Guarantees |
6 Months Ended | ||||||||||||||||||||||||||||||
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Jun. 30, 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 amount of service and product guarantees were $12 million and $16 million as of June 30, 2025 and December 31, 2024, respectively. The Company provides certain financial guarantees to third parties. As of June 30, 2025, Otis has stand-by letters of credit with maximum potential payment totaling $130 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 ASC Topic 460: Guarantees, we record these liabilities at fair value. As of June 30, 2025, Otis has determined there are no estimated costs probable under these guarantees.
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