipment. The remaining portion of the Company’s performance obligations are recognized over time as the customer simultaneously obtains control as the Company performs work under a contract, or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment.
Commitments and Contingent Liabilities	The Company is involved in various litigation, claims and administrative proceedings, including those related to environmental (including asbestos) and legal matters. In accordance with ASC 450, Contingencies , the Company records accruals for loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These accruals are generally based upon a range of possible outcomes. If no amount within the range is a better estimate than any other, the Company accrues the minimum amount. In addition, these estimates are reviewed periodically and adjusted to reflect additional information when it becomes available. The Company is unable to predict the final outcome of the following matters based on the information currently available, except as otherwise noted. However, the Company does not believe that the resolution of any of these matters will have a material adverse effect upon its results of operations, cash flows or financial condition. Environmental Matters The Company’s operations are subject to environmental regulation by various authorities. The Company has accrued for the costs of environmental remediation activities, including but not limited to investigatory, remediation, operating and maintenance costs and performance guarantees. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to individual sites, including the technology required to remediate, current laws and regulations and prior remediation experience. For sites with multiple responsible parties, the Company considers its likely proportionate share of the anticipated remediation costs and the ability of other parties to fulfill their obligations in establishing a provision for these costs. Accrued environmental liabilities are not reduced by potential insurance reimbursements and are undiscounted. Asbestos Matters

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventories, Net	Inventories, net consisted of the following: (In millions) September 30, December 31, Raw materials $ 782 $ 884 Work-in-process 260 230 Finished goods 1,520 1,526 Inventories, net $ 2,562 $ 2,640

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in the carrying amount of goodwill were as follows: (In millions) HVAC Refrigeration Fire & Security Total Balance as of December 31, 2022 $ 6,392 $ 1,197 $ 2,388 $ 9,977 Acquisitions / divestitures — (4) — (4) Foreign currency translation (91) (16) (41) (148) Balance as of September 30, 2023 $ 6,301 $ 1,177 $ 2,347 $ 9,825
Schedule of Finite-Live Intangible Assets	Identifiable intangible assets consisted of the following: September 30, 2023 December 31, 2022 (In millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Amortized: Customer relationships $ 1,387 $ (766) $ 621 $ 1,431 $ (720) $ 711 Patents and trademarks 375 (201) 174 401 (191) 210 Service portfolios and other 915 (674) 241 953 (595) 358 2,677 (1,641) 1,036 2,785 (1,506) 1,279 Unamortized: Trademarks and other 64 — 64 63 — 63 Intangible assets, net $ 2,741 $ (1,641) $ 1,100 $ 2,848 $ (1,506) $ 1,342
Schedule of Indefinite-Lived Intangible Assets	Identifiable intangible assets consisted of the following: September 30, 2023 December 31, 2022 (In millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Amortized: Customer relationships $ 1,387 $ (766) $ 621 $ 1,431 $ (720) $ 711 Patents and trademarks 375 (201) 174 401 (191) 210 Service portfolios and other 915 (674) 241 953 (595) 358 2,677 (1,641) 1,036 2,785 (1,506) 1,279 Unamortized: Trademarks and other 64 — 64 63 — 63 Intangible assets, net $ 2,741 $ (1,641) $ 1,100 $ 2,848 $ (1,506) $ 1,342
Schedule of Amortization of Intangible Assets	Amortization of intangible assets was as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Amortization expense of Intangible assets $ 60 $ 38 $ 185 $ 79

BORROWINGS AND LINES OF CREDIT

BORROWINGS AND LINES OF CREDIT (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consisted of the following: (In millions) September 30, December 31, 2.242% Notes due February 15, 2025 $ 1,200 $ 1,200 2.493% Notes due February 15, 2027 900 900 2.722% Notes due February 15, 2030 2,000 2,000 2.700% Notes due February 15, 2031 750 750 3.377% Notes due April 5, 2040 1,500 1,500 3.577% Notes due April 5, 2050 2,000 2,000 Total long-term notes 8,350 8,350 Japanese Term Loan Facility 362 404 Other debt (including project financing obligations and finance leases) 154 149 Discounts and debt issuance costs (81) (61) Total debt 8,785 8,842 Less: current portion of long-term debt 134 140 Long-term debt, net of current portion $ 8,651 $ 8,702

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value Measurements, Recurring and Nonrecurring	The following tables provide the valuation hierarchy classification of assets and liabilities that are recorded at fair value and measured on a recurring basis in the accompanying Unaudited Condensed Consolidated Balance Sheet: (In millions) Total Level 1 Level 2 Level 3 September 30, 2023 Derivative assets (1)(3) $ 116 $ — $ 116 $ — Derivative liabilities (2)(3) $ (408) $ — $ (408) $ — December 31, 2022 Derivative assets (1) (3) $ 28 $ — $ 28 $ — Derivative liabilities (2) (3) $ (48) $ — $ (48) $ — (1) Included in Other assets, current and Other assets on the accompanying Unaudited Condensed Consolidated Balance Sheet. (2) Included in Accrued liabilities and Other long-term liabilities on the accompanying Unaudited Condensed Consolidated Balance Sheet. (3) Includes cross currency swaps, window forward contracts and interest rate swap contracts. The following table provides the carrying amounts and fair values of the Company's long-term notes that are not recorded at fair value in the accompanying Unaudited Condensed Consolidated Balance Sheet: September 30, 2023 December 31, 2022 (In millions) Carrying Fair Carrying Fair Total long-term Notes (1) $ 8,350 $ 6,653 $ 8,350 $ 6,832 (1) Excludes debt discount and issuance costs.

