Washington, D.C. 20549


Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2020 (July 30, 2020)

(Exact name of registrant as specified in its charter)

(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)

13995 Pasteur Boulevard
Palm Beach Gardens
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock ($0.01 par value)CARRNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Section 2—Financial Information
Item 2.02. Results of Operations and Financial Condition.
On July 30, 2020, Carrier Global Corporation (“Carrier” or the “Company”) issued a press release announcing its second quarter 2020 results.
The press release issued July 30, 2020 is furnished herewith as Exhibit No. 99 to this Report, and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Section 9—Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Description
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 30, 2020
Timothy R. McLevish
Senior Vice President and Chief Financial Officer


Exhibit 99

Carrier Reports Second Quarter 2020 Results

Provides updated 2020 full-year outlook, raises low end of prior ranges
Second quarter sales of $4.0 billion
GAAP EPS of $0.30 and adjusted EPS of $0.33
Strong performance enables partially restoring strategic investments and capital spending in second-half of 2020

PALM BEACH GARDENS, Fla., July 30, 2020 – Carrier Global Corporation (NYSE:CARR) today reported financial results for the second quarter of 2020. Carrier is a leading global provider of innovative heating, ventilating and air conditioning (HVAC), refrigeration, fire, security and building automation technologies.
“Our second quarter results exceeded our expectations, and our team continued to perform well in a very challenging environment,” said Carrier President & CEO Dave Gitlin. “Importantly, we remain focused on executing our strategic priorities. The COVID pandemic has underscored the critical role of buildings in public health, so we moved quickly to roll out our Healthy Buildings Program, which provides advanced solutions to help deliver healthier, safer, and more efficient indoor environments.”
Gitlin added, “We were pleased with our order strength in June, particularly in North America. Although the global economic environment remains uncertain, we continue to focus on our strategic growth initiatives of growing our core business, increasing product extensions and geographic coverage, and building our services and digital business.”
Second Quarter Results
Carrier’s second quarter sales of $4.0 billion were down 20% compared to last year and down 19% organically. The decline was largely driven by the impact from the COVID-19 pandemic across all businesses. Carrier saw demand improve as the second quarter progressed and economic activity resumed.
GAAP operating profit in the quarter of $442 million was down 45%, and adjusted operating profit of $476 million was down 42%. These results benefited by Carrier’s aggressive cost containment and the acceleration of Carrier 600. GAAP EPS was $0.30 and adjusted EPS was $0.33 after excluding net nonrecurring and restructuring charges. Net income in the quarter was $261 million and included $25 million of net nonrecurring and restructuring charges. Net cash flows provided by operating activities were $509 million and capital expenditures were $46 million, resulting in free cash flow of $463 million, representing 177% of net income.


Updated Full-Year 2020 Outlook*
On May 8, 2020, Carrier provided ranges for the most reasonable scenarios for full-year 2020 performance given the economic uncertainty associated with COVID-19. With the first half completed, Carrier has revised the low-end of its prior 2020 outlook and now anticipates a full-year outlook that reflects partially restoring strategic investments and capital spending in the second-half of 2020:
Sales of $15.5 to $17.0 billion, up from $15.0 to $17.0 billion
Adjusted operating profit of $1.8 to $2.0 billion, up from $1.7 to $2.0 billion
Free cash flow of at least $1.1 billion, up from at least $1.0 billion
*Note: When we provide expectations for adjusted operating profit 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.

Conference Call
Carrier will host a live webcast of its earnings conference call today, Thursday, July 30, 2020, at 9:00 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at or to listen to the earnings call by phone, dial (877) 742-9091.

About Carrier
Carrier Global Corporation is a leading global provider of healthy, safe and sustainable building and cold chain solutions. Since our founding, we’ve led in creating solutions that matter for people and our planet. Today, our portfolio includes industry-leading brands such as Carrier, Kidde, Edwards, LenelS2 and Automated Logic that offer innovative HVAC, refrigeration, fire, security and building automation technologies to help make the world safer and more comfortable for generations to come. For more information, visit or follow Carrier on social media at @Carrier.


Use and Definitions of Non-GAAP Financial Measures
Carrier Global Corporation (“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.

