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Carrier Reports 2021 Results and Announces 2022 Outlook

February 8, 2022
Fourth Quarter 2021 Highlights
- Sales of $5.1 billion, up 12% compared to 2020 including 11% organic growth
- GAAP EPS of $0.36 and adjusted EPS of $0.44
- Net cash flow from operating activities of $913 million and free cash flow of $775 million
Full Year 2021 Highlights
- Sales growth of 18% and organic sales growth of 15%
- GAAP EPS of $1.87 and adjusted EPS of $2.26; adjusted EPS growth of 36%
- Net cash flow from operating activities of $2.2 billion and free cash flow of $1.9 billion or 114% of net income
Outlook for 2022
- Sales of about $20 billion with high single-digit organic sales* growth
- Adjusted operating margin* up ~75 bps
- Adjusted EPS* of $2.20 - $2.30, up double-digits adjusting for the Chubb divestiture
- Free cash flow* of ~$1.65 billion, which includes a ~$200 million tax payment related to the gain on the Chubb sale
- Outlook excludes recently announced Toshiba acquisition, expected to close before the end of Q3 2022

PALM BEACH GARDENS, Fla., Feb. 8, 2022 /PRNewswire/ -- Carrier Global Corporation (NYSE:CARR), the leading global provider of healthy, safe, sustainable and intelligent building and cold chain solutions, today reported strong financial results for the fourth quarter capping a full year 2021 that exceeded expectations.  The Company projects solid organic growth and adjusted operating margin expansion in 2022 and is well-positioned with a strong balance sheet with significant capital to deploy towards continued value creation.

"Our fourth quarter results, including double-digit sales and adjusted net income growth, as well as adjusted operating margin expansion, served as a great conclusion to a year marked by strong execution and innovation. I am very pleased with the strategic progress we made in 2021, including the launches of our global digital platforms for buildings and cold chain solutions, Abound and Lynx," said Carrier Chairman & CEO Dave Gitlin. "We will work to build on our strong momentum as we enter 2022 with record backlog levels. We are pleased with the divestiture of Chubb and the pending acquisition of Toshiba Carrier Corporation and we will work to proactively improve our portfolio. We anticipate another year of strong financial results, execution and innovation as we continue to address some of the world's most important challenges."

Fourth Quarter 2021 Results

Carrier's fourth quarter sales of $5.1 billion were up 12% compared to the prior year and organic sales were up 11% over the same period, reflecting continued order momentum. Sales remained strong in the HVAC segment with residential and light commercial performance driving the 14% organic growth.  Organic sales growth of 17% for the Refrigeration segment was due to strong Transport refrigeration growth.  Fire and Security sales were up 3% organically resulting from continued growth in commercial and industrial fire but were negatively impacted by supply chain constraints. 

GAAP operating profit in the quarter of $463 million decreased 63% from the fourth quarter of 2020 which included an $871 million gain on the sale of Beijer shares held as an investment. Adjusted operating profit of $517 million increased 14% on higher volume and price realization offset by increased supply chain costs.

Net income and adjusted net income were $324 million and $389 million, respectively. GAAP EPS of $0.36 and adjusted EPS of $0.44 benefitted from a lower adjusted effective tax rate, resulting in a ~$0.06 benefit relative to October guidance and ~$0.07 on a year-over-year basis. Net cash flows provided by operating activities were $913 million and capital expenditures were $138 million, resulting in free cash flow of $775 million.

Full-Year 2021 Results

Carrier's 2021 sales of $20.6 billion increased 18% compared to the prior year and 15% organically, reflecting strong demand across the businesses – primarily HVAC and Transport Refrigeration – and the results of execution on strategic initiatives. GAAP operating profit of $2.6 billion decreased 14% and adjusted operating profit increased 26% to $2.8 billion.  Adjusted operating profit growth was strong despite the unprecedented supply chain environment. Productivity savings and strategic price increases partly offset the supply chain environment and incremental investments. GAAP operating profit comparisons were also negatively impacted by the 2020 gain on the sale of the Beijer shares.

