Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2021

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 attributable to common shareowners is as follows:

	Quarter Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2021		2020		2021		2020
Otis	$	—	$	—	$	—	$	187
Carrier	—		—		—		196
Separation related transactions (1)	(8)		9		(27)		(895)
Income (loss) from discontinued operations attributable to common shareowners	$	(8)	$	9	$	(27)	$	(512)

(1)    Reflects debt extinguishment costs in the quarter and six months ended June 30, 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 attributable to common shareowners and included in Income (loss) from discontinued operations attributable to common shareowners:

	Quarter Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2021		2020		2021		2020
Otis
Product sales	$	—	$	—	$	—	$	1,123
Service sales	—		—		—		1,843
Cost of products sold	—		—		—		913
Cost of services sold	—		—		—		1,157
Research and development	—		—		—		38
Selling, general and administrative expense	—		—		—		450
Other income (expense), net	—		—		—		(65)
Non-operating (income) expense, net	—		—		—		3
Income from discontinued operations, before tax	—		—		—		340
Income tax expense from discontinued operations	—		—		—		116
Net income from discontinued operations	—		—		—		224
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations	—		—		—		37
Income from discontinued operations attributable to common shareowners	$	—	$	—	$	—	$	187
Carrier
Product sales	$	—	$	—	$	—	$	3,144
Service sales	—		—		—		740
Cost of products sold	—		—		—		2,239
Cost of services sold	—		—		—		527
Research and development	—		—		—		98
Selling, general and administrative expense	—		—		—		669
Other income (expense), net	—		—		—		(30)
Non-operating (income) expense, net	—		—		—		17
Income from discontinued operations, before tax	—		—		—		304
Income tax expense from discontinued operations	—		—		—		102
Net income from discontinued operations	—		—		—		202
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations	—		—		—		6
Income from discontinued operations attributable to common shareowners	$	—	$	—	$	—	$	196
Separation related transactions (1)
Selling, general and administrative expense	$	10	$	13	30		$	167
Non-operating expense, net	—		43		—		709
Loss from discontinued operations, before tax	(10)		(56)		(30)		(876)
Income tax (benefit) expense from discontinued operations	(2)		(65)		(3)		19
Net income (loss) from discontinued operations	(8)		9		(27)		(895)
Total income (loss) from discontinued operations attributable to common shareowners	$	(8)	$	9	$	(27)	$	(512)

(1)    Reflects debt extinguishment costs in the quarter and six months ended June 30, 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.

Schedule of cash flows from discontinued operations

Selected financial information related to cash flows from discontinued operations is as follows:

	Six Months Ended June 30,
(dollars in millions)	2021		2020
Net cash used in operating activities	$	(24)	$	(661)
Net cash used in investing activities	—		(241)
Net cash provided by (used in) financing activities	24		(1,481)