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目錄             
美國
證券交易委員會
華盛頓特區20549
 ____________________________________ 
表格 10-Q
____________________________________ 
☒根據1934年證券交易法第13或15(d)條款的季度報告。
截至2024年6月30日季度結束 2024年9月30日
或
☐根據1934年證券交易法第13或15(d)條款的過渡報告
委員會文件編號 001-39220
____________________________________ 
開利全球公司
（依憑章程所載的完整登記名稱）
____________________________________ 
特拉華州 83-4051582
(成立或組織的州或其他轄區)（聯邦稅號）
13995 Pasteur Boulevard, 棕櫚灘花園, 佛羅里達 33418
(總辦事處地址，包括郵遞區號)
(561) 365-2000
(註冊公司之電話號碼，包括區號)
根據法案第12(b)條規定註冊的證券：
每種類別的名稱交易標的（s）每個註冊交易所的名稱
普通股票（面值$0.01）CARR紐約證券交易所
4.375%到期日2025年的票據CARR25紐約證券交易所
2028年到期的4.125%票據CARR28紐約證券交易所
2032年到期的4.500%票據CARR32紐約證券交易所
請在核選記號區域表明：（1）本登記申請人在過去12個月（或申請人需要提交此項申報的較短期間）內已提交證券交易所法案第13條或第15(d)條要求提交的所有報告，且（2）本申請人在過去90日內已遵守上述提交要求。是  ☒否☐
請以核對標記表明，申報人是否在過去12個月（或需申報此類檔案的較短期間）內依照《S-T法規第232.405條》的規定，每次必須提交的交互式數據文件？是  ☒不☐
請勾選相應的選項，以指示申報人是大型快速申報人、快速申報人、非快速申報人、較小型報告公司，還是新興成長型公司。詳細定義請參閱《交易所法》第1202條中的“大型快速申報人”、“快速申報人”、“較小型報告公司”和“新興成長型公司”定義。
大型加速歸檔人☒加速歸檔人☐
非加速歸檔人☐較小報告公司☐新興成長公司☐
如果該企業為新興成長型企業，請在是否選擇不使用證交法第13(a)條所提供之符合任何新的或修訂財務會計標準的延長過渡期的方格中打勾。☐

在核准書上打勾表示公司是否為殼公司（如交易所法規定的第1202條所定義）。 是☐不☒
截至2024年10月15日，已經有 897,227,361 股普通股已發行。
1
目錄             
開利全球公司
第十季度表格季度報告內容
2024年9月30日結束的三個月和九個月
頁面

開利全球公司及其子公司的名稱、簡稱、標誌和產品及服務名稱，均為開利全球公司及其子公司的註冊商標或商號，或為未註冊商標或商號。其他公司的名稱、簡稱、標誌、產品和服務名稱，均為其各自所有者的註冊商標或商號，或為未註冊商標或商號。在本文件中使用的「我們」、「我們」、「我們的」、「公司」或「開利」，除非情況另有要求，均指開利全球公司及其子公司。本10-Q表格中提及的互聯網網站僅供方便參考。這些網站提供的資訊並未納入本10-Q表格之參考。








2
目錄             
財務報表第一部分
第一項：基本報表。
-開利全球公司
概述的綜合營運報表
(未經查核)
截至九月三十日止三個月截至九月三十日止九個月
（單位：百萬美元，除每股金額外）2024202320242023
淨銷售額
產品銷售$5,307 $4,344 $15,460 $12,939 
服務銷售677 591 1,878 1,696 
總淨銷售額5,984 4,935 17,338 14,635 
成本及費用
產品成本(3,796)(2,986)(11,245)(9,269)
已售服務成本(511)(463)(1,456)(1,321)
研發費用(172)(126)(524)(355)
銷售，一般及行政費用(799)(664)(2,394)(1,870)
總成本和費用(5,278)(4,239)(15,619)(12,815)
股權法投資淨收益66 75 187 171 
其他收入（費用），淨額(9)(261)(34)(370)
營業利潤763 510 1,872 1,621 
非服務退休金（支出）利益(1)— (1)— 
利息（費用）收入淨額8 (39)(290)(126)
稅前收益770 471 1,581 1,495 
所得稅（費用）收益(172)(177)(339)(453)
持續營運收益598 294 1,242 1,042 
已中止的營運，稅後淨損失(117)87 1,897 (41)
淨收益（損失）481 381 3,139 1,001 
扣除：子公司非控制權益34 24 86 72 
歸屬於普通股東的淨收益（損失）$447 $357 $3,053 $929 
歸屬於普通股東的金額：
繼續營業$564 $270 $1,156 $970 
已中止之營運(117)87 1,897 (41)
歸屬於普通股東的淨收益（損失）$447 $357 $3,053 $929 
每股收益
基本每份收益：
繼續營業$0.63 $0.32 $1.28 $1.16 
已中止之營運(0.13)0.11 2.11 (0.05)
淨收益（損失）$0.50 $0.43 $3.39 $1.11 
稀釋後：
繼續營業$0.62 $0.32 $1.26 $1.14 
已中止之營運(0.13)0.10 2.08 (0.05)
淨收益（損失）$0.49 $0.42 $3.34 $1.09 
加權平均發行股份數
基礎901.2 838.7 900.9 836.6 
稀釋915.0 854.7 914.4 852.7 
附註是未經審核的簡明綜合財務報表的重要組成部分。
3
目錄             
開利全球公司
綜合收入（虧損）總表
(未經查核)
截至9月30日止三個月截至9月30日止九個月
（以百萬為單位）2024202320242023
淨收益（損失）$481 $381 $3,139 $1,001 
其他綜合損益（稅後淨額）：
期間內產生的外幣兌換調整678 (246)102 (255)
養老金和發貼後福利計劃調整1 — 2 — 
期間內產生的未實現現金流對沖損益— 80 — 80 
未實現現金流對沖收益（損失）的攤銷(1)— (3)— 
分拆215 — 588 — 
其他綜合收益（損失）- 稅後893 (166)689 (175)
綜合收益（損失）1,374 215 3,828 826 
減：歸屬於非控股權益的綜合收益（損失）43 23 91 65 
歸屬於普通股權益的綜合收益（損失）$1,331 $192 $3,737 $761 
附註是未經審核的簡明綜合財務報表的重要組成部分。
4
目錄             
開利全球公司
縮表合併資產負債表
(未經查核)
截至
（以百萬為單位）九月三十日，
2024		12月31日，
2023
資產
現金及現金等價物$2,225 $9,852 
應收帳款淨額2,726 2,080 
存貨淨值2,646 1,823 
待售資產2,680 5,093 
其他流動資產917 728 
全部流動資產11,194 19,576 
未來所得稅利益1,142 718 
固定資產，扣除累計折舊和攤銷3,015 2,160 
營運租賃權使用資產568 421 
無形資產，扣除累計攤銷7,118 945 
商譽15,294 7,520 
養老金和發帖後資產54 32 
權益法投資1,287 1,140 
其他資產529 310 
總資產$40,201 $32,822 
負債及股東權益
應付賬款$2,829 $2,483 
應付負債4,233 2,997 
待售負債1,221 1,450 
長期債務的當期償還2,095 51 
流動負債合計10,378 6,981 
長期負債10,337 14,242 
未來養老金和退休後的義務209 149 
未來所得稅義務2,241 523 
營業租賃負債445 333 
其他長期負債1,549 1,589 
總負債25,159 23,817 
承諾和條件性負債（附註19）
股權
普通股票9 9 
庫藏股(2,403)(1,972)
資本公積額額外增資8,588 5,535 
保留收益9,301 6,591 
累積其他全面損失(802)(1,486)
非控制權益349 328 
股東權益總額15,042 9,005 
負債及股東權益總計$40,201 $32,822 
附註是未經審核的簡明綜合財務報表的重要組成部分。
5
目錄             
開利全球公司
綜合股東權益變動表
(未經查核)
（以百萬為單位）累計其他綜合收益（損失）普通股庫藏股資本公積金保留收益非控制權益股東權益總額
截至2023年12月31日的結餘$(1,486)$9 $(1,972)$5,535 $6,591 $328 $9,005 
淨收益（虧損）— — — — 269 20 289 
其他綜合收益（損失）- 稅後(386)— — — — (3)(389)
員工激勵計畫下發行的股份，淨額— — — (22)— — (22)
股份報酬— — — 23 — — 23 
收購VCS業務— — — 3,000 — — 3,000 
截至2024年3月31日的餘額$(1,872)$9 $(1,972)$8,536 $6,860 $345 $11,906 
淨收益（虧損）————2,337322,369
其他綜合收益（損失）- 稅後186————(1)185
普通股股息宣布 (1)
————(343)—(343)
根據激勵計劃發行的股份，淨值———2 ——2
股份報酬———25 ——25
歸屬於非控制權益的股息—————(65)(65)
截至2024年6月30日的餘額$(1,686)$9 $(1,972)$8,563 $8,854 $311 $14,079 
淨收益（虧損）— — — — 447 34 481 
其他綜合收益（損失）- 稅後884 — — — — 9 893 
根據激勵計劃發行的股份，扣除— — — (3)— — (3)
股份報酬— — — 28 — — 28 
歸屬於非控制股東的分紅派息— — — — — (5)(5)
庫藏股回購— — (431)— — — (431)
截至2024年9月30日的餘額$(802)$9 $(2,403)$8,588 $9,301 $349 $15,042 
(1) 截至2024年6月30日三個月結束時宣布的現金分紅為$0.38 每股
附註是未經審核的簡明綜合財務報表的重要組成部分。
6
目錄             
開利全球公司
綜合股東權益變動表
(未經查核)
（以百萬為單位）累計其他綜合收益（損失）普通股庫藏股資本公積金保留收益非控制權益股東權益總額
截至2022年12月31日的资产负债表$(1,688)$9 $(1,910)$5,481 $5,866 $318 $8,076 
淨收益（虧損）— — — — 373 14 387 
其他綜合收益（損失）- 稅後52 — — — — 2 54 
憑激勵計畫發行的股份，淨值— — — (9)— — (9)
股份報酬— — — 22 — — 22 
庫藏股回購— — (62)— — — (62)
截至2023年3月31日之結餘$(1,636)$9 $(1,972)$5,494 $6,239 $334 $8,468 
淨收益（虧損）— — — — 199 34 233 
其他綜合收益（損失）- 稅後(55)— — — — (8)(63)
普通股宣布的股息 (1)
— — — — (309)— (309)
按激勵計劃發行的股份淨額— — — (18)— — (18)
股份報酬— — — 18 — — 18 
歸屬於非控股權益的分紅派息— — — — — (41)(41)
截至2023年6月30日的結餘$(1,691)$9 $(1,972)$5,494 $6,129 $319 $8,288 
淨收益（虧損）— — — — 357 24 381 
其他綜合收益（損失）- 稅後(165)— — — — (1)(166)
股份報酬— — — 23 — — 23 
歸屬於非控制權益的分紅派息— — — — — (2)(2)
非控制權益出售— — — — — (22)(22)
2023年9月30日的結餘$(1,856)$9 $(1,972)$5,517 $6,486 $318 $8,502 
(1) 宣布的現金股息為$0.37 2023年6月30日結束的三個月每股

附註是未經審核的簡明綜合財務報表的重要組成部分。
7
目錄             
開利全球公司
簡明的現金流量綜合表
(未經查核)
 截至九月三十日止九個月
（以百萬為單位）20242023
營運活動
淨收益（虧損）$3,139 $1,001 
已中止的營運，稅後淨損失(1,897)41 
非現金事項之調整，淨值：
折舊與攤提914 368 
延遲所得稅支出(296)(150)
股票為基礎的補償成本65 55 
股權法投資淨收益(187)(171)
（債務撲滅）損益(88)— 
(投資收益)出售投資/取消合併之損益(2)(19)
營運資產和負債的變動
應收帳款淨額(135)(279)
存貨淨值76 (72)
應付款及應計費用(258)622 
股權法下投資分紅36 45 
其他經營活動，淨額(159)(96)
繼續營運活動提供(使用)的淨現金流量1,208 1,345 
已停止營運活動提供(使用)的淨現金流量(777)200 
經營活動產生的淨現金流量431 1,545 
投資活動
資本支出(302)(217)
對企業的投資，扣除已取得現金淨額(10,873)(69)
業務處置— 54 
衍生合約結算，淨額(187)(66)
其他投資活動，淨額31 14 
持續投資活動提供的淨現金流量(11,331)(284)
中止投資活動提供的淨現金流量6,217 (147)
投資活動提供的淨現金流入額（流出額）(5,114)(431)
融資活動
短期借款淨增加（減少）37 (27)
長期債務發行2,586 14 
還債長期借款(4,530)(15)
購回普通股(431)(62)
分紅派息支出(514)(465)
Dividends paid to non-controlling interest(72)(46)
其他籌資活動，淨額(15)(72)
續續資金活動提供的淨現金流量(2,939)(673)
停辦資金活動提供的淨現金流量(11)(15)
融資活動產生的淨現金流量(2,950)(688)
匯率期貨對現金及現金等價物影響(18)(45)
現金及現金等價物及受限現金淨增加（減少），包括分類為持售當期資產的現金(7,651)381 
減：分類為持售資產的現金結餘變動(36)(5)
現金及現金等價物和限制性現金的淨增加（減少）(7,615)386 
本期期初現金、現金及受限制的現金餘額為9,854 3,303 
本期期末現金、現金及受限制的現金餘額為2,239 3,689 
減：受限現金14 4 
現金及現金等價物期末餘額$2,225 $3,685 
附註是未經審核的簡明綜合財務報表的重要組成部分。
8
目錄             
開利全球公司
基本報表附註
(未經查核)

注意 1: 業務簡述

開利全球公司（以下簡稱"公司"）是全球智能氣候和能源解決方案的領導者，致力於為客戶提供差異化的、數字化的全生命周期解決方案。該公司組合包括領先行業的品牌，如開利、維斯曼、東芝、自動邏輯和開利冷鎖，提供創新的供暖、通風、空調（"HVAC"）、制冷和冷鏈運輸解決方案，幫助使世界更加安全和舒適。該公司還提供廣泛的相關建築服務，包括審計、設計、安裝、系統集成、維修、保養和監控。該公司的運營被分類為 兩個 板塊：供暖、通風、空調和制冷。

管理層認為，隨附的未經審核簡明綜合財務報表包含所有必要的調整（包括正常循環調整），以公允陳述所呈交期間的財務狀況、營運及現金流量。 根據美國通行的會計原則（"U.S. GAAP"）編製的財務報告通常包括的某些信息和註腳披露，已根據美國證券交易委員會（"SEC"）的規定予以省略。 這些未經審核的簡明綜合財務報表應與2024年2月6日提交給SEC的公司年度報告Form 10-K中包含的經過審核的財務報表和相關附註一起閱讀（"2023 Form 10-K"）。

注意2: 報告基礎

未經審計的簡明綜合基本報表包括公司及其全資和控股子公司的所有賬戶，其中公司擁有控制權。公司之間的賬目和交易已被消除。公司與其權益法關聯投資者之間的相關交易未被消除。非控股權益代表非控股投資者對公司控制和合並後子公司業績的利益。

買下Viessmann Climate Solutions

2023年4月25日，公司宣布已簽訂「股份購買協議」（下稱「協議」），以收購Viessmann Group GmbH & Co. KG（「Viessmann」）旗下的氣候解決方案業務（「VCS業務」），Viessmann為一家非上市公司。收購已於2024年1月2日完成。因此，VCS業務的資產、負債和業務結果已合併匯入隨附的未經審核簡明綜合財務報表中，截至收購日期的報告內容在公司的暖通空調（HVAC）業務部門中。詳見附註15 – 收購其他資訊。

投資組合轉型

於2023年12月7日，該公司簽訂了一項股份購買協議，將其Access Solutions業務（“Access Solutions”）賣給honeywell international inc。因此，Access Solutions的資產和負債列示為截至2023年12月31日的附屬未經審核簡明合併資產負債表中的待售資產，並按其攤銷價值或公平價值減去預估的賣出成本的較低者記錄。Access Solutions的出售已於2024年6月2日完成。請參閱附註16 - 出售以獲取更多信息。

