Variable Interest Entities

12 Months Ended

Dec. 31, 2020

Schedule of Variable Interest Entities [Abstract]

Variable Interest Entity Disclosure [Text Block]

VARIABLE INTEREST ENTITIESPratt & Whitney holds a 61% program share interest in the International Aero Engines AG (IAE) collaboration with MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC) and a 49.5% ownership interest in IAE. IAE’s business purpose is to coordinate the design, development, manufacturing and product support of the V2500 engine program through involvement with the collaborators. Additionally, Pratt & Whitney, JAEC and MTU are participants in International Aero Engines, LLC (IAE LLC), whose business purpose is to coordinate the design, development, manufacturing and product support for the PW1100G-JM engine for the Airbus A320neo aircraft and the PW1400G-JM engine for the Irkut MC-21 aircraft. Pratt & Whitney holds a 59% program share interest and a 59% ownership interest in IAE LLC. IAE and IAE LLC retain limited equity with the primary economics of the programs passed to the participants. As such, we have determined that IAE and IAE LLC are variable interest entities with Pratt & Whitney the primary beneficiary. IAE and IAE LLC have,

therefore, been consolidated. The carrying amounts and classification of assets and liabilities for variable interest entities in our Consolidated Balance Sheet as of December 31, 2020 and 2019 are as follows:

(dollars in millions)	2020		2019
Current assets	$	6,652	$	5,448
Noncurrent assets	868		894
Total assets	$	7,520	$	6,342
Current liabilities	$	7,365	$	6,971
Noncurrent liabilities	89		94
Total liabilities	$	7,454	$	7,065