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Discontinued Operations
 9 Months Ended
Sep. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure Discontinued Operations
As discussed above, the Separation Transactions and Distributions were completed on April 3, 2020 resulting in, among other things, UTC (since renamed Raytheon Technologies Corporation), being separated into three independent, publicly traded companies – UTC, Carrier and Otis.
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 September 30,Nine Months Ended September 30,
(dollars in millions)2021202020212020
Otis$— $— $— $187 
Carrier— — — 196 
Separation related transactions (1)
(7)113 (34)(782)
Income (loss) from discontinued operations attributable to common shareowners$(7)$113 $(34)$(399)
(1)    Reflects debt extinguishment costs in the nine months ended September 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 (loss) from continuing operations attributable to common shareowners and included in Income (loss) from discontinued operations attributable to common shareowners:
Quarter Ended September 30,Nine Months Ended September 30,
(dollars in millions)2021202020212020
Otis
Products sales$— $— $— $1,123 
Services sales— — — 1,843 
Cost of products sold— — — 913 
Cost of services sold— — — 1,157 
Research and development— — — 38 
Selling, general and administrative expense— — — 450 
Other income (expense), net— — — (65)
Non-operating expense (income), net— — — 3 
Income from discontinued operations, before tax— — — 340 
Income tax expense from discontinued operations— — — 116 
Net income from discontinued operations— — — 224 
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations— — — 37 
Income from discontinued operations attributable to common shareowners$— $— $— $187 
Carrier
Products sales$— $— $— $3,143 
Services sales— — — 741 
Cost of products sold— — — 2,239 
Cost of services sold— — — 527 
Research and development— — — 98 
Selling, general and administrative expense— — — 669 
Other income (expense), net— — — (30)
Non-operating expense (income), net— — — 17 
Income from discontinued operations, before tax— — — 304 
Income tax expense from discontinued operations— — — 102 
Net income from discontinued operations— — — 202 
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations— — — 6 
Income from discontinued operations attributable to common shareowners$— $— $— $196 
Separation related transactions (1)
Selling, general and administrative expense$1 $(13)31 $154 
Non-operating expense, net— — — 709 
Income (loss) from discontinued operations, before tax(1)13 (31)(863)
Income tax expense (benefit) from discontinued operations6 (100)3 (81)
Net income (loss) from discontinued operations(7)113 (34)(782)
Total income (loss) from discontinued operations attributable to common shareowners$(7)$113 $(34)$(399)
(1)    Reflects debt extinguishment costs in the nine months ended September 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.
Selected financial information related to cash flows from discontinued operations is as follows:
Nine Months Ended September 30,
(dollars in millions)20212020
Net cash used in operating activities$(27)$(693)
Net cash used in investing activities— (241)
Net cash provided by (used in) financing activities27 (1,449)
Net cash used in operating activities for the nine months ended September 30, 2020 includes the net operating cash flows of Carrier and Otis prior to the Separation Transactions, as well as 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 related to separation activities. Net cash used in financing activities for the nine months ended September 30, 2020 primarily consists of cash distributed by the Company to Carrier and Otis upon separation and debt extinguishment costs related to the early repayment of debt.