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	9 Months Ended
	Sep. 30, 2023
Retirement Benefits [Abstract]
Schedule of Employer Contributions to Plans	Contributions to the plans were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Defined benefit plans $ 6 $ 4 $ 17 $ 10 Defined contribution plans $ 30 $ 29 $ 96 $ 95 Multi-employer pension plans $ 3 $ 5 $ 11 $ 11
Schedule of Components of Net Periodic Pension Expense (Benefit) for the Defined Benefit Pension Plans	The components of net periodic pension expense (benefit) for the defined benefit pension plans are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Service cost $ 4 $ 5 $ 12 $ 14 Interest cost 8 5 24 13 Expected return on plan assets (8) (7) (24) (20) Amortization of prior service credit 1 1 2 2 Recognized actuarial net (gain) loss (1) 2 (2) 7 Net periodic pension expense (benefit) $ 4 $ 6 $ 12 $ 16

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	Stock-based compensation cost by award type was as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Equity compensation costs - equity settled $ 23 $ 17 $ 63 $ 58 Equity compensation costs - cash settled (1) 1 1 3 (16) Total stock-based compensation expense $ 24 $ 18 $ 66 $ 42 (1) The cash settled awards are classified as liability awards and are measured at fair value at each balance sheet date.

PRODUCT WARRANTIES (Tables)

PRODUCT WARRANTIES (Tables)	9 Months Ended
	Sep. 30, 2023
Guarantees [Abstract]
Schedule of Product Warranty Liability	The changes in the carrying amount of warranty related provisions are as follows: Nine Months Ended September 30, (In millions) 2023 2022 Balance as of January 1, $ 552 $ 524 Warranties, performance guarantees issued and changes in estimated liability 186 120 Settlements made (146) (116) Other (15) 9 Balance as of September 30, $ 577 $ 537

EQUITY (Tables)

EQUITY (Tables)	9 Months Ended
	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	A summary of changes in the components of Accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2023 is as follows: (In millions) Foreign Currency Translation Defined Benefit Pension and Post-retirement Plans Unrealized Hedging Gains (Losses) Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2022 $ (1,604) $ (84) $ — $ (1,688) Other comprehensive income (loss) before reclassifications, net 52 — — 52 Amounts reclassified, pre-tax — — — — Tax expense (benefit) reclassified — — — — Balance as of March 31, 2023 $ (1,552) $ (84) $ — $ (1,636) Other comprehensive income (loss) before reclassifications, net (55) — — (55) Amounts reclassified, pre-tax — — — — Tax expense (benefit) reclassified — — — — Balance as of June 30, 2023 $ (1,607) $ (84) $ — $ (1,691) Other comprehensive income (loss) before reclassifications, net (245) — 80 (165) Amounts reclassified, pre-tax — — — — Tax expense (benefit) reclassified — — — — Balance as of September 30, 2023 $ (1,852) $ (84) $ 80 $ (1,856) A summary of changes in the components of Accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2022 is as follows: (In millions) Foreign Currency Translation Defined Benefit Pension and Post-retirement Plans Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2021 $ (505) $ (484) $ (989) Other comprehensive income (loss) before reclassifications, net (61) (4) (65) Amounts reclassified, pre-tax — 3 3 Tax expense (benefit) reclassified — (1) (1) Chubb divestiture (574) 329 (245) Balance as of March 31, 2022 $ (1,140) $ (157) $ (1,297) Other comprehensive income (loss) before reclassifications, net (480) — (480) Amounts reclassified, pre-tax — 3 3 Tax expense (benefit) reclassified — (1) (1) Balance as of June 30, 2022 $ (1,620) $ (155) $ (1,775) Other comprehensive income (loss) before reclassifications, net (632) — (632) Amounts reclassified, pre-tax — 3 3 Tax expense (benefit) reclassified — (1) (1) Balance as of September 30, 2022 $ (2,252) $ (153) $ (2,405)

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Sales Disaggregated by Product and Service	Sales disaggregated by product and service are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Sales Type Product $ 3,533 $ 3,330 $ 10,488 $ 8,974 Service 475 404 1,358 1,118 HVAC sales 4,008 3,734 11,846 10,092 Product 808 811 2,453 2,603 Service 116 112 341 337 Refrigeration sales 924 923 2,794 2,940 Product 864 859 2,546 2,468 Service 59 46 178 142 Fire & Security sales 923 905 2,724 2,610 Total segment sales 5,855 5,562 17,364 15,642 Eliminations and other (124) (111) (368) (326) Net sales $ 5,731 $ 5,451 $ 16,996 $ 15,316
Schedule of Contract Assets and Liabilities	Total contract assets and contract liabilities consisted of the following: (In millions) September 30, December 31, Contract assets, current $ 605 $ 537 Contract assets, non-current (included within Other assets ) 18 6 Total contract assets 623 543 Contract liabilities, current (496) (449) Contract liabilities, non-current (included within Other long-term liabilities ) (166) (174) Total contract liabilities (662) (623) Net contract assets (liabilities) $ (39) $ (80)

RESTRUCTURING COSTS (Tables)

