item 14 exhibits financial statement schedules reports form 8k page annual report 1 financial statements incorporated reference 1993 annual report shareowners report independent accountants 36 consolidated statement operations three years ended december 37 31 1993 consolidated balance sheetdecember 31 1993 1992 38 consolidated statement cash flows three years ended december 39 31 1993 consolidated statement changes shareowners equity three 40 years ended december 31 1993 notes financial statements 41 consolidated summary business segment financial data 51 selected quarterly financial data 55 unaudited page form 10k 2 financial statement schedules three years ended december 31 1993 report independent accountants financial statement schedules s1 v property plant equipment s2 vi accumulated depreciation amortization property plant s3 equipment viii valuation qualifying accounts s4 ix shortterm borrowings s5 x supplementary income statement s6 information consent independent accountants schedules omitted applicable required information shown financial statements notes thereto 3 exhibits 3 restated certificate incorporation incorporated reference exhibit 3i form 10k year ended december 31 1992 ii bylaws 4 accordance item 601 regulation sk securities exchange commission corporation hereby agrees furnish upon request commission copy instrument defining rights holders longterm debt corporation consolidated subsidiaries unconsolidated subsidiaries financial statements otherwise would required filed annual report form 10k year ended december 31 page 10 united technologies corporation 1979 long term incentive plan incorporated reference exhibit 10i form 10k year ended december 31 1992 ii united technologies corporation annual executive incentive compensation plan incorporated reference exhibit 10ii form 10k year ended december 31 1992 iii united technologies corporation disability insurance benefits executive control group incorporated reference exhibit 10iii form 10k year ended december 31 1992 iv united technologies corporation executive estate preservation program incorporated reference exhibit 10iv form 10k year ended december 31 1992 v pension preservation plan incorporated reference exhibit 10v form 10k year ended december 31 1992 vi senior executive severance plan incorporated reference exhibit 10vi form 10k year ended december 31 1992 vii united technologies corporation deferred compensation plan incorporated reference exhibit 10vii form 10k year ended december 31 1992 viii otis elevator company incentive compensation plan incorporated reference exhibit 10viii form 10k year ended december 31 1992 ix directors retirement plan incorporated reference exhibit 10ix form 10k year ended december 31 1992 x united technologies corporation deferred compensation plan nonemployee directors incorporated reference exhibit 10x form 10k year ended december 31 1992 xi united technologies corporation long term incentive plan incorporated reference exhibit 10xi form 10k year ended december 31 1992 xii united technologies corporation executive disability income protection standard separation agreement plan incorporated reference exhibit 10xii form 10k year ended december 31 1992 xiii united technologies corporation directors restricted stockunit program incorporated reference exhibit 10xiii form 10k year ended december 31 1992 xiv united technologies corporation directors stock deferred stock unit retainer program xv united technologies corporation pension replacement plan 11 statement computation per share earnings 12 computation ratio earnings fixed charges 13 annual report shareowners year ended december 31 1993 except pages information thereof expressly incorporated reference form 10k annual report shareowners provided solely information securities exchange commission deemed filed part form 10k 22 subsidiaries registrant 25 powers attorney howard h baker jr antonia handler chayes robert f daniell robert f dee charles w duncan jr pehr g gyllenhammar gerald hines charles r lee robert h malott jacqueline g wexler b report form 8k filed registrant january 19 1994 response item 5 item 7 page signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation stephen f page date march 31 1994 stephen f page executive vice president chief financial officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth signature title robert f daniell chairman chief executive robert f daniell officer director george david president chief operating george david officer director george e minnich vice president controller george e minnich principal accounting officer stephen f page executive vice president stephen f page chief financial officer howard h baker jr director howard h baker jr antonia handler chayes director antonia handler chayes robert f dee director robert f dee charles w duncan jr director charles w duncan jr pehr g gyllenhammar director pehr g gyllenhammar gerald hines director gerald hines charles r lee director charles r lee robert h malott director robert h malott jacqueline g wexler director jacqueline g wexler william h trachsel william h trachsel attorneyinfact page report independent accountants financial statement schedules board directors united technologies corporation audits consolidated financial statements referred report dated january 26 1994 appearing page 36 1993 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedules listed item 14a2 form 10k opinion financial statement schedules present fairly material respects information set forth therein read conjunction related consolidated financial statements price waterhouse hartford connecticut january 26 1994 s1 page s2page s3page schedule viii united technologies corporation subsidiaries schedule viii valuation qualifying accounts reserves three years ended december 31 1993 millions dollars certain 1992 1991 amounts restated conform 1993 presentation s4page s5page schedule x united technologies corporation subsidiaries schedule x supplementary income statement information three years ended december 31 1993 millions dollars maintenance repairs 1993 242 1992 291 1991 284 s6page consent independent accountants hereby consent incorporation reference prospectuses constituting part registration statements form s3 nos 3346916 33 40163 3334320 3331514 3329687 336452 form s8 nos 3345440 3311255 3326580 3326627 3328974 3351385 287322 united technologies corporation report dated january 26 1994 appearing page 36 1993 annual report shareowners incorporated reference annual report form 10k also consent incorporation reference report financial statement schedules appears page s1 form 10k price waterhouse hartford connecticut march 29 1994 page securities exchange commission washington dc 20549 exhibits filed form 10 k annual report fiscal year ended december 31 1993 securities exchange act 1934 united technologies corporation page index exhibits exhibit 3i restated certificate incorporation exhibit 3ii bylaws exhibit 10i united technologies corporation 1979 long term incentive plan exhibit 10ii united technologies corporation annual executive incentive compensation plan exhibit 10iii united technologies corporation disability insurance benefits executive control group exhibit 10iv united technologies corporation executive estate preservation program exhibit 10v pension preservation plan exhibit 10vi senior executive severance plan exhibit 10vii united technologies corporation deferred compensation plan exhibit otis elevator company incentive 10viii compensation plan exhibit 10ix directors retirement plan exhibit 10x united technologies corporation deferred compensation plan nonemployee directors exhibit 10xi united technologies corporation long term incentive plan exhibit 10xii united technologies corporation executive disability income protection plan standard separation agreement exhibit united technologies corporation 10xiii directors restricted stockunit program exhibit 10xiv united technologies corporation directors stock deferred stock unit retainer program incorporated reference see item 14 page exhibit 10xv united technologies corporation pension replacement plan exhibit 11 statement computation per share earnings exhibit 12 computation ratio earnings fixed charges exhibit 13 annual report shareowners year ended december 31 1993 exhibit 22 subsidiaries registrant exhibit 25 powers attorney howard h baker jr antonia handler chayes robert f daniell robert f dee charles w duncan jr pehr g gyllenhammar gerald hines charles r lee robert h malott jacqueline g wexler page pageitem 14 exhibits financial statement schedules reports form 8k page annual report 1 financial statements incorporated reference 1994 annual report shareowners report independent accountants 26 consolidated statement operations three years ended december 27 31 1994 consolidated balance sheetdecember 28 31 1994 1993 consolidated statement cash flows three years ended december 29 31 1994 consolidated statement changes shareowners equity three 30 years ended december 31 1994 notes financial statements 31 consolidated summary business 42 segment financial data selected quarterly financial data 46 unaudited page form 10k 2 financial statement schedule three years ended december 31 1994 report independent accountants financial statement schedule s1 viii valuation qualifying accounts s2 consent independent accountants schedules omitted applicable required information shown financial statements notes thereto a3 exhibits 3 restated certificate incorporation ii bylaws 4 accordance item 601 regulation sk securities exchange commission corporation hereby agrees furnish upon request commission copy instrument defining rights holders longterm debt corporation consolidated subsidiaries unconsolidated subsidiaries financial statements otherwise would required filed annual report form 10k year ended december 31 19 page 10 united technologies corporation 1979 long term incentive plan ii united technologies corporation annual executive incentive compensation plan iii united technologies corporation disability insurance benefits executive control group iv united technologies corporation executive estate preservation program v pension preservation plan vi senior executive severance plan vii united technologies corporation deferred compensation plan viii otis elevator company incentive compensation plan ix directors retirement plan x united technologies corporation deferred compensation plan nonemployee directors xi united technologies corporation long term incentive plan xii united technologies corporation executive disability income protection standard separation agreement plan xiii united technologies corporation directors restricted stockunit program xiv united technologies corporation directors stock deferred stock unit retainer program ii xv united technologies corporation pension replacement plan ii 11 statement computation per share earnings 12 computation ratio earnings fixed charges 13 annual report shareowners year ended december 31 1994 except pages information thereof expressly incorporated reference form 10k annual report shareowners provided solely information securities exchange commission deemed filed part form 10k 21 subsidiaries registrant 24 powers attorney howard h baker jr antonia handler chayes robert f daniell robert f dee charles w duncan jr pehr g gyllenhammar gerald hines charles r lee robert h malott harold wagner jacqueline g wexler 27 financial data schedule notes exhibits submitted electronically herewith incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 ii incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1993 b report form 8k filed registrant january 19 1994 response item 5 item 7 20 page signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant stephen f page stephen f page executive vice president chief financial officer date march 29 1995 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth signature title date george david president chief march 29 1995 george david executive officer director george e minnich vice president controller george e minnich principal accounting officer stephen f page executive vice president stephen f page chief financial officer robert f daniell chairman director robert f daniell howard h baker jr director howard h baker jr antonia handler chayes director antonia handler chayes robert f dee director robert f dee charles w duncan jr director charles w duncan jr pehr g gyllenhammar director swilliam h trachsel pehr g gyllenhammar william h trachsel attorneyinfact gerald hines director date march 29 1995 gerald hines charles r lee director charles r lee robert h malott director robert h malott harold wagner director harold wagner jacqueline g wexler director jacqueline g wexler 21 page report independent accountants financial statement schedule board directors united technologies corporation audits consolidated financial statements referred report dated january 26 1995 appearing page 26 1994 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements price waterhouse llp hartford connecticut january 26 1995 s1 page s2 page consent independent accountants hereby consent incorporation reference prospectuses constituting part registration statements form s3 nos 3346916 33 40163 3334320 3331514 3329687 336452 form s8 nos 3357769 3345440 3311255 3326580 3326627 3328974 3351385 287322 united technologies corporation report dated january 26 1995 appearing page 26 1994 annual report shareowners incorporated reference annual report form 10k also consent incorporation reference report financial statement schedule appears page s1 form 10k price waterhouse llp hartford connecticut march 29 1995 pageitem 14 exhibits financial statement schedules reports form 8k page annual report financial statements financial statement schedules exhibits 1 financial statements incorporated reference 1995 annual report shareowners report independent accountants 28 consolidated statement operations three years 29 ended december 31 1995 consolidated balance sheetdecember 31 30 1995 1994 consolidated statement cash flows three years 31 ended december 31 1995 notes consolidated financial 32 statements selected quarterly financial data 46 unaudited page form 10k 2 financial statement schedule three years ended december 31 1995 report independent accountants s1 financial statement schedule ii valuation qualifying accounts s2 consent independent accountants schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings exhibit number 31 restated certificate incorporation 32 bylaws 4 corporation hereby agrees furnish upon request commission copy instrument defining rights holders longterm debt corporation consolidated subsidiaries unconsolidated subsidiaries 101 united technologies corporation 1979 long term incentive plan 102 united technologies corporation annual executive incentive compensation plan amended 103 united technologies corporation disability insurance benefits executive control group 104 united technologies corporation executive estate preservation program 105 united technologies corporation pension preservation plan 106 united technologies corporation senior executive severance plan 12 exhibit number 107 united technologies corporation deferred compensation plan amended 108 otis elevator company incentive compensation plan 109 united technologies corporation directors retirement plan amended 1010 united technologies corporation deferred compensation plan nonemployee directors 1011 united technologies corporation long term incentive plan amended 1012 united technologies corporation executive disability income protection standard separation agreement plan 1013 united technologies corporation directors restricted stockunit program 1014 united technologies corporation board directors deferred stock unit plan 1015 united technologies corporation pension replacement plan 1016 united technologies corporation special retention stock appreciation program 1017 united technologies corporation nonemployee director stock option plan 11 statement computation per share earnings 12 computation ratio earnings fixed charges 13 annual report shareowners year ended december 31 1995 except pages information thereof expressly incorporated reference form 10k annual report shareowners provided solely information securities exchange commission deemed filed part form 10k 21 subsidiaries registrant 24 powers attorney howard h baker jr antonia handler chayes robert f daniell robert f dee charles w duncan jr pehr g gyllenhammar gerald hines charles r lee robert h malott harold wagner jacqueline g wexler 27 financial data schedule notes exhibits submitted electronically herewith incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1994 incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1993 incorporated reference exhibit number united technologies corporation form 10q commission file number 1812 quarter ended september 30 1995 b reports form 8k filed registrant fourth quarter 1995 13 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant stephen f page date march 28 1996 executive vice president chief financial officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth signature title date george david president chief george david executive officer march 28 1996 director george e minnich vice president march 28 1996 george e minnich controller principal accounting officer stephen f page executive vice march 28 1996 stephen f page president chief financial officer robert f daniell chairman director robert f daniell howard h baker jr director howard h baker jr antonia handler chayes director antonia handler chayes robert f dee director robert f dee charles w duncan jr director charles w duncan jr pehr g gyllenhammar director byswilliam h trachsel pehr g gyllenhammar william h trachsel attorneyin fact date march 28 1996 gerald hines director gerald hines charles r lee director charles r lee robert h malott director robert h malott harold wagner director harold wagner jacqueline g wexler director jacqueline g wexler 14 report independent accountants financial statement schedule board directors united technologies corporation audits consolidated financial statements referred report dated january 24 1996 appearing page 28 1995 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements price waterhouse llp hartford connecticut january 24 1996 s1 consent independent accountants hereby consent incorporation reference prospectus constituting part registration statements form s3 nos 3346916 3340163 3334320 3331514 3329687 336452 registration statements form s8 nos 3357769 3345440 3311255 3326580 3326627 3328974 3351385 3358937 287322 united technologies corporation report dated january 24 1996 appearing page 28 1995 annual report shareowners incorporated reference annual report form 10k also consent incorporation reference report financial statement schedule appears page s1 form 10k price waterhouse llp hartford connecticut march 28 1996item 14 exhibits financial statement schedules reports form 8k page number financial statements financial statement annual schedules exhibits report 1 financial statements incorporated reference 1997 annual report shareowners report independent accountants 28 consolidated statement operations three years ended december 31 1997 29 consolidated balance sheetdecember 31 30 1997 1996 consolidated statement cash flows 31 three years ended december 31 1997 consolidated statement changes 32 shareowners equity notes consolidated financial statements 33 selected quarterly financial data 43 unaudited page number form 10k 2 financial statement schedule three years ended december 31 1997 report independent accountants si financial statement schedule ii valuation qualifying sii accounts consent independent accountants schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings exhibit number 31 restated certificate incorporation incorporated reference exhibit 3i united technologies corporation quarterly report form 10q commission file number 1812 quarterly period ended june 30 1997 32 bylaws incorporated reference exhibit 32 united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1994 4 corporation hereby agrees furnish upon request commission copy instrument defining rights holders long term debt corporation consolidated subsidiaries unconsolidated subsidiaries 101 united technologies corporation 1979 long term incentive plan incorporated reference exhibit 10i united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 102 united technologies corporation annual executive incentive compensation plan amended 103 united technologies corporation disability insurance benefits executive control group incorporated reference exhibit 10 iii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 104 united technologies corporation executive estate preservation program incorporated reference exhibit 10iv united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 105 united technologies corporation pension preservation plan incorporated reference exhibit 10v united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 106 united technologies corporation senior executive severance plan incorporated reference exhibit 10vi united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 107 united technologies corporation deferred compensation plan amended 108 otis elevator company incentive compensation plan incorporated reference exhibit 10viii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 109 united technologies corporation directors retirement plan amended 1010 united technologies corporation deferred compensation plan nonemployee directors incorporated reference exhibit 10x united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 1011 united technologies corporation long term incentive plan amended exhibit number 1012 united technologies corporation executive disability income protection standard separation agreement plan incorporated reference exhibit 10xii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 1013 united technologies corporation directors restricted stockunit program incorporated reference exhibit 10xiii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 1014 united technologies corporation board directors deferred stock unit plan 1015 united technologies corporation pension replacement plan incorporated reference exhibit 10xv united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1993 1016 united technologies corporation special retention stock appreciation program incorporated reference exhibit 10xvi united technologies corporation report form 10q commission file number 1812 quarterly period ended september 30 1995 1017 united technologies corporation nonemployee director stock option plan 11 statement computation per share earnings 12 statement computation ratio earnings fixed charges 13 annual report shareowners year ended december 31 1997 except pages information thereof expressly incorporated reference form 10k annual report shareowners provided solely information securities exchange commission deemed filed part form 10k 21 subsidiaries registrant 23 consent price waterhouse included page form 10k 24 powers attorney howard h baker jr antonia handler chayes charles w duncan jr jeanpierre garnier pehr g gyllenhammar karl j krapek charles r lee robert h malott william j perry frank p popoff andre villeneuve harold wagner jacqueline g wexler 27 financial data schedule 271 restated prior periods financial data schedule 272 restated prior periods financial data schedule notes exhibits list incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1995 submitted electronically herewith b reports form 8k filed registrant fourth quarter 1997 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant jay l haberland jay l haberland acting chief financial officer date february 16 1998 vice president controller pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth signature title date george david chairman director february 16 1998 george david president chief executive officer jay l haberland acting chief financial february 16 1998 jay l haberland officer vice president controller howard h baker jr director howard h baker jr antonia handler chayes director antonia handler chayes charles w duncan jr director charles w duncan jr jeanpierre garnier director jeanpierre garnier pehr g gyllenhammar director bys william h trachsel pehr g gyllenhammar william h trachsel attorneyin fact date february 16 1998 karl j krapek director karl j krapek charles r lee director charles r lee robert h malott director robert h malott signature title date william j perry director william j perry frank p popoff director william h trachsel frank p popoff william h trachsel attorneyin fact date february 16 1998 andre villeneuve director andre villeneuve harold wagner director harold wagner jacqueline g wexler director jacqueline g wexler si schedule report independent accountants financial statement schedule board directors united technologies corporation audits consolidated financial statements referred report dated january 22 1998 appearing page 28 1997 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements price waterhouse llp price waterhouse llp hartford connecticut january 22 1998 sii consent independent accountants hereby consent incorporation reference prospectus constituting part registration statements form s3 nos 333 26331 3346916 3340163 3334320 3331514 3329687 336452 registration statements form s8 nos 33321853 33318743 333 21851 3357769 3345440 3311255 3326580 3326627 3328974 3351385 3358937 287322 united technologies corporation report dated january 22 1998 appearing page 28 1997 annual report shareowners incorporated reference annual report form 10k also consent incorporation reference report financial statement schedule appears page si form 10k price waterhouse llp price waterhouse llp hartford connecticut february 16 1998item 14 exhibits financial statement schedules reports form 8k page number financial statements financial statement annual schedules exhibits report 1 financial statements incorporated reference 1998 annual report shareowners report independent accountants 10 consolidated statement operations three years ended december 31 1998 11 consolidated balance sheetdecember 31 1998 1997 12 consolidated statement cash flows three years ended december 31 1998 13 consolidated statement changes shareowners equity three years ended december 31 1998 14 notes consolidated financial statements 15 selected quarterly financial data unaudited 25 page number form 10k 2 financial statement schedule three years ended december 31 1998 report independent accountants si financial statement schedule ii valuation qualifying sii accounts consent independent accountants schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings exhibit number 3i restated certificate incorporation incorporated reference exhibit 3i united technologies corporation quarterly report form 10q commission file number 1812 quarterly period ended june 30 1997 3ii bylaws amended restated effective february 8 1999 4 corporation hereby agrees furnish commission upon request copy instrument defining rights holders longterm debt corporation consolidated subsidiaries unconsolidated subsidiaries 101 united technologies corporation 1979 long term incentive plan incorporated reference exhibit 10i united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 102 united technologies corporation annual executive incentive compensation plan amended 103 united technologies corporation disability insurance benefits executive control group incorporated reference exhibit 10 iii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 104 united technologies corporation executive estate preservation program incorporated reference exhibit 10iv united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 105 united technologies corporation pension preservation plan incorporated reference exhibit 10v united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 exhibit number 106 united technologies corporation senior executive severance plan incorporated reference exhibit 10vi united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 107 united technologies corporation deferred compensation plan amended 108 otis elevator company incentive compensation plan incorporated reference exhibit 10viii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 109 united technologies corporation directors retirement plan amended 1010 united technologies corporation deferred compensation plan nonemployee directors incorporated reference exhibit 10x united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 1011 united technologies corporation long term incentive plan amended 1012 united technologies corporation executive disability income protection standard separation agreement plan incorporated reference exhibit 10xii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 1013 united technologies corporation directors restricted stockunit program incorporated reference exhibit 10xiii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 1014 united technologies corporation board directors deferred stock unit plan 1015 united technologies corporation pension replacement plan incorporated reference exhibit 10xv united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1993 1016 united technologies corporation special retention stock appreciation program incorporated reference exhibit 10xvi united technologies corporation report form 10q commission file number 1812 quarterly period ended september 30 1995 1017 united technologies corporation nonemployee director stock option plan exhibit number 11 statement computation per share earnings 12 statement computation ratio earnings fixed charges 13 annual report shareowners year ended december 31 1998 except pages information thereof expressly incorporated reference form 10k annual report shareowners provided solely information securities exchange commission deemed filed part form 10k 21 subsidiaries registrant 23 consent pricewaterhousecoopers llp included page form 10k 24 powers attorney antonia handler chayes charles w duncan jr jeanpierre garnier pehr g gyllenhammar karl j krapek charles r lee robert h malott william j perry frank p popoff andre villeneuve harold wagner jacqueline g wexler 27 financial data schedule 271 restated prior periods financial data schedule 272 restated prior periods financial data schedule notes exhibits list incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1 812 fiscal year ended december 31 1995 submitted electronically herewith exhibits 101 1017 management contracts compensatory plans required filed exhibits pursuant item 14c requirements form 10k reports b report form 8k dated december 1 1998 filed corporation december 2 1998 report includes information items 5 7 concerning amendments bylaws corporation signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant david j fitzpatrick david j fitzpatrick date february 16 1999 senior vice president chief financial officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth signature title date george david chairman director february 16 1999 george david president chief executive officer david j fitzpatrick senior vice president february 16 1999 david j fitzpatrick chief financial officer jay l haberland vice president february 16 1999 jay l haberland controller antonia handler chayes director antonia handler chayes swilliam h trachsel charles w duncan jr director william h trachsel charles w duncan jr attorneyinfact date february 16 1999 jeanpierre garnier director jeanpierre garnier pehr g gyllenhammar director pehr g gyllenhammar karl j krapek director karl j krapek signature title date charles r lee director charles r lee robert h malott director robert h malott william j perry director william j perry william h trachsel frank p popoff director william h trachsel frank p popoff attorneyinfact date february 16 1999 andre villeneuve director andre villeneuve harold wagner director harold wagner jacqueline g wexler director jacqueline g wexler report independent accountants financial statement schedule board directors united technologies corporation audits consolidated financial statements referred report dated january 21 1999 appearing page 10 1998 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp hartford connecticut january 21 1999 si consent independent accountants hereby consent incorporation reference prospectus constituting part registration statements form s3 nos 33326331 3346916 registration statements form s8 nos 333 21853 33318743 33321851 3357769 3345440 3311255 3326580 33 26627 3328974 3351385 3358937 287322 united technologies corporation report dated january 21 1999 appearing page 10 1998 annual report shareowners incorporated reference annual report form 10k also consent incorporation reference report financial statement schedule appears page si form 10k pricewaterhousecoopers llp hartford connecticut february 16 1999item 14 exhibits financial statement schedules reports form 8k financial statements financial statement schedules exhibits 1financial statements incorporated page number reference 1999 annual report annual shareowners report independent accountants 10 consolidated statement operations three years ended december 31 1999 11 consolidated balance sheetdecember 31 1999 1998 12 consolidated statement cash flows three years ended december 31 1999 13 notes consolidated financial statements 15 selected quarterly financial data unaudited 26 2financial statement schedule three page number years ended december 31 1999 form 10k report independent accountants financial statement schedule si schedule ii valuation qualifying accounts sii consent independent accountants schedules omitted applicable required information shown financial statements notes thereto 3exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings 18 exhibit number 3i restated certificate incorporation incorporated reference exhibit 3i united technologies corporation quarterly report form 10q commission file number 1812 quarterly period ended june 30 1997 3ii bylaws amended restated effective february 8 1999 4 corporation hereby agrees furnish commission upon request copy instrument defining rights holders longterm debt corporation consolidated subsidiaries unconsolidated subsidiaries 101 united technologies corporation 1979 long term incentive plan incorporated reference exhibit 10i united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 102 united technologies corporation annual executive incentive compensation plan amended 103 united technologies corporation disability insurance benefits executive control group incorporated reference exhibit 10 iii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 104 united technologies corporation executive estate preservation program incorporated reference exhibit 10iv united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 105 united technologies corporation pension preservation plan incorporated reference exhibit 10v united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 106 united technologies corporation senior executive severance plan incorporated reference exhibit 10vi united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 107 united technologies corporation deferred compensation plan amended 108 otis elevator company incentive compensation plan incorporated reference exhibit 10viii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 19 exhibit number 109 united technologies corporation directors retirement plan amended 1010 united technologies corporation deferred compensation plan nonemployee directors incorporated reference exhibit 10x united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 1011 united technologies corporation long term incentive plan amended 1012 united technologies corporation executive disability income protection standard separation agreement plan incorporated reference exhibit 10xii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 1013 united technologies corporation directors restricted stockunit program incorporated reference exhibit 10xiii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 1014 united technologies corporation board directors deferred stock unit plan 1015 united technologies corporation pension replacement plan incorporated reference exhibit 10xv united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1993 1016 united technologies corporation special retention stock appreciation program incorporated reference exhibit 10xvi united technologies corporation report form 10q commission file number 1812 quarterly period ended september 30 1995 1017 united technologies corporation nonemployee director stock option plan 1018 merger agreement dated february 21 1999 among united technologies corporation hssail inc sundstrand corporation incorporated reference exhibit 21 united technologies corporation report form 8k commission file number 1812 dated february 21 1999 filed sec february 23 1999 1019 stock purchase agreement dated march 16 1999 nevada bond investment corp ii lear corporation incorporated reference exhibit 991 united technologies corporation report form 8k commission file number 1812 dated march 16 1999 filed sec march 19 1999 1020 incentive compensation letter agreement dated december 21 1998 signed april 1 1999 corporation c scott greer president ut automotive incorporated reference exhibit 101 united technologies corporation report form 10q commission file number 1812 quarter ended june 30 1999 20 exhibit number 11 statement computation per share earnings 12 statement computation ratio earnings fixed charges 13 annual report shareowners year ended december 31 1999 except pages information thereof expressly incorporated reference form 10k annual report shareowners provided solely information securities exchange commission deemed filed part form 10k 21 subsidiaries registrant 23 consent pricewaterhousecoopers llp included page form 10k 24 powers attorney antonia handler chayes jean pierre garnier charles r lee richard mccormick william j perry frank p popoff andre villeneuve harold wagner 27 financial data schedule 271 restated prior periods financial data schedule 272 restated prior periods financial data schedule notes exhibits list incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1 812 fiscal year ended december 31 1995 submitted electronically herewith exhibits 101 1020 contracts compensatory plans required filed exhibits pursuant item 14c requirements form 10k reports b reports form 8k filed corporation quarter ended december 31 1999 21 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant david j fitzpatrick david j fitzpatrick date february 14 2000 senior vice president chief financial officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth signature title date sgeorge david chairman director february 14 2000 george david chief executive officer skarl j krapek director president february 14 2000 karl j krapek chief operating officer sdavid j fitzpatrick senior vice february 14 2000 david j fitzpatrick president chief financial officer sdavid g nord acting controller february 14 2000 david g nord antonia handler chayes director antonia handler chayes swilliam h trachsel jeanpierre garnier director william h trachsel jeanpierre garnier attorneyinfact date february 14 2000 jamie gorelick director 22 signature title charles r lee director charles r lee richard mccormick director richard mccormick william j perry director william j perry byswilliam h trachsel frank p popoff director william h trachsel frank p popoff attorneyinfact date february 14 2000 andre villeneuve director andre villeneuve harold wagner director harold wagner sanford weill director 23 report independent accountants financial statement schedule board directors united technologies corporation audits consolidated financial statements referred report dated january 19 2000 appearing page 10 1999 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements spricewaterhousecoopers llp pricewaterhousecoopers llp hartford connecticut january 19 2000 si 24 25 consent independent accountants hereby consent incorporation reference prospectus constituting part registration statements form s3 nos 33389041 33391959 registration statement form s4 33377991 registration statements form s8 nos 33321853 33318743 33321851 3357769 3345440 3311255 3326580 3326627 3328974 33 51385 3358937 287322 33377991 33382911 united technologies corporation report dated january 19 2000 appearing page 10 1999 annual report shareowners incorporated reference annual report form 10k also consent incorporation reference report financial statement schedule appears page si form 10k pricewaterhousecoopers llp pricewaterhousecoopers llp hartford connecticut february 14 2000 26 item 14 principal accounting fees services information required item 14 incorporated reference section corporation’s proxy statement 2004 annual meeting shareowners entitled “appointment independent auditors” headings “audit fees” “audit related fees” “tax fees” “all fees” item 15item 14 principal accounting fees services information required item 14 incorporated reference section utc’s proxy statement 2005 annual meeting entitled “appointment independent auditors” headings “audit fees” “audit related fees” “tax fees” “all fees” part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2006 annual meeting entitled “appointment firm independent registered public accountants serve independent auditors” headings “audit fees” “audit related fees” “tax fees” “all fees” part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2007 annual meeting entitled “appointment firm independent registered public accountants serve independent auditors” headings “audit fees” “audit related fees” “tax fees” “all fees” 17 part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2008 annual meeting titled “appointment firm independent registered public accountants serve independent auditors 2008” including information provided “audit fees” “audit related fees” “tax fees” “all fees” part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2009 annual meeting titled “appointment firm independent registered public accountants serve independent auditors 2009” including information provided “audit fees” “audit related fees” “tax fees” “all fees” part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2010 annual meeting titled “appointment firm independent registered public accountants serve independent auditors 2010” including information provided section regard “audit fees” “audit related fees” “tax fees” “all fees” part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2011 annual meeting titled “appointment firm independent registered public accountants serve independent auditors 2011” including information provided section regard “audit fees” “auditrelated fees” “tax fees” “all fees” part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2012 annual meeting titled “appointment firm independent registered public accountants serve independent auditor 2012” including information provided section regard “audit fees” “auditrelated fees” “tax fees” “all fees” part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2014 annual meeting shareowners titled “appointment firm independent registered public accountants serve independent auditor 2014” including information provided section regard “audit fees” “auditrelated fees” “tax fees” “all fees” part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2015 annual meeting shareowners titled “appointment firm independent registered public accountants serve independent auditor 2015” including information provided section regard “audit fees” “auditrelated fees” “tax fees” “all fees” part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2016 annual meeting shareowners titled appointment firm independent registered public accountants serve independent auditor 2016 including information provided section regard audit fees auditrelated fees tax fees part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2017 annual meeting shareowners titled appointment firm independent registered public accountants serve independent auditor 2017 including information provided section regard audit fees auditrelated fees tax fees part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2020 annual meeting shareowners titled appoint independent auditor 2020 including information provided section regard audit fees auditrelated fees tax fees part iv item 15item 14 principal accountant fees services information required item 14 incorporated reference section proxy statement 2021 annual meeting shareowners titled “appoint independent auditor 2021” including information provided section regard “audit fees” “auditrelated fees” “tax fees” “all fees” part iv item 15item 14 exhibits financial statement schedules reports form 8k page number annual report financial statements financial statement schedules exhibits 1 financial statements incorporated reference 1996 annual report shareowners report independent accountants 28 consolidated statement operations three years 29 ended december 31 1996 consolidated balance sheetdecember 31 30 1996 1995 consolidated statement cash flows three years 31 ended december 31 1996 notes consolidated financial statements 3243 selected quarterly financial data 43 unaudited page number form 10k 2 financial statement schedule three years ended december 31 1996 report independent accountants financial statement s1 schedule ii valuation qualifying accounts s2 consent independent accountants schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings exhibit number 31 restated certificate incorporation 32 bylaws 4 corporation hereby agrees furnish upon request commission copy instrument defining rights holders long term debt corporation consolidated subsidiaries unconsolidated subsidiaries 101 united technologies corporation 1979 long term incentive plan 13 exhibit number 102 united technologies corporation annual executive incentive compensation plan amended 103 united technologies corporation disability insurance benefits executive control group 104 united technologies corporation executive estate preservation program 105 united technologies corporation pension preservation plan 106 united technologies corporation senior executive severance plan 107 united technologies corporation deferred compensation plan amended 108 otis elevator company incentive compensation plan 109 united technologies corporation directors retirement plan amended 1010 united technologies corporation deferred compensation plan nonemployee directors 1011 united technologies corporation long term incentive plan amended 1012 united technologies corporation executive disability income protection standard separation agreement plan 1013 united technologies corporation directors restricted stockunit program 1014 united technologies corporation board directors deferred stock unit plan 1015 united technologies corporation pension replacement plan 1016 united technologies corporation special retention stock appreciation program 1017 united technologies corporation nonemployee director stock option plan 11 statement computation per share earnings 12 computation ratio earnings fixed charges 13 annual report shareowners year ended december 31 1996 except pages information thereof expressly incorporated reference form 10k annual report shareowners provided solely information securities exchange commission deemed filed part form 10k 21 subsidiaries registrant 24 powers attorney howard h baker jr antonia handler chayes robert f daniell robert f dee charles w duncan jr jean pierre garnier pehr g gyllenhammar gerald hines charles r lee robert h malott frank p popoff harold wagner jacqueline g wexler 27 financial data schedule notes exhibits submitted electronically herewith incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1994 incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1993 14 notes exhibits incorporated reference exhibit number united technologies corporation form 10q commission file number 1812 quarter ended september 30 1995 incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1995 b reports form 8k filed registrant fourth quarter 1996 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant stephen f page date february 7 1997 executive vice president chief financial officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth signature title date george david president chief february 7 1997 george david executive officer director jay l haberland vice president february 7 1997 jay l haberland controller stephen f page executive vice february 7 1997 stephen f page president chief financial officer robert f daniell chairman director robert f daniell howard h baker jr director howard h baker jr antonia handler chayes director antonia handler chayes robert f dee director robert f dee charles w duncan jr director charles w duncan jr jeanpierre garnier director jeanpierre garnier pehr g gyllenhammar director byswilliam h trachsel pehr g gyllenhammar william h trachsel attorneyin fact date february 7 1997 15 signature title date gerald hines director gerald hines charles r lee director charles r lee robert h malott director robert h malott frank p popoff director byswilliam h frank p popoff william h trachsel attorneyin fact harold wagner director date february 7 1997 harold wagner jacqueline g wexler director jacqueline g wexler karl j krapek executive vice february 7 1997 karl j krapek president director 16 report independent accountants financial statement schedule board directors united technologies corporation audits consolidated financial statements referred report dated january 23 1997 appearing page 28 1996 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements price waterhouse llp hartford connecticut january 23 1997 s1 s2 consent independent accountants hereby consent incorporation reference prospectus constituting part registration statements form s3 nos 3346916 3340163 3334320 3331514 3329687 336452 registration statements form s8 nos 3357769 3345440 3311255 3326580 33 26627 3328974 3351385 3358937 287322 united technologies corporation report dated january 23 1997 appearing page 28 1996 annual report shareowners incorporated reference annual report form 10k also consent incorporation reference report financial statement schedule appears page s1 form 10k price waterhouse llp hartford connecticut february 7 1997item 14 exhibits financial statement schedules reports form 8k financial statements financial statement schedules exhibits 1 financial statements incorporated page number reference 2000 annual report annual shareowners report independent accountants 9 consolidated statement operations three years ended december 31 2000 10 consolidated balance sheetdecember 31 2000 1999 11 consolidated statement cash flows three years ended december 31 2000 12 notes consolidated financial statements 14 selected quarterly financial data unaudited 24 page number 2 financial statement schedule three form years ended december 31 2000 10k report independent accountants financial statement schedule si schedule ii valuation qualifying accounts sii consent independent accountants schedules omitted applicable required information shown financial statements notes thereto 3exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings exhibit number 3i restated certificate incorporation incorporated reference exhibit 3i united technologies corporation quarterly report form 10q commission file number 1812 quarterly period ended june 30 2000 3ii bylaws amended restated effective february 8 1999 incorporated reference exhibit 3ii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1999 13 exhibit number 4a indenture dated april 1 1990 corporation state street bank trust company successor connecticut national bank trustee incorporated reference exhibit 4a corporations registration statement form s3 file 33374195 filed sec march 10 1999 corporation hereby agrees