GAAP EPS was $1.87 and adjusted EPS was $2.26.  Net income was $1.7 billion, and adjusted net income was $2.0 billion.  Net cash flows provided by operating activities were $2.2 billion and capital expenditures were $344 million, resulting in free cash flow of $1.9 billion. 2021 capital deployment included over $360 million in acquisitions, $417 million in dividend payments, the repurchase of $527 million worth of common stock and the repayment of $500 million of long-term debt. 

Full-Year 2022 Guidance

Carrier is announcing the following outlook for 2022 excluding the pending Toshiba acquisition:


2022 Guidance**

(excluding impact of TCC
acquisition)

Sales

~$20B

Organic* up HSD

FX ~(1%)

Acquisitions ~1%

 Divestitures ~(10%)

Adjusted Operating Margin*

 

Up ~75 bps Y/Y

 

Adjusted EPS*

$2.20 - $2.30

Free Cash Flow*

~$1.65B

Includes ~$200M in tax payments on
Chubb gain
 


*Note: When the company provides expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See "Use and Definitions of Non-GAAP Financial Measures" below for additional information.


**As of February 8, 2022

Conference Call

Carrier will host a webcast of its earnings conference call today, Tuesday, February 8, 2022, at 8:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at ir.carrier.com/news-and-events/events-and-presentations or to listen to the earnings call by phone, dial (877) 742-9091.   

About Carrier
As the leading global provider of healthy, safe, sustainable and intelligent building and cold chain solutions, Carrier Global Corporation is committed to making the world safer, sustainable and more comfortable for generations to come. From the beginning, we've led in inventing new technologies and entirely new industries. Today, we continue to lead because we have a world-class, diverse workforce that puts the customer at the center of everything we do.  For more information, visit www.corporate.carrier.com or follow Carrier on social media at @Carrier.

Cautionary Statement
This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. These forward-looking statements are intended to provide management's current expectations or plans for Carrier's future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance or the separation from United Technologies Corporation (the "Separation"), since renamed Raytheon Technologies Corporation. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, the estimated costs associated with the Separation, Carrier's plans with respect to its indebtedness and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see Carrier's reports on Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission from time to time. Any forward-looking statement speaks only as of the date on which it is made, and Carrier assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

CARR-IR

 

Contact: 

Media Inquiries


Danielle Canzanella


561-365-1101


Danielle.Canzanella@Carrier.com




Investor Relations


Sam Pearlstein


561-365-2251       


Sam.Pearlstein@Carrier.com 

 

SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS

Following are tables that present selected financial data of Carrier Global Corporation ("Carrier"). Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures.

Use and Definitions of Non-GAAP Financial Measures

Carrier reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP").

We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables attached to this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

Organic sales, adjusted operating profit, adjusted operating margin, incremental margins / earnings conversion, earnings before interest, taxes and depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted net income, adjusted earnings per share ("EPS"), the adjusted effective tax rate, and net debt are non-GAAP financial measures.

Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a nonoperational nature (hereinafter referred to as "other significant items"). Adjusted operating profit represents operating profit (a GAAP measure), excluding restructuring costs and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of net sales (a GAAP measure). Incremental margins / earnings conversion represents the year-over-year change in adjusted operating profit divided by the year-over-year change in net sales. EBITDA represents net income attributable to common shareholders (a GAAP measure), adjusted for interest income and expense, income tax expense, and depreciation and amortization. Adjusted EBITDA represents EBITDA, as calculated above, excluding non-service pension benefit, non-controlling interest in subsidiaries' earnings from operations, restructuring costs and other significant items. Adjusted net income represents net income attributable to common shareowners (a GAAP measure), excluding restructuring costs and other significant items. Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents. For the business segments, when applicable, adjustments of operating profit and operating margins represent operating profit, excluding restructuring and other significant items.

Free cash flow is a non-GAAP financial measure that represents net cash flows provided by operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Carrier's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of Carrier's common stock and distribution of earnings to shareowners.

