Commercial Aerospace Industry Assets and Commitments

12 Months Ended

Dec. 31, 2022

Other Commitments [Abstract]

Commercial Aerospace Industry Assets and Commitments

NOTE 8: COMMERCIAL AEROSPACE INDUSTRY ASSETS AND COMMITMENTS

The COVID-19 pandemic continues to negatively affect the global economy, our business and operations, and the industries in which we operate. The pandemic and government, business and individual actions in response, including lockdowns, quarantines, border closings and other travel restrictions and requirements, remote working, facilities closures and reduced business and leisure travel, led to significant declines in demand for commercial air travel. The decrease in commercial air travel decreased demand for our commercial aerospace products and services of our Collins and Pratt & Whitney businesses. Refer to “Note 1: Basis of Presentation and Summary of Accounting Principles” for further details. While we have seen indications that commercial air travel is recovering, we continue to closely monitor our commercial aerospace assets for

recoverability and our off-balance sheet exposures. The following summarizes certain significant assets and off-balance sheet exposures specifically related to our commercial aerospace customers as of December 31:

(dollars in millions)	2022		2021
Assets related to commercial aerospace industry customers:
Accounts receivable, net (Note 5)	$	6,653	$	7,235
Contract assets (Note 6)	4,274		3,264
Customer financing assets (1) (Note 1)	2,700		2,945
Contract fulfillment costs (Note 1)	1,962		1,711
Guarantees and commitments related to commercial aerospace industry customers:
Commercial aerospace guarantees (net of reserves and collaboration partners’ share) (Note 17)	164		165
Commercial aerospace commitments (net of collaboration partners’ share) (Note 18)	9,364		9,659

(1)     Customer financing assets is inclusive of both the current and long term balances.

We also have goodwill and intangible assets, including exclusivity assets and collaboration assets, associated with our commercial aerospace business. Refer to “Note 2: Business Acquisitions, Dispositions, Goodwill and Intangible Assets” for further discussion.