furnish commission upon request copy instrument defining rights holders long term debt corporation consolidated subsidiaries unconsolidated subsidiaries 101 united technologies corporation 1979 long term incentive plan incorporated reference exhibit 10i united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 102 united technologies corporation annual executive incentive compensation plan amended 103 united technologies corporation disability insurance benefits executive control group incorporated reference exhibit 10 iii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 104 united technologies corporation executive estate preservation program incorporated reference exhibit 10iv united technologies corporation annual report form 10k commission file number 1 812 fiscal year ended december 31 1992 105 united technologies corporation pension preservation plan incorporated reference exhibit 10v united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 106 united technologies corporation senior executive severance plan incorporated reference exhibit 10vi united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 107 united technologies corporation deferred compensation plan amended 108 otis elevator company incentive compensation plan incorporated reference exhibit 10viii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 109 united technologies corporation directors retirement plan amended 1010 united technologies corporation deferred compensation plan nonemployee directors incorporated reference exhibit 10x united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 1011 united technologies corporation long term incentive plan amended 1012 united technologies corporation executive disability income protection standard separation agreement plan incorporated reference exhibit 10xii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 1013 united technologies corporation directors restricted stockunit program incorporated reference exhibit 10xiii united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1992 1014 united technologies corporation board directors deferred stock unit plan amendment 1 thereto incorporated reference exhibit 10iiia1 united technologies corporation report form 10q commission file number 1812 quarterly period ended june 30 2000 14 exhibit number 1015 united technologies corporation pension replacement plan incorporated reference exhibit 10xv united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1993 1016 united technologies corporation special retention stock appreciation program incorporated reference exhibit 10xvi united technologies corporation report form 10q commission file number 1812 quarterly period ended september 30 1995 1017 united technologies corporation nonemployee director stock option plan amendment 1 thereto incorporated reference exhibit 10iiia2 united technologies corporation report form 10q commission file number 1812 quarterly period ended june 30 2000 1018 merger agreement dated february 21 1999 among united technologies corporation hssail inc sundstrand corporation incorporated reference exhibit 21 united technologies corporation report form 8k commission file number 1812 dated february 21 1999 filed sec february 23 1999 1019 stock purchase agreement dated march 16 1999 nevada bond investment corp ii lear corporation incorporated reference exhibit 991 united technologies corporation report form 8k commission file number 1812 dated march 16 1999 filed sec march 19 1999 1020 incentive compensation letter agreement dated december 21 1998 signed april 1 1999 corporation c scott greer president ut automotive incorporated reference exhibit 101 united technologies corporation report form 10q commission file number 1812 quarter ended june 30 1999 11 statement computation per share earnings 12 statement computation ratio earnings fixed charges 13 annual report shareowners year ended december 31 2000 except pages information thereof expressly incorporated reference form 10k annual report shareowners provided solely information securities exchange commission deemed filed part form 10k 21 subsidiaries registrant 23 consent pricewaterhousecoopers llp included page form 10k 24 powers attorney antonia handler chayes jean pierre garnier jamie gorelick charles r lee richard mccormick frank p popoff andre villeneuve harold wagner sanford weill notes exhibits list incorporated reference exhibit number united technologies corporation annual report form 10k commission file number 1812 fiscal year ended december 31 1995 submitted electronically herewith exhibits 101 1020 contracts compensatory plans required filed exhibits pursuant item 14c requirements form 10k reports b reports form 8k filed corporation quarter ended december 31 2000 15 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant david j fitzpatrick david j fitzpatrick date february 12 2001 senior vice president chief financial officer treasurer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth signature title date george david chairman director february 12 2001 george david chief executive officer karl j krapek director president february 12 2001 karl j krapek chief operating officer david j fitzpatrick senior vice february 12 2001 david j fitzpatrick president chief financial officer treasurer david g nord vice president february 12 2001 david g nord controller antonia handler chayes director antonia handler chayes byswilliam h trachsel jeanpierre garnier director william h trachsel jeanpierre garnier attorneyinfact date february 12 2001 jamie gorelick jamie gorelick director charles r lee director charles r lee richard mccormick director richard mccormick frank p popoff director frank p popoff andre villeneuve director andre villeneuve harold wagner director harold wagner sanford weill sanford weill director 16 report independent accountants financial statement schedule shareowners united technologies corporation audits consolidated financial statements referred report dated january 18 2001 appearing page 9 2000 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp hartford connecticut january 18 2001 si consent independent accountants hereby consent incorporation reference prospectus constituting part registration statements form s3 nos 333 51830 33389041 33391959 registration statement form s4 33377991 amended posteffective amendment 1 form s8 3337799101 registration statements form s8 nos 333 21853 33318743 33321851 3357769 3345440 3311255 3326580 33 26627 3328974 3351385 3358937 287322 33377817 33382911 united technologies corporation report dated january 18 2001 relating financial statements appears page 9 2000 annual report shareowners incorporated reference annual report form 10k also consent incorporation reference report dated january 18 2001 financial statement schedule appears page si form 10k pricewaterhousecoopers llp pricewaterhousecoopers llp hartford connecticut february 12 2001item 14 controls procedures 90day period prior filing date report management including corporations chief executive officer chief financial officer evaluated effectiveness design operation corporations disclosure controls procedures based upon date evaluation chief executive officer chief financial officer concluded disclosure controls procedures effective material respects ensure information required disclosed reports corporation files submits exchange act recorded processed summarized reported required significant changes corporations internal controls factors could significantly affect internal controls subsequent date corporation carried evaluation significant deficiencies material weaknesses identified evaluation therefore corrective actions taken item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2019 annual meeting shareowners titled appointment independent auditor 2019 including information provided section regard audit fees auditrelated fees tax fees part iv item 15item 14 exhibits financial statement schedules reports form 8k transactions 14 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant david j fitzpatrick david j fitzpatrick date february 11 senior vice president chief financial officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth signature title date george david george david chairman director chief executive officer february 11 2002 david j fitzpatrick david j fitzpatrick senior vice president chief financial officer february 11 2002 david g nord david g nord vice president controller february 11 2002 antonia handler chayes antonia handler chayes director jeanpierre garnier jeanpierre garnier director william h trachsel jamie gorelick jamie gorelick director william h trachsel attorneyinfact date february 11 2002 charles r lee charles r lee director richard mccormick richard mccormick director frank p popoff frank p popoff director h patrick swygert h patrick swygert director andre villeneuve andre villeneuve director h wagner h wagner director sanford weill sanford weill director 15 report independent accountants financial statement schedule board directors united technologies corporation audits consolidated financial statements referred report dated january 17 2002 appearing 2001 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 14a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp pricewaterhousecoopers llp hartford connecticut january 17 2002 si united technologies corporation subsidiaries schedule ii valuation qualifying accounts three years ended december 31 2001 millions dollars allowances doubtful accounts customer financing activity sii consent independent accountants hereby consent incorporation reference registration statements form s3 nos 33360276 33351830 registration statement form s4 33377991 amended posteffective amendment 1 form s8 3337799101 registration statements form s8 nos 33321853 33318743 33321851 3357769 3345440 3311255 3326580 3326627 3328974 3351385 3358937 287322 33377817 33382911 united technologies corporation report dated january 17 2002 relating financial statements appears 2001 annual report shareowners incorporated reference annual report form 10k also consent incorporation reference report dated january 17 2002 financial statement schedule appears page si form 10k pricewaterhousecoopers llp pricewaterhousecoopers llp hartford connecticut february 11 2002 fiitem 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2013 annual meeting shareowners titled “appointment firm independent registered public accountants serve independent auditor 2013” including information provided section regard “audit fees” “auditrelated fees” “tax fees” “all fees” part iv item 15item 14 principal accounting fees services information required item 14 incorporated reference section proxy statement 2018 annual meeting shareowners titled appointment independent auditor 2018 including information provided section regard audit fees auditrelated fees tax fees part iv item 15 item 7 managements discussion analysis results operations financial position see managements discussion analysis results operations financial position appearing pages 28 35 corporations 1993 annual report shareowners discussion analysis incorporated reference report item 8item 7 managements discussion analysis results operations financial position see managements discussion analysis results operations financial position appearing pages 16 25 corporations 1994 annual report shareowners discussion analysis incorporated reference report item 8item 7 managements discussion analysis results operations financial position see managements discussion analysis results operations financial position appearing pages 20 27 corporations 1995 annual report shareowners discussion analysis incorporated reference report item 8item 7 managements discussion analysis results operations financial position see managements discussion analysis results operations financial position appearing pages 22 27 corporations 1997 annual report shareowners discussion analysis incorporated reference form 10k item 7aitem 7 managements discussion analysis results operations financial position see managements discussion analysis results operations financial position appearing pages 3 9 corporations 1998 annual report shareowners discussion analysis incorporated reference form 10k item 7aitem 7 managements discussion analysis results operations financial position see managements discussion analysis results operations financial position appearing pages 2 9 corporations 1999 annual report shareowners discussion analysis incorporated reference form 10k item 7aitem 7 management’s discussion analysis financial condition results operations management’s discussion analysis financial condition results operations appearing pages 2 15 corporation’s 2003 annual report shareowners hereby incorporated reference item 7aitem 7 management’s discussion analysis financial condition results operations management’s discussion analysis financial condition results operations utc’s 2004 annual report hereby incorporated reference item 7aitem 7 management’s discussion analysis financial condition results operations management’s discussion analysis financial condition results operations 2005 annual report hereby incorporated reference item 7aitem 7 management’s discussion analysis financial condition results operations management’s discussion analysis financial condition results operations 2006 annual report hereby incorporated reference item 7aitem 7 management’s discussion analysis financial condition results operations hereby incorporate reference form 10k section titled “management’s discussion analysis financial condition results operations” 2007 annual report item 7aitem 7 management’s discussion analysis financial condition results operations hereby incorporate reference form 10k section titled “management’s discussion analysis financial condition results operations” 2008 annual report item 7aitem 7 management’s discussion analysis financial condition results operations hereby incorporate reference form 10k section titled “management’s discussion analysis financial condition results operations” 2009 annual report item 7aitem 7 management’s discussion analysis financial condition results operations hereby incorporate reference form 10k section titled “management’s discussion analysis financial condition results operations” 2010 annual report item 7aitem 7 management’s discussion analysis financial condition results operations hereby incorporate reference form 10k section titled “management’s discussion analysis financial condition results operations” 2011 annual report item 7aitem 7 management’s discussion analysis financial condition results operations information set forth section entitled “management’s discussion analysis financial condition results operations” 2013 annual report filed exhibit 13 form 10k incorporated herein reference item 7aitem 7 management’s discussion analysis financial condition results operations information set forth section entitled “management’s discussion analysis financial condition results operations” 2014 annual report filed exhibit 13 form 10k incorporated herein reference item 7aitem 7 management’s discussion analysis financial condition results operations information set forth section entitled management’s discussion analysis financial condition results operations 2015 annual report filed exhibit 13 form 10k incorporated herein reference item 7aitem 7 management’s discussion analysis financial condition results operations information set forth section entitled management’s discussion analysis financial condition results operations 2016 annual report filed exhibit 13 form 10k incorporated herein reference item 7aitem 7 management’s discussion analysis financial condition results operations information set forth section entitled management’s discussion analysis financial condition results operations 2019 annual report filed exhibit 13 form 10k incorporated herein reference item 7aitem 7 management’s discussion analysis financial condition results operations business overview global premier systems provider high technology products services aerospace defense industries april 3 2020 united technologies corporation utc completed separation transactions defined april 3 2020 completed raytheon merger defined form new company raytheon technologies corporation result transactions operate four principal business segments collins aerospace systems collins aerospace pratt whitney raytheon intelligence space ris raytheon missiles defense rmd separation transactions distributions april 3 2020 utc since renamed raytheon technologies corporation completed separation business three independent publicly traded companies utc carrier global corporation carrier otis worldwide corporation otis separations “separation transactions” utc distributed outstanding shares carrier common stock outstanding shares otis common stock utc shareowners held shares utc common stock close business march 19 2020 record date distributions utc distributed 866158910 433079455 shares common stock carrier otis respectively distributions effective 1201 eastern time april 3 2020 historical results carrier otis presented discontinued operations excluded continuing operations segment results periods presented throughout annual report form 10k unless otherwise indicated amounts activity presented continuing operations basis raytheon merger april 3 2020 following completion separation transactions distributions pursuant agreement plan merger dated june 9 2019 amended utc raytheon company raytheon completed allstock merger equals transaction raytheon merger upon closing raytheon merger raytheon company became wholly owned subsidiary utc changed name “raytheon technologies corporation” november 26 2018 completed acquisition rockwell collins rockwell acquisition leader aviation highintegrity solutions commercial military customers well leadingedge avionics flight controls aircraft interior data connectivity solutions refer “note 2 business acquisitions dispositions goodwill intangible assets” within item 8 form 10k additional discussion rockwell acquisition unless context otherwise requires terms “we” “our” “us” “the company” “raytheon technologies” “rtc” mean united technologies corporation subsidiaries referring periods prior raytheon merger combined company raytheon technologies corporation referring periods raytheon merger unless context otherwise requires terms “raytheon company” “raytheon” mean raytheon company subsidiaries prior raytheon merger utc determined accounting acquirer merger result financial statements raytheon technologies year ended december 31 2020 include raytheon company’s financial position results operations period subsequent completion raytheon merger april 3 2020 historical results carrier otis presented discontinued operations excluded continuing operations segment results periods presented see “note 3 discontinued operations” within item 8 form 10k additional information industry considerations worldwide operations affected industrial economic political factors regional global level operations include original equipment manufacturer oem extensive related aftermarket parts services related aerospace operations defense business serves domestic international customers primarily prime contractor subcontractor broad portfolio defense related programs government customers business mix also reflects combination shorter cycles commercial aerospace spares contracts certain service contracts defense business primarily ris longer cycles aerospace oem aftermarket maintenance contracts defense contracts design develop manufacture modify complex equipment customers public private sectors businesses reflect extensive geographic diversification evolved continued globalization government legislation policies regulations including regulations related global warming carbon footprint fuel efficiency negative impact worldwide operations government industrydriven safety performance regulations restrictions aircraft engine noise emissions government imposed travel restrictions government procurement practices impact businesses collins aerospace pratt whitney serve commercial government aerospace customers revenue passenger miles rpms available seat miles general economic health airline carriers key barometers commercial aerospace operations performance general aviation sector closely tied overall health economy positively correlated corporate profits commercial aftermarket operations continue evolve significant portion aerospace operations’ customers covered longterm aftermarket service agreements collins aerospace pratt whitney agreements comprehensive longterm spare part service agreements customers ris rmd defense operations collins aerospace pratt whitney affected us department defense dod budget spending levels changes demand changes policy positions priorities new us administration global political environment total sales us government excluding foreign military sales fms 260 billion 91 billion 66 billion 2020 2019 2018 459 201 189 total net sales years respectively impact covid19 pandemic march 2020 coronavirus disease 2019 covid19 declared pandemic world health organization national emergency us government pandemic negatively affected us global economy disrupted global supply chains financial markets resulted significant travel restrictions mandated facility closures shelterinplace social distancing orders numerous jurisdictions around world raytheon technologies taking prudent measures protect health safety employees practicing social distancing performing deep cleaning facilities temperature screening health questionnaires enabling employees work home possible also taken appropriate actions help support communities addressing challenges posed pandemic including production donation personal protective equipment business operations industries operate significantly impacted public private sector policies initiatives us worldwide address transmission covid19 imposition travel restrictions adoption remote working additionally public sentiments regarding air travel also significant impact began experience issues related covid19 first quarter 2020 primarily related limited number facility closures less full staffing disruptions supplier deliveries significantly collins aerospace pratt whitney businesses continued disruption air travel commercial activities significant restrictions limitations businesses particularly within aerospace commercial airline industries negatively impacted global supply demand distribution capabilities conditions began second quarter 2020 continued remainder 2020 particular unprecedented decrease air travel resulting covid19 pandemic adversely affecting airline airframer customers demand products services collins aerospace pratt whitney businesses based recent public data revenue passenger miles rpms declined approximately 65 first eleven months 2020 compared prior year due pandemic result airline customers reported significant reductions fleet utilization aircraft grounding unplanned retirements deferred cases cancelled new aircraft deliveries airlines shifted cash conservation behaviors deferring engine maintenance due lower flight hours aircraft utilization requesting extended payment terms deferring delivery new aircraft spare engines requesting discounts engine maintenance airline customers filed bankruptcy due inability meet financial obligations additionally seeing purchase order declines line publicly communicated aircraft production volumes original equipment manufacturer oem customers delay cancel orders continue monitor trends working closely customers continue actively mitigate costs adjust production schedules accommodate declines demand also taking actions preserve capital protect longterm needs businesses including cutting discretionary spending significantly reducing capital expenditures research development spend suspending share buybacks 2020 deferring merit increases implementing temporary pay reductions freezing nonessential hiring repositioning employees defense work furloughing employees needed personnel reductions 2020 recorded total restructuring charges 777 million primarily related personnel reductions collins aerospace pratt whitney businesses preserve capital corporate headquarters due consolidation raytheon merger former raytheon company businesses although experiencing minor impacts experienced significant facility closures significant business disruptions result covid19 pandemic given impacts described resulted covid19 pandemic expect future operating results particularly collins aerospace pratt whitney businesses continue significantly negatively impacted expectations regarding covid19 pandemic potential financial impact based available information assumptions believe reasonable time however actual financial impact highly uncertain subject wide range factors future developments believe longterm outlook aerospace industry remains positive due fundamental drivers air travel demand significant uncertainty respect commercial air traffic levels begin recover whether point capacity return andor exceed precovid19 levels latest estimates recovery may occur 2023 2024 new information may emerge concerning scope severity duration covid19 pandemic well worsening pandemic effect mutating strains whether additional outbreaks pandemic continue occur actions contain pandemic’s spread treat impact timing availability vaccines distribution acceptance efficacy governmental business individual personal actions taken response pandemic including restrictions limitations travel transportation changes leisure business travel patterns work environments among others actions related impacts may trends continue future even pandemic longer poses significant public health risk considered deterioration general economic market conditions primarily due covid19 pandemic triggering event first second quarters 2020 requiring impairment evaluation goodwill intangible assets commercial aerospace businesses collins aerospace pratt whitney beginning second quarter 2020 observed several airline customer bankruptcies delays cancellations aircraft purchases airlines fleet retirements repositioning oem production schedules experienced significant decline revenues collins aerospace pratt whitney businesses due decline flight hours aircraft fleet utilization shop visits commercial oem deliveries factors contributed deterioration expectations regarding timing return precovid19 commercial flight activity reduced future sales cash flows expectations based updated forecast assumptions second quarter 2020 concluded carrying values two collins aerospace reporting units greater respective fair values accordingly recorded goodwill impairment charge 32 billion identify deterioration expectations third quarter 2020 therefore triggering event completed annual goodwill impairment testing october 1 2020 determined additional adjustments carrying value goodwill necessary refer “note 2 acquisitions dispositions goodwill intangible assets” within item 8 form 10k additional information described “note 8 commercial aerospace industry assets commitments” within item 8 form 10k significant exposure related airline airframer customers including significant accounts receivable contract assets balances given uncertainty related severity length pandemic well worsening pandemic mutations strains virus timing impact vaccines whether additional outbreaks pandemic impact across aerospace industry may required record additional charges impairments future periods discussion 2020 impacts see “note 1 basis presentation summary accounting principles” within item 8 form 10k although impact covid19 commercial business significant currently believe sufficient liquidity withstand current estimated impacts matters global economic political conditions changes raw material commodity prices interest rates foreign currency exchange rates energy costs levels air travel financial condition commercial airlines impact natural disasters weather conditions create uncertainties could impact businesses 2021 regard political conditions july 2019 us government suspended turkey’s participation joint strike fighter program turkey accepted delivery russianbuilt s400 air missile defense system us imposed may impose additional sanctions turkey result political disputes turkish companies supply us components solesourced primarily aerospace operations commercial military engines aerospace products depending upon scope timing us sanctions turkey potential reciprocal actions sanctions actions could impact sources supply could material adverse effect results operations cash flows financial condition addition october 2020 people’s republic china announced may sanction rtc connection possible foreign military sale taiwan six ms110 reconnaissance pods related equipment manufactured collins aerospace foreign military sales governmenttogovernment transactions initiated carried direction us government date chinese government imposed sanctions rtc indicated nature timing future potential sanctions actions china impose sanctions take regulatory action rtc suppliers teammates partners could potentially disrupt business operations impact potential sanctions actions china cannot determined time recent us presidential congressional election could result changes us government’s foreign policies may impact regulatory approval direct commercial sales contracts certain products services certain foreign customers likewise uncertain whether approvals previously granted prior sales could also paused revoked products services yet delivered customer ultimately receive regulatory approvals revoked could material effect financial results particular direct commercial sales contracts precision guided munitions certain middle east customer yet obtained regulatory approval due result us presidential congressional election resulting uncertainty surrounding us foreign policy direct commercial sales precision guided munitions customer determined longer probable able obtain required regulatory approvals contracts however determination could change us government’s foreign policy views clarified therefore fourth quarter 2020 reversed 119 million sales work performed specific contracts subsequent date raytheon merger end third quarter 2020 related operating profit addition recognized unfavorable profit impact 516 million primarily related inventory reserves contract asset impairments recognition supplier related obligations related termination liability expect utilized otherwise directed customers addition reversed 755 million backlog contracts contract liabilities include 405 million advance payments received customer contracts may become refundable customer contracts ultimately terminated see item 1a risk factors within part form 10k discussion items financial summary use following key financial performance measures manage business consolidated basis business segment monitor assess results operations net salesa growth metric measures revenue current year operating profita measure profit continuing operations year nonoperating expenses net income taxes operating margina measure operating profit percentage total net sales backlog equivalent remaining performance obligations contracts represents dollar value firm orders work performed excludes unexercised contract options potential orders orderingtype contracts eg indefinitedelivery indefinitequantity idiq type contracts backlog generally increases bookings andor orders generally converts sales incur costs related contractual commitments contracts recognized time products transferred customers point time contracts backlog affected changes foreign exchange rates addition maintain strong focus program execution prudent management capital investments order maximize operating income cash focus adjusted earnings per share eps measures assess cash generation efficiency effectiveness use capital free cash flow fcf return invested capital roic defined measurements us generally accepted accounting principles gaap may calculated differently companies considered together believe metrics strong indicators overall performance ability create shareowner value feel measures balanced among longterm shortterm performance efficiency growth also use performance metrics executive compensation purposes discussion results operations financial condition follows results operations segment review liquidity financial condition results operations described “cautionary note concerning factors may affect future results” form 10k periodtoperiod comparisons results particularly segment level may indicative future operating results following discussions comparative results among periods including discussion segment results viewed context discussed “business overview” results ris rmd reflect period subsequent completion raytheon merger april 3 2020 addition result separations transactions distributions historical results carrier otis presented discontinued operations excluded continuing operations segment results periods presented net sales factors contributing total change yearoveryear total net sales follows 1 provide organic change net sales consolidated results operations believe measure useful investors provides transparency underlying performance business allows better yearoveryear comparability organic change excludes effect foreign currency exchange rate fluctuations acquisitions divestitures net significant nonrecurring nonoperational items reconciliation measure reported us gaap amounts provided table net sales decreased 10438 million organically 2020 compared 2019 decrease reflects lower organic sales 66 billion collins aerospace primarily driven lower commercial aerospace oem sales lower commercial aerospace aftermarket sales partially offset higher military sales declines commercial aerospace oem sales commercial aerospace aftermarket sales primarily due current economic environment principally driven covid19 pandemic resulted lower flight hours aircraft fleet utilization commercial oem deliveries decrease net sales also reflects lower organic sales 41 billion pratt whitney primarily due lower commercial aftermarket sales due significant reduction shop visits related spare part sales lower commercial oem sales primarily due significant reduction commercial engine deliveries principally driven current economic operating environment primarily due covid19 pandemic decrease pratt whitney partially offset higher military sales primarily driven increase engine sales aftermarket growth multiple platforms 21662 million sales increase acquisitions divestitures net 2020 compared 2019 primarily driven raytheon merger april 3 2020 included change acquisitions divestitures net sale collins aerospace military global positioning system gps spacebased precision optics businesses sold third quarter 2020 discussed “note 2 acquisitions dispositions goodwill intangible assets” within item 8 form 10k net sales increased 2351 million organically 2019 compared 2018 increase reflects higher organic sales 16 billion pratt whitney primarily driven higher military commercial oem commercial aftermarket sales increase net sales also reflects higher organic sales 11 billion collins aerospace primarily driven higher commercial aftermarket military sales partially offset lower commercial aerospace oem sales 8370 million sales increase acquisitions divestitures net 2019 compared 2018 primarily driven rockwell acquisition composition external net sales products services sales 2020 approximately following net products sales grew 10321 million 2020 compared 2019 primarily due increase external product sales 184 billion due raytheon merger april 3 2020 partially offset decreases external product sales 53 billion collins aerospace 28 billion pratt whitney net services sales grew 917 million 2020 compared 2019 primarily due increase external services sales 34 billion due raytheon merger april 3 2020 partially offset decreases external services sales 13 billion pratt whitney 12 billion collins aerospace net products sales grew 8857 million 2019 compared 2018 primarily due increase external product sales 73 billion collins aerospace principally driven rockwell acquisition increase external product sales 16 billion pratt whitney net services sales grew 1791 million 2019 compared 2018 primarily due increase external services sales 19 billion collins aerospace primarily due rockwell acquisition sales major customers follows 1 excludes foreign military sales us government cost products services sold factors contributing change yearoveryear total cost products services sold follows 1 provide organic change cost sales consolidated results operations believe measure useful investors provides transparency underlying performance business allows better yearoveryear comparability organic change excludes effect foreign currency exchange rate fluctuations acquisitions divestitures net restructuring costs related certain acquisition accounting adjustments significant nonrecurring nonoperational items reconciliation measure reported us gaap amounts provided table organic decrease total cost products services sold 2020 compared 2019 4432 million primarily driven organic sales decreases noted increase acquisitions divestitures net 17696 million 2020 compared 2019 primarily driven raytheon merger april 3 2020 included change acquisitions divestitures net sale collins aerospace military gps spacebased precision optics businesses sold third quarter 2020 discussed “note 2 acquisitions dispositions goodwill intangible assets” within item 8 form 10k unfavorable profit impact 516 million related inventory reserves contract asset impairments recognition supplier related obligations certain international contracts rmd described “segment review” included decrease 8 million 2020 compared 2019 prior year amortization inventory fair value stepup associated rockwell collins acquisition 181 million collins aerospace partially offset 89 million impairment commercial aircraft program assets pratt whitney current year organic increase total cost products services sold 2019 compared 2018 1781 million primarily driven organic sales increases noted increase acquisitions divestitures net 5241 million 2019 compared 2018 primarily driven rockwell acquisition decrease 277 million primarily reflects absence 2018 customer contract settlement pratt whitney discussion restructuring costs see “restructuring costs” section discussion fascas operating adjustment see “fascas operating adjustment” section discussion acquisition accounting adjustments see “acquisition accounting adjustments” subsection “segment review” section net products cost sales grew 11227 million 2020 compared 2019 primarily due increase external product cost sales due raytheon merger april 3 2020 partially offset decreases external product cost sales collins aerospace pratt whitney net services cost sales grew 2231 million 2020 compared 2019 primarily due increase external services cost sales due raytheon merger april 3 2020 partially offset decrease external services cost sales collins aerospace net products cost sales grew 5827 million 2019 compared 2018 primarily due increase external product cost sales collins aerospace primarily due rockwell acquisition pratt whitney net services cost sales grew 1306 million 2019 compared 2018 primarily due increase external services cost sales collins aerospace primarily due rockwell acquisition research development 1 customerfunded research development costs included cost sales consolidated statement operations research development spending subject variable nature program development schedules therefore yearoveryear fluctuations spending levels expected increase companyfunded research development 130 million 2020 compared 2019 primarily driven 06 billion related raytheon merger april 3 2020 partially offset lower expenses 03 billion across various commercial programs pratt whitney 02 billion across various commercial programs collins aerospace principally driven cost reduction measures response current economic environment primarily due covid19 increase companyfunded research development 574 million 2019 compared 2018 primarily driven 05 billion related rockwell acquisition excluding impact collins aerospace companyfunded research development increased 01 billion driven higher expenses across various commercial programs increase customerfunded research development 1828 million 2020 compared 2019 primarily driven 17 billion related raytheon merger april 3 2020 increase customerfunded research development 766 million 2019 compared 2018 primarily driven 08 billion related rockwell acquisition selling general administrative selling general administrative expenses increased 1829 million 2020 compared 2019 primarily driven 16 billion related raytheon merger april 3 2020 excluding impact mergerrelated restructuring costs increase selling general administrative expenses also includes higher expenses 04 billion related increased estimates expected credit losses primarily due customer bankruptcies additional allowances credit losses pratt whitney collins aerospace higher general administrative restructuring costs 03 billion lower expenses due cost reduction initiatives selling general administrative expenses increased 847 million 2019 compared 2018 primarily driven 06 billion incremental selling general administrative expenses resulting rockwell acquisition 01 billion costs associated raytheon merger increase selling general administrative expenses also includes higher expenses 02 billion collins aerospace primarily driven increased headcount employee compensation related expenses partially offset synergy capture related rockwell acquisition continuously evaluating cost structure implemented restructuring actions effort keep cost structure competitive appropriate amounts reflected include beneficial impact previous restructuring actions selling general administrative expenses see “note 14 restructuring costs” within item 8 form 10k restructuring costs discussion income net income net includes equity earnings unconsolidated entities royalty income foreign exchange gains losses well ongoing nonrecurring items increase income net 559 million 2020 compared 2019 primarily due 595 million gains sales collins aerospace businesses discussed “note 2 acquisitions dispositions goodwill intangible assets” within item 8 form 10k 225 million related foreign government wage subsidies due covid19 pratt whitney collins aerospace partially offset net unfavorable yearoveryear impact foreign exchange gains losses 138 million decrease income net 57 million 2019 compared 2018 primarily due net unfavorable impact foreign exchange gains losses operating profit loss change operating profit loss 6803 million 2020 compared 2019 primarily driven operating performance segments described “segment review” 3183 million goodwill impairment second quarter 2020 related two collins aerospace reporting units included change operating profit loss increase acquisition accounting adjustments 1057 million related raytheon merger increase restructuring costs 527 million primarily related restructuring actions taken collins aerospace segment restructuring actions connection raytheon merger april 3 2020 unfavorable profit impact 516 million related inventory reserves contract asset impairments recognition supplier related obligations certain international contracts rmd described “segment review” increase operating profit loss 2037 million 2019 compared 2018 primarily driven operating performance segments described “segment review” included increase operating profit loss increase acquisition accounting adjustments 375 million primarily related rockwell acquisition increase restructuring costs 93 million primarily related actions taken collins aerospace pratt whitney segments nonservice pension income expense change nonservice pension income expense 73 million 2020 compared 2019 primarily driven inclusion raytheon company plans 2020 result raytheon merger decrease interest rates december 31 2019 2020 compared december 31 2018 partially offset decrease expected return plan assets eroa assumption utc plans 2020 onetime curtailment gain 98 million 2019 onetime curtailment gain due recognition previously unrecognized prior service credits result amendment utc domestic defined benefit plans cease accrual additional benefits future service compensation nonunion participants effective december 31 2019 change nonservice pension income expense 170 million 2019 compared 2018 primarily driven inclusion rockwell collins plans 2019 result rockwell collins acquisition onetime curtailment gain 98 million 2019 interest expense net interest expense net decreased 225 million 2020 compared 2019 primarily due decrease interest expense principally driven repayment longterm debt partially offset decrease interest income principally driven interest income 63 million related tax settlements prior year average maturity longterm debt december 31 2020 approximately 14 years interest expense net increased 559 million 2019 compared 2018 primarily due increase interest expense driven debt acquired rockwell acquisition impact august 16 2018 issuance notes representing 11 billion aggregate principal amount average maturity longterm debt december 31 2019 approximately 10 years income taxes 2020 negative effective tax rate result tax expense 575 million loss continuing operations income taxes 2353 million loss continuing operations income taxes includes 3183 million goodwill impairment described “note 2 business acquisitions dispositions goodwill intangible assets” within item 8 form 10k nondeductible tax purposes tax expense includes net deferred tax charges 367 million resulting separation transactions raytheon merger primarily related impairment deferred tax assets incremental tax expense 177 million related disposal businesses including sales collins aerospace ris businesses entry definitive agreement sell forcepoint described “note 2 business acquisitions dispositions goodwill intangible assets” within item 8 form 10k result separation transactions restructuring charges recognized 2020 tax expense also includes 49 million related revaluation tax benefit certain international tax incentives company longer expects meet incentive requirements also included 2020 effective tax rate tax benefits 142 million associated us research development credits 83 million associated foreign derived intangible income fdii 2019 effective tax rate includes tax benefits 290 million primarily associated conclusion audit examination division internal revenue service irs company’s 2014 2015 2016 tax years filing subsidiary company participate amnesty program offered italian tax authority 2019 effective tax rate also includes tax benefits 138 million associated fdii 101 million related us research development credits december 22 2017 tax cuts jobs act 2017 tcja enacted 2018 effective tax rate reflects net charge 744 million tcja related adjustments amount primarily relates nonus taxes become due previously reinvested earnings certain international subsidiaries remitted 2018 effective tax rate also includes tax benefits 102 million associated fdii 73 million related us research development credits additional discussion income taxes effective income tax rate see “income taxes” within critical accounting estimates “note 13 income taxes” within item 8 form 10k net income loss continuing operations attributable common shareowners net loss continuing operations attributable common shareowners 2020 includes following •acquisition accounting adjustments primarily related raytheon merger 1435 million net tax unfavorable impact diluted eps continuing operations 106 •restructuring charges 598 million net tax unfavorable impact diluted eps continuing operations 044 •3240 million primarily nondeductible goodwill intangibles impairment charges related collins aerospace segment unfavorable impact diluted eps continuing operations 237 •significant unfavorable contract adjustments collins aerospace pratt whitney 667 million net tax unfavorable impact diluted eps continuing operations 049 •415 million tax charges connection separation transactions including impairment deferred tax assets expected utilized unfavorable impact diluted eps continuing operations 031 •unfavorable profit impact rmd 412 million net tax related certain direct commercial sales contracts precision guided munitions certain middle east customer unfavorable impact diluted eps continuing operations 030 •increased estimates expected credit losses driven customer bankruptcies additional allowances credit losses 300 million net tax unfavorable impact diluted eps continuing operations 022 •gains sales collins aerospace businesses 240 million net tax favorable impact diluted eps continuing operations 018 net income continuing operations attributable common shareowners 2019 includes following •acquisition accounting adjustments 704 million net tax unfavorable impact diluted eps continuing operations 081 •restructuring charges 186 million net tax unfavorable impact diluted eps continuing operations 021 •tax settlements related interest income tax settlements 341 million favorable impact diluted eps continuing operations 039 •amortization inventory fair value stepup associated rockwell acquisition 140 million net tax unfavorable impact diluted eps continuing operations 016 net income continuing operations attributable common shareowners 2018 includes following •acquisition accounting adjustments 432 million net tax unfavorable impact diluted eps continuing operations 053 •restructuring charges 114 million net tax unfavorable impact diluted eps continuing operations 014 •an income tax charge related estimated impact tcja 744 million unfavorable impact diluted eps continuing operations 092 •the unfavorable impact customer contract matters pratt whitney 220 million net tax unfavorable impact diluted eps continuing operations 027 net income loss discontinued operations attributable common shareowners april 3 2020 completed separation commercial businesses carrier otis effective date historical results carrier otis segments reclassified discontinued operations periods presented see “note 3 discontinued operations” within item 8 form 10k additional information change net income loss discontinued operations attributable common shareowners 2437 million related change diluted earnings loss per share discontinued operations 265 2020 compared 2019 primarily due prior year carrier otis operating activity separation transactions occurred april 3 2020 partially offset higher prior year costs associated separation commercial businesses discussed net income loss discontinued operations 2020 2019 includes 888 million net tax 1284 million net tax respectively costs associated company’s separation commercial businesses separation costs 2020 primarily related debt extinguishment costs 611 million connection early repayment outstanding principal change net income loss discontinued operations attributable common shareowners 2026 million related change diluted earnings loss per share discontinued operations 265 2019 compared 2018 primarily due increased costs associated separation commercial businesses 2019 absence gain carrier’s sale taylor company 591 million net tax 2018 net income loss attributable common shareowners change net income loss attributable common shareowners diluted eps operations 2020 compared 2019 driven decrease continuing operations discussed net income loss continuing operations attributable common shareowners decrease discontinued operations discussed net income loss discontinued operations attributable common shareowners change net income loss attributable common shareowners diluted eps operations 2019 compared 2018 driven increase continuing operations discussed net income loss continuing operations attributable common shareowners partially offset decrease discontinued operations discussed net income loss