Segment Financial Data

12 Months Ended

Dec. 31, 2019

SEGMENT FINANCIAL DATA

Our operations for the periods presented herein are classified into four principal segments. The segments are generally determined based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services.

Otis products include elevators, escalators, moving walkways and service sold to customers in the commercial, residential and infrastructure property sectors around the world.

Carrier products and related services include HVAC and refrigeration systems, building controls and automation, fire and special hazard suppression systems and equipment, security monitoring and rapid response systems, provided to a diversified international customer base principally in the industrial, commercial and residential property and commercial transportation sectors.

Pratt & Whitney products include commercial, military, business jet and general aviation aircraft engines, parts and services sold to a diversified customer base, including international and domestic commercial airlines and aircraft leasing companies, aircraft manufacturers, and U.S. and foreign governments. Pratt & Whitney also provides product support and a full range of overhaul, repair and fleet management services.

Collins Aerospace Systems provides technologically advanced aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military and space operations. Products include electric power generation, power management and distribution systems, air data and aircraft sensing systems, engine control systems, intelligence, surveillance and reconnaissance systems, engine components, environmental control systems, fire and ice detection and protection systems, propeller systems, engine nacelle systems, including thrust reversers and mounting pylons, interior and exterior aircraft lighting, aircraft seating and cargo systems, actuation systems, landing systems, including landing gear, wheels and brakes, and space products and subsystems, integrated avionics systems, precision targeting, electronic warfare and range and training systems, flight controls, communications systems, navigation systems, oxygen systems, simulation and training systems, food and beverage preparation, storage and galley systems, lavatory and wastewater management systems. Aftermarket services include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and information management services.

We have reported our financial and operational results for the periods presented herein under the four principal segments noted above, consistent with how we have reviewed our business operations for decision-making purposes, resource allocation and performance assessment during 2019.

Segment Information. Total sales by segment include intersegment sales, which are generally made at prices approximating those that the selling entity is able to obtain on external sales. Segment information for the years ended December 31 is as follows:


	Net Sales										Operating Profits
(dollars in millions)	2019		2018		2017		2019		2018		2017
Otis	$	13,113	$	12,904	$	12,341	$	1,948	$	1,915	$	2,002
Carrier	18,608		18,922		17,812		2,697		3,777		3,165
Pratt & Whitney	20,892		19,397		16,160		1,668		1,269		1,300
Collins Aerospace Systems	26,028		16,634		14,691		4,100		2,303		2,191
Total segment	78,641		67,857		61,004		10,413		9,264		8,658
Eliminations and other	(1,595)		(1,356)		(1,167)		(932)		(236)		(81)
General corporate expenses	—		—		—		(515)		(475)		(439)
Consolidated	$	77,046	$	66,501	$	59,837	$	8,966	$	8,553	$	8,138


	Total Assets										Capital Expenditures								Depreciation & Amortization
(dollars in millions)	2019		2018		2017		2019		2018		2017		2019		2018		2017
Otis	$	9,973	$	9,374	$	9,421	$	145	$	172	$	133	$	337	$	190	$	177
Carrier	22,789		22,189		22,657		243		263		326		513		357		372
Pratt & Whitney	31,271		29,341		26,768		822		866		923		980		852		672
Collins Aerospace Systems	74,049		73,115		34,567		959		515		527		1,749		883		823
Total segment	138,082		134,019		93,413		2,169		1,816		1,909		3,579		2,282		2,044
Eliminations and other	1,634		192		3,507		87		86		105		204		151		96
Consolidated	$	139,716	$	134,211	$	96,920	$	2,256	$	1,902	$	2,014	$	3,783	$	2,433	$	2,140

Geographic External Sales and Operating Profit. Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. U.S. external sales include export sales to commercial customers outside the U.S. and sales to the U.S. Government, commercial and affiliated customers, which are known to be for resale to customers outside the U.S. Long-lived assets are net fixed assets attributed to the specific geographic regions.


