Borrowings and Lines of Credit (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Short-Term Debt [Table Text Block]

(dollars in millions)	March 31, 2020		December 31, 2019
Commercial paper	$	500	$	—
Other borrowings	1,225		2,364
Total short-term borrowings	$	1,725	$	2,364

Schedule of Long-term Debt [Table Text Block]

Long-term debt consisted of the following:

(dollars in millions)	March 31, 2020		December 31, 2019
4.875% notes due 2020	$	—	$	171
4.500% notes due 2020	—		1,250
1.900% notes due 2020	—		1,000
EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value) 2	824		831
8.750% notes due 2021	250		250
3.100% notes due 2021 4	250		250
3.350% notes due 2021	—		1,000
LIBOR plus 0.650% floating rate notes due 2021 3	—		750
1.950% notes due 2021	—		750
1.125% notes due 2021 (€950 million principal value)	—		1,053
2.300% notes due 2022	—		500
2.800% notes due 2022 4	1,100		1,100
3.100% notes due 2022	—		2,300
1.923% notes due 2023 6	500		—
LIBOR plus 1.125% Term Loan due 2023 (Otis) 6	1,000		—
LIBOR plus 0.45% floating rates due 2023 6	500		—
1.250% notes due 2023 (€750 million principal value)	—		831
LIBOR plus 1.125% Term Loan due 2023 (Carrier) 6	1,750		—

3.650% notes due 2023 1	581		2,250
3.700% notes due 2023 4	400		400
2.800% notes due 2024	—		800
3.200% notes due 2024 4	950		950
1.150% notes due 2024 (€750 million principal value)	—		831
2.056% notes due 2025 6	1,300		—
2.242% notes due 2025 6	2,000		—
3.950% notes due 2025 1	1,500		1,500
1.875% notes due 2026 (€500 million principal value)	—		554
2.650% notes due 2026 1	719		1,150
2.293% notes due 2027 6	500		—
2.493% notes due 2027 6	1,250		—
3.125% notes due 2027 1	1,100		1,100
3.500% notes due 2027 4	1,300		1,300
7.100% notes due 2027	141		141
6.700% notes due 2028	400		400
4.125% notes due 2028 1	3,000		3,000
7.500% notes due 2029 1	550		550
2.150% notes due 2030 (€500 million principal value) 1	549		554
2.565% notes due 2030 6	1,500		—
2.722% notes due 2030 6	2,000		—
5.400% notes due 2035 1	600		600
6.050% notes due 2036 1	600		600
6.800% notes due 2036 1	134		134
7.000% notes due 2038	159		159
6.125% notes due 2038 1	1,000		1,000
4.450% notes due 2038 1	750		750
3.112% notes due 2040 6	750		—
3.377% notes due 2040 6	1,500		—
5.700% notes due 2040 1	1,000		1,000
4.500% notes due 2042 1	3,500		3,500
4.800% notes due 2043 4	400		400
4.150% notes due 2045 1	850		850
3.750% notes due 2046 1	1,100		1,100
4.050% notes due 2047 1	600		600
4.350% notes due 2047 4	1,000		1,000
4.625% notes due 2048 1	1,750		1,750
3.362% notes due 2050 6	750		—
3.577% notes due 2050 6	2,000
Project financing obligations 5	316		309
Other (including finance leases)	268		331
Total principal long-term debt	44,941		41,599
Other (fair market value adjustments, discounts and debt issuance costs)	(347)		(315)
Total long-term debt	44,594		41,284
Less: current portion	1,362		3,496
Long-term debt, net of current portion	$	43,232	$	37,788

1 We may redeem these notes at our option pursuant to their terms.

2 The three-month EURIBOR rate as of March 31, 2020 was approximately -0.363%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation.

3 The three-month LIBOR rate as of March 31, 2020 was approximately 1.4505%.

4 Rockwell Collins debt which remained outstanding following the Rockwell Acquisition.

5 Project financing obligations are associated with the sale of rights to unbilled revenues related to the ongoing activity of an entity owned by Carrier.

6  The debt issuances reflect additional debt incurred by Otis and Carrier and attributed to those businesses post Separation Transactions. The net proceeds of these issuances were primarily utilized to extinguish Raytheon Technologies short-term and long-term debt in order to achieve the applicable net indebtedness required by the merger agreement with Raytheon.

We had no long-term debt issuances in 2019 and had the following issuances of debt during the quarter ended March 31, 2020:

(dollars in millions)
Issuance Date	Description of Notes	Aggregate Principal Balance
February 27, 2020	1.923% notes due 2023 1	$	500
	Libor plus 0.450% floating rate notes due 2023 1	500
	2.056% notes due 2025 1	1,300
	2.242% notes due 2025 1	2,000
	2.293% notes due 2027 1	500
	2.493% notes due 2027 1	1,250
	2.565% notes due 2030 1	1,500
	2.722% notes due 2030 1	2,000
	3.112% notes due 2040 1	750
	3.377% notes due 2040 1	1,500
	3.362% notes due 2050 1	750
	3.577% notes due 2050 1	2,000
March 27, 2020	Term Loan due 2023 (Otis) 1	1,000
	Term Loan due 2023 (Carrier) 1	1,750
		$	17,300

1 The debt issuances and term loan draws reflect additional debt incurred by Otis and Carrier and attributed to those businesses post Separation Transactions. The net proceeds of these issuances were primarily utilized to extinguish Raytheon Technologies short term and long term debt in order to achieve the applicable net indebtedness required by the merger agreement with Raytheon.

We had the following repayments of long-term debt during the quarter ended March 31, 2020 and the year-ended December 31, 2019:

(dollars in millions)
Repayment Date	Description of Notes	Aggregate Principal Balance
March 29, 2020	4.500% notes due 2020 2,3	$	1,250
	1.125% notes due 2021 (€950 million principal value) 2,3	1,082
	1.250% notes due 2023 (€750 million principal value) 2,3	836
	1.150% notes due 2024 (€750 million principal value) 2,3	841
	1.875% notes due 2026 (€500 million principal value) 2,3	567
March 3, 2020	1.900% notes due 2020 2,3	1,000
	3.350% notes due 2021 2,3	1,000
	LIBOR plus 0.650% floating rate notes due 2021 2,3	750
	1.950% notes due 2021 2,3	750
	2.300% notes due 2022 2,3	500
	3.100% notes due 2022 2,3	2,300
	2.800% notes due 2024 2,3	800
March 2, 2020	4.875% notes due 2020 2,3	171
February 28, 2020	3.650% notes due 2023 2,3	1,669
	2.650% notes due 2026 2,3	431
		$	13,947
November 15, 2019	8.875% notes due 2019	$	271
November 13, 2019	EURIBOR plus 0.15% floating rate notes due 2019	831
November 1, 2019	LIBOR plus 0.350% floating rate notes due 2019	350
	1.500% notes due 2019	650
July 15, 2019	1.950% notes due 2019 1	300
	5.250% notes due 2019 1	300
		$	2,702

1 The notes and term loan were acquired in connection with the Rockwell Collins acquisition and have been subsequently repaid.

2 Extinguishment of Raytheon Technologies short term and long term debt in order to achieve the net indebtedness required by the merger agreement with Raytheon.

3 In connection with the early repayment of outstanding principal, Raytheon Technologies paid approximately $660 million of debt extinguishment costs.

Schedule of Weighted average interest rates [Table Text Block]

The average interest expense rate on our total borrowings for the quarters ended March 31, 2020 and 2019 was as follows:

	Quarter Ended March 31,
	2020		2019
Average interest expense rate	3.6	%	3.6	%