2023年第四季，公司的工業消防業務（"工業消防"）符合被歸類為待售資產的標準。因此，工業消防的資產和負債在2023年12月31日隨附的未經審計簡明綜合資產負債表中按照其成本或公允價值減估售賣成本的較低者呈現為待售。2024年3月5日，公司簽訂了出售工業消防給Sentinel Capital Partners的股票購買協議。工業消防的出售已於2024年7月1日完成。詳細信息請參見第16條 - 資產出售說明。

9
目錄             
公司於2023年12月12日簽署了一項股份購買協議，將其商業冷凍業務（"CCR"）以約$賣出給海爾集團有限公司。775因此，CCR的資產和負債列為持有待售，在2024年9月30日和2023年12月31日的未經審核簡明合併資產負債表上，以其帳面價值或低於其公平價值減去估計出售成本的那一者記錄。CCR的出售於2024年10月1日完成。有關詳細信息，請參閱附註16 - 脫售。

2024年8月15日，公司達成了一項股票購買協議，將其商業和住宅防火業務（“CRF業務”）賣給Lone Star Funds的關聯公司，企業價值約為美元。3.0十億。因此，CRF業務的資產和負債被記為持有待售，在附帶之未經審核的簡明綜合賬戶資產負債表上，截至2024年9月30日和2023年12月31日，並以其帳面價值或公平價值減預估賣出成本的較低者記錄。請參見附註16 - 剝離業務以獲得更多信息。

在2062年第四季度開始，公司停用能源業務。

2023年，該公司宣布計劃於2024年退出其消防與安防以及商用冷凍業務。退出消防與安防業務的計劃代表單一棄售計劃，將在不同的報告期內分別剥離多個業務。截至2024年9月30日結束的三個月內，CRF業務符合可供出售標準，因此消防與安防業務的元件總體符合停業經營的準則，將在隨附的未經審計簡明綜合營業損益表和未經審計簡明綜合現金流量表中呈現為停業營運。此外，CRF業務的資產和負債已於2023年12月31日重新分類為待售。CCR業務的結果未符合停業營業的標準。詳情請參見附註16-剥離事項。

Kidde-Fenwal, Inc.的去除合併

在2023年5月14日，Kidde-Fenwal, Inc.（"KFI"）公司的間接全資子公司向美國特拉華地方法院依據美國破產法第11章《Chapter 11》自願重組的請願書。 KFI是一家歷史上歸入公司消防和安防業務部門的工業火災檢測和壓制業務，該公司表示打算利用破產程序探索戰略性選擇，包括將KFI作為持續經營實體出售。在請願日期，KFI已經脫離合併，其相應資產和負債已從公司未經審計的簡明合併財務報表中被取消認列。 KFI的出售於2024年7月1日完成。有關詳細信息，請參見第19條 - 承諾和潛在負債。

與聯合科技的分離

於2020年4月3日（"發行日"），聯合技術公司（"UTC"）後更名為RTX公司（"雷神技術公司"或"RTX"），通過按持股比例分配（"發行"）在公開市場獨立上市公司Carrier進行了分拆（"分拆"）。 一年。- 將所有UTC股東持有的UTC普通股股份（截至2020年3月19日营业结束时的股权登记日）以一比一的比例進行分配。在分拆和分配之後，公司與UTC和奧的斯公司（"奧的斯"）簽訂了幾項協議，管理公司、UTC和奧的斯之間的各個方面的關係。截至2024年9月30日，稅務事項協議（"TMA"）僅部分內容仍然有效。

最近公布的和採納的會計準則說明

財務會計準則委員會（"FASB"）會計準則法典（"ASC"）是獨家具有權威性的美國GAAP的來源，除了只適用於SEC登記人的SEC規則和法規。FASB發布會計標準更新（"ASU"）來傳達法典的變更。公司考慮所有ASU的適用性和影響。有待採納的ASU已經評估並確定為不適用或預計對所附的未經審核簡明綜合財務報表沒有實質影響。
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最近公佈的會計準則

2023年11月，FASb發布了ASU 2023-07，旨在改善可報告的部門披露，以及增強有關顯著可報告的部門費用的披露。此指引將於我們的年度報告開始生效，即2024年12月31日結束的財政年度及其後的中期期間，并要求對所有已呈報的前期期間進行追溯應用。由於這些修訂不改變營運部門的識別方法，營運部門的匯總或定量門檻的應用以確定可報告的部門，我們不認為此指引對我們的財務狀況或經營業績產生實質影響。 分節報告（TOPIC 280）：改進報告的分節披露 （ASU 2023-07），要求上市公司在每年和每季揭露其可報告部門重要費用的信息。此外，修訂澄清實體可在何種情況下披露多個部門利潤或損失測度，為只有一個可報告部門的實體提供新的部門披露要求，並包含其他披露要求。 ASU 2023-07 自2023年12月15日後開始的財政年度和2024年12月15日後開始的中期周期生效，可允許提前適用。 公司目前正在評估這個ASU對其基本報表的影響。

2023年12月，FASB發布了ASU 2023-09「 所得稅（740主題）：所得稅披露的改進 （「ASU 2023-09」）要求公眾實體披露其有效稅率調和的分解信息，以及有關所支付所得稅的信息。 ASU 2023-09將於2024年12月15日後開始的財政年度生效，允許提前採納。 公司目前正在評估此ASU對其基本報表的影響。

於2024年3月6日，證券交易委員會通過了旨在加強公開公司有關氣候相關事項風險和影響披露的新規定。這些規定修改了《S-K條例》和《S-X條例》的規定，要求披露有關氣候相關風險、過渡計劃、目標和目標、風險管理和治理，並要求披露嚴重天氣事件和其他自然條件的財務影響，以及碳抵消或可再生能源積分的使用。披露要求將從2025年1月1日或之後開始生效，但必須考慮法律挑戰和證券交易委員會自願暫停披露要求。在暫停期間，公司將繼續評估這些新規定對其基本報表的影響。

註釋3： 存貨，淨值

存貨按成本或估計淨可實現價值中的較低者列報。 成本主要是根據先進先出存貨方法（"FIFO"）或平均成本方法來確定的，這兩種方法近似當前的替代成本。 但是，某些子公司使用後進先出存貨方法（"LIFO"）。

庫存淨值包括以下項目：

（以百萬計）九月三十日，
2024		12月31日,
2023
原材料$872 $534 
在製品246 245 
成品1,528 1,044 
存貨，淨額$2,646 $1,823 

公司定期進行評估，利用客戶需求、產量要求和歷史使用率來判斷是否存在過剩和過時的庫存，並記錄必要的撥備，以將此類庫存減少至成本或預估净可實現價值的較低者。原材料、在製品和成品的淨額為$的估值準備金。224 百萬美元和$173 分別為百萬美元。

註4： 商譽和無形資產

公司將商譽記為併購中資產的公允價值超過購買價的部分。商譽每年在7月1日或任何事件或情況發生重大變化時進行測試和審核，顯示報告單位可能的公允價值低於其攤銷價值。

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商譽攤銷金額的變動如下所示:

（以百萬計）暖通空調冷藏公司及其他總計
截至2023年12月31日之餘額$6,407 $1,037 $76 $7,520 
收購 (1)
7,608 29 — 7,637 
外幣翻譯61 76 — 137 
截至2024年9月30日的結餘$14,076 $1,142 $76 $15,294 
(1) 請參見附註15 - 收購以獲取更多信息。

無限壽命無形資產將於每年7月1日進行檢測和審查，以確認是否存在材料變化的事件或情況，表明資產的公允價值可能低於資產的攜帶金額。所有其他有限用fulfulfulful用fulfulfulful

可識別的無形資產包括以下項目：

2024年9月30日2023年12月31日
（以百萬計）毛額累積攤提淨金額毛額累積攤提淨金額
客戶關係$5,990 $(852)$5,138 $1,056 $(445)$611 
百萬減值費用與Cell&Co因公司的全球重新品牌定位計畫而停用的商號注銷相關。946 (140)806 255 (96)159 
服務組合和其他1,637 (463)1,174 431 (256)175 
無形資產總額$8,573 $(1,455)$7,118 $1,742 $(797)$945 

無形資產的攤銷如下：

截至九月三十日止三個月截至九月三十日止九個月
（以百萬計）2024202320242023
無形資產攤銷費用$213 $54 $632 $167 

年度減損測試

公司於7月1日對其商譽和無限壽命無形資產進行損耗測試，作為其年度評估的一部分。除一項測試外，公司就可能影響公允價值估計的所有相關事件或情況進行定性評估，並判斷公允價值超過其攜帶金額的報告單位和無限壽命無形資產的數量比不低於可能。對於剩下的測試，公司進行了定量商譽測試，以判斷是否存在任何損耗。該測試未指示任何商譽損耗.

就CRF業務於2024年9月30日被列為待出售之安防業務報告，公司將商譽重新分配到此前報告在消防與安防板塊的餘下業務活動。為了進行測試，公司對可能影響公平價值估算的所有相關事件或情況進行了定性評估，並確定餘下業務活動的公平價值超過其攤銷金額的可能性大於50%。由於這些業務活動不再符合可報告板塊的標準，它們已被納入公司及其他。
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注意 5: 借款及信貸額度

長期債務包括以下內容：

（以百萬計）九月三十日，
2024		12月31日,
2023
2.242% 2025年到期票據 (1)
$1,200 $1,200 
4.375% 2025年到期票據 (2)
836 830 
5.8002025年到期的%票據
— 1,000 
2.493到期日為2027年的債券%
900 900 
4.1252028年到期的%票據
836 830 
2.7222030年到期的％票據
2,000 2,000 
2.700%到期日 2031年
750 750 
4.5002032年到期的%票據
948 941 
5.9002034年到期的%票據
875 1,000 
3.377% 2040 年到期的票據
1,500 1,500 
3.577% 2050 年到期的票據
1,400 2,000 
6.2002054年到期的債券
650 1,000 
總長期票據11,895 13,951 
日本定期貸款便利374 379 
其他債務（包括專案融資義務及融資租賃）243 74 
折扣和債務發行成本(80)(111)
總負債12,432 14,293 
減：長期負債的流動部分2,095 51 
長期負債，除了當期部分淨額$10,337 $14,242 
(1) 2.242% 2025年2月15日到期的債券；重新分類為 長期債務的當期償還.
(2) 4.375% 債券於2025年5月29日到期；重新分類為 長期債務的當期償還.

收購資金

於2024年1月2日，本公司完成了對VCS業務的收購，總對價為$14.2十億。在協議的條款下， 20%的購買價格以Carrier普通股支付，直接發放給Viessmann，並需遵守某些禁售條款及 80%以現金支付，並需根據營運資金及其他調整進行適當調整。為了籌集以歐元計價的現金部分購買價格，本公司使用了現有資金、債務融資和各項定期貸款設施。

債務發行

二零二三年十一月，該公司發行美元3.0以美元計價債券的十億元本金額 三 分期。分期由 $ 組成1.0十億總本金額 5.802025 年到期債券百分比，美元1.0十億總本金額 5.902034 元及美元到期債券百分比1.0十億總本金額 6.202054 年到期的百分比債券（統稱為「美元債券」）。此外，本公司發行歐元2.35以歐元計價債券的十億元本金額 三 分期。分期包括歐元750百萬總本金額 4.3752025 年到期債券百分比，歐元750百萬總本金額 4.1252028 及歐元到期債券百分比850百萬總本金額 4.502032 年到期的百分比債券（統稱為「歐元債券」）。公司資本化 $51在相關債券的期限內攤銷的百萬個延期融資成本。有關債券受某些常規約約束，並且本公司可選擇於指定到期日之前，任何時間以簽約合約所列的贖回價格，全部或部分贖回債券。2024 年 6 月，公司兌換了美元1.0十億總本金額 5.802025 年到期及產生 1 美元債券百分比8預付款後的百萬全額保費並扣除 $4百萬元相關未攤銷債務融資成本。

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橋梁貸款

於2023年4月25日，公司與摩根大通銀行，美國銀行證券公司和美國銀行達成承諾函，提供€8.2十億歐元總本金，高級無擔保橋期貸款設施（“橋貸款”）。以歐元計價的借款按照EURIBOR利率加一個基於評級的差額利率計息，以美元計價的借款則按照Term SOFR利率加 0.10%和一個基於評級的差額利率計息，或者選擇按照基準利率加一個基於評級的差額利率計息。公司資本化了與橋貸款相關的$48百萬延期融資費用，這些費用在承諾期間攤銷。公司在簽署高級無擔保延期動用期限貸款設施並發行美元票據和歐元票據時，將橋貸款減少了€7.7十億並加快了在$25百萬的延期融資費用攤銷 利息支出 於2023年間，公司於2024年1月2日，公司進入了 60天 高級無擔保期貸款協議，由一筆以歐元指數計價的款項以總額€113 百萬，以及一筆以美元指數計價的款項以總額$349百萬美元（“60天 貸款”。公司參與「 60天 貸款後，公司將橋接貸款的最後一部分減少€500 百萬美元並隨後終止了協議。借款於摩根大通下。 60天 貸款於2024年3月償還。

滯留抽取設施

在2023年5月19日，公司與摩根大通銀行及其他某些貸款方簽署了一項無擔保的延遲提款定期貸款信貸協議，該協議允許總貸款額高達€2.3十億（以下稱為“延遲提款設施”）。該設施由一個 180個月的期間根據當地國家的規定和程序。我們預計根據該計劃提供的解雇津貼和法律專業費用的稅前成本將在現金支出中區間。這些費用預計在2026年財政年度中產生，並將被歸類為業務優化費用。以歐元計價的貸款組成，總額為€1.15十億和一個 3年以歐元計價的貸款，總額為€1.15十億。以歐元計價的借款利率為EURIBOR利率加上基於評級的利差，以美元計價的借款利率為Term SOFR利率加上 0.10% 及根據評級的利潤 margin，或備選地，按照基準利率加上根據評級的利潤 margin。公司資本化了$4百萬的遞延融資成本，將在各自分期的期限內攤銷。2024年1月2日，公司以美元借取了延遲提款設施下的全部可用金額。根據延遲提款設施的借款於2024年6月償還，該設施隨後被終止。

364-日轉輪

在2024年5月17日，公司簽訂了一份 364天, $500百萬美元的高級無抵押循環信貸協議，與摩根大通銀行（JPMorgan Chase Bank, N.A.）作為管理代理，及若干其他貸款人（以下稱為「364天 循環信貸」）。借款以美元和歐元計價。以美元計價的借款利率為任期SOFR利率加上 0.10%的根據評級的利差，或者，替代地，根據基準利率加上根據評級的利差；以歐元計價的借款利率為調整後的EURIBOR利率加上根據評級的利差。在進入「 364天 循環信貸」時，公司終止了其現有的$500一筆於2024年5月到期的百萬無擔保循環信貸協議。截止至2024年9月30日，已有 no 未偿还的借款金额为 364天 循環信貸。

日元定期貸款設施

在2022年7月15日，該公司簽訂了一份 五年，JPY 54十億（約$400百萬）無擔保的高級定期貸款協議，與三菱UFJ銀行（MUFG Bank Ltd.）作為行政代理和貸款人，以及其他幾位貸款人（以下稱為「日本定期貸款設施」）。根據日本定期貸款設施的借款利率為東京定期無風險利率加上 0.75%。該公司資本化了$2百萬的攤銷融資成本，這些成本將在貸款期限內攤銷。2022年7月25日，該公司在日本定期貸款設施下借入JPY 54十億，並將所得款項用於支付東芝空調公司（“TCC”）以日圓計價的購買價格的一部分，並支付相關的費用和開支。

循環信貸設施

於 2023 年 5 月 19 日，公司與 N.A. 摩根大通銀行作為行政代理人和部分其他貸款人簽訂循環信貸協議，允許總貸款高達美元2.0 根據一項於 2028 年 5 月到期的無擔保、無抵押的循環信貸設施（「循環信貸設施」）提供 10 億元。循環信貸保障支持公司的商業證券計劃，並可用於其他一般公司用途。借款以美元和歐元提供。美元貸款須以定期 SOFR 利率加上的利息 0.10百分比和以評分為基礎的保證金，或者以替代基準利率加以評分為基礎的保證金。歐元貸款按調整的歐元債券利率加以評級為基礎的保證金收取利息。未使用的承諾將收取以評分為基礎的承諾費。此外，公司資本化 $2將於期內攤銷的百萬個延期融資成本。 截至 二零二四年九月三十日，有 沒有 循環信貸設施下未償還貸款。
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商業票據計劃