Organic sales, adjusted operating profit, adjusted net income, adjusted earnings per share (“EPS”), and the adjusted effective tax rate 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 non-recurring and/or 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 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. For the business segments, when applicable, adjustments of operating profit and margins represent operating profit, excluding restructuring and other significant items.

GAAP financial results include the impact of changes in foreign currency exchange rates (AFX). We use the non-GAAP measure “at constant currency” or “CFX” to show changes in our financial results without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, income statement results are translated in U.S. dollars at the average exchange rate for the period presented. Management believes that the non-GAAP measures just mentioned are useful in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.

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 shareholders.

A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

When we provide our expectations for adjusted EPS, adjusted operating profit, adjusted effective tax rate, organic sales 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 diluted EPS, operating profit, the effective tax rate, sales and expected 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, 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.


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. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management’s current expectations or plans for our 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 (the “Separation”). 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, including the estimated costs associated with the Separation 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 those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which Carrier and its businesses operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction, the impact of weather conditions, pandemic health issues (including COVID-19 and its effects, among other things, on production and on global supply, demand, and distribution disruptions as the outbreak continues and results in an increasingly prolonged period of travel, commercial and/or other similar restrictions and limitations), natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) future levels of indebtedness, including indebtedness incurred in connection with the Separation, capital spending and research and development spending; (4) future availability of credit and factors that may affect such availability, including credit market conditions and Carrier’s capital structure and credit ratings; (5) the timing and scope of future repurchases of Carrier’s common stock, including market conditions and the level of other investing activities and uses of cash; (6) delays and disruption in the delivery of materials and services from suppliers; (7) cost reduction efforts and restructuring costs and savings and other consequences thereof; (8) new business and investment opportunities; (9) risks resulting from less diversification and balance of operations across product lines, regions and industries due to the Separation; (10) the outcome of legal proceedings, investigations and other contingencies; (11) the impact of pension plan assumptions and on future cash contributions and earnings; (12) the impact of the negotiation of collective bargaining agreements and labor disputes; (13) the effect of changes in political conditions in the U.S. and other countries in which Carrier and its businesses operate, including the effect of changes in U.S. trade policies or the United Kingdom’s withdrawal from the European Union, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (14) the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which we and our businesses operate; (15) the ability of Carrier to retain and hire key personnel; (16) the scope, nature, impact or timing of acquisition and divestiture activity, including among other things integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; (17) the expected benefits of the Separation; (18) a determination by the IRS and other tax authorities that the Distribution or certain related transactions should be treated as taxable transactions; (19) risks associated with indebtedness, including that incurred as a result of financing transactions undertaken in connection with the Separation; (20) the risk that dis-synergy costs, costs of restructuring transactions and other costs incurred in connection with the Separation will exceed Carrier’s estimates; and (21) the impact of the Separation on Carrier’s business and Carrier’s resources, systems, procedures and controls, diversion of management’s attention and the impact on relationships with customers, suppliers, employees and other business counterparties.

The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see Carrier’s registration statement on Form 10 and the reports of Carrier on Forms, 10-Q and 8-K filed with or furnished to the SEC 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.

Contact:    Media Inquiries
Danielle Canzanella

 Investor Relations
 Sam Pearlstein


Carrier Global Corporation
Condensed Consolidated Statement of Operations
For the Three Months Ended June 30,For the Six Months Ended June 30,
(dollars in millions, except per share amounts; shares in millions)2020201920202019
Net sales:
Product sales$3,275  $4,139  $6,422  $7,705  
Service sales697  823  1,438  1,580  
3,972  4,962  7,860  9,285  
Costs and expenses
Cost of products sold2,343  2,906  4,580  5,471  
Cost of services sold488  582  1,017  1,114  
Research and development94  103  192  200  
Selling, general and administrative637  680  1,329  1,364  
3,562  4,271  7,118  8,149  
Equity method investment net earnings57  80  86  120  
Other (expense) income, net(25) 34  (71) 49  
Operating profit442  805  757  1,305  
Non-service pension benefit14  38  31  77  
Interest (expense) income, net(81) 16  (118) 20  
Income from operations before income taxes375  859  670  1,402  
Income tax expense106  65  299  205  
Net income from operations269  794  371  1,197  
Less: Non-controlling interest in subsidiaries' earnings from operations 10  14  13  
Income from operations attributable to common shareowners$261  $784  $357  $1,184  
Earnings per share 1, 2
Basic$0.30  $0.91  $0.41  $1.37  
Diluted$0.30  $0.91  $0.41  $1.37  
Weighted average number of shares outstanding 2
1 On April 3, 2020, United Technologies Corporation, since renamed Raytheon Technologies Corporation ("UTC") completed the spin off of Carrier, one of UTC's reportable segments, 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, the record date for the Distribution. Earnings per share for periods presented prior to the Separation were calculated using the number of shares that were distributed to UTC shareowners immediately following the Separation. 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.

