(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit Number | Exhibit Description | ||||
99 | |||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
CARRIER GLOBAL CORPORATION | ||||||||
(Registrant) | ||||||||
Date: April 28, 2022 | By: | /S/ PATRICK GORIS | ||||||
Patrick Goris | ||||||||
Senior Vice President and Chief Financial Officer |
2022 Outlook | ||||||||
~$20B | ||||||||
Sales | Organic* up HSD | |||||||
FX ~(1%) | ||||||||
Acquisitions ~1% | ||||||||
Divestitures ~(10%) | ||||||||
Adjusted Operating Margin * | Up ~75 bps Y/Y | |||||||
Adjusted EPS * | $2.20 - $2.30 | |||||||
Free Cash Flow * | ~$1.65B | |||||||
Includes ~$200M in tax payments on Chubb gain | ||||||||
(Unaudited) | |||||||||||
For the Three Months Ended March 31, | |||||||||||
(In millions, except per share amounts) | 2022 | 2021 | |||||||||
Net sales: | |||||||||||
Product sales | $ | 4,170 | $ | 3,864 | |||||||
Service sales | 484 | 835 | |||||||||
Total Net sales | 4,654 | 4,699 | |||||||||
Costs and expenses | |||||||||||
Cost of products sold | (2,998) | (2,724) | |||||||||
Cost of services sold | (363) | (581) | |||||||||
Research and development | (125) | (121) | |||||||||
Selling, general and administrative | (601) | (743) | |||||||||
Total Costs and expenses | (4,087) | (4,169) | |||||||||
Equity method investment net earnings | 58 | 38 | |||||||||
Other income (expense), net | 1,112 | 3 | |||||||||
Operating profit | 1,737 | 571 | |||||||||
Non-service pension (expense) benefit | (1) | 18 | |||||||||
Interest (expense) income, net | (48) | (93) | |||||||||
Income from operations before income taxes | 1,688 | 496 | |||||||||
Income tax (expense) benefit | (301) | (104) | |||||||||
Net income from operations | 1,387 | 392 | |||||||||
Less: Non-controlling interest in subsidiaries' earnings from operations | 8 | 8 | |||||||||
Net income attributable to common shareowners | $ | 1,379 | $ | 384 | |||||||
Earnings per share | |||||||||||
Basic | $ | 1.62 | $ | 0.44 | |||||||
Diluted | $ | 1.58 | $ | 0.43 | |||||||
Weighted average number of shares outstanding | |||||||||||
Basic | 853.3 | 869.3 | |||||||||
Diluted | 874.1 | 889.8 |
(Unaudited) | ||||||||||||||
(In millions) | March 31, 2022 | December 31, 2021 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 3,604 | $ | 2,987 | ||||||||||
Accounts receivable, net | 2,599 | 2,403 | ||||||||||||
Contract assets, current | 655 | 503 | ||||||||||||
Inventories, net | 2,358 | 1,970 | ||||||||||||
Assets held for sale | — | 3,168 | ||||||||||||
Other assets, current | 386 | 376 | ||||||||||||
Total current assets | 9,602 | 11,407 | ||||||||||||
Future income tax benefits | 517 | 563 | ||||||||||||
Fixed assets, net | 1,825 | 1,826 | ||||||||||||
Operating lease right-of-use assets | 596 | 640 | ||||||||||||
Intangible assets, net | 488 | 509 | ||||||||||||
Goodwill | 9,288 | 9,349 | ||||||||||||
Pension and post-retirement assets | 37 | 43 | ||||||||||||
Equity method investments | 1,638 | 1,593 | ||||||||||||
Other assets | 202 | 242 | ||||||||||||
Total Assets | $ | 24,193 | $ | 26,172 | ||||||||||
Liabilities and Equity | ||||||||||||||
Accounts payable | $ | 2,519 | $ | 2,334 | ||||||||||
Accrued liabilities | 2,330 | 2,561 | ||||||||||||
Contract liabilities, current | 426 | 415 | ||||||||||||
Liabilities held for sale | — | 1,134 | ||||||||||||
Current portion of long-term debt | 256 | 183 | ||||||||||||
Total current liabilities | 5,531 | 6,627 | ||||||||||||
Long-term debt | 8,305 | 9,513 | ||||||||||||
Future pension and post-retirement obligations | 376 | 380 | ||||||||||||
Future income tax obligations | 366 | 354 | ||||||||||||