	External Net Sales										Operating Profits								Long-Lived Assets
(dollars in millions)	2019		2018		2017		2019		2018		2017		2019		2018		2017
United States Operations	$	48,288	$	39,481	$	33,912	$	5,505	$	4,941	$	4,126	$	7,498	$	7,111	$	5,323
International Operations
Europe	13,664		12,857		11,879		2,476		2,141		1,959		1,889		1,908		1,817
Asia Pacific	9,391		8,847		8,770		1,662		1,476		1,491		1,359		1,349		1,113
Other	7,298		6,672		6,443		770		706		1,082		1,412		1,363		1,389
Eliminations and other	(1,595)		(1,356)		(1,167)		(1,447)		(711)		(520)		597		566		544
Consolidated	$	77,046	$	66,501	$	59,837	$	8,966	$	8,553	$	8,138	$	12,755	$	12,297	$	10,186

Sales from U.S. operations include export sales as follows:


(dollars in millions)	2019		2018		2017
Europe	$	7,122	$	6,285	$	5,273
Asia Pacific	6,479		5,429		3,634
Other	3,847		2,514		2,217
Total	$	17,448	$	14,228	$	11,124

Sales by primary geographical market for the year ended December 31, 2019 is as follows:


(dollars in millions)	Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total
Primary Geographical Markets
United States	$	3,589	$	9,574	$	16,148	$	18,977	$	48,288
Europe	3,919		5,326		498		3,921		13,664
Asia Pacific	4,591		2,811		1,164		825		9,391
Other*	1,014		897		3,082		2,305		7,298
Total segment	$	13,113	$	18,608	$	20,892	$	26,028	$	78,641
Eliminations and other									(1,595)
Consolidated									$	77,046

Sales by primary geographical market for the year ended December 31, 2018 is as follows:


(dollars in millions)	Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total
Primary Geographical Markets
United States	$	3,433	$	9,402	$	14,852	$	11,794	$	39,481
Europe	4,055		5,710		594		2,498		12,857
Asia Pacific	4,354		2,849		1,277		367		8,847
Other*	1,062		961		2,674		1,975		6,672
Total segment	$	12,904	$	18,922	$	19,397	$	16,634	$	67,857
Eliminations and other									(1,356)
Consolidated									$	66,501

*Other includes sales to other regions as well as intersegment sales.

Segment sales disaggregated by product type and product versus service for the year ended December 31, 2019 are as follows:


(dollars in millions)	Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total
Product Type
Commercial and industrial, non aerospace	$	13,113	$	18,608	$	102	$	51	$	31,874
Commercial aerospace	—		—		14,516		19,005		33,521
Military aerospace	—		—		6,274		6,972		13,246
Total segment	$	13,113	$	18,608	$	20,892	$	26,028	$	78,641
Eliminations and other									(1,595)
Consolidated									$	77,046

Sales Type
Product	$	5,669	$	15,360	$	12,977	$	21,440	$	55,446
Service	7,444		3,248		7,915		4,588		23,195
Total segment	$	13,113	$	18,608	$	20,892	$	26,028	$	78,641
Eliminations and other									(1,595)
Consolidated									$	77,046

Segment sales disaggregated by product type and product versus service for the year ended December 31, 2018 are as follows:


(dollars in millions)	Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total
Product Type
Commercial and industrial, non aerospace	$	12,904	$	18,922	$	55	$	60	$	31,941
Commercial aerospace	—		—		14,027		12,564		26,591
Military aerospace	—		—		5,315		4,010		9,325
Total segment	$	12,904	$	18,922	$	19,397	$	16,634	$	67,857
Eliminations and other									(1,356)
Consolidated									$	66,501

Sales Type
Product	$	5,636	$	15,682	$	11,410	$	13,915	$	46,643
Service	7,268		3,240		7,987		2,719		21,214
Total segment	$	12,904	$	18,922	$	19,397	$	16,634	$	67,857
Eliminations and other									(1,356)
Consolidated									$	66,501

Major Customers. Net Sales include sales under prime contracts and subcontracts to the U.S. Government, primarily related to Pratt & Whitney and Collins Aerospace Systems products, as follows:


(dollars in millions)	2019		2018		2017
Pratt & Whitney	$	5,614	$	4,489	$	3,347
Collins Aerospace Systems	4,802		2,779		2,299
Other	227		175		152
Total	$	10,643	$	7,443	$	5,798

Sales to Airbus prior to discounts and incentives, primarily related to Pratt & Whitney and Collins Aerospace Systems products, were approximately $9,879 million, $10,025 million and $8,908 million for the years ended December 31, 2019, 2018 and 2017, respectively.