discontinued operations attributable common shareowners restructuring costs restructuring actions essential component operating margin improvement efforts relate existing recently acquired operations charges generally arise severance related workforce reductions facility exit costs associated consolidation field manufacturing operations costs exit legacy programs continue closely monitor economic environment may undertake restructuring actions keep cost structure aligned demands prevailing market conditions 2020 actions 2020 recorded net pretax restructuring charges 770 million restructuring efforts initiated 2020 primarily related severance restructuring actions pratt whitney collins aerospace response impact operating results related current economic environment primarily caused covid19 pandemic raytheon merger ongoing cost reduction efforts expect incur additional restructuring charges 40 million complete actions targeting complete 2021 majority actions initiated 2020 expect recurring pretax savings continuing operations related actions reach approximately 11 billion annually within one two years approximately 80 total pretax charge require cash payments funded expect continue fund cash generated operations 2020 cash outflows approximately 400 million related 2020 actions 2019 actions 2020 2019 recorded net pretax restructuring charges 10 million 162 million respectively actions initiated 2019 expect incur additional restructuring charges 58 million complete actions targeting complete 2021 majority remaining workforce facility related cost reduction actions initiated 2019 expect annual recurring pretax savings continuing operations related actions reach approximately 200 million annually within two years initiating actions approximately 90 total pretax charge require cash payments funded expect continue fund cash generated operations 2020 cash outflows approximately 40 million related 2019 actions addition 2020 reversed 3 million net pretax restructuring costs restructuring actions initiated 2018 prior 2019 2018 recorded 83 million 158 million respectively net pretax restructuring costs restructuring actions initiated 2018 prior additional discussion restructuring see “note 14 restructuring costs” within item 8 form 10k segment review discussed business overview april 3 2020 united technologies corporation utc completed separation transactions april 3 2020 completed raytheon merger united technologies corporation renamed raytheon technologies corporation result transactions operate four principal business segments collins aerospace systems collins aerospace pratt whitney raytheon intelligence space ris raytheon missiles defense rmd results ris rmd reflect period subsequent completion raytheon merger april 3 2020 historical results carrier otis presented discontinued operations excluded continuing operations segment results periods presented detailed description businesses see “business” within item 1 form 10k conjunction raytheon merger revised measurement segment performance reflect management reviews evaluates operating performance new segment performance measurement certain acquisition accounting adjustments excluded segments’ results order better represent ongoing operational performance segments addition majority corporate expenses allocated segments excluding certain items remain corporate included management’s review segments’ results historical results discussion presentation business segments reflect impact adjustments periods presented also result raytheon merger present fascas operating adjustment outside segment results represents difference service cost component pension postretirement benefit prb expense financial accounting standards fas requirements us gaap pension prb expense us government cost accounting standards cas primarily related ris rmd segments ultimate liability pension prb costs fas cas similar pattern cost recognition different time generally expect recover related ris rmd pension prb liabilities pricing products services us government collins aerospace pratt whitney segments generally record pension prb expense fas basis historical results impacted change segment reporting segments generally based management structure businesses grouping similar operations based capabilities technologies management organization general operating autonomy diversified products services segment total net sales operating profit include intercompany sales profit ultimately eliminated within eliminations also includes certain smaller nonreportable segments defense contracts primary customer us government subject federal acquisition regulation far part 12 intercompany sales profit generally recorded costplus specified fee may differ selling entity would able obtain sales external customers segment results exclude certain acquisition accounting adjustments fascas operating adjustment certain corporate expenses discussed attempt quantify material factors within discussion results segment whenever factors determinable however instances factors cite within segment discussion based upon input measures qualitative information lend quantification discussed context financial results measured output basis therefore quantified discussions given nature business believe total net sales operating profit related operating profit margin percentage disclose discuss segment level relevant understanding management’s view segment performance described total net sales total net sales segment follows operating profit loss operating profit loss segment follows 1 acquisition accounting adjustments 2020 includes 32 billion goodwill impairment loss second quarter 2020 related two collins aerospace reporting units refer “note 2 acquisitions dispositions goodwill intangible assets” item 8 form 10k additional information included segment operating profit estimate completion eac adjustments relate changes operating profit margin due revisions total estimated revenues costs completion changes reflect improved deteriorated operating performance award fee rates full description eac process refer “note 1 basis presentation summary accounting principles” within item 8 form 10k given thousands individual contracts given types complexity assumptions estimates must make ongoing basis favorable unfavorable eac adjustments following aggregate eac adjustments periods presented result raytheon merger ris’s rmd’s longterm contracts accounted percentage completion basis reset zero percent complete merger date since unperformed portion contract merger date represents obligation company impact reducing gross favorable unfavorable eac adjustments segments shortterm exception eac adjustments related loss reserves change net eac adjustments 574 million 2020 compared 2019 primarily due increase net unfavorable eac adjustments 544 million pratt whitney principally due current economic operating environment primarily driven covid19 pandemic net eac adjustments 2019 relatively consistent 2018 significant eac adjustments years ended december 31 2020 2019 2018 discussed business segment’s discussion refer individual segment results information defense backlog defense bookings believe defense backlog defense bookings relevant understanding management’s view defense operations’ performance defense operations consist primarily ris rmd businesses operations defense businesses within collins aerospace pratt whitney segments defense backlog approximately 673 billion 223 billion december 31 2020 2019 respectively total backlog including commercial 1501 billion 1117 billion december 31 2020 2019 respectively defense bookings approximately 312 billion 169 billion 141 billion 2020 2019 2018 respectively defense backlog equivalent remaining performance obligations defense contracts represents dollar value firm orders work performed excludes unexercised contract options potential orders orderingtype contracts eg idiq type contracts defense backlog affected changes foreign exchange rates defense bookings generally represent dollar value new external defense contracts awarded us reporting period include firm orders funding appropriated believe defense bookings important measure future performance defense operations indicator potential future changes operations’ total net sales cannot record revenues new contract without first booking current preceding period defense bookings exclude unexercised contract options potential orders orderingtype contracts eg idiq type contracts reduced contract cancellations terminations bookings recognized current period reflect contract cancellations terminations prior year bookings well impact changes foreign exchange rates directly adjustment backlog period cancellation termination occurs impact determinable contract cancellations terminations also include contract underruns costtype programs defense bookings impacted timing amounts awards given period subject numerous factors including 1 desired capability customer urgency customer needs 2 customer budgets fiscal constraints 3 political economic environmental factors 4 timing customer negotiations 5 timing governmental approvals notifications 6 timing option exercises increases scope addition due factors quarterly bookings tend fluctuate period particularly segment basis result believe comparing bookings quarterly basis periods less one year less meaningful longer periods shorter term changes bookings may necessarily indicate material trend collins aerospace systems 2020 compared 2019 compared 2018 1 provide organic change net sales operating profit collins aerospace pratt whitney segments believe measures useful investors provide transparency underlying performance business allows better yearoveryear comparability organic change excludes effect foreign currency exchange rate fluctuations acquisitions divestitures net restructuring costs significant nonrecurring nonoperational items reconciliation measures reported us gaap amounts provided table 2020 compared 2019 organic sales decrease 66 billion 2020 compared 2019 primarily relates lower commercial aerospace oem sales 37 billion lower commercial aerospace aftermarket sales 34 billion including declines across aftermarket sales channels reductions primarily due current economic environment principally driven covid19 pandemic resulted lower flight hours aircraft fleet utilization commercial oem deliveries decrease partially offset higher military sales 06 billion included organic sales decrease lower commercial aerospace oem aftermarket sales approximately 10 billion related boeing 737 max program fewer upgrades due certain regulatory mandates primarily completed early 2020 organic profit decrease 36 billion 2020 compared 2019 primarily due lower commercial aerospace operating profit 40 billion principally driven lower commercial aerospace oem aftermarket sales volume discussed included lower commercial oem operating profit 157 million significant unfavorable adjustments principally driven expected acceleration fleet retirements certain aircraft decrease partially offset lower research development expenses 02 billion includes impact cost reduction initiatives included operating profit decrease 125 million increased estimates expected credit losses due customer bankruptcies additional allowances credit losses included organic profit 2020 income 72 million related foreign government wage subsidies due covid19 12 million related favorable impact contract related matter first quarter 2020 decrease net sales operating profit due acquisitions divestitures net primarily relates sale collins aerospace military gps spacebased precision optics businesses third quarter 2020 discussed “note 2 acquisitions dispositions goodwill intangible assets” within item 8 form 10k increase operating profit 08 billion 2020 compared 2019 primarily relates gains 595 million sales collins aerospace businesses discussed absence prior year amortization inventory fair value stepup associated rockwell acquisition 181 million absence prior year loss sale business 25 million 2019 compared 2018 organic sales increase 11 billion 2019 compared 2018 primarily reflects higher commercial aerospace aftermarket sales 08 billion higher military sales 04 billion partially offset lower commercial aerospace oem sales 01 billion organic profit 2019 relatively consistent compared 2018 included change organic profit higher commercial aerospace margin contribution 02 billion driven commercial aftermarket sales growth noted partially offset lower commercial aerospace oem margin contribution higher military margin contribution 01 billion driven sales growth noted increase partially offset higher selling general administrative expenses 02 billion higher research development costs 01 billion increase net sales operating profit due acquisitions divestitures net primarily relates acquisition rockwell collins 2018 discussed “note 2 acquisitions dispositions goodwill intangible assets” within item 8 form 10k pratt whitney 2020 compared 2019 compared 2018 1 provide organic change net sales operating profit collins aerospace pratt whitney segments believe measures useful investors provide transparency underlying performance business allows better yearoveryear comparability organic change excludes effect foreign currency exchange rate fluctuations acquisitions divestitures net restructuring costs significant nonrecurring nonoperational items reconciliation measures reported us gaap amounts provided table 2 pratt whitney transactional impact foreign exchange hedging pratt whitney canada pwc netted translational foreign exchange impact presentation purposes table segments foreign exchange transactional impacts included within organicoperational caption respective tables due significance pratt whitney’s overall operating results believe useful segregate foreign exchange transactional impact order clearly identify underlying financial performance 2020 compared 2019 organic sales decrease 41 billion 2020 compared 2019 primarily reflects lower commercial aftermarket sales 38 billion due significant reduction shop visits related spare part sales lower commercial oem sales 11 billion primarily due significant reduction commercial engine deliveries principally driven current economic operating environment primarily due covid19 pandemic declines partially offset higher military sales 08 billion primarily driven increase engine sales aftermarket growth multiple platforms included lower commercial aftermarket sales 04 billion impact sales net unfavorable contract adjustments discussed organic profit decrease 21 billion 2020 compared 2019 primarily driven lower commercial aftermarket operating profit 24 billion driven sales volume decrease discussed unfavorable mix 334 million unfavorable eac adjustment commercial engine aftermarket contract due lower estimated revenues driven change estimated maintenance coverage period unfavorable eac adjustment 129 million related lower estimated revenues due restructuring customer contract 86 million related unfavorable eac adjustment increased allowances warranty legacy fleet related retrofits decrease also driven higher selling general administrative expenses 02 billion primarily driven 257 million increased estimates expected credit losses due customer bankruptcies additional allowances credit losses decrease organic profit partially offset lower research development costs 03 billion includes impact cost reduction initiatives income 153 million related foreign government wage subsidies due covid19 included organic profit increase net unfavorable eac adjustments 544 million included unfavorable eac adjustments discussed significant net unfavorable eac adjustments 62 million based portfolio review commercial aftermarket programs second quarter 2020 consideration estimated lower flight hours change estimated number shop visits related amount estimated costs also included unfavorable eac adjustment 44 million second quarter 2020 military program primarily driven shift estimated overhead costs due lower commercial engine activity discussed decrease operating profit 187 million 2020 compared 2019 primarily due 89 million impairment commercial aircraft program assets current year 43 million reserves related commercial financing arrangement current year 2019 compared 2018 organic sales increase 16 billion primarily reflects higher military sales 08 billion higher commercial oem sales 05 billion higher commercial aftermarket sales 02 billion organic profit increase 02 billion primarily driven higher military margin contribution 02 billion driven sales increase noted higher commercial oem margin contribution 01 billion primarily driven continued yearoveryear cost reduction favorable mix large commercial engine shipments increases partially offset higher research development costs selling general administrative expenses 01 billion 03 billion increase operating profit primarily reflects absence 2018 customer contract settlement raytheon intelligence space nm meaningful increase net sales 10841 million 2020 compared 2019 due raytheon merger april 3 2020 increase operating profit 1014 million related increase operating profit margins 2020 compared 2019 due raytheon merger included operating profit 2020 124 million unfavorable eac adjustments loss reserves related domestic classified fixed price development program net loss position 87 million recorded fourth quarter 2020 backlog bookings backlog 18676 million december 31 2020 compared zero december 31 2019 increase backlog 18676 million due raytheon merger 2020 ris booked 3294 million number classified contracts 236 million produce deliver silent knight radar systems spares us special operations command 229 million perform operations sustainment us air force’s launch test range system ltrs 201 million development operations maintenance domino cyber program department homeland security dhs 193 million global aircrew strategic network terminal global asnt program us air force 157 million military gps user equipment increment 2 miniature serial interface receiver card mgue inc 2 msi program us air force raytheon missiles defense nm meaningful increase net sales 11660 million 2020 compared 2019 due raytheon merger april 3 2020 increase operating profit 890 million related increase operating profit margins 2020 compared 2019 due raytheon merger included operating profit 2020 unfavorable net impact 516 million related certain international contracts described 25 million net favorable eac adjustment due revised estimate costs complete industrial cooperation agreement obligation multiple contracts international customer based upon agreement signed fourth quarter 2020 fourth quarter 2020 rmd reversed 119 million sales work performed subsequent date raytheon merger end third quarter 2020 related operating profit direct commercial sales contracts precision guided munitions certain middle east customer yet obtained regulatory approval discussed “other matters” subsection “business overview” section due recent us presidential congressional election resulting uncertainty surrounding us foreign policy direct commercial sales precision guided munitions customer determined longer probable able obtain regulatory approvals contracts rmd also recognized unfavorable profit impact 516 million related contracts primarily related inventory reserves contract asset impairments recognition supplier related obligations related termination liability expect utilized otherwise directed customers addition reversed 755 million backlog contracts backlog bookings backlog 29593 million december 31 2020 compared zero december 31 2019 increase backlog 29593 million due raytheon merger 2020 rmd booked 2426 million army navytransportable radar surveillancemodel 2 antpy2 radar program kingdom saudi arabia ksa 351 million standard missile3 sm3 missile defense agency mda international customer 340 million stormbreaker us air force 268 million antpy2 radar sustainment program mda 237 million tubelaunched opticallytracked wirelessguided tow missiles us army international customers rmd also booked 1503 million number classified contracts including 354 million major contract 2020 rmd recorded backlog adjustment 755 million certain international contracts discussed eliminations reflects elimination sales income operating profit transacted segments well operating results certain smaller nonreportable business segments including forcepoint llc acquired part raytheon merger subsequently disposed january 2021 discussed “note 2 business acquisitions dispositions goodwill intangible assets” within item 8 form 10k increase intersegment eliminations sales 2020 compared 2019 primarily due raytheon merger april 3 2020 increase nonreportable segment sales 2020 compared 2019 primarily related forcepoint sales decrease nonreportable segments operating profit 2020 compared 2019 primarily due impact foreign currency translation partially offset operating profit related forcepoint nonreportable segment sales 2019 relatively consistent 2018 decrease nonreportable segments operating profit 2019 compared 2018 primarily due impact foreign currency translation corporate expenses unallocated items corporate expenses unallocated items consists costs certain unallowable corporate costs considered part management’s evaluation reportable segment operating performance including restructuring merger costs related raytheon merger net costs associated corporate research development including lower tier air missile defense sensor ltamds program acquired part raytheon merger certain reserves see restructuring costs detailed discussion restructuring costs change corporate expenses unallocated items 223 million 2020 compared 2019 primarily driven increased restructuring costs 201 million 130 million net expenses related ltamds project acquired part raytheon merger increase mergerrelated costs raytheon merger 82 million partially offset 40 million mergerrelated costs rockwell acquisition 2019 unallocated items individual common significant driver corporate expenses unallocated items 2019 relatively consistent 2018 included change mergerrelated costs raytheon merger 83 million 2019 decrease mergerrelated costs rockwell acquisition 78 million fascas operating adjustment segment results ris rmd include pension prb expense determined us government cas generally recover pricing products services us government difference cas expense fas service cost attributable segments us gaap fascas operating adjustment fascas operating adjustment results consolidated pension expense operating profit equal service cost component fas expense us gaap segment results collins aerospace pratt whitney include fas service cost pension prb components fascas operating adjustment follows change fascas operating adjustment 1106 million 2020 compared 2019 due raytheon merger april 3 2020 acquisition accounting adjustments acquisition accounting adjustments include amortization acquired intangible assets related acquisitions amortization property plant equipment fair value adjustment acquired acquisitions amortization customer contractual obligations related loss making market contracts acquired adjustments considered part management’s evaluation segment results components acquisition accounting adjustments follows acquisition accounting adjustments related acquisitions segment follows change acquisition accounting adjustments 4212 million 2020 compared 2019 primarily driven 32 billion goodwill impairment second quarter 2020 related two collins aerospace reporting units increase 11 billion related raytheon merger primarily related amortization acquired intangibles refer “note 2 acquisitions dispositions goodwill intangible assets” within item 8 form 10k additional information goodwill impairment change acquisition accounting adjustments 375 million 2019 compared 2018 primarily driven change 370 million collins aerospace primarily related rockwell acquisition liquidity financial condition assess liquidity terms ability generate cash fund operating investing financing activities principal source liquidity cash flows operating activities addition operating cash flows significant factors affect overall management liquidity include capital expenditures customer financing requirements investments businesses dividends common stock repurchases pension funding access commercial paper markets adequacy available bank lines credit redemptions debt ability attract longterm capital satisfactory terms 684 billion available various credit facilities december 31 2020 discussed business overview response covid19 taken actions preserve capital protect longterm needs business although business continue significantly impacted covid19 currently believe sufficient liquidity withstand potential impacts coronavirus aid relief economic security act cares act along earlier issued irs guidance provides net deferral payroll tax payments realize cash flows benefit 2020 expect impact future years’ cash flows net deferral payroll tax payments addition deferrals required estimated federal foreign state income tax payments due cares act similar state foreign stimulus incentives impacted timing payments within year cares act among things also contains numerous provisions may impact us continue refine understanding impact cares act business ongoing government guidance related covid19 may issued may entitled recovery certain costs pricing products services us government however believe costs probable recovery time therefore assumed recovery within eacs december 31 2020 cash equivalents 88 billion approximately 45 held rtc’s foreign subsidiaries manage worldwide cash requirements reviewing available funds among many subsidiaries conduct business cost effectiveness funds accessed company longer intends reinvest certain undistributed earnings international subsidiaries previously taxed us recorded taxes associated future remittance earnings remainder company’s undistributed international earnings unless tax effective repatriate rtc continue permanently reinvest earnings repatriated 23 billion 16 billion cash year ended december 31 2020 2019 respectively occasion required maintain cash deposits certain banks respect contractual obligations related acquisitions divestitures legal obligations december 31 2020 2019 amount restricted cash 30 million 24 million respectively historically strong credit ratings financial position enabled us issue longterm debt favorable market rates december 31 2020 maximum commercial paper borrowing limit 50 billion commercial paper backed 50 billion revolving credit agreement 160 million commercial paper borrowings december 31 2020 maximum amount shortterm commercial paper borrowings outstanding point time year ended december 31 2020 1904 million use commercial paper borrowings general corporate purposes including funding potential acquisitions pension contributions debt refinancing dividend payments repurchases common stock commercial paper notes outstanding original maturities 90 days date issuance preparation anticipation separation transactions distributions raytheon merger company entered terminated number credit agreements refer “note 10 borrowings lines credit” within item 8 form 10k additional information march 16 2020 entered revolving credit agreement various banks permitting aggregate borrowings 50 billion became available upon completion raytheon merger april 3 2020 credit agreement matures april 3 2025 may 6 2020 entered revolving credit agreement various banks permitting aggregate borrowings 20 billion credit agreement matures may 5 2021 december 31 2020 revolving credit agreements various banks permitting aggregate borrowings 70 billion borrowings outstanding agreements existing universal shelf registration statement filed securities exchange commission sec september 27 2019 indeterminate amount debt equity securities future issuance subject internal limitations amount debt issued shelf registration statement company offered voluntary supply chain finance scf program global financial institution 10 years enables suppliers sole discretion sell receivables company financial institution rate leverages credit rating might beneficial suppliers’ participation scf program impact change terms conditions suppliers therefore economic interest supplier’s decision participate program addition provide guarantees otherwise pay costs program incurred suppliers choose participate direct financial relationship financial institution relates program amounts due suppliers elected participate scf program included accounts payable consolidated balance sheet payment activity related amounts due suppliers elected participate scf program reflected cash flows operating activities consolidated statement cash flow december 31 2020 december 31 2019 amount due suppliers participating scf program included accounts payable approximately 394 million 460 million respectively decrease december 31 2019 december 31 2020 due decreases underlying supply chain purchases scf program impact overall liquidity believe future operating cash flows sufficient meet future operating cash needs continue access commercial paper markets existing credit facilities ability obtain debt equity financing well availability committed credit lines provides additional potential sources liquidity required appropriate cash flowoperating activities 2020 compared 2019 continuing operations cash generated operating activities 2020 1487 million lower 2019 decrease primarily due decrease net income adjustments depreciation amortization 2020 goodwill impairment charge deferred income tax provision stock compensation costs net periodic pension post retirement income expense 1950 million primarily driven decrease pratt whitney collins aerospace result current economic environment primarily driven covid19 partially offset net income ris rmd following raytheon merger included decrease operating cash flows increase pension contributions discussed unfavorable impact accounts payable primarily collins aerospace pratt whitney due decline volume principally driven current economic environment primarily driven covid19 partially offset favorable change inventory collins aerospace pratt whitney due decline volume favorable change accounts receivable contract assets due timing billings collections 2020 across segments company enters various factoring agreements thirdparty financial institutions sell certain receivables factoring activity resulted decrease approximately 16 billion cash flows operating activities year ended december 31 2020 compared prior year decrease factoring activity driven decrease factoring levels collins aerospace pratt whitney primarily driven lower sales volume 2019 compared 2018 continuing operations cash generated operating activities 2019 32 billion higher 2018 increase largely driven increase net income adjustments depreciation amortization deferred income tax provision stock compensation costs net periodic pension postretirement income expense 23 billion increase long term assets liabilities cash flows 11 billion partially offset decrease working capital cash flows 07 billion factoring activity resulted decrease approximately 200 million cash generated operating activities year ended december 31 2019 compared prior year decrease factoring activity primarily driven decrease factoring levels pratt whitney partially offset increase collins aerospace make required discretionary contributions pension plans required contributions primarily determined employee retirement income security act 1974 erisa funding rules require us fully fund us qualified pension plans rolling sevenyear period determined annually based pension protection act 2006 ppa calculated funded status beginning year funding requirements primarily based year’s expected service cost amortization previously unfunded liabilities dependent upon many factors including returns invested assets level market interest rates actuarial assumptions contribute cash rtc shares plans discretion subject applicable regulations december 31 2020 total investment us qualified pension plans rtc shares less 1 total plan assets made following contributions us qualified international defined benefit prb plans’ trusts years ended december 31 contributions us qualified defined benefit plans year ended december 31 2020 include 750 million discretionary contribution raytheon company us qualified pension plans’ trust result discretionary contribution expect make required contributions us qualified plans’ trust 2022 contributions international defined benefit plans year ended december 31 2020 include 51 million discretionary contribution expect make total contributions approximately 50 million international defined benefit plans’ trusts 2021 expected meet exceed current funding requirements global pension prb cash funding requirements expected 370 million 850 million 750 million 2021 2022 2023 respectively includes benefit payments paid directly company operating activities discontinued operations 3790 million decrease cash flows provided operating activities discontinued operations 2020 compared 2019 primarily relates decrease net income discontinued operations driven absence operating activity majority year separation transactions occurred april 3 2020 590 million decrease cash flows provided operating activities discontinued operations 2019 compared 2018 primarily relates decrease net income discontinued operations partially offset increase working capital cash inflows cash flowinvesting activities investing activities primarily include capital expenditures cash investments customer financing assets investmentsdispositions businesses payments related collaboration intangible assets contractual rights provide product new aircraft platforms settlements derivative contracts designated hedging instruments 2020 compared 2019 continuing operations 60 billion increase cash flows used investing activities 2020 compared 2019 primarily relates cash acquired raytheon merger 32 billion sale collins aerospace military gps spacebased precision optics businesses combined 23 billion gross cash proceeds net increase source cash customer financing assets 747 million partially offset increase cash outflows resulting blue canyon technologies acquisition 419 million additions property plant equipment follows capital expenditures decreased 73 million 2020 compared 2019 reductions collins aerospace 321 million pratt whitney 257 million largely offset increased capital expenditures driven raytheon merger dispositions businesses 2020 2556 million primarily related sale collins aerospace military gps spacebased precision optics businesses combined 23 billion gross cash proceeds increases customer financing assets primarily driven additional geared turbofan engines support customer fleets use cash 280 million 787 million 2020 2019 respectively decline within increases customer financing assets due fewer engines added 2020 compared 2019 decrease customer financing assets provided source cash 368 million 2020 compared 128 million 2019 driven sale leaseback transaction sale equipment 2020 refer “note 12 leases” within item 8 form 10k additional discussion sale leaseback transaction 2020 increased collaboration intangible assets approximately 172 million primarily relates payments made 2012 agreement acquire rollsroyce’s collaboration interests international aero engines ag iae december 31 2020 commercial aerospace financing contractual commitments including exclusivity collaboration payments approximately 134 billion refer “note 19 commitments contingencies” within item 8 form 10k details commercial aerospace financing contractual commitments discussed “note 15 financial instruments” within item 8 form 10k enter derivative instruments primarily risk management purposes including derivatives designated hedging instruments derivatives hedging topic financial accounting standards board fasb accounting standards codification asc utilized economic hedges operate internationally normal course business exposed fluctuations interest rates foreign exchange rates commodity prices fluctuations increase costs financing investing operating business used derivative instruments including swaps forward contracts options manage certain foreign currency interest rate commodity price exposures years ended december 31 2020 2019 net cash receipts approximately 32 million 342 million respectively settlement derivative instruments designated hedging instruments october 2020 entered definitive agreement sell forcepoint business completed january 2021 11 billion cash december 2020 completed acquisition blue canyon technologies leading provider small satellites spacecraft systems components 426 million net cash received blue canyon technologies reported raytheon intelligence space segment 2019 compared 2018 continuing operations 146 billion decrease cash flows used investing activities 2019 compared 2018 primarily relates absence cash paid acquire rockwell collins 149 billion november 2018 capital expenditures 19 billion 2019 increased 401 million 2018 increase primarily relates several projects collins aerospace investments production aftermarket capacity pratt whitney dispositions businesses 2019 134 million primarily consisted businesses sold connection rockwell acquisition increases customer financing assets primarily driven additional geared turbofan engines support customer fleets use cash 787 million 988 million 2019 2018 respectively decrease source cash related customer financing assets 128 million 2019 compared 604 million 2018 driven lower repayments customer financing 2019 increased collaboration intangible assets approximately 351 million primarily relates payments made 2012 agreement acquire rollsroyce’s collaboration interests iae investing activities discontinued operations 175 million increase cash flows used investing activities discontinued operations 2020 compared 2019 primarily relates reduction capital expenditures carrier otis approximately 300 million partially offset reduction investment cash approximately 135 million 702 million decrease cash flows provided investing activities discontinued operations 2019 compared 2018 primarily relates absence 10 billion proceeds sale taylor company june 2018 carrier partially offset decrease business acquisition activity cash flowfinancing activities financing activities primarily include issuance repayment shortterm longterm debt payment dividends stock repurchases 2020 compared 2019 continuing operations financing activities cash outflow 39 billion 2020 compared cash outflow 19 billion 2019 change driven increases longterm debt repayments 134 billion 44 billion change net cash transfers discontinued operations increase shortterm borrowing repayments 29 billion increase dividends paid common stock 03 billion partially offset increase longterm debt issuances 192 billion 2020 debt issuances reflect debt incurred carrier otis approximately 6 billion 11 billion respectively net proceeds issuances draws primarily utilized utc extinguish raytheon technologies shortterm longterm debt order exceed maximum applicable net indebtedness required raytheon merger agreement december 31 2020 management remaining authority repurchase approximately 50 billion common stock december 7 2020 share repurchase program shares may purchased open market privately negotiated transactions accelerated share repurchase programs plans complying rules 10b51 10b18 securities exchange act 1934 amended may also reacquire shares outside program time connection surrender shares cover taxes vesting restricted stock required employee savings plan expect engage share repurchase activity 2021 ability repurchase shares subject applicable law 2019 compared 2018 continuing operations financing activities cash outflow 19 billion 2019 compared cash inflow 122 billion 2018 change driven absence 134 billion longterm debt issuances prior year primarily utilized fund rockwell acquisition increase dividends paid common stock 03 billion increase debt repayments 02 billion partially offset increase short term borrowings 13 billion reduction common stock repurchases 02 billion share repurchases follows years ended december 31 board directors authorized following cash dividends years ended december 31 february 6 2021 board directors declared dividend 0475 per share payable march 25 2021 shareowners record close business february 26 2021 following issuances longterm debt 2020 2018 inclusive issuances made carrier otis primarily used company extinguish certain raytheon technologies shortterm longterm debt therefore treated distribution discontinued operations within financing activities continuing operation consolidated statement cash flows 1 debt issuances term loan draws reflect debt incurred carrier otis net proceeds issuances primarily utilized extinguish raytheon technologies shortterm longterm debt order exceed maximum applicable net indebtedness required raytheon merger agreement 2 net proceeds received debt issuances used partially finance cash consideration portion purchase price rockwell collins fees expenses amounts related rockwell acquisition 3 net proceeds debt issuances used fund repayment commercial paper general corporate purposes 4 net proceeds received debt issuances used general corporate purposes issuances longterm debt 2019 made following repayments debt 2020 2019 2018 1 notes assumed connection raytheon merger subsequently repaid 2 connection early repayment outstanding principal raytheon technologies recorded debt extinguishment costs 703 million year ended december 31 2020 classified discontinued operations consolidated statement operations would redeem debt except separation transactions proceeds notes issued may 18 2020 used fund may 19 2020 redemption 3 extinguishment raytheon technologies shortterm longterm debt order exceed maximum net indebtedness required raytheon merger agreement 4 notes assumed connection rockwell collins acquisition subsequently repaid financing activities discontinued operations 12 billion decrease cash flows used financing activities discontinued operations 2020 compared 2019 primarily relates 703 million debt extinguishment costs related early repayment debt 2020 cash distributions made carrier otis 28 billion offset change net transfer activity 45 billion 16 billion decrease cash flows used financing activities discontinued operations 2019 compared 2018 primarily relates change net transfers continuing operations critical accounting estimates preparation financial statements requires management make estimates assumptions affect reported amounts assets liabilities revenues expenses management believes complex sensitive judgments significance consolidated financial statements result primarily need make estimates effects matters inherently uncertain significant areas involving management judgments estimates described actual results areas could differ management’s estimates longterm contract accounting recognize revenue overtime basis substantially defense contracts certain longterm aerospace aftermarket contracts measure progress toward completion contracts percentage completion basis using costs incurred date relative total estimated costs completion incurred costs represent work performed correspond best depict transfer control customer contract costs incurred period time several years estimation costs requires management’s judgment review estimate completion eacs significant contracts periodic basis others less annually change circumstances warrant modification previous estimate due nature work required performed many company’s performance obligations estimation total revenue cost completion complex subject many variables requires significant judgment management contract basis part process management reviews information including limited outstanding key contract matters progress towards completion related program schedule identified risks opportunities related changes estimates revenues costs risks opportunities relate management’s judgment ability cost achieve schedule consideration customerdirected delays reductions scheduled deliveries technical requirements customer activity levels flight hours aircraft landings related variable consideration management’s judgment related considerations become increasingly significant given current economic environment primarily caused covid19 pandemic management must make assumptions estimates regarding contract revenue costs including estimates labor productivity availability complexity scope work performed availability cost materials length time complete performance obligation execution subcontractors availability timing funding customer overhead cost rates current past maintenance cost frequency driven estimated aircraft engine utilization estimated useful lives components among others particular fixedprice development programs involve significant management judgment development contracts nature elements done thus highly subject future unexpected cost growth cost estimates may also include estimated cost satisfying industrial cooperation agreements sometimes form either offset obligations incountry industrial participation icip agreements required certain contracts primarily within ris rmd segments obligations may distinct depending nature cash paid customer satisfy offset obligations recorded reduction transaction price changes estimates net sales cost sales related impact operating profit recognized cumulative catchup basis recognizes cumulative effect profit changes current prior periods based performance obligation’s percentage completion current period significant change one estimates could affect profitability one performance obligations eac adjustments also include establishment loss provisions contracts accounted percentage completion basis net eac adjustments following impact operating results 1 amounts reflect us statutory tax rate 21 approximates tax rate eac adjustments result raytheon merger raytheon company’s contracts accounted percentage completion basis reset zero percent complete merger date since unperformed portion contract merger date represents obligation company additional information related raytheon merger see “note 2 acquisitions dispositions goodwill intangible assets” within item 8 form 10k costs incurred engineering development aerospace products contracts customers capitalized contract fulfillment costs extent recoverable associated contract margin customer funding subsequently amortized oem products delivered customer estimation contract margin requires management’s judgment regularly assess capitalized contract fulfillment costs impairment income taxes management believes earnings periods temporary differences become deductible sufficient realize related future income tax benefits may realized extended period time jurisdictions expiration date tax carryforwards projected operating results indicate realization likely valuation allowance provided assessing need valuation allowance estimate future taxable income considering feasibility ongoing tax planning strategies realizability tax loss carryforwards valuation allowances related deferred tax assets affected changes tax laws changes statutory tax rates future taxable income levels event determine would able realize portion deferred tax assets future would reduce amounts increase tax expense period determination made tax law changes enacted conversely determine would able realize deferred tax assets future excess net carrying amounts would decrease recorded valuation allowance decrease tax expense period determination made ordinary course business inherent uncertainty quantifying income tax positions assess income tax positions record tax benefits years subject examination based upon management’s evaluation facts circumstances information available reporting date tax positions likely tax benefit sustained recorded largest amount tax benefit greater 50 likelihood realized upon ultimate settlement taxing authority full knowledge relevant information income tax positions likely tax benefit sustained tax benefit recognized financial statements addition entered certain internal legal entity restructuring transactions necessary effectuate separation transactions accrued tax transactions based interpretation applicable tax laws determination appropriate entity valuations see “note 1 basis presentation summary accounting principles” “note 13 income taxes” within item 8 form 10k discussion management determined distributions carrier otis april 3 2020 certain related internal business separation transactions qualified taxfree applicable law making determinations applied tax law relevant jurisdictions facts circumstances obtained tax rulings relevant taxing authorities tax opinions andor external tax advice related concluded tax treatment completed distributions carrier otis case certain internal business separation transactions fail qualify taxfree treatment company could subject significant liabilities could material adverse impacts company’s business financial condition results operations cash flows future reporting periods goodwill intangible assets liabilities acquired businesses recorded acquisition method accounting estimated fair values dates acquisition goodwill represents costs excess fair values assigned underlying identifiable net assets acquired businesses intangible assets acquired business combinations consist patents trademarkstradenames developed technology customer relationships intangible assets fair value acquired customer relationship intangibles determined acquisition date based estimates judgments regarding expectations future aftertax cash flows arising followon revenue customer relationships existed acquisition date estimated lives including probability expected future contract renewals revenue less contributory assets charge discounted present value fair value trademark tradename intangible assets determined utilizing relief royalty method form income approach method royalty rate based observed market royalties applied projected revenue supporting tradename discounted present value using appropriate discount rate see “note 1 basis presentation summary accounting principles” within item 8 form 10k details applied approaches valuation intangibles raytheon merger significant intangible assets identified customer relationships tradenames specific intangible assets estimates market participant future cash flows included forecasted revenue growth rates remaining developmental effort operational performance including company specific synergies program life cycles material labor pricing relevant customer contractual market factors customer relationships appropriate net cash flows probabilityadjusted reflect uncertainties associated underlying assumptions including cancellation rates related backlog government demand solesource recompete contracts win rates recompete contracts well risk profile net cash flows utilized valuation addition net cash flows discounted using appropriate discount rate requires judgment management estimated fair value identifiable intangible assets acquired connection raytheon merger approximately 191 billion also included within intangible assets exclusivity assets payments made secure certain contractual rights provide products new commercial aerospace platforms payments capitalized distinct rights obtained sufficient incremental cash flows support recoverability assets established otherwise applicable portion payments expensed gross value contractual commitments december 31 2020 approximately 116 billion approximately 33 billion paid date regularly assess recoverability intangibles dependent upon assumptions around future success profitability underlying aircraft platforms including associated aftermarket revenue streams related future cash flows goodwill intangible assets deemed indefinite lives amortized subject impairment testing annually frequently events changes circumstances indicate asset might impaired impairment test compares carrying values