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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
 ____________________________________ 
FORM 10-Q
____________________________________ 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                  to                 
Commission file number 001-39221
____________________________________ 
OTIS WORLDWIDE CORPORATION
(Exact name of registrant as specified in its charter)
____________________________________ 
Delaware 83-3789412
(State or other jurisdiction of incorporation)(I.R.S. Employer Identification No.)
One Carrier Place, Farmington, Connecticut 06032
(Address of principal executive offices, including zip code)

(860) 233-6847
(Registrant's telephone number, including area code)
____________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange
on which registered
Common Stock ($0.01 par value)OTISNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý.    No  ¨.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý.    No  ¨.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerýAccelerated Filer¨
Non-accelerated Filer¨Smaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ¨
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  .    No  ý.

At June 30, 2020 there were 433,079,455 shares of Common Stock outstanding.
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OTIS WORLDWIDE CORPORATION
CONTENTS OF QUARTERLY REPORT ON FORM 10-Q
Quarter Ended June 30, 2020
 
 Page

Otis Worldwide Corporation and its subsidiaries' names, abbreviations thereof, logos, and product and service designators are all either the registered or unregistered trademarks or tradenames of Otis Worldwide Corporation and its subsidiaries. Names, abbreviations of names, logos, and products and service designators of other companies are either the registered or unregistered trademarks or tradenames of their respective owners. As used herein, the terms "we," "us," "our," " the Company" "the Business," or "Otis," unless the context otherwise requires, mean Otis Worldwide Corporation and its subsidiaries. References to internet websites in this Form 10-Q are provided for convenience only. Information available through these websites is not incorporated by reference into this Form 10-Q.
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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements
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OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) 
 Quarter Ended June 30,
(dollars in millions, except per share amounts)20202019
Net sales:
Product sales$1,294  $1,500  
Service sales1,735  1,851  
3,029  3,351  
Costs and expenses:
Cost of products sold1,072  1,209  
Cost of services sold1,066  1,158  
Research and development37  40  
Selling, general and administrative441  444  
2,616  2,851  
Other income (expense), net3  (19) 
Operating profit416  481  
Non-service pension cost (benefit)1  (11) 
Interest expense (income), net41  (3) 
Income from operations before income taxes374  495  
Income tax expense109  143  
Net income265  352  
Less: Noncontrolling interest in subsidiaries' earnings41  44  
Net income attributable to common shareholders$224  $308  
Earnings Per Share of Common Stock - Basic:
Net income attributable to common shareholders$0.52  $0.71  
Earnings Per Share of Common Stock - Diluted:
Net income attributable to common shareholders$0.52  $0.71  
See accompanying Notes to Condensed Consolidated Financial Statements

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OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) 
 Six Months Ended June 30,
(dollars in millions, except per share amounts)20202019
Net sales:
Product sales$2,417  $2,771  
Service sales3,578  3,681  
5,995  6,452  
Costs and expenses:
Cost of products sold1,986  2,269  
Cost of services sold2,221  2,298  
Research and development75  79  
Selling, general and administrative906  885  
5,188  5,531  
Other expense, net(62) (25) 
Operating profit745  896  
Non-service pension benefit(2) (22) 
Interest expense (income), net46  (2) 
Income before income taxes701  920  
Income tax expense234  268  
Net income467  652  
Less: Noncontrolling interest in subsidiaries' earnings78  71  
Net income attributable to common shareholders$389  $581  
Earnings Per Share of Common Stock - Basic:
Net income attributable to common shareholders$0.90  $1.34  
Earnings Per Share of Common Stock - Diluted:
Net income attributable to common shareholders$0.90  $1.34  

See accompanying Notes to Condensed Consolidated Financial Statements
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OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

Quarter Ended June 30,Six Months Ended June 30,
(dollars in millions)2020201920202019
Net income265  352  467  652  
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments38  (40) (84) (5) 
Pension and postretirement benefit plan adjustments3  3  4  (19) 
Change in unrealized cash flow hedging(12) (2) (1) (2) 
Other comprehensive income (loss), net of tax29  (39) (81) (26) 
Comprehensive income294  313  386  626  
Less: Comprehensive income attributable to noncontrolling interest(51) (45) (82) (71) 
Comprehensive income attributable to common shareholders$243  $268  $304  $555  

See accompanying Notes to Condensed Consolidated Financial Statements
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OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(amounts in millions, except per share amounts)June 30, 2020December 31, 2019
Assets
Cash and cash equivalents$1,912  $1,446  
Accounts receivable (net of allowance for expected credit losses of $140 and $83)
2,865  2,861  
Contract assets, current484  529  
Inventories, net629  571  
Other assets, current502  251  
Total Current Assets6,392  5,658  
Future income tax benefits427  373  
Fixed assets1,828  1,803  
Less: Accumulated depreciation(1,124) (1,082) 
Fixed assets, net704  721  
Operating lease right-of-use assets530  535  
Intangible assets, net458  490  
Goodwill1,639  1,647  
Other assets291  263  
Total Assets$10,441  $9,687  
Liabilities and (Deficit) Equity
Short-term borrowings$33  $34  
Accounts payable1,349  1,331  
Accrued liabilities1,917  1,739  
Contract liabilities, current2,463  2,270  
Total Current Liabilities5,762  5,374  
Long-term debt6,260  5  
Future pension and postretirement benefit obligations589  590  
Operating lease liabilities377  386  
Future income tax obligations 439  695  
Other long-term liabilities590  311  
Total Liabilities14,017  7,361  
Commitments and contingent liabilities (Note 17)
Redeemable noncontrolling interest96  95  
Shareholders' (Deficit) Equity:
Preferred Stock, $0.01 par value, 125 shares authorized; None issued or outstanding
    