When we provide our expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted effective tax rate, incremental margins/earnings conversion, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected net sales, operating profit, operating margin, effective tax rate, incremental operating margin, diluted EPS and net cash flows provided by operating activities) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

 

Carrier Global Corporation

Consolidated Statement of Operations



(Unaudited)


For the Three Months Ended
December 31,


For the Year Ended
December 31,

(In millions, except per share amounts)

2021


2020


2021


2020

Net sales








Product sales

$             4,256


$             3,732


$          17,214


$          14,347

Service sales

877


862


3,399


3,109

Total Net sales

5,133


4,594


20,613


17,456

Costs and expenses








Cost of products sold

(3,169)


(2,721)


(12,300)


(10,185)

Cost of services sold

(598)


(588)


(2,333)


(2,162)

Research and development

(134)


(127)


(503)


(419)

Selling, general and administrative

(816)


(810)


(3,120)


(2,820)

Total Costs and expenses

(4,717)


(4,246)


(18,256)


(15,586)

Equity method investment net earnings

48


59


249


207

Other income (expense), net

(1)


838


39


1,006

Operating profit

463


1,245


2,645


3,083

Non-service pension benefit

10


13


61


60

Interest (expense) income, net

(68)


(82)


(306)


(288)

Income from operations before income taxes

405


1,176


2,400


2,855

Income tax expense

(73)


(289)


(699)


(849)

Net income from operations

332


887


1,701


2,006

Less: Non-controlling interest in subsidiaries' earnings from operations

8


3


37


24

Net income attributable to common shareowners

$                324


$                884


$            1,664


$            1,982









Earnings per share (1), (2)








Basic

$               0.38


$               1.02


$              1.92


$              2.29

Diluted

$               0.36


$               1.00


$              1.87


$              2.25

Weighted-average number of shares outstanding (2)








Basic

865.2


867.4


867.7


866.5

Diluted

888.5


888.4


890.3


880.2









(1) On April 3, 2020, United Technologies Corporation, since renamed Raytheon Technologies Corporation ("UTC"), completed the spin-off of Carrier into a separate publicly traded company (the "Separation"). The Separation was completed through a pro-rata distribution (the "Distribution") of all of the outstanding common stock of the Company to UTC shareowners who held shares of UTC common stock as of the close of business on March 19, 2020.


(2) Basic and diluted earnings per share for the twelve months ended December 31, 2020 are calculated using the weighted-average number of common shares outstanding for the period beginning after the Distribution date. Diluted earnings per share is computed by giving effect to all potentially dilutive stock awards that are outstanding. For periods prior to the Separation it was assumed that there were no dilutive equity instruments as there were no equity awards in Carrier common stock outstanding prior to the Separation.

 

Carrier Global Corporation

Consolidated Balance Sheet



(Unaudited)


As of December 31,

(In millions)

2021


2020

Assets




Cash and cash equivalents

$        2,987


$            3,115

Accounts receivable, net

2,403


2,781

Contract assets, current

503


656

Inventories, net

1,970


1,629

Assets held for sale

3,168


Other assets, current

376


343

Total current assets

11,407


8,524





Future income tax benefits

563


449

Fixed assets, net

1,826


1,810

Operating lease right-of-use assets

640


788

Intangible assets, net

509


1,037

Goodwill

9,349


10,139

Pension and post-retirement assets

43


554

Equity method investments

1,593


1,513

Other assets

242


279

Total Assets

$      26,172


$          25,093





Liabilities and Equity




Accounts payable

$        2,334


$            1,936

Accrued liabilities

2,561


2,471

Contract liabilities, current

415


512

Liabilities held for sale

1,134


Current portion of long-term debt

183


191

Total current liabilities

6,627


5,110

Long-term debt

9,513


10,036

Future pension and post-retirement obligations

380


524

Future income tax obligations

354


479

Operating lease liabilities

527


642

Other long-term liabilities

1,677


1,724

Total Liabilities

19,078


18,515





Equity




Common stock, par value $0.01; 4,000,000,000 shares authorized; 873,064,219 and 867,829,119 shares issued; 863,039,097 and 867,829,119 outstanding as of December 31, 2021 and 2020, respectively

