OTIS WORLDWIDE CORP, 10-K filed on 2/5/2026
Annual Report
v3.25.4
Cover Page - USD ($)
12 Months Ended
Dec. 31, 2025
Jan. 22, 2026
Jun. 30, 2025
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-39221    
Entity Registrant Name OTIS WORLDWIDE CORPORATION    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 83-3789412    
Entity Address, Address Line One One Carrier Place    
Entity Address, City or Town Farmington    
Entity Address, State or Province CT    
Entity Address, Postal Zip Code 06032    
City Area Code 860    
Local Phone Number 674-3000    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 38,824,474,742
Entity Common Stock, Shares Outstanding   388,720,773  
Documents Incorporated by Reference
Part III hereof incorporates by reference portions of the Otis Worldwide Corporation Proxy Statement for the 2026 Annual Meeting of Shareholders (the "2026 Proxy Statement"). The 2026 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.
   
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
Entity Central Index Key 0001781335    
Common Stock      
Document Information [Line Items]      
Title of 12(b) Security Common Stock ($0.01 par value)    
Trading Symbol OTIS    
Security Exchange Name NYSE    
0.318% Notes due 2026      
Document Information [Line Items]      
Title of 12(b) Security 0.318% Notes due 2026    
Trading Symbol OTIS/26    
Security Exchange Name NYSE    
2.875% Notes due 2027      
Document Information [Line Items]      
Title of 12(b) Security 2.875% Notes due 2027    
Trading Symbol OTIS/27    
Security Exchange Name NYSE    
0.934% Notes due 2031      
Document Information [Line Items]      
Title of 12(b) Security 0.934% Notes due 2031    
Trading Symbol OTIS/31    
Security Exchange Name NYSE    
v3.25.4
Audit Information
12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Firm ID 238
Auditor Location Hartford, Connecticut
v3.25.4
Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net sales:      
Net sales $ 14,431 $ 14,261 $ 14,209
Costs and expenses:      
Research and development 152 152 144
Selling, general and administrative 1,979 1,861 1,884
Costs and expenses 12,192 12,017 12,044
Other income (expense), net (106) (236) 21
Operating profit 2,133 2,008 2,186
Non-service pension cost (benefit) 3 0 5
Interest expense (income), net 196 (31) 150
Net income before income taxes 1,934 2,039 2,031
Income tax expense 479 305 533
Net income 1,455 1,734 1,498
Less: Noncontrolling interest in subsidiaries' earnings 71 89 92
Net income attributable to Otis Worldwide Corporation $ 1,384 $ 1,645 $ 1,406
Earnings per share (Note 3):      
Basic (in usd per share) $ 3.52 $ 4.10 $ 3.42
Diluted (in usd per share) $ 3.50 $ 4.07 $ 3.39
Weighted average number of shares outstanding      
Basic shares (in shares) 392.8 401.7 411.4
Diluted shares (in shares) 394.9 404.4 414.6
Product sales      
Net sales:      
Net sales $ 4,989 $ 5,367 $ 5,812
Costs and expenses:      
Cost of sales 4,182 4,459 4,843
Service sales      
Net sales:      
Net sales 9,442 8,894 8,397
Costs and expenses:      
Cost of sales $ 5,879 $ 5,545 $ 5,173
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 1,455 $ 1,734 $ 1,498
Other comprehensive income (loss):      
Foreign currency translation adjustments, net of tax (366) (13) (93)
Pension and postretirement benefit plan adjustments:      
Net actuarial gain (loss) 63 (2) (90)
Prior service credit (5) 0 0
Amortization of actuarial (gain) loss and prior service credit 3 0 (1)
Other (5) 6 (1)
Total recognized in other comprehensive (income) loss 56 4 (92)
Tax benefit (expense) (15) (2) 22
Pension and postretirement benefit plan adjustments, net of tax 41 2 (70)
Change in unrealized cash flow hedging:      
Unrealized cash flow hedging gain (loss) (3) 2 6
Adjustment for net (gain) loss realized and included in net income 2 0 (8)
Change in unrealized cash flow hedging, net of tax (1) 2 (2)
Tax benefit (expense) (1) 0 0
Change in unrealized cash flow hedging, net of tax (2) 2 (2)
Other comprehensive income (loss), net of tax (327) (9) (165)
Comprehensive income (loss), net of tax 1,128 1,725 1,333
Less: Comprehensive (income) loss attributable to noncontrolling interest (86) (75) (85)
Comprehensive income attributable to Otis Worldwide Corporation $ 1,042 $ 1,650 $ 1,248
v3.25.4
Consolidated Balance Sheet - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Assets    
Cash and cash equivalents $ 1,096 $ 2,300
Accounts receivable (net of allowance for expected credit losses of $125 and $125) 3,688 3,428
Contract assets 699 706
Inventories 613 557
Other current assets 405 679
Total Current Assets 6,501 7,670
Future income tax benefits 407 302
Fixed assets, net 743 701
Operating lease right-of-use assets 554 422
Intangible assets, net 343 311
Goodwill 1,695 1,548
Other assets 410 362
Total Assets 10,653 11,316
Liabilities and Equity (Deficit)    
Short-term borrowings and current portion of long-term debt 1,056 1,351
Accounts payable 2,142 1,879
Accrued liabilities 1,847 1,921
Contract liabilities 2,611 2,598
Total Current Liabilities 7,656 7,749
Long-term debt 6,900 6,973
Future pension and postretirement benefit obligations 419 434
Operating lease liabilities 397 298
Future income tax obligations 223 207
Other long-term liabilities 329 383
Total Liabilities 15,924 16,044
Commitments and contingent liabilities (Note 20)
Redeemable noncontrolling interest 75 57
Shareholders' Equity (Deficit):    
Common Stock and additional paid-in-capital 333 265
Treasury Stock (4,198) (3,390)
Accumulated deficit (440) (978)
Accumulated other comprehensive income (loss) (1,087) (745)
Total Shareholders' Equity (Deficit) (5,392) (4,848)
Noncontrolling interest 46 63
Total Equity (Deficit) (5,346) (4,785)
Total Liabilities and Equity (Deficit) $ 10,653 $ 11,316
v3.25.4
Consolidated Balance Sheet (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]        
Accounts receivable, allowance for credit loss $ 125 $ 125 $ 130 $ 152
v3.25.4
Consolidated Statements of Changes in Equity - USD ($)
$ in Millions
Total
Total Shareholders' (Deficit) Equity
Common Stock and Additional Paid-In Capital
Treasury Stock
Accumulated Deficit
Accumulated Other Comprehensive Income (Loss)
Noncontrolling Interest
Beginning balance at Dec. 31, 2022 $ (4,799) $ (4,870) $ 162 $ (1,575) $ (2,865) $ (592) $ 71
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 1,489 1,406     1,406   83
Other comprehensive income (loss), net of tax (161) (158)       (158) (3)
Stock-based compensation and Common Stock issued under employer plans 49 49 51   (2)    
Cash dividends declared (539) (539)     (539)    
Repurchase of Common Shares (807) (807)   (807)      
Dividends attributable to noncontrolling interest (79)           (79)
Acquisitions, disposals and other changes (8) (5)     (5)   (3)
Ending balance at Dec. 31, 2023 (4,855) (4,924) 213 (2,382) (2,005) (750) 69
Beginning balance at Dec. 31, 2022 135            
Increase (Decrease) in Temporary Equity [Roll Forward]              
Net income 9            
Other comprehensive income (loss), net of tax (4)            
Dividends attributable to noncontrolling interest (9)            
Acquisitions, disposals and other changes 4            
Ending balance at Dec. 31, 2023 135            
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 1,725 1,645     1,645   80
Other comprehensive income (loss), net of tax 0 5       5 (5)
Stock-based compensation and Common Stock issued under employer plans 50 50 53   (3)    
Cash dividends declared (606) (606)     (606)    
Repurchase of Common Shares (1,008) (1,008)   (1,008)      
Dividends attributable to noncontrolling interest (81)           (81)
Acquisitions, disposals and other changes (10) (10) (1)   (9)    
Ending balance at Dec. 31, 2024 (4,785) (4,848) 265 (3,390) (978) (745) 63
Increase (Decrease) in Temporary Equity [Roll Forward]              
Net income 9            
Other comprehensive income (loss), net of tax (9)            
Dividends attributable to noncontrolling interest (12)            
Acquisitions, disposals and other changes (66)            
Ending balance at Dec. 31, 2024 57            
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 1,449 1,384     1,384   65
Other comprehensive income (loss), net of tax (334) (342)       (342) 8
Stock-based compensation and Common Stock issued under employer plans 68 68 71   (3)    
Cash dividends declared (647) (647)     (647)    
Repurchase of Common Shares (808) (808)   (808)      
Dividends attributable to noncontrolling interest (63)           (63)
Acquisitions, disposals and other changes (226) (199) (3)   (196)   (27)
Ending balance at Dec. 31, 2025 (5,346) $ (5,392) $ 333 $ (4,198) $ (440) $ (1,087) $ 46
Increase (Decrease) in Temporary Equity [Roll Forward]              
Net income 6            
Other comprehensive income (loss), net of tax 7            
Dividends attributable to noncontrolling interest (5)            
Acquisitions, disposals and other changes 10            
Ending balance at Dec. 31, 2025 $ 75            
v3.25.4
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Stockholders' Equity [Abstract]      
Cash dividends declared (in usd per share) $ 1.65 $ 1.51 $ 1.31
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Activities:      
Net income $ 1,455 $ 1,734 $ 1,498
Adjustments to reconcile net income to net cash flows provided by operating activities, net of acquisitions and dispositions:      
Depreciation and amortization 175 181 193
Deferred income tax expense (benefit) (104) (31) (61)
Stock compensation cost 80 73 64
Gain from reversal of German Tax Litigation interest accrual (Note 1) 0 (50) 0
Change in:      
Accounts receivable, net (111) (68) (239)
Contract assets and liabilities, current (71) (40) (30)
Inventories (25) 26 15
Other current assets 225 (354) 38
Accounts payable 181 57 152
Accrued liabilities (140) 85 33
Pension and postretirement contributions (43) (51) (48)
Other operating activities, net (26) 1 12
Net cash flows provided by operating activities 1,596 1,563 1,627
Investing Activities:      
Capital expenditures (152) (126) (138)
Acquisitions of businesses and intangible assets, net of cash (Note 7) (109) (87) (36)
Net proceeds from the sale of fixed assets 60 6 7
Proceeds from sale of (investments in) marketable securities, net 0 (9) 4
Receipts (payments) on settlements of derivative contracts, net (204) 49 (28)
Other investing activities, net (1) 3 8
Net cash flows provided by (used in) investing activities (406) (164) (183)
Financing Activities:      
Net proceeds from (repayments of) borrowings (maturities of 90 days or less) (25) 11 (113)
Proceeds from borrowings (maturities longer than 90 days) 167 0 0
Proceeds from issuance of long-term debt 500 1,497 747
Payment of debt issuance costs (5) (11) (6)
Repayment of long-term debt (1,300) 0 (534)
Dividends paid on Common Stock (647) (606) (539)
Repurchases of Common Stock (809) (1,007) (800)
Dividends paid to noncontrolling interest (69) (94) (85)
Other financing activities, net (16) (24) (20)
Net cash flows provided by (used in) financing activities (2,421) (309) (1,350)
Effect of foreign exchange rate changes on cash and cash equivalents 15 (49) (9)
Net increase (decrease) in cash and cash equivalents (1,216) 1,041 85
Cash, cash equivalents and restricted cash, beginning of year 2,321 1,280 1,195
Cash, cash equivalents and restricted cash, end of year 1,105 2,321 1,280
Less: Restricted cash 9 21 6
Cash and cash equivalents, end of period 1,096 2,300 1,274
Supplemental cash flow information:      
Interest paid 230 172 132
Noncontrolling Interest Shares      
Financing Activities:      
Acquisition of noncontrolling interest shares (Note 1) $ (217) $ (75) $ 0
v3.25.4
Business Overview
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business Overview Business Overview
Otis (as defined below) is the world’s largest elevator and escalator manufacturing, installation and service company. Our operations are classified into two segments: New Equipment and Service. Through the New Equipment segment, we design, manufacture, sell and install a wide range of passenger and freight elevators, as well as escalators and moving walkways, for residential, commercial and infrastructure projects. The Service segment provides maintenance and repair services for both our products and those of other manufacturers, and provides modernization services to upgrade elevators and escalators.

UpLift

During 2023, the Company announced UpLift to transform the Company's operating model. UpLift includes, among other aspects, the standardization of processes and improvement of supply chain procurement, as well as organizational changes which result in restructuring actions. See Note 15, "Restructuring and Transformation Costs" for information regarding UpLift restructuring actions and related costs incurred.

German Tax Litigation

In August 2024, we received a favorable ruling regarding a tax litigation in Germany. As a result, income tax benefits of approximately $185 million and related interest income of approximately $200 million are included in Income tax expense (benefit) and Interest expense (income), net, respectively, in the Consolidated Statements of Operations for 2024. The income tax benefits are recorded as an income tax receivable in Other current assets in the Consolidated Balance Sheets as of December 31, 2024. The interest income includes the reversal of an interest accrual of $50 million and recognition of an interest receivable of approximately $140 million reflected in Accrued liabilities and Other current assets, respectively, in the Consolidated Balance Sheets as of December 31, 2024.

The Company has started to receive refunds and anticipates the refund process to continue into 2026. As a result, Other current assets in the Consolidated Balance Sheets as of December 31, 2025 and 2024 include an income tax receivable of approximately $75 million and $175 million, respectively, and an interest receivable of approximately $65 million and $140 million, respectively.

Pursuant to the Tax Matters Agreement ("TMA") with RTX Corporation ("RTX", our former parent), and based on the facts and contractual provisions at the time, the Company recorded indemnification expense of $194 million for amounts due to RTX resulting from the outcome of this tax litigation in Germany in 2024. Based on additional information received from RTX during the year, which resulted in additional indemnification expense of $67 million, offset by indemnity payments made to RTX of $205 million, the Company now estimates the amount payable to RTX to be $56 million. The indemnification expense is included in Other income (expense), net in the Consolidated Statements of Operations in 2025 and 2024, and the amounts payable to RTX are included in Accrued liabilities in the Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively.

See Note 14, "Income Taxes" and Note 20, "Contingent Liabilities" for additional information.

Acquisitions of Noncontrolling Interests

In October 2025, we purchased all of the outstanding shares of Otis Electric Elevator Company Limited ("Otis Electric") from the noncontrolling shareholder for approximately $215 million ($80 million from Cash and $135 million from borrowings). As a result, $188 million was recorded to Accumulated deficit for the difference between the purchase price and the historical noncontrolling interest carrying value and $27 million was recorded to Noncontrolling interest. Otis Electric is now 100% owned by our joint venture Otis Elevator (China) Investment Company Limited ("Otis China") and one of its subsidiaries. The impact to Accumulated other comprehensive income (loss) was not significant.

The Company owned a controlling interest and had operational control of Otis Electric as of and for the years ended December 31, 2025, 2024 and 2023, and all other periods during 2025, 2024 and 2023, and therefore its financial results are included in our Consolidated Financial Statements.

In 2024, we purchased all of the outstanding shares of our consolidated subsidiary in Japan from the noncontrolling shareholders for approximately $70 million.
Separation from United Technologies Corporation

On April 3, 2020, United Technologies Corporation, subsequently renamed to RTX Corporation ("UTC" or "RTX", as applicable), completed the spin-off of the Company into an independent publicly-traded company (the "Separation") through a pro-rata distribution of 0.5 shares of Common Stock for every share of UTC common stock held at the close of business on the record date of March 19, 2020 ("Distribution"). Otis began to trade as a separate public company (New York Stock Exchange ("NYSE"): OTIS) on April 3, 2020. See Note 2, "Summary of Significant Accounting Policies" for additional information regarding the Separation and related costs.

Unless the context otherwise requires, references to "Otis", "we", "us", "our" and "the Company" refer to (i) Otis Worldwide Corporation's business prior to the Separation and (ii) Otis Worldwide Corporation and its subsidiaries following the Separation, as applicable. References to "UTC" relate to pre-Separation matters, and references to "RTX" relate to post-Separation matters.
v3.25.4
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Principles of Consolidation and Basis of Presentation. The accompanying Consolidated Financial Statements include the accounts of Otis and its controlled subsidiaries, as well as entities where Otis has a variable interest and is the primary beneficiary as defined by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation. The factors we use to determine the primary beneficiary of a variable interest entity ("VIE") may include decision authority, control over management of day-to-day operations and the amount of our equity investment in relation to others' investments.

All significant intercompany accounts and transactions within the Company have been eliminated in the preparation of the Consolidated Financial Statements.

Certain amounts for prior years have been reclassified to conform to the current year presentation, which are immaterial.

Use of Estimates. The preparation of the Consolidated Financial Statements and accompanying notes in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. In addition, estimates and assumptions may impact the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.

We assessed certain accounting matters that generally require consideration of forecasted financial information in the context of the information reasonably available to us and the unknown future impacts of macroeconomic conditions, including inflationary pressures, higher interest rates and tighter credit conditions as of December 31, 2025 and through the date of this report. The accounting matters assessed included, but were not limited to, our allowance for credit losses, the carrying value of our goodwill and other long-lived assets, financial assets and revenue recognition. While there was not a material impact to our Consolidated Financial Statements resulting from our assessments of these matters, future assessment of our current expectations at that time of the magnitude and duration of these macroeconomic conditions, as well as other factors, could result in material impacts to our Consolidated Financial Statements in future reporting periods.

New import tariffs implemented by the U.S. and other countries, as currently in effect, could have a material impact on our results in 2026 and future years. The impact of tariffs is dependent upon negotiations with customers and suppliers and other mitigation efforts and potential further changes in global trade policies, including higher tariffs in the U.S. or other countries.

We also assessed certain accounting matters as they relate to the ongoing conflict between Russia and Ukraine and the conflicts in the Middle East, including, but not limited to, our allowance for credit losses, the carrying value of long-lived assets, revenue recognition and the classification of assets. There was not a material impact to our Consolidated Financial Statements resulting from our assessment of these matters. We continue to assess the impact on our results of operations, financial position and overall performance as the situations develop and any broader implications they may have on the global economy.

Cash and Cash Equivalents. Cash and cash equivalents includes cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less.
Restricted Cash. In certain circumstances we are required to maintain cash deposits with certain banks with respect to contractual or other legal obligations, and therefore the use of these cash deposits for general operational purposes is restricted. Our restricted cash balances are $9 million and $21 million as of December 31, 2025 and 2024, respectively, which are primarily included in Other current assets in the Consolidated Balance Sheets.

Accounts Receivable. The Company records accounts receivable when the right to consideration becomes unconditional. We regularly evaluate the collectability of our accounts receivable and maintain reserves for expected credit losses. We do not believe that accounts receivable represent significant concentrations of credit risk because of the diversified portfolio of individual customers and geographic areas.

Trade receivables. Trade receivables as of December 31, 2025 and 2024 are $3.7 billion and $3.4 billion, respectively. Trade receivables include billed receivables which are currently due from customers and unbilled receivables where we have satisfied our performance obligations but the amounts due may not be currently billable to the customer under the terms of the contract. Amounts are billed as work progresses in accordance with agreed-upon contract terms, either at periodic intervals or upon achievement of contractual milestones.

Retainage. Current and long-term accounts receivable as of December 31, 2025 and 2024 include retainage of $58 million and $57 million, respectively. Retainage represents amounts that, pursuant to the applicable contract, are not due until after project completion and acceptance by the customer.

Customer Financing Notes Receivable. Through financing arrangements with our customers, we extend payment terms, which are generally not more than one year in duration. Customer financing notes receivable as of December 31, 2025 and 2024 are $47 million and $55 million, respectively, and are included in Accounts receivable, net as of December 31, 2025 and 2024.

Credit Losses. We are exposed to credit losses primarily through our net sales of products and services to our customers which are recorded as Accounts Receivable, net in the Consolidated Balance Sheets. We evaluate each customer's ability to pay through assessing customer creditworthiness, historical experience and current economic conditions through a reasonable forecast period. Factors considered in our evaluation of assessing collectability and risk include: underlying value of any collateral or security interests, significant past due balances, historical losses and existing economic conditions including country and political risk. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to the allowance for credit losses. We may require collateral or prepayment to mitigate credit risk.

We estimate expected credit losses of financial assets with similar risk characteristics. We determine an asset is impaired when our assessment identifies there is a risk that we will be unable to collect amounts due according to the contractual terms of the agreement. We monitor our ongoing credit exposure through reviews of customer balances against contract terms and due dates, current economic conditions and dispute resolution. Estimated credit losses are written off in the period in which the financial asset is no longer collectible.

The changes in allowance for credit losses related to Accounts receivable, net for 2025, 2024, and 2023 are as follows:

(dollars in millions)202520242023
Balance as of January 1$125 $130 $152 
Provision for expected credit losses33 34 29 
Write-offs charged against the allowance for expected credit losses(39)(32)(48)
Foreign exchange and other6 (7)(3)
Balance as of December 31$125 $125 $130 

Factoring. The Company may sell certain trade accounts and notes receivable to lending institutions primarily to manage credit risk. Financial assets sold under these arrangements are excluded from Accounts receivable, net in the Company’s Consolidated Balance Sheets at the time of sale if the Company has surrendered control over the related assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. Gains and losses stemming from transfers reported as sales are included in Interest expense (income), net in the accompanying Consolidated Statements of Operations.
Contract Assets and Liabilities. Contract assets and liabilities represent the difference in the timing of revenue recognition from receipt of cash from our customers and billings.

Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billings. Performance obligations partially satisfied in advance of customer billings are included in Contract assets, current. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. See Note 4, "Contract Assets and Liabilities" for further discussion of contract assets and liabilities.

Inventories. Inventories are stated at the lower of cost or estimated realizable value and are primarily based on a first-in, first-out method. Valuation write-downs for excess, obsolete and slow-moving inventory are estimated by comparing the inventory levels of individual parts to both future sales forecasts or production requirements and historical usage rates in order to identify inventory where the resale value or replacement value is less than inventoriable cost. See Note 5, "Inventories" for further details of the inventories by classification.

Fixed Assets. Fixed assets, including software capitalized for internal-use, are recorded at cost. Depreciation of fixed assets is computed over the fixed assets' useful lives on a straight-line basis, unless another systematic and rational basis is more representative of the fixed asset's pattern of use. See Note 6, "Fixed Assets" for further details of useful lives.

Internal Use Software. The Company capitalizes direct costs of services used in the development of, and external software acquired for use as, internal-use software. Amounts capitalized are amortized over a period ranging from three to five years, on a straight-line basis, unless another systematic and rational basis is more representative of the software's use. Amounts are reported as a component of Machinery and equipment.

Asset Retirement Obligations. The Company records the fair value of legal obligations associated with the retirement of tangible long-lived assets in the period in which the legal obligations are determined to exist. Upon initial recognition of a liability, the Company capitalizes the cost of the asset retirement obligation by increasing the carrying amount of the related long-lived asset. Over time, the liability is adjusted for changes in its present value and the capitalized cost is depreciated over the useful life of the related asset.

Fair Value of Financial Instruments. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:

Level I – Quoted prices for identical instruments in active markets.

Level II – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level III – Instruments whose significant value drivers are unobservable.

The carrying amount of current trade receivables, accounts payable and accrued expenses approximates fair value due to the short maturity (less than one year) of the instruments.

Equity Method Investments. Entities in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other assets in the Consolidated Balance Sheets. Under this method of accounting, our share of the net earnings or losses of the investee entity is included in Other income (expense), net in the Consolidated Statements of Operations since the activities of the investee entity are closely aligned with the operations of the Company. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period.
Business Combinations. We account for transactions that are classified as business combinations in accordance with the FASB ASC Topic 805: Business Combinations. Once a business is acquired, the fair values of the identifiable assets acquired and liabilities assumed are determined with the excess cost recorded to goodwill. As required, preliminary fair values are determined once a business is acquired, with the final determination of the fair values being completed within the one-year measurement period from the date of acquisition.

Goodwill, Intangible Assets and Long-Lived Assets. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Intangible assets consist of service portfolios, patents, trademarks/trade names, customer relationships and other intangible assets. Acquired intangible assets are recognized at fair value during acquisition accounting and then amortized to Cost of products and services sold and Selling, general and administrative over the applicable useful lives.

Goodwill and Indefinite-Lived Intangible Assets. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Goodwill and indefinite-lived intangible assets are subject to impairment testing annually or when a triggering event occurs using the guidance and criteria described in FASB ASC Topic 350: Intangibles – Goodwill and Other. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value.

We test goodwill for impairment at a level within the Company referred to as the reporting unit, which is one level below the operating segment level. When testing goodwill for impairment, the Company may first assess qualitative factors. If an initial qualitative assessment identified that it is more likely than not that the fair value of a reporting unit is less than its carrying value, additional quantitative testing is performed. The Company may also elect to skip the qualitative testing and proceed directly to the quantitative testing. If the quantitative testing indicates that goodwill is impaired, an impairment charge is recognized based on the difference between the reporting unit's carrying value and its fair value. When it is determined that a quantitative analysis is required, the Company primarily utilizes a discounted cash flow methodology to calculate the fair value of its reporting units. The Company completed its most recent annual impairment testing as of July 1, 2025, and determined in the qualitative assessment that quantitative testing is not necessary. There were no triggering events since the annual impairment test.

Finite-Lived Intangible Assets and Long-Lived Assets. Useful lives of finite-lived intangible assets are estimated based upon the nature of the intangible asset. These intangible assets are amortized based on the pattern in which the economic benefits of the intangible assets are consumed or if straight-line amortization approximates the pattern of economic benefit, a straight-line amortization method may be used. The range of estimated useful lives is as follows:

Purchased service portfolios
5 to 25 years
Patents, trademarks/trade names
4 to 40 years
Customer relationships and other
1 to 20 years

The Company evaluates the potential impairment of long-lived assets, including finite-lived intangible assets, whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. If the carrying value of other long-lived assets held and used exceeds the sum of the undiscounted expected future cash flows, the carrying value is written down to fair value. See Note 6, "Fixed Assets" and Note 7, "Business Acquisitions, Dispositions, Goodwill and Intangible Assets" for additional information regarding intangible assets and other long-lived assets.

Income Taxes. In the ordinary course of business, there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest expense has also been recognized. We recognize accrued interest related to unrecognized tax benefits in Interest expense (income), net. Penalties, if incurred, would be recognized as a component of Income tax expense.

The U.S. Tax Cuts and Jobs Act ("TCJA") subjects the Company to a tax on Global Intangible Low-Taxed Income ("GILTI"). GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. We account for GILTI as a period cost as incurred.
See Note 14, "Income Taxes" for additional information.

Revenue Recognition. We recognize revenue in accordance with FASB ASC Topic 606: Revenue from Contracts with Customers and its related amendments, (referred to, collectively, as "ASC 606"). The Company's revenue streams include new equipment, maintenance and repair, and modernization. New equipment, modernization and repair services revenue are recognized over time as we are enhancing an asset the customer controls. Maintenance revenue is recognized on a straight-line basis over the life of the maintenance contract.

New Equipment, Modernization and Repair Services. For new equipment and modernization transactions, equipment and installation are typically procured in a single contract providing the customer with a complete installed elevator or escalator unit. The combination of equipment and installation promises are typically a single performance obligation. For repair services, the customer typically contracts for specific short-term services which form a single performance obligation.

For these performance obligations, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress. Incurred costs represent work performed, which corresponds with and best depicts transfer of control or the enhancement of the customer’s assets. Contract costs included in the calculation are comprised of labor, materials, subcontractors’ costs or other direct costs and indirect costs, which include indirect labor costs. In developing our cost estimates, we utilize a combination of our historical cost experience and expected costs considering current circumstances. Specific to new equipment and modernization arrangements, the Company, based on project progression, reviews cost estimates for modification on significant contracts on a quarterly basis and when circumstances change, and for others, no less frequently than annually or when circumstances change and warrant a modification to a previous estimate. These estimates form the basis for the amount of revenue to be recognized and include the latest updated total transaction price, costs and risks for each contract. These estimates for our ongoing contracts may materially change due to the change and completions of the contract scopes, cost estimates and customers' plans, among other factors.

For performance obligations recognized under the cost to cost method, we record changes in contract estimates using the cumulative catch-up method. Modifications are recognized as a cumulative catch-up or treated as a separate accounting contract if the modification adds distinct goods or services and the modification is priced at its stand-alone selling price.

Maintenance. Our customers purchase maintenance contracts which include services such as required periodic maintenance procedures, preventive services and stand ready obligations to remediate issues with the elevator/escalator when and if they arise. Given the continuous nature of these services throughout the year, we recognize revenue on maintenance contracts on a straight-line basis which aligns with the cost profile of these services. Contractual changes are typically recognized prospectively as most modifications are extensions of the existing arrangement.

Transaction Price Considerations. Our contracts with customers typically include fixed payments to Otis. These fixed payments are generally received as we progress the performance obligations to the customers. As a result, we have not identified any significant financing elements in our contracts, and our contracts do not have significant estimates related to variable consideration except in the case of a project having an underlying performance issue, which is rare. In situations where multiple performance obligations in a single contract exist (e.g., both new equipment and maintenance), the transaction price is allocated to each performance obligation in proportion to its stand-alone selling price. Estimates are made to account for changes in transaction prices attributable to pricing disputes that occur subsequent to the inception of contracts, based upon historical experience and the status of contracts.

