Segment Financial Data

3 Months Ended

Mar. 31, 2020

Segment Reporting Disclosure [Text Block]

Note 17: Segment Financial Data

Our operations prior to the Raytheon Merger, the Separation Transactions and the Distributions are classified into four principal segments: Otis, Carrier, Pratt & Whitney, and Collins Aerospace Systems. The segments are generally based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services.

Total sales by segment include inter-segment sales, which are generally made at prices approximating those that the selling entity is able to obtain on external sales. Results for the quarters ended March 31, 2020 and 2019 are as follows:


	Net Sales						Operating Profits						Operating Profit Margins
(dollars in millions)	2020		2019		2020		2019		2020		2019
Otis	$	2,966	$	3,096	$	371	$	426	12.5	%	13.8	%
Carrier	3,888		4,323		363		529		9.3	%	12.2	%
Pratt & Whitney	5,351		4,817		439		433		8.2	%	9.0	%
Collins Aerospace Systems	6,438		6,513		1,092		856		17.0	%	13.1	%
Total segments	18,643		18,749		2,265		2,244		12.1	%	12.0	%
Eliminations and other	(433)		(384)		(343)		(101)
General corporate expenses	—		—		(115)		(98)
Consolidated	$	18,210	$	18,365	$	1,807	$	2,045	9.9	%	11.1	%

Geographic sales are attributed to the geographic regions based on their location of origin. Segment information for the quarters ended March 31, 2020 and 2019 is as follows:


	2020																		2019
(dollars in millions)	Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total		Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total
United States	$	890	$	2,008	$	4,300	$	4,790	$	11,988	$	912	$	2,214	$	3,732	$	4,730	$	11,588
Europe	942		1,179		106		918		3,145		955		1,292		108		1,024		3,379
Asia Pacific	913		518		230		165		1,826		976		612		255		189		2,032
Other*	221		183		715		565		1,684		253		205		722		570		1,750
Total segment	$	2,966	$	3,888	$	5,351	$	6,438	$	18,643	$	3,096	$	4,323	$	4,817	$	6,513	$	18,749
Eliminations and other									(433)										(384)
Consolidated									$	18,210									$	18,365

*Other includes sales to other regions as well as inter-segment sales.

Segment sales disaggregated by product type for the quarters ended March 31, 2020 and 2019 are as follows:


	2020																		2019
(dollars in millions)	Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total		Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total
Commercial and industrial, non aerospace	$	2,966	$	3,888	$	10	$	11	$	6,875	$	3,096	$	4,323	$	23	$	14	$	7,456
Commercial aerospace	—		—		3,693		4,586		8,279		—		—		3,375		4,828		8,203
Military aerospace	—		—		1,648		1,841		3,489		—		—		1,419		1,671		3,090
Total segment	$	2,966	$	3,888	$	5,351	$	6,438	$	18,643	$	3,096	$	4,323	$	4,817	$	6,513	$	18,749
Eliminations and other									(433)										(384)
Consolidated									$	18,210									$	18,365

Segment sales disaggregated by sales type for the quarters ended March 31, 2020 and 2019 are as follows:


	2020																		2019
(dollars in millions)	Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total		Otis		Carrier		Pratt & Whitney		Collins Aerospace Systems		Total
Product	$	1,123	$	3,147	$	3,257	$	5,291	$	12,818	$	1,279	$	3,566	$	2,973	$	5,406	$	13,224
Service	1,843		741		2,094		1,147		5,825		1,817		757		1,844		1,107		5,525
Total segment	$	2,966	$	3,888	$	5,351	$	6,438	$	18,643	$	3,096	$	4,323	$	4,817	$	6,513	$	18,749
Eliminations and other									(433)										(384)
Consolidated									$	18,210									$	18,365