RESTRUCTURING COSTS (Tables)	9 Months Ended
	Sep. 30, 2023
Restructuring and Related Activities [Abstract]
Schedule of Net Pre-Tax Restructuring Costs	The Company recorded net pre-tax restructuring costs for new and ongoing restructuring initiatives as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 HVAC $ 25 $ 2 $ 27 $ 8 Refrigeration 4 3 14 9 Fire & Security (1) 1 11 10 Total Segment 28 6 52 27 General corporate expenses — — 2 2 Total restructuring costs $ 28 $ 6 $ 54 $ 29 Cost of sales $ 3 $ 1 $ 12 $ 8 Selling, general and administrative 25 5 42 21 Total restructuring costs $ 28 $ 6 $ 54 $ 29
Schedule of Reserve and Charges Relating to Restructuring Reserve	The following table summarizes changes in the restructuring reserve, included in Accrued liabilities on the accompanying Unaudited Condensed Consolidated Balance Sheet: Nine Months Ended September 30, (In millions) 2023 2022 Balance as of January 1, $ 24 $ 54 Net pre-tax restructuring costs 54 29 Utilization, foreign exchange and other (34) (50) Balance as of September 30, $ 44 $ 33

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table summarizes the weighted-average number of shares of common stock outstanding for basic and diluted earnings per share calculations: Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share amounts) 2023 2022 2023 2022 Net income attributable to common shareowners $ 357 $ 1,312 $ 929 $ 3,264 Basic weighted-average number of shares outstanding 838.7 839.6 836.6 846.1 Stock awards and equity units (share equivalent) 16.0 16.9 16.1 18.2 Diluted weighted-average number of shares outstanding 854.7 856.5 852.7 864.3 Antidilutive shares excluded from computation of diluted earnings per share 2.0 4.5 1.9 3.1 Earnings Per Share Basic $ 0.43 $ 1.56 $ 1.11 $ 3.86 Diluted $ 0.42 $ 1.53 $ 1.09 $ 3.78

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Allocation of the Purchase Price	The allocation of the purchase price is as follows: (In millions) August 1, 2022 Cash and cash equivalents $ 462 Accounts receivable 428 Inventories 373 Other assets, current 54 Fixed assets 330 Intangible assets 965 Goodwill 876 Other assets 299 Accounts payable (412) Accrued liabilities (445) Contract liabilities, current (21) Other long-term liabilities (569) Net assets acquired $ 2,340 Less: Fair value of non-controlling interests (22) Less: Fair value of previously held TCC equity investments (1,398) Total cash consideration $ 920
Schedule of Intangible Assets Based on Estimate of Fair Value	The Company recorded intangible assets based on its estimate of fair value which consisted of the following: (In millions) Estimated Useful Life (in years) Intangible Assets Acquired Customer relationships 23 $ 497 Technology 7 220 Trademark 26 180 Backlog 1 60 Land use rights 45 8 Total intangible assets acquired $ 965

SEGMENT FINANCIAL DATA (Tables)

SEGMENT FINANCIAL DATA (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Schedule of Net Sales and Operating Profit by Segment	Net sales and Operating profit by segment are as follows: Net Sales Operating Profit Three Months Ended September 30, Three Months Ended September 30, (In millions) 2023 2022 2023 2022 HVAC $ 4,008 $ 3,734 $ 763 $ 1,314 Refrigeration 924 923 107 116 Fire & Security 923 905 164 142 Total segment 5,855 5,562 1,034 1,572 Eliminations and other (124) (111) (298) (10) General corporate expenses — — (91) (36) Total Consolidated $ 5,731 $ 5,451 $ 645 $ 1,526 Net Sales Operating Profit Nine Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 HVAC $ 11,846 $ 10,092 $ 1,940 $ 2,369 Refrigeration 2,794 2,940 327 370 Fire & Security 2,724 2,610 100 1,494 Total segment 17,364 15,642 2,367 4,233 Eliminations and other (368) (326) (482) (50) General corporate expenses — — (196) (101) Total Consolidated $ 16,996 $ 15,316 $ 1,689 $ 4,082
Schedule of Sale by Geographic Areas	Geographic external sales are attributed to the geographic regions based on their location of origin. With the exception of the U.S. presented in the table below, there were no individually significant countries with sales exceeding 10% of total sales during the nine months ended September 30, 2023 and 2022. Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 United States $ 3,335 $ 3,154 $ 9,584 $ 9,109 International: Europe 1,124 1,024 3,525 3,188 Asia Pacific 1,061 1,071 3,288 2,436 Other 211 202 599 583 Net sales $ 5,731 $ 5,451 $ 16,996 $ 15,316

RELATED PARTIES (Tables)

RELATED PARTIES (Tables)	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
Schedule of Equity Method Investments	Amounts attributable to equity method investees are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Sales to equity method investees included in Product sales $ 730 $ 718 $ 2,371 $ 2,129 Purchases from equity method investees included in Cost of products sold $ 57 $ 60 $ 159 $ 261 The Company had receivables from and payables to equity method investees as follows: (In millions) September 30, December 31, Receivables from equity method investees included in Accounts receivable, net $ 289 $ 154 Payables to equity method investees included in Accounts payable $ 35 $ 44

COMMITMENTS AND CONTINGENT LI_2

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Outstanding Liabilities for Environmental Obligations	The outstanding liabilities for environmental obligations are as follows: (In millions) September 30, December 31, Environmental reserves included in Accrued liabilities $ 12 $ 24 Environmental reserves included in Other long-term liabilities 208 211 Total Environmental reserves $ 220 $ 235
Schedule of Asbestos Liabilities and Related Recoveries	The Company's asbestos liabilities and related insurance recoveries are as follows: (In millions) September 30, December 31, Asbestos liabilities included in Accrued liabilities $ 16 $ 16 Asbestos liabilities included in Other long-term liabilities 207 212 Total Asbestos liabilities $ 223 $ 228 Asbestos-related recoveries included in Other assets, current $ 5 $ 5 Asbestos-related recoveries included in Other assets 89 90 Total Asbestos-related recoveries $ 94 $ 95