Operating lease liabilities | 491 | 527 | ||||||||||||
Other long-term liabilities | 1,694 | 1,677 | ||||||||||||
Total Liabilities | 16,763 | 19,078 | ||||||||||||
Equity | ||||||||||||||
Common stock | 9 | 9 | ||||||||||||
Treasury stock | (1,270) | (529) | ||||||||||||
Additional paid-in capital | 5,415 | 5,411 | ||||||||||||
Retained earnings | 4,244 | 2,865 | ||||||||||||
Accumulated other comprehensive loss | (1,297) | (989) | ||||||||||||
Non-controlling interest | 329 | 327 | ||||||||||||
Total Equity | 7,430 | 7,094 | ||||||||||||
Total Liabilities and Equity | $ | 24,193 | $ | 26,172 | ||||||||||
(Unaudited) | ||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||
(In millions) | 2022 | 2021 | ||||||||||||
Operating Activities | ||||||||||||||
Net income from operations | $ | 1,387 | $ | 392 | ||||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||||||||||
Depreciation and amortization | 79 | 83 | ||||||||||||
Deferred income tax provision | 48 | (2) | ||||||||||||
Stock-based compensation costs | 21 | 19 | ||||||||||||
Equity method investment net earnings | (58) | (38) | ||||||||||||
Distributions from equity method investments | 11 | 12 | ||||||||||||
(Gain) loss on extinguishment of debt | (36) | — | ||||||||||||
(Gain) loss on sale of investments | (1,112) | — | ||||||||||||
Changes in operating assets and liabilities | ||||||||||||||
Accounts receivable, net | (207) | (83) | ||||||||||||
Contract assets, current | (154) | (44) | ||||||||||||
Inventories, net | (390) | (248) | ||||||||||||
Other assets, current | (15) | (23) | ||||||||||||
Accounts payable and accrued liabilities | 132 | 151 | ||||||||||||
Contract liabilities, current | 13 | 39 | ||||||||||||
Defined benefit plan contributions | (4) | (24) | ||||||||||||
Other operating activities, net | 83 | (50) | ||||||||||||
Net cash flows provided by (used in) operating activities | (202) | 184 | ||||||||||||
Investing Activities | ||||||||||||||
Capital expenditures | (56) | (53) | ||||||||||||
Investments in businesses, net of cash acquired | (9) | (6) | ||||||||||||
Disposition of businesses | 2,935 | — | ||||||||||||
Settlement of derivative contracts, net | (32) | 8 | ||||||||||||
Other investing activities, net | (18) | 2 | ||||||||||||
Net cash flows provided by (used in) investing activities | 2,820 | (49) | ||||||||||||
Financing Activities | ||||||||||||||
Increase (decrease) in short-term borrowings, net | (33) | 28 | ||||||||||||
Issuance of long-term debt | 14 | 51 | ||||||||||||
Repayment of long-term debt | (1,123) | (570) | ||||||||||||
Repurchases of common stock | (734) | (36) | ||||||||||||
Dividends paid on common stock | (129) | (104) | ||||||||||||
Dividends paid to non-controlling interest | — | (5) | ||||||||||||
Other financing activities, net | (15) | (7) | ||||||||||||
Net cash flows provided by (used in) financing activities | (2,020) | (643) | ||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | (1) | (9) | ||||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 597 | (517) | ||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 3,025 | 3,120 | ||||||||||||
Cash, cash equivalents and restricted cash, end of period | 3,622 | 2,603 | ||||||||||||
Less: restricted cash | 18 | 4 | ||||||||||||
Cash and cash equivalents, end of period | $ | 3,604 | $ | 2,599 |
(Unaudited) | |||||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||
(In millions) | HVAC | Refrigeration | Fire & Security | Eliminations and Other | General Corporate Expenses | Carrier | |||||||||||||||||||||||||||||
Net sales | $ | 2,970 | $ | 976 | $ | 818 | $ | (110) | $ | — | $ | 4,654 | |||||||||||||||||||||||