reporting units estimated fair values carrying value exceeds fair value carrying value reduced fair value developing estimates fair value reporting units significant judgment required determination appropriateness using qualitative assessment quantitative assessment quantitative assessments performed fair value primarily based income approaches using discounted cash flow method relief royalty method significant assumptions including sales growth rates projected operating profit terminal growth rates discount rates royalty rates assumptions subject variability year directly impacted among things global market conditions considered deterioration general economic market conditions primarily due covid19 pandemic triggering event first second quarters 2020 requiring impairment evaluation goodwill intangible assets commercial aerospace businesses collins aerospace pratt whitney beginning second quarter 2020 observed several airline customer bankruptcies delays cancellations aircraft purchases airlines fleet retirements repositioning oem production schedules experienced significant decline revenues collins aerospace pratt whitney businesses due decline flight hours aircraft fleet utilization shop visits commercial oem deliveries factors contributed deterioration expectations regarding timing return precovid19 commercial flight activity reduced future sales cash flows expectations second quarter 2020 evaluated collins aerospace pratt whitney reporting units goodwill impairment determined carrying values two six collins aerospace reporting units exceeded sum discounted future cash flows resulting goodwill impairments 32 billion collins aerospace discounted future cash flow estimates developed three scenarios base case downside case upside case scenarios included assumptions regarding future airline flight activity warranty hours original equipment expected repairs upgrades replacements future oem manufacturing schedules related environmental assumptions including individuals’ desire return normal travel business needs travel potential cures vaccines prevent reduce effects covid19 estimates require significant amount judgment subject change based upon factors outside control weighted three scenarios follows 50 base case 40 downside case 10 upside case used weightings believed reflected risks opportunities relative estimates goodwill impairment indicated reporting units evaluated impairment scenarios identify deterioration expectations third quarter 2020 therefore triggering event october 1 2020 changed annual goodwill impairment testing date july 1 october 1 better align timing annual longterm planning process change material consolidated financial statements delay accelerate avoid potential goodwill impairment charges completed annual impairment testing october 1 2020 assessed pratt whitney ris rmd one collins aerospace reporting units using qualitative factors determine whether likely individual reporting unit’s fair value less carrying value step 0 determined testing required based significant changes ris rmd since acquisition raytheon company substantial cushion fair value book value reporting units remainder collins aerospace reporting units compared fair value reporting units respective carrying values step 1 determined additional adjustments carrying value goodwill necessary based annual impairment analysis october 1 2020 reporting unit closest impairment reporting unit collins aerospace fair value excess book value including goodwill 12 billion 7 factors equal discount rate used annual impairment analysis increased 25 basis points fair value excess book value collins aerospace reporting unit would approximately 03 billion 2 alternatively factors equal cash flows decreased 10 fair value collins aerospace reporting unit would decreased approximately 18 billion material changes estimates could occur result additional impairments future periods company continuously monitors events circumstances could negatively impact key assumptions determining fair value goodwill including longterm revenue growth projections profitability discount rates recent market valuations transactions comparable companies volatility company’s market capitalization general industry market macroeconomic conditions possible future changes circumstances including prolonged andor severe covid19 pandemic originally anticipated future changes variables associated judgments assumptions estimates used assessing fair value reporting units including expected long term recovery airline travel precovid19 levels would require company record noncash impairment charge contingent liabilities operating units include businesses sell products services conduct operations throughout world described “note 19 commitments contingencies” within item 8 form 10k contractual regulatory matters normal course business may arise subject us claims litigation note design development production support new aerospace technologies inherently complex subject risk since pw1000g geared turbofan engine entered service 2016 technical issues identified experienced engine typical new engines new aerospace technologies pratt whitney addressed issues various improvements modifications issues resulted financial impacts including increased warranty provisions customer contract settlements reductions contract performance estimates additional technical issues either related program programs may also arise normal course may result financial impacts could material company’s financial position results operations cash flows additionally significant contracts us government subject government oversight audit may require significant adjustment contract prices accrue liabilities associated matters probable liability incurred amount reasonably estimated likely cost incurred accrued based evaluation currently available facts respect matter amount within range estimates likely minimum accrued inherent uncertainty related outcome matters result amounts materially different provisions made respect resolution employee benefit plans sponsor domestic foreign defined benefit pension prb plans assumptions used calculate funded status determined based company data appropriate market indicators evaluated annually december 31 significant events require midyear remeasurement change assumptions actual experience differs assumptions subject recognition pension postretirement net periodic benefit income expense reported consolidated financial statements assumptions used accounting employee benefit plans require judgement major assumptions include discount rate eroa assumptions include mortality rates demographic assumptions retirement age rate increase employee compensation levels health care cost increase projections weightedaverage discount rates used measure pension prb liabilities based yield curves developed using highquality corporate bonds well plan specific cash flows significant plans utilize full yield curve approach estimation service cost interest cost components net periodic benefit expense applying specific spot rates along yield curve used determination benefit obligation relevant discounted projected cash flows following table shows sensitivity pension prb plan liabilities net periodic benefit income 25 basis point change discount rates benefit obligations interest cost service cost december 31 2020 discount rate sensitivities assume change shape yield curve applied projected cash outflows future benefit payments order calculate interest service cost flattening yield curve results narrowing spread interest obligation discount rates would decrease net periodic benefit income conversely steepening yield curve would result increase spread interest obligation discount rates would increase net periodic benefit income eroa average rate earnings expected long term assets invested fund anticipated future benefit payment obligations determining eroa assumption consider target asset allocation plan assets well economic indicators future performance may consult consider opinions financial professionals determining appropriate capital market assumptions return projections validated using simulation model incorporates yield curves credit spreads risk premiums project longterm prospective returns differences actual asset returns given year eroa necessarily indicate change assumption required eroa represents expected average returns longterm horizon net periodic benefit income also sensitive changes eroa increase decrease 25 basis points eroa would increased decreased 2020 net periodic benefit income approximately 116 million must apply financial accounting standards fas requirements us gaap described us government cost accounting standards cas requirements calculate pension prb expense fas cas expense use long term assumptions requiring judgement cas expense calculation different fas requirements calculation methodology ultimate liability pension costs fas cas similar pattern cost recognition different cas pension expense comprised primarily cas service cost well amortization amounts resulting demographic economic experience different expected changes assumptions changes plan provisions cas requires contractors compare liability using discount rate based eroa liability using discount rate based highquality corporate bonds use greater two liability calculations developing cas expense additionally unlike fas cas expense recognized plans fully funded consequently plans become cease fully funded cas due asset liability experience cas expense change accordingly accounting standards discussion recent accounting pronouncements see accounting pronouncements section “note 1 basis presentation summary accounting principles” within item 8 form 10k offbalance sheet arrangements contractual obligations extend variety financial guarantees third parties support unconsolidated affiliates potential financing requirements commercial aerospace customers also obligations arising sales certain businesses assets including indemnities representations warranties environmental health safety tax employment matters circumstances could cause contingent obligations liabilities arising arrangements come fruition include changes underlying transaction eg hazardous waste discoveries etc nonperformance contract customer requests financing deterioration financial condition guaranteed party summary consolidated contractual obligations commitments december 31 2020 follows purchase obligations include amounts committed purchase goods services legally enforceable contracts purchase orders practically feasible determine legally enforceable portion obligation certain longterm purchase agreements include additional expected purchase obligations beyond legally enforceable approximately 60 purchase obligations disclosed represent purchase orders products delivered firm contracts us government full recourse customary contract termination clauses longterm liabilities primarily include amounts december 31 2020 balance sheet representing performance operating cost guarantees estimated environmental remediation costs expected cash funding requirements employee benefit programs amounts beyond 2023 cash funding requirements employee benefits plans included timing expected cash flows associated obligations based upon management’s estimates terms agreements largely based upon historical experience table also reflect unrecognized tax benefits 1225 million timing uncertain except 36 million may become payable 2021 refer “note 13 income taxes” within item 8 form 10k additional discussion unrecognized tax benefits commitments contingencies refer “note 19 commitments contingencies” within item 8 form 10k discussion contractual commitments contingencies environmental matters operations subject environmental regulation federal state local authorities united states regulatory authorities jurisdiction foreign operations result established continually update policies relating environmental standards performance operations worldwide believe expenditures necessary comply present regulations governing environmental protection material effect upon competitive position results operations cash flows financial condition identified potentially responsible party comprehensive environmental response compensation liability act cercla commonly known superfund number sites nature extent environmental concerns vary site share responsibility varies sole responsibility little responsibility estimating liability remediation consider likely proportionate share anticipated remediation expense ability potentially responsible parties fulfill obligations also lease certain governmentowned properties generally liable remediation preexisting environmental contamination sites result generally provide costs consolidated financing statements december 31 2020 2019 835 million 725 million reserved environmental remediation respectively cash outflows environmental remediation 53 million 2020 44 million 2019 41 million 2018 estimate ongoing environmental remediation expenditures next two years exceed approximately 100 million government matters described “critical accounting estimatescontingent liabilities” contracts us government subject audits may recommend certain contract prices reduced comply various government regulations certain payments delayed withheld also subject one investigations legal proceedings initiated us government respect government contract matters see item 3 legal proceedings within part “note 13 income taxes” “note 19 commitments contingencies” within item 8 form 10k discussion government matters item 7aitem 7 managements discussion analysis results operations financial position see managements discussion analysis results operations financial position appearing pages 22 27 corporations 1996 annual report shareowners discussion analysis incorporated reference report item 8item 7 managements discussion analysis results operations financial position see managements discussion analysis results operations financial position appearing pages 2 8 corporations 2000 annual report shareowners discussion analysis incorporated reference form 10k item 7aitem 7 managements discussion analysis financial condition results operations managements discussion analysis financial condition results operations appearing pages 2 13 corporations 2002 annual report shareowners hereby incorporated reference item 7aitem 7 management’s discussion analysis financial condition results operations information set forth section entitled management’s discussion analysis financial condition results operations 2018 annual report filed exhibit 13 form 10k incorporated herein reference item 7aitem 7 managements discussion analysis results operations financial position see managements discussion analysis results operations financial position appearing pages 1 9 corporations 2001 annual report shareowners item 7aitem 7 management’s discussion analysis financial condition results operations information set forth section entitled “management’s discussion analysis financial condition results operations” 2012 annual report filed exhibit 13 form 10k incorporated herein reference item 7aitem 7 management’s discussion analysis financial condition results operations information set forth section entitled management’s discussion analysis financial condition results operations 2017 annual report filed exhibit 13 form 10k incorporated herein reference item 7a nannannanitem 7a quantitative qualitative disclosures market risk see discussion appearing pages 26 27 33 34 corporations 1997 annual report shareowners headings derivative financial instruments hedging activity information concerning market risk sensitive instruments information incorporated reference form 10k item 8item 7a quantitative qualitative disclosures market risk see discussion headings derivative financial instruments page 8 hedging activity pages 15 16 note 13 page 22 corporations 1998 annual report shareowners information concerning market risk sensitive instruments information incorporated reference form 10k item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion headings foreign currency interest rate risk management managements discussion analysis results operations financial position pages 7 8 hedging activity note 1 notes 12 13 pages 15 16 22 23 corporations 1999 annual report shareowners information incorporated reference form 10k item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion headings “market risk management” management’s discussion analysis financial condition results operations pages 12 13 corporation’s annual report shareowners “hedging activity” note 1 “summary accounting principles” note 13 “foreign exchange” note 14 “financial instruments” notes consolidated financial statements pages 23 34 35 corporation’s 2003 annual report shareowners item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion headings “market risk management” management’s discussion analysis financial condition results operations utc’s 2004 annual report “hedging activity” note 1 note 12 note 13 notes consolidated financial statements utc’s 2004 annual report item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion headings “market risk management” “management’s discussion analysis financial condition results operations” 2005 annual report “hedging activity” note 1 note 12 note 13 “notes consolidated financial statements” 2005 annual report item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion headings “market risk management” “management’s discussion analysis financial condition results operations” 2006 annual report “foreign exchange hedging activity” note 1 note 12 “notes consolidated financial statements” 2006 annual report item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading “market risk management” “management’s discussion analysis financial condition results operations” 2007 annual report heading “foreign exchange hedging activity” note 1 note 12 consolidated financial statements 2007 annual report item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading “market risk management” “management’s discussion analysis financial condition results operations” 2008 annual report heading “foreign exchange hedging activity” note 1 note 12 consolidated financial statements 2008 annual report item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading “market risk management” “management’s discussion analysis financial condition results operations” 2009 annual report heading “foreign exchange hedging activity” note 1 note 13 consolidated financial statements 2009 annual report item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading “market risk management” “management’s discussion analysis financial condition results operations” 2010 annual report heading “foreign exchange hedging activity” note 1 note 13 consolidated financial statements 2010 annual report item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading “market risk management” “management’s discussion analysis financial condition results operations” 2011 annual report heading “foreign exchange hedging activity” note 1 note 13 consolidated financial statements 2011 annual report item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading “market risk management” “management’s discussion analysis financial condition results operations” 2013 annual report filed exhibit 13 form 10k heading “foreign exchange hedging activity” financial instruments note 1 note 14 respectively consolidated financial statements 2013 annual report filed exhibit 13 form 10k item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading “market risk management” “management’s discussion analysis financial condition results operations” 2014 annual report filed exhibit 13 form 10k heading “foreign exchange hedging activity” financial instruments note 1 note 14 respectively consolidated financial statements 2014 annual report filed exhibit 13 form 10k item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading market risk management’s discussion analysis financial condition results operations 2015 annual report filed exhibit 13 form 10k heading foreign exchange hedging activity financial instruments note 1 note 14 respectively consolidated financial statements 2015 annual report filed exhibit 13 form 10k item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading market risk management’s discussion analysis financial condition results operations 2016 annual report filed exhibit 13 form 10k heading foreign exchange hedging activity financial instruments note 1 note 14 respectively consolidated financial statements 2016 annual report filed exhibit 13 form 10k item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading market risk management’s discussion analysis financial condition results operations 2019 annual report filed exhibit 13 form 10k headings foreign exchange derivatives hedging activity note 1 financial instruments note 14 consolidated financial statements 2019 annual report filed exhibit 13 form 10k item 8item 7a quantitative qualitative disclosures market risk primary market exposures fluctuations foreign currency exchange rates interest rates relates market risk sensitive instruments primarily cash debt derivative instruments quantify market risk exposure perform sensitivity analysis based hypothetical changes foreign currency exchange rates interest rates changed methodology quantifying market risk exposure second quarter 2020 better align manage risk exposure refer “note 1 basis presentation summary accounting principles” “note 10 borrowings lines credit” “note 15 financial instruments” within item 8nanitem 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion headings market risk management managements discussion analysis results operations financial position page 7 hedging activity note 1 notes 12 13 pages 14 15 21 22 corporations 2000 annual report shareowners information incorporated reference form 10k item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion headings market risk management managements discussion analysis financial condition results operations page 11 corporations annual report shareowners hedging activity note 1 summary accounting principles note 13 foreign exchange note 14 financial instruments notes consolidated financial statements pages 21 29 30 corporations 2002 annual report shareowners item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading market risk management’s discussion analysis financial condition results operations 2018 annual report filed exhibit 13 form 10k headings foreign exchange derivatives hedging activity note 1 financial instruments note 14 consolidated financial statements 2018 annual report filed exhibit 13 form 10k item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion headings “market risk management” management’s discussion analysis results operations financial position page 7 corporation’s annual report shareowners “hedging activity” note 1 “summary accounting principles” note 12 “foreign exchange” note 13 “financial instruments” notes consolidated financial statements pages 16 23 24 corporations 2001 annual report shareowners item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading “market risk management” “management’s discussion analysis financial condition results operations” 2012 annual report filed exhibit 13 form 10k heading “foreign exchange hedging activity” note 1 note 14 consolidated financial statements 2012 annual report filed exhibit 13 form 10k item 8item 7a quantitative qualitative disclosures market risk information concerning market risk sensitive instruments see discussion heading market risk management’s discussion analysis financial condition results operations 2017 annual report filed exhibit 13 form 10k headings foreign exchange derivatives hedging activity note 1 financial instruments note 14 consolidated financial statements 2017 annual report filed exhibit 13 form 10k item 8 item 8 financial statements supplementary data 1993 1992 balance sheets financial statements years 1993 1992 1991 together report thereon price waterhouse dated january 26 1994 appearing pages 36 54 corporations 1993 annual report shareowners incorporated reference report 1993 1992 selected quarterly financial data appearing page 55 corporations 1993 annual report shareowners incorporated reference report item 9item 8 financial statements supplementary data 1994 1993 balance sheets financial statements years 1994 1993 1992 together report thereon price waterhouse llp dated january 26 1995 appearing pages 26 45 corporations 1994 annual report shareowners incorporated reference report 1994 1993 selected quarterly financial data appearing page 46 corporations 1994 annual report shareowners incorporated reference report item 9item 8 financial statements supplementary data 1995 1994 balance sheets financial statements years 1995 1994 1993 together report thereon price waterhouse llp dated january 24 1996 appearing pages 28 45 corporations 1995 annual report shareowners incorporated reference report 1995 1994 selected quarterly financial data appearing page 46 corporations 1995 annual report shareowners incorporated reference report item 9item 8 financial statements supplementary data 1997 1996 balance sheets financial statements years 1997 1996 1995 together report thereon price waterhouse llp dated january 22 1998 appearing pages 28 32 corporations 1997 annual report shareowners incorporated reference form 10k 1997 1996 selected quarterly financial data appearing page 43 corporations 1997 annual report shareowners incorporated reference form 10k item 9item 8 financial statements supplementary data 1998 1997 consolidated balance sheet financial statements years 1998 1997 1996 together report thereon pricewaterhousecoopers llp dated january 21 1999 appearing pages 10 14 corporations 1998 annual report shareowners incorporated reference form 10k 1998 1997 selected quarterly financial data appearing page 25 corporations 1998 annual report shareowners incorporated reference form 10k item 9item 8 financial statements supplementary data 1999 1998 consolidated balance sheet financial statements years 1999 1998 1997 together report thereon pricewaterhousecoopers llp dated january 19 2000 appearing pages 10 14 corporations 1999 annual report shareowners incorporated reference form 10k 1999 1998 selected quarterly financial data appearing page 26 corporations 1999 annual report shareowners incorporated reference form 10k item 9item 8 financial statements supplementary data 2003 2002 consolidated balance sheet financial statements years 2003 2002 2001 together report thereon pricewaterhousecoopers llp dated january 20 2004 appearing pages 17 21 corporation’s 2003 annual report shareowners incorporated reference form 10k 2003 2002 selected quarterly financial data appearing page 41 corporation’s 2003 annual report shareowners incorporated reference form 10k item 9item 8 financial statements supplementary data 2004 2003 consolidated balance sheet financial statements years 2004 2003 2002 together report thereon pricewaterhousecoopers llp dated february 10 2005 utc’s 2004 annual report incorporated reference form 10k 2004 2003 unaudited selected quarterly financial data appearing utc’s 2004 annual report incorporated reference form 10k item 9item 8 financial statements supplementary data 2005 2004 consolidated balance sheet financial statements years 2005 2004 2003 together report thereon pricewaterhousecoopers llp dated february 9 2006 2005 annual report incorporated reference form 10k 2005 2004 unaudited selected quarterly financial data appearing 2005 annual report incorporated reference form 10k item 9item 8 financial statements supplementary data 2006 2005 consolidated balance sheet financial statements years 2006 2005 2004 together report thereon pricewaterhousecoopers llp dated february 8 2007 2006 annual report incorporated reference form 10k 2006 2005 unaudited selected quarterly financial data appearing 2006 annual report incorporated reference form 10k item 9item 8 financial statements supplementary data 2007 2006 consolidated balance sheet financial statements years 2007 2006 2005 together report thereon pricewaterhousecoopers llp dated february 7 2008 2007 annual report incorporated reference form 10k 2007 2006 unaudited selected quarterly financial data appearing 2007 annual report incorporated reference form 10k item 9item 8 financial statements supplementary data 2008 2007 consolidated balance sheet financial statements years 2008 2007 2006 together report thereon pricewaterhousecoopers llp dated february 11 2009 2008 annual report incorporated reference form 10k 2008 2007 unaudited selected quarterly financial data appearing 2008 annual report incorporated reference form 10k item 9item 8 financial statements supplementary data 2009 2008 consolidated balance sheet financial statements years 2009 2008 2007 together report thereon pricewaterhousecoopers llp dated february 11 2010 2009 annual report incorporated reference form 10k 2009 2008 unaudited selected quarterly financial data appearing 2009 annual report incorporated reference form 10k item 9item 8 financial statements supplementary data 2010 2009 consolidated balance sheet financial statements years 2010 2009 2008 together report thereon pricewaterhousecoopers llp dated february 10 2011 2010 annual report incorporated reference form 10k 2010 2009 unaudited selected quarterly financial data appearing 2010 annual report incorporated reference form 10k item 9item 8 financial statements supplementary data 2011 2010 consolidated balance sheet financial statements years 2011 2010 2009 together report thereon pricewaterhousecoopers llp dated february 9 2012 2011 annual report incorporated reference form 10k 2011 2010 unaudited selected quarterly financial data appearing 2011 annual report incorporated reference form 10k item 9item 8 financial statements supplementary data 2013 2012 consolidated balance sheet consolidated financial statements years ended 2013 2012 2011 together report thereon pricewaterhousecoopers llp dated february 6 2014 2013 annual report filed exhibit 13 form 10k incorporated herein reference 2013 2012 unaudited selected quarterly financial data appearing 2013 annual report filed exhibit 13 form 10k incorporated herein reference item 9item 8 financial statements supplementary data 2014 2013 consolidated balance sheet consolidated financial statements years ended 2014 2013 2012 together report thereon pricewaterhousecoopers llp dated february 5 2015 2014 annual report filed exhibit 13 form 10k incorporated herein reference 2014 2013 unaudited selected quarterly financial data appearing 2014 annual report filed exhibit 13 form 10k incorporated herein reference item 9item 8 financial statements supplementary data 2015 2014 consolidated balance sheet consolidated financial statements years ended 2015 2014 2013 together report thereon pricewaterhousecoopers llp dated february 11 2016 2015 annual report filed exhibit 13 form 10k incorporated herein reference 2015 2014 unaudited selected quarterly financial data appearing 2015 annual report filed exhibit 13 form 10k incorporated herein reference item 9item 8 financial statements supplementary data 2016 2015 consolidated balance sheet consolidated financial statements years ended 2016 2015 2014 together report thereon pricewaterhousecoopers llp dated february 9 2017 2016 annual report filed exhibit 13 form 10k incorporated herein reference 2016 2015 unaudited selected quarterly financial data appearing 2016 annual report filed exhibit 13 form 10k incorporated herein reference item 9item 8 financial statements supplementary data 2019 2018 consolidated balance sheet consolidated financial statements years ended 2019 2018 2017 together report thereon pricewaterhousecoopers llp dated february 6 2020 2019 annual report filed exhibit 13 form 10k incorporated herein reference 2019 2018 unaudited selected quarterly financial data appearing 2019 annual report filed exhibit 13 form 10k incorporated herein reference item 9item 8 financial statements supplementary data management’s report internal control financial reporting management rtc responsible establishing maintaining adequate internal control financial reporting internal control financial reporting process designed provide reasonable assurance regarding reliability financial reporting preparation financial statements external reporting purposes accordance accounting principles generally accepted united states america inherent limitations internal control financial reporting may prevent detect misstatements management assessed effectiveness rtc’s internal control financial reporting december 31 2020 making assessment management utilized criteria set forth committee sponsoring organizations treadway commission internal controlintegrated framework released 2013 management concluded based assessment rtc’s internal control financial reporting effective december 31 2020 effectiveness rtc’s internal control financial reporting december 31 2020 audited pricewaterhousecoopers llp independent registered public accounting firm stated report included herein gregory j hayes gregory j hayes president chief executive officer anthony f o’brien anthony f o’brien executive vice president chief financial officer michael j wood michael j wood corporate vice president controller report independent registered public accounting firm shareowners board directors raytheon technologies corporation opinions financial statements internal control financial reporting audited accompanying consolidated balance sheet raytheon technologies corporation subsidiaries “company” december 31 2020 2019 related consolidated statements operations comprehensive income loss changes equity cash flows three years period ended december 31 2020 including related notes collectively referred “consolidated financial statements” also audited company’s internal control financial reporting december 31 2020 based criteria established internal control integrated framework 2013 issued committee sponsoring organizations treadway commission coso opinion consolidated financial statements referred present fairly material respects financial position company december 31 2020 2019 results operations cash flows three years period ended december 31 2020 conformity accounting principles generally accepted united states america also opinion company maintained material respects effective internal control financial reporting december 31 2020 based criteria established internal control integrated framework 2013 issued coso change accounting principle discussed note 1 consolidated financial statements company changed manner accounts leases 2019 basis opinions company’s management responsible consolidated financial statements maintaining effective internal control financial reporting assessment effectiveness internal control financial reporting included accompanying management’s report internal control financial reporting responsibility express opinions company’s consolidated financial statements company’s internal control financial reporting based audits public accounting firm registered public company accounting oversight board united states pcaob required independent respect company accordance us federal securities laws applicable rules regulations securities exchange commission pcaob conducted audits accordance standards pcaob standards require plan perform audits obtain reasonable assurance whether consolidated financial statements free material misstatement whether due error fraud whether effective internal control financial reporting maintained material respects audits consolidated financial statements included performing procedures assess risks material misstatement consolidated financial statements whether due error fraud performing procedures respond risks procedures included examining test basis evidence regarding amounts disclosures consolidated financial statements audits also included evaluating accounting principles used significant estimates made management well evaluating overall presentation consolidated financial statements audit internal control financial reporting included obtaining understanding internal control financial reporting assessing risk material weakness exists testing evaluating design operating effectiveness internal control based assessed risk audits also included performing procedures considered necessary circumstances believe audits provide reasonable basis opinions definition limitations internal control financial reporting company’s internal control financial reporting process designed provide reasonable assurance regarding reliability financial reporting preparation financial statements external purposes accordance generally accepted accounting principles company’s internal control financial reporting includes policies procedures pertain maintenance records reasonable detail accurately fairly reflect transactions dispositions assets company ii provide reasonable assurance transactions recorded necessary permit preparation financial statements accordance generally accepted accounting principles receipts expenditures company made accordance authorizations management directors company iii provide reasonable assurance regarding prevention timely detection unauthorized acquisition use disposition company’s assets could material effect financial statements inherent limitations internal control financial reporting may prevent detect misstatements also projections evaluation effectiveness future periods subject risk controls may become inadequate changes conditions degree compliance policies procedures may deteriorate critical audit matters critical audit matters communicated matters arising current period audit consolidated financial statements communicated required communicated audit committee relate accounts disclosures material consolidated financial statements ii involved especially challenging subjective complex judgments communication critical audit matters alter way opinion consolidated financial statements taken whole communicating critical audit matters providing separate opinions critical audit matters accounts disclosures relate valuation acquired customer relationship tradename intangible assets described note 2 consolidated financial statements company completed merger raytheon company “raytheon” april 3 2020 net consideration 332 billion merger accounted using acquisition method accounting company treated accounting acquirer result merger 129 billion customer relationship intangible assets 54 billion tradename intangible assets recorded fair value customer relationship intangible assets estimated using discounted cash flow valuation method fair value tradename intangible assets estimated using relief royalty valuation method management applied significant judgment determining fair value intangible assets involved use significant assumptions forecasted revenue growth rates discount rate principal considerations determination performing procedures relating valuation acquired customer relationship tradename intangible assets arising merger raytheon critical audit matter significant judgment management determining fair value intangible assets turn led high degree auditor judgment subjectivity effort performing procedures evaluating audit evidence relating management’s assumptions forecasted revenue growth rates discount rate addition audit effort involved use professionals specialized skill knowledge addressing matter involved performing procedures evaluating audit evidence connection forming overall opinion consolidated financial statements procedures included testing effectiveness controls management’s determination forecasted revenue growth rates discount rate assumptions used valuation customer relationship tradename intangible assets procedures also included among others testing management’s process determining fair value customer relationship tradename intangible assets testing management’s process included evaluating appropriateness valuation methods testing completeness accuracy relevance underlying data used valuations evaluating reasonableness significant assumptions related forecasted revenue growth rates discount rate evaluating reasonableness forecasted revenue growth rates involved considering past performance raytheon well economic industry data discount rate evaluated considering cost capital comparable businesses industry factors professionals specialized skill knowledge used assist evaluation company’s discount rate assumption taxfree determinations certain internal separation transactions distributions carrier global corporation otis worldwide corporation described note 13 consolidated financial statements management determined distributions carrier global corporation “carrier” otis worldwide corporation “otis” april 3 2020 certain related internal business separation transactions distributions internal separation transactions referred together “transactions” qualified taxfree applicable law making determinations management applied tax law relevant jurisdictions facts circumstances obtained tax rulings relevant taxing authorities tax opinions andor external tax advice related concluded tax treatment completed distributions carrier otis case certain internal business separation transactions fail qualify taxfree treatment company could subject significant liabilities could material adverse impacts company’s business financial condition results operations cash flows future reporting periods principal considerations determination performing procedures relating taxfree determinations certain internal separation transactions distributions carrier otis critical audit matter significant judgment management applying relevant tax laws regulations assumptions determining certain internal separation transactions distributions carrier otis qualify taxfree status ii significant impact financial statements taxfree determinations determined inappropriate relevant taxing authorities turn led significant degree auditor judgment subjectivity effort performing procedures evaluating audit evidence relating taxfree determination certain internal separation transactions distributions carrier otis addition audit effort involved use professionals specialized skill knowledge addressing matter involved performing procedures evaluating audit evidence connection forming overall opinion consolidated financial statements procedures included testing effectiveness controls relating significant judgments including inputs assumptions relating determination taxfree nature transactions procedures also included among others evaluating information including tax rulings relevant taxing authorities external opinions tax advice tax law relevant evidence used management support management’s position transactions qualified taxfree status professionals specialized skill knowledge used assist evaluation transactions related assumptions certain representations management well application relevant tax laws revenue recognition contract estimates completion described note 1 consolidated financial statements significant portion company’s revenues 566 billion year ended december 31 2020 longterm contracts associated design development manufacture modification complex aerospace defense equipment related services timing satisfaction performance obligations varies across company’s businesses due diverse product service mix customer base contractual terms substantially company’s revenues raytheon intelligence space raytheon missiles defense segments recognized time continuous transfer control customer company’s revenues certain longterm aftermarket contracts within pratt whitney segment recognized contract period series daily performance obligations stand ready provide spare parts product maintenance aftermarket services performance obligations satisfied time revenue recognized percentage completion basis using costs incurred date relative total estimated costs completion measure progress due nature work required performed many company’s performance obligations estimation total revenue cost completion complex subject many variables requires significant judgment management contract basis within raytheon intelligence space raytheon missiles defense segments variables significant judgments relate key contract matters progress towards completion related program schedule identified risks opportunities related changes estimates revenues costs risks opportunities contracts relate management’s ability cost achieve schedule consideration customerdirected delays reductions scheduled deliveries technical requirements customer activity levels related variable consideration management also makes judgments variables related estimates labor productivity availability complexity scope work performed availability cost materials length time complete performance obligation execution company’s subcontractors availability timing funding customer overhead cost rates estimated cost satisfying company’s industrial cooperation agreements required certain contracts within pratt whitney segment variables significant judgments relate current past maintenance cost frequency experience management reviews contract estimates completion periodic basis less annually change circumstances warrant modification previous estimate principal considerations determination performing procedures relating revenue recognition contract estimates completion critical audit matter significant judgment management developing estimates total revenue total costs completion including significant judgments assumptions contract basis turn led high degree auditor judgment subjectivity effort performing procedures evaluating audit evidence relating management’s estimates total revenue total cost completion contracts addressing matter involved performing procedures evaluating audit evidence connection forming overall opinion consolidated financial statements procedures included testing effectiveness controls relating revenue recognition process including controls estimates total revenue total costs completion procedures also included among others testing management’s process developing estimated total revenue total costs completion testing management’s process included evaluating test basis reasonableness certain significant judgments variables considered management specific contract performance obligation evaluating significant judgments assumptions related estimates total revenue total costs completion involved evaluating whether significant judgments assumptions used reasonable considering management’s historical forecasting accuracy ii evidence support relevant aforementioned variables iii consistent application accounting policies iv timely identification circumstances may warrant modification previous estimate certain goodwill unamortized intangible assets impairment assessments described notes 1 2 consolidated financial statements company’s consolidated goodwill intangible asset balances 543 billion 405 billion respectively december 31 2020 intangible assets included unamortized intangible assets 87 billion december 31 2020 goodwill unamortized intangible assets subject impairment testing annually frequently events changes circumstances indicate asset might impaired second quarter 2020 management observed several airline customer bankruptcies delays cancellations aircraft purchases airlines fleet retirements repositioning production schedules factors contributed deterioration management’s expectations regarding timing return precovid19 commercial flight activity reduced future sales cash flows expectations management considered factors triggering event requiring impairment evaluation goodwill intangible assets commercial aerospace businesses carrying value two collins aerospace reporting units exceeded sum discounted cash flows resulting goodwill impairments 32 billion developing estimates fair value reporting units unamortized intangible assets significant judgment required management determination appropriateness using qualitative assessment quantitative assessment quantitative assessments performed goodwill unamortized intangible assets fair value primarily based income approaches using discounted cash flow method relief royalty method respectively significant assumptions related sales growth rates projected operating profit terminal growth rates discount rates royalty rates impairment testing compares carrying values estimated fair values carrying value exceeds fair value carrying value reduced fair value principal considerations determination performing procedures relating certain goodwill unamortized intangible assets quantitative impairment assessments critical audit matter significant judgment management developing fair value measurements assets turn led high degree auditor judgment subjectivity effort performing procedures evaluate management’s fair value measurements applicable significant assumptions goodwill unamortized intangible assets relating sales growth rates projected operating profit terminal growth rates discount rates addition audit effort involved use professionals specialized skill knowledge addressing matter involved performing procedures evaluating audit evidence connection forming overall opinion consolidated financial statements procedures included testing effectiveness controls relating management’s goodwill unamortized intangible assets quantitative impairment assessments including controls valuation company’s reporting units unamortized intangible assets procedures also included among others testing management’s process developing fair value estimates included evaluating appropriateness discounted cash flow relief royalty methods testing completeness accuracy relevance underlying data estimates evaluating significant assumptions used management relating sales growth rates projected operating profit terminal growth rates discount rates evaluating management’s assumptions related sales growth rates projected operating profit terminal growth rates involved evaluating whether assumptions used management reasonable considering current past performance reporting units unamortized intangible assets ii consistency external market industry data iii whether assumptions consistent evidence obtained areas audit professionals specialized skill knowledge used assist evaluation company’s discounted cash flow relief royalty methods terminal growth rate discount rate assumptions pricewaterhousecoopers llp boston massachusetts february 8 2021 served company’s auditor since 1947 raytheon technologies corporation consolidated statement operations see accompanying notes consolidated financial statements raytheon technologies corporation consolidated statement comprehensive income loss see accompanying notes consolidated financial statements raytheon technologies corporation consolidated balance sheet see accompanying notes consolidated financial statements raytheon technologies corporation consolidated statement cash flows 1 amounts inclusive continuing operations discontinued operations payments see accompanying notes consolidated financial statements raytheon technologies corporation consolidated statement changes equity see accompanying notes consolidated financial statements notes consolidated financial statements note 1 basis presentation summary accounting principles preparation financial statements requires management make estimates assumptions affect reported amounts assets liabilities revenues expenses actual results could differ estimates separation transactions distributions april 3 2020 united technologies corporation utc since renamed raytheon technologies corporation completed previously announced separation business three independent publicly traded companies utc carrier global corporation carrier otis worldwide corporation otis separations separation transactions utc distributed outstanding shares carrier common stock outstanding shares otis common stock utc shareowners held shares utc