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details)	9 Months Ended
	Sep. 30, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	3

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) $ in Millions, € in Billions	Apr. 25, 2023 EUR (€)	Feb. 06, 2022 USD ($)	Apr. 03, 2020 shares	Apr. 02, 2020 USD ($)	Mar. 27, 2020 USD ($)	Aug. 01, 2022	Jan. 03, 2022 country	Feb. 27, 2020 USD ($)
Restructuring Cost and Reserve [Line Items]
Shares converted in spinoff transaction (in shares) | shares			1
Aggregate principal balance								$ 11,000
Net transfer to parent					$ 10,900
Capital contributions received from contributions from parent				$ 590
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Chubb Fire and Security | Fire & Security
Restructuring Cost and Reserve [Line Items]
Number of countries | country							17
VCS Business
Restructuring Cost and Reserve [Line Items]
Business combination, consideration transferred | €	€ 12
Toshiba Carrier Corporation
Restructuring Cost and Reserve [Line Items]
Business combination, consideration transferred		$ 920
Toshiba Carrier Corporation | Toshiba Carrier Corporation | Toshiba Corporation
Restructuring Cost and Reserve [Line Items]
Ownership percentage		5%				5%

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 782	$ 884
Work-in-process	260	230
Finished goods	1,520	1,526
Inventories, net	2,562	2,640
Inventory valuation reserves	$ 230	$ 190

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 9,977
Acquisitions / divestitures	(4)
Foreign currency translation	(148)
Ending balance	9,825
HVAC
Goodwill [Roll Forward]
Beginning balance	6,392
Acquisitions / divestitures	0
Foreign currency translation	(91)
Ending balance	6,301
Refrigeration
Goodwill [Roll Forward]
Beginning balance	1,197
Acquisitions / divestitures	(4)
Foreign currency translation	(16)
Ending balance	1,177
Fire & Security
Goodwill [Roll Forward]
Beginning balance	2,388
Acquisitions / divestitures	0
Foreign currency translation	(41)
Ending balance	$ 2,347

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Finite and Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 2,677	$ 2,785
Accumulated Amortization	(1,641)	(1,506)
Net Amount	1,036	1,279
Indefinite-lived Intangible Assets [Line Items]
Gross Amount	2,741	2,848
Accumulated Amortization	(1,641)	(1,506)
Net Amount	1,100	1,342
Trademarks and other
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	64	63
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Amount	1,387	1,431
Accumulated Amortization	(766)	(720)
Net Amount	621	711
Indefinite-lived Intangible Assets [Line Items]
Accumulated Amortization	(766)	(720)
Patents and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Amount	375	401
Accumulated Amortization	(201)	(191)
Net Amount	174	210
Indefinite-lived Intangible Assets [Line Items]
Accumulated Amortization	(201)	(191)
Service portfolios and other
Finite-Lived Intangible Assets [Line Items]
Gross Amount	915	953
Accumulated Amortization	(674)	(595)
Net Amount	241	358
Indefinite-lived Intangible Assets [Line Items]
Accumulated Amortization	$ (674)	$ (595)

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS - Amortization of Intangible Asses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense of Intangible assets	$ 60	$ 38	$ 185	$ 79

BORROWINGS AND LINES OF CREDI_2

BORROWINGS AND LINES OF CREDIT - Long-term Debt (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Mar. 15, 2022
Debt Instrument [Line Items]
Discounts and debt issuance costs	$ (81)	$ (61)
Total debt	8,785	8,842
Less: current portion of long-term debt	134	140
Long-term debt, net of current portion	8,651	8,702
Unsecured Debt
Debt Instrument [Line Items]
Long-term debt, gross	8,350	8,350
Unsecured Debt | Japanese Term Loan Facility
Debt Instrument [Line Items]
Long-term debt, gross	362	404
Other Debt
Debt Instrument [Line Items]
Long-term debt, gross	154	149
2.242% Notes due February 15, 2025 | Unsecured Debt
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,200	1,200
Interest rate	2.242%		2.242%
2.493% Notes due February 15, 2027 | Unsecured Debt
Debt Instrument [Line Items]
Long-term debt, gross	$ 900	900
Interest rate	2.493%		2.493%
2.722% Notes due February 15, 2030 | Unsecured Debt
Debt Instrument [Line Items]
Long-term debt, gross	$ 2,000	2,000
Interest rate	2.722%
2.700% Notes due February 15, 2031 | Unsecured Debt
Debt Instrument [Line Items]
Long-term debt, gross	$ 750	750
Interest rate	2.70%
3.377% Notes due April 5, 2040 | Unsecured Debt
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,500	1,500
Interest rate	3.377%
3.577% Notes due April 5, 2050 | Unsecured Debt
Debt Instrument [Line Items]
Long-term debt, gross	$ 2,000	$ 2,000
Interest rate	3.577%