公司有一個$2.0十億美元的無擔保、非次級的商業票據計劃，可用於一般企業用途，包括資金運作資金和潛在的收購。截止至2024年9月30日，尚有 no 在商業票據計劃下的未償借款。

項目融資安排

公司參與長期施工合約，在此合約中安排與特定客戶的專案融資。因此，公司於截至2024年及2023年九月三十日的九個月期間分別發行了$百萬的債務。40 百萬美元和$14 長期債務還款與這些融資安排相關，在截至2024年及2023年九月三十日的九個月期間，分別是$7 百萬美元和$15 百萬美元，分別為。

債務契約

循環信貸設施， 364天 循環信貸、長期票據的契約和日本授信設施都包含對這些類型的財務安排習見的肯定和否定條款，其中包括限制公司承擔某些留置權、進行某些基本變更和進行出售和租回交易的能力。截至2024年9月30日，公司符合管理其未償還負債的協議的條款。

要約性出價

在2024年7月，公司開始進行要約收購，以購買總額高達$800百萬（「總要約上限」）的公司某些系列債券的總本金。這些要約收購包括在結算日之前支付適用的累計和未支付利息，以及提前還款的固定利差。根據參與情況，公司選擇提高總要約上限並提前結算要約收購。接受的總本金金額約為$1.0十億，其中包括$125百萬的2034年到期的債券，$350 百萬的2054年到期的債券和約$600百萬的2050年到期的債券。結算時，公司認識到淨收益為$97百萬，並寫掉$11百萬的未攤銷融資成本。 利息（費用）收入，淨額 附上的未經審核的簡明合併損益表上。

附註6: 公平價值計量

ASC 820規定，在許多情況下，交易價格將等於公允價值（例如，當交易日期上在市場中買入資產的交易發生時，可能會是如此）。在初始識別時確定交易價格是否代表公允價值時，我們考慮各種因素，例如交易是否涉及關聯方，是否為強制交易，或交易價格的計量單位是否不代表測量工具的計量單位。 公平價值計量 《ASC 820》定義公平價值為資產在計量日期以市場參與者間有序交易中出售時應收到的價格，或將負債轉移時支付的價格。《ASC 820》還建立了一個三層公平價值層級，優先考慮在定價資產或負債時使用的假設設定資訊，按照以下方式：

•第1級：可觀察的輸入，例如活躍市場中的報價價格；
•二級：除了在活躍市場中報價的價格之外，其他可直接或間接觀察到的輸入；以及
•三級：不明確數據，幾乎沒有市場數據，需要報告實體制定自己的假設。

ASC 820要求在可用時使用可觀察的市場數據來進行公允價值的測量。當用於測量公允價值的輸入落於層級的不同級別時，公允價值測量所屬的級別是根據對公允價值測量重要的最低級別輸入來確定的。

在正常的業務過程中，公司面臨著來自業務運營和經濟因素的某些風險，包括外匯和商品價格風險。這些風險通過運營策略和使用未指定的對沖合約進行管理。公司的衍生資產和負債是基於可觀察的市場輸入，使用內部模型以公允價值進行定期測量，例如遠期、利率、合約和折扣率，並在公允價值變動中報告於 其他收入（費用），淨額 附帶的未經審核的簡明合併運營報表中。

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二零二二年期間，公司與多家金融機構進行交叉貨幣兌換，以資助 TCC 以人民幣計價的部分。交叉貨幣交換按公平價格定期評估，使用可觀察的市場輸入，例如遠期、折扣和利率以及信貸違約交易點差。該公司指定交叉貨幣兌換作為對其對部分子公司的投資，以管理外幣轉換風險，以管理外幣轉換風險。因此，交換的公平價值的變化記錄在 股票 在附帶的未經審核簡明綜合資產負債表中。不時，本公司會結算並進行新的交叉貨幣兌換，具有與最初建立的目的和特點相同。

以人民幣計價的剩餘部分是由日本定期貸款機構資助。該設施的帳面價值以定期計算，以適用期間結束時的匯率計算，並估計其公平價值。該公司指定日本定期貸款設施作為對其對部分子公司的投資，以管理外幣轉換風險，以管理外幣轉換風險。因此，與外匯率變動相關的日本定期貸款設施的帳面價值記錄在 股票 在未經審核簡明綜合資產負債表中。

2023年期間，公司與美國銀行及摩根大通簽訂窗口遠期合約，以減輕與以歐元計價的VCS業務購買價格相關的預期現金流出的外匯風險。這些工具的名義金額為€7 十億並根據觀察市場輸入的可觀測性參數，如遠期、折扣和利率期貨進行定期公允價值衡量，公允價值變動記錄在附帶的未經審計的綜合損益表中。 2023年期間，公司就其窗口遠期合約的按市價計量損失5000萬美元。公司於2024年1月2日完成VCS業務收購時結算窗口遠期合約，並再次記錄了1,000萬美元的損失。 其他收入（費用），淨額 可觀測性參數，如遠期、折扣和利率期貨進行定期公允價值衡量，公允價值變動記錄在附帶的未經審計的綜合損益表中。 2023年期間，公司就其窗口遠期合約的按市價計量損失5000萬美元。公司於2024年1月2日完成VCS業務收購時結算窗口遠期合約，並再次記錄了1,000萬美元的損失。96在未經審計的綜合損益表中。 2023年期間，公司就其窗口遠期合約的按市價計量損失5000萬美元。公司於2024年1月2日完成VCS業務收購時結算窗口遠期合約，並再次記錄了1,000萬美元的損失。86 百萬美元的質押性慨金損失，以報告在未經審計的綜合損益表中。 2023年期間，公司就其窗口遠期合約的按市價計量損失5000萬美元。公司於2024年1月2日完成VCS業務收購時結算窗口遠期合約，並再次記錄了1,000萬美元的損失。

於 2023 年期間，公司簽訂多項利率交換合約，以減輕預期發行長期債務的利率風險。合約的總名義金額為 $1.525數十億，並被指定為現金流量對沖，並報告公平價值變動 股票 在附帶的未經審核簡明綜合資產負債表中。公平價值採用可觀察的市場輸入（例如遠期、折扣和利率）來定期評估公平價值。2023 年 11 月，合約在發行相關債務時結算。因此，該公司延遲了 $ 的未認知淨收益58 百萬 股票 後來將被認可在 利息支出 在 2034 年至 2044 年的相關票據的期限內。預計在 2024 年度攤銷的金額為淨收益為 $5 百萬。

在2024年7月，公司與barclays bank plc進行了跨貨幣掉期，作為銀團掉期安排者，以管理歐元計價資產的外幣轉換風險。這些掉期的名義總額為$2.0十億美元，並且使用可觀察的市場輸入，如遠期、折扣和利率期貨，定期以公允價值計量。公司將跨貨幣掉期指定為對其在某些以歐元為功能貨幣子公司的投資的部分對沖。因此，掉期的公允價值變動將記錄在 權益 隨附的未經審核的簡明綜合資產負債表中。

以下表格提供了在隨附的未經審計簡明綜合賬目表上記錄並按照反覆基礎計量的資產和負債的估值層次分類:

（以百萬計）總計第1級第2級Level 3
2024年9月30日
衍生性資產 (1)(3)
$70 $— $70 $— 
衍生負債 (2)(3)
$(69)$— $(69)$— 
2023年12月31日
衍生資產 (1) (3)
$32 $— $32 $— 
衍生負債 (2) (3)
$(126)$— $(126)$— 
(1) 包含於 其他流動資產 和 其他資產 於隨附的未經審計的簡明綜合資產負債表中。
(2) 包括在其中 應計負債 和 其他長期負債 隨附的未經審核簡明合併資產負債表上。
(3) 包括跨货币掉期和窗口遠期合約（於2024年1月2日結算）。

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下表提供了公司未在附帶的未經審核簡明綜合資產負債表中以公允價值記錄的長期票據的賬面價值和公允價值：

2024年9月30日2023年12月31日
（以百萬計）帳面
金額		公平
價值		帳面
金額		公平
價值
總長期備忘錄 (1)
$11,895 $11,372 $13,951 $13,194 
(1) 不包括債務折扣和發行成本。

公司的長期債務的公允價值是基於可觀察的市場輸入來衡量的，這些輸入被視為公允價值層級的第1級。 現金及現金等價物、應收賬款、應付賬款及短期借款的帳面價值由於這些賬戶的短期特性而接近公允價值，並且會被歸類為公允價值層級的第1級。公司的融資租賃和項目融資義務，包括在 長期負債 和 長期負債的當期部分 隨附的未經審核的簡明合併資產負債表上, 接近公允價值並被歸類為公允價值層級的第3級。

備註 7: 員工福利計畫

該公司贊助美國及國際的確定利益退休金計劃和確定供款計劃。此外，該公司還向各種美國及國際的多雇主確定利益退休金計劃做出貢獻。

各項計劃的捐款如下：

截至九月三十日止三個月截至九月三十日止九個月
（以百萬計）2024202320242023
定期福利計劃$16 $6 $34 $17 
定向捐獻計劃$30 $30 $104 $96 
多雇主養老金計劃$4 $3 $12 $11 

定義利益撥備計劃的淨年期性養老金支出（利益）的元件如下：

截至九月三十日止三個月截至九月三十日止九個月
（以百萬計）2024202320242023
服務成本$4 $4 $11 $12 
利息成本13 8 26 24 
計劃資產預期回報(13)(8)(27)(24)
先前服務費用攤銷— 1 — 2 
公認的精算淨（收益）損失— (1)1 (2)
淨結算、縮減及特殊終止利益（收益）損失1 — 1 — 
淨定期退休金費用（利益）$5 $4 $12 $12 
在持續經營業務中記錄的金額$5 $4 $12 $12 
在終止經營業務中記錄的金額— — — — 
淨定期退休金費用（利益）$5 $4 $12 $12 

備註 8： 股票報酬

公司根據ASC 718規定會計股票薪酬計劃，該規定要求使用基於公平價值的方法來衡量股票薪酬的價值。公平價值是在授予日期衡量，通常不會為後續變化進行調整。公司的股票薪酬計劃包括股票升值權、限制性股票單位和績效股份單位。 報酬 - 股本酬勞，要求根據ASC 718準則進行股票薪酬的會計處理。該準則要求使用基於公正價值的方法計量股票薪酬的價值。公正價值是在授予日期進行衡量，通常不會因後續變化而進行調整。公司的股票薪酬計劃包括股票升值權、限制性股票單位和績效股票單位。
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目錄             

基於股票的薪酬費用，已扣除預估的放棄，包含在 產品成本, 銷售、一般及行政 和 研發 於隨附的未經審核簡明綜合損益表中。

根據獎勵類型，股本獎勵成本如下：

截至九月三十日止三個月截至九月三十日止九個月
（以百萬計）2024202320242023
股權補償成本 - 股權結算$28 $23 $76 $63 
股權補償成本 - 現金結算 (1)
2 1 3 3 
總股份補償費用$30 $24 $79 $66 
持續經營中記錄的金額$27 $22 $68 $58 
停業業務中記錄的金額3 2 11 8 
總股份補償費用$30 $24 $79 $66 
(1) 現金結算獎勵被歸類為負債獎勵，並在每個資產負債表日進行公平值衡量。

注意 9: 產品保證

在一般業務中，本公司為其產品提供標準保固保障。這些金額的補償是在銷售時制定，並主要根據產品保固條款和歷史索償經驗進行估算。此外，本公司因特定產品性能問題而產品服務承擔全權支出。有關這些金額的備款是在已知及可估算的情況下訂立。本公司會評估其初始保障是否足夠，並會根據已知或預期的索賠，或隨著新的資料顯示未來成本可能與預計金額有可能不同，進行調整。與這些抵押相關的金額在附帶的未經審核簡合併資產負債表中分類為 累計負債 或者 其他長期負債 根據預期結算日期。

保固相關準備金攤銷金額的變動如下：

截至九月三十日止九個月
（以百萬計）20242023
截至1月1日的結餘。$568 $544 
保固、履約保證發出及估計負債變動。229 188 
已支付的款項。(211)(146)
其他5 (14)
收購 (1)
202 — 
截至9月30日的結餘。$793 $572 
(1) 請參見附註15 - 收購以獲取更多信息。
註10： 權益

Carrier普通股授權股數為 4,000,000,000 元面值普通股的股份。截至 0.01 面額。截至2024年9月30日和2023年12月31日 947,450,955 和 883,068,393 分別發行了普通股，其中包括 49,659,143 和 43,490,981 分別的庫藏股。

股份回購計劃

公司可能不時按市場情況和公司自行決定的條件收回其優質普通股。回購是在公開市場或通過一個或多個其他公開或私人交易中進行的
18
目錄             
根據符合《10b5-1規則》和《交易所法案》第100億18條的計畫進行。購入的股份按成本核算並單獨列示在資產負債表上，作為一項減除。 權益自2021年2月首次授權以來，公司董事會授權回購多達$4.1 億公司優先股。

截至2023年12月31日，公司回購了 43.5百萬股普通股，總購買價為2.0 億美元，包括在加速股份回購協議下回購的股份。因此，截至2023年12月31日，公司尚有約2.1 億美元授權下剩餘的購股資金。

截至2024年9月30日止的九個月內，公司回購了 6.2 百萬股普通股，總購買價為$0.4 十億美元。因此，截至2024年9月30日，公司在目前授權下還剩下約1.7 十億美元。此外，公司董事會在2024年10月批准了對現有股份回購計劃的增加3十億美元。

累積其他全面收益（損失）

元件變更摘要如下 其他綜合損益（損失）累積額 截至2024年9月30日止三個月和九個月的其他變更摘要如下:

（以百萬計）外幣兌換確定福利退休計劃和養老計劃未實現對沖收益（損失）累積其他全面收益（損失）
截至2023年12月31日之餘額$(1,444)$(100)$58 $(1,486)
其他全面收益（損失）重新分類前，淨額(385)— — (385)
重新分類金額，稅前— — (1)(1)
截至2024年3月31日的餘額$(1,829)$(100)$57 $(1,872)
除一般報表盈餘（虧損）再分類前之淨金額(187)— — (187)
再分類金額（稅前）— 1 (1)— 
出售資產（淨額）373 — — 373 
截至2024年6月30日的餘額$(1,643)$(99)$56 $(1,686)
除一般報表盈餘（虧損）再分類前之淨金額669 — — 669 
再分類金額（稅前）— 2 (1)1 
重新分類之稅前支出（收益）— (1)— (1)
出售，扣除净额215 — — 215 
截至2024年9月30日的結餘$(759)$(98)$55 $(802)

元件變更摘要如下 其他綜合損益（損失）累積額 截至2023年9月30日結束的三個月和九個月的資料如下：

（以百萬計）外幣兌換確定福利退休金和養老計劃未實現套期保值收益（損失）累積其他全面收益（損失）
截至2022年12月31日的资产负债表$(1,604)$(84)$— $(1,688)
其他全面收益（損失），在重新分類之前，淨額52 — — 52 
截至2023年3月31日之結餘$(1,552)$(84)$— $(1,636)
其他綜合收益（損失），重新分類前，淨額(55)— — (55)
截至2023年6月30日的結餘$(1,607)$(84)$— $(1,691)
其他綜合收益（損失），重新分類前，淨額(245)— 80 (165)
2023年9月30日的結餘$(1,852)$(84)$80 $(1,856)

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註11: 營業收入認定

本公司根據ASC 606確認營業收入： 客戶合同的營業收入當承諾在合約中所提供的商品或服務（即履約責任）的控制權轉移給客戶時，會確認營業收入。當客戶有能力指揮使用該商品或服務並獲得其幾乎所有的剩餘利益時，控制權就會被獲得。本公司的履約責任的大部分是在控制權轉移給客戶的那一時點上確認的，這通常是在發貨時。其餘的履約責任則是在客戶同時獲得控制權的同時確認，這是因為本公司在合約下進行工作的過程中，或者如果正在為客戶生產的產品沒有其他用途，而本公司擁有收取報酬的合約權利時。

