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Discontinued Operations
 12 Months Ended
Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure
NOTE 3: DISCONTINUED OPERATIONS
As discussed above, on April 3, 2020, UTC separated into three independent, publicly traded companies – UTC, Carrier and Otis and distributed all of the outstanding common stock of Carrier and Otis to UTC shareowners who held shares of UTC common stock as of the close of business on March 19, 2020.
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. Loss from discontinued operations is as follows:
(dollars in millions)202220212020
Otis$— $— $187 
Carrier— — 196 
Separation related and other discontinued operations transactions(19)(33)(793)
Loss from discontinued operations attributable to common shareowners$(19)$(33)$(410)

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)202220212020
Otis
Products sales$— $— $1,123 
Services sales— — 1,843 
Cost of sales - products— — 913 
Cost of sales - services— — 1,157 
Research and development— — 38 
Selling, general and administrative expense— — 450 
Other income (expense), net— — (65)
Non-operating expense (income), net— — 3 
Income from discontinued operations, before income taxes— — 340 
Income tax expense— — 116 
Income from discontinued operations— — 224 
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations— — 37 
Income from discontinued operations attributable to common shareowners$— $— $187 
Carrier
Products sales$— $— $3,143 
Services sales— — 741 
Cost of sales - products— — 2,239 
Cost of sales - services— — 527 
Research and development— — 98 
Selling, general and administrative expense— — 669 
Other income (expense), net— — (30)
Non-operating expense (income), net— — 17 
Income from discontinued operations, before income taxes— — 304 
Income tax expense— — 102 
Income from discontinued operations— — 202 
Less: Noncontrolling interest in subsidiaries earnings from discontinued operations— — 6 
Income from discontinued operations attributable to common shareowners$— $— $196 
Separation related and other discontinued operations transactions(1)
Selling, general and administrative expense$— $10 $151 
Other income (expense), net(30)— (709)
Loss from discontinued operations, before income taxes(30)(10)(860)
Income tax (benefit) expense(11)23 (67)
Loss from discontinued operations, net of tax(19)(33)(793)
Total loss from discontinued operations attributable to common shareowners$(19)$(33)$(410)
(1)    Primarily 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.
Selected financial information related to cash flows from discontinued operations is as follows:
(dollars in millions)202220212020
Net cash flows used in operating activities from discontinued operations$— $(71)$(728)
Net cash flows used in investing activities from discontinued operations— — (241)
Net cash flows provided by (used in) financing activities from discontinued operations— 71 (1,414)
Net cash flows used in operating activities from discontinued operations 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 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 flows provided by (used in) financing activities from discontinued operations primarily consists of net cash transfers from Carrier and Otis to the Company, as well as debt extinguishment costs related to the early repayment of debt in 2020.
The Separation of Carrier was treated as a return on capital and recorded as a reduction to retained earnings, as it was in a net asset position, while the Separation of Otis was treated as a return of capital and recorded as an adjustment to Common stock, as it was in a net liability position.