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Restructuring and Other Costs
 9 Months Ended
Sep. 30, 2020
Restructuring and Related Activities [Abstract]  
Restructuring and Other Costs [Text Block] Restructuring Costs
Restructuring costs are generally expensed as incurred. All U.S. government unallowable restructuring costs related to the Raytheon Merger are recorded within Corporate expenses and other unallocated items, as these costs are not included in management’s evaluation of the segments’ performance, and as a result, there are no unallowable restructuring costs at the RIS and RMD segments. During the quarter and nine months ended September 30, 2020, we recorded net pre-tax restructuring costs totaling $250 million and $685 million, respectively, for new and ongoing restructuring actions. We recorded charges in the segments as follows:
(dollars in millions)
Quarter Ended September 30, 2020
Nine Months Ended September 30, 2020
Pratt & Whitney$68 $175 
Collins Aerospace Systems138 295 
Corporate expenses and other unallocated items44 215 
Total$250 $685 
Restructuring charges incurred during the quarter and nine months ended September 30, 2020 primarily relate to actions initiated during 2020 and 2019, and were recorded as follows:
(dollars in millions)
Quarter Ended September 30, 2020
Nine Months Ended September 30, 2020
Cost of sales$142 $330 
Selling, general and administrative103 350 
Restructuring costs recorded within operating expenses245 680 
Non-service pension (income) expense5 5 
Total$250 $685 
2020 Actions. During the quarter ended September 30, 2020, we recorded net pre-tax restructuring costs of $240 million, comprised of $139 million in Cost of sales, $96 million in Selling, general and administrative expenses and $5 million in Non-service pension expenses. During the nine months ended September 30, 2020, we recorded net pre-tax restructuring costs of $686 million, comprised of $339 million in Cost of sales, $342 million in Selling, general and administrative expenses and $5 million in Non-service pension expenses. The 2020 actions primarily relate severance and restructuring actions at Pratt & Whitney and Collins Aerospace in response to the anticipated impact on our operating results related to the current economic environment primarily caused by the COVID-19 pandemic, the Raytheon Merger, and ongoing cost reduction efforts including workforce reductions and the consolidation of field and manufacturing operations.
The following table summarizes the accrual balance and utilization for the 2020 restructuring actions for the quarter and nine months ended September 30, 2020:
(dollars in millions)SeveranceFacility Exit and Other CostsTotal
Quarter Ended September 30, 2020
Restructuring accruals at June 30, 2020
$395 $— $395 
Net pre-tax restructuring costs232 8 240 
Utilization, foreign exchange and other costs(166)(8)(174)
Balance at September 30, 2020$461 $— $461 
Nine Months Ended September 30, 2020
Restructuring accruals at December 31, 2019$— $— $— 
Net pre-tax restructuring costs677 9 686 
Utilization, foreign exchange and other costs(216)(9)(225)
Balance at September 30, 2020$461 $— $461 
The following table summarizes expected, incurred and remaining costs for the 2020 restructuring actions by segment:
(dollars in millions)Expected
Costs		Costs Incurred Quarter Ended
March 31, 2020		Costs Incurred Quarter Ended
June 30, 2020		Costs Incurred Quarter Ended
September 30, 2020		Remaining Costs at September 30, 2020
Pratt & Whitney$198 $— $(130)$(68)$— 
Collins Aerospace Systems309 (1)(146)(128)34 
Corporate expenses and other unallocated items213 (1)(168)(44)— 
Total$720 $(2)$(444)$(240)$34 
We are targeting to complete the majority of the remaining workforce and facility related cost reduction actions during 2020 and 2021.
2019 Actions. During the quarter ended September 30, 2020, we recorded $9 million of net pre-tax restructuring costs for restructuring actions initiated in 2019 comprised of $7 million in Selling, general and administrative expenses and $2 million in Cost of sales. During the nine months ended September 30, 2020, we recorded net pre-tax restructuring costs totaling $5 million for restructuring actions initiated in 2019, including expense of $10 million in Selling, general and administrative expenses, partially offset by a reversal of $5 million in Cost of sales. The 2019 actions relate to ongoing cost reduction efforts, including workforce reductions, consolidation of field and manufacturing operations, and costs to exit legacy programs. The following table summarizes the accrual balances and utilization for the 2019 restructuring actions for the quarter and nine months ended September 30, 2020:
(dollars in millions)SeveranceFacility Exit, and Other CostsTotal
Quarter Ended September 30, 2020
Restructuring accruals at June 30, 2020
$17 $10 $27 
Net pre-tax restructuring costs9 — 9 
Utilization, foreign exchange and other costs(10)— (10)
Balance at September 30, 2020$16 $10 $26 
Nine Months Ended September 30, 2020
Restructuring accruals at December 31, 2019$47 $11 $58 
Net pre-tax restructuring costs3 2 5 
Utilization, foreign exchange and other costs(34)(3)(37)
Balance at September 30, 2020$16 $10 $26 

The following table summarizes expected, incurred and remaining costs for the 2019 restructuring actions by segment:
(dollars in millions)Expected
Costs		Costs Incurred in 2019Costs Incurred Quarter Ended March 31, 2020Costs Incurred Quarter Ended June 30, 2020Costs Incurred Quarter Ended
September 30, 2020		Remaining Costs at September 30, 2020
Pratt & Whitney$121 $(133)$— $12 $— $— 
Collins Aerospace Systems106 (27)(5)(3)(9)62 
Corporate expenses and other unallocated items
2 (2)— — — — 
Total$229 $(162)$(5)$9 $(9)$62 
2018 and Prior Actions. During the quarter and nine months ended September 30, 2020, we had net pre-tax restructuring costs of $1 million and a reversal of $6 million, respectively, for restructuring actions initiated in 2018 and prior. As of September 30, 2020, we have approximately $51 million of accrual balances remaining related to 2018 and prior actions.