BORROWINGS AND LINES OF CREDI_3

BORROWINGS AND LINES OF CREDIT - Narrative (Details) ¥ in Billions				3 Months Ended	9 Months Ended
	May 19, 2023 USD ($)	Jul. 25, 2022 JPY (¥)	Jul. 15, 2022 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Jul. 15, 2022 JPY (¥)	Mar. 15, 2022 USD ($)	Feb. 27, 2020 USD ($)
Debt Instrument [Line Items]
Aggregate principal balance									$ 11,000,000,000
Issuance of long-term debt					$ 14,000,000	$ 421,000,000
Repayment of long-term debt					$ 15,000,000	1,185,000,000
Unsecured Debt | Senior Notes, 2.242%, Due 2025 And Senior Notes, 2.493% Due 2027
Debt Instrument [Line Items]
Aggregate principal balance								$ 1,150,000,000
Gain related to purchase debt				$ 33,000,000
Write-off of remaining unamortized deferred financing costs				$ 5,000,000
Unsecured Debt | 2.242% Notes due February 15, 2025
Debt Instrument [Line Items]
Interest rate					2.242%			2.242%
Aggregate purchase cap								$ 800,000,000
Unsecured Debt | 2.493% Notes due February 15, 2027
Debt Instrument [Line Items]
Aggregate principal balance								$ 350,000,000
Interest rate					2.493%			2.493%
Other Debt | Project Financing Arrangements
Debt Instrument [Line Items]
Issuance of long-term debt					$ 14,000,000	27,000,000
Repayment of long-term debt					15,000,000	$ 70,000,000
Term Loan | Unsecured Debt
Debt Instrument [Line Items]
Debt instrument, term			5 years
Aggregate principal balance			$ 400,000,000				¥ 54
Capitalized deferred financing costs			$ 2,000,000
Proceeds from issuance of debt | ¥		¥ 54
Term Loan | Unsecured Debt | Tokyo Term Risk Free Rate
Debt Instrument [Line Items]
Basis spread on variable rate			0.75%
Revolving Credit Facility | Secured Overnight Financing Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.10%
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Capitalized deferred financing costs	$ 2,000,000
Revolving credit facility, maximum borrowing capacity	$ 2,000,000,000
Long-term debt					0
Commercial Paper | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity					2,000,000,000
Short-term debt					$ 0

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) - VCS Business $ in Millions, € in Billions	3 Months Ended	9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)	Apr. 25, 2023 EUR (€)
Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount | €			€ 7
Loss on mark-to-market valuation	$ (257)	$ (368)
Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount	1,275	$ 1,275
Gain on mark-to-market valuation	$ 80

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value and Carrying Amounts Measured on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	$ 116	$ 28
Derivative liabilities	(408)	(48)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	116	28
Derivative liabilities	(408)	(48)
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	$ 0	$ 0

FAIR VALUES MEASUREMENTS - Carr

FAIR VALUES MEASUREMENTS - Carrying Amounts and Fair Values of Financial Instruments (Details) - Unsecured Debt - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	$ 8,350	$ 8,350
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 6,653	$ 6,832

EMPLOYEE BENEFIT PLANS - Contri

EMPLOYEE BENEFIT PLANS - Contributions to Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Retirement Benefits [Abstract]
Defined benefit plans	$ 6	$ 4	$ 17	$ 10
Defined contribution plans	30	29	96	95
Multi-employer pension plans	$ 3	$ 5	$ 11	$ 11

EMPLOYEE BENEFIT PLANS - Compon

EMPLOYEE BENEFIT PLANS - Components of Net Periodic Pension Expense (Benefit) for the Defined Benefit Pension Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Retirement Benefits [Abstract]
Service cost	$ 4	$ 5	$ 12	$ 14
Interest cost	8	5	24	13
Expected return on plan assets	(8)	(7)	(24)	(20)
Amortization of prior service credit	1	1	2	2
Recognized actuarial net (gain) loss	(1)	2	(2)	7
Net periodic pension expense (benefit)	$ 4	$ 6	$ 12	$ 16

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 24	$ 18	$ 66	$ 42
Equity compensation costs - equity settled
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	23	17	63	58
Equity compensation costs - cash settled
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 1	$ 1	$ 3	$ (16)

PRODUCT WARRANTIES (Details)

PRODUCT WARRANTIES (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Beginning balance	$ 552	$ 524
Warranties, performance guarantees issued and changes in estimated liability	186	120
Settlements made	(146)	(116)
Other	(15)	9
Ending balance	$ 577	$ 537

EQUITY - Narrative (Details)

EQUITY - Narrative (Details) - USD ($)	3 Months Ended				9 Months Ended	12 Months Ended
	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Dec. 31, 2022	Feb. 28, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, shares authorized (in shares)					4,000,000,000
Common stock, par or stated value per share (in dollars per share)					$ 0.01
Stock repurchase program, authorized amount							$ 4,100,000,000
Shares of common stock repurchased (in shares)					1,400,000	42,100,000
Treasury stock repurchase	$ 62,000,000	$ 248,000,000	$ 273,000,000	$ 741,000,000	$ 62,000,000	$ 1,900,000,000
Remaining authorized repurchase amount					$ 2,100,000,000	$ 2,200,000,000
Common Stock
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, shares, issued (in shares)					882,497,944	876,487,480
Treasury Stock
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, shares, issued (in shares)					43,490,981	42,103,995
Treasury stock repurchase	$ 62,000,000	$ 248,000,000	$ 273,000,000	$ 741,000,000