common stock close business march 19 2020 record date distributions utc distributed 866158910 433079455 shares common stock carrier otis respectively distributions effective 1201 eastern time april 3 2020 historical results carrier otis presented discontinued operations excluded continuing operations segment results periods presented unless otherwise indicated amounts activity throughout consolidated financial statements presented continuing operations basis includes reclassification certain long term assets liabilities current using duration related contract program operating cycle refer “note 3 discontinued operations” “consolidation classification” details raytheon merger april 3 2020 following completion separation transactions distributions pursuant agreement plan merger dated june 9 2019 amended utc raytheon company raytheon completed previously announced allstock merger equals transaction raytheon merger upon closing raytheon merger raytheon company became wholly owned subsidiary utc changed name “raytheon technologies corporation” unless context otherwise requires terms “we” “our” “us” “the company” “raytheon technologies” “rtc” mean united technologies corporation subsidiaries referring periods prior raytheon merger combined company raytheon technologies corporation referring periods raytheon merger unless context otherwise requires terms “raytheon company” “raytheon” mean raytheon company subsidiaries prior raytheon merger utc determined accounting acquirer merger result financial statements raytheon technologies year ended december 31 2020 include raytheon company’s financial position results operations period subsequent completion raytheon merger april 3 2020 covid19 pandemic march 2020 coronavirus disease 2019 covid19 declared pandemic world health organization national emergency us government pandemic negatively affected us global economy disrupted global supply chains financial markets resulted significant travel restrictions mandated facility closures shelterinplace social distancing orders numerous jurisdictions around world raytheon technologies taking prudent measures protect health safety employees practicing social distancing performing deep cleaning facilities temperature screening health questionnaires enabling employees work home possible also taken appropriate actions help support communities addressing challenges posed pandemic including production donation personal protective equipment business operations industries operate significantly impacted public private sector policies initiatives us worldwide address transmission covid19 imposition travel restrictions adoption remote working additionally public sentiments regarding air travel also significant impact began experience issues related covid19 first quarter 2020 primarily related limited number facility closures less full staffing disruptions supplier deliveries significantly collins aerospace systems collins aerospace pratt whitney businesses continued disruption air travel commercial activities significant restrictions limitations businesses particularly within aerospace commercial airline industries negatively impacted global supply demand distribution capabilities conditions began second quarter 2020 continued remainder 2020 particular unprecedented decrease air travel resulting covid19 pandemic adversely affecting airline airframer customers demand products services collins aerospace pratt whitney businesses based recent public data revenue passenger miles rpms declined approximately 65 first eleven months 2020 compared prior year due pandemic result airline customers reported significant reductions fleet utilization aircraft grounding unplanned retirements deferred cases cancelled new aircraft deliveries airlines shifted cash conservation behaviors deferring engine maintenance due lower flight hours aircraft utilization requesting extended payment terms deferring delivery new aircraft spare engines requesting discounts engine maintenance airline customers filed bankruptcy due inability meet financial obligations additionally seeing purchase order declines line publicly communicated aircraft production volumes original equipment manufacturer oem customers delay cancel orders continue monitor trends working closely customers continue actively mitigate costs adjust production schedules accommodate declines demand also taking actions preserve capital protect longterm needs businesses including cutting discretionary spending significantly reducing capital expenditures research development spend suspending share buybacks 2020 deferring merit increases implementing temporary pay reductions freezing nonessential hiring repositioning employees defense work furloughing employees needed personnel reductions 2020 recorded total restructuring charges 777 million primarily related personnel reductions collins aerospace pratt whitney businesses preserve capital corporate headquarters due consolidation raytheon merger former raytheon company businesses although experiencing minor impacts experienced significant facility closures significant business disruptions result covid19 pandemic given impacts described resulted covid19 pandemic expect future operating results particularly collins aerospace pratt whitney businesses continue significantly negatively impacted expectations regarding covid19 pandemic potential financial impact based available information assumptions believe reasonable time however actual financial impact highly uncertain subject wide range factors future developments believe longterm outlook aerospace industry remains positive due fundamental drivers air travel demand significant uncertainty respect commercial air traffic levels begin recover whether point capacity return andor exceed precovid19 levels latest estimates recovery may occur 2023 2024 new information may emerge concerning scope severity duration covid19 pandemic well worsening pandemic effect mutating strains whether additional outbreaks pandemic continue occur actions contain pandemic’s spread treat impact timing availability vaccines distribution acceptance efficacy governmental business individual personal actions taken response pandemic including restrictions limitations travel transportation changes leisure business travel patterns work environments among others actions related impacts may trends continue future even pandemic longer poses significant public health risk considered deterioration general economic market conditions primarily due covid19 pandemic triggering event first second quarters 2020 requiring impairment evaluation goodwill intangible assets commercial aerospace businesses collins aerospace pratt whitney beginning second quarter 2020 observed several airline customer bankruptcies delays cancellations aircraft purchases airlines fleet retirements repositioning oem production schedules experienced significant decline revenues collins aerospace pratt whitney businesses due decline flight hours aircraft fleet utilization shop visits commercial oem deliveries factors contributed deterioration expectations regarding timing return precovid19 commercial flight activity reduced future sales cash flows expectations based updated forecast assumptions second quarter 2020 concluded carrying values two collins aerospace reporting units greater respective fair values accordingly recorded goodwill impairment charge 32 billion identify deterioration expectations third quarter 2020 therefore triggering event completed annual goodwill impairment testing october 1 2020 determined additional adjustments carrying value goodwill necessary refer “note 2 acquisitions dispositions goodwill intangible assets” additional information additionally 2020 recorded writedowns nongoodwill assets significant unfavorable estimate completion eac adjustments collins aerospace pratt whitney businesses primarily related •increased estimated credit losses receivables contract assets 387 million •an unfavorable eac adjustment pratt whitney commercial engine aftermarket contract due lower estimated revenues driven change estimated maintenance coverage period 334 million •contract asset inventory impairments collins aerospace due impact lower estimated future customer activity resulting expected acceleration fleet retirements commercial aircraft 146 million •an unfavorable eac adjustment 129 million related lower estimated revenues due restructuring customer contract pratt whitney •an 89 million impairment commercial aircraft program assets pratt whitney •the impairment collins aerospace trade name 57 million •net unfavorable eac adjustments commercial aftermarket contracts pratt whitney based change estimated future customer activity 75 million •an unfavorable eac adjustment pratt whitney related shift overhead costs military contracts 44 million •reserves related commercial financing arrangement pratt whitney 43 million described “note 8 commercial aerospace industry assets commitments” significant exposure related airline airframer customers including significant accounts receivable contract assets balances given uncertainty related severity length pandemic well worsening pandemic mutations strains virus timing impact vaccines whether additional outbreaks pandemic impact across aerospace industry may required record additional charges impairments future periods although impact covid19 commercial business significant currently believe sufficient liquidity withstand current estimated impacts summary accounting principles result raytheon merger separation transactions several accounting policies modified certain additional polices added following represents significant accounting principles raytheon technologies corporation consolidation classification consolidated financial statements include accounts raytheon technologies corporation wholly owned majorityowned otherwise controlled domestic foreign subsidiaries intercompany transactions eliminated classification certain current assets liabilities duration contracts programs utilized define operating cycle generally longer one year included within current assets liabilities contract assets liabilities related aftermarket development arrangements generally span fifteen years result separation transactions distributions raytheon merger certain reclassifications made prior year amounts conform current year presentation reclassifications include presentation current assets liabilities based upon duration operating cycle reclassification certain unbilled accounts receivable accounts receivable net contract assets reclassifications lease amortization within presentation cash flows reclassifications within segment presentation reclassification historical carrier otis results discontinued operations use estimates consolidated financial statements based application us generally accepted accounting principles gaap require us make estimates assumptions future events affect amounts reported consolidated financial statements accompanying notes discussed full extent covid19 pandemic directly indirectly impact business results operations financial condition cash flows including sales expenses reserves allowances asset recoverability eac adjustments depend future developments highly uncertain including new information may emerge concerning covid19 related containment treatment actions well economic impact local regional national international customers markets made estimates impact covid19 within financial statements may changes estimates future periods future events including covid19 effects cannot determined certainty therefore determination estimates requires exercise judgment actual results could differ estimates differences may material consolidated financial statements cash equivalents cash equivalents includes cash hand demand deposits shortterm cash investments highly liquid nature original maturities three months less estimated fair value cash equivalents approximates carrying value due short maturities occasion required maintain cash deposits certain banks respect contractual obligations related acquisitions divestitures legal obligations december 31 2020 2019 amount restricted cash approximately 30 million 24 million respectively restricted cash excluded cash equivalents included assets current assets consolidated balance sheet accounts receivable accounts receivable stated net amount expected collected allowance credit losses established provide expected lifetime credit losses evaluating factors customer creditworthiness historical payment loss experiences current economic conditions age status outstanding receivables see accounting pronouncements section additional information develop allowance credit losses accounting standards update asu 201613 financial instruments credit losses topic 326 measurement credit losses financial instruments unbilled receivables represent revenues currently billable customer terms contract include unbilled amounts commercial contracts payment solely subject passage time items expected billed collected normal course business accounts receivable december 31 2020 2019 includes unbilled receivables 228 million 265 million respectively primarily includes unbilled receivables commercial aerospace customers unbilled receivables subject passage time included contract assets consolidated balance sheet generally classified current contract assets liabilities contract assets liabilities represent difference timing revenue recognition receipt cash customers contract assets reflect revenue recognized performance obligations satisfied partially satisfied advance customer billing contract liabilities relate payments received advance satisfaction performance contract receive payments customers based terms established contracts contract assets contract liabilities generally classified current operating cycle generally longer one year see “note 6 contract assets liabilities” discussion contract assets liabilities inventory stated lower cost estimated realizable value primarily based firstin firstout fifo average cost methods valuation reserves excess obsolete slowmoving inventory estimated comparing inventory levels individual parts future sales forecasts production requirements historical usage rates order identify inventory resale value replacement value less inventoriable cost factors management considers determining adequacy reserves include whether individual inventory parts meet current specifications substituted part currently sold used service part overall market conditions inventory management initiatives manufacturing costs allocated current production contracts commercial aerospace businesses excess costs beyond standard manufacturing costs expensed meet certain thresholds equity method investments ability exercise significant influence control accounted equity method accounting included assets consolidated balance sheet method accounting share net earnings losses investee included income net consolidated statement operations since activities investee closely aligned operations business segment holding investment evaluate equity method investments whenever events changes circumstance indicate carrying amounts investments may impaired decline value equity method investment determined temporary loss recorded earnings current period rtc sells products purchases products services unconsolidated entities accounted equity method considered related parties activity considered material consolidated statement operations consolidated balance sheet rtc customer financing assets customer financing assets cfa relate commercial aerospace businesses provide financing airline customers financing predominately relates products lease lesser extent notes lease receivables certain limited circumstances pay deposits behalf airline customers secure production slots airframers predelivery payments included notes receivables unfunded predelivery payments included within commercial aerospace financing commitments discussed “note 19 commitments contingencies” record revenue lease assets applying financial accounting standards board fasb accounting standards codification asc topic 842 leases interest income notes lease receivables interest income notes financing leases rental income operating lease assets generally included income net consolidated statement operations gains losses sales operating lease assets included product sales cost sales current portion financing arrangements aggregated assets current noncurrent portion financing arrangements aggregated cfa consolidated balance sheet increases decreases cfa funding receipts certain activity generally reflected investing activities consolidated statement cash flows leased assets valued cost reviewed impairment circumstances indicate related carrying amounts may recoverable notes lease receivables valued net amount expected collected notes lease receivables determine specific reserve exposure based difference carrying value receivable estimated fair value related collateral connection evaluation credit risk collectability december 31 2020 2019 reserves related cfa material december 31 2020 2019 significant balances considered delinquent nonaccrual status past due 90 days considered impaired business combinations business acquired fair value identifiable assets acquired liabilities assumed determined excess cost recorded goodwill required preliminary fair value determined business acquired final determination fair value completed later one year date acquisition connection acquisitions rockwell collins 2018 goodrich 2012 lesser extent acquisition raytheon company 2020 recorded assumed liabilities related customer contractual obligations certain contracts economic returns lower could realized market transactions acquisition date measured assumed liabilities based estimated cash flows programs plus reasonable contracting profit margin required transfer contracts market participants liabilities amortized accordance underlying pattern obligations reflected expenses incurred contracts balance contractual obligations 1243 million 1408 million december 31 2020 2019 respectively total consumption contractual obligations years ended december 31 2020 2019 2018 295 million 345 million 252 million respectively future consumption expected follows 223 million 2021 119 million 2022 96 million 2023 115 million 2024 130 million 2025 560 million thereafter goodwill intangible assets goodwill represents costs excess fair values assigned underlying net assets acquired businesses goodwill intangible assets deemed indefinite lives amortized subject impairment testing annually frequently events changes circumstances indicate asset might impaired goodwill impairment test compares carrying values reporting units estimated fair values carrying value exceeds fair value carrying value reduced fair value developing estimates fair value reporting units unamortized intangible assets significant judgment required determination appropriateness using qualitative assessment quantitative assessment quantitative assessments performed fair value primarily based income approaches using discounted cash flow method relief royalty method significant assumptions including sales growth rates projected operating profit terminal growth rates discount rates royalty rates assumptions subject variability year directly impacted among things global market conditions finitelived intangible assets tested impairment events occur indicate net book value recovered future cash flows intangible assets consist patents trademarkstradenames customer relationships exclusivity assets developed technology intangible assets including collaboration assets acquired intangible assets recognized fair value purchase accounting finitelived intangible assets amortized cost sales selling general administrative expenses applicable useful lives exclusivity assets commercial aerospace payments made secure certain contractual rights provide product new aircraft platforms classify amortization payments reduction sales payments capitalized distinct rights obtained sufficient incremental cash flows support recoverability assets established otherwise applicable portion payments expensed addition connection 2012 agreement acquire rollsroyce’s ownership collaboration interests international aero engines ag iae additional payments due rollsroyce contingent upon hour flown june 2027 v2500powered aircraft service acquisition date flight hour payments capitalized collaboration assets amortized cost sales useful lives finitelived intangible assets estimated based upon nature intangible asset industry intangible asset used intangible assets amortized based pattern economic benefits intangible assets consumed represented underlying cash flows may result amortization method straightline commercial aerospace collaboration assets exclusivity arrangements pattern economic benefit generally results amortization development period amortization beginning programs enter full rate production aftermarket cycles pattern economic benefit cannot reliably determined straightline amortization approximates pattern economic benefit straightline amortization method may used range estimated useful lives follows leases account leases accordance asc topic 842 leases adopted january 1 2019 lessee record rightofuse asset lease liability consolidated balance sheet leases terms longer 12 months leases classified either finance operating classification affecting pattern expense recognition consolidated statement operations enter lease agreements use real estate space vehicles information technology equipment certain equipment operating finance leases determine arrangement contains lease inception operating leases included operating lease rightofuse assets accrued liabilities current portion operating lease liabilities operating lease liabilities consolidated balance sheet finance leases considered significant consolidated balance sheet consolidated statement operations rightofuse assets represent right use underlying asset lease term lease liabilities represent obligation make lease payments arising lease rightofuse assets liabilities recognized commencement date based present value lease payments lease term leases provide implicit rate use incremental borrowing rate based information available commencement date determining present value lease payments use implicit rate readily determinable determine incremental borrowing rate market sources including relevant industry rates lease rightofuse assets also include initial direct costs lease prepayments made commencement date reduced lease incentives received commencement date certain leases include variable payments may vary based upon changes facts circumstances start lease exclude variable payments lease rightofuse assets lease liabilities extent considered fixed instead expense variable payments incurred variable lease expense lease expense short duration contracts material component lease expense leases include option extend terminate lease include options recognition rightofuse assets lease liabilities reasonably certain exercise option lease expense generally recognized straightline basis lease term limited instances act lessor primarily commercial aerospace engines majority classified operating leases significant consolidated balance sheet consolidated statement operations longlived assets evaluate potential impairment longlived assets whenever events changes circumstances indicate related carrying amounts may recoverable carrying value longlived assets held used exceeds sum undiscounted expected future cash flows carrying value written fair value order longlived assets considered held disposal must committed plan dispose assets deemed held disposal assets stated lower carrying amount fair value income taxes future income taxes represent tax effects transactions reported different periods tax financial reporting purposes amounts consist tax effects temporary differences tax financial reporting balance sheets tax carryforwards future income tax benefits payables within tax paying component particular jurisdiction offset presentation consolidated balance sheet ordinary course business inherent uncertainty quantifying income tax positions assess income tax positions record tax benefits years subject examination based upon management’s evaluation facts circumstances information available reporting date tax positions morelikelythannot tax benefit sustained recorded largest amount tax benefit greater 50 likelihood realized upon ultimate settlement taxing authority full knowledge relevant information income tax positions morelikelythannot tax benefit sustained tax benefit recognized financial statements applicable associated interest expense also recognized recognize accrued interest related unrecognized tax benefits interest expense penalties incurred would recognized component income tax expense state income tax amounts generally included income tax expense however state income tax payments related raytheon intelligence space ris raytheon missiles defense rmd segments generally recoverable pricing products services us government accordingly state income taxes generally allocated contracts reclassified selling general administrative expenses paid recovered otherwise agreed allocable us government elected account tax global intangible lowtaxed income gilti period cost incurred revenue recognition vast majority revenues longterm contracts associated design development manufacture modification complex aerospace defense equipment related services collins aerospace pratt whitney primarily serve commercial government customers oem aftermarket parts services markets aerospace industry ris rmd primarily provide products services government customers defense industry account contract approval commitment parties rights parties identified payment terms identified contract commercial substance collectability consideration probable certain contracts meet foregoing requirements primarily contracts directly foreign government required obtain certain regulatory approvals cases recognize revenue based likelihood obtaining regulatory approvals based upon known facts circumstances performance obligation promise contract customer transfer distinct good service customer contracts customers contain single performance obligation others contain multiple performance obligations commonly contract contains multiple distinct units engines certain aerospace components spans multiple phases product lifecycle production maintenance support contract’s transaction price allocated distinct performance obligation recognized revenue performance obligation satisfied multiple performance obligations within contract allocate transaction price performance obligation based standalone selling price available standalone selling price available estimate standalone selling price performance obligation generally based expected cost plus margin approach consider contractual consideration payable customer assess variable consideration may affect total transaction price including contractual discounts contract incentive payments estimates award fees flight hours aircraft landings customer usage activities long term maintenance contracts sources variable consideration determining transaction price contract reasonably able estimate include variable consideration transaction price likely amount expect entitled include estimated amounts transaction price extent probable significant reversal cumulative revenue recognized occur uncertainty associated variable consideration resolved estimates based historical experience anticipated performance best judgment time also consider whether contracts contain significant financing component generally timing satisfaction performance obligations varies across businesses due diverse product service mix customer base contractual terms performance obligations satisfied point time certain aerospace components engines spare parts revenue recognized control product transfers customer generally upon product shipment since billing also typically occurs upon product shipment generally contract assets contract liabilities balances related point time sales performance obligations satisfied overtime customer receives benefits perform work customer controls asset produced continuous transfer control product produced customer alternative use contractual right payment performance date recognize revenue overtime basis substantially defense contracts certain longterm aerospace oem aftermarket contracts substantially defense business revenue primarily relates ris rmd segments lesser extent pratt whitney collins aerospace recognized time continuous transfer control customers performance obligations satisfied time revenue recognized percentage completion basis using costs incurred date relative total estimated costs completion measure progress incurred costs represent work performed correspond best depict transfer control customer contract costs include labor materials subcontractors’ costs direct costs indirect costs contracts us government typically subject federal acquisition regulation far priced based estimated actual costs producing goods providing services far provides guidance types costs allowable establishing prices goods services provided us government contracts pricing nonus government contracts based specific negotiations customer typical payment terms us government fixedprice contracts customer pays us either performancebased payments pbps progress payments pbps interim payments equal negotiated percentage contract price based quantifiable measures performance achievement specified events milestones progress payments interim payments 8090 costs incurred work progresses customer retains portion contract price completion contract us government fixedprice contracts generally result revenue recognized excess billings present contract assets consolidated balance sheet us government costtype contracts customer generally pays us costs incurred within short period time nonus government contracts typically receive interim payments work progresses although contracts may entitled receive advance payment advances considered significant financing component used meet working capital demands higher early stages contract protect us party failing adequately complete obligations contract recognize liability advance payments excess revenue recognized present contract liabilities consolidated balance sheet certain longterm aftermarket contracts revenue recognized contract period generally account contracts series daily performance obligations stand ready provide spare parts product maintenance aftermarket services arrangements include sale spare parts integral services customers generally classified service sales corresponding costs classified cost services sold within consolidated statement operations revenue primarily recognized percentage completion basis using costs incurred date relative total estimated costs completion measure progress sufficient historical evidence indicates cost performing services contract incurred otherthanstraightline basis longterm aftermarket contracts receive payment prior delivery products services resulting contract liability balance others deliver products services advance payment resulting contract asset balance contracts often modified account changes contract specifications requirements consider contract modifications exist modification either creates new changes existing enforceable rights obligations contract modifications goods services distinct accounted part existing contract either cumulative catchup basis prospective basis depending nature modification loss provisions contracts recognized extent estimated contract costs exceed estimated consideration products services contemplated contractual arrangement new commitments generally record loss provisions contract signing except certain contracts losses recorded upon receipt purchase order obligates us perform existing commitments anticipated losses contractual arrangements recognized period losses become evident estimating losses products contemplated contractual arrangements include firm quantities product sold contract commercial engine wheels brakes businesses future highly probable sales replacement parts required regulation expected sold subsequently incorporation original equipment commercial engine wheels brakes businesses oem product sold loss combined oem aftermarket arrangement individual sales campaign profitable record oem product losses time product delivery review estimate completion eacs significant contracts periodic basis others less annually change circumstances warrant modification previous estimate due nature work required performed many company’s performance obligations estimation total revenue cost completion complex subject many variables requires significant judgment management contract basis part process management reviews information including limited outstanding key contract matters progress towards completion related program schedule identified risks opportunities related changes estimates revenues costs risks opportunities relate management’s judgment ability cost achieve schedule consideration customerdirected delays reductions scheduled deliveries technical requirements customer activity levels flight hours aircraft landings related variable consideration management’s judgment related considerations become increasingly significant given current economic environment primarily caused covid19 pandemic management must make assumptions estimates regarding contract revenue costs including estimates labor productivity availability complexity scope work performed availability cost materials length time complete performance obligation execution subcontractors availability timing funding customer overhead cost rates current past maintenance cost frequency driven estimated aircraft engine utilization estimated useful lives components among others cost estimates may also include estimated cost satisfying industrial cooperation agreements sometimes form either offset obligations incountry industrial participation icip agreements required certain contracts primarily within ris rmd segments obligations may distinct depending nature cash paid customer satisfy offset obligations recorded reduction transaction price changes estimates net sales cost sales related impact operating profit contracts recognized time recognized cumulative catchup basis recognizes cumulative effect profit changes current prior periods based performance obligation’s percentage completion current period significant change one estimates could affect profitability one performance obligations eac adjustments also include establishment loss provisions contracts accounted percentage completion basis net eac adjustments following impact operating results 1 amounts reflect us statutory tax rate 21 approximates tax rate eac adjustments additional discussion significant unfavorable eac adjustments see covid19 pandemic discussion 2020 2019 2018 revenue reduced net 407 million 106 million increased 72 million respectively performance obligations satisfied partially satisfied previous periods primarily relates eac adjustments impacted revenue result raytheon merger raytheon company’s contracts accounted percentage completion basis reset zero percent complete date completion raytheon merger since unperformed portion contract date represents obligation company impact reducing gross favorable unfavorable eac adjustments segments shortterm exception eac adjustments related loss contracts additional information related raytheon merger see “note 2 acquisitions dispositions goodwill intangible assets” collins aerospace pratt whitney businesses incur contract fulfillment costs engineering development aerospace oem products directly related existing anticipated contracts customers costs generate enhance ability satisfy performance obligations contracts capitalize costs contract fulfillment costs extent costs recoverable associated contract margin customer funding subsequently amortize costs related performance obligations satisfied instances intellectual property transfer customer generally defer customer funding product engineering development recognize revenue related performance obligations satisfied capitalized contract fulfillment costs 1981 million 1519 million december 31 2020 2019 respectively classified assets consolidated balance sheet included operating activities net consolidated statement cash flows regularly assess capitalized contract fulfillment costs impairment 111 million impairment contract fulfillment costs 2020 impairment 2019 2018 costs obtain contracts material view risks costs associated developing new engines large upfront investments required often require returns generated full estimated life engine pratt whitney entered certain collaboration arrangements sales costs risks shared sales generated engine programs spare parts sales aftermarket business collaboration arrangements recorded consistent revenue recognition policies consolidated financial statements amounts attributable collaborators share sales recorded cost sales consolidated financial statements based upon terms nature arrangement costs associated engine programs collaborative arrangements expensed incurred arrangements collaborators contribute program share engine parts incur production costs make certain payments shared joint program costs reimbursement collaborators share program costs recorded reduction related expense item time december 31 2020 collaborators’ interests commercial engine programs ranged 13 49 inclusive portion pratt whitney’s interests held participants pratt whitney principal participant existing collaborative arrangements exception engine alliance ea joint venture ge aviation markets manufactures gp7000 engine airbus a380 aircraft individually significant collaborative arrangements none collaborators individually 31 share individual program following table illustrates consolidated statement operations classification amounts attributable transactions arising collaborative arrangements participants period presented collins aerospace pratt whitney businesses may offer customers incentives purchase products may result payments made customers treated reduction sales remaining performance obligations rpo represents aggregate amount total contract transaction price unsatisfied partially unsatisfied total rpo 1501 billion december 31 2020 total rpo december 31 2020 expect approximately 30 recognized sales next 12 months percentage rpo recognized sales next 12 months depends current estimates future developments highly uncertain cannot predicted including new information may emerge concerning scope severity duration covid19 pandemic actions contain spread treat impact governmental business individuals’ actions taken response pandemic may result customer delays order cancellations research development companysponsored research development costs including costs related company’s portion connection costsharing arrangements charged expense incurred recovery costsharing arrangements recorded reduction research development expense earned customersponsored research development projects performed contracts customers accounted contract costs reported cost sales related revenue generating contracts foreign exchange conduct business many different currencies accordingly subject inherent risks associated foreign exchange rate movements financial position results operations many foreign subsidiaries often measured using local currency functional currency foreign currency denominated assets liabilities translated us dollars exchange rates existing respective balance sheet dates income expense items translated average exchange rates respective periods aggregate effects translating balance sheets subsidiaries deferred separate component accumulated comprehensive loss aocl shareowners’ equity derivatives hedging activity use derivative instruments including swaps forward contracts options help manage certain foreign currency time help manage interest rate commodity price exposures derivative instruments viewed risk management tools us used trading speculative purposes nature financial instruments involve market credit risks enter derivative financial instruments major investment grade financial institutions policies monitor credit risk counterparties limit counterparty exposure concentration risk diversifying counterparties assurance anticipate material nonperformance counterparties enter transactions subject enforceable master netting arrangements similar agreements various counterparties however elected offset multiple contracts single counterparty result fair value derivative instruments loss position offset fair value derivative instruments gain position derivatives used hedging purposes may designated effective hedge identified risk exposure inception contract derivative instruments recorded balance sheet fair value derivatives used hedge foreign currency denominated balance sheet items reported directly earnings along offsetting transaction gains losses items hedged derivatives used hedge forecasted cash flows associated foreign currency commitments forecasted commodity purchases may accounted cash flow hedges deemed appropriate gains losses derivatives designated cash flow hedges recorded comprehensive income reclassified earnings component product sales expenses applicable hedged transaction occurs cash payments receipts derivatives designated cash flow hedges recorded operating activities net within consolidated statement cash flows extent previously designated hedging transaction longer effective hedge ineffectiveness measured hedging relationship recorded currently earnings period occurs extent hedge accounting criteria met foreign currency forward contracts utilized economic hedges changes fair value contracts recorded currently earnings period occur cash receipts payments related settlement derivatives designated hedging instruments recorded investing cash flows within consolidated statement cash flows additional information pertaining foreign currency forward contracts net investment hedging included “note 15 financial instruments” environmental investigatory remediation operating maintenance costs accrued probable liability incurred amount reasonably estimated likely cost incurred accrued based evaluation currently available facts respect individual site including existing technology current laws regulations prior remediation experience amount within range estimates likely minimum accrued sites multiple responsible parties consider likely proportionate share anticipated remediation costs ability parties fulfill obligations establishing provision costs liabilities fixed reliably determinable future cash payments discounted portion costs eligible future recovery pricing products services us government regularly assess probability recovery costs requires us make assumptions extent cost recovery contracts amount future contract activity us government consider recovery probable based government contracting regulations history receiving reimbursement costs accordingly recorded future recovery costs us government within assets consolidated balance sheet accrued environmental liabilities reduced potential insurance reimbursements potential recoveries pursuing parties see “note 19 commitments contingencies” additional details environmental remediation activities pension postretirement obligations us gaap requires balance sheet recognition overfunded underfunded status pension postretirement benefit prb plans funded status measured least annually fourth quarter represents difference plans’ projected benefit obligation pbo fair market value plans’ assets changes pension prb plans’ funded status result company actions contributions changes plan provisions gains losses gains losses primarily result changes assumptions actual experience differs assumptions major assumptions include discount rate expected return plan assets eroa gains losses recorded comprehensive income net tax effects amortized component net periodic benefit income expense calculated “marketrelated value” plan assets used develop amount deferred asset gains losses amortized marketrelated value assets equal fair value assets adjusted reflect recognition subsequent amortization difference actual expected asset returns fiveyear period marketrelated value assets used calculate expected return assets included net periodic benefit income expense company elected use “corridor” approach amortization gains losses limits expense recognition net outstanding gains losses excess greater 10 pbo 10 marketrelated value assets gains losses exceeding corridor amortized net periodic benefit income expense either projected average remaining employee service period projected average remaining lifetime inactive participants depending plan net periodic benefit income expense split operating profit nonoperating income whereby service cost component included operating profit remaining components included nonservice pension income expense product performance obligations extend performance operating cost guarantees beyond normal service warranty policies extended periods products particularly commercial aircraft engines liability guarantees based upon future product performance durability accrue costs probable reasonably estimated addition incur discretionary costs service products connection product performance issues costs associated product performance operating cost guarantees require estimates full terms agreements require management consider factors extent future maintenance requirements interval flight repair time future cost material labor perform services cost estimates largely based upon historical experience see “note 18 guarantees” discussion accounting pronouncements june 2016 fasb issued asu 201613 financial instruments credit losses topic 326 measurement credit losses financial instruments asu related amendments collectively credit loss standard modifies impairment model utilize expected loss methodology place incurred loss methodology financial instruments including trade receivables contract assets offbalance sheet credit exposures credit loss standard requires consideration broader range information estimate expected credit losses including historical information current economic conditions reasonable forecast period asu requires statement operations reflect estimates expected credit losses newly recognized financial assets well changes estimate expected credit losses taken place period may result earlier recognition certain losses adopted standard effective january 1 2020 utilizing modified retrospective approach cumulativeeffect noncash adjustment retained earnings january 1 2020 recorded amount 59 million adoption standard material impact company’s consolidated financial statements exposed credit losses primarily sales products services commercial customers recorded trade receivables contract assets longterm receivables notes lease receivables consolidated balance sheet significant exposure credit losses related sales products services government customers method developing allowance credit losses involves making informed judgments regarding whether adjustment necessary historical loss experiences reflect expectations around current economic conditions reasonable supportable forecast periods applicable utilize current economic market data well internal external information available us inform decision making certain circumstances may able develop reasonable supportable forecasts contractual term financial asset offbalance sheet exposure periods beyond able make obtain reasonable supportable forecasts revert historical loss experience information determine credit ratings customer portfolio based upon public information obtained directly customers conduct review customer credit ratings published historical credit default rates different rating categories multiple thirdparty aircraft value publications basis validate reasonableness allowance credit losses balances quarterly events circumstances warrant addition credit quality indicators factors considered evaluation assessing collectability risk include underlying value collateral security interests significant past due balances historical losses existing economic conditions including geographic political risk credit limit established customer based outcome review customer credit ratings range customers extremely strong capacity meet financial obligations customers whose uncollateralized receivable default may require collateral prepayment mitigate credit risk estimate expected credit losses financial assets similar risk characteristics determine asset impaired based historical experience current information reasonable forecast period risk unable collect amounts due according contractual terms agreement monitor ongoing credit exposure reviews customer balances contract terms due dates current economic conditions dispute resolution estimated credit losses written period financial asset longer collectible also exposed credit losses offbalance sheet exposures certain financial guarantees financing commitments assessed potential exposures concluded material associated credit losses december 31 2020 december 2019 fasb issued asu 201912 income taxes topic 740 simplifying accounting income taxes amendments update remove certain exceptions topic 740 including exception incremental approach intraperiod tax allocation loss continuing operations income gain items exception requirement recognize deferred tax liability equity method investments foreign subsidiary becomes equity method investment exception ability recognize deferred tax liability foreign subsidiary foreign equity method investment becomes subsidiary exception general methodology calculating income taxes interim period yeartodate loss exceeds anticipated loss year also additional areas guidance regards franchise taxes partially based income interim recognition enactment tax laws rate changes provisions asu effective years beginning december 15 2020 currently evaluating impact asu consolidated financial statements new pronouncements issued effective december 31 2020 expected material impact financial position results operations liquidity note 2 business acquisitions dispositions goodwill intangible assets business acquisitions investments businesses net cash acquired 2020 2019 2018 totaled 35077 million including debt assumed 4700 million stock issued 33166 million 9 million 30783 million including debt assumed 7784 million stock issued 7960 million respectively investments businesses 2020 2018 primarily consisted acquisition raytheon company rockwell collins inc rockwell collins respectively raytheon merger noted april 3 2020 pursuant agreement plan merger dated june 9 2019 amended raytheon merger agreement utc raytheon company completed previously announced allstock merger equals following completion utc separation transactions distributions raytheon company previously new york stock exchange nyse rtn shares ceased trading prior market open april 3 2020 share raytheon common stock converted merger right receive 23348 shares utc common stock previously traded nyse ticker symbol “utx” upon closing raytheon merger utc’s name changed “raytheon technologies corporation” shares common stock began trading april 3 2020 nyse ticker symbol “rtx” total consideration calculated follows fair value rtc common stock issued raytheon company outstanding common stock vested equity awards calculated follows 1 represents raytheon company stock awards vested result raytheon merger considered “change control” purposes raytheon 2010 stock plan certain raytheon company restricted stock awards raytheon company restricted stock unit rsu awards issued raytheon 2010 stock plan vested accelerated basis result raytheon merger vested awards converted right receive rtc common stock determined product 1 number vested awards 2 exchange ratio 2 exchange ratio equal 23348 