2 Basic and diluted earnings per share for the three and six months ended June 30, 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.


Carrier Global Corporation
Segment Net Sales and Operating Profit
For the Three Months Ended June 30,For the Six Months Ended June 30,
(dollars in millions)ReportedAdjustedReportedAdjustedReportedAdjustedReportedAdjusted
Net sales
HVAC$2,291  $2,291  $2,735  $2,735  $4,250  $4,250  $4,903  $4,903  
Refrigeration700  700  955  955  1,508  1,508  1,917  1,917  
Fire & Security1,057  1,057  1,386  1,386  2,263  2,263  2,676  2,676  
Segment sales4,048  4,048  5,076  5,076  8,021  8,021  9,496  9,496  
Eliminations and other(76) (76) (114) (114) (161) (161) (211) (211) 
Net sales$3,972  $3,972  $4,962  $4,962  $7,860  $7,860  $9,285  $9,285  
Operating profit
HVAC$358  $359  $545  $542  $525  $601  $838  839  
Refrigeration61  64  121  125  160  163  248  255  
Fire & Security106  112  184  192  226  238  316  337  
Segment operating profit525  535  850  859  911  1,002  1,402  1,431  
Eliminations and other(56) (36) (15) (15) (91) (31) (32) (32) 
General corporate expenses(27) (23) (30) (30) (63) (59) (65) (65) 
Operating profit$442  $476  $805  $814  $757  $912  $1,305  $1,334  
Segment operating profit margin
HVAC15.6 %15.7 %19.9 %19.8 %12.4 %14.1 %17.1 %17.1 %
Refrigeration8.7 %9.1 %12.7 %13.1 %10.6 %10.8 %12.9 %13.3 %
Fire & Security10.0 %10.6 %13.3 %13.9 %10.0 %10.5 %11.8 %12.6 %
Segment operating profit margin13.0 %13.2 %16.7 %16.9 %11.4 %12.5 %14.8 %15.1 %


Carrier Global Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP)
Operating Profit & Operating Profit Margin
For the Three Months EndedFor the Six Months Ended
June 30,June 30,
(dollars in millions - Income (Expense))2020201920202019
Net sales$2,291  $2,735  $4,250  $4,903  
Operating profit$358  $545  $525  $838  
Restructuring(1) (18) (3) (35) 
Impairment charge on minority owned joint venture investment—  —  (71) —  
Gain on sale of interest in joint venture—  21  —  34  
Separation costs—  —  (2) —  
Adjusted operating profit$359  $542  $601  $839  
Adjusted operating profit margin15.7 %19.8 %14.1 %17.1 %
Net sales$700  $955  $1,508  $1,917  
Operating profit$61  $121  $160  $248  
Restructuring(3) (4) (3) (7) 
Adjusted operating profit$64  $125  $163  $255  
Adjusted operating profit margin9.1 %13.1 %10.8 %13.3 %
Fire & Security
Net sales$1,057  $1,386  $2,263  $2,676  
Operating profit$106  $184  $226  $316  
Restructuring(6) (8) (9) (21) 
Separation costs—  —  (3) —  
Adjusted operating profit$112  $192  $238  $337  
Adjusted operating profit margin10.6 %13.9 %10.5 %12.6 %
General Corporate Expenses and Eliminations and Other
Net sales$(76) $(114) $(161) $(211) 
Operating profit$(83) $(45) $(154) $(97) 
Restructuring(1) —  (1) —  
Separation costs(23) —  (63) —  
Adjusted operating profit$(59) $(45) $(90) $(97) 
Net sales$3,972  $4,962  $7,860  $9,285  
Operating profit$442  $805  $757  $1,305  
Total restructuring costs(11) (30) (16) (63) 
Total non-recurring and non-operational items(23) 21  (139) 34  
Adjusted operating profit$476  $814  $912  $1,334  