Certain Costs to Obtain or Fulfill Contracts. Certain costs to obtain or fulfill a contract with a customer must be capitalized, to the extent recoverable from the associated contract margin, and subsequently amortized as the products or services are delivered to the customer. Sales commissions related to new equipment, modernization and maintenance contracts, excluding renewals, are capitalized as contract fulfillment costs and are amortized consistent with the pattern of transfer of the goods or services. Customer contract costs, which do not qualify for capitalization as contract fulfillment costs, are expensed as incurred.

Loss Contracts. Loss provisions on contracts are recognized to the extent that estimated contract costs exceed the estimated consideration from the products or services contemplated under the contractual arrangement. For new commitments, we generally record loss provisions at contract inception. For existing commitments, anticipated losses on contractual arrangements are recognized in the period in which losses become probable.
Remaining Performance Obligations ("RPO"). RPO represents the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied. As of December 31, 2025, our total RPO was approximately $19.1 billion. Of the total RPO as of December 31, 2025, we expect approximately 75% will be recognized as sales over the following 24 months.

Additional disclosure required by ASC 606 is provided in Note 21, "Segment Financial Data", including disaggregation of revenue into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Supplier Finance Programs. Certain Otis subsidiaries participate in supplier finance programs, under which we agree to pay third-party financial institutions the stated amounts of confirmed invoices from suppliers on the original due date of the invoices, while the participating suppliers generally have the ability to sell, or otherwise pledge as collateral, their receivables from the Company to the participating financial institutions. Our obligations to suppliers, including the amounts due and scheduled payment dates, are not impacted by the suppliers' decisions to sell their receivables to the financial institutions, or otherwise pledge their receivables as collateral, under these arrangements. The Company is not a party to the arrangements between the suppliers and the financial institutions, and the Company's payment terms to the financial institutions, including the timing and amount of payments, are based on the original supplier invoices.

Based on the applicable supplier agreements, the payment terms of these supplier invoices typically range between 30 and 240 days from the invoice date.

The outstanding obligations confirmed by the Company as valid to the financial institutions under our supplier finance programs were $831 million and $714 million as of December 31, 2025 and 2024, respectively, including $80 million and $67 million as of December 31, 2025 and 2024, respectively, related to programs with payment terms of 240 days from the invoice date. These obligations are included in Accounts payable in the Consolidated Balance Sheets, and all activity related to the obligations is presented within operating activities in the Consolidated Statements of Cash Flows.

The Company or the financial institutions may terminate the agreements with advanced notice. Otis has pledged no assets in connection with its supplier finance programs.

The changes in outstanding obligations confirmed as valid by the Company under its supplier finance programs for 2025 and 2024 are as follows:

(dollars in millions)20252024
Confirmed obligations outstanding as of January 1$714 $627 
Invoices confirmed during the year2,064 2,118 
Confirmed invoices paid during the year(1,970)(2,013)
Foreign currency exchange impact23 (18)
Confirmed obligations outstanding as of December 31$831 $714 

Self-Insurance. The Company is primarily self-insured for a number of risks including, but not limited to, workers’ compensation, general liability, automobile liability and employee-related healthcare benefits. The Company has obtained insurance coverage for amounts exceeding individual and aggregate loss limits. The Company accrues for known future claims and incurred but not reported losses within Accrued liabilities and Other long-term liabilities in the Consolidated Balance Sheets, totaling $240 million and $238 million as of December 31, 2025 and 2024, respectively.

Derivatives and Hedging Activity. We have used derivative instruments, principally forward contracts, to help manage certain foreign currency and commodity price exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. By their nature, all financial instruments involve market and credit risks. We enter into derivative and other financial instruments with major investment-grade financial institutions and have policies to monitor the credit risk of those counterparties. We limit counterparty exposure and concentration of risk by diversifying counterparties. While there can be no assurance, we do not anticipate any material non-performance by any of these counterparties.
Designated Derivative Instruments. Derivatives used for hedging purposes may be designated and effective as a hedge of the identified risk exposure at the inception of the contract. All derivative instruments are recorded in the Consolidated Balance Sheets at fair value. Derivatives are used to hedge foreign currency denominated balance sheet items and commodity prices for materials recognized in cost of sales, and are reported directly in earnings along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate. Gains and losses on derivatives designated as cash flow hedges are recorded in Other comprehensive income (loss), net of tax and reclassified to earnings as a component of product sales or expenses, as applicable, when the hedged transaction occurs. Gains and losses on derivatives designated as cash flow hedges are recorded in Other operating activities, net within the Consolidated Statement of Cash Flows until reclassification to earnings. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded in earnings in the period it occurs.

Additional information pertaining to net investment hedging is included in Note 16, "Financial Instruments".

Non-Designated Derivative Instruments. To the extent the hedge accounting criteria are not applied, the foreign currency forward contracts and commodity price contracts are utilized as economic hedges and changes in the fair value of these contracts are recorded in earnings in the period in which they occur. Additional information pertaining to these contracts is included in Note 16, "Financial Instruments".

In addition, the Company periodically enters into sales contracts denominated in currencies other than the functional currency of the parties to the transaction. The Company accounts for these transactions separately valuing the embedded derivative component of these contracts. The changes in the fair value of these embedded derivatives are immaterial in 2025, 2024 and 2023.

Environmental. Environmental investigatory, remediation, operating and maintenance costs are accrued when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including current laws, regulations and prior remediation experience. Where no amount within a range of estimates is more likely, the minimum is accrued. Liabilities with fixed or reliably determinable future cash payments are discounted. Accrued environmental liabilities are not reduced by potential insurance reimbursements. See Note 20, "Contingent Liabilities" for additional details on the environmental remediation activities.

Research and Development. These costs are expensed in the period incurred and are shown on a separate line of the Consolidated Statements of Operations. Research and development expenses, covering research and the advancement of potential new and improved products and their uses, primarily include salaries and other employment costs.

Other Income (Expense), Net. Other income (expense), net includes the impact of changes in the fair value and settlement of certain derivatives, gains or losses on sale of businesses and fixed assets, earnings from equity method investments, fair value changes on marketable securities, impairments, UpLift transformation costs, Separation-related adjustments, gains on insurance recoveries and certain other infrequent operating income and expense items. See Note 15, "Restructuring and Transformation Costs" for additional details on UpLift transformation costs.

Foreign Exchange. We conduct business in many different currencies and, accordingly, are subject to the inherent risks associated with foreign exchange rate movements. The financial position and results of operations of substantially all of our foreign subsidiaries are measured using the local currency as the functional currency. Foreign currency denominated assets and liabilities are translated into U.S. dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries are deferred within Accumulated other comprehensive income (loss).

Pension and Postretirement Obligations. Guidance under FASB ASC Topic 715: Compensation – Retirement Benefits requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Under this guidance, actuarial gains and losses, prior service costs or credits and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in Other comprehensive income (loss), net of tax effects, until they are amortized as a component of net periodic benefit cost. See Note 11, "Employee Benefit Plans" for additional information.
Additional Paid-in Capital. Additional paid-in capital includes the value of stock-based award activity, as well as the difference between the cost of acquiring the Noncontrolling interest in consolidated subsidiaries and Otis' carrying value of the Noncontrolling interest associated with those subsidiaries.

Noncontrolling Interest. Ownership interest in the Company's consolidated subsidiaries held by parties other than the Company are presented separately from Shareholders' Equity (Deficit) as "Noncontrolling interest" within equity in the Consolidated Balance Sheets. The amount of net income attributable to Otis Worldwide Corporation and the noncontrolling interest are both presented in the Consolidated Statements of Operations.

All noncontrolling interest with redemption features, such as put options or other contractual obligations to acquire the noncontrolling interest, that are not solely within our control are redeemable noncontrolling interest. Redeemable noncontrolling interest are reported in the mezzanine section of the Consolidated Balance Sheets, between Liabilities and Shareholders' Equity (Deficit), at the greater of redemption value or initial carrying value.

The activity attributable to noncontrolling interest and redeemable noncontrolling interest for 2025, 2024 and 2023 is presented in the Consolidated Statements of Changes in Equity.

Separation from UTC and Related Costs. The Separation, as further described in Note 1, "Business Overview", was completed pursuant to a Separation and Distribution Agreement ("Separation Agreement") and other agreements with our former parent, UTC, and Carrier Global Corporation ("Carrier"), related to the Separation, including but not limited to a tax matters agreement (the "Tax Matters Agreement" or "TMA").

We entered into the TMA with our former parent UTC and Carrier that governs the parties’ respective rights, responsibilities and obligations with respect to tax matters (including responsibility for taxes, entitlement to refunds, allocation of tax attributes, preparation of tax returns, control of tax contests and other tax matters). Subject to certain exceptions set forth in the TMA, Otis generally is responsible for federal, state and foreign taxes imposed on a separate return basis on Otis (or any of its subsidiaries) with respect to taxable periods (or portions thereof) that ended on or prior to the date of the Distribution. The TMA provides special rules that allocate responsibility for tax liabilities arising from a failure of the Separation transactions to qualify for tax-free treatment based on the reasons for such failure.

Accounting Pronouncements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"), which provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Additionally, in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 ("ASU 2022-06"), which allows ASU 2020-04 to be adopted and applied prospectively to contract modifications made on or before December 31, 2024. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements.

In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 450-50): Disclosure of Supplier Finance Program Obligations, which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about obligations outstanding at the end of the reporting period, including a rollforward of those obligations. The guidance does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations. ASU 2022-04 is effective for fiscal years beginning after December 15, 2022, except for the disclosure of rollforward information, which is effective for fiscal years beginning after December 15, 2023. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements, as disclosed in Note 2, "Summary of Significant Accounting Policies" under the heading "Supplier Finance Programs".

In August 2023, the FASB issued ASU 2023-05, Business Combinations - Joint Ventures Formations (Subtopic 805-60): Recognition and Initial Measurement ("ASU 2023-05"), which requires that joint ventures, upon formation, apply a new basis of accounting by initially measuring assets and liabilities at fair value. The amendments in ASU 2023-05 are effective for joint ventures that are formed on or after January 1, 2025. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. We adopted this standard effective for the reporting period December 31, 2024. The adoption of this standard resulted in additional disclosure. See Note 21, "Segment Financial Data" for further details.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This update also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. The adoption of this ASU resulted in additional annual disclosure, but did not impact our consolidated financial position, results of operations, or cash flows.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this update require disclosure, in the notes to financial statements, on disaggregated information about specific categories underlying certain income statement expense line items that are considered relevant, including the purchase of inventory, employee compensation, depreciation, and intangible asset amortization. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. Adoption of this ASU will result in additional disclosure, but will not impact our consolidated financial position, results of operations, or cash flows.

In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. The amendments in this update require an entity involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a VIE that meets the definition of a business to consider the factors in the ASU to determine which entity is the accounting acquirer. The amendments in ASU 2025-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. We are currently evaluating the impact of this standard, however; we do not expect it to have a material impact on our Consolidated Financial Statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this Update provide a practical expedient when developing reasonable and supportable forecasts as part of estimating expected credit losses, allowing entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The amendments in ASU 2025-05 are effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. We are currently evaluating the impact of this standard, however; we do not expect it to have a material impact on our Consolidated Financial Statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this update remove all references to prescriptive and sequential software development stages (referred to as "project stages") throughout Subtopic 350-40. The amendments in this update specify that the disclosures in Subtopic 360-10, Property, Plant, and Equipment—Overall, are required for all capitalized internal-use software costs, regardless of how those costs are presented in the financial statements. Additionally, the amendments clarify that the intangibles disclosures in paragraphs 350-30-50-1 through 50-3 are not required for capitalized internal-use software costs. The amendments in ASU 2025-06 are effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of this standard.

In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. The amendments in this update exclude from derivative accounting non-exchange-traded contracts with underlyings that are based on operations or activities specific to one of the parties to the contract. The amendments in ASU 2025-07 are effective for fiscal years beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of this standard.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. Consistent with the original objective of Update 2017-12, the objective of this Update is to more closely align hedge accounting with the economics of an entity’s risk management activities. The amendments in this Update are intended to better reflect those strategies in financial reporting by enabling entities to achieve and maintain hedge accounting for highly effective economic hedges of forecasted transactions. The amendments in ASU 2025-09 apply to any entity that elects to apply hedge accounting in accordance with Topic 815 and are effective for fiscal years beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of this standard.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The amendments in this Update result in a comprehensive list of interim disclosures that are required by GAAP. In developing the list of disclosures required by other Topics, the Board focused on identifying the interim disclosures that are currently required under GAAP. The objective of the amendments is to provide clarity about the current requirements, rather than evaluate whether to expand or reduce interim disclosure requirements. The amendments in ASU 2025-11 are effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. We are currently evaluating the impact of this standard.

Other new accounting pronouncements issued but not effective until after December 31, 2025 did not and are not expected to have a material impact on our financial position, results of operations or cash flows.
v3.25.4
Earnings per Share
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings per Share Earnings per Share
(dollars in millions, except per share amounts; shares in millions)20252024
2023
Net income attributable to common shareholders$1,384 $1,645 $1,406 
Basic weighted average number of shares outstanding392.8 401.7 411.4 
Stock awards and equity units (share equivalent) 2.1 2.7 3.2 
Diluted weighted average number of shares outstanding394.9 404.4 414.6 
Earnings Per Share of Common Stock:
Basic$3.52 $4.10 $3.42 
Diluted$3.50 $4.07 $3.39 

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock appreciation rights and stock options, when the average market price of the Common Stock is lower than the exercise price of the related stock awards during the period because the effect would be anti-dilutive. In addition, the computation of diluted earnings per share excludes the effect of the potential exercise of stock awards when the awards' assumed proceeds exceed the average market price of the common shares during the period. Lastly, the computations of diluted earnings per share include outstanding awards granted prior to the Separation from UTC and converted upon the Separation, in accordance with the Employee Matters Agreement. There were 0.4 million, 0.7 million and 1.0 million of anti-dilutive stock awards excluded from the computation for 2025, 2024 and 2023 respectively.

The impact of redeemable noncontrolling interest to Net income attributable to common shareholders was immaterial for 2025, 2024, and 2023.
v3.25.4
Contract Assets and Liabilities
12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Contract Assets and Liabilities Contract Assets and Liabilities
Contract assets reflect revenue recognized in advance of customer billings. Contract liabilities are recognized when a customer pays consideration, or we have an unconditional right to receive consideration, in advance of the satisfaction of performance obligations under the contract. We receive payments from customers based on the terms established in our contracts, which are payments in advance of performing work, progress payments as we perform contract work over time, or in some cases, payments upon completion of work.
Total Contract assets and Contract liabilities as of December 31, 2025 and 2024 are as follows:

(dollars in millions)20252024
Contract assets, current$699 $706 
Total contract assets699 706 
Contract liabilities, current(2,611)(2,598)
Contract liabilities, noncurrent (included within Other long-term liabilities)(29)(38)
Total contract liabilities (2,640)(2,636)
Net contract liabilities$(1,941)$(1,930)

Contract assets decreased by $7 million and Contract liabilities increased by $4 million during 2025 due to the progression of current contracts and timing of billing on customer contracts, net of the foreign exchange increases of $33 million and $120 million, respectively.

During 2025, 2024 and 2023, we recognized revenue of approximately $2.0 billion each year related to the contract liabilities as of January 1, 2025, 2024, and 2023.
v3.25.4
Inventories
12 Months Ended
Dec. 31, 2025
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories consisted of the following as of December 31:

(dollars in millions)20252024
Raw materials and work-in-process$139 $134 
Finished goods474 423 
Total$613 $557 

Raw materials and work-in-process and finished goods are net of valuation write-downs of $84 million and $82 million as of December 31, 2025 and 2024, respectively.
v3.25.4
Fixed Assets
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Fixed Assets Fixed Assets
Fixed assets consisted of the following as of December 31:

(dollars in millions)Estimated Useful Lives20252024
Land$39 $38 
Buildings and improvements
20 - 40 Years
498 516 
Machinery and equipment
3 - 12 Years
1,311 1,234 
Assets under construction156 105 
2,004 1,893 
Less: Accumulated depreciation(1,261)(1,192)
Total$743 $701 
Depreciation expense was $113 million, $120 million and $126 million in 2025, 2024 and 2023, respectively.
v3.25.4
Business Acquisitions, Dispositions, Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Acquisitions, Dispositions, Goodwill and Intangible Assets Business Acquisitions, Dispositions, Goodwill and Intangible Assets
Business Acquisitions. Our acquisitions of businesses and intangible assets, net of cash, totaled $109 million, $87 million and $36 million (including debt assumed) in 2025, 2024 and 2023, respectively, and were primarily in our Service segment. Transaction costs incurred were not considered significant.
Goodwill. Changes in our Goodwill balances in 2025 were as follows:

(dollars in millions)
Balance as of
December 31, 2024
Goodwill Resulting
From Business Combinations
Foreign Currency
Translation 
and Other
Balance as of
December 31, 2025
New Equipment$277 $ $17 $294 
Service1,271 65 65 1,401 
Total$1,548 $65 $82 $1,695 

Changes in our Goodwill balances in 2024 were as follows:

(dollars in millions)
Balance as of
December 31, 2023
Goodwill Resulting
From Business Combinations
Foreign Currency
Translation 
and Other
Balance as of
December 31, 2024
New Equipment$295 $— $(18)$277 
Service1,293 46 (68)1,271 
Total$1,588 $46 $(86)$1,548 

Intangible Assets. Identifiable intangible assets are comprised of the following:

20252024
(dollars in millions)Gross AmountAccumulated
Amortization
Gross AmountAccumulated
Amortization
Amortized:
Purchased service portfolios$2,133 $(1,818)$1,930 $(1,640)
Patents, trademarks/trade names19 (16)18 (16)
Customer relationships and other61 (43)52 (39)
2,213 (1,877)2,000 (1,695)
Unamortized:
Trademarks and other7  — 
Total$2,220 $(1,877)$2,006 $(1,695)

Amortization of intangible assets was $62 million in 2025 and 2024, and $67 million in 2023. Excluding the impact of acquisitions, currency translation adjustments and the reclassification of $16 million of intangible assets, net to assets held for sale in 2024, there were no other significant changes in our Intangible Assets during 2025, 2024 and 2023.

The estimated future amortization of intangible assets over the next five years is as follows:

(dollars in millions)20262027202820292030
Future amortization$46 $40 $35 $32 $29 

Disposals and Held for Sale Assets and Liabilities. Assets held for sale were $5 million and $38 million as of December 31, 2025 and 2024, respectively. Liabilities held for sale were $9 million as of December 31, 2024. There were no liabilities held for sale as of December 31, 2025. These balances are included in Other current assets and Accrued liabilities in the Consolidated Balance Sheets, respectively.

During 2025, we sold one of our non-U.S. subsidiaries, primarily related to the Service segment. The Company recorded a total pre-tax loss on sale of $28 million, of which $10 million was recorded in 2025, and $18 million was recorded in 2024, in Other income (expenses), net in the Consolidated Statements of Operations.
v3.25.4
Borrowings and Lines of Credit
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Borrowings and Lines of Credit Borrowings and Lines of Credit
Short-term borrowings consisted of the following as of December 31:

(dollars in millions)20252024
Commercial paper$ $— 
Other borrowings215 51 
Total short-term borrowings$215 $51 

Commercial Paper and Other Borrowings. As of December 31, 2025, there were no borrowings outstanding under the Company's $1.5 billion commercial paper programs. We use our commercial paper borrowings for general corporate purposes including to finance acquisitions, pay dividends, repurchase shares and for debt refinancing. The need for commercial paper borrowings may arise if the use of domestic cash for general corporate purposes exceeds the sum of domestic cash generation and foreign cash repatriated to the U.S. The main increase in Other borrowings was due to borrowings for the purchase of the outstanding shares of Otis Electric from the non-controlling shareholder. See Note 1 "Business Overview" for additional information on the acquisition of the non-controlling interest.

Long-Term Debt. As of December 31, 2025, we have a credit agreement ("Credit Agreement") with various banks providing for a $1.5 billion unsecured, unsubordinated five-year revolving credit facility, effective August 8, 2025, with an interest rate on US dollar denominated borrowings at Otis' option of the Term Secured Overnight Financing Rate ("SOFR") or a base rate, and an interest rate on Euro denominated borrowings at Otis' option of the EURIBO rate or a daily simple Euro Short Term Rate ("ESTR"), plus, in each case, an applicable margin. The applicable margin initially is 1.000% for Term SOFR rate, EURIBO rate and daily simple ESTR rate borrowings, and 0.000% for base rate borrowings, and can fluctuate based on reference to Otis' public debt ratings, as specified in the Credit Agreement. As of December 31, 2025, there were no borrowings under the revolving credit facility. The undrawn portion of the revolving credit facility serves as a backstop for the issuance of commercial paper. On August 8, 2025, we terminated all commitments outstanding under the previous credit agreement, which was scheduled to expire on March 10, 2028.

On August 16, 2023, we issued $750 million unsecured, unsubordinated five-year notes due August 16, 2028 (the "Notes") with an interest rate of 5.25%. The net proceeds of the Notes were used to fund the repayment of our outstanding commercial paper borrowings and to fund the repayment at maturity of the €500 million 0.000% Euro Notes due November 12, 2023, with the remainder used for other general corporate purposes.

On November 19, 2024, we issued $600 million unsecured, unsubordinated seven-year notes due November 19, 2031 with an interest rate of 5.125% and €850 million Euro denominated ($899 million), unsecured, unsubordinated three-year notes due November 19, 2027 with an interest rate of 2.875%. A portion of the net proceeds of the notes were used to fund the repayment at maturity of the $1.3 billion 2.056% Notes that were due on April 5, 2025. The remainder of the proceeds were used to fund the repayment of the Company's commercial paper borrowings and for other general corporate purposes.

On September 4, 2025, we issued $500 million unsecured, unsubordinated ten-year notes due September 4, 2035 with an interest rate of 5.131%. A portion of the proceeds will be used to fund the repayment at maturity of the Japanese Yen denominated 0.370% Notes due March 18, 2026. The remainder of the proceeds were used to fund the repayment of certain of our commercial paper borrowings.

Our revolving credit agreement and indentures contain affirmative and negative covenants customary for financings of these types that, among other things, limit the Company's and its subsidiaries' ability to incur additional liens, to make certain fundamental changes and to enter into sale and leaseback transactions. In addition, the revolving credit agreement requires that we maintain a maximum consolidated leverage ratio, as defined in the agreement. The revolving credit agreement and indentures also contain events of default customary for financings of these types. The Company is in compliance with all covenants in the revolving credit agreement and the indentures governing all notes as of December 31, 2025.
Long-term debt, including current portion, consisted of the following as of December 31:

(dollars in millions)20252024
2.056% notes due 2025
$ $1,300 
0.370% notes due 2026 (¥21.5 billion principal value)
137 137 
0.318% notes due 2026 (€600 million principal value)
705 624 
2.293% notes due 2027
500 500 
2.875% notes due 2027 (€850 million principal value)
999 885 
5.250% notes due 2028
750 750 
2.565% notes due 2030
1,500 1,500 
5.125% notes due 2031
600 600 
0.934% notes due 2031 (€500 million principal value)
588 520 
5.131% notes due 2035
500 — 
3.112% notes due 2040
750 750 
3.362% notes due 2050
750 750 
Other (including finance leases)6 
Total principal long-term debt7,785 8,322 
Other (discounts and debt issuance costs)(44)(49)
Total long-term debt7,741 8,273 
Less: current portion841 1,300 
Long-term debt, net of current portion$6,900 $6,973 

We may redeem any series of notes at our option pursuant to certain terms.

Debt discounts and debt issuance costs are presented as a reduction of debt in the Consolidated Balance Sheets and are amortized as a component of interest expense over the term of the related debt using the effective interest method. The Consolidated Statements of Operations for 2025, 2024 and 2023 reflects the following:

(dollars in millions)202520242023
Debt issuance costs amortization$10 $$
Total interest expense on debt217 183 155 

The unamortized debt issuance costs as of December 31, 2025 and 2024 were $41 million and $45 million, respectively.

The average maturity of our long-term debt as of December 31, 2025 is approximately 6.7 years. The average interest expense rate on our borrowings as of December 31, 2025 and 2024 was as follows:

20252024
Short-term commercial paper %— %
Total long-term debt3.0 %2.7 %

The average interest expense rate on our borrowings for 2025, 2024 and 2023 was as follows:

202520242023
Short-term commercial paper3.8 %5.4 %5.1 %
Total long-term debt2.8 %2.5 %2.1 %
The schedule of principal payments required on long-term debt, excluding finance leases, for the next five years and thereafter is:

(dollars in millions)Principal Payments
2026$842 
20271,499 
2028750 
2029— 
20301,500 
Thereafter3,188 
Total $7,779 
v3.25.4
Accrued Liabilities
12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Accrued Liabilities Accrued Liabilities
Accrued liabilities consisted of the following as of December 31:

(dollars in millions)20252024
Accrued salaries, wages and employee benefits$605 $579 
Operating lease liabilities158 120 
Accrued interest129 147 
Contractual indemnity obligations113 244 
VAT and other non-income tax payables109 123 
Accrued income taxes payable75 75 
Other liabilities658 633 
Total$1,847 $1,921 

Accrued interest primarily consists of interest accrued for uncertain tax positions, as well as $67 million and $64 million of interest accrued for borrowings as of December 31, 2025 and 2024, respectively, as described in Note 8, "Borrowings and Lines of Credit".

As of December 31, 2025 and 2024, Contractual indemnity obligations includes a $56 million and $194 million indemnity payable to RTX, respectively, resulting from the outcome of the German tax litigation as described in Note 20, "Contingent Liabilities".
v3.25.4
Other Long-Term Liabilities
12 Months Ended
Dec. 31, 2025
Other Liabilities Disclosure [Abstract]  
Other Long-Term Liabilities Other Long-Term Liabilities
Other long-term liabilities consisted of the following as of December 31:

(dollars in millions)20252024
General, product and auto liability$136 $137 
Employee benefits98 92 
Contractual indemnity obligations23 80 
Other liabilities72 74 
Total$329 $383 

The Contractual indemnity obligations consist of payables to RTX, resulting from the TMA. See Note 2, "Summary of Significant Accounting Policies" for further details.
v3.25.4
Employee Benefit Plans
12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
The Company sponsors numerous single-employer domestic and foreign employee benefit plans.

Employee Savings Plans. We sponsor various employee savings plans. Our contributions to employer-sponsored defined contribution plans were $74 million, $71 million and $65 million for 2025, 2024, and 2023, respectively.

Pension Plans. We sponsor both funded and unfunded domestic and foreign defined benefit pension plans that cover a large number of our employees. While we sponsor domestic pension plans that provide retirement benefits to certain employees, they are not a material component of the projected benefit obligation. Our plans use a December 31 measurement date consistent with our fiscal year.

(dollars in millions)20252024
Change in benefit obligation:
Beginning balance$949 $957 
Service cost34 32 
Interest cost32 32 
Actuarial (gain) loss(47)25 
Benefits paid(33)(46)
Net settlement, curtailment and special termination benefits(32)(9)
Other94 (42)
Ending balance$997 $949 
Change in plan assets:
Beginning balance$637 $609 
Actual return on plan assets48 57 
Employer contributions42 51 
Benefits paid(33)(46)
Settlements(32)(9)
Other51 (25)
Ending balance$713 $637 
Funded status:
Fair value of plan assets$713 $637 
Benefit obligations(997)(949)
Funded status of plan$(284)$(312)
Amounts recognized in the Consolidated Balance Sheets consist of:
Noncurrent assets$130 $115 
Current liability(30)(28)
Noncurrent liability(384)(399)
Net amount recognized$(284)$(312)
Amounts recognized in Accumulated other comprehensive loss consist of:
Net actuarial loss$38 $98 
Prior service cost5 
Net amount recognized$43 $99 

The amounts included in "actuarial (gain) loss" in the above table are primarily due to changes in discount rate assumptions driven by changes in corporate bond yields. The amounts included in "Other" in the above table primarily reflect the impact of foreign exchange translation, primarily for plans in Australia, Germany, Japan, South Korea and Switzerland.
In 2025, 2024 and 2023 we made cash contributions to our defined benefit pension plans of $42 million, $51 million and $48 million, respectively.

Information for pension plans with accumulated benefit obligations or projected benefit obligations in excess of plan assets as of December 31 are as follows:

(dollars in millions)20252024
Pension plans with accumulated benefit obligations in excess of plan assets:
Projected benefit obligation$411 $397 
Accumulated benefit obligation367 353 
Fair value of plan assets3 
Pension plans with projected benefit obligations in excess of plan assets:
Projected benefit obligation$533 $707 
Accumulated benefit obligation455 609 
Fair value of plan assets119 280 

The accumulated benefit obligation for all defined benefit pension plans was approximately $0.9 billion and $0.8 billion as of December 31, 2025 and 2024, respectively.