EQUITY - Schedule of Changes in

EQUITY - Schedule of Changes in AOCI (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance as of beginning of period	$ 8,288	$ 8,468	$ 8,076	$ 6,992	$ 7,430	$ 7,094	$ 8,076	$ 7,094
Other comprehensive income (loss) before reclassifications, net	(165)	(55)	52	(632)	(480)	(65)
Amounts reclassified, pre-tax	0	0	0	3	3	3
Tax expense (benefit) reclassified	0	0	0	(1)	(1)	(1)
Chubb divestiture	0			0		(245)	0	(245)
Balance as of end of period	8,502	8,288	8,468	7,463	6,992	7,430	8,502	7,463
Accumulated Other Comprehensive Income (Loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance as of beginning of period	(1,691)	(1,636)	(1,688)	(1,775)	(1,297)	(989)	(1,688)	(989)
Balance as of end of period	(1,856)	(1,691)	(1,636)	(2,405)	(1,775)	(1,297)	(1,856)	(2,405)
Foreign Currency Translation
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance as of beginning of period	(1,607)	(1,552)	(1,604)	(1,620)	(1,140)	(505)	(1,604)	(505)
Other comprehensive income (loss) before reclassifications, net	(245)	(55)	52	(632)	(480)	(61)
Amounts reclassified, pre-tax	0	0	0	0	0	0
Tax expense (benefit) reclassified	0	0	0	0	0	0
Chubb divestiture						(574)
Balance as of end of period	(1,852)	(1,607)	(1,552)	(2,252)	(1,620)	(1,140)	(1,852)	(2,252)
Defined Benefit Pension and Post-retirement Plans
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance as of beginning of period	(84)	(84)	(84)	(155)	(157)	(484)	(84)	(484)
Other comprehensive income (loss) before reclassifications, net	0	0	0	0	0	(4)
Amounts reclassified, pre-tax	0	0	0	3	3	3
Tax expense (benefit) reclassified	0	0	0	(1)	(1)	(1)
Chubb divestiture						329
Balance as of end of period	(84)	(84)	(84)	$ (153)	$ (155)	$ (157)	(84)	$ (153)
Unrealized Hedging Gains (Losses)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance as of beginning of period	0	0	0				0
Other comprehensive income (loss) before reclassifications, net	80	0	0
Amounts reclassified, pre-tax	0	0	0
Tax expense (benefit) reclassified	0	0	0
Balance as of end of period	$ 80	$ 0	$ 0				$ 80

REVENUE RECOGNITION - Sales Dis

REVENUE RECOGNITION - Sales Disaggregated by Product and Service (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Total Net sales	$ 5,731	$ 5,451	$ 16,996	$ 15,316
Product
Segment Reporting Information [Line Items]
Total Net sales	5,081	4,891	15,122	13,723
Service
Segment Reporting Information [Line Items]
Total Net sales	650	560	1,874	1,593
Operating Segments
Segment Reporting Information [Line Items]
Total Net sales	5,855	5,562	17,364	15,642
Operating Segments | HVAC sales
Segment Reporting Information [Line Items]
Total Net sales	4,008	3,734	11,846	10,092
Operating Segments | HVAC sales | Product
Segment Reporting Information [Line Items]
Total Net sales	3,533	3,330	10,488	8,974
Operating Segments | HVAC sales | Service
Segment Reporting Information [Line Items]
Total Net sales	475	404	1,358	1,118
Operating Segments | Refrigeration sales
Segment Reporting Information [Line Items]
Total Net sales	924	923	2,794	2,940
Operating Segments | Refrigeration sales | Product
Segment Reporting Information [Line Items]
Total Net sales	808	811	2,453	2,603
Operating Segments | Refrigeration sales | Service
Segment Reporting Information [Line Items]
Total Net sales	116	112	341	337
Operating Segments | Fire & Security sales
Segment Reporting Information [Line Items]
Total Net sales	923	905	2,724	2,610
Operating Segments | Fire & Security sales | Product
Segment Reporting Information [Line Items]
Total Net sales	864	859	2,546	2,468
Operating Segments | Fire & Security sales | Service
Segment Reporting Information [Line Items]
Total Net sales	59	46	178	142
Eliminations and other
Segment Reporting Information [Line Items]
Total Net sales	$ (124)	$ (111)	$ (368)	$ (326)

REVENUE RECOGNITION - Contract

REVENUE RECOGNITION - Contract Assets and Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract assets, current	$ 605	$ 537
Contract assets, non-current (included within Other assets)	18	6
Total contract assets	623	543
Contract liabilities, current	(496)	(449)
Contract liabilities, non-current (included within Other long-term liabilities)	(166)	(174)
Total contract liabilities	(662)	(623)
Net contract assets (liabilities)	$ (39)	$ (80)

REVENUE RECOGNITION - Narrative

REVENUE RECOGNITION - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Contract with customer, liability, revenue recognized	$ 325

REVENUE RECOGNITION - Remaining

REVENUE RECOGNITION - Remaining Performance Obligations (Details)	Sep. 30, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period	12 months

RESTRUCTURING COSTS (Details)

RESTRUCTURING COSTS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 28	$ 6	$ 54	$ 29
Restructuring Reserve [Roll Forward]
Beginning balance			24	54
Net pre-tax restructuring costs	28	6	54	29
Utilization, foreign exchange and other			(34)	(50)
Ending balance	44	33	44	33
Restructuring reserve	44		44
Cost of sales
Restructuring Cost and Reserve [Line Items]
Restructuring costs	3	1	12	8
Restructuring Reserve [Roll Forward]
Net pre-tax restructuring costs	3	1	12	8
Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring costs	25	5	42	21
Restructuring Reserve [Roll Forward]
Net pre-tax restructuring costs	25	5	42	21
Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	28	6	52	27
Restructuring Reserve [Roll Forward]
Net pre-tax restructuring costs	28	6	52	27
Operating Segments | HVAC
Restructuring Cost and Reserve [Line Items]
Restructuring costs	25	2	27	8
Restructuring Reserve [Roll Forward]
Net pre-tax restructuring costs	25	2	27	8
Operating Segments | Refrigeration
Restructuring Cost and Reserve [Line Items]
Restructuring costs	4	3	14	9
Restructuring Reserve [Roll Forward]
Net pre-tax restructuring costs	4	3	14	9
Operating Segments | Fire & Security
Restructuring Cost and Reserve [Line Items]
Restructuring costs	(1)	1	11	10
Restructuring Reserve [Roll Forward]
Net pre-tax restructuring costs	(1)	1	11	10
General corporate expenses
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	0	2	2
Restructuring Reserve [Roll Forward]
Net pre-tax restructuring costs	$ 0	$ 0	$ 2	$ 2