Carrier Global Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results
Net Income, Earnings Per Share, and Effective Tax Rate
For the Three Months Ended June 30,For the Six Months Ended June 30,
(dollars in millions - Income (Expense))2020201920202019
Net income attributable to common shareowners$261  $784  $357  $1,184  
Total restructuring costs(11) (30) (16) (63) 
Total non-recurring and non-operational items included in operating profit(23) 21  (139) 34  
Non-recurring and non-operational items included in Interest expense, net:
Interest income associated with participation in amnesty settlement—   —   
Interest income associated with IRS settlement—   —   
Debt issuance costs relating to Carrier's separation from United Technologies—  —  (5) —  
Non-recurring and non-operational items included in Interest expense, net—  16  (5) 16  
Tax effect of restructuring and non-recurring and non-operational items   22   
Significant non-recurring and non-operational items included in Income tax expense:
Favorable income tax adjustments related to tax amnesty—  95  —  95  
Adjustments related to tax settlements—  54  —  54  
Adjustment related to a valuation allowance recorded against a United Kingdom tax loss and credit carryforward as a result of separation related activities—  —  (51) —  
Adjustment resulting from Carrier's decision to no longer permanently reinvest certain pre-2018 unremitted non-U.S. earnings
—  —  (46) —  
Significant non-recurring and non-operational items included in Income tax expense—  149  (97) 149  
Total Non-recurring and non-operational items - Non-controlling interest—  —  —  —  
Total significant non-recurring and non-operational items(25) 159  (235) 145  
Adjusted net income attributable to common shareowners$286  $625  $592  $1,039  
Diluted earnings per share$0.30  $0.91  $0.41  $1.37  
Impact on diluted earnings per share(0.03) 0.18  (0.27) 0.16  
Adjusted diluted earnings per share$0.33  $0.73  $0.68  $1.21  
Effective tax rate28.2 %7.6 %44.6 %14.6 %
Impact on effective tax rate(0.2)%17.9 %(17.6)%11.1 %
Adjusted effective tax rate28.0 %25.5 %27.0 %25.7 %


Carrier Global Corporation
Components of Changes in Net Sales

Three Months Ended June 30, 2020 Compared with Three Months Ended June 30, 2019

Factors Contributing to Total % change in Net Sales
OrganicFX TranslationAcquisitions / Divestitures, netOtherTotal
HVAC (15)%(1)%— %— %(16)%
Refrigeration(25)%(2)%— %— %(27)%
Fire & Security(22)%(2)%— %— %(24)%
Consolidated(19)%(1)%— %— %(20)%

Six Months Ended June 30, 2020 Compared with Six Months Ended June 30, 2020

Factors Contributing to Total % change in Net Sales
OrganicFX TranslationAcquisitions / Divestitures, netOtherTotal
HVAC (13)%— %— %— %(13)%
Refrigeration(19)%(2)%— %— %(21)%
Fire & Security(14)%(1)%— %— %(15)%
Consolidated(14)%(1)%— %— %(15)%