按產品和服務分解的銷售額如下：

截至九月三十日止三個月截至九月三十日止九個月
（以百萬計）2024202320242023
銷售類型
產品$4,504 $3,533 $13,045 $10,488 
服務554 475 1,524 1,358 
HVAC銷售5,058 4,008 14,569 11,846 
產品811 808 2,434 2,453 
服務127 116 361 341 
冷藏銷售938 924 2,795 2,794 
總體細分市場銷售5,996 4,932 17,364 14,640 
過度除去與其他 (1)
(12)3 (26)(5)
營業淨收入$5,984 $4,935 $17,338 $14,635 
(1) 包括之前在安防業務部門報告的某些業務活動。

合約餘額

總合約資產和合約負債包括以下內容：

（以百萬計）九月三十日，
2024		12月31日,
2023
合同資產（包括在 其他流動資產)
$367 $306 
合同資產，非流動（包括在 其他資產)
55 26 
合同資產總額422 332 
合同負債（包含在 應計負債)
(563)(419)
合同負債，非流動部分（包含在 其他長期負債)
(162)(160)
合約負債總額 (725)(579)
凈合同資產（負債）$(303)$(247)

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營業收入的確認時機、開票和現金收款導致了合約資產和合約負債。合約資產與在根據完工百分比方法計算的帳單超過成本時，因合約完成後的條件性對價權益有關。合約負債與在合約履行之前收到的預付款項有關，或當公司擁有條件在於向客戶轉移商品或服務的對價權利時。合約負債在公司按合約履行時被認列為營業收入。

本公司於截至2024年9月30日的九個月內確認了$401 百萬美元的營業收入，這與截至2024年1月1日的合同負債有關。 本公司預計在期末大部分的合同負債將於下個期間被確認為營業收入。 12 個月。

註釋 12: 重組成本

本公司產生與重組計劃相關的成本，這些計劃旨在改善經營表現、盈利能力和運營資金水平。這些計劃所涉及的行動可能包括提高生產力、裁減人力和統合設施。由於這些單獨計劃的規模、性質和頻率，它們與本公司持續的生產力行動根本上不同。

公司記錄了新進及持續重組計畫的淨稅前重組成本如下：

截至九月三十日止三個月截至九月三十日止九個月
（以百萬計）2024202320242023
暖通空調$54 $25 $86 $27 
冷藏4 4 5 14 
總分segment58 29 91 41 
一般企業支出2 — 6 2 
總重組成本 (1)
$60 $29 $97 $43 
銷售成本$15 $4 $36 $10 
銷售、一般及行政45 25 61 33 
總重組成本 (1)
$60 $29 $97 $43 
(1) 2024年重組成本包括按期間計算的費用。

以下表格總結了重組準備金的變化，包含在 應計負債 於附帶的未經審核簡明合併資產負債表中：

截至九月三十日的九個月。
（以百萬計）20242023
截至一月一日的餘額$41 $21 
稅前淨重組成本90 43 
收購 (1)
8 — 
利用率，匯率期貨和其他(55)(24)
截至9月30日的結餘。$84 $40 
(1) 請參見附註15 - 收購以獲取更多信息。

截至2024年9月30日，公司已經發行了$84 百萬美元用於與宣布的重組倡議相關的成本。餘額與費用減少措施相關，主要是與公司各部門的解雇相關，以及與公司計劃的投資組合轉型相關的儲備。公司預計大部分餘額將在一年內使用。

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備註13: 所得稅

The Company accounts for income tax expense in accordance with ASC 740, Income Taxes ("ASC 740"), which requires an estimate of the annual effective income tax rate for the full year to be applied to the respective interim period, taking into account year-to-date amounts and projected results for the full year. The effective tax rate was 22.3% for the three months ended September 30, 2024 compared with 37.6% for the three months ended September 30, 2023. The year-over-year decrease was primarily driven by the absence of the non-deductible loss of $257 million on the mark-to-market valuation of the Company's window forward contracts associated with the expected cash outflows of the Euro-denominated purchase price of the VCS Business and a tax charge of $19 million related to the Company's intention to no longer permanently reinvest historical earnings from certain jurisdictions.

The effective tax rate was 21.4% for the nine months ended September 30, 2024, compared with 30.3% for the nine months ended September 30, 2023. The year-over-year decrease was primarily driven by the $368 million loss on the mark-to-market valuation of the Company's window forward contracts associated with the expected cash outflows of the Euro-denominated purchase price of the VCS Business during the nine months ended September 30, 2023. In addition, the Company recognized a tax benefit of $21 million associated with the TMA and UTC's conclusion of certain income tax matters from their 2017 and 2018 tax audit with the U.S. Internal Revenue Service ("IRS") during the nine months ended September 30, 2024.

The Company assesses the realizability of its deferred tax assets on a quarterly basis through an analysis of potential sources of future taxable income, including prior year taxable income that may be available to absorb a carryback of tax losses, reversals of existing taxable temporary differences, tax planning strategies and forecasts of taxable income. The Company considers all negative and positive evidence, including the weight of the evidence, to determine whether valuation allowances against deferred tax assets are required. The Company maintains valuation allowances against certain deferred tax assets.

The Company conducts business globally and files income tax returns in U.S. federal, state and foreign jurisdictions. In certain jurisdictions, the Company's operations were included in UTC's combined tax returns for the periods through the Distribution. The IRS has completed its audit of UTC's 2017 and 2018 tax years. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including Australia, Belgium, Canada, China, Czech Republic, France, Germany, Hong Kong, India, Italy, Mexico, the Netherlands, Singapore, the United Kingdom and the United States. The Company is no longer subject to U.S. federal income tax examination for years prior to 2020 and, with few exceptions, is no longer subject to state, local and foreign income tax examinations for tax years prior to 2013.

In the ordinary course of business, there is inherent uncertainty in quantifying the Company's income tax positions. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. The Company believes that it is reasonably possible that a net decrease in unrecognized tax benefits of $15 million to $35 million may occur within 12 months as a result of additional uncertain tax positions, the Separation, the revaluation of uncertain tax positions arising from examinations, appeals, court decisions and/or the expiration of tax statutes.

NOTE 14: EARNINGS PER SHARE

Earnings per share is computed by dividing Net earnings (loss) attributable to common shareowners by the weighted-average number of shares of common stock outstanding during the period (excluding treasury stock). Diluted earnings per share is computed by giving effect to all potentially dilutive stock awards that are outstanding. The computation of diluted earnings per share excludes the effect of the potential exercise of stock-based awards, including stock appreciation rights and stock options, when the effect of the potential exercise would be anti-dilutive.

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The following table summarizes the weighted-average number of shares of common stock outstanding for basic and diluted earnings per share calculations:

 Three Months Ended September 30,Nine Months Ended September 30,
(In millions, except per share amounts)2024202320242023
Net earnings (loss) attributable to common shareowners$447 $357 $3,053 $929 
Basic weighted-average number of shares outstanding901.2 838.7 900.9 836.6 
Stock awards and equity units (share equivalent)13.8 16.0 13.5 16.1 
Diluted weighted-average number of shares outstanding915.0 854.7 914.4 852.7 
Antidilutive shares excluded from computation of diluted earnings per share2.0 2.0 2.0 1.9 

NOTE 15: ACQUISITIONS

Acquisitions are recorded using the acquisition method of accounting in accordance with ASC 805, Business Combinations. As a result, the aggregate purchase price has been allocated to assets acquired and liabilities assumed based on the estimate of fair market value of such assets and liabilities at the date of acquisition.

Viessmann Climate Solutions

On January 2, 2024, the Company completed the acquisition of the VCS Business from Viessmann for total consideration of $14.2 billion. The purchase price consisted of (i) $11.2 billion in cash and (ii) 58,608,959 shares of the Company's common stock, subject to certain lock-up provisions and anti-dilution protection. The Company funded the cash portion of the purchase price with a combination of cash on hand, net proceeds from the USD Notes and Euro Notes and borrowings under the Delayed Draw Facility and the 60-day Loan.

The VCS Business develops intelligent, integrated and sustainable technologies, including heat pumps, boilers, photovoltaic systems, home battery storage and digital solutions, primarily for residential customers in Europe. The Company believes that secular trends in these areas will drive significant, sustained future growth. In addition, the Company anticipates realizing significant operational synergies including savings through supplier rationalization and leverage, reduced manufacturing costs and lower general and administrative costs. Longer term, the Company expects to benefit from synergies related to service revenue expansion, leverage of distribution channels and cross-selling opportunities.

The components of the purchase price are as follows:

(In millions)January 2, 2024
Cash$11,156 
Common shares (58,608,959 shares at $51.20 per share)
3,001 
Total consideration$14,157 

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The preliminary allocation of the purchase price is as follows:

(In millions)Preliminary January 2, 2024Measurement Period AdjustmentsAs Adjusted January 2, 2024
Cash and cash equivalents$394 $(1)$393 
Accounts receivable408 5 413 
Inventories948 (28)920 
Other current assets17 — 17 
Fixed assets913 6 919 
Intangible assets6,640 5 6,645 
Other assets284 15 299 
Accounts payable(288)(2)(290)
Other liabilities, current(626)(8)(634)
Future income tax obligations(1,825)6 (1,819)
Other liabilities(284)(15)(299)
Total identifiable net assets6,581 (17)6,564 
Goodwill7,576 17 7,593 
Total consideration$14,157 $— $14,157 

The excess purchase price over the estimated fair value of the net identifiable assets acquired was recognized as goodwill and totaled $7.6 billion, which is not deductible for tax purposes. Accounts receivable and current liabilities were stated at their historical carrying value, which approximates fair value given the short-term nature of these assets and liabilities. The estimate of fair value for inventory and fixed assets was based on an assessment of the acquired assets' condition as well as an evaluation of the current market value of such assets.

The Company recorded intangible assets based on its estimate of fair value which consisted of the following:

(In millions)Estimated Useful Life (in years)Intangible Assets Acquired
Customer relationships17$4,787 
Technology
10 - 20
1,051 
Trademark40679 
Backlog1123 
Other505 
Total intangible assets acquired$6,645 

The valuation of intangible assets was determined using an income approach methodology including the multi-period excess earnings method and the relief from royalty method. Key assumptions used in estimating future cash flows included projected revenue growth rates, EBITDA margins, discount rates, customer attrition rates and royalty rates among others. The projected future cash flows are discounted to present value using an appropriate discount rate. As of September 30, 2024, the Company is substantially complete with the process of allocating the purchase price and valuing the acquired assets and liabilities assumed except for certain amounts associated with tax-related assets.

During the three and nine months ended September 30, 2024, the Company incurred $3 million and $40 million of acquisition-related costs, respectively. During 2023, $80 million of acquisition-related costs were incurred, of which $19 million and $39 million were recognized during the three and nine months ended September 30, 2023, respectively. These acquisition costs are reflected within Selling, general and administrative in the Unaudited Condensed Consolidated Statement of Operations.
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The assets, liabilities and results of operations of the VCS Business are consolidated in the accompanying Unaudited Condensed Consolidated Financial Statements as of the date of acquisition and reported within the Company's HVAC segment.

The following table summarizes the results of the VCS Business since the date of acquisition:

(In millions)Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
Net sales$806 $2,425 
Net earnings (loss)(72)(305)

The financial results of the VCS Business includes amortization of the step-up to fair value of inventory and backlog as well as intangible amortization totaling $170 million and $667 million for the three and nine months ended September 30, 2024, respectively.

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information is presented to illustrate the estimated effects of the acquisition of the VCS Business as if the business combination had occurred on January 1, 2023:

 Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
Net sales$5,984 $5,898 $17,338 $17,838 
Net earnings (loss)578 (44)1,382 207 

The pro forma amounts include the historical operating results of the Company and the VCS Business prior to the acquisition, with adjustments directly attributable to the acquisition including amortization of the step-up to fair value of inventory and amortization expense of acquired intangible assets. The unaudited pro forma financial information is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition of the VCS Business been consummated as of the dates indicated, nor is it indicative of any future results. In addition, the unaudited pro forma financial information does not reflect the expected realization of any synergies or cost savings associated with the acquisition.

NOTE 16: DIVESTITURES

Discontinued Operations

In 2023, the Company announced plans to exit its Fire & Security and Commercial Refrigeration businesses over the course of 2024. The announced plan to exit the Fire & Security segment represents a single disposal plan to separately divest multiple businesses over different reporting periods. Upon the CRF Business qualifying as held for sale during the three months ended September 30, 2024, the components of the Fire & Security segment in aggregate met the criteria to be presented as discontinued operations in the accompanying Unaudited Condensed Consolidated Statement of Operations and Unaudited Condensed Consolidated Statement of Cash Flows. In addition, the assets and liabilities of the CRF Business have been reclassified to held for sale at December 31, 2023. The results of the CCR business did not meet the criteria to be presented in discontinued operations.

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The components of Discontinued operations, net of tax are as follows:

 Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
Net sales$475 $796 $1,992 $2,361 
Costs of sales(285)(466)(1,179)(1,457)
Research and development(16)(31)(75)(92)
Selling, general and administrative(115)(167)(479)(466)
Other income (expense), net(593)7 (592)19 
Gain (loss) on divestitures and deconsolidation509 (4)3,390 (297)
Interest (expense) income, net(5)(12)(39)(38)
Earnings before income taxes(30)123 3,018 30 
Income tax (expense) benefit112 (37)154 (76)
Tax on divestitures and deconsolidation(199)1 (1,275)5 
Discontinued operations, net of tax
$(117)$87 $1,897 $(41)

Portfolio transformation

On December 12, 2023, the Company entered into a stock purchase agreement to sell the CCR business to Haier Group Corporation for an enterprise value of approximately $775 million. CCR, historically reported in the Company's Refrigeration segment, is a global supplier of turnkey solutions for commercial refrigeration systems and services, with a primary focus on serving food retail customers, cold storage facilities and warehouses. As a result, the assets and liabilities of CCR are presented as held for sale in the accompanying Unaudited Condensed Consolidated Balance Sheet as of September 30, 2024 and December 31, 2023, and recorded at the lower of their carrying value or fair value less estimated cost to sell. The sale of CCR was completed on October 1, 2024.

On August 15, 2024, the Company entered into a stock purchase agreement to sell the CRF Business to an affiliate of Lone Star Funds for an enterprise value of approximately $3.0 billion. The CRF Business, historically reported in the Company's Fire & Security segment, is a leading manufacturer of fire detection and alarm solutions for both commercial and residential applications. As a result, the assets and liabilities of the CRF Business are presented as held for sale in the accompanying Unaudited Condensed Consolidated Balance Sheet as of September 30, 2024 and December 31, 2023, and recorded at the lower of their carrying value or fair value less estimated cost to sell. The transaction is expected to close by the end of 2024 and is subject to regulatory approvals and customary closing conditions.