The components of the net periodic pension cost are as follows:

(dollars in millions)202520242023
Service cost$34 $32 $29 
Interest cost32 32 33 
Expected return on plan assets(35)(34)(31)
Recognized actuarial net loss3 (1)
Net settlement, curtailment and special termination benefits loss (gain)2 
Net periodic pension cost – employer$36 $32 $34 

Other changes in plan assets and benefit obligations recognized in other comprehensive loss are as follows:

(dollars in millions)202520242023
Current year actuarial (gain) loss$(60)$$93 
Prior service cost arising during period5 — — 
Amortization of actuarial gain (loss)(3)— 
Net settlement and curtailment (loss) gain(3)(1)(4)
Other5 (6)
Total recognized in other comprehensive (income) loss$(56)$(5)$91 
Net recognized in net periodic pension cost and other comprehensive (income) loss$(20)$27 $125 

The amounts included in "Other" in the above table primarily reflect the impact of foreign exchange translation, primarily for plans in Canada, Germany, Spain, and Switzerland.
Major assumptions used in determining the benefit obligation and net cost for pension plans are presented in the following table as weighted-averages:

Benefit ObligationNet Cost
20252024202520242023
Discount rate3.6 %3.3 %3.3 %3.4 %3.8 %
Salary scale3.0 %3.1 %3.1 %3.2 %3.1 %
Expected return on plan assets — 5.3 %5.3 %5.1 %
Interest crediting rate2.0 %1.8 %1.8 %1.7 %2.1 %

The weighted-average discount rates used to measure pension benefit obligations and net costs are set by reference to specific analyses using each plan’s specific cash flows and then compared to high-quality bond indices for reasonableness.

In determining the expected return on plan assets, we consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes, and economic and other indicators of future performance. In addition, we may consult with, and consider the opinions of, financial and other professionals in developing appropriate capital market assumptions. Return projections are also validated using a simulation model that incorporates yield curves, credit spreads and risk premiums to project long-term prospective returns.

The plans’ investment management objectives include providing the liquidity and asset levels needed to meet current and future benefit payments, while maintaining a prudent degree of portfolio diversification considering interest rate risk and market volatility. Globally, investment strategies target a mix of approximately 50% of growth-seeking assets and 50% of income-generating and hedging assets using a wide diversification of asset types, fund strategies and investment managers. The growth seeking allocation consists of global public equities in developed and emerging countries, and alternative-asset class strategies. Within the income-generating assets, the fixed income portfolio consists of mainly government and broadly diversified high-quality corporate bonds.

The fair values of pension plan assets as of December 31, 2025 by asset category are as follows:

(dollars in millions)Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Not Subject to LevelingTotal
Asset category
Public equities:
Global Equity Commingled Funds (1)
$86 $3 $ $ $89 
Global Equity Funds at net asset value (5)
   154 154 
Fixed income securities:
Governments22 41   63 
Corporate Bonds50 45   95 
Fixed income securities at net asset value (5)
   60 60 
Real estate (2) (5)
14 20  7 41 
Other (3) (5)
7 140  26 173 
Cash and cash equivalents (4) (5)
31 2  7 40 
Total$210 $251 $ $254 715 
Other assets and liabilities (6)
(2)
Total as of December 31, 2025$713 

(1) Represents investments in mutual funds and investments in commingled funds that invest primarily in common stocks.
(2) Represents investments in real estate including commingled funds.
(3) Represents insurance contracts and global-balanced-risk commingled funds consisting mainly of equity, bonds and some commodities.
(4) Represents short-term commercial paper, bonds and other cash or cash-like instruments.
(5) In accordance with FASB ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets.
(6) Represents trust receivables and payables that are not leveled.

The fair values of pension plan assets as of December 31, 2024 by asset category are as follows:

(dollars in millions)Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Not Subject to LevelingTotal
Asset category
Public equities:
Global Equity Commingled Funds (1)
$72 $$— $— $75 
Global Equity Funds at net asset value (5)
— — — 143 143 
Fixed income securities:
Governments14 — — 16 
Corporate Bonds44 — — — 44 
Fixed income securities at net asset value (5)
— — — 140 140 
Real estate (2) (5)
12 17 — 38 
Other (3) (5)
122 — 23 150 
Cash and cash equivalents (4) (5)
27 — — 30 
Total$174 $144 $— $318 $636 
Other assets and liabilities (6)
Total as of December 31, 2024$637 

(1) Represents investments in mutual funds and investments in commingled funds that invest primarily in common stocks.
(2) Represents investments in real estate including commingled funds.
(3) Represents insurance contracts and global-balanced-risk commingled funds consisting mainly of equity, bonds and some commodities.
(4) Represents short-term commercial paper, bonds and other cash or cash-like instruments.
(5) In accordance with FASB ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets.
(6) Represents trust receivables and payables that are not leveled.

Quoted market prices are used to value investments when available. Investments in securities traded on exchanges, including listed futures and options, are valued at the last reported sale prices on the last business day of the year or, if not available, the last reported bid prices. Fixed income securities are primarily measured using a market approach pricing methodology, where observable prices are obtained by market transactions involving identical or comparable securities of issuers with similar credit ratings. Over-the-counter securities and government obligations are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes. Temporary cash investments are stated at cost, which approximates fair value.

We expect to make total contributions of approximately $45 million to our global defined benefit pension plans in 2026, including benefit payments to be paid directly from corporate assets.

Benefit payments, including amounts to be paid from corporate assets, and reflecting expected future service, as appropriate, are expected to be paid as follows: $79 million in 2026, $74 million in 2027, $75 million in 2028, $76 million in 2029, $80 million in 2030, and $391 million from 2031 through 2035.
Postretirement Benefit Plans. We sponsor postretirement benefit plans that provide health benefits to eligible retirees. The postretirement plans are unfunded. The benefit obligation was $7 million and $6 million as of December 31, 2025, and 2024, respectively. The net periodic cost was less than $1 million for 2025, 2024 and 2023. Other comprehensive losses recognized related to changes in benefit obligations were less than $1 million in 2025 and $1 million in 2024.

The projected benefit obligation discount rate was 6.8% as of December 31, 2025 and 2024. The Net Cost discount rate was 6.8%, 7.2% and 7.0% for 2025, 2024 and 2023, respectively.

Benefit payments, including amounts to be paid from corporate assets, and reflecting expected future service, as appropriate, are expected to be paid as follows: $1 million each year from 2026 through 2030, and $3 million from 2031 through 2035.

Multiemployer Benefit Plans. We contribute to various domestic and international multiemployer defined benefit pension plans. The risks of participating in these multiemployer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. Lastly, if we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans a withdrawal liability based on the underfunded status of the plan.

Our participation in these plans for the annual periods ended December 31 is outlined in the table below. Unless otherwise noted, the most recent Pension Protection Act ("PPA") zone status available in 2025 and 2024 is for the plan’s year-end at June 30, 2024 and June 30, 2023, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Our significant plan is in the green zone which represents a plan that is at least 80% funded and does not require a financial improvement plan ("FIP") or a rehabilitation plan ("RP").

(dollars in millions)PPA Zone StatusFIP/RP StatusContributionsSurcharge ImposedExpiration Date of Collective-Bargaining Agreement
Pension FundEIN/Pension Plan Number20252024Pending/Implemented202520242023
National Elevator Industry Pension Plan23-2694291GreenGreenNo$133$134 $128 No7/8/2027
Other funds9
Total$142$143 $137 

For the plan years ended June 30, 2024 and 2023, respectively, we were listed in the National Elevator Industry Pension Plan’s Forms 5500 as providing more than 5% of the total contributions for the plan. At the date these financial statements were issued, the Form 5500 was not available for the plan year ending June 30, 2025.

In addition, we participate in multiemployer arrangements that provide postretirement benefits other than pensions, with the National Elevator Industry Health Benefit Plan being the most significant. These arrangements generally provide medical and life benefits for eligible active employees and retirees and their dependents. Contributions to multiemployer plans that provide postretirement benefits other than pensions were $20 million for 2025, 2024 and 2023.
Stock-Based Compensation. The Company adopted the 2020 Long-Term Incentive Plan (the "Plan") effective on April 3, 2020. A total of 45 million shares of common stock are authorized under the Plan. The Plan provides for the grant of various types of awards including restricted share unit awards, stock appreciation rights, stock options, and performance-based awards. Under the Plan, the exercise price of awards, if any, is set on the grant date and may not be less than the fair market value per share on that date. Generally, stock appreciation rights and stock options have a term of ten years and a three-year vesting period, subject to limited exceptions. In the event of retirement, annual stock appreciation rights, stock options, and restricted share units held for more than one year may become vested and exercisable (if applicable), subject to certain terms and conditions. Awards with performance-based vesting generally have a minimum three-year vesting period and vest based on actual performance against pre-established metrics. In the event of retirement, performance-based awards held for more than one year generally remain eligible to vest based on actual performance relative to target metrics. All other restricted awards generally have a three-year vesting period. We currently intend to issue new shares for share option exercises and conversions under our equity compensation arrangements, and will continue to evaluate this policy in connection with our share repurchase program. As of December 31, 2025, approximately 18 million shares remain available for awards under the 2020 Plan.
Stock-based Compensation Expense

We measure the cost of all share-based payments, including stock options, at fair value on the grant date and recognize this cost in the Consolidated Statements of Operations. A forfeiture rate assumption is applied on grant date to adjust the expense recognition for awards that are not expected to vest.

Stock-based compensation expense, net of estimated forfeitures, is primarily reflected in Selling, general and administrative expenses in the Consolidated Statements of Operations, in addition to Cost of products sold, Cost of services sold and Research and development.

Stock-based compensation expense and the resulting tax benefits in 2025, 2024 and 2023 were as follows:

(dollars in millions)20252024
2023
Stock-based compensation expense (Share Based)$80 $73 $64 
Stock-based compensation expense (income) (Liability Awards) — — 
Total gross stock-based compensation expense80 73 64 
Less: future tax benefit(7)(7)(7)
Stock-based compensation expense, net of tax$73 $66 $57 

For 2025, 2024 and 2023, the amount of cash received from the exercise of stock options was $3 million, $4 million and $6 million, respectively, with an associated tax benefit realized of $7 million, $11 million and $6 million, respectively. In addition, for 2025, 2024 and 2023, the associated tax benefit realized from the vesting of performance share units and other restricted awards was $5 million, $10 million and $9 million, respectively. The tax benefit was computed using current U.S. federal and state tax rates applicable in 2025, 2024 and 2023.

As of December 31, 2025, there was approximately $83 million of total unrecognized compensation cost related to non-vested equity awards granted under the Plan. This cost is expected to be recognized ratably over a weighted-average period of 1.7 years.

A summary of the activity under Otis' plans for 2025 follows:

Stock Appreciation RightsRestricted Share UnitsPerformance Share UnitsStock Options
(shares in thousands)SharesAverage Price*SharesAverage Price**SharesAverage Price **SharesAverage Price *
Outstanding at:
December 31, 20245,946 $71.58 943 $88.01 953 $92.08 124 $68.21 
Granted (1)
— — 503 94.07 411 98.33 — — 
Exercised / Earned (1)
(1,189)60.91 (412)85.09 (179)86.71 (54)61.41 
Cancelled(75)86.10 (97)90.41 (129)92.82 — — 
December 31, 20254,682$74.06 937 $92.16 1,056 $95.34 70 $73.38 

* Weighted-average grant price
** Weighted-average grant fair value
(1) Includes annual retainer awards issued to the Board of Directors

No stock options and stock appreciation rights were granted by Otis during 2025. The weighted-average grant date fair value of stock options and stock appreciation rights granted by Otis, during 2024 and 2023 was $24.34 and $24.67, respectively. The weighted-average grant date fair value of performance share units, which vest upon achieving certain performance metrics, and other restricted stock awards granted by Otis during 2025, 2024 and 2023 was $96.07, $89.54 and $84.88, respectively. The total intrinsic value (which is the amount by which the stock price exceeded the exercise price on the date of exercise) of stock options and stock appreciation rights exercised during 2025, 2024 and 2023 was $44 million, $78 million and $65 million, respectively. The total fair value (which is the stock price at vesting) of performance share units and other restricted awards vested was $56 million, $95 million and $75 million during 2025, 2024 and 2023, respectively.
The following table summarizes information about equity awards outstanding that are vested and expected to vest and equity awards outstanding that are exercisable as of December 31, 2025:

Equity Awards Vested and Expected to VestEquity Awards That Are Exercisable
(shares in thousands; aggregate intrinsic value in millions)AwardsAverage Price *Aggregate Intrinsic ValueRemaining Term **AwardsAverage Price *Aggregate Intrinsic ValueRemaining Term **
Stock Options/Stock Appreciation Rights4,746 $74.03 $66 4.5 years4,249 $72.22 $65 4.1 years
Performance Share Units/Restricted Share Units1,929 $169 1.1 years   

* Weighted-average grant price per share
** Weighted-average contractual remaining term in years

In 2025, the Company made a change to the equity awards mix granted annually to the executive population as part of their overall compensation program. Specifically, the Company eliminated annual grants of stock appreciation rights and stock option awards and replaced them with additional mix of restricted stock units and performance share units. As a result of this change, the Company was no longer required to perform valuation modeling using the Binomial Lattice model in 2025. For prior years, the fair value of each option award was estimated on the date of grant using the Binomial Lattice model. The following table indicates the assumptions used in estimating fair values for stock appreciated rights and stock options granted in 2024 and 2023. Lattice-based option models incorporate ranges of assumptions for inputs; those ranges are as follows:

202520242023
Expected volatilityN/A
26.1% - 26.8%
27.8% - 28.1%
Weighted-average volatilityN/A26.8%27.9%
Expected term (in years)N/A5.36.2
Expected dividend yieldN/A1.6%1.5%
Risk-free rateN/A
3.6% - 3.7%
3.4% - 4.7%

For 2024 and 2023, the expected volatility for Otis was calculated using a blend of Otis and peer-group stock volatility. The estimate for equity award exercise and employee termination behavior within the valuation model incorporates Otis employee data from prior to the Separation. The expected term represents an estimate of the period of time equity awards are expected to remain outstanding. The risk-free rate is based on the term structure of interest rates at the time of equity award grant.

The Company uses a Monte Carlo simulation approach based on a three-year measurement period to determine fair value of the performance share units that are subject to market conditions. This approach includes the use of assumptions regarding the future performance of the Company’s stock and those of a peer group. Those assumptions include expected volatility, risk-free interest rates, correlations and dividend yield.
v3.25.4
Stock
12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stock Stock
Preferred Stock. There are 125 million shares of $0.01 par value authorized Preferred Stock, of which none were issued or outstanding as of December 31, 2025 or 2024.

Common Stock. There are 2.0 billion shares of $0.01 par value Common Stock authorized. As of December 31, 2025 and 2024, 439.4 million and 438.6 million shares of Common Stock were issued, respectively, which includes 49.6 million and 41.0 million shares of treasury stock, respectively.

Treasury Stock. As of December 31, 2025, the Company was authorized by the Board of Directors to purchase up to $2.0 billion of Common Stock under a share repurchase program, of which approximately $1.3 billion was remaining at such time.
During 2025, 2024 and 2023, the Company repurchased 8.6 million, 10.6 million and 9.6 million shares of Common Stock, respectively, for approximately $800 million, $1.0 billion and $800 million, respectively. Share repurchases in excess of issuances are subject to a 1% excise tax, which is included as part of the cost basis of the shares acquired in Treasury Stock in the Consolidated Balance Sheets as of December 31, 2025 and 2024, as well as within financing activities in the Consolidated Statements of Cash Flows when paid.

The Company's share repurchase program does not obligate it to acquire any specific number of shares. Under this program, shares may be purchased on the open market, in privately negotiated transactions, under accelerated share repurchase programs or under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.
v3.25.4
Accumulated Other Comprehensive Income (Loss)
12 Months Ended
Dec. 31, 2025
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
A summary of the changes in each component of Accumulated other comprehensive income (loss), net of tax, for 2025, 2024 and 2023 is provided below:

(dollars in millions)Foreign
Currency
Translation
Defined Benefit
Pension and
Postretirement
Plans
Unrealized
Hedging
Gains (Losses)
Accumulated
Other
Comprehensive
Income (Loss)
Balance as of December 31, 2022$(587)$(8)$$(592)
Other comprehensive income (loss) before reclassifications, net(87)(69)(150)
Amounts reclassified, pre-tax(1)(8)(8)
Tax expense (benefit) reclassified— — — — 
Balance as of December 31, 2023(673)(78)(750)
Other comprehensive income (loss) before reclassifications, net
Amounts reclassified, pre-tax— — — — 
Tax expense (benefit) reclassified— — — — 
Balance as of December 31, 2024(672)(76)(745)
Other comprehensive income (loss) before reclassifications, net(381)39 (4)(346)
Amounts reclassified, pre-tax 3 2 5 
Tax expense (benefit) reclassified (1) (1)
Balance as of December 31, 2025$(1,053)$(35)$1 $(1,087)

Amounts reclassified that relate to defined benefit pension and postretirement plans include amortization of prior service costs and actuarial net losses recognized during each period presented. These costs are recorded as components of net periodic pension cost for each period presented. See Note 11, "Employee Benefit Plans" for additional information.
v3.25.4
Income Taxes
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income Before Income Taxes. The sources of income from operations before income taxes are:

(dollars in millions)202520242023
United States$631 $505 $565 
Foreign1,303 1,534 1,466 
Net income before income taxes$1,934 $2,039 $2,031 

As a result of the TCJA the Company determined it no longer intends to reinvest certain undistributed earnings of its international subsidiaries that have been previously taxed in the U.S. As such, Otis recorded the international taxes associated with the future remittance of these earnings as part of the Separation from UTC. For the remainder of the Company's undistributed international earnings, unless tax effective to repatriate, Otis will continue to permanently reinvest these earnings. It is not practicable to estimate the amount of tax that might be payable on the remaining amounts.
On July 4, 2025, the One Big Beautiful Bill Act was enacted, which includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key Tax Cuts & Jobs Act provisions (both domestic and international). The tax impacts of this legislation do not have a material impact on our Consolidated Financial Statements.

Provision for Income Taxes. The income tax expense (benefit) for 2025, 2024 and 2023 consisted of the following components:

(dollars in millions)
202520242023
Current:
United States:
Federal$128 $74 $82 
State56 45 50 
Foreign399 217 462 
583 336 594 
Future:
United States:
Federal(59)(11)(24)
State(16)(1)(5)
Foreign(29)(19)(32)
(104)(31)(61)
Income tax expense$479 $305 $533 
Attributable to items (charged) credited to (deficit) equity$(15)$(6)$16 
Reconciliation of Effective Income Tax Rate. Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows:

202520242023
(dollars in millions)
AmountPercentAmountPercentAmountPercent
U.S. Federal Statutory Tax Rate$406 21.0 %$428 21.0 %$427 21.0 %
State and Local Income Taxes, Net of Federal Income Tax Effect (1)
31 1.6 %35 1.7 %36 1.8 %
Foreign Tax Effects:
France:
Distributable reserve deferred adjustment  %(37)(1.8)%— — %
Other13 0.7 %14 0.7 %10 0.5 %
Germany:
Statutory tax rate difference between Germany and United States8 0.4 %25 1.2 %0.4 %
Tax litigation settlement1 0.1 %(247)(12.1)%— — %
Other(1) %— — %0.1 %
Ireland:
Nontaxable interest income(25)(1.3)%(29)(1.4)%(23)(1.1)%
Other  %0.2 %0.4 %
Luxembourg:
Nondeductible interest expense49 2.4 %53 2.6 %47 2.3 %
Other  %(4)(0.2)%(5)(0.2)%
Other foreign jurisdictions53 2.6 %94 4.6 %73 3.4 %
Effect of Changes in Tax Laws or Rates Enacted in the Current Period  %— — %— — %
Effect of Cross-Border Tax Laws:
Foreign-derived intangible income(49)(2.5)%(35)(1.7)%(23)(1.1)%
Foreign withholding tax reclassification(49)(2.5)%(43)(2.1)%(31)(1.5)%
Other13 0.7 %0.4 %10 0.5 %
Tax Credits:
Other(2)(0.1)%(1)(0.1)%(2)(0.1)%
Changes in Valuation Allowance1 0.1 %0.1 %(3)(0.2)%
Nontaxable or Nondeductible Items:
Net Indemnity Payable/(Receivable) to/(from) former parent15 0.8 %37 1.8 %— — %
Other11 0.6 %0.3 %0.3 %
Changes in Unrecognized Tax Benefits2 0.1 %— — %(4)(0.2)%
Other Adjustments2 0.1 %(3)(0.2)%(3)(0.1)%
Effective income tax rate$479 24.8 %$305 15.0 %$533 26.2 %

(1) State taxes in California and New York contributed to the majority of the tax effect in this category.
The 2025 effective tax rate is higher than the statutory U.S. rate primarily due to higher international tax rates as compared to the lower U.S. federal statutory rate. The 2025 effective tax rate is higher than the 2024 effective tax rate primarily due to the absence of estimated tax benefits arising from the resolution of the German tax litigation and the absence of the reduction in a deferred tax liability related to the mitigation of future repatriation costs, both recorded in 2024, and the tax effect of the increase in our estimated nondeductible TMA indemnity obligation payable to RTX recorded in 2025. These impacts were partially offset by an incremental benefit related to foreign-derived intangible income and foreign valuation allowance releases recorded in 2025.

The 2024 effective tax rate is lower than the 2023 effective tax rate and the statutory U.S. rate primarily due to recognition of estimated tax benefits arising from the resolution of the German tax litigation and the reduction of a deferred tax liability related to the mitigation of future repatriation costs.

The 2023 effective tax rate is higher than the statutory U.S. rate primarily due to higher international tax rates as compared to the lower U.S. federal statutory rate.

Deferred Tax Assets and Liabilities. Future income taxes represent the tax effects of transactions which are reported in different periods for tax and financial reporting purposes. These amounts consist of the tax effects of temporary differences between the tax and financial reporting balance sheets and tax carryforwards. Future income tax benefits and obligations within the same tax paying component of a particular jurisdiction are offset for presentation in the Consolidated Balance Sheets.

The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and obligations as of December 31, 2025 and 2024 are as follows:

(dollars in millions)
20252024
Future income tax benefits:
Insurance and employee benefits$90 $109 
Other asset basis differences119 113 
Other liability basis differences453 349 
Tax loss carryforwards226 201 
Tax credit carryforwards55 54 
Valuation allowances(256)(250)
Total future income tax benefits$687 $576 
Future income tax obligations:
Intangible assets$148 $143 
Other assets basis differences221 203 
Total future income tax obligations$369 $346 

Valuation allowances have been established primarily for tax credit carryforwards, tax loss carryforwards, and certain foreign temporary differences to reduce the future income tax benefits to expected realizable amounts.
Tax Credit and Loss Carryforwards. As of December 31, 2025, tax credit carryforwards, principally federal and state, and tax loss carryforwards, principally foreign, were as follows:

(dollars in millions)
Tax Credit CarryforwardsTax Loss Carryforwards
Expiration period:
2026-2030$11 $52 
2031-203512 22 
2036-20452 111 
Indefinite30 789 
Total$55 $974 

Unrecognized Tax Benefits. As of December 31, 2025, the Company had gross tax-effected unrecognized tax benefits of $152 million, all of which, if recognized, would impact the effective tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for 2025, 2024 and 2023 is as follows:

(dollars in millions)
202520242023
Balance at January 1$149 $394 $386 
Additions for tax positions related to the current year11 12 10 
Additions for tax positions of prior years10 — 
Reductions for tax positions of prior years(18)(12)(8)
Settlements (245)(1)
Balance at December 31$152 $149 $394 
Gross interest expense (income) related to unrecognized tax benefits$(22)$(146)$
Total accrued interest balance at December 31$64 $84 $148 

The decrease in unrecognized tax benefits and associated interest in 2024 is primarily due to the resolution of the German tax litigation. See Note 20, "Contingent Liabilities" for discussion regarding the German tax litigation.

Otis conducts business globally and, as a result, Otis or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions.

In the ordinary course of business, Otis could be subject to examination by taxing authorities throughout the world, including such major jurisdictions as Austria, Belgium, Brazil, Canada, China, France, Germany, Hong Kong, India, Italy, Japan, Mexico, Netherlands, Portugal, South Korea, Spain, Switzerland, the United Kingdom and the U.S. With a few exceptions, Otis is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2016.

A subsidiary of Otis lost a tax litigation case in Belgium in 2023 and decided not to appeal. Otis may receive the assessment for tax and interest within the next 12 months. The associated tax and interest have been fully reserved.
Income Taxes Paid. The income taxes paid, net of refunds, for 2025, 2024 and 2023 are as follows:

(dollars in millions)
202520242023
Income taxes paid, net of refunds
Federal$116 $55 $85 
State62 52 43 
Foreign:
China72 91 90 
France43 52 28 
Germany(102)33 32 
Japan39 41 40 
Spain47 41 39 
Foreign Other194 221 189 
Total income taxes paid, net of refunds$471 $586 $546 
v3.25.4
Restructuring and Transformation Costs
12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring and Transformation Costs Restructuring and Transformation Costs
We initiate restructuring actions to keep our cost structure competitive. Charges generally arise from severance related to workforce reductions, and to a lesser degree, facility exit and lease termination costs associated with the consolidation of office and manufacturing operations. Due to the size, nature and frequency of these discrete actions, they are fundamentally different from the Company's ongoing productivity initiatives.

During 2025, 2024 and 2023, we recorded restructuring costs for new and ongoing restructuring actions, including UpLift actions beginning in 2023, as follows:
(dollars in millions)202520242023
UpLiftOtherTotalUpLiftOtherTotalUpLiftOtherTotal
Cost of products and services sold$13 $31 $44 $$20 $28 $— $$
Selling, general and administrative63 23 86 23 20 43 25 36 61 
Total $76 $54 $130 $31 $40 $71 $25 $42 $67 

Restructuring costs incurred and expected, unless otherwise indicated, are approximately 30% New Equipment and 70% Service. Although this reflects the segments to which the restructuring costs relate, refer to Note 21, "Segment Financial Data" for more information about our measure of segment performance (segment operating profit), which no longer includes restructuring costs, among other items, beginning in 2024.

UpLift Restructuring Actions and Transformation Costs. In 2023, we announced UpLift to transform our operating model. UpLift includes, among other aspects, the standardization of our processes and improvement of our supply chain procurement, as well as organizational changes which result in restructuring actions.

UpLift restructuring actions were approved in 2023, 2024 and 2025. These costs are primarily severance related costs. These actions initiated during 2025, 2024 and 2023 are substantially completed as of December 31, 2025. Expected total costs and remaining costs to incur for the actions initiated are approximately $150 million and $18 million, respectively. Following completion of the program, the Company does not expect to incur restructuring or transformation costs of a similar nature. Ongoing costs related to continuous improvement initiatives are expected to be consistent with historical operating expenses.

In 2025, 2024, and 2023, we incurred $69 million, $65 million and $16 million, respectively, of incremental, non-restructuring costs associated with transforming our operating model as a part of UpLift ("UpLift transformation costs"), which are recorded in Other income (expense), net in the Consolidated Statements of Operations. The UpLift transformation costs are primarily for consultants, third-party service providers and personnel focused on designing and implementing a centralized service delivery model that supports our new organizational structure, including the standardization of our supply chain and digital technology procurement.
Other Restructuring Actions. The other restructuring expenses incurred during 2025, 2024 and 2023 were primarily the result of restructuring programs initiated related to severance and facility exit costs. We are targeting to complete in 2026 the majority of the remaining restructuring actions initiated in 2025 and 2024, with certain utilization beyond 2026 due to contractual obligations or legal requirements in the applicable jurisdictions. Expected total costs and remaining costs to incur for the other restructuring actions initiated are $94 million and $16 million, respectively. Remaining costs are expected to be approximately 50% New Equipment and 50% Service.

Reorganization of Operations in China

In January 2025, we announced the reorganization of our operations in China. Among other aspects, this reorganization will result in restructuring actions of approximately $30 million. These actions include severance related costs, and these actions are substantially completed as of December 31, 2025. Amounts related to the reorganization of operations in China are included within Other restructuring actions.

Restructuring Accruals. The following table summarizes the accrual balance and utilization for the restructuring actions, which are primarily for severance costs:

(dollars in millions)UpLift ActionsOther ActionsTotal Restructuring Actions
Restructuring accruals as of December 31, 2023$13 $35 $48 
Net restructuring costs31 40 71 
Utilization, foreign exchange and other(31)(51)(82)
Restructuring accruals as of December 31, 202413 24 37 
Net restructuring costs76 54 130 
Utilization, foreign exchange and other(39)(54)(93)
Restructuring accrual as of December 31, 2025$50 $24 $74 
v3.25.4
Financial Instruments
12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments Financial Instruments
We enter into derivative instruments primarily for risk management purposes, including derivatives designated as hedging instruments under ASC 815, Derivatives and Hedging. We operate internationally and, in the normal course of business, are exposed to fluctuations in interest rates, commodity prices and foreign exchange rates. These fluctuations can increase the costs of financing, investing in and operating the business. We may use derivative instruments, including swaps, forward contracts and options, to manage certain foreign currency, commodity price and interest rate exposures.