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	May 14, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]
Effective income tax rate reconciliation, percent		35.90%	9.40%	34.40%	15.60%
Net tax charge				$ 33
Effective income tax rate reconciliation, equity in earnings of unconsolidated subsidiary, amount			$ 732		$ 732
Deconsolidation, loss amount	$ 297			297
Effective income tax rate, gain amount				1,100
Effective income tax rate reconciliation, favorable adjustments					$ 32
Minimum
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]
Decrease in unrecognized tax benefits is reasonably possible		$ 70		70
Maximum
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]
Decrease in unrecognized tax benefits is reasonably possible		85		85
VCS Business | Foreign Exchange Forward
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]
Loss on mark-to-market valuation		$ 257		$ 368

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Net income attributable to common shareowners	$ 357	$ 1,312	$ 929	$ 3,264
Basic weighted-average number of shares outstanding (in shares)	838.7	839.6	836.6	846.1
Stock awards and equity units (share equivalent) (in shares)	16	16.9	16.1	18.2
Diluted weighted-average number of shares outstanding (in shares)	854.7	856.5	852.7	864.3
Antidilutive shares excluded from computation of diluted earnings per share (in shares)	2	4.5	1.9	3.1
Earnings Per Share
Basic (in dollars per share)	$ 0.43	$ 1.56	$ 1.11	$ 3.86
Diluted (in dollars per share)	$ 0.42	$ 1.53	$ 1.09	$ 3.78

ACQUISITIONS - Narrative (Detai

ACQUISITIONS - Narrative (Details) € in Billions

3 Months Ended

9 Months Ended

May 19, 2023 USD ($)

May 19, 2023 EUR (€)

Apr. 25, 2023 EUR (€)

Feb. 06, 2022 USD ($)

Mar. 31, 2023 USD ($)

Sep. 30, 2022 USD ($)

Sep. 30, 2023 USD ($)

May 19, 2023 EUR (€)

Apr. 25, 2023 USD ($)

Apr. 25, 2023 EUR (€)

Dec. 31, 2022 USD ($)

Aug. 01, 2022 USD ($)

Feb. 27, 2020 USD ($)

Business Acquisition [Line Items]

Goodwill

$ 9,825,000,000

$ 9,977,000,000

Aggregate principal amount

$ 11,000,000,000

Bridge Loan | Unsecured Debt

Business Acquisition [Line Items]

Aggregate principal amount | €

€ 8.2

Capitalized deferred financing costs

$ 48,000,000

Principal reduction | €

€ 2.3

Accumulated amortization, debt issuance costs

$ 10,000,000

Delayed Draw Facility | Line of Credit | The Credit Agreement

Business Acquisition [Line Items]

Maximum borrowing capacity | €

€ 2.3

Debt issuance costs, net

4,000,000

Revolving Credit Facility | Line of Credit

Business Acquisition [Line Items]

Capitalized deferred financing costs

2,000,000

Maximum borrowing capacity

2,000,000,000

Revolving Credit Facility | Senior Unsecured Revolving Credit Facility | The Credit Agreement

Business Acquisition [Line Items]

Maximum borrowing capacity

$ 500,000,000

Debt instrument, term

364 days

364 days

Toshiba Carrier Corporation

Business Acquisition [Line Items]

Business combination, consideration transferred

$ 920,000,000

Goodwill

$ 876,000,000

$ 876,000,000

Working capital adjustments and other transaction-related items

$ 41,000,000

Accounts receivable

$ 12,000,000

$ 428,000,000

Business combination, step acquisition, equity interest in acquiree, remeasurement gain

$ 696,000,000

Acquisition-related costs

$ 29,000,000

$ 26,000,000

Toshiba Carrier Corporation | Toshiba Carrier Corporation | Toshiba Corporation

Business Acquisition [Line Items]

Ownership percentage

5%

5%

VCS Business

Business Acquisition [Line Items]

Business combination, consideration transferred | €

€ 12

Business combination, percentage of purchase price to be paid in equity

20%

Business combination, percentage of purchase price to be paid in cash

80%

ACQUISITIONS - Purchase Price (

ACQUISITIONS - Purchase Price (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Aug. 01, 2022	Feb. 06, 2022
Business Acquisition [Line Items]
Goodwill	$ 9,825	$ 9,977
Toshiba Carrier Corporation
Business Acquisition [Line Items]
Cash and cash equivalents			$ 462
Accounts receivable	$ 12		428
Inventories			373
Other assets, current			54
Fixed assets			330
Intangible assets			965
Goodwill			876	$ 876
Other assets			299
Accounts payable			(412)
Accrued liabilities			(445)
Contract liabilities, current			(21)
Other long-term liabilities			(569)
Net assets acquired			2,340
Less: Fair value of non-controlling interests			(22)
Less: Fair value of previously held TCC equity investments			(1,398)
Total cash consideration			$ 920