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The following tables summarize assets and liabilities classified as held for sale:

September 30, 2024
(In millions)Commercial
 Refrigeration		Commercial & Residential FireTotal
Cash and cash equivalents$141 $143 $284 
Accounts receivable, net222 414 636 
Inventories, net96 426 522 
Other current assets157 27 184 
Fixed assets, net100 127 227 
Intangible assets, net— 80 80 
Goodwill72 472 544 
Operating lease right-of-use assets58 76 134 
Other assets46 23 69 
Total assets held for sale$892 $1,788 $2,680 
Accounts payable$133 $279 $412 
Accrued liabilities181 280 461 
Long-term debt, including current portion7 — 7 
Future pension and post-retirement obligations204 5 209 
Future income tax obligations6 15 21 
Operating lease liabilities40 55 95 
Other long-term liabilities2 14 16 
Total liabilities held for sale$573 $648 $1,221 

December 31, 2023
(In millions)Commercial
 Refrigeration		Access
Solutions		Industrial
Fire		Commercial & Residential FireTotal
Cash and cash equivalents$131 $6 $20 $163 $320 
Accounts receivable, net274 104 101 401 880 
Inventories, net84 31 65 394 574 
Other current assets113 5 46 25 189 
Fixed assets, net78 13 22 133 246 
Intangible assets, net— 53 2 83 138 
Goodwill72 1,498 439 469 2,478 
Operating lease right-of-use assets49 13 28 70 160 
Other assets44 10 13 41 108 
Total assets held for sale$845 $1,733 $736 $1,779 $5,093 
Accounts payable$129 $20 $39 $259 $447 
Accrued liabilities204 74 77 239 594 
Long-term debt, including current portion8 — — — 8 
Future pension and post-retirement obligations203 — 1 6 210 
Future income tax obligations4 2 3 12 21 
Operating lease liabilities40 11 23 58 132 
Other long-term liabilities3 12 9 14 38 
Total liabilities held for sale$591 $119 $152 $588 $1,450 

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On June 2, 2024, the Company completed the sale of Access Solutions for cash proceeds of $5.0 billion. Access Solutions, historically reported in the Company's Fire & Security segment, is a global supplier of physical security and digital access solutions supporting the hospitality, commercial, education and military markets. The Company recognized a net gain on the sale of $1.8 billion, which is included in Discontinued operations, net of tax on the accompanying Unaudited Condensed Consolidated Statement of Operations. The net proceeds received are subject to working capital and other adjustments provided in the stock purchase agreement governing the sale of Access Solutions.

On July 1, 2024, the Company completed the sale of Industrial Fire for cash proceeds of $1.4 billion. Industrial Fire, historically reported in the Company's Fire & Security segment, is a leading manufacturer of a full spectrum of fire detection and suppression solutions and services in critical high-hazard environments, including oil and gas, power generation, marine and offshore facilities, automotive, data centers and aircraft hangars. The Company recognized a net gain on the sale of $310 million, which is included in Discontinued operations, net of tax on the accompanying Unaudited Condensed Consolidated Statement of Operations. The net proceeds received are subject to working capital and other adjustments provided in the stock purchase agreement governing the sale of Industrial Fire.

The following table summarizes the assets and liabilities divested as of their respective dates of sale:

(In millions)Access
Solutions		Industrial
Fire
Cash and cash equivalents$82 $40 
Accounts receivable, net90 93 
Inventories, net43 73 
Other current assets6 55 
Fixed assets, net18 24 
Intangible assets, net53 2 
Goodwill1,467 452 
Operating lease right-of-use assets16 24 
Other assets8 2 
Total assets held for sale$1,783 $765 
Accounts payable$54 $43 
Accrued liabilities80 65 
Operating lease liabilities17 24 
Other long-term liabilities10 6 
Total liabilities held for sale$161 $138 

NOTE 17: SEGMENT FINANCIAL DATA

The Company conducts its operations through two reportable operating segments: HVAC and Refrigeration. In accordance with ASC 280 - Segment Reporting, the Company's segments maintain separate financial information for which results of operations are evaluated on a regular basis by the Company's Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance.

•The HVAC segment provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers while enhancing building performance, health, energy efficiency and sustainability.

•The Refrigeration segment includes transport refrigeration and monitoring products, services and digital solutions for trucks, trailers, shipping containers, intermodal and rail, as well as commercial refrigeration products.

The Company's customers are in both the public and private sectors and its businesses reflect extensive geographic diversification. Inter-company sales between segments are immaterial.

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Due to the Company's ongoing portfolio transformation, certain business activities previously reported within the Fire & Security segment no longer meet the criteria of a reportable segment. As a result, these business activities have been included in Eliminations and other in the following tables.

Net sales and Operating profit by segment are as follows:

Net SalesOperating Profit
 Three Months Ended September 30, Three Months Ended September 30,
(In millions)2024202320242023
HVAC$5,058 $4,008 $741 $763 
Refrigeration938 924 109 107 
Total segment5,996 4,932 850 870 
Eliminations and other(12)3 (25)(252)
General corporate expenses— — (62)(108)
Total Consolidated$5,984 $4,935 $763 $510 

Net SalesOperating Profit
Nine Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
HVAC$14,569 $11,846 $1,857 $1,940 
Refrigeration2,795 2,794 319 327 
Total segment17,364 14,640 2,176 2,267 
Eliminations and other(26)(5)(84)(399)
General corporate expenses— — (220)(247)
Total Consolidated$17,338 $14,635 $1,872 $1,621 

Geographic external sales are attributed to the geographic regions based on their location of origin. With the exception of the U.S. presented in the table below, there were no individually significant countries with sales exceeding 10% of total sales during the three and nine months ended September 30, 2024 and 2023.

 Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
United States $3,154 $2,882 $8,778 $8,256 
International:
Europe1,723 934 5,152 2,923 
Asia Pacific923 954 2,886 2,986 
Other184 165 522 470 
Net sales$5,984 $4,935 $17,338 $14,635 

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Table of Contents
NOTE 18: RELATED PARTIES

Equity Method Investments

The Company sells products to and purchases products from unconsolidated entities accounted for under the equity method and, therefore, these entities are considered to be related parties. Amounts attributable to equity method investees are as follows:

 Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
Sales to equity method investees included in Product sales
$774 $730 $2,329 $2,371 
Purchases from equity method investees included in Cost of products sold
$64 $57 $178 $159 

The Company had receivables from and payables to equity method investees as follows:

(In millions)September 30,
2024		December 31,
2023
Receivables from equity method investees included in Accounts receivable, net
$287 $231 
Payables to equity method investees included in Accounts payable
$47 $44 

NOTE 19: COMMITMENTS AND CONTINGENT LIABILITIES

The Company is involved in various litigation, claims and administrative proceedings, including those related to environmental (including asbestos) and legal matters. In accordance with ASC 450, Contingencies, the Company records accruals for loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These accruals are generally based upon a range of possible outcomes. If no amount within the range is a better estimate than any other, the Company accrues the minimum amount. In addition, these estimates are reviewed periodically and adjusted to reflect additional information when it becomes available. The Company is unable to predict the final outcome of the following matters based on the information currently available, except as otherwise noted. However, the Company does not believe that the resolution of any of these matters will have a material adverse effect upon its results of operations or financial condition.

Environmental Matters

The Company’s operations are subject to environmental regulation by various authorities. The Company has accrued for the costs of environmental remediation activities, including but not limited to investigatory, remediation, operating and maintenance costs and performance guarantees. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to individual sites, including the technology required to remediate, current laws and regulations and prior remediation experience.

The outstanding liabilities for environmental obligations are as follows:

(In millions)September 30,
2024		December 31,
2023
Environmental reserves included in Accrued liabilities
$11 $19 
Environmental reserves included in Other long-term liabilities
202 199 
Total Environmental reserves$213 $218 

For sites with multiple responsible parties, the Company considers its likely proportionate share of the anticipated remediation costs and the ability of other parties to fulfill their obligations in establishing a provision for these costs. Accrued environmental liabilities are not reduced by potential insurance reimbursements and are undiscounted.

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Asbestos Matters

The Company has been named as a defendant in lawsuits alleging personal injury as a result of exposure to asbestos allegedly integrated into certain Carrier products or business premises. While the Company has never manufactured asbestos and no longer incorporates it into any currently-manufactured products, certain products that the Company no longer manufactures contained components incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or have been covered in full or in part by insurance or other forms of indemnity. Additional cases were litigated and settled without any insurance reimbursement. The amounts involved in asbestos-related claims were not material individually or in the aggregate in any period.

The Company's asbestos liabilities and related insurance recoveries are as follows:

(In millions)September 30,
2024		December 31,
2023
Asbestos liabilities included in Accrued liabilities
$17 $15 
Asbestos liabilities included in Other long-term liabilities
208 206 
Total Asbestos liabilities$225 $221 
Asbestos-related recoveries included in Other current assets
$7 $5 
Asbestos-related recoveries included in Other assets
88 88 
Total Asbestos-related recoveries$95 $93 

The amounts recorded for asbestos-related liabilities are based on currently available information and assumptions that the Company believes are reasonable and are made with input from outside actuarial experts. These amounts are undiscounted and exclude the Company’s legal fees to defend the asbestos claims, which are expensed as incurred. In addition, the Company has recorded insurance recovery receivables for probable asbestos-related recoveries.

Aqueous Film Forming Foam Litigation

As of September 30, 2024, the Company, Kidde-Fenwal, Inc. ("KFI") and others have been named as defendants in more than 8,000 lawsuits filed in United States state or federal courts and a single case in Canada alleging that the historic use of Aqueous Film Forming Foam ("AFFF") caused personal injuries and damage to property and water supplies. In December 2018, the U.S. Judicial Panel on Multidistrict Litigation transferred and consolidated all AFFF cases pending in the U.S. federal courts against the Company, KFI and others to the U.S. District Court for the District of South Carolina (the "MDL Proceedings"). Individual plaintiffs in the MDL Proceedings generally seek damages for alleged personal injuries, medical monitoring, diminution in property value and injunctive relief to remediate alleged contamination of water supplies. U.S. state, municipal and water utility plaintiffs in the MDL Proceedings generally seek damages and costs related to the remediation of public property and water supplies.

AFFF is a firefighting foam, developed beginning in the late 1960s pursuant to U.S. military specification, used to extinguish certain types of hydrocarbon-fueled fires. The lawsuits identified above relate to Kidde Fire Fighting, Inc., which owned the “National Foam” business that manufactured AFFF for sale to government (including the U.S. federal government) and non-government customers in the U.S. at a single facility located in West Chester, Pennsylvania (the "Pennsylvania Site"). Kidde Fire Fighting, Inc. was acquired by a UTC subsidiary in 2005 and merged into KFI in 2007. In 2013, KFI divested the AFFF businesses to an unrelated third party. The Company acquired KFI as part of the Separation in April 2020.

The key components that contribute to AFFF's fire-extinguishing capabilities are known as fluorosurfactants. Neither the Company, nor KFI, nor any of the Company's subsidiaries involved in the AFFF litigation manufactured fluorosurfactants. Instead, the National Foam business purchased these substances from unrelated third parties for use in manufacturing AFFF. Plaintiffs in the MDL Proceedings allege that the fluorosurfactants used by various manufacturers in producing AFFF contained, or over time degraded into, compounds known as per- and polyfluoroalkyl substances (referred to collectively as "PFAS"), including perflourooctanesulfonic acid ("PFOS") and perflourooctanoic acid ("PFOA"). Plaintiffs further allege that, as a result of the use of AFFF, PFOS and PFOA were released into the environment and, in some instances, ultimately reached drinking water supplies.

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Plaintiffs in the MDL Proceedings have named multiple defendants, including suppliers of chemicals and raw materials used to manufacture fluorosurfactants, fluorosurfactant manufacturers and AFFF manufacturers. The defendants in the MDL Proceedings moved for summary judgment on the government contractor defense, which potentially applies to AFFF sold to or used by the U.S. government. After full briefing and oral argument, on September 16, 2022, the MDL court declined to enter summary judgment for the defendants. The defense, however, remains available at any trial in which it would apply.

On May 14, 2023, KFI filed a voluntary petition with the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) seeking relief under chapter 11 of the Bankruptcy Code, after the Company determined that it would not provide financial support to KFI going forward other than ensuring KFI has access to services necessary for the effective operation of its business. As a result, all litigation against KFI was automatically stayed. By agreement, all AFFF-related litigation against the Company, its other subsidiaries and RTX also was stayed. On November 21, 2023, the Bankruptcy Court ordered certain parties, including the Company, to participate in mediation sessions with respect to claims that might be asserted by and against it in the bankruptcy proceedings.

Following the conclusion of these mediation sessions in October 2024, the Company entered into a Settlement and Plan Support Agreement which contemplates that the Company will subsequently enter into three distinct settlement agreements (collectively, the “Proposed Settlement Agreements”) with KFI, the Official Committee of Unsecured Creditors appointed in KFI’s bankruptcy case (the “Committee”) and the Plaintiffs’ Executive Committee (the “MDL PEC”) appointed in the MDL Proceedings.

The first of the Proposed Settlement Agreements relates to claims that the Company is responsible for liabilities arising from KFI’s manufacture or sale of AFFF (“Estate Claims Settlement”). Upon Bankruptcy Court approval, the Estate Claims Settlement will permanently resolve all present and future claims that the Company is responsible for any liabilities of KFI, including all liabilities arising from KFI’s manufacture and sale of AFFF. The second and third of the Proposed Settlement Agreements release a very substantial amount of current and future direct claims against the Company (the “Direct Claims Settlements”). Direct claims allege that UTC, which indirectly owned KFI’s AFFF business for eight years, engaged in conduct independent of KFI that caused harm to AFFF claimants. The Company agreed to indemnify UTC for these direct claims when it was spun-off from UTC. Upon approval by the MDL Court, the Direct Claims Settlements resolve and enjoin all current and future AFFF-related direct claims against the Company by participating public water providers and airports. Non-settling parties may still assert direct AFFF-related claims, although we expect a vast majority of public water providers and airports will participate in the Direct Claims Settlements.

As part of the Proposed Settlement Agreements, the Company will pay $615 million in cash over five years, 100% of the net sale proceeds from the sale of KFI’s assets from its sale to Pacific Avenue Capital Partners, which are estimated to be $115 million, and contribute the right to recover proceeds under certain of its insurance policies. The Company will be entitled to receive up to $2.4 billion of proceeds from those insurance policies and will contribute the first $125 million of such proceeds as additional consideration in the Direct Claims Settlements. The Company also will be entitled to any earnouts payable to KFI under the KFI sale agreement. The Company expects insurance payments it receives in the future, in the aggregate, to cover the amount paid under the Proposed Settlement Agreements. As a result of the Proposed Settlement Agreements, the Company recorded a liability in the amount of $565 million during the three months ended September 30, 2024. The amount recognized is in addition to liabilities of $50 million that the Company recorded upon the deconsolidation of KFI on May 14, 2023, as further discussed below. As of September 30, 2024, the Company has not recorded any amounts associated with expected insurance proceeds.

The Company and KFI believe that they have meritorious defenses to the remaining AFFF claims. Given the numerous factual, scientific and legal issues to be resolved relating to these claims, the Company is unable to assess the probability of liability or to reasonably estimate a range of possible loss at this time. There can be no assurance that any such future exposure will not be material in any period.

Deconsolidation Due to Bankruptcy

As of May 14, 2023, the Company no longer controlled KFI as its activities are subject to review and oversight by the Bankruptcy Court. Therefore, KFI was deconsolidated and its respective assets and liabilities were derecognized from the Company’s Unaudited Condensed Consolidated Financial Statements. Upon deconsolidation, the Company determined the fair value of its retained interest in KFI to be zero and we accounted for it prospectively using the cost method. As a result of these actions, the Company recognized a loss of $297 million in its Unaudited Condensed Consolidated Statement of Operations
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within within Other income/(expense), net. In addition, the deconsolidation resulted in an investing cash outflow of $134 million in the Company's Unaudited Condensed Consolidated Statement of Cash Flows.

In connection with the bankruptcy filing, KFI entered into several agreements with subsidiaries of the Company to ensure they have access to services necessary for the effective operation of their business. All post-deconsolidation activity between the Company and KFI are reported as third-party transactions recorded within the Company's Unaudited Condensed Consolidated Statement of Operations. Since the petition date, there were no material transactions between the Company and KFI other than a $15 million payment by the Company to KFI under the terms of a tax sharing arrangement.

Income Taxes

Under the TMA relating to the Separation, the Company is responsible to UTC for its share of the Tax Cuts and Jobs Act transition tax associated with foreign undistributed earnings as of December 31, 2017. During the nine months ended September 30, 2024, the Company recognized a $46 million gain associated with the TMA and UTC's conclusion of certain income tax matters from their 2017 and 2018 tax audit with the IRS. Liabilities under the TMA of $118 million and $108 million are included within the accompanying Unaudited Condensed Consolidated Balance Sheet within Accrued Liabilities and Other Long-Term Liabilities as of September 30, 2024, respectively. This obligation is expected to be settled in annual installments with the next installment of $118 million due in April 2025 and the final installment of $108 million due in April 2026. The Company believes that the likelihood of incurring losses materially in excess of this amount is remote.