The four-quarter average of the notional amount of foreign exchange contracts hedging foreign currency transactions was approximately $5.6 billion and $5.3 billion as of December 31, 2025 and 2024, respectively. The four-quarter average of the notional amount of contracts hedging commodity purchases was $12 million and $14 million as of December 31, 2025 and 2024, respectively.
The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivative instruments as of December 31:

(dollars in millions)Balance Sheet Classification20252024
Derivatives designated as Cash flow hedging instruments:
Asset Derivatives:
Foreign exchange contractsOther current assets$4 $
Foreign exchange contractsOther assets2 
Total asset derivatives$6 $
Liability Derivatives:
Foreign exchange contractsAccrued liabilities$(3)$(4)
Foreign exchange contractsOther long-term liabilities(2)(1)
Total liability derivatives$(5)$(5)
Derivatives not designated as Cash flow hedging instruments:
Asset Derivatives:
Foreign exchange contractsOther current assets$11 $53 
Commodity contractsOther current assets1 — 
Foreign exchange contractsOther assets2 
Total asset derivatives$14 $59 
Liability Derivatives:
Foreign exchange contractsAccrued liabilities$(25)$(39)
Foreign exchange contractsOther long-term liabilities(2)(6)
Total liability derivatives$(27)$(45)

Derivatives designated as Cash flow hedging instruments. The amount of gain or (loss) attributable to foreign exchange and commodity contract activity reclassified from Accumulated other comprehensive income (loss) was immaterial for 2025, 2024 and 2023, and is presented in Note 13, "Accumulated Other Comprehensive Income (Loss)".

The effect of cash flow hedging relationships on Accumulated other comprehensive income (loss) as of December 31, 2025 and 2024 are presented in the table below:

(dollars in millions)20252024
Gain (loss) recorded in Accumulated other comprehensive income (loss)$1 $

The Company utilizes the critical terms match method in assessing firm commitment derivatives and regression testing in assessing commodity derivatives for hedge effectiveness. Accordingly, the hedged items and derivatives designated as hedging instruments are highly effective.

Assuming current market conditions continue, a pre-tax gain of $1 million is expected to be reclassified from Accumulated other comprehensive income (loss) into Cost of products sold to reflect the fixed prices obtained from foreign exchange and commodity hedging within the next 12 months. All derivative contracts accounted for as cash flow hedges as of December 31, 2025 will mature by November 2029.
Net Investment Hedges. We may use non-derivative instruments (foreign currency denominated borrowings) and derivative instruments (foreign exchange forward contracts) to hedge portions of the Company's investments in foreign subsidiaries and manage foreign exchange risk. For instruments that are designated and qualify as a hedge of net investment in foreign operations and that meet the effectiveness requirements, the net gains or losses attributable to changes in spot exchange rates are recorded in foreign currency translation within Other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income, and will remain in Accumulated other comprehensive income (loss) until the hedged investment is sold or substantially liquidated. The remainder of the change in value of such instruments is recorded in earnings, including to the extent foreign currency denominated borrowings are not designated in, or are de-designated from, a net investment hedge relationship.

Our use of derivative instruments designated as hedges of net investment in foreign subsidiaries can vary depending on the Company's desired foreign exchange risk coverage.

We have ¥21.5 billion of Japanese Yen denominated long-term debt that qualifies as a net investment hedge against our investments in Japanese businesses, as well as derivative instruments that qualify as net investment hedges against our investments in certain European businesses (notional amount of €169 million) and Asian businesses (notional amount of HK$2.2 billion). The net investment hedges are deemed to be effective. The maturity dates of the current non-derivative and derivative instruments designated in net investment hedges range from 2026 to 2027.

In 2025, we de-designated six derivative instruments that qualified as net investment hedges in certain European businesses with notional amount totaling €150 million, and in certain Asian businesses with notional amounts of ¥2.1 billion and HK$1.3 billion, respectively. These de-designated instruments were deemed to be effective until de-designation.

In 2024, we de-designated a derivative instrument that qualified as a net investment hedge in certain Asian businesses with a notional amount of HK$1.5 billion, which was deemed to be effective until de-designation.

Additionally, we had derivative instruments with notional amount of €95 million that matured during 2023. These derivative instruments qualified as net investment hedges which were deemed to be effective until maturity.

The following table summarizes the amounts of gains (losses) recognized in other comprehensive income (loss) related to non-derivative and derivative instruments designated as net investment hedges in 2025, 2024 and 2023:

(dollars in millions)202520242023
Foreign currency denominated long-term debt$1 $13 $13 
Foreign currency forward contracts(7)10 
Total$(6)$23 $17 

Derivatives not designated as Cash flow hedging instruments. The net effect of derivatives not designated as Cash flow hedging instruments within Other income (expense) net, in the Consolidated Statements of Operations in 2025, 2024 and 2023 was as follows:

(dollars in millions)202520242023
Foreign exchange contracts$25 $$20 

The effects of derivatives not designated as Cash flow hedge instruments within Cost of products sold in the Consolidated Statements of Operations were as follows:

(dollars in millions)202520242023
Commodity and foreign exchange contracts$5 $(1)$(5)
v3.25.4
Fair Value Measurements
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
In accordance with the provisions of ASC 820: Fair Value Measurements, the following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and non-recurring basis in our Consolidated Balance Sheets as of December 31, 2025 and 2024:

December 31, 2025
(dollars in millions)TotalLevel 1Level 2Level 3
Recurring fair value measurements:
Marketable securities$55 $55 $ $ 
Derivative assets20  20  
Derivative liabilities(32) (32) 
December 31, 2024
(dollars in millions)TotalLevel 1Level 2Level 3
Recurring fair value measurements:
Marketable securities$44 $44 $— $— 
Derivative assets68 — 68 — 
Derivative liabilities(50)— (50)— 

Valuation Techniques. Our marketable securities include investments that are traded in active markets, either domestically or internationally, and are measured at fair value using closing stock prices from active markets. The fair value gains or losses related to our marketable securities are recorded through net income. Our derivative assets and liabilities include foreign exchange and commodity contracts that are measured at fair value using internal and third party models based on observable market inputs such as forward rates, interest rates, our own credit risk and our counterparties' credit risks.

As of December 31, 2025, there has not been any significant impact to the fair value of our derivative liabilities due to our own credit risk. Similarly, there has not been any significant adverse impact to our derivative assets based on our evaluation of our counterparties' credit risks.

The fair values of the current portion of the Company's financial instruments not carried at fair value approximated their carrying values because of the short-term nature of the current portion. The fair value of receivables, including customer financing notes receivable, net, that were issued long-term are based on the discounted values of their related cash flows at interest rates reflecting the attributes of the counterparties, including geographic location. Customer-specific risk, including credit risk, is already considered in the carrying value of those receivables. Our long-term debt, as described in Note 8, "Borrowings and Lines of Credit", is measured at fair value using closing bond prices from active markets.

The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Consolidated Balance Sheets as of December 31, 2025 and 2024:

 December 31, 2025December 31, 2024
(dollars in millions)Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Long-term receivables, net$49 $48 $47 $46 
Customer financing notes receivable, net16 14 21 19 
Short-term borrowings(214)(214)(51)(51)
Long-term debt, including current portion (excluding leases and other)(7,779)(7,269)(8,316)(7,600)
Long-term liabilities, including current portion(84)(81)(132)(123)

Long-term liabilities, including current portion, as of December 31, 2025 and 2024 is primarily $80 million and $131 million, respectively, of payables to RTX for reimbursement of tax payments that RTX is responsible to pay after the Separation as a result of the TMA.
The following tables provide the valuation hierarchy classification of assets and liabilities that are not carried at fair value in the Consolidated Balance Sheets as of December 31, 2025 and 2024:

December 31, 2025
(dollars in millions)TotalLevel 1Level 2Level 3
Long-term receivables, net$48 $ $48 $ 
Customer financing notes receivable, net14  14  
Short-term borrowings(214) (214) 
Long-term debt, including current portion (excluding leases and other)(7,269) (7,269) 
Long-term liabilities, including current portion(81) (81) 
December 31, 2024
(dollars in millions)TotalLevel 1Level 2Level 3
Long-term receivables, net$46 $— $46 $— 
Customer financing notes receivable, net19 — 19 — 
Short-term borrowings(51)— (51)— 
Long-term debt, including current portion (excluding leases and other)(7,600)— (7,600)— 
Long-term liabilities, including current portion(123)— (123)— 
v3.25.4
Guarantees
12 Months Ended
Dec. 31, 2025
Guarantees and Product Warranties [Abstract]  
Guarantees Guarantees
The Company provides service and warranty on its products beyond normal service and warranty policies. The carrying amounts of service and product guarantees were $10 million and $16 million as of December 31, 2025 and 2024, respectively.

The Company provides certain financial guarantees to third parties. As of December 31, 2025, Otis has stand-by letters of credit with maximum potential payment totaling $181 million. We accrue costs associated with guarantees when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts, and where no amount within a range of estimates is more likely, the minimum is accrued. In accordance with the FASB ASC Topic 460: Guarantees, we record these liabilities at fair value. As of December 31, 2025, Otis has determined there are no estimated costs probable under these guarantees.
v3.25.4
Leases
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
ASU 2016-02, Leases (Topic 842) and its related amendments (collectively, "Lease Accounting Standard") establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability in the Consolidated Balance Sheets for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statements of Operations.

We enter into lease agreements for the use of real estate space, vehicles and certain other equipment under operating and finance leases. We determine if an arrangement contains a lease at inception. Operating leases are included in Operating lease ROU assets, Accrued liabilities, and Operating lease liabilities in our Consolidated Balance Sheets. Finance leases are not considered significant to our Consolidated Balance Sheets or Consolidated Statements of Operations. We apply the practical expedient for short-term leases, whereby a lease ROU asset and liability is not recognized and the expense is recognized in a straight-line basis over the lease term.
ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments, and use the implicit rate when readily determinable. We determine our incremental borrowing rate through market sources including relevant industry rates. Our lease ROU assets also include any lease pre-payments and exclude lease incentives. Certain of our leases include variable payments, which may vary based upon changes in facts or circumstances after the start of the lease. We exclude variable payments from lease ROU assets and lease liabilities, to the extent not considered fixed, and instead, expense variable payments as incurred. Variable lease expense and lease expense for short duration contracts is not a material component of lease expense. Our leases generally have remaining lease terms of 1 to 20 years, some of which include options to extend leases. The majority of our leases with options to extend are up to five years with the ability to terminate the lease within one year. The exercise of lease renewal options is at our sole discretion and our lease ROU assets and liabilities reflect only the options we are reasonably certain that we will exercise. Lease expense is recognized on a straight-line basis over the lease term.

Operating lease cost for 2025, 2024 and 2023 was $206 million, $166 million and $153 million, respectively.

Supplemental cash flow information related to operating leases for 2025, 2024 and 2023 was as follows:

(dollars in millions)202520242023
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash outflows from operating leases$(188)$(129)$(129)
Non-cash operating lease activity:
ROU assets obtained in exchange for operating lease liabilities323 150 93 

Operating lease ROU assets and liabilities are reflected on our Consolidated Balance Sheets as of December 31, 2025 and 2024 are as follows:

(dollars in millions)20252024
Operating lease ROU assets$554 $422 
Accrued liabilities$158 $120 
Operating lease liabilities397 298 
Total operating lease liabilities$555 $418 

Supplemental information related to operating leases as of December 31, 2025 and 2024 are as follows:
20252024
Weighted Average Remaining Lease Term (in years)3.94.1
Weighted Average Discount Rate4.2%4.0%
Undiscounted maturities of operating lease liabilities, including options to extend lease terms that are reasonably certain of being exercised, as of December 31, 2025 are as follows:

(dollars in millions)Total
2026$178 
2027153 
2028116 
202973 
203038 
Thereafter47 
Total undiscounted lease payments605 
Less: imputed interest(50)
Total discounted lease payments$555 
v3.25.4
Contingent Liabilities
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Contingent Liabilities Contingent Liabilities
Except as otherwise noted, while we are unable to predict the final outcome, based on information currently available, we do not believe that resolution of any of the following matters will have a material adverse effect upon our competitive position, results of operations, cash flows or financial condition. In addition to the specific amounts noted below, where we have recorded loss contingency accruals for other matters described below and other matters, the amounts in aggregate are not material. Legal costs generally are expensed when incurred.

Environmental. As previously disclosed, the Company's operations are subject to environmental regulation by authorities with jurisdiction over its operations. 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, and periodically reassesses these amounts. Management believes that the likelihood of incurring losses materially in excess of amounts accrued is remote. The outstanding liability for environmental obligations was $5 million as of December 31, 2025 and 2024, and is principally included in Other long-term liabilities in the Consolidated Balance Sheets.

Legal Proceedings.

German Tax Litigation

In the third quarter of 2024, Otis prevailed in a German tax litigation case stemming from the 1998 reorganization of the Company's operations in Germany. As a result of winning the case, the Company expects to receive total refunds of prepaid tax, prepaid interest, overpayment interest, and court fees of approximately €308 million net of tax (approximately $362 million) as of December 31, 2025. The Company has started to receive refunds and anticipates the refund process to continue into 2026.

The recoveries related to this matter are allocated between RTX and the Company pursuant to the terms of the TMA with our former parent, UTC, by way of indemnification payments. The Company has established an indemnity payable to RTX, which is intended to cover RTX’s tax and interest payable to the IRS. Interest on RTX’s liability to the IRS will continue to accrue until RTX's tax liability is paid. The Company and RTX disagree about both the scope of the indemnity payable to RTX and the Company’s liability for interest accruing on amounts already paid to RTX. The Company expects this dispute to be resolved pursuant to the dispute resolution procedures of the TMA.

(dollars in millions)20252024
Indemnity Payable (in Accrued liabilities)$56 $194 

As of December 31, 2024, the Company estimated its indemnity payable to RTX to be $194 million and recorded this amount in its financial statements for the year ended December 31, 2024.
Based on additional information received from RTX during the year, which resulted in additional indemnification expense of $67 million, offset by indemnity payments made to RTX of $205 million, the Company now estimates the remaining amount payable to RTX to be $56 million. The indemnification expense is included in Other income (expense), net in the Consolidated Statements of Operations in 2025 and 2024, and the amounts payable to RTX are included in Accrued liabilities in the Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively.

This estimate could further change due to the parties' continuing dispute concerning the scope of the final indemnity amount, which will be resolved pursuant to the procedures set forth in the TMA.

See Note 1, "Business Overview" for additional information on the impacts of the litigation and TMA activity to the Consolidated Financial Statements as of December 31, 2025.

Asbestos Matters

We have been named as defendants in lawsuits alleging personal injury as a result of exposure to asbestos. While we have never manufactured any asbestos-containing component parts, and no longer incorporate asbestos in any current products, certain of our historical products have contained components manufactured by third parties incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or were 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 for 2025 and 2024.

The estimated range of total liabilities to resolve all pending and unasserted potential future asbestos claims through 2059 is approximately $11 million to $31 million as of December 31, 2025, and approximately $11 million to $21 million as of December 31, 2024. Since no amount within the range of estimates is more likely to occur than any other, we have recorded the minimum amount of $11 million as of December 31, 2025 and 2024, which is principally recorded in Other long-term liabilities on our Consolidated Balance Sheets. Amounts are on a pre-tax basis, not discounted, and exclude the Company's legal fees to defend the asbestos claims (which will continue to be expensed as they are incurred). In addition, the Company has an insurance recovery receivable for probable asbestos related recoveries of approximately $3 million, which is principally included in Other assets on our Consolidated Balance Sheets as of December 31, 2025 and 2024.

Other. We have commitments and contingent liabilities related to legal proceedings, self-insurance programs and matters arising out of the normal course of business. We accrue contingencies based on a range of possible outcomes. If no amount within this range is a better estimate than any other, we accrue the minimum amount. While it is not possible to determine the ultimate disposition of each of these claims and whether they will be resolved consistent with our beliefs, we expect that the outcome of such claims, individually or in the aggregate, will not have a material adverse effect on our business, financial condition, cash flows or results of operations.

In certain European countries, claims for overcharges on elevators and escalators related to civil cartel cases have been made, which we have accrued for based on our evaluation of the claims. While it is not possible to determine the ultimate disposition of each of these claims and whether they will be resolved consistent with our beliefs, historical settlement experience of these cases have not been material to the business, financial condition, cash flows or results of operations. However, the future outcome of these cases cannot be determined.

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 its subsidiaries and could result in fines, penalties, compensatory or treble damages or non-monetary relief. We do not believe that these matters will have a material adverse effect upon our competitive position, results of operations, cash flows or financial condition.

Refer to Note 21, "Segment Financial Data" for information about Litigation-related settlement costs recognized in 2025 for certain legal matters that are outside of the ordinary course of business.
v3.25.4
Segment Financial Data
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Financial Data Segment Financial Data
Our operations are classified into two operating segments: New Equipment and Service. Through the New Equipment segment, we design, manufacture, sell and install a wide range of passenger and freight elevators as well as escalators and moving walkways to customers in the residential, commercial and infrastructure projects. The Service segment provides maintenance and repair services for both our products and those of other manufacturers, and provides modernization services to upgrade elevators and escalators. The operating segments are generally based on the management structure of the Company, as well as how management allocates resources, assesses performance and makes strategic and operational decisions.

Segment Information. Otis discloses segment operating profit as its measure of segment performance, reconciled to Net income before income taxes. Segment operating profit excludes certain expenses and income that are not allocated to segments (as described below in "Corporate and Unallocated").

Otis' Chief Operating Decision Maker ("CODM") is the Company's Chief Executive Officer. The CODM assesses the performance of each operating segment and allocates resources to those segments based on net sales and segment operating profit. The CODM compares segment operating profit results to prior periods and forecasted amounts to assess performance and to make decisions regarding the allocation of capital and other investments. Discrete asset information for each segment is not presented to, or reviewed by, the CODM.

Segment information for 2025 is as follows:

2025
(dollars in millions)New EquipmentServiceTotal
Net sales$4,989 $9,442 $14,431 
Costs and expenses:
Cost of sales4,157 5,860 10,017 
Selling, general and administrative485 1,184 1,669 
Other including research and development107 24 131 
Total segment operating profit$240 $2,374 2,614 
Corporate and Unallocated:
General corporate expenses and other180 
UpLift restructuring76 
Other restructuring54 
UpLift transformation costs69 
Separation-related adjustments70 
Litigation-related settlement costs21 
Held for sale impairment10 
Other, net1 
Total company operating profit2,133 
Non-service pension cost (benefit) 3 
Interest expense (income), net196 
Net income before income taxes$1,934 
Segment information for 2024 is as follows:

2024
(dollars in millions)New EquipmentServiceTotal
Net sales$5,367 $8,894 $14,261 
Costs and expenses:
Cost of sales4,443 5,533 9,976 
Selling, general and administrative490 1,144 1,634 
Other including research and development105 32 137 
Total segment operating profit$329 $2,185 2,514 
Corporate and Unallocated:
General corporate expenses and other158 
UpLift restructuring31 
Other restructuring40 
UpLift transformation costs65 
Separation-related adjustments177 
Litigation-related settlement costs18 
Held for sale impairment18 
Other, net(1)
Total company operating profit2,008 
Non-service pension cost (benefit) — 
Interest expense (income), net(31)
Net income before income taxes$2,039 

Segment information for 2023 is as follows:

2023
(dollars in millions)New EquipmentServiceTotal
Net sales$5,812 $8,397 $14,209 
Costs and expenses:
Cost of sales4,837 5,173 10,010 
Selling, general and administrative498 1,174 1,672 
Other including research and development96 36 132 
Total segment operating profit$381 $2,014 2,395 
Corporate and Unallocated:
General corporate expenses and other126 
UpLift restructuring25 
Other restructuring42 
UpLift transformation costs16 
Total company operating profit2,186 
Non-service pension cost (benefit)
Interest expense (income), net150 
Net income before income taxes$2,031 

Corporate and Unallocated includes adjustments related to the Separation, Litigation-related settlement costs, impairment loss for held for sale net assets, restructuring costs and UpLift transformation costs.
Separation-related adjustments represent net adjustments of amounts due to and from RTX in accordance with the TMA, including amounts due to RTX related to a favorable ruling received in August 2024 regarding the German tax litigation. Separation-related adjustments in 2024 also include a reduction of our contractual indemnity obligation payable to RTX that resulted from the TMA and receipts from RTX in accordance with the TMA. These adjustments are recorded in Other income (expense), net in our Consolidated Statements of Operations in 2025 and 2024, respectively. See Note 14, "Income Taxes" and Note 20, "Contingent Liabilities" for additional information about the German tax litigation.

Litigation-related settlement costs in 2025 and 2024 represent the aggregate amount of settlement costs and increase in loss contingency accruals, excluding legal costs, for certain legal matters that are outside of the ordinary course of business due to the size, complexity and unique facts of these matters.

Impairment loss related to net assets held for sale is recorded in Other income (expense), net in the Consolidated Statements of Operations in 2025 and 2024, respectively. See Note 7, "Business Acquisitions, Dispositions, Goodwill and Intangible Assets" for additional information about the held for sale assets and liabilities.

Refer to Note 15, "Restructuring and Transformation Costs" for more information about restructuring and UpLift transformation costs.

Geographic External Sales and Long-Lived Assets. Geographic Net sales are attributed to the geographic regions based on their location of origin. Long-lived assets are Fixed assets, net attributed to the specific geographic regions. With the exception of the U.S. and China, there were no individually significant countries with Net sales exceeding 10% of the Company's consolidated Net sales during 2025, 2024 and 2023.

External Net SalesLong Lived Assets
(dollars in millions)202520242023202520242023
United States Operations$4,192 $4,239 $4,030 $323 $315 $325 
International Operations
China1,650 1,919 2,444 70 72 83 
Other8,589 8,103 7,735 350 314 319 
Total$14,431 $14,261 $14,209 $743 $701 $727 

Disaggregated Net sales by type. Net sales disaggregated by product and service type for 2025, 2024 and 2023 are as follows:

(dollars in millions)202520242023
New Equipment$4,989 $5,367 $5,812 
Maintenance and Repair7,584 7,211 6,870 
Modernization1,858 1,683 1,527 
Total Service9,442 8,894 8,397 
Total$14,431 $14,261 $14,209 

Major Customers. There were no customers that individually accounted for 10% or more of the Company's consolidated Net sales for 2025, 2024 and 2023.
v3.25.4
SCHEDULE II - Valuation and Qualifying Accounts
12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
SCHEDULE II - Valuation and Qualifying Accounts
Future Income Tax Benefits - Valuation Allowance
Balance, December 31, 2022$240 
Additions charged to income tax expense16 
Reductions credited to income tax expense(22)
Other adjustments
Balance, December 31, 2023239 
Additions charged to income tax expense32 
Reductions credited to income tax expense(11)
Other adjustments(10)
Balance, December 31, 2024250 
Additions charged to income tax expense17 
Reductions credited to income tax expense(38)
Other adjustments27 
Balance, December 31, 2025$256 
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Cybersecurity Risk Management and Strategy

The security of our products, services and corporate network is a key priority for our business. We recognize the importance of assessing, identifying, and managing material risks associated with cybersecurity threats (as defined in Item 106(a) of Regulation S-K). These risks include, among other things, operational risks, intellectual property theft, fraud, extortion, harm to employees, customers, business partners or the riding public, violation of privacy or security laws and other litigation and legal risk, and reputational risks.

Otis has taken a risk-based approach to cybersecurity, which considers the sensitivity and volume of the relevant data, the potential effects on third parties and individuals, the needs of our business, and the costs and/or practicality of remediation. Based on this qualitative and quantitative assessment, we determine if identified cybersecurity risks are at an acceptable level, or should be mitigated or transferred.

We have implemented cybersecurity policies throughout our operations, including designing and incorporating cybersecurity, as appropriate, into our products and services while they are being developed. Our enterprise risk management ("ERM") process considers cybersecurity threat risks alongside other company risks as part of our overall risk assessment process. Additionally, cybersecurity functional groups incorporate external research and intelligence gathering to keep the organization informed of new and evolving cyber risks.
We have implemented several cybersecurity processes, technologies, and controls to aid in our efforts to assess, identify, and manage material risks from cybersecurity threats, and to protect against, detect and respond to cybersecurity incidents (as defined in Item 106(a) of Regulation S-K), including, among others, the following:

established a global Security Operations Center to support visibility to cybersecurity incidents in real time;
require all salaried Otis colleagues to complete an annual cybersecurity training program where specific threats and scenarios are highlighted based on our analysis of current risks to the organization;
conduct regular phishing email simulations for employees and contractors with access to corporate email systems to enhance awareness and responsiveness to such possible threats;
maintain a robust Cybersecurity Incident Response Plan, which provides a framework for handling cybersecurity incidents based on, among other factors, the potential severity of the incident and facilitates cross-functional coordination across Otis;
periodically run tabletop exercises to simulate a response to a cybersecurity incident and use the findings to improve our processes and technologies;
maintain cybersecurity insurance and regularly review our policy and levels of coverage based on current risks;
monitor emerging data protection and cybersecurity laws, and implement changes to our processes, systems and offerings designed to comply, and through policy, practice and contract (as applicable) require employees, as well as third parties who provide services on our behalf, to treat customer information and data with care;
conduct several cyber-specific internal audits per year; and
engage consultants and other third parties in connection with our cybersecurity practices.

As part of the above processes, we conduct monthly third-party scanning of our network.

Otis also applies a risk-based approach to mitigate cybersecurity risks associated with our use of third-party service providers, including those in our supply chain that have access to our customer and employee data or our systems. Third-party risks are included within our ERM process. In addition, cybersecurity considerations affect the selection and oversight of our third-party service providers. We perform due diligence on third parties that have access to our most critical systems, data or facilities that house such systems or data, and based on our risk assessment put in place contractual undertakings and oversight, to manage and reduce the risks associated with such third-party vendors. Such contractual undertakings include requirements to comply with administrative, technical and physical safeguards to satisfy the requirements for certification under ISO 27001, to provide notification of cyber incidents involving our systems or data and an agreement to be subject to cybersecurity audits, which we conduct as appropriate.
While Otis has not experienced a material cybersecurity incident to date, see Item 1A in this Form 10-K for more information regarding cybersecurity-related risks that could materially affect our business strategy, results of operations, or financial condition, under the headings "Information security, data privacy and identity protection may require significant resources and present certain risks to our business, reputation and financial condition", "Our business and financial performance depend on continued substantial investment in information technology infrastructure, which may not yield anticipated benefits, and may be adversely affected by cyberattacks on information technology infrastructure and products and other business disruptions" and "We depend on our intellectual property, and have access to certain intellectual property and information of our customers, suppliers and distributors; infringement or failure to protect our intellectual property could adversely affect our future growth and success".
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] The security of our products, services and corporate network is a key priority for our business. We recognize the importance of assessing, identifying, and managing material risks associated with cybersecurity threats (as defined in Item 106(a) of Regulation S-K). These risks include, among other things, operational risks, intellectual property theft, fraud, extortion, harm to employees, customers, business partners or the riding public, violation of privacy or security laws and other litigation and legal risk, and reputational risks.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Cybersecurity Governance

Otis has established a three-level governance model for managing cybersecurity risks. Cybersecurity risks are overseen by the Audit Committee of our Board of Directors (the "Board"). Our Chief Digital Officer ("CDO") and Chief Information Security Officer ("CISO") briefed the Audit Committee and other members of the Board on the Otis Cybersecurity Program, the cyber-threat landscape and cyber-resiliency two times in 2025. Our Cybersecurity Program is directed by both our CDO and CISO and we have established a Cyber Governance Council and Steering Committee made up of senior management (including our CEO). These committees are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including the operation of our incident response plan.
Members of our Board also received briefings on risks associated with AI, data protection (including data privacy laws), our incident response plan and our IT infrastructure in 2025. In addition, the Audit Committee participated in a simulated cybersecurity incident tabletop exercise in 2025. Several members of our Board hold a CERT Certificate in Cybersecurity Oversight issued by the CERT Division of the Software Engineering Institute at Carnegie Mellon University, and two members of our Audit Committee attended a continuing education class related to AI governance and strategy through the National Association of Corporate Directors ("NACD") in 2025.
Our CDO and CISO collectively have over 25 years of prior work experience in various roles involving managing information security, developing cybersecurity strategy and implementing effective information and cybersecurity programs, as well as relevant degrees and certifications, including Certified Information Security Manager certification and NACD Cyber training. All Otis colleagues engaged in cybersecurity are required to have a baseline certification (such as Security+, CISSP or CISM), as well as an operational cyber certification (for example, incident response or forensics analysis).
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Chief Digital Officer ("CDO") and Chief Information Security Officer ("CISO") briefed the Audit Committee and other members of the Board on the Otis Cybersecurity Program, the cyber-threat landscape and cyber-resiliency two times in 2025.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
Otis has established a three-level governance model for managing cybersecurity risks. Cybersecurity risks are overseen by the Audit Committee of our Board of Directors (the "Board"). Our Chief Digital Officer ("CDO") and Chief Information Security Officer ("CISO") briefed the Audit Committee and other members of the Board on the Otis Cybersecurity Program, the cyber-threat landscape and cyber-resiliency two times in 2025. Our Cybersecurity Program is directed by both our CDO and CISO and we have established a Cyber Governance Council and Steering Committee made up of senior management (including our CEO). These committees are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including the operation of our incident response plan.
Cybersecurity Risk Role of Management [Text Block] Our CDO and CISO collectively have over 25 years of prior work experience in various roles involving managing information security, developing cybersecurity strategy and implementing effective information and cybersecurity programs, as well as relevant degrees and certifications, including Certified Information Security Manager certification and NACD Cyber training. All Otis colleagues engaged in cybersecurity are required to have a baseline certification (such as Security+, CISSP or CISM), as well as an operational cyber certification (for example, incident response or forensics analysis).
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our Chief Digital Officer ("CDO") and Chief Information Security Officer ("CISO") briefed the Audit Committee and other members of the Board on the Otis Cybersecurity Program, the cyber-threat landscape and cyber-resiliency two times in 2025. Our Cybersecurity Program is directed by both our CDO and CISO and we have established a Cyber Governance Council and Steering Committee made up of senior management (including our CEO).
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CDO and CISO collectively have over 25 years of prior work experience in various roles involving managing information security, developing cybersecurity strategy and implementing effective information and cybersecurity programs, as well as relevant degrees and certifications, including Certified Information Security Manager certification and NACD Cyber training.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Members of our Board also received briefings on risks associated with AI, data protection (including data privacy laws), our incident response plan and our IT infrastructure in 2025. In addition, the Audit Committee participated in a simulated cybersecurity incident tabletop exercise in 2025. Several members of our Board hold a CERT Certificate in Cybersecurity Oversight issued by the CERT Division of the Software Engineering Institute at Carnegie Mellon University, and two members of our Audit Committee attended a continuing education class related to AI governance and strategy through the National Association of Corporate Directors ("NACD") in 2025.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Principles of Consolidation and Basis of Presentation
Principles of Consolidation and Basis of Presentation. The accompanying Consolidated Financial Statements include the accounts of Otis and its controlled subsidiaries, as well as entities where Otis has a variable interest and is the primary beneficiary as defined by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation. The factors we use to determine the primary beneficiary of a variable interest entity ("VIE") may include decision authority, control over management of day-to-day operations and the amount of our equity investment in relation to others' investments.