shares utc common stock share raytheon company common stock accordance raytheon merger agreement 3 price per share rtc common stock based rtc opening stock price april 3 2020 preliminary allocation consideration transferred net assets acquired accounting raytheon merger acquisition method required measure identifiable assets acquired liabilities assumed acquiree raytheon company fair values closing date following amounts represent preliminary determination fair value identifiable assets acquired liabilities assumed raytheon merger december 31 2020 majority valuation studies necessary determine fair market value assets acquired liabilities assumed reviewed finalized however assessment certain contingencies including environmental liabilities pension postretirement benefit obligations taxes remain open completion related valuation analyses expect finalize purchase price allocation process first quarter 2021 finalize valuations reviews potential adjustments made could material relation preliminary values presented fair value adjustments raytheon company’s identified assets liabilities included increase fixed assets 11 billion fair value adjustments also included preliminarily estimated increase future pension postretirement benefit obligations 36 billion primarily related remeasurement liability based market conditions raytheon merger closing date includes incremental adjustment 980 million fourth quarter 2020 principally due refinement demographic assumptions information see “note 11 employee benefit plans” determining fair value identifiable assets acquired liabilities assumed review conducted significant contingent assets liabilities existing closing date preliminary assessment note significant contingencies related existing legal government action fair values customer relationship intangible assets determined using discounted cash flow valuation method form income approach estimated future cash flows attributable asset adjusted exclude future cash flows attributed supporting assets trade names fixed assets amount duration cash flows considered market participant perspective estimates market participant future cash flows require significant management judgment included forecasted revenue growth rates remaining developmental effort operational performance including company specific synergies program life cycles material labor pricing relevant customer contractual market factors appropriate net cash flows probabilityadjusted reflect uncertainties associated underlying assumptions including cancellation rates related backlog government demand solesource recompete contracts win rates recompete contracts well risk profile net cash flows utilized valuation probabilityadjusted future cash flows discounted present value using appropriate discount rate requires significant judgment management customer relationship intangible assets amortized based pattern economic benefits expect realize estimated economic life underlying programs fair value tradename intangible assets determined utilizing relief royalty method form income approach method royalty rate based observed market royalties applied projected revenue supporting tradename discounted present value using forecasted revenue growth rate projections discount rate respectively requires significant judgment management tradename intangible assets determined indefinite life developed technology intangible assets amortized based pattern economic benefits intangible assets included consist following also identified customer contractual obligations loss making programs recorded liabilities 222 million related programs based difference actual expected operating loss normalized operating profit liabilities liquidated based expected pattern expenses incurred contracts recorded 215 billion goodwill result raytheon merger primarily relates expected synergies combining operations value existing workforce goodwill generated result raytheon merger nondeductible tax purposes mergerrelated costs mergerrelated costs expensed incurred 2020 approximately 142 million transaction integration costs incurred excludes 23 million transaction costs related divestitures required regulatory approval discussed dispositions costs recorded selling general administrative expenses within consolidated statement operations supplemental proforma data raytheon company’s results operations included rtc’s financial statements period subsequent completion raytheon merger april 3 2020 following unaudited supplemental proforma data presents consolidated information raytheon merger completed january 1 2019 proforma results calculated combining results raytheon technologies standalone results raytheon company preacquisition periods adjusted account certain costs would incurred preacquisition period results reflect raytheon technologies continuing operations basis order accurately represent structure raytheon technologies completion separation transactions raytheon merger unaudited supplemental proforma data includes following significant adjustments made account certain costs would incurred acquisition completed january 1 2019 adjusted applicable tax impact merger completed april 3 2020 proforma adjustments table include required adjustments april 3 2020 1 reflects additional amortization acquired raytheon company’s intangible assets recognized fair value purchase accounting eliminates historical raytheon company intangible asset amortization expense 2 reflects amortization fixed asset fair value adjustment acquisition date 3 reflects additional amortization liabilities recognized certain acquired loss making contracts acquisition date 4 reflects difference prepayments related extended arrangements preliminary fair value assumed performance obligations satisfied 5 represents elimination unamortized prior service costs actuarial losses result fair value purchase accounting 6 reflects elimination transactionrelated fees incurred rtc raytheon company connection raytheon merger assumes fees incurred first quarter 2019 7 reflects amortization fair market value adjustment related raytheon company 8 reflects elimination amortization recognized deferred commissions eliminated purchase accounting unaudited supplemental proforma financial information reflect potential realization cost savings related integration two companies proforma data considered indicative results would occurred acquisition consummated january 1 2019 indicative future results december 2020 completed acquisition blue canyon technologies leading provider small satellites spacecraft systems components 426 million net cash received blue canyon technologies reported raytheon intelligence space segment connection acquisition preliminarily recorded 266 million goodwill primarily related expected synergies combining operations value existing workforce expected deductible tax purposes 141 million intangible assets primarily related customer relationships purchase price allocation process expected complete 2021 conclusion final reviews rockwell collins acquisition november 26 2018 completed acquisition rockwell collins rockwell acquisition leader aviation highintegrity solutions commercial military customers well leadingedge avionics flight controls aircraft interior data connectivity solutions terms rockwell acquisition agreement share common stock par value 001 per share rockwell collins issued outstanding immediately prior effective time rockwell acquisition shares held rockwell collins company riveter merger sub corp respective wholly owned subsidiaries converted right receive 1 9333 cash without interest 2 037525 shares company common stock together acquisition consideration less applicable withholding taxes cash paid lieu fractional shares total aggregate consideration payable rockwell acquisition 155 billion cash 149 billion net cash acquired 622 million shares company common stock addition 78 billion rockwell collins debt outstanding time rockwell acquisition equated total enterprise value 306 billion including 78 billion rockwell collins’ outstanding debt cash consideration utilized rockwell acquisition partially financed issuance 110 billion aggregate principal notes august 16 2018 net proceeds 109 billion remainder cash consideration utilized repatriated cash equivalents cash flow generated operating activities acquisitionrelated costs acquisitionrelated costs expensed incurred 2019 2018 40 million 112 million respectively transaction integration costs incurred related rockwell acquisition costs recorded selling general administrative expenses within consolidated statement operations supplemental proforma data rockwell collins’ results operations included rtc’s financial statements period subsequent completion acquisition november 26 2018 rockwell collins contributed sales approximately 778 million operating profit approximately 11 million year ended december 31 2018 following unaudited supplemental proforma data presents consolidated information acquisition completed january 1 2017 proforma results calculated combining results rtc standalone results rockwell collins preacquisition periods adjusted account certain costs would incurred preacquisition period unaudited supplemental proforma data includes following significant adjustments made account certain costs would incurred acquisition completed january 1 2017 adjusted applicable tax impact acquisition rockwell collins completed november 26 2018 proforma adjustments table include required adjustments november 26 2018 1 reflects elimination inventory stepup amortization recorded rtc 2018 would completed within first two quarters 2017 additionally adjustment reflects amortization fixed asset fair value adjustment acquisition date 2 reflects additional amortization acquired rockwell collins’ intangible assets recognized fair value purchase accounting eliminates historical rockwell collins intangible asset amortization expense 3 reflects additional amortization liabilities recognized acquired contracts terms less favorable could realized market transactions acquisition date eliminates rockwell collins historical amortization liabilities 4 reflects elimination transactionrelated fees incurred rtc rockwell collins connection acquisition assumes fees incurred first quarter 2017 5 reflects additional interest expense incurred debt finance acquisition rockwell collins reduces interest expense debt fair value adjustment would amortized 6 reflects elimination rockwell collins capitalized preproduction engineering amortization conform rtc policy 7 reflects adjustments elimination amortization prior service cost actuarial loss amortization recorded rockwell collins result fair value purchase accounting net impact revised pension postretirement benefit expense determined rtc’s plan assumptions 8 reflects adjustments rockwell collins revenue recognition adopted new revenue standard january 1 2018 primarily relates capitalization contract costs changes timing sales recognition contracts requiring time method revenue recognition partially offset deferral revenue recognized oem product engineering development 9 reflects elimination entities required sold regulatory approvals unaudited supplemental proforma financial information reflect potential realization cost savings related integration two companies proforma data considered indicative results would occurred acquisition related financing consummated january 1 2017 indicative future results dispositions 2020 2019 2018 cash inflows related dispositions 2556 million 134 million 74 million respectively discussed “note 3 discontinued operations” april 2 2020 carrier otis entered separation distribution agreement utc since renamed raytheon technologies corporation pursuant among things utc agreed separate three independent publicly traded companies utc carrier otis distribute outstanding common stock carrier otis utc shareowners held shares utc common stock close business march 19 2020 utc distributed 866158910 433079455 shares common stock carrier otis respectively distributions result distributions carrier otis independent publicly traded companies may 2020 order meet requirements regulatory approval raytheon merger completed sale airborne tactical radios business 231 million cash net transactionrelated costs business part ris segment transaction occurred subsequent raytheon merger gain 199 million recorded consolidated statement operations rather recorded part fair value net assets acquired preliminary allocation consideration transferred net assets acquired raytheon merger discussed income taxes related disposed business period closing raytheon merger disposal date material third quarter 2020 accordance conditions imposed regulatory approval raytheon merger completed sale collins aerospace military global positioning system gps spacebased precision optics businesses 23 billion cash resulting aggregate pretax gain net transaction costs 564 million 240 million tax 595 million included income net partially offset 23 million aggregate transaction costs included selling general administrative costs 8 million expense included nonservice pension income expense within consolidated statement operations income taxes 2020 date sale full year 2019 businesses 94 million 153 million respectively october 2020 entered definitive agreement sell forcepoint business completed january 2021 11 billion cash december 31 2020 related assets approximately 19 billion liabilities approximately 855 million accounted held sale fair value less cost sell however forcepoint qualify presentation discontinued operations held sale assets liabilities presented assets current accrued liabilities respectively consolidated balance sheet assets held sale included 14 billion goodwill intangible assets breakout major classes assets liabilities provided assets liabilities held sale material expect recognize pretax gain loss within consolidated statement operations related sale forcepoint difference fair value determined purchase price book value net assets recorded part fair value net assets acquired preliminary allocation consideration transferred net assets acquired raytheon merger results forcepoint included eliminations segment results goodwill changes goodwill balances year ended 2020 follows company reviews goodwill impairment annually frequently events changes circumstances indicate asset might impaired considered deterioration general economic market conditions primarily due covid19 pandemic triggering event first second quarters 2020 requiring impairment evaluation goodwill intangible assets commercial aerospace businesses collins aerospace pratt whitney beginning second quarter 2020 observed several airline customer bankruptcies delays cancellations aircraft purchases airlines fleet retirements repositioning oem production schedules experienced significant decline revenues collins aerospace pratt whitney businesses due decline flight hours aircraft fleet utilization shop visits commercial oem deliveries factors contributed deterioration expectations regarding timing return precovid19 commercial flight activity reduced future sales cash flows expectations second quarter 2020 evaluated collins aerospace pratt whitney reporting units goodwill impairment determined carrying values two six collins aerospace reporting units exceeded sum discounted future cash flows resulting goodwill impairments 32 billion collins aerospace discounted future cash flow estimates developed three scenarios base case downside case upside case scenarios included assumptions regarding future airline flight activity warranty hours original equipment expected repairs upgrades replacements future oem manufacturing schedules related environmental assumptions including individuals’ desire return normal travel business needs travel potential cures vaccines prevent reduce effects covid19 estimates require significant amount judgment subject change based upon factors outside control weighted three scenarios follows 50 base case 40 downside case 10 upside case used weightings believed reflected risks opportunities relative estimates goodwill impairment indicated reporting units evaluated impairment scenarios identify deterioration expectations third quarter 2020 therefore triggering event october 1 2020 changed annual goodwill impairment testing date july 1 october 1 better align timing annual longterm planning process accordingly management determined change accounting principle preferable circumstance change applied prospectively october 1 2020 retrospective application would change company’s accounting goodwill change material consolidated financial statements delay accelerate avoid potential goodwill impairment charges completed annual impairment testing october 1 2020 assessed pratt whitney ris rmd one collins aerospace reporting units using qualitative factors determine whether likely individual reporting unit’s fair value less carrying value step 0 determined testing required based significant changes ris rmd since acquisition raytheon company substantial cushion fair value book value reporting units remainder collins aerospace reporting units compared fair value reporting units respective carrying values step 1 determined additional adjustments carrying value goodwill necessary based annual impairment analysis october 1 2020 reporting unit closest impairment reporting unit collins aerospace fair value excess book value including goodwill 12 billion 7 impairment evaluations collins aerospace pratt whitney resulted several nongoodwill related impairment charges discussed “note 1 basis presentation summary accounting principles” charges primarily due declines expected future commercial air traffic airline bankruptcies impacts accelerated fleet retirements announced program delays expected changes contract terms company continuously monitors events circumstances could negatively impact key assumptions determining fair value goodwill including longterm revenue growth projections profitability discount rates recent market valuations transactions comparable companies volatility company’s market capitalization general industry market macroeconomic conditions possible future changes circumstances including prolonged andor severe covid19 pandemic originally anticipated future changes variables associated judgments assumptions estimates used assessing fair value reporting units including expected long term recovery airline travel precovid19 levels would require company record noncash impairment charge intangible assets identifiable intangible assets comprised following given deterioration general economic market conditions primarily due covid19 pandemic performed assessment unamortized intangible assets recorded 57 million 2020 related impairment indefinitelived tradename intangible assets collins aerospace december 31 2020 intangible asset closest impairment tradename collins aerospace fair value excess book value approximately 110 million 7 also evaluated amortizable intangible assets identified impairments continue evaluate impact customers business future periods may result different conclusion amortization intangible assets 2125 million 1244 million 736 million 2020 2019 2018 respectively following expected amortization total intangible assets 2021 2025 reflects pattern expected economic benefit certain aerospace intangible assets note 3 discontinued operations discussed april 2 2020 carrier otis entered separation distribution agreement utc since renamed raytheon technologies corporation pursuant among things utc agreed separate three independent publicly traded companies utc carrier otis distribute outstanding common stock carrier otis utc shareowners held shares utc common stock close business march 19 2020 separation transactions completed april 3 2020 total 1329 million costs incurred related separation transactions recorded following financial statement line items 974 million income discontinued operations 86 million benefit income tax expense discontinued operations 23 million income continuing operations 418 million income tax expense carrier otis presented discontinued operations excluded continuing operations segment results periods presented income loss discontinued operations follows 1 reflects debt extinguishment costs 2020 related company’s paydown debt exceed maximum applicable net indebtedness raytheon merger agreement unallocable transaction costs incurred company primarily related professional services costs pertaining separation transactions establishment carrier otis standalone public companies facility relocation costs separate information systems costs retention bonuses tax charges benefits related separation activities following summarized financial information related discontinued operations reclassified income continuing operations included income loss discontinued operations 1 reflects debt extinguishment costs related company’s paydown debt exceed maximum applicable net indebtedness raytheon merger agreement unallocable transaction costs incurred company primarily related professional services costs pertaining separation transactions establishment carrier otis standalone public companies facility relocation costs separate information systems costs retention bonuses tax charges benefits related separation activities selected financial information related cash flows discontinued operations follows net cash provided operating activities includes net operating cash flows carrier otis prior separation transactions well cash outflows company primarily related professional services costs connection separation transactions establishment carrier otis standalone public companies facility relocation costs separate information systems costs retention bonuses tax charges related separation activities net cash used financing activities primarily consists net cash transfers carrier otis rtc separation carrier treated return capital recorded reduction retained earnings net asset position separation otis treated return capital recorded adjustment common stock net liability position remaining assets liabilities related discontinued operations december 31 2020 primarily relate trailing tax assets liabilities company related separation transactions including indemnification obligations major components assets liabilities related discontinued operations december 31 2019 provided note 4 earnings per share may possible recalculate earnings per share eps attributable common shareowners adjusting eps continuing operations eps discontinued operations amount calculated independently computation diluted eps excludes effect potential exercise stock awards including stock appreciation rights stock options average market price common stock lower exercise price related stock awards period effect would antidilutive addition computation diluted eps excludes effect potential exercise stock awards’ assumed proceeds exceed average market price common shares period 2020 2019 2018 325 million 83 million 51 million antidilutive stock awards excluded computation respectively outstanding stock awards excluded computation diluted eps 2020 effect antidilutive due loss continuing operations note 5 accounts receivable net accounts receivable net consisted following company enters various factoring agreements thirdparty financial institutions sell certain receivables arrangements company factored receivables 64 billion 78 billion 2020 2019 respectively cash received arrangements reflected cash provided operating activities consolidated statement cash flows certain factoring arrangements ease administration company collect customer payments related factored receivables remits financial institutions december 31 2020 2019 company 10 million 7 million respectively collected behalf financial institutions recorded restricted cash accrued liabilities net cash flows relating collections reported financing activities consolidated statement cash flows changes allowance expected credit losses related accounts receivable follows 1 current provision expected credit losses 2020 includes 248 million reserves driven customer bankruptcies additional reserves credit losses primarily due current economic environment primarily caused covid19 pandemic 2 includes 34 million impact related january 1 2020 adoption asu 201613 financial instruments credit losses topic 326 measurement credit losses financial instruments activity allowance doubtful accounts material 2019 2018 note 6 contract assets liabilities contract assets reflect revenue recognized performance obligations satisfied advance customer billing contract liabilities relate payments received advance satisfaction performance contract receive payments customers based terms established contracts total contract assets contract liabilities december 31 2020 2019 follows contract assets increased 5469 million year ended december 31 2020 primarily due raytheon merger accounted increase 55 billion net 335 million contract asset writeoffs reclassifications related certain precision guided munitions contracts certain middle eastern customers described included change contract assets decrease 132 million due impairments incremental credit loss reserves related commercial aerospace businesses discussed contract liabilities increased 3875 million year ended december 31 2020 primarily due raytheon merger accounted increase 38 billion direct commercial sales contracts precision guided munitions certain middle east customer yet obtained regulatory approval due result us presidential congressional election resulting uncertainty surrounding us foreign policy direct commercial sales precision guided munitions customer determined longer probable able obtain required regulatory approvals contracts however determination could change us government’s foreign policy views clarified therefore fourth quarter 2020 reversed 119 million sales work performed specific contracts subsequent date raytheon merger end third quarter 2020 related operating profit addition recognized unfavorable profit impact 516 million primarily related inventory reserves contract asset impairments recognition supplier related obligations related termination liability expect utilized otherwise directed customers addition reversed 755 million backlog contracts december 31 2020 contract liabilities include 405 million advance payments received customer contracts may become refundable customer contracts ultimately terminated contract assets consisted following december 31 us government title assets related unbilled amounts us government contracts provide progress payments contract assets include retentions arising contractual provisions december 31 2020 retentions 98 million total contract assets include allowance credit losses 177 million december 31 2020 additional information adoption credit loss standard january 1 2020 see “note 1 basis presentation summary accounting principles” increase allowance 2020 includes incremental credit loss reserves 132 million related number airline customers filed bankruptcy additional reserves due current economic environment primarily caused covid19 pandemic addition 2020 recognized impairment 111 million contract assets collins aerospace due impact lower estimated future customer activity principally driven expected acceleration fleet retirements commercial aircraft recognized impairment 129 million contract assets result unfavorable eac adjustment related lower estimated revenues due restructuring customer contract pratt whitney 2020 2019 2018 recognized revenue 2763 million 2850 million 2269 million related contract liabilities january 1 2020 january 1 2019 january 1 2018 respectively note 7 inventory net raw materials workinprocess finished goods net valuation reserves 1788 million 1122 million december 31 2020 2019 respectively note 8 commercial aerospace industry assets commitments covid19 pandemic’s continued disruption air travel commercial activities significant restrictions limitations businesses within aerospace commercial airline industries negatively impacted global supply demand distribution capabilities particular significant decrease air travel resulting covid19 pandemic adversely affecting airline airframer customers demand products services collins aerospace pratt whitney businesses described “note 1 basis presentation summary accounting principles” 2020 recorded goodwill impairment charge 32 billion collins aerospace business well writedowns assets collins aerospace pratt whitney businesses primarily related increased estimated credit losses impairments contract assets due lower estimated future customer activity revenues commercial contracts impairment commercial aircraft program assets impairment collins aerospace trade name continue monitor recoverability commercial aerospace industry assets assess potential exposures following summarizes certain significant assets offbalance sheet exposures specifically related commercial aerospace customers 1 customer financing assets inclusive current long term balances also goodwill intangible assets including exclusivity assets collaboration assets associated commercial aerospace business refer “note 2 business acquisitions dispositions goodwill intangible assets” discussion note 9 fixed assets net fixed assets net stated cost less accumulated depreciation major improvements capitalized expenditures maintenance repairs minor improvements expensed sales asset retirements assets related accumulated depreciation amortization eliminated accounts gains losses sales fixed assets net generally recorded operating income however ris rmd segments gains losses allocable contracts included overhead required allocate gains losses generally recover costs pricing products services us government leasehold improvements amortized lesser remaining lease term estimated useful life improvement depreciation expense related fixed assets net recorded predominantly utilizing straightline method 1767 million 2020 1191 million 2019 945 million 2018 note 10 borrowings lines credit december 31 2020 maximum commercial paper borrowing limit 50 billion commercial paper backed 50 billion revolving credit agreement use commercial paper borrowings general corporate purposes including funding potential acquisitions pension contributions debt refinancing dividend payments repurchases common stock commercial paper notes outstanding original maturities 90 days date issuance preparation anticipation separation transactions distributions raytheon merger company entered terminated number credit agreements february 11 2020 march 3 2020 terminated 20 billion revolving credit agreement 40 billion term loan credit agreement respectively upon termination repaid 21 billion borrowings outstanding 40 billion term loan credit agreement april 3 2020 upon completion raytheon merger terminated 220 billion revolving credit agreement 215 billion multicurrency revolving credit agreement march 20 2020 march 23 2020 entered two 500 million term loan credit agreements borrowed 10 billion agreements first quarter 2020 terminated agreements may 5 2020 april 28 2020 respectively upon repayment march 16 2020 entered revolving credit agreement various banks permitting aggregate borrowings 50 billion became available upon completion raytheon merger april 3 2020 credit agreement matures april 3 2025 may 6 2020 entered revolving credit agreement various banks permitting aggregate borrowings 20 billion credit agreement matures may 5 2021 december 31 2020 revolving credit agreements various banks permitting aggregate borrowings 70 billion borrowings outstanding agreements preparation anticipation separation transactions distributions company carrier otis issued company repaid longterm debt year ended december 31 2020 shown tables february 10 2020 otis entered term loan credit agreement providing 10 billion unsecured unsubordinated 3year term loan credit facility also february 10 2020 carrier entered term loan credit agreement providing 175 billion unsecured unsubordinated 3year term loan credit facility march 27 2020 carrier otis drew full amounts term loans distributed full proceeds raytheon technologies connection separation transactions utc utilized amounts extinguish raytheon technologies’ shortterm longterm debt order exceed maximum applicable net indebtedness required raytheon merger agreement december 31 2020 approximately 1 billion available shortterm lines credit local banks various domestic international subsidiaries weightedaverage interest expense rates applicable shortterm borrowings total debt follows following issuances longterm debt 2020 inclusive issuances made carrier otis primarily used company extinguish certain raytheon technologies shortterm longterm debt therefore treated distribution discontinued operations within financing activities continuing operation consolidated statement cash flows 1 debt issuances term loan draws reflect debt incurred carrier otis net proceeds issuances primarily utilized extinguish raytheon technologies shortterm longterm debt order exceed maximum applicable net indebtedness required raytheon merger agreement issuances longterm debt 2019 made following repayments debt 2020 2019 1 notes assumed connection raytheon merger subsequently repaid 2 connection early repayment outstanding principal raytheon technologies recorded debt extinguishment costs 703 million year ended december 31 2020 classified discontinued operations consolidated statement operations would redeem debt except separation transactions proceeds notes issued may 18 2020 used fund may 19 2020 redemption 3 extinguishment raytheon technologies shortterm longterm debt order exceed maximum net indebtedness required raytheon merger agreement 4 notes assumed connection rockwell collins acquisition subsequently repaid june 10 2020 completed exchange offer eligible holders outstanding notes goodrich corporation maturing 2046 raytheon company maturing 2044 rockwell collins inc maturing 2047 collectively “subsidiary notes” aggregate principal amount approximately 82 billion subsidiary notes exchanged approximately 82 billion raytheon technologies notes identical interest rates maturity dates redemption provisions subsidiary notes exchanged exchange substantially identical notes change treated debt modification accounting purposes gain loss recognized longterm debt consisted following december 31 1 may redeem notes option pursuant terms 2 debt assumed raytheon merger percentage total shortterm borrowings longterm debt variable interest rates approximately 1 9 december 31 2020 2019 respectively interest rates commercial paper borrowings considered variable due shortterm duration highfrequency turnover average maturity longterm debt december 31 2020 approximately 14 years schedule principal payments required longterm debt next five years thereafter note 11 employee benefit plans sponsor various domestic foreign employee benefit plans discussed employee savings plans sponsor various employee savings plans contributions employer sponsored defined contribution plans 875 million 485 million 332 million 2020 2019 2018 respectively nonunion domestic employee savings plan legacy utc employees uses employee stock ownership plan esop employer matching contributions external borrowings used esop fund portion purchase esop stock us external borrowings extinguished reamortized loans remain rtc esop trust esop debt service payments made common stock released unreleased shares account esop debt may prepaid reamortized either increase decrease number shares released value released shares equals value plan benefit may also option contribute additional common stock cash esop shares common stock allocated employees’ esop accounts fair value date earned cash dividends common stock held esop used debt service payments participants may choose esop dividends reinvested distributed cash common stock allocated esop participants included average number common shares outstanding basic diluted eps december 31 2020 234 million common shares allocated employees leaving 94 million unallocated common shares esop trust fair value 672 million pension postretirement plans sponsor funded unfunded domestic foreign defined benefit pension plans cover large number employees largest plans generally closed new participants also sponsor funded unfunded prb plans provide health care life insurance benefits eligible retirees plans use december 31 measurement date consistent fiscal year separation transactions included transfer certain defined benefit plans utc carrier otis plans transferred primarily international plans majority utc defined benefit liability remaining raytheon technologies upon separation employees within carrier otis effectively terminated raytheon technologies terminations approximately 3400 domestic pension plan participants triggered midyear remeasurement utc domestic plans remeasurement calculated using discount rates asset values april 3 2020 using march 31 2020 practical expedient resulted 24 billion increase pension liability primarily due decrease fair market value plans’ assets since december 31 2019 service cost previously associated carrier otis included discontinued operations nonservice pension income expense pension liability generally portion related defined benefit plans transferred carrier otis part separation transactions reclassified discontinued operations raytheon company funded unfunded domestic foreign defined benefit pension prb plans merger date raytheon company plans remeasured fair value using accounting policies consistent utc plans refer “note 2 business acquisitions dispositions goodwill intangible assets” additional information deferred pension prb plan losses included raytheon company’s accumulated comprehensive income loss merger date eliminated longer subject amortization net periodic benefit income expense amounts prior merger date april 3 2020 include raytheon company pension plan results september 2019 amended utc domestic defined benefit pension plans cease accrual additional benefits future service compensation nonunion participants effective december 31 2019 beginning january 1 2020 participants began receiving additional contributions utc domestic defined contribution plan change impact participants’ historical benefit accruals utilized practical expedient remeasured plan assets pension benefit obligations affected pension plans nearest monthend august 31 2019 resulting net actuarial loss 425 million reflects remeasurement losses 605 million partially offset benefit obligation gain 180 million resulting benefit plan change remeasurement losses driven reduction 124 basis points pbo discount rate remeasurement date compared december 31 2018 partially offset actual asset returns approximately 17 remeasurement date recorded curtailment gain 98 million consolidated statement operations due recognition previously unrecognized prior service credits affected pension plans nonunion employees utc domestic pension plans benefits service december 31 2014 generally based employee’s years service compensation benefits service december 31 2014 december 31 2019 based existing cash balance formula adopted 2003 newly hired nonunion employees nonunion employees made onetime voluntary election future benefit accruals determined formula benefits union employees utc domestic pension plans generally based stated amount year service december 2020 approved change raytheon domestic benefit pension plans nonunion participants cease future benefit accruals based employee’s years service compensation effective december 31 2022 plan change impact participants’ historical benefit accruals benefits service december 31 2022 based cash balance formula utilized practical expedient measured plan assets pension benefit obligations effected pension plans nearest month end december 31 2020 resulting current year prior service credit 21 billion made following contributions pension prb plans’ trusts years ended december 31 contributions us qualified defined benefit plans year ended december 31 2020 include 750 million discretionary contribution raytheon company us qualified pension plans’ trust result discretionary contribution expect make required contributions us qualified plans’ trust 2022 contributions international defined benefit plans year ended december 31 2020 include 51 million discretionary contribution expect make total contributions approximately 50 million international defined benefit plans’ trusts 2021 expected meet exceed current funding requirements 1 includes benefit payments paid directly company 2 consists primarily liabilities assets acquired part raytheon merger 3 amount included primarily reflects impact foreign exchange translation primarily plans uk canada participant contributions majority pension obligations relate us internal revenue service irs qualified pension plans comprise 85 82 pension pbo december 31 2020 2019 respectively 3 1 pension pbo december 31 2020 2019 respectively attributable nonqualified domestic pension plans provide supplementary retirement benefits certain employees excess irs qualified plan limits international plans comprise 12 17 pension pbo december 31 2020 2019 respectively considered defined benefit pension plans accounting purposes addition pension prb noncurrent liabilities shown future pension postretirement benefit obligations consolidated balance sheet includes 139 million 21 million pension prb related liabilities december 31 2020 2019 respectively information pension plans accumulated benefit obligations excess plan assets accumulated benefit obligation defined benefit pension plans 702 billion 377 billion december 31 2020 2019 respectively information pension plans projected benefit obligations excess plan assets components net periodic pension income expense follows components net periodic prb income expense follows changes pension plan assets benefit obligations recognized comprehensive loss 2020 2019 follows 1 amount included primarily reflects impact foreign exchange translation primarily plans uk canada actuarial loss arising period 2020 primarily due decrease discount rates 2020 partially offset asset returns exceeding expected return assets current year prior service credit 2020 primarily due rtc plan change nonunion participants discussed actuarial loss arising period 2019 primarily due decrease discount rates 2019 partially offset asset returns exceeding expected return assets changes prb assets benefit obligations recognized comprehensive loss 2020 2019 follows actuarial loss arising period 2020 primarily due decrease discount rates 2020 partially offset asset returns exceeding expected return assets funded plans actuarial gain arising period 2019 primarily due demographic gains partially offset decrease discount rates 2019 table reflects total benefit payments expected paid plans corporate assets major assumptions used determining pension benefit obligation net periodic pension benefit income expense presented following table weightedaverages 1 discount rates used measure service cost interest cost applies significant plans pbo discount rate used service cost interest cost measurements nonsignificant plans major assumptions used determining prb benefit obligation net periodic prb income expense presented following table weightedaverages assumed health care cost trend rates used determining prb benefit obligation net periodic prb income expense follows weightedaverage discount rates used measure pension prb liabilities based yield curves developed using highquality corporate bonds well plan specific cash flows significant plans utilize full yield curve approach estimation service cost interest cost components net periodic benefit costs applying specific spot rates along yield curve used determination benefit obligation relevant discounted projected cash flows determining eroa assumption consider target asset allocation plan assets well economic indicators future performance may consult consider opinions financial professionals determining appropriate capital market assumptions return projections validated using simulation model incorporates yield curves credit spreads risk premiums project longterm prospective returns result analysis year end 2020 weighted average pension eroa assumption 2021 65 plan assets plans’ investment management objectives include providing liquidity asset levels needed meet current future benefit payments maintaining prudent degree portfolio diversification considering interest rate risk market volatility globally investment strategies generally target mix 50 55 growth seeking assets 45 50 income generating hedging assets using wide set diversified asset types fund strategies investment managers growth seeking allocation consists global public equities developed emerging countries private equity real estate multiasset class strategies growth assets include enhanced alpha strategy invests publicly traded equity fixed income securities derivatives foreign currency investments private equity primarily via limited partnership interests buyout strategies smaller allocations distressed debt funds real estate strategy principally concentrated directly held us core investments smaller investments international valueadded opportunistic strategies within income generating assets fixed income portfolio consists mainly government broadly diversified high quality corporate bonds plans continued pension risk management techniques designed reduce interest rate risk specifically plans incorporated liability hedging programs include adoption risk reduction objective part longterm investment strategy objective interest rate hedge intended increase funded status improves hedging programs incorporate range assets investment tools varying interest rate sensitivities investment portfolios currently hedging approximately 30 70 interest rate sensitivity pension plan liabilities depending funded status plan fair values pension plan assets december 31 2020 2019 asset category follows 1 represents commingled funds invest primarily common stocks 2 represents enhanced equity separate account commingled fund portfolios portion portfolio may include longshort market neutral relative value strategies invest publicly traded equity fixed income securities well derivatives equity fixed income securities foreign currency 3 represents limited partnership investments general partners primarily invest equity debt 4 represents investments real estate including commingled funds directly held properties 5 represents global balanced risk commingled funds invest multiple asset classes including equity fixed income commodities “other” also includes insurance contracts 6 represents shortterm commercial paper bonds cash cashlike instruments 7 represents receivables payables certain individually immaterial international plan assets leveled 8 accordance asu 201507 fair value measurement topic 820 certain investments measured fair value using net asset value per share equivalent practical expedient classified fair value hierarchy fair value amounts presented table intended permit reconciliation fair value hierarchy amounts presented total pension benefits plan assets derivatives plan primarily used manage risk gain asset class exposure still maintaining liquidity derivative instruments mainly consist equity futures interest rate futures interest rate swaps currency forward contracts fair market value plans’ derivatives direct separate account investments approximately 176 million 75 million december 31 2020 2019 respectively review assets least quarterly ensure within targeted asset allocation ranges necessary asset balances adjusted back within target allocations employ broadly diversified investment manager structure includes diversification active passive management style capitalization country sector industry number investment managers individual investment represented 5 plan assets december 31 2020 fair value measurement plan assets using significant unobservable inputs level 3 changed due following quoted market prices used value investments available investments securities traded exchanges including listed futures options valued last reported sale prices last business day year available last reported bid prices fixed income securities primarily measured using market approach pricing methodology observable prices obtained market transactions involving identical comparable securities issuers similar credit ratings mortgages valued basis future principal interest payments discounted prevailing interest rates similar investments investment contracts valued fair value discounting related cash flows based current yields similar instruments comparable durations real estate investments valued quarterly basis using discounted cash flow models consider longterm lease estimates future rental receipts estimated residual values valuation estimates supplemented thirdparty appraisals annual basis private equity limited partnerships valued quarterly using discounted cash flows earnings multiples market multiples valuation adjustments reflect changes operating results financial condition prospects applicable portfolio company overthecounter securities government obligations valued bid prices average bid ask prices last business day year published sources available sources considered reliable generally broker quotes temporary cash investments stated cost approximates fair value fair market value assets related prb benefits 381 million 20 million december 31 2020 2019 assets include 149 million invested domestic qualified pension plan trust december 31 2020 prb assets invested domestic qualified pension plan trust december 31 2019 remaining prb investments held within voluntary employees’ beneficiary association veba trusts veba assets generally invested mutual funds valued primarily using quoted prices active markets level 1 level 3 investments veba trusts december 31 2020 2019 set aside assets separate trusts expect used pay certain nonqualified defined benefit defined contribution plan obligations excess qualified plan limits assets included assets current consolidated balance sheet fair value marketable securities held trusts consisted following note 12 leases operating lease expense 497 million 323 million 2020 2019 respectively finance leases lessor leases considered significant consolidated balance sheet consolidated statement operations variable least cost sublease income immaterial 2020 2019 2020 entered sale leaseback transaction sale equipment related maintenance subsequently leased back equipment sold limited timeframe accounted operating lease proceeds received result equipment sales classified decrease customer financing assets within investing activities consolidated statement cash flows portion related future maintenance services classified within operating activities net gain result transaction material gains losses sale leaseback transactions immaterial 2019 supplemental cash flow information related operating leases follows future lease payments related operating lease liabilities december 31 2020 follows 1 total future lease payments excluded approximately 58 million future lease payments related leases signed yet commenced december 31 2020 lease liabilities recognized consolidated balance sheet follows december 31 weightedaverage remaining lease term related operating leases 80 years 86 years december 31 2020 december 31 2019 respectively weightedaverage discount rate related operating leases 31 35 december 31 2020 december 31 2019 respectively note 13 income taxes income taxes sources income continuing operations income taxes company longer intends reinvest certain undistributed earnings international subsidiaries previously taxed us recorded taxes associated future remittance earnings remainder company’s undistributed international earnings unless tax effective repatriate company continue permanently reinvest earnings december 31 2020 undistributed earnings approximately 12 billion excluding comprehensive income amounts practicable estimate amount tax might