Other

The Company has other commitments and contingent liabilities related to legal proceedings, self-insurance programs and matters arising in the ordinary course of business. The Company accrues for contingencies generally based upon a range of possible outcomes. If no amount within the range is a better estimate than any other, the Company accrues the minimum amount.

In the ordinary course of business, the Company is also routinely a defendant in, party to or otherwise subject to many pending and threatened legal actions, claims, disputes and proceedings. These matters are often based on alleged violations of contract, product liability, warranty, regulatory, environmental, health and safety, employment, intellectual property, tax and other laws. In some of these proceedings, claims for substantial monetary damages are asserted against the Company and could result in fines, penalties, compensatory or treble damages or non-monetary relief. The Company does not believe that these matters will have a material adverse effect upon its results of operations, cash flows or financial condition.

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With respect to the accompanying Unaudited Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2024 and 2023, PricewaterhouseCoopers LLP ("PricewaterhouseCoopers") reported that it has applied limited procedures in accordance with professional standards for a review of such information. However, its report dated October 25, 2024, appearing below, states that the firm did not audit and does not express an opinion on the accompanying Unaudited Condensed Consolidated Financial Statements. PricewaterhouseCoopers has not carried out any significant or additional audit tests beyond those that would have been necessary if their report had not been included. Accordingly, the degree of reliance on its report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers is not subject to the liability provisions of Section 11 of the Securities Act of 1933, as amended (the "Securities Act"), for its report on the accompanying Unaudited Condensed Consolidated Financial Statements because that report is not a "report" or a "part" of a registration statement prepared or certified by PricewaterhouseCoopers within the meaning of Sections 7 and 11 of the Securities Act.

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareowners of Carrier Global Corporation

Results of Review of Interim Financial Information

We have reviewed the accompanying condensed consolidated balance sheet of Carrier Global Corporation and its subsidiaries (the “Company”) as of September 30, 2024, and the related condensed consolidated statements of operations, of comprehensive income (loss), and of changes in equity for the three-month and nine-month periods ended September 30, 2024 and 2023 and the condensed consolidated statement of cash flows for the nine-month periods ended September 30, 2024 and 2023, including the related notes (collectively referred to as the “interim financial information”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of the Company as of December 31, 2023, and the related consolidated statements of operations, of comprehensive income (loss), of changes in equity and of cash flows for the year then ended (not presented herein), and in our report dated February 6, 2024, we expressed an unqualified opinion on those consolidated financial statements. As discussed in Note 16 to the accompanying condensed consolidated interim financial information, the Company has reflected the effects of discontinued operations. The accompanying December 31, 2023 condensed consolidated balance sheet reflects this change.

Basis for Review Results

This interim financial information is the responsibility of the Company’s management. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ PricewaterhouseCoopers LLP

Miami, Florida
October 25, 2024
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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

BUSINESS OVERVIEW

Business Summary

Carrier Global Corporation ("we" or "our") is a global leader in intelligent climate and energy solutions with a focus on providing differentiated, digitally-enabled lifecycle solutions to our customers. Our portfolio includes industry-leading brands such as Carrier, Viessmann, Toshiba, Automated Logic and Carrier Transicold that offer innovative heating, ventilating and air conditioning ("HVAC"), refrigeration, and cold chain transportation solutions to help make the world safer and more comfortable. We also provide a broad array of related building services, including audit, design, installation, system integration, repair, maintenance and monitoring. Our operations are classified into two segments: HVAC and Refrigeration.

Our worldwide operations are affected by global and regional industrial, economic and political factors and trends. These include the mega-trends of urbanization, climate change and increasing requirements for food safety driven by the food needs of the growing global population and the rising standards of living in emerging markets. We believe that our business segments are well positioned to benefit from favorable secular trends, including these mega-trends and from the strength of our industry-leading brands and track record of innovation. In addition, we regularly review our end markets to proactively identify trends and adapt our strategies accordingly.

Our business is also affected by changes in the general level of economic activity, such as changes in business and consumer spending, construction and shipping activity as well as short-term economic factors such as currency fluctuations, commodity price volatility and supply disruptions. We continue to invest in our business, take pricing actions to mitigate supply chain and inflationary pressures, develop new products and services in order to remain competitive in our markets and use risk management strategies to mitigate various exposures. We believe that we have industry-leading global brands, which form the foundation of our business strategy. Coupled with our focus on growth, innovation and operational efficiency, we expect to drive long-term future growth and increased value for our shareowners.

Recent Developments

Acquisition of Viessmann Climate Solutions

On April 25, 2023, we announced that we entered into a Share Purchase Agreement (the “Agreement”) to acquire the climate solutions business (the "VCS Business") of Viessmann Group GmbH & Co. KG (“Viessmann”), a privately-held company. The VCS Business develops intelligent, integrated and sustainable technologies, including heat pumps, boilers, photovoltaic systems, home battery storage and digital solutions, primarily for residential customers in Europe. The acquisition was completed on January 2, 2024. As a result, the assets, liabilities and results of operations of the VCS Business are consolidated in the accompanying Unaudited Condensed Consolidated Financial Statements as of the date of acquisition and reported within our HVAC segment.

Portfolio Transformation

On June 2, 2024, we completed the sale of our Access Solutions business ("Access Solutions") to Honeywell International Inc. ("Honeywell") for cash proceeds of $5.0 billion. Access Solutions, historically reported in our Fire & Security segment, is a global supplier of physical security and digital access solutions supporting the hospitality, commercial, education and military markets. We recognized a net gain on the sale of $1.8 billion, which is included in Discontinued operations, net of tax on the accompanying Unaudited Condensed Consolidated Statement of Operations. The net proceeds received are subject to working capital and other adjustments provided in the stock purchase agreement.

On July 1, 2024, we completed the sale of our Industrial Fire business ("Industrial Fire") for cash proceeds of $1.4 billion. Industrial Fire, historically reported in our Fire & Security segment, is a leading manufacturer of a full spectrum of fire detection and suppression solutions and services in critical high-hazard environments, including oil and gas, power generation, marine and offshore facilities, automotive, data centers and aircraft hangars. We recognized a net gain on the sale of $310 million, which is included in Discontinued operations, net of tax on the accompanying Unaudited Condensed Consolidated
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Statement of Operations. The net proceeds received are subject to working capital and other adjustments provided in the stock purchase agreement governing the sale of Industrial Fire.

On December 12, 2023, we entered into a stock purchase agreement to sell our Commercial Refrigeration business ("CCR") to Haier Group Corporation for an enterprise value of approximately $775 million. CCR, historically reported in our Refrigeration segment, is a global supplier of turnkey solutions for commercial refrigeration systems and services, with a primary focus on serving food retail customers, cold storage facilities and warehouses. The sale of CCR was completed on October 1, 2024.

On August 15, 2024, we entered into a stock purchase agreement to sell our Commercial and Residential Fire business (“CRF Business") to an affiliate of Lone Star Funds for an enterprise value of approximately $3.0 billion. The CRF Business, historically reported in our Fire & Security segment, is a leading manufacturer of fire detection and alarm solutions for both commercial and residential applications. The transaction is expected to close in 2024, subject to regulatory approvals and customary closing conditions.

Discontinued Operations

In 2023, we announced plans to exit our Fire & Security and Commercial Refrigeration businesses over the course of 2024. The announced plan to exit the Fire & Security segment represents a single disposal plan to separately divest multiple businesses over different reporting periods. Upon the CRF Business qualifying as held for sale during the three months ended September 30, 2024, the components of the Fire & Security segment in aggregate met the criteria to be presented as discontinued operations. In addition, the assets and liabilities of the CRF Business have been reclassified to held for sale at December 31, 2023. The results of CCR did not meet the criteria to be presented in discontinued operations.

Deconsolidation of Kidde-Fenwal, Inc.

On May 14, 2023, Kidde-Fenwal, Inc. ("KFI"), an indirect wholly-owned subsidiary of ours, filed a petition for voluntary reorganization under Chapter 11 of the United States Bankruptcy Code ("Chapter 11") in the United States Bankruptcy Court for the District of Delaware. KFI, an industrial fire detection and suppression business historically reported in our Fire & Security segment, indicated that it intended to use the bankruptcy process to explore strategic alternatives, including the sale of KFI as a going concern. As of the petition date, KFI was deconsolidated and its respective assets and liabilities were derecognized from our Unaudited Condensed Consolidated Financial Statements.

CRITICAL ACCOUNTING ESTIMATES

Preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales and expenses. We believe that the most complex and sensitive judgments, because of their potential significance to the accompanying Unaudited Condensed Consolidated Financial Statements, result primarily from the need to make estimates about the effects of matters that are inherently uncertain. In "Management’s Discussion and Analysis of Financial Condition and Results of Operations" of our 2023 Form 10-K, we describe the significant accounting estimates and policies used in the preparation of the accompanying Unaudited Condensed Consolidated Financial Statements. Except as noted below, there have been no significant changes in our critical accounting estimates.

Business Combinations

In accordance with ASC 805, Business Combinations ("ASC 805"), acquisitions that meet the definition of a business are recorded using the acquisition method of accounting. We recognize and measure the identifiable assets acquired, liabilities assumed and any non-controlling interest as of the acquisition date at fair value. The valuation of intangible assets is determined by an income approach methodology, using assumptions such as projected future revenues, customer attrition rates, royalty rates, tax rates and discount rates. The excess, if any, of total consideration transferred in a business combination over the fair value of identifiable assets acquired, liabilities assumed and any non-controlling interest is recognized as goodwill. Costs incurred as a result of a business combination other than costs related to the issuance of debt or equity securities are recorded in the period the costs are incurred.

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RESULTS OF OPERATIONS

Three Months Ended September 30, 2024 Compared with the Three Months Ended September 30, 2023

The following represents our consolidated net sales and operating results:

 Three Months Ended September 30,
(In millions)20242023Period Change% Change
Net sales$5,984 $4,935 $1,049 21 %
Cost of products and services sold(4,307)(3,449)(858)25 %
Gross margin1,677 1,486 191 13 %
Operating expenses(914)(976)62 (6)%
Operating profit763 510 253 50 %
Non-operating income (expense), net7 (39)46 (118)%
Earnings (loss) before income taxes770 471 299 63 %
Income tax expense(172)(177)5 (3)%
Earnings (loss) from continuing operations598 294 304 103 %
Discontinued operations, net of income taxes(117)87 (204)(234)%
Net earnings (loss)481 381 100 26 %
Less: Non-controlling interest in subsidiaries' earnings from operations34 24 10 42 %
Net earnings (loss) attributable to common shareowners$447 $357 $90 25 %

Net Sales

For the three months ended September 30, 2024, Net sales were $6.0 billion, a 21% increase compared with the same period of 2023. The components of the year-over-year change were as follows:
Three Months Ended September 30, 2024
Organic4 %
Acquisitions and divestitures, net17 %
Total % change21 %

Organic sales for the three months ended September 30, 2024, increased by 4% compared with the same period of 2023. The organic increase was primarily driven by our HVAC segment due to improved end-markets in the Americas and EMEA, which more than offset reduced end-market demand in Asia. Results in our Refrigeration segment were mixed as growth in Transport refrigeration was partially offset by challenges in Commercial refrigeration end-markets. Refer to "Segment Review" below for a discussion of Net sales by segment.

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Gross Margin

For the three months ended September 30, 2024, gross margin was $1.7 billion, a 13% increase compared with the same period of 2023. The components were as follows:

 Three Months Ended September 30,
(In millions)20242023
Net sales$5,984 $4,935 
Cost of products and services sold(4,307)(3,449)
Gross margin$1,677 $1,486 
Percentage of net sales28.0 %30.1 %

Gross margin increased by $191 million compared with the three months ended September 30, 2023. The main driver of the increase related to ongoing customer demand, pricing improvements and our continued focus on productivity initiatives. Operating results associated with the VCS Business since the date of acquisition further benefited gross margin during the period. However, the results of the VCS Business included inventory step-up, backlog amortization and intangible asset amortization resulting from the recognition of acquired assets at fair value. These costs had a 220 basis point unfavorable impact on gross margin as a percentage of Net sales. As a result, gross margin as a percentage of Net sales decreased by 210 basis points compared with the same period of 2023.

Operating Expenses
For the three months ended September 30, 2024, operating expenses, including Equity method investment net earnings, were a benefit of $0.9 billion, a 6% decrease compared with the same period of 2023. The components were as follows:

 Three Months Ended September 30,
(In millions)20242023
Selling, general and administrative$(799)$(664)
Research and development(172)(126)
Equity method investment net earnings66 75 
Other income (expense), net(9)(261)
Total operating expenses$(914)$(976)
Percentage of net sales15.3 %19.8 %

For the three months ended September 30, 2024, Selling, general and administrative expenses were $799 million, a 20% increase compared with the same period of 2023. The increase is primarily due to incremental expenses associated with the VCS Business since the date of acquisition. In addition, the current period also included $15 million of acquisition and divestiture-related costs compared with $35 million during the three months ended September 30, 2023.

Research and development costs relate to new product development and new technology innovation. Due to the variable nature of program development schedules, year-over-year spending levels can fluctuate. In addition, we continue to invest to prepare for future energy efficiency and refrigerant regulation changes and in digital controls technologies.

Investments over which we do not exercise control, but have significant influence, are accounted for using the equity method of accounting. For the three months ended September 30, 2024, Equity method investment net earnings were $66 million, a 12% decrease compared with the same period of 2023. The decrease was primarily driven by the absence of a $16 million benefit recognized in connection with a favorable tax ruling at a minority owned joint venture in the prior year. As a result, we reported higher earnings in HVAC joint ventures across all regions.

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Other income (expense), net primarily includes the impact of gains and losses related to the sale of businesses or interests in our equity method investments, foreign currency gains and losses on transactions that are denominated in a currency other than an entity's functional currency and hedging-related activities. During the three months ended September 30, 2023, we recognized a $257 million loss on the mark-to-market valuation of our window forward contracts associated with the expected cash outflows of the Euro-denominated purchase price of the VCS Business.

Non-Operating Income (Expense), net

For the three months ended September 30, 2024, Non-operating income (expense), net was $7 million, a 118% decrease compared with the same period of 2023. The components were as follows:

 Three Months Ended September 30,
(In millions)20242023
Non-service pension (expense) benefit$(1)$— 
Interest expense$(131)$(73)
Interest income139 34 
Interest (expense) income, net$8 $(39)
Non-operating income (expense), net$7 $(39)

Non-operating income (expense), net includes the results from activities other than normal business operations such as interest expense, interest income and the non-service components of pension and post-retirement obligations. Interest expense is affected by the amount of debt outstanding and the interest rates on that debt. For the three months ended September 30, 2024, Interest expense was $131 million, a 79% increase compared with the same period of 2023. In connection with the acquisition of the VCS Business, we entered into several financing arrangements to fund the cash portion of the Euro-denominated purchase price. In July 2024, we completed tender offers to repurchase approximately $1.0 billion aggregate principal which included $125 million of notes due 2034, $350 million of notes due 2054 and approximately $600 million of notes due 2050. Upon settlement, we wrote off $11 million of unamortized deferred financing costs in Interest expense and recognized a net gain of $97 million in Interest income. During the three months ended September 30, 2023, we amortized $12 million of deferred financing cost in Interest expense, of which $11 million related to our senior unsecured bridge term loan facility (the "Bridge Loan").

