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Discontinued Operations and Disposal Groups (Tables)
 12 Months Ended
Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of income (loss) from discontinued operations
Carrier and Otis are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Income (loss) from discontinued operations is as follows:
Year Ended December 31
(dollars in millions)202020192018
Otis$187 $1,033 $1,213 
Carrier196 1,698 2,840 
Separation related transactions (1)
(793)(704)— 
Income (loss) from discontinued operations $(410)$2,027 $4,053 
(1)    Reflects debt extinguishment costs in 2020 related to the Company’s paydown of debt to not exceed the maximum applicable net indebtedness under the Raytheon Merger Agreement, and unallocable transaction costs incurred by the Company primarily related to professional services costs pertaining to the Separation Transactions and the establishment of Carrier and Otis as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges and benefits related to separation activities.
The following summarized financial information related to discontinued operations has been reclassified from Income from continuing operations and included in Income (loss) from discontinued operations:
Year Ended December 31
(dollars in millions)202020192018
Otis
Product sales$1,123 $5,669 $5,636 
Service sales1,843 7,444 7,268 
Cost of products sold913 4,656 4,624 
Cost of services sold1,157 4,635 4,568 
Research and development38 163 185 
Selling, general and administrative expense450 1,906 1,636 
Other income (expense), net(65)(40)26 
Non-operating (income) expense, net3 4 (18)
Income from discontinued operations, before income taxes340 1,709 1,935 
Income tax expense116 525 561 
Income from discontinued operations224 1,184 1,374 
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations37 151 161 
Income from discontinued operations attributable to common shareowners$187 $1,033 $1,213 
Carrier
Product sales$3,143 $15,337 $15,657 
Service sales741 3,247 3,239 
Cost of products sold2,239 10,878 11,047 
Cost of services sold527 2,298 2,281 
Research and development98 400 399 
Selling, general and administrative expense669 2,888 2,566 
Other income (expense), net(30)246 1,156 
Non-operating (income) expense, net17 (43)(82)
Income from discontinued operations, before income taxes304 2,409 3,841 
Income tax expense102 672 967 
Income from discontinued operations202 1,737 2,874 
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations6 39 34 
Income from discontinued operations attributable to common shareowners$196 $1,698 $2,840 
Separation related transactions (1)
Selling, general and administrative expense$151 $16 $— 
Other income (expense), net(709)(11)— 
Loss from discontinued operations, before income taxes(860)(27)— 
Income tax (benefit) expense(67)677 — 
Loss from discontinued operations, net of tax(793)(704)— 
Total income (loss) from discontinued operations attributable to common shareowners$(410)$2,027 $4,053 
(1)    Reflects debt extinguishment costs related to the Company’s paydown of debt to not exceed the maximum applicable net indebtedness under the Raytheon Merger Agreement, and unallocable transaction costs incurred by the Company primarily related to professional services costs pertaining to the Separation Transactions and the establishment of Carrier and Otis as stand-alone public companies, facility relocation costs, costs to separate information systems, costs of retention bonuses and tax charges and benefits related to separation activities.
Schedule of cash flows from discontinued operations
Selected financial information related to cash flows from discontinued operations is as follows:
Year Ended December 31
(dollars in millions)202020192018
Net cash (used in) provided by operating activities$(728)$3,062 $3,652 
Net cash (used in) provided by investing activities(241)(416)286 
Net cash used in financing activities(1,414)(2,651)(4,244)
Major components of assets and liabilities related to discontinued operations
The major components of assets and liabilities related to discontinued operations at December 31, 2019 are provided below:
(dollars in millions)OtisCarrierTotal
Assets
Cash and cash equivalents$1,446 $995 $2,441 
Accounts receivable, net2,899 2,728 5,627 
Contract assets, current530 679 1,209 
Inventories and contracts in progress, net571 1,332 1,903 
Other assets, current213 221 434 
Fixed assets, net747 1,686 2,433 
Operating lease right-of-use assets529 818 1,347 
Goodwill1,647 9,807 11,454 
Intangible assets, net490 1,083 1,573 
Other assets575 2,827 3,402 
Total assets related to discontinued operations$9,647 $22,176 $31,823 
Liabilities and Redeemable Noncontrolling Interest
Short-term borrowings$33 $38 $71 
Accounts payable1,321 1,682 3,003 
Accrued employee compensation516 506 1,022 
Other accrued liabilities1,135 2,383 3,518 
Contract liabilities, current2,288 611 2,899 
Long-term debt, currently due1 237 238 
Long-term debt5 82 87 
Future pension and postretirement benefit obligations560 455 1,015 
Operating lease liabilities383 668 1,051 
Other long-term liabilities (1)
514 1,025 1,539 
Total liabilities related to discontinued operations$6,756 $7,687 $14,443