ACQUISITIONS - Intangible Asset

ACQUISITIONS - Intangible Assets Acquired (Details) - Toshiba Carrier Corporation $ in Millions	Aug. 01, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Intangible Assets Acquired	$ 965
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	23 years
Intangible Assets Acquired	$ 497
Technology
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	7 years
Intangible Assets Acquired	$ 220
Trademark
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	26 years
Intangible Assets Acquired	$ 180
Backlog
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	1 year
Intangible Assets Acquired	$ 60
Land use rights
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	45 years
Intangible Assets Acquired	$ 8

DIVESTITURES (Details)

DIVESTITURES (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Chubb Fire and Security $ in Billions	9 Months Ended
	Sep. 30, 2022 USD ($)	Jan. 03, 2022 USD ($) country
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Enterprise value		$ 2.9
Gain on sale	$ 1.1
Fire & Security
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of countries | country		17

SEGMENT FINANCIAL DATA (Details

SEGMENT FINANCIAL DATA (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment			3
Net Sales	$ 5,731	$ 5,451	$ 16,996	$ 15,316
Operating Profit	645	1,526	1,689	4,082
United States
Segment Reporting Information [Line Items]
Net Sales	3,335	3,154	9,584	9,109
Europe
Segment Reporting Information [Line Items]
Net Sales	1,124	1,024	3,525	3,188
Asia Pacific
Segment Reporting Information [Line Items]
Net Sales	1,061	1,071	3,288	2,436
Other
Segment Reporting Information [Line Items]
Net Sales	211	202	599	583
Operating Segments
Segment Reporting Information [Line Items]
Net Sales	5,855	5,562	17,364	15,642
Operating Profit	1,034	1,572	2,367	4,233
Operating Segments | HVAC
Segment Reporting Information [Line Items]
Net Sales	4,008	3,734	11,846	10,092
Operating Profit	763	1,314	1,940	2,369
Operating Segments | Refrigeration
Segment Reporting Information [Line Items]
Net Sales	924	923	2,794	2,940
Operating Profit	107	116	327	370
Operating Segments | Fire & Security
Segment Reporting Information [Line Items]
Net Sales	923	905	2,724	2,610
Operating Profit	164	142	100	1,494
Eliminations and other
Segment Reporting Information [Line Items]
Net Sales	(124)	(111)	(368)	(326)
Operating Profit	(298)	(10)	(482)	(50)
General corporate expenses
Segment Reporting Information [Line Items]
Net Sales	0	0	0	0
Operating Profit	$ (91)	$ (36)	$ (196)	$ (101)

RELATED PARTIES (Details)

RELATED PARTIES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Sales to equity method investees included in Product sales	$ 5,731	$ 5,451	$ 16,996	$ 15,316
Receivables from equity method investees included in Accounts receivable, net	3,030		3,030		$ 2,833
Payables to equity method investees included in Accounts payable	2,887		2,887		2,833
Product
Related Party Transaction [Line Items]
Sales to equity method investees included in Product sales	5,081	4,891	15,122	13,723
Purchases from equity method investees included in Cost of products sold	3,428	3,569	10,655	9,930
Related Party
Related Party Transaction [Line Items]
Receivables from equity method investees included in Accounts receivable, net	289		289		154
Payables to equity method investees included in Accounts payable	35		35		$ 44
Related Party | Product
Related Party Transaction [Line Items]
Sales to equity method investees included in Product sales	730	718	2,371	2,129
Purchases from equity method investees included in Cost of products sold	$ 57	$ 60	$ 159	$ 261

COMMITMENTS AND CONTINGENT LI_3

COMMITMENTS AND CONTINGENT LIABILITIES - Outstanding Liabilities for Environmental Obligations (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Environmental reserves included in Accrued liabilities	$ 12	$ 24
Environmental reserves included in Other long-term liabilities	208	211
Total Environmental reserves	$ 220	$ 235

COMMITMENTS AND CONTINGENT LI_4

COMMITMENTS AND CONTINGENT LIABILITIES - Asbestos Liabilities and Recoveries (Details) - Asbestos Matters - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Loss Contingencies [Line Items]
Asbestos liabilities included in Accrued liabilities	$ 16	$ 16
Asbestos liabilities included in Other long-term liabilities	207	212
Total Asbestos liabilities	223	228
Asbestos-related recoveries included in Other assets, current	5	5
Asbestos-related recoveries included in Other assets	89	90
Total Asbestos-related recoveries	$ 94	$ 95

COMMITMENTS AND CONTINGENT LI_5

COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details)		9 Months Ended
	May 14, 2023 USD ($)	Sep. 30, 2023 USD ($) case	Sep. 30, 2022 USD ($)
Other Commitments [Line Items]
Potential contingent liabilities	$ 0
Deconsolidation, loss amount	297,000,000	$ 297,000,000
Kidde-Fenwal, Inc. deconsolidation	$ 134,000,000	134,000,000	$ 0
Tax cuts and jobs act, transition tax for accumulated foreign earnings, liability, current		75,000,000
Tax cuts and jobs act, transition tax for accumulated foreign earnings, liability		$ 293,000,000
Aqueous Film Forming Foam
Other Commitments [Line Items]
Number of litigation cases (more than) | case		5,000
Number of litigation cases filed by state, municipality, and water utilities (more than) | case		600
Number of litigation cases in state court (fewer than) | case		6