Income Taxes

  Three Months Ended September 30,
 20242023
Effective tax rate22.3 %37.6 %

We account for income tax expense in accordance with ASC 740, which requires an estimate of the annual effective income tax rate for the full year to be applied to the respective interim period, taking into account year-to-date amounts and projected results for the full year. The effective tax rate was 22.3% for the three months ended September 30, 2024 compared with 37.6% for the three months ended September 30, 2023. The year-over-year decrease was primarily driven by the absence of the non-deductible loss of $257 million on the mark-to-market valuation of the Company's window forward contracts associated with the expected cash outflows of the Euro-denominated purchase price of the VCS Business and a tax charge of $19 million related to the Company's intention to no longer permanently reinvest historical earnings from certain jurisdictions.
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Nine Months Ended September 30, 2024 Compared with the Nine Months Ended September 30, 2023

The following represents our consolidated net sales and operating results:

Nine Months Ended September 30,
(In millions)20242023Period Change% Change
Net sales$17,338 $14,635 $2,703 18 %
Cost of products and services sold(12,701)(10,590)(2,111)20 %
Gross margin4,637 4,045 592 15 %
Operating expenses(2,765)(2,424)(341)14 %
Operating profit1,872 1,621 251 15 %
Non-operating income (expense), net(291)(126)(165)131 %
Income from operations before income taxes1,581 1,495 86 6 %
Income tax expense(339)(453)114 (25)%
Earnings (loss) from continuing operations1,242 1,042 200 19 %
Discontinued operations, net of tax1,897 (41)1,938 (4727)%
Net earnings (loss)3,139 1,001 2,138 214 %
Less: Non-controlling interest in subsidiaries' earnings from operations86 72 14 19 %
Net earnings (loss) attributable to common shareowners$3,053 $929 $2,124 229 %

Net Sales

For the nine months ended September 30, 2024, Net sales were $17.3 billion, a 18% increase compared with the same period of 2023. The components of the year-over-year change were as follows:

Nine Months Ended September 30, 2024
Organic2 %
Foreign currency translation(1)%
Acquisitions and divestitures, net17 %
Total % change18 %

Organic sales for the nine months ended September 30, 2024 increased by 2% compared with the same period of 2023. The organic increase was primarily driven by our HVAC segment due to improved end-markets in the Americas, which more than offset reduced end-markets in EMEA and Asia. Results in Refrigeration were flat compared to the prior year as each of the segment's businesses experienced challenges in certain end-markets. Refer to "Segment Review" below for a discussion of Net sales by segment.

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Gross Margin

For the nine months ended September 30, 2024, gross margin was $4.6 billion, a 15% increase compared with the same period of 2023. The components were as follows:

Nine Months Ended September 30,
(In millions)20242023
Net sales$17,338 $14,635 
Cost of products and services sold(12,701)(10,590)
Gross margin$4,637 $4,045 
Percentage of net sales26.7 %27.6 %

Gross margin increased by $592 million compared with the nine months ended September 30, 2023. The main driver of the increase related to ongoing customer demand, pricing improvements and our continued focus on productivity initiatives. Operating results associated with the VCS Business since the date of acquisition further benefited gross margin during the period. However, the results of the VCS Business included inventory step-up, backlog amortization and intangible asset amortization resulting from the recognition of acquired assets at fair value. These costs had a 270 basis point unfavorable impact on gross margin as a percentage of Net sales. As a result, gross margin as a percentage of Net sales decreased by 90 basis points compared with the same period of 2023.

Operating Expenses

For the nine months ended September 30, 2024, operating expenses, including Equity method investment net earnings, were a benefit of $2.8 billion, a 14% increase compared with the same period of 2023. The components were as follows:

Nine Months Ended September 30,
(In millions)20242023
Selling, general and administrative$(2,394)$(1,870)
Research and development(524)(355)
Equity method investment net earnings187 171 
Other income (expense), net(34)(370)
Total operating expenses$(2,765)$(2,424)
Percentage of net sales15.9 %16.6 %

For the nine months ended September 30, 2024, Selling, general and administrative expenses were $2.4 billion, a 28% increase compared with the same period of 2023. The increase is primarily due to incremental expenses associated with the VCS Business since the date of acquisition. In addition, higher compensation and other employee-related costs further contributed to the increase. The current period also included $87 million of acquisition and divestiture-related costs compared with $58 million during the nine months ended September 30, 2023.

Research and development costs relate to new product development and new technology innovation. Due to the variable nature of program development schedules, year-over-year spending levels can fluctuate. In addition, we continue to invest to prepare for future energy efficiency and refrigerant regulation changes and in digital controls technologies.

Investments over which we do not exercise control, but have significant influence, are accounted for using the equity method of accounting. For the nine months ended September 30, 2024, Equity method investment net earnings were $187 million, a 9% increase compared with the same period of 2023. The increase was primarily driven by higher earnings in HVAC joint ventures across all regions. The increase was partially offset by a $23 million charge associated with the devaluation of U.S. Dollar denominated balances at an HVAC equity investment in Egypt. In addition, prior year results include a $16 million benefit recognized in connection with a favorable tax ruling at a minority owned joint venture.

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Other income (expense), net primarily includes the impact of gains and losses related to the sale of businesses or interests in our equity method investments, foreign currency gains and losses on transactions that are denominated in a currency other than an entity's functional currency and hedging-related activities. During the nine months ended September 30, 2024, we recognized a $46 million gain associated with our share of United Technologies Corporation's conclusion of certain income tax matters from their 2017 and 2018 tax audit with the Internal Revenue Service ("IRS"). In connection with the acquisition of the VCS Business, we recognized an $86 million loss on the mark-to-market valuation of our window forward contracts associated with the cash outflows of the Euro-denominated purchase price. During the nine months ended September 30, 2023, we recognized a $368 million loss on the mark-to-market valuation of our window forward contracts associated with the expected cash outflows of the Euro-denominated purchase price of the VCS Business.

Non-Operating Income (Expense), net

For the nine months ended September 30, 2024, Non-operating income (expense), net was $291 million, a 131% increase compared with the same period of 2023. The components were as follows:

Nine Months Ended September 30,
(In millions)20242023
Non-service pension (expense) benefit$(1)$— 
Interest expense$(462)$(209)
Interest income172 83 
Interest (expense) income, net$(290)$(126)
Non-operating income (expense), net$(291)$(126)

Non-operating income (expense), net includes the results from activities other than normal business operations such as interest expense, interest income and the non-service components of pension and post-retirement obligations. Interest expense is affected by the amount of debt outstanding and the interest rates on that debt. For the nine months ended September 30, 2024, Interest expense was $462 million, a 121% increase compared with the same period of 2023. In connection with the acquisition of the VCS Business, we entered into several financing arrangements to fund the Euro-denominated purchase price. We also redeemed $1.0 billion aggregate principal amount of 5.80% notes due in 2025 and completed tender offers to repurchase approximately $1.0 billion aggregate principal which included $125 million of notes due 2034, $350 million of notes due 2054 and approximately $600 million of notes due 2050. Upon settlement, we incurred a make-whole premium of $8 million in Interest expense, wrote off $11 million of unamortized deferred financing costs in Interest expense and recognized a net gain of $97 million in Interest income. During the nine months ended September 30, 2023, we amortized $34 million of deferred financing cost in Interest expense, of which $30 million related to our Bridge Loan.

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Income Taxes

 Nine Months Ended September 30,
 20242023
Effective tax rate21.4 %30.3 %

We account for income tax expense in accordance with ASC 740, which requires an estimate of the annual effective income tax rate for the full year to be applied to the respective interim period, taking into account year-to-date amounts and projected results for the full year. The effective tax rate was 21.4% for the nine months ended September 30, 2024, compared with 30.3% for the nine months ended September 30, 2023. The year-over-year decrease was primarily driven by the $368 million loss on the mark-to-market valuation of the Company's window forward contracts associated with the expected cash outflows of the Euro-denominated purchase price of the VCS Business during the nine months ended September 30, 2023. In addition, the Company recognized a tax benefit of $21 million associated with the TMA and UTC's conclusion of certain income tax matters from their 2017 and 2018 tax audit with the U.S. Internal Revenue Service ("IRS") during the nine months ended September 30, 2024.

SEGMENT REVIEW

We have two operating segments:
•The HVAC segment provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers while enhancing building performance, health, energy efficiency and sustainability.
•The Refrigeration segment includes transport refrigeration and monitoring products, services and digital solutions for trucks, trailers, shipping containers, intermodal and rail, as well as commercial refrigeration products.

We determine our segments based on how our Chief Executive Officer, who is the Chief Operating Decision Maker (the "CODM"), allocates resources, assesses performance and makes operational decisions. The CODM allocates resources and evaluates the financial performance of each of our segments based on Net sales and Operating profit. Adjustments to reconcile segment reporting to the consolidated results are included in Note 17 - Segment Financial Data.


Three Months Ended September 30, 2024 Compared with Three Months Ended September 30, 2023

Summary performance for each of our segments is as follows:

 Net SalesOperating ProfitOperating Profit Margin
 Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30,
(In millions)202420232024202320242023
HVAC$5,058 $4,008 $741 $763 14.7 %19.0 %
Refrigeration938 924 109 107 11.6 %11.6 %
Total segment$5,996 $4,932 $850 $870 14.2 %17.6 %

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HVAC Segment

For the three months ended September 30, 2024, Net sales in our HVAC segment were $5.1 billion, a 26% increase compared with the same period of 2023. The components of the year-over-year change were as follows:

Net Sales
Organic 6 %
Acquisitions and divestitures, net20 %
Total % change in Net sales26 %

The organic increase in Net sales of 6% was driven by continued strong results in the segment. Growth in the Americas (up 9%) was primarily driven by our Commercial and Residential businesses which benefited from strong customer demand and pricing improvements. This was partially offset by lower volumes in our Light Commercial business. Growth in EMEA (up 3%) was primarily driven by ongoing customer demand and pricing improvements in our Commercial business. Residential markets continue to be impacted by reduced volume compared with the prior year. Results in Asia (down 3%) were impacted by lower demand in the region, primarily in China.

On January 2, 2024, we acquired the VCS Business, a leading manufacturer of high efficiency heating and renewable energy systems in Europe. The results of the VCS Business have been included in our Unaudited Condensed Consolidated Financial Statements since the date of acquisition. The transaction added 20% to Net sales during the three months ended September 30, 2024, and is included in Acquisitions and divestitures, net.

For the three months ended September 30, 2024, Operating profit in our HVAC segment was $741 million, a 3% decrease compared with the same period of 2023. The components of the year-over-year change were as follows:

Operating Profit
Operational11 %
Acquisitions and divestitures, net7 %
Restructuring(4)%
Amortization of acquired intangibles(18)%
Other1 %
Total % change in Operating profit(3)%

The operational profit increase of 11% was primarily attributable to ongoing customer demand and pricing improvements in certain end-markets compared with the prior year. In addition, favorable material costs drove productivity benefits in the segment. These benefits more than offset volume reductions in certain end-markets and lower earnings from equity method investments. However, the prior year included a $16 million benefit recognized in connection with a favorable tax ruling at a minority owned joint venture.

Refrigeration Segment

For the three months ended September 30, 2024, Net sales in our Refrigeration segment were $938 million, a 1% increase compared to the same period of 2023. The components of the year-over-year change were as follows:
Net Sales
Organic1 %
Foreign currency translation— %
Total % change in Net sales1 %

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The organic increase in Net Sales of 1% was primarily driven by volume growth and price improvements within certain end-markets compared with the prior year. Transport refrigeration results increased (up 4%) compared to the prior year primarily due to strong container end-markets. In addition, higher volumes in Asia further benefited results but were more than offset by lower end-market demand in North America and Europe. Results for Commercial refrigeration decreased (down 3%) compared with the prior year, primarily driven by reduced end-market demand in China. In addition, economic conditions and inflationary cost pressures impacted end-market demand in Europe.

For the three months ended September 30, 2024, Operating profit in our Refrigeration segment was $109 million, a 2% increase compared with the same period of 2023. The components of the year-over-year change were as follows:

Operating Profit
Operational7 %
Foreign currency translation(1)%
Other(4)%
Total % change in Operating profit2 %

The increase in operational profit of 7% was primarily driven by favorable productivity initiatives and price improvements compared with the prior year. In addition, volume growth in certain end-markets further benefited the segment. These amounts were partially offset by volume reductions in certain other end-markets. Inflationary cost pressures are moderating but continue to impact our operating profit. Amounts reported in Other represent $3 million of divestiture-related costs associated with the sale of CCR.

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Nine Months Ended September 30, 2024 Compared with Nine Months Ended September 30, 2023

Summary performance for each of our segments is as follows:

Net SalesOperating ProfitOperating Profit Margin
Nine Months Ended September 30,Nine Months Ended September 30,Nine Months Ended September 30,
(In millions)202420232024202320242023
HVAC$14,569 $11,846 $1,857 $1,940 12.7 %16.4 %
Refrigeration2,795 2,794 319 327 11.4 %11.7 %
Total segment$17,364 $14,640 $2,176 $2,267 12.5 %15.5 %

HVAC Segment

For the nine months ended September 30, 2024, Net sales in our HVAC segment were $14.6 billion, a 23% increase compared with the same period of 2023. The components of the year-over-year change were as follows:

Net Sales
Organic 3 %
Acquisitions and divestitures, net20 %
Total % change in Net sales23 %

The organic increase in Net sales of 3% was driven by continued strong results in the segment. Growth in the Americas (up 7%) was primarily driven by our Commercial and Light Commercial businesses which benefited from ongoing customer demand and pricing improvements. Moderate growth in our Residential business was due to higher volumes compared with the prior year. EMEA (down 2%) continues to be impacted by reduced volumes in residential markets. The reduction was partially offset by ongoing customer demand and pricing improvements in our Commercial business. Results in Asia (down 3%) were impacted by lower demand in the region, primarily in China.

On January 2, 2024, we acquired the VCS Business, a leading manufacturer of high efficiency heating and renewable energy systems in Europe. The results of the VCS Business have been included in our Unaudited Condensed Consolidated Financial Statements since the date of acquisition. The transaction added 20% to Net sales during the nine months ended September 30, 2024 and is included in Acquisitions and divestitures, net.

For the nine months ended September 30, 2024, Operating profit in our HVAC segment was $1.9 billion, a 4% decrease compared with the same period of 2023. The components of the year-over-year change were as follows:

Operating Profit
Operational17 %
Acquisitions and divestitures, net1 %
Restructuring(3)%
Amortization of acquired intangibles(21)%
Other2 %
Total % change in Operating profit(4)%

The operational profit increase of 17% was primarily attributable to ongoing customer demand and pricing improvements in certain end-markets compared with the prior year. In addition, favorable material and logistics costs drove productivity benefits in the segment. These benefits more than offset volume reductions in certain end-markets. Higher earnings from equity method investments further benefited operational profit in the segment. The increase was partially offset by a $23 million charge associated with the devaluation of U.S. Dollar denominated balances at an HVAC equity investment in Egypt.

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Refrigeration Segment

For the nine months ended September 30, 2024, Net sales in our Refrigeration segment were $2.8 billion, flat compared to the same period of 2023. The components of the year-over-year change were as follows:

Net Sales
Organic— %
Foreign currency translation— %
Total % change in Net sales— %

Organic Net sales was flat compared to the prior year as the segment experienced challenges in certain end-markets during the period. Transport refrigeration results increased (up 1%) compared to the prior year primarily due to strong container markets. In addition, higher volumes in Asia and Europe further benefited results but were more than offset by lower end-market demand in North America. Results for Commercial refrigeration decreased (down 4%) compared with the prior year, primarily driven by lower volumes in Europe as economic conditions and inflationary cost pressures impacted end-market demand. In addition, Asia results were impacted by reduced end-market demand in China.

For the nine months ended September 30, 2024, Operating profit in our Refrigeration segment was $319 million, a 2% decrease compared with the same period of 2023. The components of the year-over-year change were as follows:

Operating Profit
Operational6 %
Foreign currency translation(1)%
Restructuring3 %
Other(10)%
Total % change in Operating profit(2)%

The increase in operational profit of 6% was primarily driven by favorable productivity initiatives and price improvements compared with the prior year. In addition, volume growth in certain end-markets further benefited the segment. These amounts were partially offset by volume reductions in certain other end-markets. Inflationary cost pressures are moderating but continue to impact our operating profit. Amounts reported in Other represent $11 million of divestiture-related costs associated with the sale of CCR. In addition, the prior year includes a $24 million gain on the sale of a business within Transport refrigeration.

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LIQUIDITY AND FINANCIAL CONDITION

We assess liquidity in terms of our ability to generate adequate amounts of cash necessary to fund our current and future cash requirements to support our business and strategic initiatives. In doing so, we review and analyze our cash on hand, working capital, debt service requirements and capital expenditures. We rely on operating cash flows as our primary source of liquidity. In addition, we have access to other sources of capital to finance our strategic initiatives and fund growth.