All significant intercompany accounts and transactions within the Company have been eliminated in the preparation of the Consolidated Financial Statements.

Certain amounts for prior years have been reclassified to conform to the current year presentation, which are immaterial.
Use of Estimates
Use of Estimates. The preparation of the Consolidated Financial Statements and accompanying notes in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. In addition, estimates and assumptions may impact the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.

We assessed certain accounting matters that generally require consideration of forecasted financial information in the context of the information reasonably available to us and the unknown future impacts of macroeconomic conditions, including inflationary pressures, higher interest rates and tighter credit conditions as of December 31, 2025 and through the date of this report. The accounting matters assessed included, but were not limited to, our allowance for credit losses, the carrying value of our goodwill and other long-lived assets, financial assets and revenue recognition. While there was not a material impact to our Consolidated Financial Statements resulting from our assessments of these matters, future assessment of our current expectations at that time of the magnitude and duration of these macroeconomic conditions, as well as other factors, could result in material impacts to our Consolidated Financial Statements in future reporting periods.

New import tariffs implemented by the U.S. and other countries, as currently in effect, could have a material impact on our results in 2026 and future years. The impact of tariffs is dependent upon negotiations with customers and suppliers and other mitigation efforts and potential further changes in global trade policies, including higher tariffs in the U.S. or other countries.

We also assessed certain accounting matters as they relate to the ongoing conflict between Russia and Ukraine and the conflicts in the Middle East, including, but not limited to, our allowance for credit losses, the carrying value of long-lived assets, revenue recognition and the classification of assets. There was not a material impact to our Consolidated Financial Statements resulting from our assessment of these matters. We continue to assess the impact on our results of operations, financial position and overall performance as the situations develop and any broader implications they may have on the global economy.
Cash and Cash Equivalents and Restricted Cash
Cash and Cash Equivalents. Cash and cash equivalents includes cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less.
Restricted Cash. In certain circumstances we are required to maintain cash deposits with certain banks with respect to contractual or other legal obligations, and therefore the use of these cash deposits for general operational purposes is restricted. Our restricted cash balances are $9 million and $21 million as of December 31, 2025 and 2024, respectively, which are primarily included in Other current assets in the Consolidated Balance Sheets.
Accounts Receivable
Accounts Receivable. The Company records accounts receivable when the right to consideration becomes unconditional. We regularly evaluate the collectability of our accounts receivable and maintain reserves for expected credit losses. We do not believe that accounts receivable represent significant concentrations of credit risk because of the diversified portfolio of individual customers and geographic areas.

Trade receivables. Trade receivables as of December 31, 2025 and 2024 are $3.7 billion and $3.4 billion, respectively. Trade receivables include billed receivables which are currently due from customers and unbilled receivables where we have satisfied our performance obligations but the amounts due may not be currently billable to the customer under the terms of the contract. Amounts are billed as work progresses in accordance with agreed-upon contract terms, either at periodic intervals or upon achievement of contractual milestones.

Retainage. Current and long-term accounts receivable as of December 31, 2025 and 2024 include retainage of $58 million and $57 million, respectively. Retainage represents amounts that, pursuant to the applicable contract, are not due until after project completion and acceptance by the customer.

Customer Financing Notes Receivable. Through financing arrangements with our customers, we extend payment terms, which are generally not more than one year in duration. Customer financing notes receivable as of December 31, 2025 and 2024 are $47 million and $55 million, respectively, and are included in Accounts receivable, net as of December 31, 2025 and 2024.

Credit Losses. We are exposed to credit losses primarily through our net sales of products and services to our customers which are recorded as Accounts Receivable, net in the Consolidated Balance Sheets. We evaluate each customer's ability to pay through assessing customer creditworthiness, historical experience and current economic conditions through a reasonable forecast period. Factors considered in our evaluation of assessing collectability and risk include: underlying value of any collateral or security interests, significant past due balances, historical losses and existing economic conditions including country and political risk. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to the allowance for credit losses. We may require collateral or prepayment to mitigate credit risk.

We estimate expected credit losses of financial assets with similar risk characteristics. We determine an asset is impaired when our assessment identifies there is a risk that we will be unable to collect amounts due according to the contractual terms of the agreement. We monitor our ongoing credit exposure through reviews of customer balances against contract terms and due dates, current economic conditions and dispute resolution. Estimated credit losses are written off in the period in which the financial asset is no longer collectible.

The changes in allowance for credit losses related to Accounts receivable, net for 2025, 2024, and 2023 are as follows:

(dollars in millions)202520242023
Balance as of January 1$125 $130 $152 
Provision for expected credit losses33 34 29 
Write-offs charged against the allowance for expected credit losses(39)(32)(48)
Foreign exchange and other6 (7)(3)
Balance as of December 31$125 $125 $130 

Factoring. The Company may sell certain trade accounts and notes receivable to lending institutions primarily to manage credit risk. Financial assets sold under these arrangements are excluded from Accounts receivable, net in the Company’s Consolidated Balance Sheets at the time of sale if the Company has surrendered control over the related assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. Gains and losses stemming from transfers reported as sales are included in Interest expense (income), net in the accompanying Consolidated Statements of Operations.
Contract Assets and Liabilities/Revenue Recognition
Contract Assets and Liabilities. Contract assets and liabilities represent the difference in the timing of revenue recognition from receipt of cash from our customers and billings.

Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billings. Performance obligations partially satisfied in advance of customer billings are included in Contract assets, current. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. See Note 4, "Contract Assets and Liabilities" for further discussion of contract assets and liabilities.
Revenue Recognition. We recognize revenue in accordance with FASB ASC Topic 606: Revenue from Contracts with Customers and its related amendments, (referred to, collectively, as "ASC 606"). The Company's revenue streams include new equipment, maintenance and repair, and modernization. New equipment, modernization and repair services revenue are recognized over time as we are enhancing an asset the customer controls. Maintenance revenue is recognized on a straight-line basis over the life of the maintenance contract.

New Equipment, Modernization and Repair Services. For new equipment and modernization transactions, equipment and installation are typically procured in a single contract providing the customer with a complete installed elevator or escalator unit. The combination of equipment and installation promises are typically a single performance obligation. For repair services, the customer typically contracts for specific short-term services which form a single performance obligation.

For these performance obligations, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress. Incurred costs represent work performed, which corresponds with and best depicts transfer of control or the enhancement of the customer’s assets. Contract costs included in the calculation are comprised of labor, materials, subcontractors’ costs or other direct costs and indirect costs, which include indirect labor costs. In developing our cost estimates, we utilize a combination of our historical cost experience and expected costs considering current circumstances. Specific to new equipment and modernization arrangements, the Company, based on project progression, reviews cost estimates for modification on significant contracts on a quarterly basis and when circumstances change, and for others, no less frequently than annually or when circumstances change and warrant a modification to a previous estimate. These estimates form the basis for the amount of revenue to be recognized and include the latest updated total transaction price, costs and risks for each contract. These estimates for our ongoing contracts may materially change due to the change and completions of the contract scopes, cost estimates and customers' plans, among other factors.

For performance obligations recognized under the cost to cost method, we record changes in contract estimates using the cumulative catch-up method. Modifications are recognized as a cumulative catch-up or treated as a separate accounting contract if the modification adds distinct goods or services and the modification is priced at its stand-alone selling price.

Maintenance. Our customers purchase maintenance contracts which include services such as required periodic maintenance procedures, preventive services and stand ready obligations to remediate issues with the elevator/escalator when and if they arise. Given the continuous nature of these services throughout the year, we recognize revenue on maintenance contracts on a straight-line basis which aligns with the cost profile of these services. Contractual changes are typically recognized prospectively as most modifications are extensions of the existing arrangement.

Transaction Price Considerations. Our contracts with customers typically include fixed payments to Otis. These fixed payments are generally received as we progress the performance obligations to the customers. As a result, we have not identified any significant financing elements in our contracts, and our contracts do not have significant estimates related to variable consideration except in the case of a project having an underlying performance issue, which is rare. In situations where multiple performance obligations in a single contract exist (e.g., both new equipment and maintenance), the transaction price is allocated to each performance obligation in proportion to its stand-alone selling price. Estimates are made to account for changes in transaction prices attributable to pricing disputes that occur subsequent to the inception of contracts, based upon historical experience and the status of contracts.

Certain Costs to Obtain or Fulfill Contracts. Certain costs to obtain or fulfill a contract with a customer must be capitalized, to the extent recoverable from the associated contract margin, and subsequently amortized as the products or services are delivered to the customer. Sales commissions related to new equipment, modernization and maintenance contracts, excluding renewals, are capitalized as contract fulfillment costs and are amortized consistent with the pattern of transfer of the goods or services. Customer contract costs, which do not qualify for capitalization as contract fulfillment costs, are expensed as incurred.

Loss Contracts. Loss provisions on contracts are recognized to the extent that estimated contract costs exceed the estimated consideration from the products or services contemplated under the contractual arrangement. For new commitments, we generally record loss provisions at contract inception. For existing commitments, anticipated losses on contractual arrangements are recognized in the period in which losses become probable.
Remaining Performance Obligations ("RPO"). RPO represents the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied.
Inventories
Inventories. Inventories are stated at the lower of cost or estimated realizable value and are primarily based on a first-in, first-out method. Valuation write-downs for excess, obsolete and slow-moving inventory are estimated by comparing the inventory levels of individual parts to both future sales forecasts or production requirements and historical usage rates in order to identify inventory where the resale value or replacement value is less than inventoriable cost. See Note 5, "Inventories" for further details of the inventories by classification.
Fixed Assets
Fixed Assets. Fixed assets, including software capitalized for internal-use, are recorded at cost. Depreciation of fixed assets is computed over the fixed assets' useful lives on a straight-line basis, unless another systematic and rational basis is more representative of the fixed asset's pattern of use. See Note 6, "Fixed Assets" for further details of useful lives.

Internal Use Software. The Company capitalizes direct costs of services used in the development of, and external software acquired for use as, internal-use software. Amounts capitalized are amortized over a period ranging from three to five years, on a straight-line basis, unless another systematic and rational basis is more representative of the software's use. Amounts are reported as a component of Machinery and equipment.
Asset Retirement Obligations
Asset Retirement Obligations. The Company records the fair value of legal obligations associated with the retirement of tangible long-lived assets in the period in which the legal obligations are determined to exist. Upon initial recognition of a liability, the Company capitalizes the cost of the asset retirement obligation by increasing the carrying amount of the related long-lived asset. Over time, the liability is adjusted for changes in its present value and the capitalized cost is depreciated over the useful life of the related asset.
Fair Value of Financial Instruments
Fair Value of Financial Instruments. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:

Level I – Quoted prices for identical instruments in active markets.

Level II – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level III – Instruments whose significant value drivers are unobservable.

The carrying amount of current trade receivables, accounts payable and accrued expenses approximates fair value due to the short maturity (less than one year) of the instruments.
Equity Method Investments
Equity Method Investments. Entities in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other assets in the Consolidated Balance Sheets. Under this method of accounting, our share of the net earnings or losses of the investee entity is included in Other income (expense), net in the Consolidated Statements of Operations since the activities of the investee entity are closely aligned with the operations of the Company. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period.
Business Combinations
Business Combinations. We account for transactions that are classified as business combinations in accordance with the FASB ASC Topic 805: Business Combinations. Once a business is acquired, the fair values of the identifiable assets acquired and liabilities assumed are determined with the excess cost recorded to goodwill. As required, preliminary fair values are determined once a business is acquired, with the final determination of the fair values being completed within the one-year measurement period from the date of acquisition.
Goodwill, Intangible Assets and Long-Lived Assets
Goodwill, Intangible Assets and Long-Lived Assets. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Intangible assets consist of service portfolios, patents, trademarks/trade names, customer relationships and other intangible assets. Acquired intangible assets are recognized at fair value during acquisition accounting and then amortized to Cost of products and services sold and Selling, general and administrative over the applicable useful lives.

Goodwill and Indefinite-Lived Intangible Assets. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Goodwill and indefinite-lived intangible assets are subject to impairment testing annually or when a triggering event occurs using the guidance and criteria described in FASB ASC Topic 350: Intangibles – Goodwill and Other. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value.

We test goodwill for impairment at a level within the Company referred to as the reporting unit, which is one level below the operating segment level. When testing goodwill for impairment, the Company may first assess qualitative factors. If an initial qualitative assessment identified that it is more likely than not that the fair value of a reporting unit is less than its carrying value, additional quantitative testing is performed. The Company may also elect to skip the qualitative testing and proceed directly to the quantitative testing. If the quantitative testing indicates that goodwill is impaired, an impairment charge is recognized based on the difference between the reporting unit's carrying value and its fair value. When it is determined that a quantitative analysis is required, the Company primarily utilizes a discounted cash flow methodology to calculate the fair value of its reporting units. The Company completed its most recent annual impairment testing as of July 1, 2025, and determined in the qualitative assessment that quantitative testing is not necessary. There were no triggering events since the annual impairment test.

Finite-Lived Intangible Assets and Long-Lived Assets. Useful lives of finite-lived intangible assets are estimated based upon the nature of the intangible asset. These intangible assets are amortized based on the pattern in which the economic benefits of the intangible assets are consumed or if straight-line amortization approximates the pattern of economic benefit, a straight-line amortization method may be used. The range of estimated useful lives is as follows:

Purchased service portfolios
5 to 25 years
Patents, trademarks/trade names
4 to 40 years
Customer relationships and other
1 to 20 years

The Company evaluates the potential impairment of long-lived assets, including finite-lived intangible assets, whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. If the carrying value of other long-lived assets held and used exceeds the sum of the undiscounted expected future cash flows, the carrying value is written down to fair value. See Note 6, "Fixed Assets" and Note 7, "Business Acquisitions, Dispositions, Goodwill and Intangible Assets" for additional information regarding intangible assets and other long-lived assets.
Income Taxes
Income Taxes. In the ordinary course of business, there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest expense has also been recognized. We recognize accrued interest related to unrecognized tax benefits in Interest expense (income), net. Penalties, if incurred, would be recognized as a component of Income tax expense.

The U.S. Tax Cuts and Jobs Act ("TCJA") subjects the Company to a tax on Global Intangible Low-Taxed Income ("GILTI"). GILTI is a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. We account for GILTI as a period cost as incurred.
See Note 14, "Income Taxes" for additional information.
Self-Insurance
Self-Insurance. The Company is primarily self-insured for a number of risks including, but not limited to, workers’ compensation, general liability, automobile liability and employee-related healthcare benefits. The Company has obtained insurance coverage for amounts exceeding individual and aggregate loss limits. The Company accrues for known future claims and incurred but not reported losses within Accrued liabilities and Other long-term liabilities in the Consolidated Balance Sheets, totaling $240 million and $238 million as of December 31, 2025 and 2024, respectively.
Derivatives and Hedging Activity
Derivatives and Hedging Activity. We have used derivative instruments, principally forward contracts, to help manage certain foreign currency and commodity price exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. By their nature, all financial instruments involve market and credit risks. We enter into derivative and other financial instruments with major investment-grade financial institutions and have policies to monitor the credit risk of those counterparties. We limit counterparty exposure and concentration of risk by diversifying counterparties. While there can be no assurance, we do not anticipate any material non-performance by any of these counterparties.
Designated Derivative Instruments. Derivatives used for hedging purposes may be designated and effective as a hedge of the identified risk exposure at the inception of the contract. All derivative instruments are recorded in the Consolidated Balance Sheets at fair value. Derivatives are used to hedge foreign currency denominated balance sheet items and commodity prices for materials recognized in cost of sales, and are reported directly in earnings along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate. Gains and losses on derivatives designated as cash flow hedges are recorded in Other comprehensive income (loss), net of tax and reclassified to earnings as a component of product sales or expenses, as applicable, when the hedged transaction occurs. Gains and losses on derivatives designated as cash flow hedges are recorded in Other operating activities, net within the Consolidated Statement of Cash Flows until reclassification to earnings. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded in earnings in the period it occurs.

Additional information pertaining to net investment hedging is included in Note 16, "Financial Instruments".

Non-Designated Derivative Instruments. To the extent the hedge accounting criteria are not applied, the foreign currency forward contracts and commodity price contracts are utilized as economic hedges and changes in the fair value of these contracts are recorded in earnings in the period in which they occur. Additional information pertaining to these contracts is included in Note 16, "Financial Instruments".

In addition, the Company periodically enters into sales contracts denominated in currencies other than the functional currency of the parties to the transaction. The Company accounts for these transactions separately valuing the embedded derivative component of these contracts. The changes in the fair value of these embedded derivatives are immaterial in 2025, 2024 and 2023.
Environmental
Environmental. Environmental investigatory, remediation, operating and maintenance costs are accrued when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including current laws, regulations and prior remediation experience. Where no amount within a range of estimates is more likely, the minimum is accrued. Liabilities with fixed or reliably determinable future cash payments are discounted. Accrued environmental liabilities are not reduced by potential insurance reimbursements. See Note 20, "Contingent Liabilities" for additional details on the environmental remediation activities.
Research and Development
Research and Development. These costs are expensed in the period incurred and are shown on a separate line of the Consolidated Statements of Operations. Research and development expenses, covering research and the advancement of potential new and improved products and their uses, primarily include salaries and other employment costs.
Other Income (Expense), Net Other Income (Expense), Net. Other income (expense), net includes the impact of changes in the fair value and settlement of certain derivatives, gains or losses on sale of businesses and fixed assets, earnings from equity method investments, fair value changes on marketable securities, impairments, UpLift transformation costs, Separation-related adjustments, gains on insurance recoveries and certain other infrequent operating income and expense items.
Foreign Exchange
Foreign Exchange. We conduct business in many different currencies and, accordingly, are subject to the inherent risks associated with foreign exchange rate movements. The financial position and results of operations of substantially all of our foreign subsidiaries are measured using the local currency as the functional currency. Foreign currency denominated assets and liabilities are translated into U.S. dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries are deferred within Accumulated other comprehensive income (loss).
Pension and Postretirement Obligations
Pension and Postretirement Obligations. Guidance under FASB ASC Topic 715: Compensation – Retirement Benefits requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Under this guidance, actuarial gains and losses, prior service costs or credits and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in Other comprehensive income (loss), net of tax effects, until they are amortized as a component of net periodic benefit cost. See Note 11, "Employee Benefit Plans" for additional information.
Additional Paid-in Capital and Noncontrolling Interest
Additional Paid-in Capital. Additional paid-in capital includes the value of stock-based award activity, as well as the difference between the cost of acquiring the Noncontrolling interest in consolidated subsidiaries and Otis' carrying value of the Noncontrolling interest associated with those subsidiaries.

Noncontrolling Interest. Ownership interest in the Company's consolidated subsidiaries held by parties other than the Company are presented separately from Shareholders' Equity (Deficit) as "Noncontrolling interest" within equity in the Consolidated Balance Sheets. The amount of net income attributable to Otis Worldwide Corporation and the noncontrolling interest are both presented in the Consolidated Statements of Operations.

All noncontrolling interest with redemption features, such as put options or other contractual obligations to acquire the noncontrolling interest, that are not solely within our control are redeemable noncontrolling interest. Redeemable noncontrolling interest are reported in the mezzanine section of the Consolidated Balance Sheets, between Liabilities and Shareholders' Equity (Deficit), at the greater of redemption value or initial carrying value.

The activity attributable to noncontrolling interest and redeemable noncontrolling interest for 2025, 2024 and 2023 is presented in the Consolidated Statements of Changes in Equity.
Separation from UTC and Related Costs
Separation from UTC and Related Costs. The Separation, as further described in Note 1, "Business Overview", was completed pursuant to a Separation and Distribution Agreement ("Separation Agreement") and other agreements with our former parent, UTC, and Carrier Global Corporation ("Carrier"), related to the Separation, including but not limited to a tax matters agreement (the "Tax Matters Agreement" or "TMA").

We entered into the TMA with our former parent UTC and Carrier that governs the parties’ respective rights, responsibilities and obligations with respect to tax matters (including responsibility for taxes, entitlement to refunds, allocation of tax attributes, preparation of tax returns, control of tax contests and other tax matters). Subject to certain exceptions set forth in the TMA, Otis generally is responsible for federal, state and foreign taxes imposed on a separate return basis on Otis (or any of its subsidiaries) with respect to taxable periods (or portions thereof) that ended on or prior to the date of the Distribution. The TMA provides special rules that allocate responsibility for tax liabilities arising from a failure of the Separation transactions to qualify for tax-free treatment based on the reasons for such failure.
Accounting Pronouncements
Accounting Pronouncements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"), which provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Additionally, in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 ("ASU 2022-06"), which allows ASU 2020-04 to be adopted and applied prospectively to contract modifications made on or before December 31, 2024. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements.

In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Topic 450-50): Disclosure of Supplier Finance Program Obligations, which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about obligations outstanding at the end of the reporting period, including a rollforward of those obligations. The guidance does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations. ASU 2022-04 is effective for fiscal years beginning after December 15, 2022, except for the disclosure of rollforward information, which is effective for fiscal years beginning after December 15, 2023. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements, as disclosed in Note 2, "Summary of Significant Accounting Policies" under the heading "Supplier Finance Programs".

In August 2023, the FASB issued ASU 2023-05, Business Combinations - Joint Ventures Formations (Subtopic 805-60): Recognition and Initial Measurement ("ASU 2023-05"), which requires that joint ventures, upon formation, apply a new basis of accounting by initially measuring assets and liabilities at fair value. The amendments in ASU 2023-05 are effective for joint ventures that are formed on or after January 1, 2025. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. We adopted this standard effective for the reporting period December 31, 2024. The adoption of this standard resulted in additional disclosure. See Note 21, "Segment Financial Data" for further details.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This update also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. The adoption of this ASU resulted in additional annual disclosure, but did not impact our consolidated financial position, results of operations, or cash flows.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this update require disclosure, in the notes to financial statements, on disaggregated information about specific categories underlying certain income statement expense line items that are considered relevant, including the purchase of inventory, employee compensation, depreciation, and intangible asset amortization. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. Adoption of this ASU will result in additional disclosure, but will not impact our consolidated financial position, results of operations, or cash flows.

In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. The amendments in this update require an entity involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a VIE that meets the definition of a business to consider the factors in the ASU to determine which entity is the accounting acquirer. The amendments in ASU 2025-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. We are currently evaluating the impact of this standard, however; we do not expect it to have a material impact on our Consolidated Financial Statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this Update provide a practical expedient when developing reasonable and supportable forecasts as part of estimating expected credit losses, allowing entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The amendments in ASU 2025-05 are effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. We are currently evaluating the impact of this standard, however; we do not expect it to have a material impact on our Consolidated Financial Statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this update remove all references to prescriptive and sequential software development stages (referred to as "project stages") throughout Subtopic 350-40. The amendments in this update specify that the disclosures in Subtopic 360-10, Property, Plant, and Equipment—Overall, are required for all capitalized internal-use software costs, regardless of how those costs are presented in the financial statements. Additionally, the amendments clarify that the intangibles disclosures in paragraphs 350-30-50-1 through 50-3 are not required for capitalized internal-use software costs. The amendments in ASU 2025-06 are effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of this standard.

In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. The amendments in this update exclude from derivative accounting non-exchange-traded contracts with underlyings that are based on operations or activities specific to one of the parties to the contract. The amendments in ASU 2025-07 are effective for fiscal years beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of this standard.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. Consistent with the original objective of Update 2017-12, the objective of this Update is to more closely align hedge accounting with the economics of an entity’s risk management activities. The amendments in this Update are intended to better reflect those strategies in financial reporting by enabling entities to achieve and maintain hedge accounting for highly effective economic hedges of forecasted transactions. The amendments in ASU 2025-09 apply to any entity that elects to apply hedge accounting in accordance with Topic 815 and are effective for fiscal years beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of this standard.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The amendments in this Update result in a comprehensive list of interim disclosures that are required by GAAP. In developing the list of disclosures required by other Topics, the Board focused on identifying the interim disclosures that are currently required under GAAP. The objective of the amendments is to provide clarity about the current requirements, rather than evaluate whether to expand or reduce interim disclosure requirements. The amendments in ASU 2025-11 are effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. We are currently evaluating the impact of this standard.