payable remaining amounts provision income taxes income tax expense benefit years ended december 31 2020 2019 2018 consisted following components reconciliation effective income tax rate differences effective income tax rates statutory us federal income tax rate follows 2020 negative effective tax rate result tax expense 575 million loss continuing operations income taxes 2353 million loss continuing operations income taxes includes 3183 million goodwill impairment described “note 2 business acquisitions dispositions goodwill intangible assets” nondeductible tax purposes tax expense includes net deferred tax charges 367 million resulting separation transactions raytheon merger primarily related impairment deferred tax assets incremental tax expense 177 million related disposal businesses including sales collins aerospace ris businesses entry definitive agreement sell forcepoint described “note 2 business acquisitions dispositions goodwill intangible assets” result separation transactions restructuring charges recognized 2020 tax expense also includes 49 million related revaluation tax benefit certain international tax incentives company longer expects meet incentive requirements also included 2020 effective tax rate tax benefits 142 million associated us research development credits 83 million associated fdii 2019 effective tax rate includes tax benefits 290 million primarily associated conclusion audit examination division internal revenue service company’s 2014 2015 2016 tax years filing subsidiary company participate amnesty program offered italian tax authority 2019 effective tax rate also includes tax benefits 138 million associated fdii 101 million related us research development credits december 22 2017 tax cuts jobs act 2017 tcja enacted 2018 effective tax rate reflects net charge 744 million tcja related adjustments amount primarily relates nonus taxes become due previously reinvested earnings certain international subsidiaries remitted 2018 effective tax rate also includes tax benefits 102 million associated fdii 73 million related us research development credits deferred tax assets liabilities tax effects temporary differences tax carryforwards gave rise future income tax benefits payables december 31 2020 2019 follows valuation allowances established primarily tax credit carryforwards tax loss carryforwards certain temporary differences reduce future income tax benefits expected realizable amounts tax credit loss carryforwards december 31 2020 tax credit carryforwards principally state foreign tax loss carryforwards principally state foreign follows unrecognized tax benefits december 31 2020 gross taxeffected unrecognized tax benefits 1225 million 1216 million recognized would impact effective tax rate reconciliation beginning ending amounts unrecognized tax benefits interest expense related unrecognized tax benefits years ended december 31 2020 2019 2018 follows unrecognized tax benefit table includes discontinued operations 2018 2019 2020 result separation transactions distributions april 2020 transferred unrecognized tax benefits carrier otis 439 million associated interest approximately 165 million pursuant terms separation agreements certain unrecognized tax benefits retained company subject indemnification total unrecognized tax benefits december 31 2019 2018 include 437 million 551 million benefits related discontinued operations associated interest approximately 155 million periods addition result raytheon merger april 2020 unrecognized tax benefits increased 273 million associated interest approximately 15 million due inclusion items related premerger raytheon company tax periods 2018 additions include amounts related rockwell acquisition management determined distributions carrier otis april 3 2020 certain related internal business separation transactions qualified taxfree applicable law making determinations applied tax law relevant jurisdictions facts circumstances obtained tax rulings relevant taxing authorities tax opinions andor external tax advice related concluded tax treatment completed distributions carrier otis case certain internal business separation transactions fail qualify taxfree treatment company could subject significant liabilities could material adverse impacts company’s business financial condition results operations cash flows future reporting periods conduct business globally result raytheon technologies one subsidiaries files income tax returns us federal jurisdiction various state foreign jurisdictions normal course business subject examination taxing authorities throughout world including major jurisdictions canada china france germany india philippines poland singapore united kingdom united states exceptions longer subject us federal state local nonus income tax examinations years 2012 fourth quarter 2020 company recognized noncash gain approximately 25 million primarily tax result statute limitations expiration 2016 tax year subsidiary acquired part rtc’s acquisition rockwell collins 2019 company recognized net gain approximately 307 million including pretax interest approximately 56 million result conclusion irs audit company’s 2014 2015 2016 tax years well amnesty filing italy made resolve certain tax litigation company also recognized noncash gain approximately 40 million primarily tax result closure irs audit 2014 tax year subsidiary acquired part rtc’s acquisition rockwell collins gain partially offset unfavorable pretax impact reversal related indemnity asset approximately 23 million finally company recognized net noncash gains approximately 18 million including pretax interest approximately 5 million result various federal state nonus statute limitations expirations settlements tax authorities examination division irs currently auditing raytheon technologies tax years 2017 2018 premerger raytheon company tax periods 2017 2018 2019 well certain refund claims raytheon company tax years 2014 2015 2016 filed prior raytheon merger examination division irs also auditing preacquisition rockwell collins fiscal tax years 2016 2017 projected close within next six months result projected closure audit rockwell collins fiscal tax years 2016 2017 reasonably possible company may recognize noncash gains range 50 million 100 million primarily tax within next six months reasonably possible net reduction within range 165 million 475 million unrecognized tax benefits may occur next 12 months result revaluation uncertain tax positions arising issuance legislation regulatory guidance developments examinations appeals courts closure tax statutes note 14 restructuring costs restructuring costs generally expensed incurred us government unallowable restructuring costs related raytheon merger recorded within corporate expenses unallocated items costs included management’s evaluation segments’ performance result unallowable restructuring costs ris rmd segments 2020 recorded net pretax restructuring costs totaling 777 million new ongoing restructuring actions recorded charges segments follows restructuring charges incurred 2020 primarily relate actions initiated 2020 2019 recorded follows 2020 actions 2020 recorded net pretax restructuring costs totaling 770 million restructuring actions initiated 2020 consisting 401 million cost sales 360 million selling general administrative expenses 9 million nonservice pension expenses 2020 actions primarily relate severance restructuring actions pratt whitney collins aerospace response impact operating results related current economic environment primarily caused covid19 pandemic raytheon merger ongoing cost reduction efforts including workforce reductions consolidation field operations targeting complete 2021 majority remaining workforce facility related cost reduction actions initiated 2020 specific plans significant actions finalized time following table summarizes accrual balances utilization cost type 2020 restructuring actions following table summarizes expected incurred remaining costs 2020 restructuring actions segment 2019 actions 2020 recorded net pretax restructuring costs totaling 10 million restructuring actions initiated 2019 consisting reversal 2 million cost sales 12 million selling general administrative expenses 2019 actions relate ongoing cost reduction efforts including workforce reductions consolidation field operations following table summarizes accrual balances utilization cost type 2019 restructuring actions following table summarizes expected incurred remaining costs 2019 programs segment 2018 prior actions 2020 reversed net pretax restructuring costs totaling 3 million restructuring actions initiated 2018 prior december 31 2020 45 million accrual balances remaining related 2018 prior actions note 15 financial instruments enter derivative instruments primarily risk management purposes including derivatives designated hedging instruments derivatives hedging topic fasb asc utilized economic hedges operate internationally normal course business exposed fluctuations interest rates foreign exchange rates commodity prices fluctuations increase costs financing investing operating business used derivative instruments including swaps forward contracts options manage certain foreign currency interest rate commodity price exposures aggregate notional amount outstanding foreign currency hedges 116 billion 130 billion december 31 2020 2019 respectively additional information pertaining foreign exchange hedging activities included “note 1 basis presentation summary accounting principles” following table summarizes fair value presentation consolidated balance sheets derivative instruments december 31 effect cash flow hedging relationships accumulated comprehensive income loss years ended december 31 2020 2019 presented table amounts gain loss attributable foreign exchange contract activity recorded component product sales reclassified accumulated comprehensive income loss company utilizes critical terms match method assessing derivatives hedge effectiveness accordingly hedged items derivatives designated hedging instruments highly effective approximately €500 million eurodenominated longterm debt qualifies net investment hedge investments european businesses december 31 2020 net investment hedge deemed effective assuming current market conditions continue 23 million pretax gain expected reclassified accumulated comprehensive loss product sales reflect fixed prices obtained foreign exchange hedging within next 12 months december 31 2020 derivative contracts accounted cash flow hedges mature january 2028 effect derivatives designated hedging instruments within income net consolidated statement operations follows note 16 fair value measurements accordance provisions asc 820 following tables provide valuation hierarchy classification assets liabilities carried fair value measured recurring basis consolidated balance sheet december 31 2020 2019 valuation techniques availableforsale securities include equity investments traded active markets either domestically internationally measured fair value using closing stock prices active markets derivative assets liabilities include foreign exchange contracts measured fair value using internal models based observable market inputs forward rates interest rates credit risk counterparties’ credit risks december 31 2020 significant impact fair value derivative liabilities due credit risk similarly significant adverse impact derivative assets based evaluation counterparties’ credit risks following table provides carrying amounts fair values financial instruments carried fair value consolidated balance sheet december 31 following table provides valuation hierarchy classification assets liabilities carried fair value consolidated balance sheet december 31 2020 2019 note 17 variable interest entities pratt whitney holds 61 program share interest international aero engines ag iae collaboration mtu aero engines ag mtu japanese aero engines corporation jaec 495 ownership interest iae’s business purpose coordinate design development manufacturing product support v2500 engine program involvement collaborators additionally pratt whitney jaec mtu participants international aero engines llc iae llc whose business purpose coordinate design development manufacturing product support pw1100gjm engine airbus a320neo aircraft pw1400gjm engine irkut mc21 aircraft pratt whitney holds 59 program share interest 59 ownership interest iae llc iae llc retain limited equity primary economics programs passed participants determined iae llc variable interest entities pratt whitney primary beneficiary iae llc therefore consolidated carrying amounts classification assets liabilities variable interest entities consolidated balance sheet december 31 2020 2019 follows note 18 guarantees extend variety financial market value product performance guarantees third parties december 31 2020 2019 following financial guarantees outstanding made residual value guarantees related various commercial aerospace customer financing arrangements estimated fair market values guaranteed assets equal exceed value related guarantees net existing reserves collaborative partner share financing guarantees 142 million december 31 2020 2019 also obligations arising sales certain businesses assets including representations warranties related indemnities environmental health safety tax employment matters maximum potential payment related obligations specified amount number obligations contain financial caps carrying amount liabilities related obligations 120 million 166 million december 31 2020 2019 respectively additional information regarding environmental indemnifications see “note 19 commitments contingencies” accrue costs associated guarantees probable liability incurred amount reasonably estimated likely cost incurred accrued based evaluation currently available facts amount within range estimates likely minimum accrued provide service warranty policies products extend performance operating cost guarantees beyond normal service warranty policies products particularly commercial aircraft engines addition incur discretionary costs service products connection specific product performance issues liabilities performance operating cost guarantees based upon future product performance durability largely estimated based upon historical experience adjustments made accruals claim data historical experience warrant changes carrying amount service product warranties product performance guarantees years ended december 31 2020 2019 follows note 19 commitments contingencies except otherwise noted unable predict final outcome based information currently available believe resolution following matters material adverse effect upon competitive position results operations cash flows financial condition environmental operations subject environmental regulation federal state local authorities united states regulatory authorities jurisdiction foreign operations described “note 1 basis presentation summary accounting principles” accrued costs environmental remediation activities including limited investigatory remediation operating maintenance costs performance guarantees periodically reassess amounts believe likelihood incurring losses materially excess amounts accrued remote december 31 2020 2019 835 million 725 million respectively reserved environmental remediation additional information pertaining environmental matters included “note 1 basis presentation summary accounting principles” commercial aerospace financing commitments commercial aerospace financing commitments contractual commitments approximately 134 billion 150 billion december 31 2020 2019 respectively gross basis reduction collaboration partners’ share aircraft financing commitments form debt lease financing provided certain commercial aerospace customers extent financing commitments utilized currently known since customers may able obtain favorable terms financing sources may also arrange thirdparty investors assume portion commitments majority financing commitments collateralized arrangements may also lease aircraft subsequently sublease aircraft customers longterm noncancelable operating leases financing commitments customers contingent upon maintenance certain levels financial condition customers associated risks commitments mitigated due fact interest rates variable commitment term set date funding based current market conditions fair value underlying collateral credit worthiness customers result fair value financing commitments expected equal amounts funded also contractual commitments including commitments make payments secure certain contractual rights provide product new aircraft platforms included “other commercial aerospace commitments” table payments made contractual commitments included within intangible assets exclusivity assets amortized term underlying economic benefit entered certain collaboration arrangements may include participation collaboration partners commitments addition connection 2012 agreement acquire rollsroyce’s ownership collaboration interests iae additional payments due rollsroyce contingent upon hour flown june 2027 v2500powered aircraft service acquisition date flight hour payments also considered “other commercial aerospace commitments” capitalized collaboration intangible assets following expected maturity commercial aerospace industry commitments december 31 2020 financing arrangements entered standby letters credit surety bonds financial institutions meet various bid performance warranty retention advance payment obligations us affiliates enter agreements assist certain affiliates obtaining financing favorable terms making bids contracts performing contractual obligations stated values letters credit agreements surety bonds totaled 45 billion december 31 2020 offset obligations entered industrial cooperation agreements sometimes form either offset agreements icip agreements condition obtaining orders products services certain customers foreign countries december 31 2020 aggregate amount offset agreements agreed anticipated agreed outstanding notional value approximately 110 billion agreements designed return economic value foreign country requiring us engage activities supporting local defense commercial industries promoting balance trade developing incountry technology capabilities addressing local development priorities offset agreements may satisfied activities require direct cash payment including transferring technology providing manufacturing training consulting support incountry projects purchase third parties eg vendors supplies incountry vendors agreements may also satisfied use cash activities subcontracting local partners purchasing supplies incountry vendors providing financial support incountry projects making investments local ventures activities may also vary country depending upon requirements dictated governments typically commit offset agreements orders products services definitive amounts ultimately applied offset agreements based negotiations customers typically require cash outlays represent fraction notional value offset agreements offset programs usually extend several years may provide penalties event fail perform accordance offset requirements historically required pay penalties significance government oversight ordinary course business company subsidiaries properties subject regulatory governmental examinations information gathering requests inquiries investigations threatened legal actions proceedings example believe light current us government contracting environment continue subject one us government investigations contracts us government also subject audits agencies oversee contract performance include defense contract audit agency dcaa defense contract management agency dcma inspectors general us department defense dod departments agencies government accountability office gao department justice doj congressional committees areas business operations may also subject audit investigation agencies time agencies investigate conduct audits determine whether operations conducted accordance applicable requirements investigations audits may initiated due number reasons including result whistleblower complaint investigations audits could result administrative civil criminal liabilities including repayments fines treble damages forfeitures restitution penalties imposed upon us suspension government export licenses suspension debarment future us government contracting us government investigations often take years complete us government also reserves right debar contractor receiving new government contracts fraudulent criminal seriously improper conduct us government could void contracts found tainted fraud like many defense contractors received audit reports recommending reduction certain contract prices example cost pricing data cost accounting practices used price negotiate contracts may conformed government regulations audit reports recommend certain payments repaid delayed withheld may involve substantial amounts made voluntary refunds cases believe appropriate settled allegations cases continue negotiate andor litigate company may required make payments escrow disputed liabilities related litigation pending litigation resolved company’s favor payments returned company interest final allowable incurred costs year also subject audit time resulted disputes us government litigation resulting court federal claims cofc armed services board contract appeals asbca related courts appeals addition doj time convened grand juries investigate possible irregularities us also provide products services customers outside us sales subject local government laws regulations procurement policies practices compliance local government regulations applicable us government regulations eg foreign corrupt practices act fcpa international traffic arms regulations itar may also investigated audited addition accrue liabilities associated matters probable reasonably estimated likely liability amount incurred accrued based upon range estimates amount within range estimates likely accrue minimum amount specifically disclosed form 10k expect audits investigations disputes material effect financial position results operations liquidity either individually aggregate legal proceedings company subsidiaries subject various litigation matters across jurisdictions updates certain set forth cost accounting standards claims previously disclosed april 2019 divisional administrative contracting officer daco united states dcma asserted claim pratt whitney recover overpayments approximately 173 billion plus interest 681 million december 31 2020 claim based pratt whitney’s alleged noncompliance cost accounting standards cas january 1 2007 march 31 2019 due method allocating independent research development costs government contracts pratt whitney believes claim without merit filed appeal asbca june 7 2019 previously disclosed december 2013 dcma daco asserted claim pratt whitney recover overpayments approximately 177 million plus interest 113 million december 31 2020 claim based pratt whitney’s alleged noncompliance cas january 1 2005 december 31 2012 due method determining cost collaborator parts used calculation material overhead costs government contracts 2014 pratt whitney filed appeal asbca evidentiary hearing held completed june 2019 parties concluded posthearing briefing january 2020 await decision asbca continue believe claim without merit december 2018 dcma daco issued second claim pratt whitney similarly alleges method determining cost collaborator parts comply cas calendar years 2013 2017 second claim demands payment 269 million plus interest 69 million december 31 2020 also believe without merit pratt whitney appealed asbca january 2019 thalesraytheon systems matter previously disclosed 2019 raytheon company received subpoena securities exchange commission sec seeking information connection investigation whether improper payments made thalesraytheon systems trs anyone acting behalf connection trs raytheon company contracts certain middle east countries since 2014 first quarter 2020 doj advised raytheon company opened parallel investigation third quarter 2020 raytheon company received additional subpoena sec seeking information documents part ongoing investigation raytheon company maintains rigorous anticorruption compliance program cooperating fully sec’s inquiry examining whether conduct violation raytheon company policy time company unable predict outcome sec’s doj’s inquiry based information available date however believe results inquiry material adverse effect financial condition results operations liquidity doj investigation october 8 2020 company received criminal subpoena doj seeking information documents connection investigation relating financial accounting internal controls financial reporting cost reporting regarding raytheon company’s missiles defense business since 2009 cooperating fully doj’s investigation time company unable predict outcome investigation based information available date however believe results inquiry material adverse effect financial condition results operations liquidity four lawsuits filed company doj investigation first disclosed putative securities class action lawsuit filed united states district court district arizona company certain executives alleging defendants violated federal securities laws making material misstatements regulatory filings regarding internal controls financial reporting missiles defense business three shareholder derivative lawsuits filed united states district court district delaware former raytheon company board directors company certain executives alleging defendants violated federal securities laws breached fiduciary duties engaging improper accounting practices failing implement sufficient internal financial compliance controls making series false misleading statements regulatory filings believe lawsuits lacks merit darnis et al august 12 2020 several former employees utc subsidiaries filed putative class action complaint united states district court district connecticut company otis carrier former members utc board directors members carrier otis boards directors geraud darnis et al v raytheon technologies corporation et al complaint challenges method utc equity awards converted company otis carrier equity awards following separation utc three independent publiclytraded companies april 3 2020 complaint claims defendants liable breach certain equity compensation plans breach fiduciary duty also asserts claims certain provisions employee retirement income security act 1974 erisa believe company meritorious defenses claims time company unable predict outcome possible range loss could result action described “note 18 guarantees” extend performance operating cost guarantees beyond normal warranty service policies extended periods products accrued estimate liability may result guarantees service costs probable reasonably estimated also commitments contingent liabilities related legal proceedings selfinsurance programs matters arising normal course business accrue contingencies based upon range possible outcomes amount within range better estimate accrue minimum amount note design development production support new aerospace technologies inherently complex subject risk since pw1000g geared turbofan engine entered service 2016 technical issues identified experienced engine usual new engines new aerospace technologies pratt whitney addressed issues various improvements modifications issues resulted financial impacts including increased warranty provisions customer contract settlements reductions contract performance estimates additional technical issues either related program programs may also arise normal course may result financial impacts could material company’s financial position results operations cash flows ordinary course business company subsidiaries also routinely defendants parties otherwise subject many pending threatened legal actions claims disputes proceedings matters often based alleged violations contract product liability warranty regulatory environmental health safety employment intellectual property tax laws instances claims substantial monetary damages asserted company subsidiaries could result fines penalties compensatory treble damages nonmonetary relief believe matters material adverse effect upon competitive position results operations cash flows financial condition note 20 accumulated comprehensive income summary changes component accumulated comprehensive loss income net tax years ended december 31 2020 2019 2018 provided february 2018 fasb issued asu 201802 reclassification certain tax effects accumulated comprehensive income topic 220 standard allows companies reclassify retained earnings stranded tax effects accumulated comprehensive income aoci tcja elected reclassify income tax effects tcja aoci 745 million retained earnings effective january 1 2019 january 2016 fasb issued asu 201601 financial instruments overall recognition measurement financial assets financial liabilities asu modifies entities measure equity investments present changes fair value financial liabilities upon adoption investments result consolidation accounted equity method generally must carried fair value changes fair value recognized net income approximately 5 million unrealized gains securities recorded accumulated comprehensive loss consolidated balance sheet december 31 2017 adopted standard effective january 1 2018 amounts recorded directly retained earnings date amounts reclassified relate defined benefit pension postretirement plans include amortization prior service costs actuarial net losses recognized period presented costs recorded components net periodic pension cost period presented noncontrolling interests redemption features put options solely within control redeemable noncontrolling interests reported mezzanine section consolidated balance sheet liabilities equity greater redemption value initial carrying value note 21 stockbased compensation rtc’s longterm incentive plans authorize various types market performance based incentive awards may granted officers employees raytheon technologies corporation 2018 longterm incentive plan 2018 ltip approved shareowners april 30 2018 formerly united technologies corporation 2018 longterm incentive plan upon separation carrier otis occurred april 3 2020 shares remaining future issuance 2018 ltip adjusted accordance plan rules adjustment total 813 million shares authorized issuance pursuant awards 2018 ltip december 31 2020 approximately 48 million shares remain available awards 2018 ltip 2018 ltip contain aggregate annual award limit however sets annual award limit per participant unless shareowners approve proposal extend term 2018 ltip company’s annual meeting april 26 2021 2018 ltip expire authorized shares awarded april 30 2028 whichever sooner shareowners approve proposed extension 2018 ltip expire authorized shares awarded april 26 2031 whichever sooner result raytheon merger raytheon company shares restricted stock restricted stock units rsus performance share units outstanding prior merge issued originally raytheon company 2010 stock plan amended restated raytheon company 2018 stock plan together “legacy raytheon company plans” converted raytheon technologies shares restricted stock rsus resulted 45 million new shares restricted stock 20 million new rsus conversion stock awards resulted de minimis incremental compensation cost new equity awards issued legacy raytheon company plans result separation transactions distributions outstanding awards granted employees 2018 ltip predecessor plan amended restated united technologies longterm incentive plan converted carrier otis rtc stockbased awards depending whether awards vested unvested april 2 2020 vested awards converted vested awards rtx carrier otis unvested awards generally converted unvested awards employee’s postseparation employer conversion resulted incremental 17 million stock options 471 million stock appreciation rights 27 million performance share units 55 million rsus conversion awards resulted de minimis incremental compensation cost additionally concurrent separation transactions distributions performance share units outstanding april 3 2020 converted rsus using payout metrics based combination actual performance target remainder performance period result performance share units converted 40 million rsus converted rtc carrier otis rsus described converted awards 14 million stock options 479 million stock appreciation rights 71 million rsus converted carrier otis awards became obligations carrier otis due separation transactions distributions 2018 ltip exercise price awards set grant date may less fair market value per share date generally stock appreciation rights stock options term ten years threeyear vesting period subject limited exceptions event retirement annual stock appreciation rights stock options rsus held one year may become vested exercisable subject certain terms conditions ltip awards performancebased vesting generally minimum threeyear vesting period vest based actual performance preestablished metrics event retirement performancebased awards held one year remain eligible vest based actual performance relative performance goals historically repurchased shares common stock amount least equal number shares issued equity compensation arrangements continue evaluate policy conjunction overall share repurchase program measure cost sharebased payments including stock options stock appreciation rights fair value grant date recognize cost consolidated statement operations net expected forfeitures follows associated future income tax benefit recognized 63 million 47 million 31 million years ended december 31 2020 2019 2018 respectively years ended december 31 2020 2019 2018 amount cash received exercise stock options 15 million 27 million 36 million respectively associated tax benefit realized 48 million 75 million 59 million respectively addition years ended december 31 2020 2019 2018 associated tax benefit realized vesting performance share units restricted stock awards rsus 58 million 36 million 13 million respectively december 31 2020 315 million total unrecognized compensation cost related nonvested equity awards granted longterm incentive plans cost expected recognized ratably weightedaverage period 26 years summary transactions longterm incentive plans years ended december 31 2020 follows amounts tables paragraphs recast discontinued operations 1 weightedaverage grant exercise price 2 represents utc awards converted separation distribution conversion performance share units rsus discussed 3 represents raytheon company awards converted rtc restricted stock rsus accordance raytheon merger weightedaverage grant date fair value stock options stock appreciation rights granted 2020 2019 2018 2337 2081 2024 respectively weightedaverage grant date fair value performance share units vest upon achieving certain performance metrics granted 2019 2018 11787 13155 respectively total fair value awards vested years ended december 31 2020 2019 2018 284 million 211 million 149 million respectively total intrinsic value amount stock price exceeded exercise price date exercise stock options stock appreciation rights exercised years ended december 31 2020 2019 2018 206 million 383 million 283 million respectively total intrinsic value stock price vesting multiplied number underlying shares performance share units restricted awards vested 295 million 188 million 74 million years ended december 31 2020 2019 2018 respectively following table summarizes information equity awards outstanding vested expected vest well equity awards outstanding exercisable december 31 2020 1 weightedaverage exercise price per share 2 weightedaverage contractual remaining term years fair value option award estimated date grant using binomial lattice model following table indicates assumptions used estimating fair value awards granted 2020 2019 2018 latticebased option models incorporate ranges assumptions inputs ranges follows expected volatilities based returns stock including implied volatilities traded options stock binomial lattice model use historical data estimate equity award exercise employee termination behavior within valuation model expected term represents estimate period time equity awards expected remain outstanding riskfree rate based term structure interest rates time equity award grant note 22 segment financial data operations periods presented herein classified four principal segments collins aerospace pratt whitney ris rmd segments generally based management structure businesses grouping similar operating companies management organization general operating autonomy diversified products services results ris rmd reflect period subsequent completion raytheon merger april 3 2020 collins aerospace systems leading global provider technologically advanced aerospace defense products aftermarket service solutions aircraft manufacturers airlines regional business general aviation well defense commercial space operations collins aerospace’s product lines include integrated avionics systems communications systems navigation systems electric power generation management distribution systems environmental control systems flight control systems air data aircraft sensing systems engine control systems engine nacelle systems including thrust reversers mounting pylons interior exterior aircraft lighting aircraft seating cargo systems landing systems including landing gear wheels braking systems hoists winches fire ice detection protection systems actuation systems engine components propeller systems collins aerospace also designs produces supports cabin interior communications aviation systems oxygen systems food beverage preparation storage galley systems lavatory wastewater management systems collins aerospace solutions support human space exploration environmental control power systems extravehicular activity suits support government defense customer missions providing airborne intelligence surveillance reconnaissance systems test training range systems crew escape systems simulation training solutions collins aerospace also provides information management services worldwide voice data communication networks solutions aftermarket services include spare parts overhaul repair engineering technical support training fleet management solutions information management services pratt whitney among world’s leading suppliers aircraft engines commercial military business jet general aviation customers pratt whitney’s commercial engines military engines businesses design develop produce maintain families large engines wide narrowbody large regional aircraft commercial customers fighter bomber tanker transport aircraft military customers pratt whitney’s small engine business pratt whitney canada pwc among world’s leading suppliers engines powering regional airlines general business aviation well helicopters pratt whitney also produces sells services military commercial auxiliary power units pratt whitney provides fleet management services aftermarket maintenance repair overhaul services segments raytheon intelligence space global leading developer provider integrated sensor communication systems advanced missions advanced training cyber software solutions intelligence defense federal commercial customers ris capabilities include spacebased sensors data processing systems multidomain intelligence solutions electronic warfare solutions including highenergy laser weapons systems command control systems modernization training mission support services advanced cyber analytics systems defense services raytheon missiles defense leading designer developer integrator producer sustainer integrated air missile defense systems defensive combat solutions large land seabased radars command control communications intelligence solutions naval undersea sensor solutions us foreign government customers rmd’s integrated air missile defense systems include proven patriot missile defense system nextgeneration radar systems defeat advanced threats defensive solutions include counterunmanned aircraft systems ship defense systems combat solutions include precision munitions missiles hypersonics high power microwave weapons command control communications intelligence solutions include integrated networked actionable combat solutions air land combat commanders rmd’s naval undersea solutions include combat ship electronic sensing systems well undersea sensing effects solutions sustainment solutions include maintenance depot support training predictive analytics services segment information total sales operating profit segment include intersegment sales generally recorded prices approximating selling entity able obtain external sales collins aerospace pratt whitney segments costplus specified fee may differ selling entity would able obtain sales external customers ris rmd segments conjunction raytheon merger revised measurement segment performance reflect management reviews evaluates operating performance new segment performance measurement certain acquisition accounting adjustments excluded segments’ results order better represent ongoing operational performance segments addition majority corporate expenses allocated segments excluding certain items remain corporate included management’s review segments’ results historical results discussion presentation business segments reflect impact adjustments periods presented also result raytheon merger present fascas operating adjustment outside segment results represents difference service cost component pension prb expense financial accounting standards fas requirements us gaap pension prb expense us government cost accounting standards cas primarily related ris rmd segments ultimate liability pension prb costs fas cas similar pattern cost recognition different time generally expect recover related ris rmd pension prb liabilities pricing products services us government collins aerospace pratt whitney segments generally record pension prb expense fas basis historical results impacted change segment reporting segment information years ended december 31 follows 1 includes operating results certain smaller nonreportable business segments including forcepoint llc acquired part raytheon merger subsequently disposed january 2021 2 net expenses related us army’s lower tier air missile defense sensor ltamds project 130 million 2020 included corporate operating profit included management’s evaluation business segment results amounts recorded 2019 2018 3 operating profit loss 2020 includes 32 billion goodwill impairment charge second quarter 2020 related two collins aerospace reporting units refer “note 2 acquisitions dispositions goodwill intangible assets” additional information 1 total assets include acquired intangible assets property plant equipment fair value adjustment related amortization expense included acquisition accounting adjustments geographic external sales origin longlived assets geographic external sales attributed geographic regions based location origin us external sales include export sales commercial customers outside us sales us government commercial affiliated customers known resale customers outside us longlived assets net fixed assets attributed specific geographic regions disaggregation revenue also disaggregate contracts customers geographic location based customer location customer sales type geographic location based customer location uses end user customer location known practical determine instances end user customer known practical determine utilize “ship to” location customer location addition ris rmd segments disaggregate contracts customers contract type believe categories best depict nature amount timing uncertainty revenue cash flows affected economic factors historical results recast reflect presentation disaggregation segment sales disaggregated geographic region years ended december 31 2020 2019 2018 follows segment sales disaggregated customer years ended december 31 2020 2019 2018 follows 1 excludes foreign military sales us government 1 excludes foreign military sales us government 1 excludes foreign military sales us government sales airbus primarily relate pratt whitney collins aerospace products prior discounts incentives approximately 7299 million 9879 million 10025 million years ended december 31 2020 2019 2018 respectively segment sales disaggregated sales type years ended december 31 2020 2019 2018 follows ris rmd segment sales disaggregated contract type year ended december 31 2020 follows note 23 quarterly operating results unaudited item 9item 8 financial statements supplementary data 1996 1995 balance sheets financial statements years 1996 1995 1994 together report thereon price waterhouse llp dated january 23 1997 appearing pages 28 43 corporations 1996 annual report shareowners incorporated reference report 1996 1995 selected quarterly financial data appearing page 43 corporations 1996 annual report shareowners incorporated reference report item 9item 8 financial statements supplementary data 2000 1999 consolidated balance sheet financial statements years 2000 1999 1998 together report thereon pricewaterhousecoopers llp dated january 18 2001 appearing pages 9 13 corporations 2000 annual report shareowners incorporated reference form 10k 2000 1999 selected quarterly financial data appearing page 24 corporations 2000 annual report shareowners incorporated reference form 10k item 9item 8 financial statements supplementary data 2002 2001 consolidated balance sheet financial statements years 2002 2001 2000 together report thereon pricewaterhousecoopers llp dated january 16 2003 appearing pages 15 19 corporations 2002 annual report shareowners incorporated reference form 10k 2002 2001 selected quarterly financial data appearing page 34 corporations 2002 annual report shareowners incorporated reference form 10k item 9item 8 financial statements supplementary data 2018 2017 consolidated balance sheet consolidated financial statements years ended 2018 2017 2016 together report thereon pricewaterhousecoopers llp dated february 7 2019 2018 annual report filed exhibit 13 form 10k incorporated herein reference 2018 2017 unaudited selected quarterly financial data appearing 2018 annual report filed exhibit 13 form 10k incorporated herein reference item 9item 8 financial statements supplementary data 2001 2000 consolidated balance sheet financial statements years 2001 2000 1999 together report thereon pricewaterhousecoopers llp dated january 17 2002 appearing pages 10 26 corporations 2001 annual report shareowners incorporated reference form 10k 2001 2000 selected quarterly financial data appearing page 26 corporations 2001 annual report shareowners incorporated reference form 10k item 9item 8 financial statements supplementary data 2012 2011 consolidated balance sheet consolidated financial statements years 2012 2011 2010 together report thereon pricewaterhousecoopers llp dated february 7 2013 2012 annual report filed exhibit 13 form 10k incorporated herein reference 2012 2011 unaudited selected quarterly financial data appearing 2012 annual report filed exhibit 13 form 10k incorporated herein reference item 9item 8 financial statements supplementary data 2017 2016 consolidated balance sheet consolidated financial statements years ended 2017 2016 2015 together report thereon pricewaterhousecoopers llp dated february 8 2018 2017 annual report filed exhibit 13 form 10k incorporated herein reference 2017 2016 unaudited selected quarterly financial data appearing 2017 annual report filed exhibit 13 form 10k incorporated herein reference item 9 nannannannannannanitem 15 exhibits financial statement schedules reports form 8k financial statements financial statement schedules exhibits 1 financial statements incorporated reference 2003 annual report shareowners 14 2 financial statement schedule three years ended december 31 2003 page number form 10k report independent auditors financial statement schedule si schedule ii valuation qualifying accounts sii consent independent auditors fi schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings 15 b october 16 2003 corporation filed report form 8k furnishing item 12 october 16 2003 press release announcing third quarter 2003 results press release incorporated reference herein deemed “filed” within meaning section 18 securities act 16 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth 17 report independent auditors financial statement schedule board directors united technologies corporation audits consolidated financial statements referred report dated january 20 2004 appearing 2003 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut january 20 2004 si united technologies corporation subsidiaries schedule ii valuation qualifying accounts three years ended december 31 2003 millions dollars corporation reclassified 48 million provided aerospace customer financing exposures allowance doubtful accounts primarily accrued liabilities sii consent independent auditors hereby consent incorporation reference registration statement form s3 33360276 registration statement form s4 33377991 amended posteffective amendment 1 form s8 3337799101 registration statements form s8 nos 333100724 333100723 333100718 33321853 33318743 33321851 3357769 3326580 3326627 3351385 3358937 33377817 333110020 333103307 333103306 333103305 33382911 united technologies corporation report dated january 20 2004 relating financial statements appears 2003 annual report shareowners incorporated reference annual report form 10k also consent incorporation reference report dated january 20 2004 financial statement schedule appears page si form 10k pricewaterhousecoopers llp pricewaterhousecoopers llp hartford connecticut february 4 2004 fiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated reference 2004 annual report 2 financial statement schedule three years ended december 31 2004 page number form 10k report independent registered public accounting firm financial statement schedule si schedule ii valuation qualifying accounts sii consent registered public accounting firm fi schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1015 contracts arrangements compensatory plans filed exhibits pursuant item 15c requirements form 10k reports signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant james e geisler james e geisler vicepresident finance gregory j hayes gregory j hayes vice president accounting control controller date february 10 2005 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth report independent registered public accounting firm financial statement schedule board directors united technologies corporation audits consolidated financial statements referred report dated february 10 2005 appearing 2004 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 10 2005 si united technologies corporation subsidiaries schedule ii valuation qualifying accounts three years ended december 31 2004 millions dollars sii consent independent registered public accounting firm hereby consent incorporation reference registration statements form s3 nos 33360276 333118810 registration statement form s4 33377991 amended posteffective amendment 1 form s8 3337799101 registration statements form s8 nos 333100724 333100723 333100718 33321853 33318743 33321851 3357769 3326580 3326627 3351385 3358937 33377817 333110020 333103307 333103306 333103305 33382911 united technologies corporation report dated february 10 2005 relating financial statements management’s assessment effectiveness internal control financial reporting effectiveness internal control financial reporting appears 2004 annual report shareowners incorporated reference annual report form 10k also consent incorporation reference report dated february 10 2005 relating financial statement schedule appears page si form 10k pricewaterhousecoopers llp hartford connecticut february 