9


9

Treasury stock

(529)


Additional paid-in capital

5,411


5,345

Retained earnings

2,865


1,643

Accumulated other comprehensive loss

(989)


(745)

Non-controlling interest

327


326

Total Equity

7,094


6,578

Total Liabilities and Equity

$      26,172


$          25,093

 

Carrier Global Corporation

Consolidated Statement of Cash Flows (Unaudited)



For the Year Ended
December 31,

(In millions)

2021


2020

Operating Activities




Net income from operations

$              1,701


$              2,006

Adjustments to reconcile net income from operations to net cash flows from operating activities




Depreciation and amortization

338


336

Deferred income tax provision

(74)


97

Stock-based compensation cost

92


77

Equity method investment net earnings

(249)


(207)

Impairment charge on minority-owned joint venture investments

2


72

(Gain) loss on sale of investments and businesses

2


(1,123)

Changes in operating assets and liabilities




Accounts receivable, net

(97)


49

Contract assets, current

(47)


(9)

Inventories, net

(408)


(240)

Other assets, current

(11)


3

Accounts payable and accrued liabilities

829


237

Contract liabilities, current

51


46

Defined benefit plan contributions

(47)


(41)

Distributions from equity method investments

159


169

Other operating activities, net

(4)


220

Net cash flows provided by (used in) operating activities

2,237


1,692

Investing Activities




Capital expenditures

(344)


(312)

Investment in businesses, net of cash acquired

(366)


Proceeds on sale of investments

7


1,377

Settlement of derivative contracts, net

4


40

Other investing activities, net

7


1

Net cash flows provided by (used in) investing activities

(692)


1,106

Financing Activities




(Decrease) increase in short-term borrowings, net

13


(23)

Issuance of long-term debt

140


11,784

Repayment of long-term debt

(704)


(1,911)

Repurchases of common stock

(527)


Dividends paid on common stock

(417)


(138)

Dividends paid to non-controlling interest

(42)


(48)

Net transfers to UTC


(10,359)

Other financing activities, net

(25)


14

Net cash flows provided by (used in) financing activities

(1,562)


(681)

Effect of foreign exchange rate changes on cash and cash equivalents

(16)


45

Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale

(33)


2,162

Less: Change in cash balances classified as assets held for sale

60


Net increase (decrease) in cash and cash equivalents and restricted cash

(93)


2,162

Cash, cash equivalents and restricted cash, beginning of period

3,119


957

Cash, cash equivalents and restricted cash, end of period

3,026


3,119

Less: restricted cash

39


4

Cash and cash equivalents, end of period

$              2,987


$              3,115

 

Carrier Global Corporation

Segment Net Sales and Operating Profit



(Unaudited)


For the Three Months Ended December 31,


For the Year Ended December 31,


2021


2020


2021


2020

(In millions)

Reported


Adjusted


Reported


Adjusted


Reported


Adjusted


Reported


Adjusted

Net sales
















HVAC

$    2,730


$    2,730


$    2,336


$    2,336


$  11,390


$  11,390


$    9,478


$    9,478

Refrigeration

1,090


1,090


949


949


4,127


4,127


3,333


3,333

Fire & Security

1,431


1,431


1,398


1,398


5,515


5,515


4,985


4,985

Segment sales

5,251


5,251


4,683


4,683


21,032


21,032


17,796


17,796

Eliminations and other

(118)


(118)


(89)


(89)


(419)


(419)


(340)


(340)

Net sales

$    5,133


$    5,133


$    4,594


$    4,594


$  20,613


$  20,613


$  17,456


$  17,456

















Operating profit
















HVAC

$       227


$    242


$    1,098


$       231


$    1,738


$    1,776


$    2,462


$    1,430

Refrigeration

107


125


94


110


476


501


357


375

Fire & Security

182


199


158


186


662


730


584


628

Segment operating profit

516


566


1,350


527


2,876


3,007


3,403


2,433

Eliminations and other

(23)


(23)


(62)


(33)


(96)


(79)


(184)


(73)

