Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 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 is as follows:

(dollars in millions)	2021		2020		2019
Otis	$	—	$	187	$	1,033
Carrier	—		196		1,698
Separation related and other discontinued operations transactions	(33)		(793)		(704)
Income (loss) from discontinued operations attributable to common shareowners	$	(33)	$	(410)	$	2,027

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:

(dollars in millions)	2021		2020		2019
Otis
Products sales	$	—	$	1,123	$	5,669
Services sales	—		1,843		7,444
Cost of sales - products	—		913		4,656
Cost of sales - services	—		1,157		4,635
Research and development	—		38		163
Selling, general and administrative expense	—		450		1,906
Other income (expense), net	—		(65)		(40)
Non-operating expense (income), net	—		3		4
Income from discontinued operations, before income taxes	—		340		1,709
Income tax expense	—		116		525
Income from discontinued operations	—		224		1,184
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations	—		37		151
Income from discontinued operations attributable to common shareowners	$	—	$	187	$	1,033
Carrier
Products sales	$	—	$	3,143	$	15,337
Services sales	—		741		3,247
Cost of sales - products	—		2,239		10,878
Cost of sales - services	—		527		2,298
Research and development	—		98		400
Selling, general and administrative expense	—		669		2,888
Other income (expense), net	—		(30)		246
Non-operating expense (income), net	—		17		(43)
Income from discontinued operations, before income taxes	—		304		2,409
Income tax expense	—		102		672
Income from discontinued operations	—		202		1,737
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations	—		6		39
Income from discontinued operations attributable to common shareowners	$	—	$	196	$	1,698
Separation related and other discontinued operations transactions(1)
Selling, general and administrative expense	$	10	$	151	$	16
Other income (expense), net	—		(709)		(11)
Loss from discontinued operations, before income taxes	(10)		(860)		(27)
Income tax (benefit) expense	23		(67)		677

Loss from discontinued operations, net of tax	(33)		(793)		(704)
Total income (loss) from discontinued operations attributable to common shareowners	$	(33)	$	(410)	$	2,027

(1)    Reflects 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. In addition, 2020 includes debt extinguishment costs related to the Company’s paydown of debt to not exceed the maximum applicable net indebtedness under the Raytheon Merger Agreement.

Schedule of cash flows from discontinued operations

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

(dollars in millions)	2021		2020		2019
Net cash (used in) provided by operating activities	$	(71)	$	(728)	$	3,062
Net cash used in investing activities	—		(241)		(416)
Net cash provided by (used in) financing activities	71		(1,414)		(2,651)