10 2005item 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated reference 2005 annual report 2 financial statement schedule three years ended december 31 2005 page number form 10k report independent registered public accounting firm financial statement schedule si schedule ii valuation qualifying accounts sii consent independent registered public accounting firm fi schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1030 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant james e geisler james e geisler vicepresident finance gregory j hayes gregory j hayes vice president accounting control controller date february 9 2006 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth debra valentine debra valentine vice president secretary associate general counsel attorneyinfact date february 9 2006 report independent registered public accounting firm financial statement schedule board directors united technologies corporation audits consolidated financial statements management’s assessment effectiveness internal control financial reporting effectiveness internal control financial reporting referred report dated february 9 2006 appearing 2005 annual report shareowners united technologies corporation report consolidated financial statements assessment incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 9 2006 si united technologies corporation subsidiaries schedule ii valuation qualifying accounts three years ended december 31 2005 millions dollars allowances doubtful accounts customer financing activity sii consent independent registered public accounting firm hereby consent incorporation reference registration statement form s3 333124743 registration statement form s4 33377991 amended posteffective amendment 1 form s8 33377991 registration statements form s8 nos 333125476 333125478 333125293 333100724 333100723 333100718 33321853 33318743 33321851 03357769 03351385 03358937 33377817 333110020 333103307 333103306 333103305 33382911 united technologies corporation report dated february 9 2006 relating financial statements management’s assessment effectiveness internal control financial reporting effectiveness internal control financial reporting appears 2005 annual report shareowners incorporated annual report form 10k also consent incorporation reference report dated february 9 2006 relating financial statement schedule appears page si form 10k pricewaterhousecoopers llp hartford connecticut february 9 2006 fiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated reference 2006 annual report 2 financial statement schedule three years ended december 31 2006 page number form 10k report independent registered public accounting firm financial statement schedule si schedule ii valuation qualifying accounts sii consent independent registered public accounting firm fi schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings 18 19 20 21 statement computations per share earnings statement computation ratios annual report year ended december 31 2006 except information thereof expressly incorporated reference form 10k annual report provided solely information securities exchange commission deemed “filed” part form 10k code ethics utc code ethics may accessed via utc’s website wwwutccomresponsibilityethicsenglishcoeenglishpdf subsidiaries registrant consent pricewaterhousecoopers llp included page fi form 10k powers attorney john v faraci jeanpierre garnier jamie gorelick charles r lee richard mccormick harold w mcgraw iii richard b myers frank p popoff h patrick swygert andré villeneuve h wagner christine todd whitman rule 13a14a15d14a certifications section 1350 certifications notes exhibits list submitted electronically herewith exhibits 101 1035 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports 22 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant james e geisler james e geisler vice president finance gregory j hayes gregory j hayes vice president accounting finance controller date february 8 2007 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth signature title date george david george david chairman director chief executive officer february 8 2007 louis r chênevert louis r chênevert director president chief operating officer february 8 2007 james e geisler james e geisler vice president finance february 8 2007 gregory j hayes gregory j hayes vice president accounting finance controller february 8 2007 john v faraci john v faraci director jeanpierre garnier jeanpierre garnier director jamie gorelick jamie gorelick director charles r lee charles r lee director richard mccormick richard mccormick director harold w mcgraw iii harold w mcgraw iii director richard b myers richard b myers director frank p popoff frank p popoff director h patrick swygert h patrick swygert director andré villeneuve andré villeneuve director h wagner h wagner director christine todd whitman christine todd whitman director debra valentine debra valentine vice president secretary associate general counsel attorneyinfact date february 8 2007 23 report independent registered public accounting firm financial statement schedule board directors united technologies corporation audits consolidated financial statements management’s assessment effectiveness internal control financial reporting effectiveness internal control financial reporting referred report dated february 8 2007 appearing 2006 annual report shareowners united technologies corporation report consolidated financial statements assessment incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 8 2007 si united technologies corporation subsidiaries schedule ii valuation qualifying accounts three years ended december 31 2006 millions dollars allowances doubtful accounts customer financing activity sii exhibit 23 consent independent registered public accounting firm hereby consent incorporation reference registration statement form s3 333124743 registration statement form s4 33377991 amended posteffective amendment 1 form s8 33377991 registration statements form s8 nos 333125478 333125476 333125293 333110020 333103307 333103305 333100724 333100723 333100718 33382911 33377817 33321853 33321851 03358937 03357769 03351385 united technologies corporation report dated february 8 2007 relating financial statements management’s assessment effectiveness internal control financial reporting effectiveness internal control financial reporting appears annual report shareowners incorporated annual report form 10k also consent incorporation reference report dated february 8 2007 relating financial statement schedule appears page si form 10k pricewaterhousecoopers llp hartford connecticut february 8 2007 fiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated reference 2007 annual report 2 financial statement schedule three years ended december 31 2007 page number form 10k report independent registered public accounting firm financial statement schedule si schedule iivaluation qualifying accounts sii consent independent registered public accounting firm fi schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings 16 17 18 19 notes exhibits list submitted electronically herewith exhibits 101 1035 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports 20 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant james e geisler james e geisler vice president finance gregory j hayes gregory j hayes vice president accounting finance margaret smyth margaret smyth vice president controller date february 7 2008 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth 21 charles gill charles gill senior vice president general counsel attorneyinfact date february 7 2008 22 report independent registered public accounting firm financial statement schedule board directors united technologies corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 7 2008 appearing 2007 annual report shareowners united technologies corporation report consolidated financial statements assessment incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 7 2008 united technologies corporation subsidiaries schedule iivaluation qualifying accounts three years ended december 31 2007 millions dollars allowances doubtful accounts customer financing activity iiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated reference 2008 annual report 2 financial statement schedule three years ended december 31 2008 page number form 10k schedule ireport independent registered public accounting firm financial statement schedule si schedule iivaluation qualifying accounts sii schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1036 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports attached exhibit 100 report following formatted xbrl extensible business reporting language year ended december 31 2008 consolidated statement operations ii consolidated balance sheet iii consolidated statement cash flows iv consolidated statement changes shareowners’ equity v notes consolidated financial statements tagged block text format users data advised pursuant rule 401 regulation st information contained xbrl documents unaudited official publicly filed financial statements united technologies corporation purpose submitting xbrl formatted documents test related format technology result investors continue rely official filed version furnished documents rely information making investment decisions accordance rule 402 regulation st xbrl related information exhibit 100 annual report form 10k shall deemed “filed” purposes section 18 exchange act otherwise subject liability section shall incorporated reference registration statement document filed securities act exchange act except shall expressly set forth specific reference filing signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant gregory j hayes gregory j hayes senior vice president chief financial officer margaret smyth margaret smyth vice president controller date february 11 2009 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated date february 11 2009 schedule report independent registered public accounting firm financial statement schedule board directors united technologies corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 11 2009 appearing 2008 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 11 2009 si schedule ii united technologies corporation subsidiaries valuation qualifying accounts three years ended december 31 2008 millions dollars allowances doubtful accounts customer financing activity siiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated reference 2009 annual report 2 financial statement schedule three years ended december 31 2009 page number form 10k schedule ireport independent registered public accounting firm financial statement schedule si schedule iivaluation qualifying accounts sii schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1031 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports attached exhibit 101 report following formatted xbrl extensible business reporting language year ended december 31 2009 consolidated statement operations ii consolidated balance sheet iii consolidated statement cash flows iv consolidated statement changes equity v notes consolidated financial statements tagged block text format vi financial schedule valuation qualifying accounts tagged block text format accordance rule 406t regulation st xbrl related information exhibit 101 annual report form 10k shall deemed “filed” purposes section 18 exchange act otherwise subject liability section shall part registration statement document filed securities act exchange act except shall expressly set forth specific reference filing signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant gregory j hayes gregory j hayes senior vice president chief financial officer margaret smyth margaret smyth vice president controller date february 11 2010 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated charles gill charles gill senior vice president general counsel attorneyinfact date february 11 2010 schedule report independent registered public accounting firm financial statement schedule board directors united technologies corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 11 2010 appearing 2009 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 11 2010 si schedule ii united technologies corporation subsidiaries valuation qualifying accounts three years ended december 31 2009 millions dollars siiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated reference 2010 annual report 2 financial statement schedule three years ended december 31 2010 page number form 10k schedule ireport independent registered public accounting firm financial statement schedule si schedule iivaluation qualifying accounts sii schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1032 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports attached exhibit 101 report following formatted xbrl extensible business reporting language consolidated statement operations three years ended december 31 2010 ii consolidated balance sheet december 31 2010 2009 iii consolidated statement cash flows three years ended december 31 2010 iv consolidated statement changes equity three years ended december 31 2010 v notes consolidated financial statements vi financial schedule valuation qualifying accounts accordance rule 406t regulation st xbrl related information exhibit 101 annual report form 10k shall deemed “filed” purposes section 18 exchange act otherwise subject liability section shall part registration statement document filed securities act exchange act except shall expressly set forth specific reference filing signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant gregory j hayes gregory j hayes senior vice president chief financial officer peter f longo peter f longo vice president controller date february 10 2011 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date louis r chênevert louis r chênevert director chairman chief executive officer principal executive officer february 10 2011 gregory j hayes gregory j hayes senior vice president chief financial officer principal financial officer february 10 2011 peter f longo peter f longo vice president controller principal accounting officer february 10 2011 john v faraci john v faraci director jeanpierre garnier jeanpierre garnier director jamie gorelick jamie gorelick director edward kangas edward kangas director ellen j kullman ellen j kullman director charles r lee charles r lee director richard mccormick richard mccormick director charles gill charles gill senior vice president general counsel attorneyinfact date february 10 2011 schedule report independent registered public accounting firm financial statement schedule board directors united technologies corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 10 2011 appearing 2010 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 10 2011 si schedule ii united technologies corporation subsidiaries valuation qualifying accounts three years ended december 31 2010 millions dollars siiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated herein reference 2011 annual report 2 financial statement schedule three years ended december 31 2011 page number form 10k schedule ireport independent registered public accounting firm financial statement schedule si schedule iivaluation qualifying accounts sii schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1033 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports attached exhibit 101 report following formatted xbrl extensible business reporting language consolidated statement operations three years ended december 31 2011 ii consolidated balance sheet december 31 2011 2010 iii consolidated statement cash flows three years ended december 31 2011 iv consolidated statement changes equity three years ended december 31 2011 v notes consolidated financial statements vi financial schedule valuation qualifying accounts accordance rule 406t regulation st xbrl related information exhibit 101 annual report form 10k shall deemed “filed” purposes section 18 exchange act otherwise subject liability section shall part registration statement document filed securities act exchange act except shall expressly set forth specific reference filing signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant gregory j hayes gregory j hayes senior vice president chief financial officer peter f longo peter f longo vice president controller date february 9 2012 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date louis r chênevert louis r chênevert director chairman chief executive officer principal executive officer february 9 2012 gregory j hayes gregory j hayes senior vice president chief financial officer principal financial officer february 9 2012 peter f longo peter f longo vice president controller principal accounting officer february 9 2012 john v faraci john v faraci director jeanpierre garnier jeanpierre garnier director jamie gorelick jamie gorelick director edward kangas edward kangas director ellen j kullman ellen j kullman director charles r lee charles r lee director richard mccormick richard mccormick director harold w mcgraw iii harold w mcgraw iii director signature title date richard b myers richard b myers director h patrick swygert h patrick swygert director andré villeneuve andré villeneuve director christine todd whitman christine todd whitman director charles gill charles gill senior vice president general counsel attorneyinfact date february 9 2012 schedule report independent registered public accounting firm financial statement schedule board directors united technologies corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 9 2012 appearing 2011 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 9 2012 si schedule ii united technologies corporation subsidiaries valuation qualifying accounts three years ended december 31 2011 millions dollars siiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated herein reference 2013 annual report 2 financial statement schedule three years ended december 31 2013 page number form 10k schedule ireport independent registered public accounting firm financial statement schedule si schedule iivaluation qualifying accounts sii schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1031 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports attached exhibit 101 report following formatted xbrl extensible business reporting language consolidated statement operations three years ended december 31 2013 ii consolidated statement comprehensive income three years ended december 31 2013 iii consolidated balance sheet december 31 2013 2012 iv consolidated statement cash flows three years ended december 31 2013 v consolidated statement changes equity three years ended december 31 2013 vi notes consolidated financial statements vii financial schedule valuation qualifying accounts signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant gregory j hayes gregory j hayes senior vice president chief financial officer john e stantial john e stantial acting controller assistant controller financial reporting date february 6 2014 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date louis r chênevert director chairman chief executive officer principal executive officer february 6 2014 louis r chênevert gregory j hayes senior vice president chief financial officer principal financial officer principal accounting officer february 6 2014 gregory j hayes john e stantial acting controller assistant controller financial reporting february 6 2014 john e stantial john v faraci director john v faraci jeanpierre garnier director jeanpierre garnier jamie gorelick director jamie gorelick edward kangas director edward kangas ellen j kullman director ellen j kullman marshall larsen director marshall larsen harold w mcgraw iii director harold w mcgraw iii richard b myers director richard b myers h patrick swygert director h patrick swygert andré villeneuve director andré villeneuve christine todd whitman director christine todd whitman charles gill charles gill senior vice president general counsel attorneyinfact date february 6 2014 schedule report independent registered public accounting firm financial statement schedule board directors united technologies corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 6 2014 appearing 2013 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 6 2014 si schedule ii united technologies corporation subsidiaries valuation qualifying accounts three years ended december 31 2013 millions dollars siiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated herein reference 2014 annual report 2 financial statement schedule three years ended december 31 2014 page number form 10k schedule ireport independent registered public accounting firm financial statement schedule si schedule iivaluation qualifying accounts sii schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1031 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports attached exhibit 101 report following formatted xbrl extensible business reporting language consolidated statement operations three years ended december 31 2014 ii consolidated statement comprehensive income three years ended december 31 2014 iii consolidated balance sheet december 31 2014 2013 iv consolidated statement cash flows three years ended december 31 2014 v consolidated statement changes equity three years ended december 31 2014 vi notes consolidated financial statements vii financial schedule valuation qualifying accounts signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant akhil johri akhil johri senior vice president chief financial officer john e stantial john e stantial acting controller assistant controller financial reporting date february 5 2015 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date gregory j hayes director president chief executive officer principal executive officer february 5 2015 gregory j hayes akhil johri senior vice president chief financial officer principal financial officer principal accounting officer february 5 2015 akhil johri john e stantial acting controller assistant controller financial reporting february 5 2015 john e stantial john v faraci director john v faraci jeanpierre garnier director jeanpierre garnier edward kangas director edward kangas ellen j kullman director ellen j kullman marshall larsen director marshall larsen harold w mcgraw iii director harold w mcgraw iii richard b myers director richard b myers h patrick swygert director h patrick swygert andré villeneuve director andré villeneuve christine todd whitman director christine todd whitman charles gill charles gill senior vice president general counsel attorneyinfact date february 5 2015 schedule report independent registered public accounting firm financial statement schedule board directors united technologies corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 5 2015 appearing 2014 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 5 2015 si schedule ii united technologies corporation subsidiaries valuation qualifying accounts three years ended december 31 2014 millions dollars note 1 included adjustments year ended december 31 2014 reductions valuation allowances associated agreement state taxing authority monetization tax credits siiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated herein reference 2015 annual report 2 financial statement schedule three years ended december 31 2015 page number form 10k schedule ireport independent registered public accounting firm financial statement schedule si schedule iivaluation qualifying accounts sii schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1024 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports attached exhibit 101 report following formatted xbrl extensible business reporting language consolidated statement operations three years ended december 31 2015 ii consolidated statement comprehensive income three years ended december 31 2015 iii consolidated balance sheet december 31 2015 2014 iv consolidated statement cash flows three years ended december 31 2015 v consolidated statement changes equity three years ended december 31 2015 vi notes consolidated financial statements vii financial schedule valuation qualifying accounts signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant akhil johri akhil johri executive vice president chief financial officer neil g mitchill jr neil g mitchill jr corporate vice president controller date february 11 2016 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date gregory j hayes director president chief executive officer principal executive officer february 11 2016 gregory j hayes akhil johri executive vice president chief financial officer principal financial officer february 11 2016 akhil johri neil g mitchill jr corporate vice president controller principal accounting officer february 11 2016 neil g mitchill jr john v faraci director john v faraci jeanpierre garnier director jeanpierre garnier edward kangas director edward kangas ellen j kullman director ellen j kullman marshall larsen director marshall larsen harold w mcgraw iii director harold w mcgraw iii richard b myers director richard b myers fredric g reynolds director fredric g reynolds brian c rogers director brian c rogers h patrick swygert director h patrick swygert andré villeneuve director andré villeneuve christine todd whitman director christine todd whitman charles gill charles gill executive vice president general counsel attorneyinfact date february 11 2016 schedule report independent registered public accounting firm financial statement schedule board directors united technologies corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 11 2016 appearing 2015 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 11 2016 si schedule ii united technologies corporation subsidiaries valuation qualifying accounts three years ended december 31 2015 millions dollars note 1 included adjustments table adjustments valuation allowances associated agreement state taxing authority monetization tax credits siiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated herein reference 2016 annual report 2 financial statement schedule three years ended december 31 2016 page number form 10k schedule ireport independent registered public accounting firm financial statement schedule si schedule iivaluation qualifying accounts sii schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1023 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports attached exhibit 101 report following formatted xbrl extensible business reporting language consolidated statement operations three years ended december 31 2016 ii consolidated statement comprehensive income three years ended december 31 2016 iii consolidated balance sheet december 31 2016 2015 iv consolidated statement cash flows three years ended december 31 2016 v consolidated statement changes equity three years ended december 31 2016 vi notes consolidated financial statements vii financial schedule valuation qualifying accounts signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant akhil johri akhil johri executive vice president chief financial officer robert j bailey robert j bailey corporate vice president controller date february 9 2017 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date gregory j hayes director chairman president chief executive officer principal executive officer february 9 2017 gregory j hayes akhil johri executive vice president chief financial officer principal financial officer february 9 2017 akhil johri robert j bailey corporate vice president controller principal accounting officer february 9 2017 robert j bailey lloyd j austin iii director lloyd j austin iii diane bryant director diane bryant john v faraci director john v faraci jeanpierre garnier director jeanpierre garnier edward kangas director edward kangas ellen j kullman director ellen j kullman marshall larsen director marshall larsen harold w mcgraw iii director harold w mcgraw iii richard b myers director richard b myers fredric g reynolds director fredric g reynolds brian c rogers director brian c rogers h patrick swygert director h patrick swygert andré villeneuve director andré villeneuve christine todd whitman director christine todd whitman charles gill charles gill executive vice president general counsel attorneyinfact date february 9 2017 schedule report independent registered public accounting firm financial statement schedule board directors shareowners united technologies corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 9 2017 appearing 2016 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 9 2017 si schedule ii united technologies corporation subsidiaries valuation qualifying accounts three years ended december 31 2016 millions dollars note 1 included adjustments table adjustments valuation allowances associated agreement state taxing authority monetization tax credits siiitem 15 exhibits financial statement schedules afinancial statements financial statement schedules exhibits 1financial statements incorporated herein reference 2019 annual report 2 financial statement schedule three years ended december 31 2019 page number form 10k schedule ireport independent registered public accounting firm financial statement schedulei schedule iivaluation qualifying accountsii schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1040 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports attached exhibit 101 report following formatted xbrl extensible business reporting language consolidated statement operations three years ended december 31 2019 ii consolidated statement comprehensive income three years ended december 31 2019 iii consolidated balance sheet december 31 2019 2018 iv consolidated statement cash flows three years ended december 31 2019 v consolidated statement changes equity three years ended december 31 2019 vi notes consolidated financial statements vii financial schedule valuation qualifying accounts item 16 form 10k summary none signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant bys neil g mitchill jr neil g mitchill jr acting senior vice president chief financial officer bys robert j bailey robert j bailey corporate vice president controller date february 6 2020 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signaturetitledate gregory j hayes director chairman president chief executive officer principal executive officerfebruary 6 2020 gregory j hayes neil g mitchill jr acting senior vice president chief financial officer principal financial officerfebruary 6 2020 neil g mitchill jr robert j bailey corporate vice president controller principal accounting officerfebruary 6 2020 robert j bailey lloyd j austin iii director lloyd j austin iii director diane bryant john v faraci director john v faraci jeanpierre garnier director jeanpierre garnier christopher j kearney director christopher j kearney ellen j kullman director ellen j kullman marshall larsen director marshall larsen harold w mcgraw iii director harold w mcgraw iii margaret l osullivan director margaret l osullivan denise l ramos director denise l ramos fredric g reynolds director fredric g reynolds brian c rogers director brian c rogers bys charles gill charles gill executive vice president general counsel attorneyinfact date february 6 2020 schedule report independent registered public accounting firm financial statement schedule shareowners board directors united technologies corporation audits consolidated financial statements referred report dated february 6 2020 appearing 2019 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 6 2020 schedule ii united technologies corporation subsidiaries valuation qualifying accounts three years ended december 31 2019 millions dollars iiitem 15 exhibits financial statement schedules financial statements schedules 1 following financial statements raytheon technologies corporation supplemental information report independent registered public accounting firm included form 10k consolidated statement operations years ended december 31 2020 2019 2018 consolidated statement comprehensive income years ended december 31 2020 2019 2018 consolidated balance sheet december 31 2020 2019 consolidated statement cash flows years ended december 31 2020 2019 2018 consolidated statement changes equity years ended december 31 2020 2019 2018 notes consolidated financial statements report pricewaterhousecoopers llp dated february 8 2021 company’s financial statements filed part hereof fiscal years ended december 31 2020 2019 2018 company’s internal control financial reporting december 31 2020 included part ii item 8 annual report form 10k independent registered public accounting firm’s consent respect report appears exhibit 23 annual report form 10k 2 list financial statement schedules page number form 10k report independent registered public accounting firm financial statement schedulei schedule iivaluation qualifying accounts three years ended december 31 2020 ii schedules omitted required applicable information otherwise included b exhibits following list exhibits includes exhibits submitted form 10k filed securities exchange commission sec incorporated reference filings exhibits marked asterisk filed electronically herewith item 16 form 10k summary applicable signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized raytheon technologies corporation registrant datedfebruary 8 2021bys anthony f o’brien anthony f o’brien executive vice president chief financial officer behalf registrant’s principal financial officer datedfebruary 8 2021bys michael j wood michael j wood corporate vice president controller behalf registrant’s principal accounting officer pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated bys frank r jimenez frank r jimenez executive vice president general counsel date february 8 2021 report independent registered public accounting firm financial statement schedule shareowners board directors raytheon technologies corporation audits consolidated financial statements referred report dated february 8 2021 appearing 2020 annual report shareowners raytheon technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp boston massachusetts february 8 2021 raytheon technologies corporation subsidiaries schedule ii valuation qualifying accounts three years ended december 31 2020 millions dollars 1 amounts prior 2020 within schedule include valuation allowances related discontinued operations iinannanitem 15 exhibits financial statement schedules reports form 8k exhibit number 3i restated certificate incorporation incorporated reference exhibit 3i corporations quarterly report form 10q commission file number 1812 quarterly period ended june 30 2000 3ii bylaws amended restated effective march 21 2001 incorporated reference exhibit 3ii corporations quarterly report form 10q commission file number 1812 quarterly period ended march 31 2001 41 amended restated indenture dated may 1 2001 corporation bank new york trustee incorporated reference exhibit 4a corporations registration statement form s3 file 33360276 filed sec may 4 2001 corporation hereby agrees furnish commission upon request copy instrument defining rights holders longterm debt corporation consolidated subsidiaries unconsolidated subsidiaries 101 united technologies corporation annual executive incentive compensation plan amended 102 united technologies corporation executive estate preservation program incorporated reference exhibit 10iv corporations annual report form 10k commission file number 1812 fiscal year ended december 31 1992 103 united technologies corporation pension preservation plan amended 104 united technologies corporation senior executive severance plan incorporated reference exhibit 10vi corporations annual report form 10k commission file number 1812 fiscal year ended december 31 1992 105 united technologies corporation deferred compensation plan amended 106 united technologies corporation long term incentive plan amended 107 united technologies corporation executive disability income protection standard separation agreement plan incorporated reference exhibit 10xii corporations annual report form 10k commission file number 1812 fiscal year ended december 31 1992 108 united technologies corporation directors restricted stockunit program incorporated reference exhibit 10xiii corporations annual report form 10k commission file number 1812 fiscal year ended december 31 1992 109 united technologies corporation board directors deferred stock unit plan amendment 1 thereto incorporated reference exhibit 10iiia1 corporations report form 10q commission file number 1812 quarterly period ended june 30 2000 signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant stephen f page vice chairman chief financial officer date february 10 2003 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities indicated date set forth signature title date george david chairman director president chief executive officer february 10 2003 stephen f page vice chairman director chief financial officer february 10 2003 david g nord vice president controller february 10 2003 jeanpierre garnier director william h trachsel attorneyinfact jamie gorelick director date february 10 charles r lee director richard mccormick director frank p popoff director h patrick swygert director andre villeneuve director h wagner director sanford weill director certification george david certify 1 reviewed annual report form 10k united technologies corporation 2 based knowledge annual report contain untrue statement material fact omit state material fact necessary make statements made light circumstances statements made misleading respect period covered annual report 3 based knowledge financial statements financial information included annual report fairly present material respects financial condition results operations cash flows registrant periods presented annual report 4 registrants certifying officers responsible establishing maintaining disclosure controls procedures defined exchange act rules 13a14 15d14 registrant designed disclosure controls procedures ensure material information relating registrant including consolidated subsidiaries made known us others within entities particularly period annual report prepared b evaluated effectiveness registrants disclosure controls procedures date within 90 days prior filing date annual report evaluation date c presented annual report conclusions effectiveness disclosure controls procedures based evaluation date 5 registrants certifying officers disclosed based recent evaluation registrants auditors audit committee registrants board directors persons performing equivalent function significant deficiencies design operation internal controls could adversely affect registrants ability record process summarize report financial data identified registrants auditors material weaknesses internal controls b fraud whether material involves management employees significant role registrants internal controls 6 registrants certifying officers indicated annual report whether significant changes internal controls factors could significantly affect internal controls subsequent date recent evaluation including corrective actions regard significant deficiencies material weaknesses date february 10 2003 george david chairman chief executive officer certification stephen f page certify 1 reviewed annual report form 10k united technologies corporation 2 based knowledge annual report contain untrue statement material fact omit state material fact necessary make statements made light circumstances statements made misleading respect period covered annual report 3 based knowledge financial statements financial information included annual report fairly present material respects financial condition results operations cash flows registrant periods presented annual report 4 registrants certifying officers responsible establishing maintaining disclosure controls procedures defined exchange act rules 13a14 15d14 registrant designed disclosure controls procedures ensure material information relating registrant including consolidated subsidiaries made known us others within entities particularly period annual report prepared b evaluated effectiveness registrants disclosure controls procedures date within 90 days prior filing date annual report evaluation date c presented annual report conclusions effectiveness disclosure controls procedures based evaluation date 5 registrants certifying officers disclosed based recent evaluation registrants auditors audit committee registrants board directors persons performing equivalent function significant deficiencies design operation internal controls could adversely affect registrants ability record process summarize report financial data identified registrants auditors material weaknesses internal controls b fraud whether material involves management employees significant role registrants internal controls 6 registrants certifying officers indicated annual report whether significant changes internal controls factors could significantly affect internal controls subsequent date recent evaluation including corrective actions regard significant deficiencies material weaknesses date february 10 2003 stephen f page vice chairman chief financial officer report independent auditors financial statement schedule board directors united technologies corporation audits consolidated financial statements referred report dated january 16 2003 appearing 2002 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut january 16 2003 si united technologies corporation subsidiaries schedule ii valuation qualifying accounts three years ended december 31 2002 millions dollars allowances doubtful accounts customer financing activity future income tax benefits valuation allowance sii consent independent auditors hereby consent incorporation reference registration statement form s3 33360276 registration statement form s4 33377991 amended posteffective amendment 1 form s8 3337799101 registration statements form s8 nos 333100724 333100723 333100718 33321853 33318743 33321851 3357769 3311255 3326580 3326627 3351385 3358937 33377817 33382911 united technologies corporation report dated january 16 2003 relating financial statements appears 2002 annual report shareowners incorporated reference annual report form 10k also consent incorporation reference report dated january 16 2003 financial statement schedule appears page si form 10k pricewaterhousecoopers llp hartford connecticut february 10 2003 fiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated herein reference 2018 annual report 2 financial statement schedule three years ended december 31 2018 page number form 10k schedule ireport independent registered public accounting firm financial statement schedule si schedule iivaluation qualifying accounts sii schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1037 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports attached exhibit 101 report following formatted xbrl extensible business reporting language consolidated statement operations three years ended december 31 2018 ii consolidated statement comprehensive income three years ended december 31 2018 iii consolidated balance sheet december 31 2018 2017 iv consolidated statement cash flows three years ended december 31 2018 v consolidated statement changes equity three years ended december 31 2018 vi notes consolidated financial statements vii financial schedule valuation qualifying accounts signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant akhil johri akhil johri executive vice president chief financial officer robert j bailey robert j bailey corporate vice president controller date february 7 2019 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date gregory j hayes director chairman president chief executive officer principal executive officer february 7 2019 gregory j hayes akhil johri executive vice president chief financial officer principal financial officer february 7 2019 akhil johri robert j bailey corporate vice president controller principal accounting officer february 7 2019 robert j bailey lloyd j austin iii director lloyd j austin iii diane bryant director diane bryant john v faraci director john v faraci jeanpierre garnier director jeanpierre garnier christopher j kearney director christopher j kearney ellen j kullman director ellen j kullman marshall larsen director marshall larsen harold w mcgraw iii director harold w mcgraw iii margaret l osullivan director margaret l osullivan denise l ramos director denise l ramos fredric g reynolds director fredric g reynolds brian c rogers director brian c rogers christine todd whitman director christine todd whitman charles gill charles gill executive vice president general counsel attorneyinfact date february 7 2019 schedule report independent registered public accounting firm financial statement schedule shareowners board directors united technologies corporation audits consolidated financial statements referred report dated february 7 2019 appearing 2018 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 7 2019 si schedule ii united technologies corporation subsidiaries valuation qualifying accounts three years ended december 31 2018 millions dollars siinanitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated herein reference 2012 annual report 2 financial statement schedule three years ended december 31 2012 page number form 10k schedule ireport independent registered public accounting firm financial statement schedule si schedule iivaluation qualifying accounts sii schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1031 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports attached exhibit 101 report following formatted xbrl extensible business reporting language consolidated statement operations three years ended december 31 2012 ii consolidated statement comprehensive income three years ended december 31 2012 iii consolidated balance sheet december 31 2012 2011 iv consolidated statement cash flows three years ended december 31 2012 v consolidated statement changes equity three years ended december 31 2012 vi notes consolidated financial statements vii financial schedule valuation qualifying accounts accordance rule 406t regulation st xbrl related information exhibit 101 annual report form 10k shall deemed “filed” purposes section 18 exchange act otherwise subject liability section shall part registration statement document filed securities act exchange act except shall expressly set forth specific reference filing signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant gregory j hayes gregory j hayes senior vice president chief financial officer peter f longo peter f longo vice president controller date february 7 2013 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date louis r chênevert louis r chênevert director chairman chief executive officer principal executive officer february 7 2013 gregory j hayes gregory j hayes senior vice president chief financial officer principal financial officer february 7 2013 peter f longo peter f longo vice president controller principal accounting officer february 7 2013 john v faraci john v faraci director jeanpierre garnier jeanpierre garnier director jamie gorelick jamie gorelick director edward kangas edward kangas director ellen j kullman ellen j kullman director marshall larsen marshall larsen director richard mccormick richard mccormick director harold w mcgraw iii harold w mcgraw iii director signature title date richard b myers richard b myers director h patrick swygert h patrick swygert director andré villeneuve andré villeneuve director christine todd whitman christine todd whitman director charles gill charles gill senior vice president general counsel attorneyinfact date february 7 2013 schedule report independent registered public accounting firm financial statement schedule board directors united technologies corporation audits consolidated financial statements effectiveness internal control financial reporting referred report dated february 7 2013 appearing 2012 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 7 2013 si schedule ii united technologies corporation subsidiaries valuation qualifying accounts three years ended december 31 2012 millions dollars siiitem 15 exhibits financial statement schedules financial statements financial statement schedules exhibits 1 financial statements incorporated herein reference 2017 annual report 2 financial statement schedule three years ended december 31 2017 page number form 10k schedule ireport independent registered public accounting firm financial statement schedule si schedule iivaluation qualifying accounts sii schedules omitted applicable required information shown financial statements notes thereto 3 exhibits following list exhibits includes exhibits submitted form 10k filed sec incorporated reference filings notes exhibits list submitted electronically herewith exhibits 101 1023 contracts arrangements compensatory plans filed exhibits pursuant item 15b requirements form 10k reports attached exhibit 101 report following formatted xbrl extensible business reporting language consolidated statement operations three years ended december 31 2017 ii consolidated statement comprehensive income three years ended december 31 2017 iii consolidated balance sheet december 31 2017 2016 iv consolidated statement cash flows three years ended december 31 2017 v consolidated statement changes equity three years ended december 31 2017 vi notes consolidated financial statements vii financial schedule valuation qualifying accounts signatures pursuant requirements section 13 15d securities exchange act 1934 registrant duly caused report signed behalf undersigned thereunto duly authorized united technologies corporation registrant akhil johri akhil johri executive vice president chief financial officer robert j bailey robert j bailey corporate vice president controller date february 8 2018 pursuant requirements securities exchange act 1934 report signed following persons behalf registrant capacities dates indicated signature title date gregory j hayes director chairman president chief executive officer principal executive officer february 8 2018 gregory j hayes akhil johri executive vice president chief financial officer principal financial officer february 8 2018 akhil johri robert j bailey corporate vice president controller principal accounting officer february 8 2018 robert j bailey lloyd j austin iii director lloyd j austin iii diane bryant director diane bryant john v faraci director john v faraci jeanpierre garnier director jeanpierre garnier edward kangas director edward kangas ellen j kullman director ellen j kullman marshall larsen director marshall larsen harold w mcgraw iii director harold w mcgraw iii margaret l osullivan director margaret l osullivan fredric g reynolds director fredric g reynolds brian c rogers director brian c rogers christine todd whitman director christine todd whitman charles gill charles gill executive vice president general counsel attorneyinfact date february 8 2018 schedule report independent registered public accounting firm financial statement schedule shareowners board directors united technologies corporation audits consolidated financial statements referred report dated february 8 2018 appearing 2017 annual report shareowners united technologies corporation report consolidated financial statements incorporated reference annual report form 10k also included audit financial statement schedule listed item 15a2 form 10k opinion financial statement schedule presents fairly material respects information set forth therein read conjunction related consolidated financial statements pricewaterhousecoopers llp hartford connecticut february 8 2018 si schedule ii united technologies corporation subsidiaries valuation qualifying accounts three years ended december 31 2017 millions dollars sii