Carrier Global Corporation
Condensed Consolidated Balance Sheet
(dollars in millions)June 30, 2020December 31, 2019
Cash and cash equivalents$2,704  $952  
Accounts receivable, net2,665  2,726  
Contract assets, current761  622  
Inventories, net1,639  1,332  
Other assets, current284  327  
Total current assets8,053  5,959  
Future income tax benefits419  500  
Fixed assets, net1,651  1,663  
Operating lease right-of-use assets843  832  
Intangible assets, net1,024  1,083  
Goodwill9,735  9,884  
Pension and post-retirement assets521  490  
Equity method investments1,697  1,739  
Other assets233  256  
Total Assets$24,176  $22,406  
Liabilities and Equity
Accounts payable$1,765  $1,701  
Accrued liabilities2,246  2,088  
Contract liabilities, current477  443  
Current portion of long-term debt301  237  
Total current liabilities4,789  4,469  
Long-term debt11,728  82  
Future pension and post-retirement obligations462  456  
Future income tax obligations445  1,099  
Operating lease liabilities688  682  
Other long-term liabilities1,698  1,183  
Total Liabilities19,810  7,971  
UTC Net investment—  15,355  
Common stock, par value $0.01; 4,000,000,000 shares authorized; 866,164,968 shares issued and outstanding as of June 30, 2020  —  
Additional paid-in capital5,307  —  
Retained earnings191  —  
Accumulated other comprehensive loss(1,479) (1,253) 
Non-controlling interest338  333  
Total Equity4,366  14,435  
Total Liabilities and Equity$24,176  $22,406  
Debt Ratios: 1
Total debt to total capitalization73 %
Net debt to net capitalization68 %
1 Debt to total capitalization equals total debt divided by total debt plus equity. Net debt to net capitalization equals total debt less cash and cash equivalents divided by total debt plus equity less cash and cash equivalents.

Carrier Global Corporation
Condensed Consolidated Statement of Cash Flows
For the Six Months Ended June 30,
(dollars in millions)20202019
Operating Activities
Net income from operations$371  $1,197  
Adjustments to reconcile net income from operations to net cash flows provided by operating activities, net of acquisitions and dispositions
Depreciation and amortization159  167  
Deferred income tax provision135  (57) 
Stock compensation costs35  22  
Equity method investment net earnings(86) (120) 
Distributions from equity method investments49  46  
Impairment charge on minority-owned joint venture investments72  —  
Changes in operating assets and liabilities
Accounts receivable, net27  (206) 
Contract assets, current(140) (43) 
Inventories, net(325) (340) 
Other assets, current32  16  
Accounts payable and accrued liabilities152  (173) 
Contract liabilities, current37  (16) 
Pension contributions(27) (27) 
Other operating activities, net65  (95) 
Net cash flows provided by operating activities556  371  
Investing Activities
Capital expenditures(94) (89) 
(Payment) receipt from settlement of derivative contracts(23)  
Other investing activities, net14   
Net cash flows used in investing activities(103) (80) 
Financing Activities
(Decrease) increase in short-term borrowings, net(17) 45  
Issuance of long-term debt11,734  77  
Repayment of long-term debt(36) (37) 
Dividends paid to non-controlling interest(8) (3) 
Net transfers to UTC(10,359) (548) 
Other financing activities, net (26) 
Net cash flows provided by (used in) financing activities1,315  (492) 
Effect of foreign exchange rate changes on cash and cash equivalents(17)  
Net increase (decrease) in cash and cash equivalents and restricted cash1,751  (194) 
Cash, cash equivalents and restricted cash, beginning of period957  1,134  
Cash, cash equivalents and restricted cash, end of period2,708  940  
Less: restricted cash  
Cash and cash equivalents, end of period$2,704  $936  


Carrier Global Corporation
Free Cash Flow Reconciliation

For the Three Months Ended March 31,
(dollars in millions)20202019
Net income attributable to common shareowners$96  $400  
Net cash flows provided by operating activities$47  (183) 
Less: Capital expenditures48  41  
Free cash flow$(1) $(224) 
Free cash flow as a percentage of net income attributable to common shareowners(1)%(56)%

For the Three Months Ended June 30,
(dollars in millions)20202019
Net income attributable to common shareowners$261  $784  
Net cash flows provided by operating activities$509  554  
Less: Capital expenditures46  48  
Free cash flow$463  $506  
Free cash flow as a percentage of net income attributable to common shareowners177%65%

For the Six Months Ended June 30,
(dollars in millions)20202019
Net income attributable to common shareowners$357  $1,184  
Net cash flows provided by operating activities$556  $371  
Less: Capital expenditures94  89  
Free cash flow$462  $282  
Free cash flow as a percentage of net income attributable to common shareowners129%24%