Other new accounting pronouncements issued but not effective until after December 31, 2025 did not and are not expected to have a material impact on our financial position, results of operations or cash flows.
v3.25.4
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Allowance for Credit Losses
The changes in allowance for credit losses related to Accounts receivable, net for 2025, 2024, and 2023 are as follows:

(dollars in millions)202520242023
Balance as of January 1$125 $130 $152 
Provision for expected credit losses33 34 29 
Write-offs charged against the allowance for expected credit losses(39)(32)(48)
Foreign exchange and other6 (7)(3)
Balance as of December 31$125 $125 $130 
Intangible Assets Disclosure The range of estimated useful lives is as follows:
Purchased service portfolios
5 to 25 years
Patents, trademarks/trade names
4 to 40 years
Customer relationships and other
1 to 20 years
Schedule of Supplier Finance Program
The changes in outstanding obligations confirmed as valid by the Company under its supplier finance programs for 2025 and 2024 are as follows:

(dollars in millions)20252024
Confirmed obligations outstanding as of January 1$714 $627 
Invoices confirmed during the year2,064 2,118 
Confirmed invoices paid during the year(1,970)(2,013)
Foreign currency exchange impact23 (18)
Confirmed obligations outstanding as of December 31$831 $714 
v3.25.4
Earnings per Share (Tables)
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
(dollars in millions, except per share amounts; shares in millions)20252024
2023
Net income attributable to common shareholders$1,384 $1,645 $1,406 
Basic weighted average number of shares outstanding392.8 401.7 411.4 
Stock awards and equity units (share equivalent) 2.1 2.7 3.2 
Diluted weighted average number of shares outstanding394.9 404.4 414.6 
Earnings Per Share of Common Stock:
Basic$3.52 $4.10 $3.42 
Diluted$3.50 $4.07 $3.39 
v3.25.4
Contract Assets and Liabilities (Tables)
12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Contract Assets and Liabilities
Total Contract assets and Contract liabilities as of December 31, 2025 and 2024 are as follows:

(dollars in millions)20252024
Contract assets, current$699 $706 
Total contract assets699 706 
Contract liabilities, current(2,611)(2,598)
Contract liabilities, noncurrent (included within Other long-term liabilities)(29)(38)
Total contract liabilities (2,640)(2,636)
Net contract liabilities$(1,941)$(1,930)
v3.25.4
Inventories (Tables)
12 Months Ended
Dec. 31, 2025
Inventory Disclosure [Abstract]  
Schedule of Inventory
Inventories consisted of the following as of December 31:

(dollars in millions)20252024
Raw materials and work-in-process$139 $134 
Finished goods474 423 
Total$613 $557 
v3.25.4
Fixed Assets (Tables)
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Fixed Assets
Fixed assets consisted of the following as of December 31:

(dollars in millions)Estimated Useful Lives20252024
Land$39 $38 
Buildings and improvements
20 - 40 Years
498 516 
Machinery and equipment
3 - 12 Years
1,311 1,234 
Assets under construction156 105 
2,004 1,893 
Less: Accumulated depreciation(1,261)(1,192)
Total$743 $701 
v3.25.4
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Goodwill Changes in our Goodwill balances in 2025 were as follows:
(dollars in millions)
Balance as of
December 31, 2024
Goodwill Resulting
From Business Combinations
Foreign Currency
Translation 
and Other
Balance as of
December 31, 2025
New Equipment$277 $ $17 $294 
Service1,271 65 65 1,401 
Total$1,548 $65 $82 $1,695 

Changes in our Goodwill balances in 2024 were as follows:

(dollars in millions)
Balance as of
December 31, 2023
Goodwill Resulting
From Business Combinations
Foreign Currency
Translation 
and Other
Balance as of
December 31, 2024
New Equipment$295 $— $(18)$277 
Service1,293 46 (68)1,271 
Total$1,588 $46 $(86)$1,548 
Schedule of Intangible Assets Identifiable intangible assets are comprised of the following:
20252024
(dollars in millions)Gross AmountAccumulated
Amortization
Gross AmountAccumulated
Amortization
Amortized:
Purchased service portfolios$2,133 $(1,818)$1,930 $(1,640)
Patents, trademarks/trade names19 (16)18 (16)
Customer relationships and other61 (43)52 (39)
2,213 (1,877)2,000 (1,695)
Unamortized:
Trademarks and other7  — 
Total$2,220 $(1,877)$2,006 $(1,695)
Schedule of Future Amortization of Intangible Assets
The estimated future amortization of intangible assets over the next five years is as follows:

(dollars in millions)20262027202820292030
Future amortization$46 $40 $35 $32 $29 
v3.25.4
Borrowings and Lines of Credit (Tables)
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Short-Term Debt
Short-term borrowings consisted of the following as of December 31:

(dollars in millions)20252024
Commercial paper$ $— 
Other borrowings215 51 
Total short-term borrowings$215 $51 
Schedule of Long-term Debt
Long-term debt, including current portion, consisted of the following as of December 31:

(dollars in millions)20252024
2.056% notes due 2025
$ $1,300 
0.370% notes due 2026 (¥21.5 billion principal value)
137 137 
0.318% notes due 2026 (€600 million principal value)
705 624 
2.293% notes due 2027
500 500 
2.875% notes due 2027 (€850 million principal value)
999 885 
5.250% notes due 2028
750 750 
2.565% notes due 2030
1,500 1,500 
5.125% notes due 2031
600 600 
0.934% notes due 2031 (€500 million principal value)
588 520 
5.131% notes due 2035
500 — 
3.112% notes due 2040
750 750 
3.362% notes due 2050
750 750 
Other (including finance leases)6 
Total principal long-term debt7,785 8,322 
Other (discounts and debt issuance costs)(44)(49)
Total long-term debt7,741 8,273 
Less: current portion841 1,300 
Long-term debt, net of current portion$6,900 $6,973 
Schedule of Debt The Consolidated Statements of Operations for 2025, 2024 and 2023 reflects the following:
(dollars in millions)202520242023
Debt issuance costs amortization$10 $$
Total interest expense on debt217 183 155 
The average interest expense rate on our borrowings as of December 31, 2025 and 2024 was as follows:
20252024
Short-term commercial paper %— %
Total long-term debt3.0 %2.7 %
Schedule of Average Interest Expense Rate
The average interest expense rate on our borrowings for 2025, 2024 and 2023 was as follows:

202520242023
Short-term commercial paper3.8 %5.4 %5.1 %
Total long-term debt2.8 %2.5 %2.1 %
Schedule of Maturities of Long-term Debt
The schedule of principal payments required on long-term debt, excluding finance leases, for the next five years and thereafter is:

(dollars in millions)Principal Payments
2026$842 
20271,499 
2028750 
2029— 
20301,500 
Thereafter3,188 
Total $7,779 
v3.25.4
Accrued Liabilities (Tables)
12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Schedule of Accrued Liabilities
Accrued liabilities consisted of the following as of December 31:

(dollars in millions)20252024
Accrued salaries, wages and employee benefits$605 $579 
Operating lease liabilities158 120 
Accrued interest129 147 
Contractual indemnity obligations113 244 
VAT and other non-income tax payables109 123 
Accrued income taxes payable75 75 
Other liabilities658 633 
Total$1,847 $1,921 
v3.25.4
Other Long-Term Liabilities (Tables)
12 Months Ended
Dec. 31, 2025
Other Liabilities Disclosure [Abstract]  
Schedule of Other Long-Term Liabilities
Other long-term liabilities consisted of the following as of December 31:

(dollars in millions)20252024
General, product and auto liability$136 $137 
Employee benefits98 92 
Contractual indemnity obligations23 80 
Other liabilities72 74 
Total$329 $383 
v3.25.4
Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan Our plans use a December 31 measurement date consistent with our fiscal year.
(dollars in millions)20252024
Change in benefit obligation:
Beginning balance$949 $957 
Service cost34 32 
Interest cost32 32 
Actuarial (gain) loss(47)25 
Benefits paid(33)(46)
Net settlement, curtailment and special termination benefits(32)(9)
Other94 (42)
Ending balance$997 $949 
Change in plan assets:
Beginning balance$637 $609 
Actual return on plan assets48 57 
Employer contributions42 51 
Benefits paid(33)(46)
Settlements(32)(9)
Other51 (25)
Ending balance$713 $637 
Funded status:
Fair value of plan assets$713 $637 
Benefit obligations(997)(949)
Funded status of plan$(284)$(312)
Amounts recognized in the Consolidated Balance Sheets consist of:
Noncurrent assets$130 $115 
Current liability(30)(28)
Noncurrent liability(384)(399)
Net amount recognized$(284)$(312)
Amounts recognized in Accumulated other comprehensive loss consist of:
Net actuarial loss$38 $98 
Prior service cost5 
Net amount recognized$43 $99 
Schedule of Plans with Accumulated Benefit Obligation in Excess of Plan Assets
Information for pension plans with accumulated benefit obligations or projected benefit obligations in excess of plan assets as of December 31 are as follows:

(dollars in millions)20252024
Pension plans with accumulated benefit obligations in excess of plan assets:
Projected benefit obligation$411 $397 
Accumulated benefit obligation367 353 
Fair value of plan assets3 
Pension plans with projected benefit obligations in excess of plan assets:
Projected benefit obligation$533 $707 
Accumulated benefit obligation455 609 
Fair value of plan assets119 280 
Schedule of Plans with Projected Benefit Obligation in Excess of Plan Assets
Information for pension plans with accumulated benefit obligations or projected benefit obligations in excess of plan assets as of December 31 are as follows:

(dollars in millions)20252024
Pension plans with accumulated benefit obligations in excess of plan assets:
Projected benefit obligation$411 $397 
Accumulated benefit obligation367 353 
Fair value of plan assets3 
Pension plans with projected benefit obligations in excess of plan assets:
Projected benefit obligation$533 $707 
Accumulated benefit obligation455 609 
Fair value of plan assets119 280 
Schedule of Net Periodic Pension Costs
The components of the net periodic pension cost are as follows:

(dollars in millions)202520242023
Service cost$34 $32 $29 
Interest cost32 32 33 
Expected return on plan assets(35)(34)(31)
Recognized actuarial net loss3 (1)
Net settlement, curtailment and special termination benefits loss (gain)2 
Net periodic pension cost – employer$36 $32 $34 

Other changes in plan assets and benefit obligations recognized in other comprehensive loss are as follows:

(dollars in millions)202520242023
Current year actuarial (gain) loss$(60)$$93 
Prior service cost arising during period5 — — 
Amortization of actuarial gain (loss)(3)— 
Net settlement and curtailment (loss) gain(3)(1)(4)
Other5 (6)
Total recognized in other comprehensive (income) loss$(56)$(5)$91 
Net recognized in net periodic pension cost and other comprehensive (income) loss$(20)$27 $125 
Schedule of Defined Benefit Plan, Assumptions
Major assumptions used in determining the benefit obligation and net cost for pension plans are presented in the following table as weighted-averages:

Benefit ObligationNet Cost
20252024202520242023
Discount rate3.6 %3.3 %3.3 %3.4 %3.8 %
Salary scale3.0 %3.1 %3.1 %3.2 %3.1 %
Expected return on plan assets — 5.3 %5.3 %5.1 %
Interest crediting rate2.0 %1.8 %1.8 %1.7 %2.1 %
Schedule of Plan Assets
The fair values of pension plan assets as of December 31, 2025 by asset category are as follows:

(dollars in millions)Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Not Subject to LevelingTotal
Asset category
Public equities:
Global Equity Commingled Funds (1)
$86 $3 $ $ $89 
Global Equity Funds at net asset value (5)
   154 154 
Fixed income securities:
Governments22 41   63 
Corporate Bonds50 45   95 
Fixed income securities at net asset value (5)
   60 60 
Real estate (2) (5)
14 20  7 41 
Other (3) (5)
7 140  26 173 
Cash and cash equivalents (4) (5)
31 2  7 40 
Total$210 $251 $ $254 715 
Other assets and liabilities (6)
(2)
Total as of December 31, 2025$713 

(1) Represents investments in mutual funds and investments in commingled funds that invest primarily in common stocks.
(2) Represents investments in real estate including commingled funds.
(3) Represents insurance contracts and global-balanced-risk commingled funds consisting mainly of equity, bonds and some commodities.
(4) Represents short-term commercial paper, bonds and other cash or cash-like instruments.
(5) In accordance with FASB ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets.
(6) Represents trust receivables and payables that are not leveled.

The fair values of pension plan assets as of December 31, 2024 by asset category are as follows:

(dollars in millions)Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Not Subject to LevelingTotal
Asset category
Public equities:
Global Equity Commingled Funds (1)
$72 $$— $— $75 
Global Equity Funds at net asset value (5)
— — — 143 143 
Fixed income securities:
Governments14 — — 16 
Corporate Bonds44 — — — 44 
Fixed income securities at net asset value (5)
— — — 140 140 
Real estate (2) (5)
12 17 — 38 
Other (3) (5)
122 — 23 150 
Cash and cash equivalents (4) (5)
27 — — 30 
Total$174 $144 $— $318 $636 
Other assets and liabilities (6)
Total as of December 31, 2024$637 

(1) Represents investments in mutual funds and investments in commingled funds that invest primarily in common stocks.
(2) Represents investments in real estate including commingled funds.
(3) Represents insurance contracts and global-balanced-risk commingled funds consisting mainly of equity, bonds and some commodities.
(4) Represents short-term commercial paper, bonds and other cash or cash-like instruments.
(5) In accordance with FASB ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets.
(6) Represents trust receivables and payables that are not leveled.
Schedule of Multiemployer Plans
Our participation in these plans for the annual periods ended December 31 is outlined in the table below. Unless otherwise noted, the most recent Pension Protection Act ("PPA") zone status available in 2025 and 2024 is for the plan’s year-end at June 30, 2024 and June 30, 2023, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Our significant plan is in the green zone which represents a plan that is at least 80% funded and does not require a financial improvement plan ("FIP") or a rehabilitation plan ("RP").

(dollars in millions)PPA Zone StatusFIP/RP StatusContributionsSurcharge ImposedExpiration Date of Collective-Bargaining Agreement
Pension FundEIN/Pension Plan Number20252024Pending/Implemented202520242023
National Elevator Industry Pension Plan23-2694291GreenGreenNo$133$134 $128 No7/8/2027
Other funds9
Total$142$143 $137 
Schedule of Stock-based Compensation Expense and Resulting Tax Benefits
Stock-based compensation expense and the resulting tax benefits in 2025, 2024 and 2023 were as follows:

(dollars in millions)20252024
2023
Stock-based compensation expense (Share Based)$80 $73 $64 
Stock-based compensation expense (income) (Liability Awards) — — 
Total gross stock-based compensation expense80 73 64 
Less: future tax benefit(7)(7)(7)
Stock-based compensation expense, net of tax$73 $66 $57 
Schedule of Share-based Payment Arrangement, Activity
A summary of the activity under Otis' plans for 2025 follows:

Stock Appreciation RightsRestricted Share UnitsPerformance Share UnitsStock Options
(shares in thousands)SharesAverage Price*SharesAverage Price**SharesAverage Price **SharesAverage Price *
Outstanding at:
December 31, 20245,946 $71.58 943 $88.01 953 $92.08 124 $68.21 
Granted (1)
— — 503 94.07 411 98.33 — — 
Exercised / Earned (1)
(1,189)60.91 (412)85.09 (179)86.71 (54)61.41 
Cancelled(75)86.10 (97)90.41 (129)92.82 — — 
December 31, 20254,682$74.06 937 $92.16 1,056 $95.34 70 $73.38 

* Weighted-average grant price
** Weighted-average grant fair value
(1) Includes annual retainer awards issued to the Board of Directors
Schedule of Performance Share Units Outstanding, Vested and Expected to Vest
The following table summarizes information about equity awards outstanding that are vested and expected to vest and equity awards outstanding that are exercisable as of December 31, 2025:

Equity Awards Vested and Expected to VestEquity Awards That Are Exercisable
(shares in thousands; aggregate intrinsic value in millions)AwardsAverage Price *Aggregate Intrinsic ValueRemaining Term **AwardsAverage Price *Aggregate Intrinsic ValueRemaining Term **
Stock Options/Stock Appreciation Rights4,746 $74.03 $66 4.5 years4,249 $72.22 $65 4.1 years
Performance Share Units/Restricted Share Units1,929 $169 1.1 years   

* Weighted-average grant price per share
** Weighted-average contractual remaining term in years
Schedule of Valuation Assumptions The following table indicates the assumptions used in estimating fair values for stock appreciated rights and stock options granted in 2024 and 2023. Lattice-based option models incorporate ranges of assumptions for inputs; those ranges are as follows:
202520242023
Expected volatilityN/A
26.1% - 26.8%
27.8% - 28.1%
Weighted-average volatilityN/A26.8%27.9%
Expected term (in years)N/A5.36.2
Expected dividend yieldN/A1.6%1.5%
Risk-free rateN/A
3.6% - 3.7%
3.4% - 4.7%
v3.25.4
Accumulated Other Comprehensive Income (Loss) (Tables)
12 Months Ended
Dec. 31, 2025
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
A summary of the changes in each component of Accumulated other comprehensive income (loss), net of tax, for 2025, 2024 and 2023 is provided below:

(dollars in millions)Foreign
Currency
Translation
Defined Benefit
Pension and
Postretirement
Plans
Unrealized
Hedging
Gains (Losses)
Accumulated
Other
Comprehensive
Income (Loss)
Balance as of December 31, 2022$(587)$(8)$$(592)
Other comprehensive income (loss) before reclassifications, net(87)(69)(150)
Amounts reclassified, pre-tax(1)(8)(8)
Tax expense (benefit) reclassified— — — — 
Balance as of December 31, 2023(673)(78)(750)
Other comprehensive income (loss) before reclassifications, net
Amounts reclassified, pre-tax— — — — 
Tax expense (benefit) reclassified— — — — 
Balance as of December 31, 2024(672)(76)(745)
Other comprehensive income (loss) before reclassifications, net(381)39 (4)(346)
Amounts reclassified, pre-tax 3 2 5 
Tax expense (benefit) reclassified (1) (1)
Balance as of December 31, 2025$(1,053)$(35)$1 $(1,087)
v3.25.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign The sources of income from operations before income taxes are:
(dollars in millions)202520242023
United States$631 $505 $565 
Foreign1,303 1,534 1,466 
Net income before income taxes$1,934 $2,039 $2,031 
Schedule of Components of Income Tax Expense (Benefit) The income tax expense (benefit) for 2025, 2024 and 2023 consisted of the following components:
(dollars in millions)
202520242023
Current:
United States:
Federal$128 $74 $82 
State56 45 50 
Foreign399 217 462 
583 336 594 
Future:
United States:
Federal(59)(11)(24)
State(16)(1)(5)
Foreign(29)(19)(32)
(104)(31)(61)
Income tax expense$479 $305 $533 
Attributable to items (charged) credited to (deficit) equity$(15)$(6)$16 
Schedule of Effective Income Tax Rate Reconciliation Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows:
202520242023
(dollars in millions)
AmountPercentAmountPercentAmountPercent
U.S. Federal Statutory Tax Rate$406 21.0 %$428 21.0 %$427 21.0 %
State and Local Income Taxes, Net of Federal Income Tax Effect (1)
31 1.6 %35 1.7 %36 1.8 %
Foreign Tax Effects:
France:
Distributable reserve deferred adjustment  %(37)(1.8)%— — %
Other13 0.7 %14 0.7 %10 0.5 %
Germany:
Statutory tax rate difference between Germany and United States8 0.4 %25 1.2 %0.4 %
Tax litigation settlement1 0.1 %(247)(12.1)%— — %
Other(1) %— — %0.1 %
Ireland:
Nontaxable interest income(25)(1.3)%(29)(1.4)%(23)(1.1)%
Other  %0.2 %0.4 %
Luxembourg:
Nondeductible interest expense49 2.4 %53 2.6 %47 2.3 %
Other  %(4)(0.2)%(5)(0.2)%
Other foreign jurisdictions53 2.6 %94 4.6 %73 3.4 %
Effect of Changes in Tax Laws or Rates Enacted in the Current Period  %— — %— — %
Effect of Cross-Border Tax Laws:
Foreign-derived intangible income(49)(2.5)%(35)(1.7)%(23)(1.1)%
Foreign withholding tax reclassification(49)(2.5)%(43)(2.1)%(31)(1.5)%
Other13 0.7 %0.4 %10 0.5 %
Tax Credits:
Other(2)(0.1)%(1)(0.1)%(2)(0.1)%
Changes in Valuation Allowance1 0.1 %0.1 %(3)(0.2)%
Nontaxable or Nondeductible Items:
Net Indemnity Payable/(Receivable) to/(from) former parent15 0.8 %37 1.8 %— — %
Other11 0.6 %0.3 %0.3 %
Changes in Unrecognized Tax Benefits2 0.1 %— — %(4)(0.2)%
Other Adjustments2 0.1 %(3)(0.2)%(3)(0.1)%
Effective income tax rate$479 24.8 %$305 15.0 %$533 26.2 %

(1) State taxes in California and New York contributed to the majority of the tax effect in this category.
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and obligations as of December 31, 2025 and 2024 are as follows:

(dollars in millions)
20252024
Future income tax benefits:
Insurance and employee benefits$90 $109 
Other asset basis differences119 113 
Other liability basis differences453 349 
Tax loss carryforwards226 201 
Tax credit carryforwards55 54 
Valuation allowances(256)(250)
Total future income tax benefits$687 $576 
Future income tax obligations:
Intangible assets$148 $143 
Other assets basis differences221 203 
Total future income tax obligations$369 $346 
Summary of Tax Credit Carryforwards As of December 31, 2025, tax credit carryforwards, principally federal and state, and tax loss carryforwards, principally foreign, were as follows:
(dollars in millions)
Tax Credit CarryforwardsTax Loss Carryforwards
Expiration period:
2026-2030$11 $52 
2031-203512 22 
2036-20452 111 
Indefinite30 789 
Total$55 $974 
Schedule of Unrecognized Tax Benefits Roll Forward A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for 2025, 2024 and 2023 is as follows:
(dollars in millions)
202520242023
Balance at January 1$149 $394 $386 
Additions for tax positions related to the current year11 12 10 
Additions for tax positions of prior years10 — 
Reductions for tax positions of prior years(18)(12)(8)
Settlements (245)(1)
Balance at December 31$152 $149 $394 
Gross interest expense (income) related to unrecognized tax benefits$(22)$(146)$
Total accrued interest balance at December 31$64 $84 $148 
Schedule of Income Taxes Paid, Net of Refunds The income taxes paid, net of refunds, for 2025, 2024 and 2023 are as follows:
(dollars in millions)
202520242023
Income taxes paid, net of refunds
Federal$116 $55 $85 
State62 52 43 
Foreign:
China72 91 90 
France43 52 28 
Germany(102)33 32 
Japan39 41 40 
Spain47 41 39 
Foreign Other194 221 189 
Total income taxes paid, net of refunds$471 $586 $546 
v3.25.4
Restructuring and Transformation Costs (Tables)
12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring and Related Costs
During 2025, 2024 and 2023, we recorded restructuring costs for new and ongoing restructuring actions, including UpLift actions beginning in 2023, as follows:
(dollars in millions)202520242023
UpLiftOtherTotalUpLiftOtherTotalUpLiftOtherTotal
Cost of products and services sold$13 $31 $44 $$20 $28 $— $$
Selling, general and administrative63 23 86 23 20 43 25 36 61 
Total $76 $54 $130 $31 $40 $71 $25 $42 $67 
Schedule of Restructuring Reserve by Type of Cost The following table summarizes the accrual balance and utilization for the restructuring actions, which are primarily for severance costs:
(dollars in millions)UpLift ActionsOther ActionsTotal Restructuring Actions
Restructuring accruals as of December 31, 2023$13 $35 $48 
Net restructuring costs31 40 71 
Utilization, foreign exchange and other(31)(51)(82)
Restructuring accruals as of December 31, 202413 24 37 
Net restructuring costs76 54 130 
Utilization, foreign exchange and other(39)(54)(93)
Restructuring accrual as of December 31, 2025$50 $24 $74 
v3.25.4
Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivative instruments as of December 31:

(dollars in millions)Balance Sheet Classification20252024
Derivatives designated as Cash flow hedging instruments:
Asset Derivatives:
Foreign exchange contractsOther current assets$4 $
Foreign exchange contractsOther assets2 
Total asset derivatives$6 $
Liability Derivatives:
Foreign exchange contractsAccrued liabilities$(3)$(4)
Foreign exchange contractsOther long-term liabilities(2)(1)
Total liability derivatives$(5)$(5)
Derivatives not designated as Cash flow hedging instruments:
Asset Derivatives:
Foreign exchange contractsOther current assets$11 $53 
Commodity contractsOther current assets1 — 
Foreign exchange contractsOther assets2 
Total asset derivatives$14 $59 
Liability Derivatives:
Foreign exchange contractsAccrued liabilities$(25)$(39)
Foreign exchange contractsOther long-term liabilities(2)(6)
Total liability derivatives$(27)$(45)
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The effect of cash flow hedging relationships on Accumulated other comprehensive income (loss) as of December 31, 2025 and 2024 are presented in the table below:

(dollars in millions)20252024
Gain (loss) recorded in Accumulated other comprehensive income (loss)$1 $
Schedule of Derivative Instruments, Gain (Loss)
The following table summarizes the amounts of gains (losses) recognized in other comprehensive income (loss) related to non-derivative and derivative instruments designated as net investment hedges in 2025, 2024 and 2023:

(dollars in millions)202520242023
Foreign currency denominated long-term debt$1 $13 $13 
Foreign currency forward contracts(7)10 
Total$(6)$23 $17 
The net effect of derivatives not designated as Cash flow hedging instruments within Other income (expense) net, in the Consolidated Statements of Operations in 2025, 2024 and 2023 was as follows:
(dollars in millions)202520242023
Foreign exchange contracts$25 $$20 

The effects of derivatives not designated as Cash flow hedge instruments within Cost of products sold in the Consolidated Statements of Operations were as follows:

(dollars in millions)202520242023
Commodity and foreign exchange contracts$5 $(1)$(5)
v3.25.4
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurements, Recurring and Nonrecurring
In accordance with the provisions of ASC 820: Fair Value Measurements, the following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and non-recurring basis in our Consolidated Balance Sheets as of December 31, 2025 and 2024:

December 31, 2025
(dollars in millions)TotalLevel 1Level 2Level 3
Recurring fair value measurements:
Marketable securities$55 $55 $ $ 
Derivative assets20  20  
Derivative liabilities(32) (32) 
December 31, 2024
(dollars in millions)TotalLevel 1Level 2Level 3
Recurring fair value measurements:
Marketable securities$44 $44 $— $— 
Derivative assets68 — 68 — 
Derivative liabilities(50)— (50)— 
Schedule of Fair Value, by Balance Sheet Grouping
The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value in our Consolidated Balance Sheets as of December 31, 2025 and 2024:

 December 31, 2025December 31, 2024
(dollars in millions)Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Long-term receivables, net$49 $48 $47 $46 
Customer financing notes receivable, net16 14 21 19 
Short-term borrowings(214)(214)(51)(51)
Long-term debt, including current portion (excluding leases and other)(7,779)(7,269)(8,316)(7,600)
Long-term liabilities, including current portion(84)(81)(132)(123)
The following tables provide the valuation hierarchy classification of assets and liabilities that are not carried at fair value in the Consolidated Balance Sheets as of December 31, 2025 and 2024:

December 31, 2025
(dollars in millions)TotalLevel 1Level 2Level 3
Long-term receivables, net$48 $ $48 $ 
Customer financing notes receivable, net14  14  
Short-term borrowings(214) (214) 
Long-term debt, including current portion (excluding leases and other)(7,269) (7,269) 
Long-term liabilities, including current portion(81) (81) 
December 31, 2024
(dollars in millions)TotalLevel 1Level 2Level 3
Long-term receivables, net$46 $— $46 $— 
Customer financing notes receivable, net19 — 19 — 
Short-term borrowings(51)— (51)— 
Long-term debt, including current portion (excluding leases and other)(7,600)— (7,600)— 
Long-term liabilities, including current portion(123)— (123)— 
v3.25.4
Leases (Tables)
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Supplemental Operating Lease Cash Flow Information
Supplemental cash flow information related to operating leases for 2025, 2024 and 2023 was as follows:

(dollars in millions)202520242023
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash outflows from operating leases$(188)$(129)$(129)
Non-cash operating lease activity:
ROU assets obtained in exchange for operating lease liabilities323 150 93 
Schedule of Operating Lease ROU Assets and Liabilities
Operating lease ROU assets and liabilities are reflected on our Consolidated Balance Sheets as of December 31, 2025 and 2024 are as follows:

(dollars in millions)20252024
Operating lease ROU assets$554 $422 
Accrued liabilities$158 $120 
Operating lease liabilities397 298 
Total operating lease liabilities$555 $418 
Schedule of Supplemental Information Related to Operating Leases
Supplemental information related to operating leases as of December 31, 2025 and 2024 are as follows:
20252024
Weighted Average Remaining Lease Term (in years)3.94.1
Weighted Average Discount Rate4.2%4.0%
Schedule of Operating Lease Liabilities
Undiscounted maturities of operating lease liabilities, including options to extend lease terms that are reasonably certain of being exercised, as of December 31, 2025 are as follows:

(dollars in millions)Total
2026$178 
2027153 
2028116 
202973 
203038 
Thereafter47 
Total undiscounted lease payments605 
Less: imputed interest(50)
Total discounted lease payments$555 
v3.25.4
Contingent Liabilities (Tables)
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Indemnity Payable
The recoveries related to this matter are allocated between RTX and the Company pursuant to the terms of the TMA with our former parent, UTC, by way of indemnification payments. The Company has established an indemnity payable to RTX, which is intended to cover RTX’s tax and interest payable to the IRS. Interest on RTX’s liability to the IRS will continue to accrue until RTX's tax liability is paid. The Company and RTX disagree about both the scope of the indemnity payable to RTX and the Company’s liability for interest accruing on amounts already paid to RTX. The Company expects this dispute to be resolved pursuant to the dispute resolution procedures of the TMA.