Common Stock, $0.01 par value, 2,000 shares authorized; 433.1 shares issued and outstanding
4    
Additional paid-in capital15    
Accumulated deficit(3,418)   
UTC Net Investment  2,458  
Accumulated other comprehensive loss(843) (758) 
Total Shareholders' (Deficit) Equity(4,242) 1,700  
Noncontrolling interest570  531  
Total (Deficit) Equity(3,672) 2,231  
Total Liabilities and (Deficit) Equity$10,441  $9,687  
See accompanying Notes to Condensed Consolidated Financial Statements
8

Table of Contents
OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
Common StockAdditional Paid-In CapitalAccumulated DeficitUTC Net (Deficit) InvestmentAccumulated Other Comprehensive (Loss)Total Shareholders'
(Deficit) Equity
Noncontrolling InterestTotal (Deficit) EquityRedeemable Noncontrolling Interest
(amounts in millions)SharesAmount
Quarter Ended June 30, 2020
Balance April 1, 2020  $  $  $  $(3,959) $(862) $(4,821) $537  $(4,284) $95  
Net transfers from UTC and Separation-related transactions—  —  —  —  407  —  407  —  407  —  
Issuance of common stock and reclassification of deficit433  4  —  (3,556) 3,552  —  —  —  —  —  
Net income—  —  —  224    —  224  41  265  —  
Stock-based compensation—  —  15  —  —  —  15  —  15  —  
Other comprehensive income (loss), net of tax—  —  —  —  —  19  19  11  30  (1) 
Cash dividends declared ($0.20 per common share)
—  —  —  (87) —  —  (87) —  (87) —  
Dividends attributable to noncontrolling interest—  —  —  —  —  —  —  (18) (18) —  
Acquisition, disposal and other changes in noncontrolling interest—  —  —  4  —  —  4  (1) 3  —  
Changes in redeemable noncontrolling interest redemption value—  —  —  (3) —  —  (3) —  (3) 2  
Balance at June 30, 2020433  $4  $15  $(3,418) $  $(843) $(4,242) $570  $(3,672) $96  
Quarter Ended June 30, 2019
Balance April 1, 2019  $  $  $  $2,252  $(694) $1,558  $542  $2,100  $109  
Net transfers to UTC—  —  —  —  (15) —  (15) —  (15) —  
Net income—  —  —  —  308  —  308  44  352  —  
Redeemable noncontrolling interest in subsidiaries' earnings—  —  —  —  —  —  —  3  3  (3) 
Other comprehensive (loss) income, net of tax—  —  —  —  —  (40) (40) 1  (39) —  
Purchase of subsidiary shares from noncontrolling interest—  —  —  —  —  —  —  (1) (1) —  
Dividends attributable to noncontrolling interest—  —  —  —  —  —  —  (76) (76) —  
Changes in redeemable noncontrolling interest redemption value—  —  —  —  —  —  —  —  —  3  
Balance at June 30, 2019  $  $  $  $2,545  $(734) $1,811  $513  $2,324  $109  

See accompanying Notes to Condensed Consolidated Financial Statements
9

Table of Contents
OTIS WORLDWIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
Common StockAdditional Paid-In CapitalAccumulated DeficitUTC Net Investment (Deficit)Accumulated Other Comprehensive (Loss)Total Shareholders'
(Deficit) Equity
Noncontrolling InterestTotal (Deficit) EquityRedeemable Noncontrolling Interest
(amounts in millions)SharesAmount
Six Months Ended June 30, 2020
Balance January 1, 2020  $  $  $  $2,458  $(758) $1,700  $531  $2,231  $95  
Net transfers to UTC and Separation-related transactions—  —  —  —  (6,150) —  (6,150) —  (6,150) —  
Issuance of common stock and reclassification of deficit433  4  —  (3,556) 3,552  —    —    —  
Net income—  —  —  224  165  —  389  78  467  —  
Stock-based compensation—  —  15  —  —  —  15  —  15  —  
Other comprehensive (loss) income, net of tax—  —  —  —  —  (85) (85) 7  (78) (3) 
Cash dividends declared ($0.20 per common share)
—  —  —  (87) —  —  (87) —  (87) —  
Dividends attributable to noncontrolling interest—  —  —  —  —  —  —  (39) (39) —  
Acquisition, disposal and other changes in noncontrolling interest—  —  —  4  —  —  4  (7) (3) —  
Changes in redeemable noncontrolling interest redemption value—  —  —  (3) —  —  (3) —  (3) 4  
Adoption of credit loss standard, net of tax (Note 6)—  —  —  —  (25) —