Segment operating profit | $ | 470 | $ | 107 | $ | 1,218 | $ | (24) | $ | (34) | $ | 1,737 | |||||||||||||||||||||||
Reported operating margin | 15.8 | % | 11.0 | % | 148.9 | % | 37.3 | % | |||||||||||||||||||||||||||
Adjustments to segment operating profit: | |||||||||||||||||||||||||||||||||||
Restructuring costs | $ | 4 | $ | — | $ | 6 | $ | — | $ | — | $ | 10 | |||||||||||||||||||||||
Chubb gain | — | — | (1,112) | — | — | (1,112) | |||||||||||||||||||||||||||||
Acquisition and other related costs | — | — | — | — | 6 | 6 | |||||||||||||||||||||||||||||
Russia/Ukraine asset impairment | — | 5 | 4 | — | — | 9 | |||||||||||||||||||||||||||||
Total adjustments to operating profit | $ | 4 | $ | 5 | $ | (1,102) | $ | — | $ | 6 | $ | (1,087) | |||||||||||||||||||||||
Adjusted operating profit | $ | 474 | $ | 112 | $ | 116 | $ | (24) | $ | (28) | $ | 650 | |||||||||||||||||||||||
Adjusted operating margin | 16.0 | % | 11.5 | % | 14.2 | % | 14.0 | % |
(Unaudited) | |||||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
(In millions) | HVAC | Refrigeration | Fire & Security | Eliminations and Other | General Corporate Expenses | Carrier | |||||||||||||||||||||||||||||
Net sales | $ | 2,486 | $ | 1,005 | $ | 1,304 | $ | (96) | $ | — | $ | 4,699 | |||||||||||||||||||||||
Segment operating profit | $ | 365 | $ | 127 | $ | 150 | $ | (40) | $ | (31) | $ | 571 | |||||||||||||||||||||||
Reported operating margin | 14.7 | % | 12.6 | % | 11.5 | % | 12.2 | % | |||||||||||||||||||||||||||
Adjustments to segment operating profit: | |||||||||||||||||||||||||||||||||||
Restructuring costs | $ | 4 | $ | 2 | $ | 11 | $ | — | $ | 1 | $ | 18 | |||||||||||||||||||||||
Chubb transaction costs | — | — | 3 | — | — | 3 | |||||||||||||||||||||||||||||
Separation costs | — | — | — | 15 | 1 | 16 | |||||||||||||||||||||||||||||
Total adjustments to operating profit | $ | 4 | $ | 2 | $ | 14 | $ | 15 | $ | 2 | $ | 37 | |||||||||||||||||||||||
Adjusted operating profit | $ | 369 | $ | 129 | $ | 164 | $ | (25) | $ | (29) | $ | 608 | |||||||||||||||||||||||
Adjusted operating margin | 14.8 | % | 12.8 | % | 12.6 | % | 12.9 | % |
(Unaudited) | |||||||||||||||||
For the Three Months Ended March 31, 2022 | |||||||||||||||||
(In millions, except per share amounts) | Reported | Adjustments | Adjusted | ||||||||||||||
Net sales | $ | 4,654 | $ | — | $ | 4,654 | |||||||||||
Operating profit | $ | 1,737 | (1,087) | a | $ | 650 | |||||||||||
Operating margin | 37.3 | % | 14.0 | % | |||||||||||||
Income from operations before income taxes | $ | 1,688 | (1,115) | a,b | $ | 573 | |||||||||||
Income tax expense | $ | (301) | 209 | c | $ | (92) | |||||||||||
Income tax rate | 17.8 | % | 16.0 | % | |||||||||||||
Net income attributable to common shareowners | $ | 1,379 | $ | (906) | $ | 473 | |||||||||||
Summary of Adjustments: | |||||||||||||||||
Restructuring costs | $ | 10 | a | ||||||||||||||
Chubb (gain) loss | (1,112) | a | |||||||||||||||
Acquisition and other | 6 | a | |||||||||||||||
Russia/Ukraine asset impairment | 9 | a | |||||||||||||||
Debt extinguishment (gain), net (1) | (28) | b | |||||||||||||||
Total adjustments | $ | (1,115) | |||||||||||||||
Tax effect on adjustments above | $ | 209 | |||||||||||||||
Total tax adjustments | $ | 209 | c | ||||||||||||||
Shares outstanding - Diluted | 874.1 | 874.1 | |||||||||||||||
Earnings per share - Diluted | $ | 1.58 | $ | 0.54 |
(Unaudited) | |||||||||||||||||
For the Three Months Ended March 31, 2021 | |||||||||||||||||
(In millions, except per share amounts) | Reported | Adjustments | Adjusted | ||||||||||||||