General corporate expenses

(30)


(26)


(43)


(41)


(135)


(124)


(136)


(128)

Operating profit

$       463


$    517


$    1,245


$       453


$    2,645


$    2,804


$    3,083


$    2,232

















Operating  margin















HVAC

8.3%


8.9%


47.0%


9.9%


15.3%


15.6%


26.0%


15.1%

Refrigeration

9.8%


11.5%


9.9%


11.6%


11.5%


12.1%


10.7%


11.3%

Fire & Security

12.7%


13.9%


11.3%


13.3%


12.0%


13.2%


11.7%


12.6%

Total Carrier

9.0%


10.1%


27.1%


9.9%


12.8%


13.6%


17.7%


12.8%

 

Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP)

Operating Profit




(Unaudited)



For the Three Months Ended


For the Year Ended


December 31,


December 31,

(In millions - Income (Expense))

2021


2020


2021


2020

HVAC






Net sales

$          2,730


$          2,336


$        11,390


$          9,478











Operating profit

$             227


$          1,098


$          1,738


$          2,462


Restructuring

(15)


(4)


(33)


(7)


Impairment of joint venture investment




(71)


Gain on sale of joint venture


871



1,123


Charge resulting from litigation matter




(11)


Separation costs




(2)


Acquisition and other related costs



(5)



Adjusted operating profit

$             242


$             231


$          1,776


$          1,430










Refrigeration









Net sales

$          1,090


$             949


$          4,127


$          3,333











Operating profit

$             107


$               94


$             476


$             357


Restructuring

(18)


(10)


(25)


(12)


Separation costs


(6)



(6)


Adjusted operating profit

$             125


$             110


$             501


$             375










Fire & Security









Net sales

$          1,431


$          1,398


$          5,515


$          4,985











Operating profit

$             182


$             158


$             662


$             584


Restructuring

(3)


(15)


(26)


(28)


Separation costs


(13)



(16)


Chubb transaction costs

(14)



(42)



Adjusted operating profit

$             199


$             186


$             730


$             628










General Corporate Expenses and Eliminations and Other









Net sales

$           (118)


$             (89)


$           (419)


$           (340)











Operating profit

$             (53)


$           (105)


$           (231)


$           (320)


Restructuring

(1)


(1)


(5)


(2)


Separation costs

(1)


(30)


(20)


(117)


Chubb transaction costs



(1)



Other

(2)



(2)



Adjusted operating profit

$             (49)


$             (74)


$           (203)


$           (201)










Carrier









Net sales

$          5,133


$          4,594


$        20,613


$        17,456











Operating profit

$             463


$           1,245


$          2,645


$           3,083


Total restructuring costs

(37)


(30)


(89)


(49)


Total non-recurring and non-operational items

(17)


822


(70)


900


Adjusted operating profit

$             517


$             453


$          2,804


$          2,232

 

Carrier Global Corporation 

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results

Net Income, Earnings Per Share, and Effective Tax Rate



(Unaudited)


For the Three Months Ended December 31, 2021


For the Year Ended December 31, 2021

(In millions, except per share amounts)

Reported


Adjustments


Adjusted


Reported


Adjustments


Adjusted

Net sales

$         5,133


$                 —


$         5,133


$   20,613


$                —


$    20,613













Operating profit

$            463


54

a

$            517


$     2,645


159

a

$      2,804

Operating margin

9.0%




10.1%


12.8%




13.6%













Income from operations before income taxes

$            405


54

a,b

$            459


$     2,400


178

a,b

$      2,578

Income tax expense

$             (73)


11

c

$             (62)


$       (699)


171

c

$       (528)

Income tax rate

18.0%




13.5%


29.1%




20.5%













Net income attributable to common shareowners

$            324


$                 65


$            389


$     1,664


$              349


$      2,013













Summary of Adjustments:












Restructuring costs



$                 37

a





$                89

a


Separation costs



1

a





20

a


Acquisition and other related costs



2

a





7

a


Chubb transaction costs



14

a





43

a


Debt prepayment costs



b





19

b


Total adjustments



$                 54






$              178















Tax effect on adjustments above



$               (10)