(dollars in millions)20252024
Indemnity Payable (in Accrued liabilities)$56 $194 
v3.25.4
Segment Financial Data (Tables)
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Segment information for 2025 is as follows:

2025
(dollars in millions)New EquipmentServiceTotal
Net sales$4,989 $9,442 $14,431 
Costs and expenses:
Cost of sales4,157 5,860 10,017 
Selling, general and administrative485 1,184 1,669 
Other including research and development107 24 131 
Total segment operating profit$240 $2,374 2,614 
Corporate and Unallocated:
General corporate expenses and other180 
UpLift restructuring76 
Other restructuring54 
UpLift transformation costs69 
Separation-related adjustments70 
Litigation-related settlement costs21 
Held for sale impairment10 
Other, net1 
Total company operating profit2,133 
Non-service pension cost (benefit) 3 
Interest expense (income), net196 
Net income before income taxes$1,934 
Segment information for 2024 is as follows:

2024
(dollars in millions)New EquipmentServiceTotal
Net sales$5,367 $8,894 $14,261 
Costs and expenses:
Cost of sales4,443 5,533 9,976 
Selling, general and administrative490 1,144 1,634 
Other including research and development105 32 137 
Total segment operating profit$329 $2,185 2,514 
Corporate and Unallocated:
General corporate expenses and other158 
UpLift restructuring31 
Other restructuring40 
UpLift transformation costs65 
Separation-related adjustments177 
Litigation-related settlement costs18 
Held for sale impairment18 
Other, net(1)
Total company operating profit2,008 
Non-service pension cost (benefit) — 
Interest expense (income), net(31)
Net income before income taxes$2,039 

Segment information for 2023 is as follows:

