Borrowings and Lines of Credit (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Short-Term Debt [Table Text Block]


(dollars in millions)	September 30, 2020		December 31, 2019
Commercial paper	$	160	$	—
Other borrowings	68		2,293
Total short-term borrowings	$	228	$	2,293

Schedule of Long Term Debt Issuances

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


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

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

Schedule of Long Term Debt Repayments

We had the following repayments of long-term debt during the nine months ended September 30, 2020 and 2019:


(dollars in millions)
Repayment Date	Description of Notes	Aggregate Principal Balance
May 19, 2020	3.650% notes due 2023 ⁽¹⁾⁽²⁾	$	410
May 15, 2020	EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value)⁽²⁾	817
March 29, 2020	4.500% notes due 2020 ⁽¹⁾⁽²⁾	1,250
	1.125% notes due 2021 (€950 million principal value) ⁽¹⁾⁽²⁾	1,082
	1.250% notes due 2023 (€750 million principal value) ⁽¹⁾⁽²⁾	836
	1.150% notes due 2024 (€750 million principal value) ⁽¹⁾⁽²⁾	841
	1.875% notes due 2026 (€500 million principal value) ⁽¹⁾⁽²⁾	567
March 3, 2020	1.900% notes due 2020 ⁽¹⁾⁽²⁾	1,000
	3.350% notes due 2021 ⁽¹⁾⁽²⁾	1,000
	LIBOR plus 0.650% floating rate notes due 2021 ⁽¹⁾⁽²⁾	750
	1.950% notes due 2021 ⁽¹⁾⁽²⁾	750
	2.300% notes due 2022 ⁽¹⁾⁽²⁾	500
	3.100% notes due 2022 ⁽¹⁾⁽²⁾	2,300
	2.800% notes due 2024 ⁽¹⁾⁽²⁾	800
March 2, 2020	4.875% notes due 2020 ⁽¹⁾⁽²⁾	171
February 28, 2020	3.650% notes due 2023 ⁽¹⁾⁽²⁾	1,669
	2.650% notes due 2026 ⁽¹⁾⁽²⁾	431
Total debt repayments during the nine months ended September 30, 2020				$	15,174





July 15, 2019	1.950% notes due 2019	300
	5.250% notes due 2019	300
Total debt repayments during the nine months ended September 30, 2019				$	600

(1) In connection with the early repayment of outstanding principal, Raytheon Technologies recorded debt extinguishment costs of $703 million for the nine months ended September 30, 2020, which are classified as discontinued operations in our Condensed Consolidated Statement of Operations as we would not have had to redeem the debt, except for the Separation Transactions. No proceeds of the notes issued May 18, 2020 were used to fund the May 19, 2020 redemption.

(2) Extinguishment of Raytheon Technologies short-term and long-term debt in order to not exceed the maximum net indebtedness required by the Raytheon Merger Agreement.

Schedule of Long-term Debt [Table Text Block]

Long-term debt consisted of the following:


(dollars in millions)	September 30, 2020		December 31, 2019
4.875% notes due 2020	$	—	$	171
4.500% notes due 2020	—		1,250
1.900% notes due 2020	—		1,000
EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value)	—		831
3.125% notes due 2020 ⁽²⁾	1,000		—
8.750% notes due 2021	250		250
3.100% notes due 2021	250		250
3.350% notes due 2021	—		1,000
LIBOR plus 0.650% floating rate notes due 2021	—		750
1.950% notes due 2021	—		750


1.125% notes due 2021 (€950 million principal value)	—	1,053
2.300% notes due 2022	—	500
2.800% notes due 2022	1,100	1,100
3.100% notes due 2022	—	2,300
2.500% notes due 2022 ⁽²⁾	1,100	—
1.250% notes due 2023 (€750 million principal value)	—	831
3.650% notes due 2023 ⁽¹⁾	171	2,250
3.700% notes due 2023	400	400
2.800% notes due 2024	—	800
3.200% notes due 2024	950	950
1.150% notes due 2024 (€750 million principal value)	—	831
3.150% notes due 2024 ⁽²⁾	300	—
3.950% notes due 2025 ⁽¹⁾	1,500	1,500
1.875% notes due 2026 (€500 million principal value)	—	554
2.650% notes due 2026 ⁽¹⁾	719	1,150
3.125% notes due 2027 ⁽¹⁾	1,100	1,100
3.500% notes due 2027	1,300	1,300
7.200% notes due 2027 ⁽²⁾	382	—
7.100% notes due 2027	141	141
6.700% notes due 2028	400	400
7.000% notes due 2028 ⁽²⁾	185	—
4.125% notes due 2028 ⁽¹⁾	3,000	3,000
7.500% notes due 2029 ⁽¹⁾	550	550
2.150% notes due 2030 (€500 million principal value) ⁽¹⁾	583	554
2.250% notes due 2030 ⁽¹⁾	1,000	—
5.400% notes due 2035 ⁽¹⁾	600	600
6.050% notes due 2036 ⁽¹⁾	600	600
6.800% notes due 2036 ⁽¹⁾	134	134
7.000% notes due 2038	159	159
6.125% notes due 2038 ⁽¹⁾	1,000	1,000
4.450% notes due 2038 ⁽¹⁾	750	750
5.700% notes due 2040 ⁽¹⁾	1,000	1,000
4.875% notes due 2040 ⁽²⁾	600	—
4.700% notes due 2041 ⁽²⁾	425	—
4.500% notes due 2042 ⁽¹⁾	3,500	3,500
4.800% notes due 2043	400	400
4.200% notes due 2044 ⁽²⁾	300	—
4.150% notes due 2045 ⁽¹⁾	850	850
3.750% notes due 2046 ⁽¹⁾	1,100	1,100
4.050% notes due 2047 ⁽¹⁾	600	600
4.350% notes due 2047	1,000	1,000
4.625% notes due 2048 ⁽¹⁾	1,750	1,750


3.125% notes due 2050 ⁽¹⁾	1,000	—
Other (including finance leases)	299	315
Total principal long-term debt	32,448	41,274
Other (fair market value adjustments, (discounts)/premiums, and debt issuance costs)	105	(315)
Total long-term debt	32,553	40,959
Less: current portion	1,307	3,258


Long-term debt, net of current portion			$	31,246					$	37,701

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

(2) Debt assumed in the Raytheon Merger.

Schedule of Weighted average interest rates [Table Text Block]

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


	Quarter Ended September 30,						Nine Months Ended September 30,
	2020		2019		2020		2019
Average interest expense rate	4.2	%	3.6	%	4.0	%	3.7	%

- Definition

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

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+ Details