$               (29)



Tax specific adjustments



21






200



Total tax adjustments



$                 11

c





$              171

c














Shares outstanding - Diluted

888.5




888.5


890.3




890.3













Earnings per share - Diluted

$           0.36




$           0.44


$       1.87




$        2.26

 

Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results

Net Income, Earnings Per Share, and Effective Tax Rate



(Unaudited)


For the Three Months Ended December 31, 2020


For the Year Ended December 31, 2020

(In millions, except per share amounts)

Reported


Adjustments


Adjusted


Reported


Adjustments


Adjusted

Net sales

$       4,594


$                   —


$         4,594


$    17,456


$                —


$  17,456













Operating profit

$       1,245


(792)

a

$            453


$      3,083


(851)

a

$    2,232

Operating margin

27.1%




9.9%


17.7%




12.8%













Income from operations before income taxes

$       1,176


(792)

a,b

$            384


$      2,855


(846)

a,b

$    2,009

Income tax expense

$         (289)


188

c

$          (101)


$       (849)


326

c

$      (523)

Income tax rate

24.5%




26.3%


29.7%




26.0%













Net income attributable to common shareowners

$          884


$                (604)


$            280


$      1,982


$             (520)


$    1,462













Summary of Adjustments:












Restructuring costs



$                   30

a





$                49

a


Gain on sale of joint venture



(871)

a





(1,123)

a


Impairment of equity method investment



a





71

a


Charge resulting from litigation matter



a





11

a


Separation costs



49

a





141

a


Debt issuance costs



b





5

b


Total adjustments



$                (792)






$             (846)















Tax effect on adjustments above



$                 188






$              217



Tax specific adjustments








109



Total tax adjustments



$                 188

c





$              326

c














Shares outstanding - Diluted

888.4




888.4


880.2




880.2













Earnings per share - Diluted

$         1.00




$           0.31


$        2.25




$      1.66













 

Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results


Components of Changes in Net Sales


Three Months Ended December 31, 2021 Compared with Three Months Ended December 31, 2020



(Unaudited)


Factors Contributing to Total % change in Net Sales


Organic


FX
Translation


Acquisitions /
Divestitures, net


Other


Total

HVAC

14%


—%


3%


—%


17%

Refrigeration

17%


(2)%


—%


—%


15%

Fire & Security

3%


(1)%


—%


—%


2%

Consolidated

11%


(1)%


2%


—%


12%


Year Ended December 31, 2021 Compared with Year Ended December 31, 2020



(Unaudited)


Factors Contributing to Total % change in Net Sales


Organic


FX
Translation


Acquisitions /
Divestitures, net


Other


Total

HVAC

17%


1%


2%


—%


20%

Refrigeration

21%


3%


—%


—%


24%

Fire & Security

7%


4%


—%


—%


11%

Consolidated

15%


2%


1%


—%


18%

 

Free Cash Flow Reconciliation




(Unaudited)




Q1


Q2


Q3


Q4


FY


Q1


Q2


Q3


Q4


FY

(In millions)


2020


2020


2020


2020


2020


2021


2021


2021


2021


2021

Net cash flows provided by operating activities


$      47


$    509


$    937


$    199


$ 1,692


$    184


$    561


$    579


$    913


$ 2,237

Less: Capital expenditures


48


46


57


161


312


53


79


74


138


344

Free cash flow


$       (1)


$    463


$    880


$      38


$ 1,380


$    131


$    482


$    505


$    775


$ 1,893

 

Net Debt Reconciliation




(Unaudited)



As of December 31,

(In millions)


2021


2020 (1)

Long-term debt


$                      9,513


$                    10,036

Current portion of long-term debt


183


191

Less: Cash and cash equivalents


2,987


3,115

Net debt


$                      6,709


$                      7,112


(1) On April 1 and April 2, 2020, Carrier received cash contributions totaling $590 million from UTC related to the Separation, resulting in net debt of approximately $9.9 billion as of April 3, 2020.

 

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SOURCE Carrier Global Corporation