2023
(dollars in millions)New EquipmentServiceTotal
Net sales$5,812 $8,397 $14,209 
Costs and expenses:
Cost of sales4,837 5,173 10,010 
Selling, general and administrative498 1,174 1,672 
Other including research and development96 36 132 
Total segment operating profit$381 $2,014 2,395 
Corporate and Unallocated:
General corporate expenses and other126 
UpLift restructuring25 
Other restructuring42 
UpLift transformation costs16 
Total company operating profit2,186 
Non-service pension cost (benefit)
Interest expense (income), net150 
Net income before income taxes$2,031 
Schedule of Segment Reporting Information, by Geographic Markets Geographic Net sales are attributed to the geographic regions based on their location of origin. Long-lived assets are Fixed assets, net attributed to the specific geographic regions. With the exception of the U.S. and China, there were no individually significant countries with Net sales exceeding 10% of the Company's consolidated Net sales during 2025, 2024 and 2023.
External Net SalesLong Lived Assets
(dollars in millions)202520242023202520242023
United States Operations$4,192 $4,239 $4,030 $323 $315 $325 
International Operations
China1,650 1,919 2,444 70 72 83 
Other8,589 8,103 7,735 350 314 319 
Total$14,431 $14,261 $14,209 $743 $701 $727 
Schedule of Segment Reporting Disclosure, Sales Type Net sales disaggregated by product and service type for 2025, 2024 and 2023 are as follows:
(dollars in millions)202520242023
New Equipment$4,989 $5,367 $5,812 
Maintenance and Repair7,584 7,211 6,870 
Modernization1,858 1,683 1,527 
Total Service9,442 8,894 8,397 
Total$14,431 $14,261 $14,209 
v3.25.4
Business Overview (Details)
$ in Millions
1 Months Ended 12 Months Ended
Oct. 31, 2025
USD ($)
Aug. 31, 2024
USD ($)
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Apr. 03, 2020
shares
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Number of segments | segment     2      
Income tax expense (benefit)     $ 479 $ 305 $ 533  
Interest income (expense), non operating     (196) 31 (150)  
Unrecognized tax benefits, interest on income taxes accrued     64 84 $ 148  
Cost to purchase shares $ 215     70    
Cash 80          
Short-term borrowings and current portion of long-term debt 135   215 51    
Accumulated deficit 188   (440) (978)    
Noncontrolling interest $ 27   46 63    
Otis China | Otis Electric            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Subsidiary, ownership percentage, parent 100.00%          
Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations | Otis | UTC            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Shares of separated company given to shareholders (in shares) | shares           0.5
German Tax Litigation            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Income tax expense (benefit)   $ 185        
Interest income (expense), non operating   $ 200        
Unrecognized tax benefits, interest on income taxes accrued       50    
Interest receivable     65 140    
Income taxes receivable     75 175    
Tax indemnification income (expense)     67 194    
Tax indemnification payments     205      
Taxes payable     $ 56 $ 194    
v3.25.4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash and Cash Equivalents [Abstract]      
Restricted cash $ 9 $ 21 $ 6
Accounts Receivable [Abstract]      
Trade receivables and unbilled receivables 3,700 3,400  
Contract receivable retainage 58 57  
Customer financing notes receivable 47 55  
Revenue Recognition [Abstract]      
Revenue, remaining performance obligation 19,100    
Self-Insurance [Abstract]      
Supplier finance programs obligations $ 831 714 $ 627
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] Accounts payable    
Invoices confirmed during the year $ 2,064 2,118  
Accrued liabilities and other liabilities $ 240 238  
Supplier Finance Program, New Programs, Payment Term of 240 Days      
Self-Insurance [Abstract]      
Supplier finance programs, payment timing 240 days    
Supplier finance programs obligations $ 80 $ 67  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01      
Revenue Recognition [Abstract]      
Remaining performance obligation, percentage 75.00%    
Remaining performance obligation, expected timing of satisfaction period 24 months    
Minimum      
Self-Insurance [Abstract]      
Supplier finance programs, payment timing 30 days    
Maximum      
Self-Insurance [Abstract]      
Supplier finance programs, payment timing 240 days    
Internal-use software | Minimum      
Finite-Lived Intangible Assets, Net [Abstract]      
Estimated Useful Lives 3 years    
Internal-use software | Maximum      
Finite-Lived Intangible Assets, Net [Abstract]      
Estimated Useful Lives 5 years    
v3.25.4
Summary of Significant Accounting Policies - Schedule of Allowance for Credit Losses (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 125 $ 130 $ 152
Provision for expected credit losses 33 34 29
Write-offs charged against the allowance for expected credit losses (39) (32) (48)
Foreign exchange and other 6 (7) (3)
Ending balance $ 125 $ 125 $ 130
v3.25.4
Summary of Significant Accounting Policies - Estimated Useful Lives (Details)
Dec. 31, 2025
Purchased service portfolios | Minimum  
Summary of Significant Accounting Policies [Line Items]  
Estimated Useful Lives 5 years
Purchased service portfolios | Maximum  
Summary of Significant Accounting Policies [Line Items]  
Estimated Useful Lives 25 years
Patents, trademarks/trade names | Minimum  
Summary of Significant Accounting Policies [Line Items]  
Estimated Useful Lives 4 years
Patents, trademarks/trade names | Maximum  
Summary of Significant Accounting Policies [Line Items]  
Estimated Useful Lives 40 years
Customer relationships and other | Minimum  
Summary of Significant Accounting Policies [Line Items]  
Estimated Useful Lives 1 year
Customer relationships and other | Maximum  
Summary of Significant Accounting Policies [Line Items]  
Estimated Useful Lives 20 years
v3.25.4
Summary of Significant Accounting Policies - Schedule of Supplier Finance Programs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Supplier Finance Program, Obligation [Roll Forward]    
Confirmed obligations outstanding, beginning balance $ 714 $ 627
Invoices confirmed during the year 2,064 2,118
Confirmed invoices paid during the year (1,970) (2,013)
Foreign currency exchange impact 23 (18)
Confirmed obligations outstanding, ending balance $ 831 $ 714
v3.25.4
Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net income attributable to common shareowners:      
Net income attributable to common shareholders $ 1,384 $ 1,645 $ 1,406
Basic weighted average number of shares outstanding (in shares) 392.8 401.7 411.4
Stock awards and equity units (share equivalent) (in shares) 2.1 2.7 3.2
Diluted weighted average number of shares outstanding (in shares) 394.9 404.4 414.6
Earnings Per Share of Common Stock:      
Basic (in usd per share) $ 3.52 $ 4.10 $ 3.42
Diluted (in usd per share) $ 3.50 $ 4.07 $ 3.39
Antidilutive securities excluded from computation of EPS (in shares) 0.4 0.7 1.0
v3.25.4
Contract Assets and Liabilities - Contract With Customer, Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Contract assets, current $ 699 $ 706
Total contract assets 699 706
Contract liabilities, current (2,611) (2,598)
Contract liabilities, noncurrent (included within Other long-term liabilities) (29) (38)
Total contract liabilities (2,640) (2,636)
Net contract liabilities $ (1,941) $ (1,930)
v3.25.4
Contract Assets and Liabilities - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]      
Decrease in contract assets $ 7    
Increase in contract liabilities 4    
Foreign exchange impact on contract assets 33    
Foreign exchange impact on contract liabilities 120    
Revenue recognized $ 2,000 $ 2,000 $ 2,000
v3.25.4
Inventories (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Raw materials and work-in-process $ 139 $ 134
Finished goods 474 423
Total 613 557
Inventory valuation reserves $ 84 $ 82
v3.25.4
Fixed Assets (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Fixed assets, gross $ 2,004 $ 1,893  
Less: Accumulated depreciation (1,261) (1,192)  
Fixed assets 743 701 $ 727
Depreciation expense 113 120 $ 126
Land      
Property, Plant and Equipment [Line Items]      
Fixed assets, gross 39 38  
Buildings and improvements      
Property, Plant and Equipment [Line Items]      
Fixed assets, gross $ 498 516  
Buildings and improvements | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives 20 years    
Buildings and improvements | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives 40 years    
Machinery and equipment      
Property, Plant and Equipment [Line Items]      
Fixed assets, gross $ 1,311 1,234  
Machinery and equipment | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives 3 years    
Machinery and equipment | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives 12 years    
Assets under construction      
Property, Plant and Equipment [Line Items]      
Fixed assets, gross $ 156 $ 105  
v3.25.4
Business Acquisitions, Dispositions, Goodwill and Intangible Assets - Narrative (Details) - USD ($)
12 Months Ended 24 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2025
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Investments in businesses, net of cash acquired $ 109,000,000 $ 87,000,000 $ 36,000,000  
Amortization of intangible assets 62,000,000 62,000,000 $ 67,000,000  
Assets held for sale, intangible   16,000,000    
Assets held for sale 5,000,000 38,000,000   $ 5,000,000
Liabilities held-for-sale, not part of disposal group 0 9,000,000   0
Non-US        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Pre-tax loss on sale $ 10,000,000 $ 18,000,000   $ 28,000,000
v3.25.4
Business Acquisitions, Dispositions, Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Goodwill [Roll Forward]    
Goodwill - Beginning Balance $ 1,548 $ 1,588
Goodwill Resulting From Business Combinations 65 46
Foreign Currency Translation  and Other 82 (86)
Goodwill - Ending Balance 1,695 1,548
New Equipment    
Goodwill [Roll Forward]    
Goodwill - Beginning Balance 277 295
Goodwill Resulting From Business Combinations 0 0
Foreign Currency Translation  and Other 17 (18)
Goodwill - Ending Balance 294 277
Service    
Goodwill [Roll Forward]    
Goodwill - Beginning Balance 1,271 1,293
Goodwill Resulting From Business Combinations 65 46
Foreign Currency Translation  and Other 65 (68)
Goodwill - Ending Balance $ 1,401 $ 1,271
v3.25.4
Business Acquisitions, Dispositions, Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Gross Amount $ 2,213 $ 2,000
Accumulated Amortization (1,877) (1,695)
Trademarks and other 7 6
Intangible assets 2,220 2,006
Purchased service portfolios    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount 2,133 1,930
Accumulated Amortization (1,818) (1,640)
Patents, trademarks/trade names    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount 19 18
Accumulated Amortization (16) (16)
Customer relationships and other    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount 61 52
Accumulated Amortization $ (43) $ (39)
v3.25.4
Business Acquisitions, Dispositions, Goodwill and Intangible Assets - Schedule of Future Amortization of Intangible Assets (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
2026 $ 46
2027 40
2028 35
2029 32
2030 $ 29
v3.25.4
Borrowings and Lines of Credit - Short-Term Borrowings (Details) - USD ($)
Dec. 31, 2025
Oct. 31, 2025
Dec. 31, 2024
Debt Disclosure [Abstract]      
Commercial paper $ 0   $ 0
Other borrowings 215,000,000   51,000,000
Total short-term borrowings $ 215,000,000 $ 135,000,000 $ 51,000,000
v3.25.4
Borrowings and Lines of Credit - Narrative (Details)
€ in Millions
12 Months Ended
Sep. 04, 2025
USD ($)
Aug. 08, 2025
Nov. 19, 2024
USD ($)
Aug. 16, 2023
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2025
EUR (€)
Dec. 31, 2024
USD ($)
Nov. 19, 2024
EUR (€)
Aug. 16, 2023
EUR (€)
Line of Credit Facility [Line Items]                  
Commercial paper         $ 0   $ 0    
Debt instrument, carrying amount         7,779,000,000        
Unamortized debt issuance cost         $ 41,000,000   45,000,000    
Long term debt, average remaining maturity (in years)         6 years 8 months 12 days        
Unsubordinated Commercial Paper | Unsecured Notes                  
Line of Credit Facility [Line Items]                  
Debt instrument, face amount         $ 1,500,000,000        
Five Year Revolving Credit Facility Amended | Unsecured Notes                  
Line of Credit Facility [Line Items]                  
Line of credit facility, maximum borrowing capacity         1,500,000,000        
Debt instrument, term   5 years              
Debt instrument, carrying amount         0        
Notes 5.250% due 2028                  
Line of Credit Facility [Line Items]                  
Debt instrument, carrying amount         $ 750,000,000   750,000,000    
Debt instrument, interest rate, stated percentage         5.25% 5.25%      
Notes 5.250% due 2028 | Unsecured Notes                  
Line of Credit Facility [Line Items]                  
Debt instrument, face amount       $ 750,000,000          
Debt instrument, term       5 years          
Debt instrument, interest rate, stated percentage       5.25%         5.25%
0.000% Notes due 2023                  
Line of Credit Facility [Line Items]                  
Debt instrument, interest rate, stated percentage       0.00%         0.00%
0.000% Notes due 2023 | Unsecured Notes                  
Line of Credit Facility [Line Items]                  
Debt instrument, face amount | €                 € 500
Notes 5.125% due 2031                  
Line of Credit Facility [Line Items]                  
Debt instrument, carrying amount         $ 600,000,000   600,000,000    
Debt instrument, interest rate, stated percentage         5.125% 5.125%      
Notes 5.125% due 2031 | Unsecured Notes                  
Line of Credit Facility [Line Items]                  
Debt instrument, face amount     $ 600,000,000            
Debt instrument, term     7 years            
Debt instrument, interest rate, stated percentage     5.125%         5.125%  
2.875% Notes due 2027                  
Line of Credit Facility [Line Items]                  
Debt instrument, carrying amount         $ 999,000,000   885,000,000    
Debt instrument, interest rate, stated percentage         2.875% 2.875%      
2.875% Notes due 2027 | Unsecured Notes                  
Line of Credit Facility [Line Items]                  
Debt instrument, face amount     $ 899,000,000     € 850   € 850  
Debt instrument, term     3 years            
Debt instrument, interest rate, stated percentage     2.875%         2.875%  
Notes 2.056% due 2025                  
Line of Credit Facility [Line Items]                  
Debt instrument, carrying amount         $ 0   1,300,000,000    
Debt instrument, interest rate, stated percentage     2.056%   2.056% 2.056%   2.056%  
Notes 2.056% due 2025 | Unsecured Notes                  
Line of Credit Facility [Line Items]                  
Debt instrument, face amount     $ 1,300,000,000            
Notes 5.131% Due 2035                  
Line of Credit Facility [Line Items]                  
Debt instrument, carrying amount         $ 500,000,000   $ 0    
Debt instrument, interest rate, stated percentage         5.131% 5.131%      
Notes 5.131% Due 2035 | Unsecured Notes                  
Line of Credit Facility [Line Items]                  
Debt instrument, face amount $ 500,000,000                
Debt instrument, term 10 years                
Debt instrument, interest rate, stated percentage 5.131%                
0.370% Notes Due March 18, 2026                  
Line of Credit Facility [Line Items]                  
Debt instrument, interest rate, stated percentage 0.37%                
Revolving Credit Facility | Five Year Revolving Credit Facility Amended | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate                  
Line of Credit Facility [Line Items]                  
Debt instrument, basis spread on variable rate   1.00%              
Revolving Credit Facility | Five Year Revolving Credit Facility Amended | Base Rate                  
Line of Credit Facility [Line Items]                  
Debt instrument, basis spread on variable rate   0.00%              
v3.25.4
Borrowings and Lines of Credit - Long-Term Debt (Details)
€ in Millions, $ in Millions, ¥ in Billions
Dec. 31, 2025
USD ($)
Dec. 31, 2025
EUR (€)
Dec. 31, 2025
JPY (¥)
Sep. 04, 2025
USD ($)
Dec. 31, 2024
USD ($)
Nov. 19, 2024
USD ($)
Nov. 19, 2024
EUR (€)
Aug. 16, 2023
USD ($)
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 7,779              
Long-term debt 7,785       $ 8,322      
Other (discounts and debt issuance costs) (44)       (49)      
Total long-term debt 7,741       8,273      
Less: current portion 841       1,300      
Long-term debt, net of current portion 6,900       6,973      
Notes 2.056% due 2025                
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 0       1,300      
Debt instrument, interest rate, stated percentage 2.056% 2.056% 2.056%     2.056% 2.056%  
Notes 2.056% due 2025 | Unsecured Notes                
Debt Instrument [Line Items]                
Debt instrument, face amount           $ 1,300    
Notes 0.370% due 2026                
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 137       137      
Debt instrument, interest rate, stated percentage 0.37% 0.37% 0.37%          
Notes 0.370% due 2026 | Unsecured Notes                
Debt Instrument [Line Items]                
Debt instrument, face amount | ¥     ¥ 21.5          
0.318% Notes due 2026                
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 705       624      
Debt instrument, interest rate, stated percentage 0.318% 0.318% 0.318%          
0.318% Notes due 2026 | Unsecured Notes                
Debt Instrument [Line Items]                
Debt instrument, face amount | €   € 600            
Notes 2.293% due 2027                
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 500       500      
Debt instrument, interest rate, stated percentage 2.293% 2.293% 2.293%          
2.875% Notes due 2027                
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 999       885      
Debt instrument, interest rate, stated percentage 2.875% 2.875% 2.875%          
2.875% Notes due 2027 | Unsecured Notes                
Debt Instrument [Line Items]                
Debt instrument, interest rate, stated percentage           2.875% 2.875%  
Debt instrument, face amount   € 850       $ 899 € 850  
Notes 5.250% due 2028                
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 750       750      
Debt instrument, interest rate, stated percentage 5.25% 5.25% 5.25%          
Notes 5.250% due 2028 | Unsecured Notes                
Debt Instrument [Line Items]                
Debt instrument, interest rate, stated percentage               5.25%
Debt instrument, face amount               $ 750
Notes 2.565% due 2030                
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 1,500       1,500      
Debt instrument, interest rate, stated percentage 2.565% 2.565% 2.565%          
Notes 5.125% due 2031                
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 600       600      
Debt instrument, interest rate, stated percentage 5.125% 5.125% 5.125%          
Notes 5.125% due 2031 | Unsecured Notes                
Debt Instrument [Line Items]                
Debt instrument, interest rate, stated percentage           5.125% 5.125%  
Debt instrument, face amount           $ 600    
0.934% Notes due 2031                
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 588       520      
Debt instrument, interest rate, stated percentage 0.934% 0.934% 0.934%          
0.934% Notes due 2031 | Unsecured Notes                
Debt Instrument [Line Items]                
Debt instrument, face amount | €   € 500            
Notes 5.131% Due 2035                
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 500       0      
Debt instrument, interest rate, stated percentage 5.131% 5.131% 5.131%          
Notes 5.131% Due 2035 | Unsecured Notes                
Debt Instrument [Line Items]                
Debt instrument, interest rate, stated percentage       5.131%        
Debt instrument, face amount       $ 500        
Notes 3.112% due 2040                
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 750       750      
Debt instrument, interest rate, stated percentage 3.112% 3.112% 3.112%          
Notes 3.362% due 2050                
Debt Instrument [Line Items]                
Debt instrument, carrying amount $ 750       750      
Debt instrument, interest rate, stated percentage 3.362% 3.362% 3.362%          
Other Including Finance Leases                
Debt Instrument [Line Items]                
Long-term debt $ 6       $ 6      
v3.25.4
Borrowings and Lines of Credit - Schedule of Debt Issuance Expenses (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Disclosure [Abstract]      
Debt issuance costs amortization $ 10 $ 8 $ 7
Total interest expense on debt $ 217 $ 183 $ 155
v3.25.4
Borrowings and Lines of Credit - Schedule of Average Interest Expense Rate (Details)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Disclosure [Abstract]      
Short-term borrowings, at point in time 0.00% 0.00%  
Long-term borrowings, at point in time 3.00% 2.70%  
Short-term borrowings, over time 3.80% 5.40% 5.10%
Long-term borrowings, over time 2.80% 2.50% 2.10%
v3.25.4
Borrowings and Lines of Credit - Schedule of Maturities and Repayments of Principal on Long-term Debt (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Debt Disclosure [Abstract]  
2026 $ 842
2027 1,499
2028 750
2029 0
2030 1,500
Thereafter 3,188
Total $ 7,779
v3.25.4
Accrued Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Payables and Accruals [Abstract]    
Accrued salaries, wages and employee benefits $ 605 $ 579
Operating lease liabilities 158 120
Accrued interest 129 147
Contractual indemnity obligations 113 244
VAT and other non-income tax payables 109 123
Accrued income taxes payable 75 75
Other liabilities 658 633
Accrued liabilities $ 1,847 $ 1,921
v3.25.4
Accrued Liabilities - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Payables and Accruals [Line Items]    
Accrued interest $ 129 $ 147
Contractual indemnity obligations 113 244
German Tax Litigation    
Payables and Accruals [Line Items]    
Contractual indemnity obligations 56 194
German Tax Litigation | Foreign Tax Jurisdiction    
Payables and Accruals [Line Items]    
Accrued interest $ 67 $ 64
v3.25.4
Other Long-Term Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Other Liabilities Disclosure [Abstract]    
General, product and auto liability $ 136 $ 137
Employee benefits 98 92
Contractual indemnity obligations 23 80
Other liabilities 72 74
Other long-term liabilities $ 329 $ 383
v3.25.4
Employee Benefit Plans - Employee Savings Plans (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Defined contribution plan, employer contribution amount $ 74 $ 71 $ 65
v3.25.4
Employee Benefit Plans - Schedule of Obligation and Funded Status (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Change in benefit obligation:      
Beginning balance $ 949 $ 957  
Service cost 34 32  
Interest cost 32 32  
Actuarial (gain) loss (47) 25  
Benefits paid (33) (46)  
Net settlement, curtailment and special termination benefits (32) (9)  
Other 94 (42)  
Ending balance 997 949 $ 957
Change in plan assets:      
Beginning balance 637 609  
Actual return on plan assets 48 57  
Employer contributions 42 51 48
Benefits paid (33) (46)  
Settlements (32) (9)  
Other 51 (25)  
Ending balance 713 637 609
Funded status:      
Fair value of plan assets 713 637 609
Benefit obligations (997) (949) (957)
Funded status of plan (284) (312)  
Amounts recognized in the Consolidated Balance Sheets consist of:      
Noncurrent liability (419) (434)  
Net amount recognized (284) (312)  
Amounts recognized in Accumulated other comprehensive loss consist of:      
Net actuarial loss 38 98  
Prior service cost 5 1  
Net amount recognized 43 99  
Pension Plan      
Change in benefit obligation:      
Service cost 34 32 29
Interest cost 32 32 $ 33
Amounts recognized in the Consolidated Balance Sheets consist of:      
Noncurrent assets 130 115  
Current liability (30) (28)  
Noncurrent liability $ (384) $ (399)  
v3.25.4
Employee Benefit Plans - Pension Plans Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]      
Employer contributions $ 42 $ 51 $ 48
Accumulated benefit obligation 900 800  
Expected future employer contributions, next fiscal year 45    
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]      
Benefit obligations 997 949 957
Other comprehensive losses recognized from changes in benefit obligations (less than) $ 41 $ 2 $ (70)
Defined benefit plan, assumption, discount rate 3.60% 3.30%  
Net cost, assumption, discount rate 3.30% 3.40% 3.80%
Pension Plan      
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]      
2026 $ 79    
2027 74    
2028 75    
2029 76    
2030 80    
2031 through 2035 391    
Net periodic benefit cost (less than) 36 $ 32 $ 34
Postretirement Benefits Plan      
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]      
2026 1    
2027 1    
2028 1    
2029 1    
2030 1    
2031 through 2035 3    
Benefit obligations 7 6  
Net periodic benefit cost (less than) 1 1 $ 1
Other comprehensive losses recognized from changes in benefit obligations (less than) $ 1 $ 1  
Defined benefit plan, assumption, discount rate 6.80% 6.80%  
Net cost, assumption, discount rate 6.80% 7.20% 7.00%
v3.25.4
Employee Benefit Plans - Schedule of Accumulated Benefit Obligation or Projected Benefit Obligations in Excess of Plan Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Pension plans with accumulated benefit obligations in excess of plan assets:    
Projected benefit obligation $ 411 $ 397
Accumulated benefit obligation 367 353
Fair value of plan assets 3 3
Pension plans with projected benefit obligations in excess of plan assets:    
Projected benefit obligation 533 707
Accumulated benefit obligation 455 609
Fair value of plan assets $ 119 $ 280
v3.25.4
Employee Benefit Plans - Schedule of Net Periodic Costs and Other Changes Recognized in OCI (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]      
Service cost $ 34 $ 32  
Interest cost 32 32  
Expected return on plan assets 0 0  
Current year actuarial (gain) loss (63) 2 $ 90
Prior service cost arising during period 5 0 0
Amortization of actuarial gain (loss) (3) 0 1
Other 5 (6) 1
Total recognized in other comprehensive (income) loss (56) (4) 92
Pension Plan      
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]      
Service cost 34 32 29
Interest cost 32 32 33
Expected return on plan assets (35) (34) (31)
Recognized actuarial net loss 3 1 (1)
Net settlement, curtailment and special termination benefits loss (gain) 2 1 4
Net periodic pension cost – employer 36 32 34
Current year actuarial (gain) loss (60) 2 93
Prior service cost arising during period 5 0 0
Amortization of actuarial gain (loss) (3) 0 1
Net settlement and curtailment (loss) gain (3) (1) (4)
Other 5 (6) 1
Total recognized in other comprehensive (income) loss (56) (5) 91
Net recognized in net periodic pension cost and other comprehensive (income) loss $ (20) $ 27 $ 125
v3.25.4
Employee Benefit Plans - Schedule of Assumptions Used in Calculating Defined Benefit Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Benefit Obligation      
Discount rate 3.60% 3.30%  
Salary scale 3.00% 3.10%  
Expected return on plan assets $ 0 $ 0  
Interest crediting rate 2.00% 1.80%  
Net Cost      
Discount rate 3.30% 3.40% 3.80%
Salary scale 3.10% 3.20% 3.10%
Expected return on plan assets 5.30% 5.30% 5.10%
Interest crediting rate 1.80% 1.70% 2.10%
v3.25.4
Employee Benefit Plans - Schedule of Plan Assets by Category (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets $ 713 $ 637 $ 609
Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 715 636  
Trust Receivables And Payables      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets (2) 1  
Quoted Prices in Active Markets for Identical Assets (Level 1) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 210 174  
Significant Observable Inputs (Level 2) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 251 144  
Significant Unobservable Inputs (Level 3) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Not Subject to Leveling | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 254 318  
Global Equity Commingled Funds | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 89 75  
Global Equity Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 86 72  
Global Equity Commingled Funds | Significant Observable Inputs (Level 2) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 3 3  
Global Equity Commingled Funds | Significant Unobservable Inputs (Level 3) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Global Equity Commingled Funds | Not Subject to Leveling | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Global Equity Funds | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 154 143  
Global Equity Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Global Equity Funds | Significant Observable Inputs (Level 2) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Global Equity Funds | Significant Unobservable Inputs (Level 3) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Global Equity Funds | Not Subject to Leveling | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 154 143  
Governments | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 63 16  
Governments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 22 14  
Governments | Significant Observable Inputs (Level 2) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 41 2  
Governments | Significant Unobservable Inputs (Level 3) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Governments | Not Subject to Leveling | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Corporate Bonds | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 95 44  
Corporate Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 50 44  
Corporate Bonds | Significant Observable Inputs (Level 2) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 45 0  
Corporate Bonds | Significant Unobservable Inputs (Level 3) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Corporate Bonds | Not Subject to Leveling | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Fixed Income Securities | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 60 140  
Fixed Income Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Fixed Income Securities | Significant Observable Inputs (Level 2) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Fixed Income Securities | Significant Unobservable Inputs (Level 3) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Fixed Income Securities | Not Subject to Leveling | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 60 140  
Real estate | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 41 38  
Real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 14 12  
Real estate | Significant Observable Inputs (Level 2) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 20 17  
Real estate | Significant Unobservable Inputs (Level 3) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Real estate | Not Subject to Leveling | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 7 9  
Other | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 173 150  
Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 7 5  
Other | Significant Observable Inputs (Level 2) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 140 122  
Other | Significant Unobservable Inputs (Level 3) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Other | Not Subject to Leveling | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 26 23  
Cash and cash equivalents | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 40 30  
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 31 27  
Cash and cash equivalents | Significant Observable Inputs (Level 2) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 2 0  
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets 0 0  
Cash and cash equivalents | Not Subject to Leveling | Plan Assets At Fair Value      
Defined Benefit Plan, Plan Assets, Category [Line Items]      
Fair value of plan assets $ 7 $ 3  
v3.25.4
Employee Benefit Plans - Schedule of Multi-employer Contributions (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]      
Contributions   $ 20 $ 20
Pension Plan      
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]      
Other funds $ 9 9 9
Contributions 142 143 137
Pension Plan | National Elevator Industry Pension Plan      
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]      
National Elevator Industry Pension Plan $ 133 $ 134 $ 128
v3.25.4
Employee Benefit Plans - Multiemployer Benefit Plans Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Multiemployer Plans [Line Items]      
Contributions   $ 20 $ 20
Postretirement Benefits Plan      
Multiemployer Plans [Line Items]      
Contributions $ 20    
v3.25.4
Employee Benefit Plans - Share-based Compensation Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Apr. 03, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common stock authorized under share based payment award plans (in shares)       45,000,000
Common stock shares available for awards (in shares) 18,000,000      
Proceeds from stock options exercised $ 3 $ 4 $ 6  
Tax benefit associated with share based compensation payments 7 $ 7 $ 7  
Unrecognized compensation cost $ 83      
Unrecognized compensation cost, period for recognition 1 year 8 months 12 days      
Weighted average grant date fair value of options granted during period (in usd per share)   $ 24.34 $ 24.67  
Weighted average grant date fair value of stock appreciation rights granted during period (in usd per share) $ 96.07 $ 89.54 $ 84.88  
Aggregate intrinsic value of stock options and stock appreciation rights exercisable $ 65      
Aggregate intrinsic value of performance shares and restricted stock $ 169      
Restricted awards        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period 3 years      
Weighted average grant date fair value of stock appreciation rights granted during period (in usd per share) $ 94.07      
Options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Tax benefit associated with share based compensation payments $ 7 $ 11 $ 6  
Stock Appreciation Rights        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation arrangement by share-based payment award, options, grants in period, net of forfeitures (in shares) 0      
Weighted average grant date fair value of stock appreciation rights granted during period (in usd per share) $ 0      
Aggregate intrinsic value of stock options and stock appreciation rights exercisable $ 44 78 65  
Performance Share Units        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period 3 years      
Tax benefit realized from vesting of performance shares and other restricted awards $ 5 10 9  
Weighted average grant date fair value of stock appreciation rights granted during period (in usd per share) $ 98.33      
Aggregate intrinsic value of performance shares and restricted stock $ 56 $ 95 $ 75  
Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period 10 years      
Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period 3 years      
v3.25.4
Employee Benefit Plans - Schedule of Share-based Compensation and Related Income Tax Benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]      
Stock-based compensation expense $ 80 $ 73 $ 64
Less: future tax benefit (7) (7) (7)
Stock-based compensation expense, net of tax 73 66 57
Share-based Compensation Expense      
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]      
Stock-based compensation expense 80 73 64
Liability Awards Payment Arrangement      
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]      
Stock-based compensation expense $ 0 $ 0 $ 0
v3.25.4
Employee Benefit Plans - Schedule of Share Based Compensation Award Activity (Details) - $ / shares
shares in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Non-Option Equity Instruments, Average Price      
Granted (in usd per share) $ 96.07 $ 89.54 $ 84.88
Stock Options      
Outstanding (in shares) 124    
Granted (in shares) 0    
Exercised / Earned (in shares) (54)    
Cancelled (in shares) 0    
Outstanding (in shares) 70 124  
Stock Options, Average Price      
Stock options outstanding, average price (in usd per share) $ 68.21    
Granted (in usd per share) 0    
Exercised / Earned (in usd per share) 61.41    
Cancelled (in usd per share) 0    
Outstanding (in usd per share) $ 73.38 $ 68.21  
Stock Appreciation Rights      
Non-Option Equity Instruments, (Shares)      
Outstanding (in shares) 5,946    
Granted (in shares) 0    
Exercised / Earned (in shares) (1,189)    
Cancelled (in shares) (75)    
Outstanding (in shares) 4,682 5,946  
Non-Option Equity Instruments, Average Price      
Outstanding (in usd per share) $ 71.58    
Granted (in usd per share) 0    
Exercised / Earned (in usd per share) 60.91    
Cancelled (in usd per share) 86.10    
Outstanding (in usd per share) $ 74.06 $ 71.58  
Restricted Share Units      
Non-Option Equity Instruments, (Shares)      
Outstanding (in shares) 943    
Granted (in shares) 503    
Exercised / Earned (in shares) (412)    
Cancelled (in shares) (97)    
Outstanding (in shares) 937 943  
Non-Option Equity Instruments, Average Price      
Outstanding (in usd per share) $ 88.01    
Granted (in usd per share) 94.07    
Exercised / Earned (in usd per share) 85.09    
Cancelled (in usd per share) 90.41    
Outstanding (in usd per share) $ 92.16 $ 88.01  
Performance Share Units      
Non-Option Equity Instruments, (Shares)      
Outstanding (in shares) 953    
Granted (in shares) 411    
Exercised / Earned (in shares) (179)    
Cancelled (in shares) (129)    
Outstanding (in shares) 1,056 953  
Non-Option Equity Instruments, Average Price      
Outstanding (in usd per share) $ 92.08    
Granted (in usd per share) 98.33    
Exercised / Earned (in usd per share) 86.71    
Cancelled (in usd per share) 92.82    
Outstanding (in usd per share) $ 95.34 $ 92.08  
v3.25.4
Employee Benefit Plans - Schedule of Stock Options, Appreciation Rights, Performance Units, and Restricted Stock Aggregate Intrinsic Values (Details)
$ / shares in Units, shares in Thousands, $ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract]  
Awards (in shares) | shares 4,746
Average price (in usd per share) | $ / shares $ 74.03
Aggregate intrinsic value | $ $ 66
Remaining term 4 years 6 months
Awards (in shares) | shares 4,249
Average price (in usd per share) | $ / shares $ 72.22
Aggregate intrinsic value | $ $ 65
Remaining term 4 years 1 month 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]  
Awards (in shares) | shares 1,929
Average price (in usd per share) | $ / shares $ 0
Aggregate intrinsic value | $ $ 169
Remaining term 1 year 1 month 6 days
v3.25.4
Employee Benefit Plans - Stock Option Valuation Assumptions (Details)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]    
Weighted-average volatility 26.80% 27.90%
Expected term (in years) 5 years 3 months 18 days 6 years 2 months 12 days
Expected dividend yield 1.60% 1.50%
Minimum    
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]    
Expected volatility 26.10% 27.80%
Risk-free rate 3.60% 3.40%
Maximum    
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]    
Expected volatility 26.80% 28.10%
Risk-free rate 3.70% 4.70%
v3.25.4
Stock (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Equity [Abstract]      
Preferred stock, shares authorized (in shares) 125,000,000 125,000,000  
Preferred stock, par value (in usd per share) $ 0.01 $ 0.01  
Preferred stock, shares outstanding (in shares) 0 0  
Preferred stock, shares issued (in shares) 0 0  
Common stock, shares authorized (in shares) 2,000,000,000    
Common stock, par value (in usd per share) $ 0.01    
Common stock, shares issued (in shares) 439,400,000 438,600,000  
Treasury stock (in shares) 49,600,000 41,000,000  
Stock repurchase program, authorized amount $ 2,000    
Stock repurchase program, remaining amount available to repurchase $ 1,300    
Stock repurchased during period (in shares) 8,600,000 10,600,000 9,600,000
Repurchase of common shares $ 800 $ 1,000 $ 800
Excise tax 1.00% 1.00%  
v3.25.4
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance $ (4,785) $ (4,855) $ (4,799)
Ending balance (5,346) (4,785) (4,855)
Foreign Currency Translation      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (672) (673) (587)
Other comprehensive income (loss) before reclassifications, net (381) 1 (87)
Amounts reclassified, pre-tax 0 0 1
Tax expense (benefit) reclassified 0 0 0
Ending balance (1,053) (672) (673)
Defined Benefit Pension and Postretirement Plans      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (76) (78) (8)
Other comprehensive income (loss) before reclassifications, net 39 2 (69)
Amounts reclassified, pre-tax 3 0 (1)
Tax expense (benefit) reclassified (1) 0 0
Ending balance (35) (76) (78)
Unrealized Hedging Gains (Losses)      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance 3 1 3
Other comprehensive income (loss) before reclassifications, net (4) 2 6
Amounts reclassified, pre-tax 2 0 (8)
Tax expense (benefit) reclassified 0 0 0
Ending balance 1 3 1
Accumulated Other Comprehensive Income (Loss)      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (745) (750) (592)
Other comprehensive income (loss) before reclassifications, net (346) 5 (150)
Amounts reclassified, pre-tax 5 0 (8)
Tax expense (benefit) reclassified (1) 0 0
Ending balance $ (1,087) $ (745) $ (750)
v3.25.4
Income Taxes - Schedule of Income Before Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
United States $ 631 $ 505 $ 565
Foreign 1,303 1,534 1,466
Net income before income taxes $ 1,934 $ 2,039 $ 2,031
v3.25.4
Income Taxes - Narrative (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Income Tax Disclosure [Abstract]  
Unrecognized tax benefits that would impact effective tax rate $ 152
v3.25.4
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
United States:      
Federal $ 128 $ 74 $ 82
State 56 45 50
Foreign 399 217 462
Current income tax expense (benefit) 583 336 594
United States:      
Federal (59) (11) (24)
State (16) (1) (5)
Foreign (29) (19) (32)
Future income tax expense (benefit) (104) (31) (61)
Income tax expense 479 305 533
Attributable to items (charged) credited to (deficit) equity $ (15) $ (6) $ 16
v3.25.4
Income Taxes - Schedule of Reconciliation of Effective Income Tax Rate (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S. Federal Statutory Tax Rate $ 406 $ 428 $ 427
State and Local Income Taxes, Net of Federal Income Tax Effect 31 35 36
Foreign-derived intangible income (49) (35) (23)
Foreign withholding tax reclassification (49) (43) (31)
Other 13 8 10
Other (2) (1) (2)
Net Indemnity Payable/(Receivable) to/(from) former parent 15 37 0
Other 11 6 7
Changes in Unrecognized Tax Benefits 2 0 (4)
Income tax expense $ 479 $ 305 $ 533
Percent      
U.S. Federal Statutory Tax Rate 21.00% 21.00% 21.00%
State and Local Income Taxes, Net of Federal Income Tax Effect 1.60% 1.70% 1.80%
Foreign-derived intangible income (2.50%) (1.70%) (1.10%)
Foreign withholding tax reclassification (2.50%) (2.10%) (1.50%)
Other 0.70% 0.40% 0.50%
Other (0.10%) (0.10%) (0.10%)
Net Indemnity Payable/(Receivable) to/(from) former parent 0.80% 1.80% 0.00%
Other 0.60% 0.30% 0.30%
Changes in Unrecognized Tax Benefits 0.10% 0.00% (0.20%)
Effective Income Tax Rate Reconciliation, Percent, Total 24.80% 15.00% 26.20%
France      
Amount      
Distributable reserve deferred adjustment $ 0 $ (37) $ 0
Other $ 13 $ 14 $ 10
Percent      
Distributable reserve deferred adjustment 0.00% (1.80%) 0.00%
Other 0.70% 0.70% 0.50%
Germany      
Amount      
Statutory tax rate difference $ 8 $ 25 $ 7
Tax litigation settlement 1 (247) 0
Other $ (1) $ 0 $ 2
Percent      
Statutory tax rate difference 0.40% 1.20% 0.40%
Tax litigation settlement 0.10% (12.10%) 0.00%
Other 0.00% 0.00% 0.10%
Ireland      
Amount      
Nontaxable interest income $ (25) $ (29) $ (23)
Other $ 0 $ 3 $ 8
Percent      
Other 0.00% 0.20% 0.40%
Nontaxable interest income (1.30%) (1.40%) (1.10%)
Luxembourg      
Amount      
Nontaxable interest income $ 49 $ 53 $ 47
Other $ 0 $ (4) $ (5)
Percent      
Other 0.00% (0.20%) (0.20%)
Nontaxable interest income 2.40% 2.60% 2.30%
Other foreign jurisdictions      
Amount      
Statutory tax rate difference $ 53 $ 94 $ 73
Percent      
Statutory tax rate difference 2.60% 4.60% 3.40%
United States      
Amount      
Other $ 2 $ (3) $ (3)
Effect of Changes in Tax Laws or Rates Enacted in the Current Period 0 0 0
Changes in Valuation Allowance $ 1 $ 1 $ (3)
Percent      
Other 0.10% (0.20%) (0.10%)
Effect of Changes in Tax Laws or Rates Enacted in the Current Period 0.00% 0.00% 0.00%
Changes in Valuation Allowance 0.10% 0.10% (0.20%)
v3.25.4
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
Insurance and employee benefits $ 90 $ 109
Other asset basis differences 119 113
Other liability basis differences 453 349
Tax loss carryforwards 226 201
Tax credit carryforwards 55 54
Valuation allowances (256) (250)
Total future income tax benefits 687 576
Intangible assets 148 143
Other assets basis differences 221 203
Total future income tax obligations $ 369 $ 346
v3.25.4
Income Taxes - Schedule of Tax Credit and Loss Carryforwards (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Tax Credit Carryforward [Line Items]  
Tax Credit Carryforwards $ 55
Tax Loss Carryforwards 974
2026-2030  
Tax Credit Carryforward [Line Items]  
Tax Credit Carryforwards 11
Tax Loss Carryforwards 52
2031-2035  
Tax Credit Carryforward [Line Items]  
Tax Credit Carryforwards 12
Tax Loss Carryforwards 22
2036-2045  
Tax Credit Carryforward [Line Items]  
Tax Credit Carryforwards 2
Tax Loss Carryforwards 111
Indefinite  
Tax Credit Carryforward [Line Items]  
Tax Credit Carryforwards 30
Tax Loss Carryforwards $ 789
v3.25.4
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Balance at January 1 $ 149 $ 394 $ 386
Additions for tax positions related to the current year 11 12 10
Additions for tax positions of prior years 10 0 7
Reductions for tax positions of prior years (18) (12) (8)
Settlements 0 (245) (1)
Balance at December 31 152 149 394
Gross interest expense (income) related to unrecognized tax benefits (22) (146) 6
Total accrued interest balance at December 31 $ 64 $ 84 $ 148
v3.25.4
Income Taxes - Income Taxes Paid, Net of Refunds (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]      
Federal $ 116 $ 55 $ 85
State 62 52 43
Foreign:      
Total income taxes paid, net of refunds 471 586 546
China      
Foreign:      
Total Foreign 72 91 90
France      
Foreign:      
Total Foreign 43 52 28
Germany      
Foreign:      
Total Foreign (102) 33 32
Japan      
Foreign:      
Total Foreign 39 41 40
Spain      
Foreign:      
Total Foreign 47 41 39
Foreign Other      
Foreign:      
Total Foreign $ 194 $ 221 $ 189
v3.25.4
Restructuring and Transformation Costs - Schedule of Restructuring and Related Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]      
Net restructuring costs $ 130 $ 71 $ 67
UpLift Actions      
Restructuring Cost and Reserve [Line Items]      
Net restructuring costs 76 31 25
Other Actions      
Restructuring Cost and Reserve [Line Items]      
Net restructuring costs 54 40 42
Cost of products and services sold      
Restructuring Cost and Reserve [Line Items]      
Net restructuring costs $ 44 $ 28 $ 6
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of sales Cost of sales Cost of sales
Cost of products and services sold | UpLift Actions      
Restructuring Cost and Reserve [Line Items]      
Net restructuring costs $ 13 $ 8 $ 0
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of sales Cost of sales Cost of sales
Cost of products and services sold | Other Actions      
Restructuring Cost and Reserve [Line Items]      
Net restructuring costs $ 31 $ 20 $ 6
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of sales Cost of sales Cost of sales
Selling, general and administrative      
Restructuring Cost and Reserve [Line Items]      
Net restructuring costs $ 86 $ 43 $ 61
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, general and administrative Selling, general and administrative Selling, general and administrative
Selling, general and administrative | UpLift Actions      
Restructuring Cost and Reserve [Line Items]      
Net restructuring costs $ 63 $ 23 $ 25
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, general and administrative Selling, general and administrative Selling, general and administrative
Selling, general and administrative | Other Actions      
Restructuring Cost and Reserve [Line Items]      
Net restructuring costs $ 23 $ 20 $ 36
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, general and administrative Selling, general and administrative Selling, general and administrative
v3.25.4
Restructuring and Transformation Costs - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jan. 31, 2025
New Equipment        
Restructuring Cost and Reserve [Line Items]        
Percentage of costs 30.00%      
Service        
Restructuring Cost and Reserve [Line Items]        
Percentage of costs 70.00%      
UpLift Actions        
Restructuring Cost and Reserve [Line Items]        
Expected costs $ 150      
Remaining costs 18      
Non-restructuring costs 69 $ 65 $ 16  
Other Actions        
Restructuring Cost and Reserve [Line Items]        
Expected costs 94      
Remaining costs $ 16      
Other Actions | New Equipment        
Restructuring Cost and Reserve [Line Items]        
Remaining percentage of costs 50.00%      
Other Actions | Service        
Restructuring Cost and Reserve [Line Items]        
Remaining percentage of costs 50.00%      
Reorganization Of China Operations        
Restructuring Cost and Reserve [Line Items]        
Expected costs       $ 30
v3.25.4
Restructuring and Transformation Costs - Restructuring Roll forward (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring Reserve [Roll Forward]      
Restructuring reserve, beginning balance $ 37 $ 48  
Net restructuring costs 130 71 $ 67
Utilization, foreign exchange and other (93) (82)  
Restructuring reserve, ending balance 74 37 48
UpLift Actions      
Restructuring Reserve [Roll Forward]      
Restructuring reserve, beginning balance 13 13  
Net restructuring costs 76 31 25
Utilization, foreign exchange and other (39) (31)  
Restructuring reserve, ending balance 50 13 13
Other Actions      
Restructuring Reserve [Roll Forward]      
Restructuring reserve, beginning balance 24 35  
Net restructuring costs 54 40 42
Utilization, foreign exchange and other (54) (51)  
Restructuring reserve, ending balance $ 24 $ 24 $ 35
v3.25.4
Financial Instruments - Narrative (Details)
€ in Millions, $ in Millions, $ in Millions, ¥ in Billions
3 Months Ended
Dec. 31, 2025
USD ($)
derivative
Dec. 31, 2025
EUR (€)
Dec. 31, 2025
JPY (¥)
Dec. 31, 2025
HKD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2024
HKD ($)
Dec. 31, 2023
EUR (€)
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Four quarter rolling average of notional amount of foreign exchange contracts hedging foreign currency transactions $ 5,600       $ 5,300    
Four quarter rolling average of notional amount of contracts hedging commodity purchases 12       $ 14    
Foreign currency cash flow hedge gain to be reclassified during next 12 months $ 1            
Net Investment Hedging              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Debt instrument, face amount | ¥     ¥ 21.5        
Net Investment Hedging | Derivatives not designated as Cash flow hedging instruments:              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Derivative notional amounts           $ 1,500  
Number of derivative instruments | derivative 6            
Net Investment Hedging | Foreign exchange contracts              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Derivative notional amounts   € 169   $ 2,200      
Net Investment Hedging | Contract One | Derivatives not designated as Cash flow hedging instruments:              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Derivative notional amounts | €   € 150          
Net Investment Hedging | Contract Two | Derivatives not designated as Cash flow hedging instruments:              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Derivative notional amounts | ¥     ¥ 2.1        
Net Investment Hedging | Contract Three | Derivatives not designated as Cash flow hedging instruments:              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Derivative notional amounts       $ 1,300      
Net Investment Hedging | Foreign currency forward contracts              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Derivative notional amounts | €             € 95
v3.25.4
Financial Instruments - Schedule of Fair Value of Derivative Instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Derivatives designated as Cash flow hedging instruments: | Cash Flow Hedging    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Asset derivatives $ 6 $ 9
Liability derivatives (5) (5)
Derivatives not designated as Cash flow hedging instruments:    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Asset derivatives 14 59
Liability derivatives (27) (45)
Foreign exchange contracts | Derivatives designated as Cash flow hedging instruments: | Cash Flow Hedging | Other current assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Asset derivatives 4 5
Foreign exchange contracts | Derivatives designated as Cash flow hedging instruments: | Cash Flow Hedging | Other assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Asset derivatives 2 4
Foreign exchange contracts | Derivatives designated as Cash flow hedging instruments: | Cash Flow Hedging | Accrued liabilities    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Liability derivatives (3) (4)
Foreign exchange contracts | Derivatives designated as Cash flow hedging instruments: | Cash Flow Hedging | Other long-term liabilities    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Liability derivatives (2) (1)
Foreign exchange contracts | Derivatives not designated as Cash flow hedging instruments: | Other current assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Asset derivatives 11 53
Foreign exchange contracts | Derivatives not designated as Cash flow hedging instruments: | Other assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Asset derivatives 2 6
Foreign exchange contracts | Derivatives not designated as Cash flow hedging instruments: | Accrued liabilities    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Liability derivatives (25) (39)
Foreign exchange contracts | Derivatives not designated as Cash flow hedging instruments: | Other long-term liabilities    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Liability derivatives (2) (6)
Commodity contracts | Derivatives not designated as Cash flow hedging instruments: | Other current assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Asset derivatives $ 1 $ 0
v3.25.4
Financial Instruments - Schedule of Gain (Loss) on Derivative Instruments Reclassified From OCI (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gain (loss) recorded in Accumulated other comprehensive income (loss) $ 1 $ 3
v3.25.4
Financial Instruments - Schedule of Gain (Loss) on Derivative and Non-Derivative Instruments (Details) - Net Investment Hedging - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Gains (losses)recognized in other comprehensive income (loss) $ (6) $ 23 $ 17
Foreign currency denominated long-term debt      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Gains (losses)recognized in other comprehensive income (loss) 1 13 13
Foreign currency forward contracts      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Gains (losses)recognized in other comprehensive income (loss) $ (7) $ 10 $ 4
v3.25.4
Financial Instruments - Schedule of Gain (Loss) on Derivative Instruments in Other Income (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Foreign exchange contracts      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Foreign exchange contracts $ 25 $ 7 $ 20
v3.25.4
Financial Instruments - Schedule of Gain (Loss) on Derivative Instruments in Cost of Product (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Commodity and foreign exchange contracts | Cost of products and services sold      
Derivative Instruments, Gain (Loss) [Line Items]      
Commodity and foreign exchange contracts $ (5) $ (1) $ (5)
v3.25.4
Fair Value Measurements - Schedule of Recurring and Nonrecurring (Details) - Fair Value, Recurring - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities $ 55 $ 44
Derivative assets 20 68
Derivative liabilities $ (32) $ (50)
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other current assets, Other assets Other current assets, Other assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued liabilities, Other long-term liabilities Accrued liabilities, Other long-term liabilities
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities $ 55 $ 44
Derivative assets 0 0
Derivative liabilities 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Derivative assets 20 68
Derivative liabilities (32) (50)
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Derivative assets 0 0
Derivative liabilities $ 0 $ 0
v3.25.4
Fair Value Measurements - Schedule of Balance Sheet Grouping (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Oct. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Short-term borrowings $ (215) $ (135) $ (51)
Carrying Amount      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term receivables, net 49   47
Customer financing notes receivable, net 16   21
Short-term borrowings (214)   (51)
Long-term debt, including current portion (excluding leases and other) (7,779)   (8,316)
Long-term liabilities, including current portion (84)   (132)
Fair Value      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term receivables, net 48   46
Customer financing notes receivable, net 14   19
Short-term borrowings (214)   (51)
Long-term debt, including current portion (excluding leases and other) (7,269)   (7,600)
Long-term liabilities, including current portion (81)   (123)
Fair Value | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term receivables, net 0   0
Customer financing notes receivable, net 0   0
Short-term borrowings 0   0
Long-term debt, including current portion (excluding leases and other) 0   0
Long-term liabilities, including current portion 0   0
Fair Value | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term receivables, net 48   46
Customer financing notes receivable, net 14   19
Short-term borrowings (214)   (51)
Long-term debt, including current portion (excluding leases and other) (7,269)   (7,600)
Long-term liabilities, including current portion (81)   (123)
Fair Value | Level 3      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term receivables, net 0   0
Customer financing notes receivable, net 0   0
Short-term borrowings 0   0
Long-term debt, including current portion (excluding leases and other) 0   0
Long-term liabilities, including current portion $ 0   $ 0
v3.25.4
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contractual indemnity obligations $ 113 $ 244
Reimbursement of tax payments | UTC    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Contractual indemnity obligations $ 80 $ 131
v3.25.4
Guarantees (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Guarantor Obligations [Line Items]    
Carrying amount of service and product guarantees $ 10 $ 16
Standby Letter of Credit    
Guarantor Obligations [Line Items]    
Guarantor obligation, maximum exposure $ 181  
v3.25.4
Leases - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Lessee, Lease, Description [Line Items]      
Extension term 5 years    
Termination term 1 year    
Operating lease expense $ 206 $ 166 $ 153
Minimum      
Lessee, Lease, Description [Line Items]      
Weighted average remaining lease term (in years) 1 year    
Maximum      
Lessee, Lease, Description [Line Items]      
Weighted average remaining lease term (in years) 20 years    
v3.25.4
Leases - Supplemental Operating Lease Cash Flow Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating cash outflows from operating leases $ (188) $ (129) $ (129)
ROU assets obtained in exchange for operating lease liabilities $ 323 $ 150 $ 93
v3.25.4
Leases - Operating Lease ROU Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Operating lease right-of-use assets $ 554 $ 422
Accrued liabilities 158 120
Operating lease liabilities 397 298
Total operating lease liabilities $ 555 $ 418
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities Accrued liabilities
v3.25.4
Leases - Supplemental Information Related to Operating Leases (Details)
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Weighted Average Remaining Lease Term (in years) 3 years 10 months 24 days 4 years 1 month 6 days
Weighted Average Discount Rate 4.20% 4.00%
v3.25.4
Leases - Operating Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
2026 $ 178  
2027 153  
2028 116  
2029 73  
2030 38  
Thereafter 47  
Total undiscounted lease payments 605  
Less: imputed interest (50)  
Total operating lease liabilities $ 555 $ 418
v3.25.4
Contingent Liabilities - Narrative (Details)
€ in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2025
EUR (€)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
German Tax Office Against Otis        
Loss Contingencies [Line Items]        
Expected refund $ 362 € 308    
German Tax Litigation        
Loss Contingencies [Line Items]        
Taxes payable 56   $ 56 $ 194
Tax indemnification income (expense)     67 194
Tax indemnification payments     205  
Asbestos Matter        
Loss Contingencies [Line Items]        
Loss contingency accrual 11   11 11
Insurance recovery receivable 3   3 3
Asbestos Matter | Minimum        
Loss Contingencies [Line Items]        
Estimate of possible loss 11   11 11
Asbestos Matter | Maximum        
Loss Contingencies [Line Items]        
Estimate of possible loss 31   31 21
Environmental Regulation        
Loss Contingencies [Line Items]        
Loss contingency accrual $ 5   $ 5 $ 5
v3.25.4
Contingent Liabilities - Schedule of Indemnity Payable (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
German Tax Litigation    
Loss Contingencies [Line Items]    
Indemnity Payable (in Accrued liabilities) $ 56 $ 194
v3.25.4
Segment Financial Data - Schedule of Segment Information (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Segment Reporting Information [Line Items]      
Number of operating segments | segment 2    
Net sales $ 14,431 $ 14,261 $ 14,209
Costs and expenses:      
Selling, general and administrative 1,979 1,861 1,884
Other including research and development (106) (236) 21
Net income 1,455 1,734 1,498
Operating profit 2,133 2,008 2,186
Non-service pension cost (benefit) 3 0 5
Interest expense (income), net 196 (31) 150
Net income before income taxes 1,934 2,039 2,031
Operating segments      
Segment Reporting Information [Line Items]      
Net sales 14,431 14,261 14,209
Costs and expenses:      
Cost of sales 10,017 9,976 10,010
Selling, general and administrative 1,669 1,634 1,672
Other including research and development 131 137 132
Operating profit 2,614 2,514 2,395
Operating segments | New Equipment      
Segment Reporting Information [Line Items]      
Net sales 4,989 5,367 5,812
Costs and expenses:      
Cost of sales 4,157 4,443 4,837
Selling, general and administrative 485 490 498
Other including research and development 107 105 96
Operating profit 240 329 381
Operating segments | Service      
Segment Reporting Information [Line Items]      
Net sales 9,442 8,894 8,397
Costs and expenses:      
Cost of sales 5,860 5,533 5,173
Selling, general and administrative 1,184 1,144 1,174
Other including research and development 24 32 36
Operating profit 2,374 2,185 2,014
Other, net | General corporate expenses and other      
Costs and expenses:      
Operating profit 180 158 126
Other, net | UpLift Actions      
Costs and expenses:      
Operating profit 76 31 25
Other, net | Other Actions      
Costs and expenses:      
Operating profit 54 40 42
Other, net | UpLift transformation costs      
Costs and expenses:      
Operating profit 69 65 $ 16
Other, net | Separation-related adjustments      
Costs and expenses:      
Operating profit 70 177  
Other, net | Litigation-related settlement costs      
Costs and expenses:      
Operating profit 21 18  
Other, net | Held for sale impairment      
Costs and expenses:      
Operating profit 10 18  
Other, net | Other, net      
Costs and expenses:      
Operating profit $ 1 $ (1)  
v3.25.4
Segment Financial Data - Schedule of Geographic External Sales (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Net sales $ 14,431 $ 14,261 $ 14,209
Long Lived Assets 743 701 727
United States Operations      
Segment Reporting Information [Line Items]      
Net sales 4,192 4,239 4,030
Long Lived Assets 323 315 325
China      
Segment Reporting Information [Line Items]      
Net sales 1,650 1,919 2,444
Long Lived Assets 70 72 83
Other      
Segment Reporting Information [Line Items]      
Net sales 8,589 8,103 7,735
Long Lived Assets $ 350 $ 314 $ 319
v3.25.4
Segment Financial Data - Schedule of Net Sales by Sales Type (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Net sales $ 14,431 $ 14,261 $ 14,209
New Equipment      
Segment Reporting Information [Line Items]      
Net sales 4,989 5,367 5,812
Service sales      
Segment Reporting Information [Line Items]      
Net sales 9,442 8,894 8,397
Maintenance and Repair      
Segment Reporting Information [Line Items]      
Net sales 7,584 7,211 6,870
Modernization      
Segment Reporting Information [Line Items]      
Net sales $ 1,858 $ 1,683 $ 1,527
v3.25.4
SCHEDULE II - Valuation and Qualifying Accounts (Details) - Future Income Tax Benefits - Valuation Allowance - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 250 $ 239 $ 240
Additions charged to income tax expense 17 32 16
Reductions credited to income tax expense (38) (11) (22)
Other adjustments 27 (10) 5
Ending balance $ 256 $ 250 $ 239