Net sales | $ | 4,699 | $ | — | $ | 4,699 | |||||||||||
Operating profit | $ | 571 | 37 | a | $ | 608 | |||||||||||
Operating margin | 12.2 | % | 12.9 | % | |||||||||||||
Income from operations before income taxes | $ | 496 | 56 | a,b | $ | 552 | |||||||||||
Income tax expense | $ | (104) | (13) | c | $ | (117) | |||||||||||
Income tax rate | 21.0 | % | 21.1 | % | |||||||||||||
Net income attributable to common shareowners | $ | 384 | $ | 43 | $ | 427 | |||||||||||
Summary of Adjustments: | |||||||||||||||||
Restructuring costs | $ | 18 | a | ||||||||||||||
Separation costs | 16 | a | |||||||||||||||
Acquisition and other related costs | 3 | a | |||||||||||||||
Debt issuance costs | 19 | b | |||||||||||||||
Total adjustments | $ | 56 | |||||||||||||||
Tax effect on adjustments above | $ | (13) | |||||||||||||||
Total tax adjustments | $ | (13) | c | ||||||||||||||
Shares outstanding - Diluted | 889.8 | 889.8 | |||||||||||||||
Earnings per share - Diluted | $ | 0.43 | $ | 0.48 |
For the Three Months Ended March 31, 2022 Compared with the Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
Factors Contributing to Total % change in Net Sales | |||||||||||||||||||||||||||||
Organic | FX Translation | Acquisitions / Divestitures, net | Other | Total | |||||||||||||||||||||||||
HVAC | 18 | % | (2) | % | 3 | % | — | % | 19 | % | |||||||||||||||||||
Refrigeration | 1 | % | (4) | % | — | % | — | % | (3) | % | |||||||||||||||||||
Fire & Security | 4 | % | (1) | % | (40) | % | — | % | (37) | % | |||||||||||||||||||
Consolidated | 10 | % | (1) | % | (10) | % | — | % | (1) | % |
(Unaudited) | |||||||||||
For the Three Months Ended March 31, 2021 | |||||||||||
Carrier | Fire and Security | ||||||||||
Net Sales: | |||||||||||
Reported | $ | 4,699 | $ | 1,304 | |||||||
Chubb | (548) | (548) | |||||||||
Net sales excluding impact of Chubb | $ | 4,151 | $ | 756 | |||||||
Percentage increase in Net sales excluding impact of Chubb | 12 | % | 8 | % |
(Unaudited) | ||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | |||||||||||||||||||||||||||||||||
(In millions) | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 | ||||||||||||||||||||||||||||||||
Net cash flows provided by (used in) operating activities | $ | 184 | $ | 561 | $ | 579 | $ | 913 | $ | 2,237 | $ | (202) | ||||||||||||||||||||||||||
Less: Capital expenditures | 53 | 79 | 74 | 138 | 344 | 56 | ||||||||||||||||||||||||||||||||
Free cash flow | $ | 131 | $ | 482 | $ | 505 | $ | 775 | $ | 1,893 | $ | (258) |
(Unaudited) | ||||||||||||||
(In millions) | March 31, 2022 | December 31, 2021 | ||||||||||||
Long-term debt | $ | 8,305 | $ | 9,513 | ||||||||||
Current portion of long-term debt | 256 | 183 | ||||||||||||
Less: Cash and cash equivalents | 3,604 | 2,987 | ||||||||||||
Net debt | $ | 4,957 | $ | 6,709 |
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Cover Page |
Apr. 28, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Apr. 28, 2022 |
Entity Registrant Name | CARRIER GLOBAL CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-39220 |
Entity Tax Identification Number | 83-4051582 |
Entity Address, Address Line One | 13995 Pasteur Boulevard |
Entity Address, City or Town | Palm Beach Gardens |
Entity Address, State or Province | FL |
Entity Address, Postal Zip Code | 33418 |
City Area Code | (561) |
Local Phone Number | 365-2000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Amendment Flag | false |
Entity Central Index Key | 0001783180 |
Title of 12(b) Security | Common Stock ($0.01 par value) |
Trading Symbol | CARR |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
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