As of September 30, 2024, we had cash and cash equivalents of $2.2 billion, of which approximately 68% was held by our foreign subsidiaries. We manage our worldwide cash requirements by reviewing available funds and the cost effectiveness with which we can access funds held by foreign subsidiaries. On occasion, we are required to maintain cash deposits in connection with contractual obligations related to acquisitions, divestitures or other legal obligations. As of September 30, 2024 and December 31, 2023, the amount of such restricted cash was approximately $14 million and $2 million, respectively.

We continue to actively manage and strengthen our business portfolio to meet the current and future needs of our customers. This is accomplished through research and development activities with a focus on new product development and new technology innovation as well as sustaining activities with a focus on improving existing products and reducing production costs. We also pursue potential acquisitions to complement existing products and services to enhance our product portfolio. In addition, we routinely conduct discussions, evaluate targets and enter into agreements regarding possible acquisitions, divestitures, joint ventures and equity investments to manage our business portfolio.

We believe that our available cash and operating cash flows will be sufficient to meet our future operating cash needs. Our committed credit facilities and access to the debt and equity markets provide additional sources of short-term and long-term capital to fund current operations, debt maturities and future investment opportunities. Although we believe that the arrangements currently in place permit us to finance our operations on acceptable terms and conditions, our access to and the availability of financing on acceptable terms and conditions in the future will be impacted by many factors, including: (1) our credit ratings or absence of credit ratings, (2) the level of our existing indebtedness, (3) the restrictions under our debt agreements, (4) the liquidity of the overall capital markets and (5) the state of the economy. There can be no assurance that we will be able to obtain additional financing on terms favorable to us, if at all.

The following table contains several key measures of our financial condition and liquidity:

(In millions)September 30,
2024		December 31,
2023
Cash and cash equivalents$2,225 $9,852 
Total debt$12,432 $14,293 
Total equity$15,042 $9,005 
Net debt (total debt less cash and cash equivalents)$10,207 $4,441 
Total capitalization (total debt plus total equity)$27,474 $23,298 
Net capitalization (total debt plus total equity less cash and cash equivalents)$25,249 $13,446 
Total debt to total capitalization45 %61 %
Net debt to net capitalization40 %33 %

Acquisition of the VCS Business

On April 25, 2023, we announced that we entered into an Agreement to acquire the VCS Business. Under the terms of the Agreement, 20% of the purchase price was to be paid in Carrier common stock, issued directly to Viessmann and subject to certain lock-up provisions and 80% was to be paid in cash. Simultaneously, we entered into commitment letters with JPMorgan Chase Bank, N.A., BofA Securities, Inc. and Bank of America, N.A. to provide a €8.2 billion senior unsecured bridge term loan facility (the "Bridge Loan") to fund a portion of the Euro-denominated purchase price.

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On May 19, 2023, we entered into a 364-day, $500 million, senior unsecured revolving credit agreement with JPMorgan Chase Bank, N.A., as administrative agent and certain other lenders (the "Revolver"). In addition, we entered into a senior unsecured delayed draw term loan credit agreement with JPMorgan Chase Bank, N.A., as administrative agent and certain other lenders that permits aggregate borrowings of up to €2.3 billion (the "Delayed Draw Facility"). Upon entering into the Delayed Draw Facility, the aggregate principal amount of the Bridge Loan was reduced by €2.3 billion. In November 2023, we issued $3.0 billion principal amount of USD-denominated notes ("USD Notes") and €2.35 billion principal amount of Euro-denominated notes ("Euro Notes"). Upon issuance, the aggregate principal amount of the Bridge Loan was reduced by €5.4 billion. On January 2, 2024, we entered into a 60-day senior unsecured term loan agreement consisting of a Euro-denominated tranche in an aggregate amount of €113 million and a USD-denominated tranche in an aggregate amount of $349 million (the “60-day Loan”). Upon entering into the 60-day Loan, we reduced the final portion of the Bridge Loan by €500 million and subsequently terminated the agreement.

On January 2, 2024, we completed the acquisition of the VCS Business for $14.2 billion. The cash portion of the purchase price was funded through cash on hand, proceeds from the USD Notes and the Euro Notes and borrowings under the Delayed Draw Facility and the 60-day Loan. Proceeds from the Revolver became available upon closing.

In March 2024, borrowings under the 60-day loan were repaid. In May 2024, the Revolver was terminated and refinanced in order to extend its maturity to May 2025. In addition, we redeemed our $1.0 billion aggregate principal amount of 5.80% notes due in 2025 and repaid borrowings under the Delayed Draw Facility in June 2024, which was subsequently terminated. In August 2024, we completed tender offers on certain tranches of our notes which included $125 million of notes due 2034, $350 million of notes due 2054 and approximately $600 million of notes due 2050.

Borrowings and Lines of Credit

We maintain a $2.0 billion unsecured, unsubordinated commercial paper program which we can use for general corporate purposes, including the funding of working capital and potential acquisitions. In addition, we maintain a $2.0 billion revolving credit agreement with various banks (the "Revolving Credit Facility") that matures in May 2028 which supports our commercial paper borrowing program and can be used for general corporate purposes. A ratings-based commitment fee is charged on unused commitments. As of September 30, 2024, we had no borrowings outstanding under our commercial paper program or our Revolving Credit Facility.

Our short-term obligations primarily consist of current maturities of long-term debt. Our long-term obligations primarily consist of long-term notes with maturity dates ranging between 2025 and 2054. Interest payments related to long-term notes are expected to approximate $433 million per year, reflecting an approximate weighted-average interest rate of 3.53%. Any borrowings from the Revolving Credit Facility are subject to variable interest rates. See Note 5 – Borrowings and Lines of Credit in the Notes to the accompanying Unaudited Condensed Consolidated Financial Statements for additional information regarding the terms of our long-term debt obligations.

The following table presents our credit ratings and outlook as of September 30, 2024:

Rating Agency
Long-term Rating (1)
Short-term Rating (2)
Outlook (2) (3)
Standards & Poor's ("S&P")
BBBA2Positive
Moody's Investors Service Inc. ("Moody's")
Baa2P2Positive
Fitch Ratings ("Fitch")BBBF2Positive
(1) The long-term rating was upgraded by Moody's to Baa2 on May 13, 2024. Fitch's was updated in December 2023.
(2) Fitch upgraded its short-term rating to F2 from F3 and revised its outlook to positive from stable on July 11, 2024.
(3) S&P revised its outlook to positive from stable in December 2023.
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Portfolio Transformation

On June 2, 2024, we completed the divestiture of Access Solutions for cash proceeds of $5.0 billion, subject to customary working capital and other adjustments. On July 1, 2024, we completed the divestiture of Industrial Fire to Sentinel Capital Partners for cash proceeds of $1.4 billion, subject to customary working capital and other adjustments. Consistent with our capital allocation strategy, the net proceeds will be used to fund repayment of debt, investments in organic and inorganic growth initiatives and capital returns to shareowners as well as for general corporate purposes.

On December 12, 2023, we entered into a stock purchase agreement to sell CCR to Haier Group Corporation for an enterprise value of approximately $775 million. The sale of CCR was completed on October 1, 2024. On August 15, 2024, we entered into a stock purchase agreement to sell the CRF Business to an affiliate of Lone Star Funds for an enterprise value of approximately $3.0 billion. The transaction is expected to close in 2024.

Share Repurchase Program

We may repurchase our outstanding common stock from time to time subject to market conditions and at our discretion. Repurchases occur in the open market or through one or more other public or private transactions pursuant to plans complying with Rules 10b5-1 and 10b-18 under the Exchange Act. Since the initial authorization in February 2021, our Board of Directors authorized the repurchase of up to $4.1 billion of our outstanding common stock. As of December 31, 2023, we repurchased 43.5 million shares of common stock for an aggregate purchase price of $2.0 billion, including shares repurchased under an accelerated share repurchase agreement. As a result, we had approximately $2.1 billion remaining under the current authorization at December 31, 2023.

During the nine months ended September 30, 2024, we repurchased 6.2 million shares of common stock for an aggregate purchase price of $0.4 billion. As a result we had approximately $1.7 billion remaining under the current authorization at September 30, 2024. In addition, our Board of Directors approved a $3 billion increase to our existing share repurchase program in October 2024.

Dividends

We paid dividends on common stock during the nine months ended September 30, 2024, totaling $514 million. In October 2024, the Board of Directors declared a dividend of $0.19 per share of common stock payable on November 18, 2024, to shareowners of record at the close of business on October 25, 2024.

Discussion of Cash Flows

The following table reflects the major categories of cash flows for the following periods:

Nine Months Ended September 30,
(In millions)20242023
Net cash flows provided by (used in):
Continuing operating activities$1,208 $1,345 
Continuing investing activities(11,331)(284)
Continuing financing activities(2,939)(673)

Cash flows from continuing operating activities primarily represent inflows and outflows associated with our continuing operations. Primary activities include net earnings from continuing operations adjusted for non-cash transactions, working capital changes and changes in other assets and liabilities. The year-over-year decrease in net cash provided by continuing operating activities was primarily driven by an increase in working capital balances compared with the prior period. Improved cash conversion and lower inventory levels were more than offset by lower accounts payable balances.

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Cash flows from continuing investing activities primarily represent inflows and outflows associated with long-term assets. Primary activities include capital expenditures, acquisitions, divestitures and proceeds from the sale of fixed assets. During the nine months ended September 30, 2024, net cash used in continuing investing activities was $11.3 billion. The primary driver of the outflow related to the acquisition of the VCS Business, which totaled $10.8 billion, net of cash acquired. Additional investing outflows include $187 million related to settlement of derivatives and $302 million of capital expenditures. During the nine months ended September 30, 2023, net cash used in continuing investing activities was $284 million. The primary driver of the outflow related to $217 million of capital expenditures. In addition, we settled working capital and other transaction-related items associated with the acquisition of Toshiba Carrier Corporation and invested in several businesses. These amounts totaled $69 million, net of cash acquired and were partially offset by the proceeds from the sale of a business during the period.

Cash flows from continuing financing activities primarily represent inflows and outflows associated with equity or borrowings. During the nine months ended September 30, 2024, net cash used in continuing financing activities was $2.9 billion. The primary driver of the outflow is due to repayments of long-term debt of $4.5 billion which includes prepayments of the Delayed Draw Facility, redemption of our 5.80% notes due in 2025 and tender offers of approximately $1.0 billion. In addition, we made payments totaling $431 million to repurchase shares of our common stock and dividend payments of $514 million to our common shareowners. These outflows were partially offset by the proceeds of borrowings used to fund the cash portion of the acquisition of the VCS Business. During the nine months ended September 30, 2023, net cash used in continuing financing activities was $673 million. The primary driver of the outflow related to the payment of $465 million in dividends to our common shareowners. In addition, we paid $62 million to repurchase shares of our common stock.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk
There has been no significant change in our exposure to market risk during the three and nine months ended September 30, 2024. For discussion of our exposure to market risk, refer to the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations – Market Risk and Risk Management" in our 2023 Form 10-K.

Item 4.    Controls and Procedures
As required by Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), we carried out an evaluation under the supervision and with the participation of our management, including the Chairman and Chief Executive Officer ("CEO"), the Senior Vice President and Chief Financial Officer ("CFO") and the Vice President, Controller and Chief Accounting Officer ("CAO") of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2024. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based upon our evaluation, our CEO, CFO and CAO have concluded that, as of September 30, 2024, our disclosure controls and procedures were effective and provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our CEO, CFO and CAO, as appropriate, to allow timely decisions regarding required disclosure.

There has been no change in our internal control over financial reporting during the three months ended September 30, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

CAUTIONARY NOTE CONCERNING FACTORS THAT MAY AFFECT FUTURE RESULTS
This Form 10-Q and other materials Carrier has filed or will file with the SEC contain or incorporate by reference 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. 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. These risks and uncertainties include, but are not limited to, those described above under Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, below under Part II, Item 1A. Risk Factors, and other risks and uncertainties listed from time to time in our filings with the SEC.
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PART II – OTHER INFORMATION

Item 1.    Legal Proceedings

See Note 19 – Commitments and Contingent Liabilities in the Notes to the accompanying Unaudited Condensed Consolidated Financial Statements for information regarding legal proceedings.

Except as otherwise noted previously, there have been no material developments in legal proceedings. For previously reported information about legal proceedings refer to "Business – Legal Proceedings" in our 2023 Form 10-K.

Item 1A. Risk Factors
There have been no material changes in the Company’s risk factors from those disclosed in "Risk Factors" in our 2023 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The following table provides information about our purchases during the three months ended September 30, 2024, of equity securities that are registered by us pursuant to Section 12 of the Exchange Act.

Total Number of Shares Purchased
(in 000's)
Average Price Paid per Share (1)
Total Number of Shares Purchased as Part of a Publicly Announced Program
(in 000's)		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program
(in millions)
2024
July 1 - July 31—$— —$2,129 
August 1 - August 313,730$67.00 3,730$1,879 
September 1 - September 302,438$74.37 2,438$1,697 
Total6,168$69.91 6,168
(1) Excludes broker commissions.

We may purchase our outstanding common stock from time to time subject to market conditions and at our discretion. Repurchases occur in the open market or through one or more other public or private transactions pursuant to plans complying with Rules 10b5-1 and 10b-18 under the Exchange Act. Since the initial authorization in February 2021, the Company's Board of Directors authorized the repurchase of up $4.1 billion of the Company's outstanding common stock. In October 2024, the Company's Board of Directors approved a $3 billion increase to the Company's existing share repurchase program.

On January 2, 2024, the Company completed the acquisition of the VCS Business from Viessmann for total consideration of $14.2 billion. The purchase price consisted of (i) $11.2 billion in cash and (ii) 58,608,959 shares of the Company's common stock, which were issued to Viessmann in a transaction exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended.

Item 5. Other Information

During the three months ended September 30, 2024, no director or Section 16 officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.
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Item 6. Exhibits
Exhibit
Number		Exhibit Description
10.1
15
31.1
31.2
31.3
32
101.INS
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.*
(File name: carr-20240930.xml)
101.SCH
XBRL Taxonomy Extension Schema Document.*
(File name: carr-20240930.xsd)
101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document.*
(File name: carr-20240930_cal.xml)
101.DEF
XBRL Taxonomy Extension Definition Linkbase Document.*
(File name: carr-20240930_def.xml)
101.LAB
XBRL Taxonomy Extension Label Linkbase Document.*
(File name: carr-20240930_lab.xml)
101.PRE
XBRL Taxonomy Extension Presentation Linkbase Document.*
(File name: carr-20240930_pre.xml)
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document and contained in Exhibit 101

Notes to Exhibits List:
*    Filed herewith.
+ Exhibit is a management contract or compensatory plan or arrangement.
** Certain exhibits and schedules to this exhibit have been omitted in accordance with Item 601(a)(5) of Regulation S-K. The registrant agrees to furnish supplementally a copy of all omitted exhibits and schedules to the Securities and Exchange Commission upon its request.
† Certain portions of this exhibit have been omitted in accordance with Item 601(b)(2)(ii) of Regulation S-K. The registrant agrees to furnish supplementally an unredacted copy of this exhibit to the Securities and Exchange Commission upon its request.

Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2024 and 2023, (ii) Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023, (iii) Condensed Consolidated Balance Sheet as of September 30, 2024 and December 31, 2023, (iv) Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2024 and 2023, (v) Condensed Consolidated Statement of Changes in Equity for the three and nine months ended September 30, 2024 and 2023, and (vi) Notes to Condensed Consolidated Financial Statements.
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SIGNATURES
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 thereunto duly authorized.


CARRIER GLOBAL CORPORATION
(Registrant)
Dated:October 25, 2024by:/s/PATRICK GORIS
Patrick Goris
Senior Vice President and Chief Financial Officer
(on behalf of the Registrant and as the Registrant's Principal Financial Officer)
Dated:October 25, 2024by:/s/KYLE CROCKETT
Kyle Crockett
Vice President, Controller and Chief Accounting Officer
(on behalf of the Registrant and as the Registrant's Principal Accounting Officer)

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