Otis Worldwide (OTIS) 10-K risk factor changes: FY2021 vs FY2020

Our business, financial condition, operating results and cash flows may be adversely affected by changes in global economic conditions and geopolitical risks, including global credit market conditions, levels of consumer and business confidence, commodity prices, raw material and energy costs, [added: supply chain issues,] foreign currency exchange rates, interest rates, labor costs, levels of government spending and deficits, trade policies, tariffs and trade barriers, political conditions, regulatory changes, fluctuations in residential and commercial construction activity, pandemic health issues (see discussion of COVID-19 below), natural disasters, actual or anticipated default on sovereign [removed: debt, changes as a result of the new U.S. Administration] [added: debt] and other challenges that could affect the global economy.

[removed: During 2020, COVID-19] [added: COVID-19, including variants of the original virus, has continued to] spread throughout the world, resulting in [removed: widespread] [added: prolonged] travel restrictions and [removed: extended] shutdowns, occupancy limits or other restrictions of non-essential businesses, including construction and hospitality venues, impacting to various extents our factory operations, new equipment installations and access to units under maintenance.

The ultimate impact of the COVID-19 pandemic on our business is uncertain at this time and will depend on future developments, including the availability, efficacy and distribution of various [removed: vaccines,] [added: vaccines and treatments for COVID-19,] but further prolonged [removed: closures or] restrictions [removed: throughout the world] or the [removed: further] rollback of reopening measures due to [removed: the resurgence of COVID-19 cases and continued decreases in the general level of economic activity] [added: higher infection rates] may further disrupt our operations and the operations of our suppliers, distributors and customers.

Similarly, COVID-19 [removed: has] [added: and the ongoing economic recovery from the virus have] adversely affected and may further affect our supply base and increase the potential for one or more of our suppliers to experience [added: production constraints, distribution challenges,] financial distress or bankruptcy, which could impact our ability to fulfill orders on time or at anticipated cost.

[removed: Additionally,] [added: Furthermore,] it is unclear what longer term effects the virus will have on the global economy, including the commercial building industry.

We conduct our business on a global basis, with approximately [removed: 73 percent] [added: 74%] of our [removed: 2020] [added: 2021] net sales derived from international operations.

Changes in local and regional economic conditions, including [added: credit conditions and] fluctuations in exchange rates, may affect product demand and reported profits in our non-U.S. operations, where transactions are generally denominated in local currencies.

The implementation of more restrictive trade policies, including the imposition of tariffs, or the renegotiation of existing trade agreements with the U.S. or countries where we sell large quantities of products and services, procure materials incorporated into our products, manufacture products or recruit and employ employees, including [removed: the new U.S. Administration,] trade relations between the U.S. and China (as discussed [removed: below) and the U.K.’s recent withdrawal from the EU,] [added: below),] could have a material adverse effect on our business, results of operations and financial condition, including our ability to recruit and retain employees or deploy certain employees to the geographies where their skills are best utilized.

China is currently the largest end market for sales of new equipment in our industry, [removed: and] [added: with our New Equipment] sales in China [removed: represent over half] [added: representing approximately 35%] of our global New Equipment net sales [removed: by] [added: and over half of our global New Equipment] unit volume.

Changes to market and economic conditions in China, [added: including credit conditions for our customers,] or an escalation of trade conflicts between the U.S. and China, may impact our ability to continue New Equipment net sales in China at rates consistent with prior years.

In addition, as part of our global business model, we operate in certain countries, including Argentina, Brazil, China, India, Indonesia, [added: Malaysia,] Mexico, Poland, Russia, South Africa, Ukraine, Turkey and [added: certain] countries in the Middle East, that carry high levels of currency, political, compliance and economic risk.

Our emerging market operations can present many risks, including [removed: cultural] differences [added: in culturally accepted practices] (such as employment and business practices), compliance risks, economic and government instability, currency fluctuations, and the imposition of foreign exchange and capital controls.

[removed: Issues with suppliers (such as a disruption in deliveries, capacity constraints, production disruptions, quality issues and supplier closings or bankruptcies), price increases or] decreased availability of raw materials or commodities could have a material adverse effect on our ability to meet our commitments to customers, could damage our reputation or could increase our operating costs, any of which could have a material adverse effect on our competitive position, results of operations, cash flows or financial condition.

Certain of our businesses sell a significant amount of their products to [removed: key] distributors and agents, particularly in China, that have valuable relationships with customers.

Some of our contracts provide for liquidated damages if we do not perform in accordance [added: with the contract.]

- requiring us to dedicate significant cash flow from operations to the payment of principal and interest on our debt, which would reduce funds we have available for other purposes, such as acquisitions and reinvestment in our businesses; [added: and]

- reducing our flexibility in planning for or reacting to changes in our business and market [removed: conditions; and][added: conditions.]

Volatility in the world financial markets, including as a result of [added: inflation concerns from] the [added: ongoing recovery from the] COVID-19 pandemic, could increase borrowing costs or affect our ability to access the capital markets.

Otis has [removed: been issued] an investment grade credit rating from each of Moody’s Investor Services, Inc. and Standard & Poor’s.

[removed: And if] [added: If] we raise additional funds by issuing debt, we may be subject to limitations on our operations due to restrictive [removed: covenants.][added: covenants or rating agencies may downgrade our credit rating.]

Quarterly cash dividends and share [removed: repurchases, if commenced,] [added: repurchases] may be discontinued, accelerated or modified, are subject to a number of uncertainties and may affect the price of Common Stock.

We also have authority to repurchase our shares under a share repurchase program, which we have [removed: not exercised as of December 31, 2020.][added: suspended in connection with the Tender Offer.]

Important factors that could cause us to discontinue, limit, suspend, increase or delay our quarterly cash dividends or share repurchases include market conditions, the [added: market] price of Common Stock, the nature and timing of other investment [added: and acquisition] opportunities, changes in our business strategy, the terms of our financing arrangements, our outlook as to the ability to obtain financing at attractive rates, the impact on our credit ratings and the availability of domestic cash.

Although our share repurchase program is intended to enhance long-term shareholder value, [added: changes in laws or regulations related thereto or] short-term stock price fluctuations could reduce the program's effectiveness.

[removed: Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities"] [added: See Item 5] in this Form 10-K for more information regarding our share repurchase program.

For example, we may incur unanticipated costs, expenses or other liabilities as a result of an acquisition target’s violation of applicable laws, such as [removed: the U.S. Foreign Corrupt Practices Act (“FCPA”),] [added: anti-corruption,] antitrust, [removed: anti-collusion] [added: anti-collusion, environmental] or [removed: other anti-corruption laws in non-U.S. jurisdictions.][added: income tax laws.]

In certain regions, we operate our business through joint venture relationships or non-wholly owned subsidiaries, including: Otis Electric Elevator Company Limited and Otis Elevator (China) Investment Limited in China; and Zardoya [removed: Otis, a publicly traded company whose shares are listed on the Madrid Stock Exchange,] [added: Otis] in Spain.

Whether or not we hold a majority interest or maintain operational control in such arrangements, our partners or other shareholders may (1) have economic or business interests or goals that are inconsistent with or contrary to ours, (2) exercise veto or other rights, to the extent available, to block actions that we believe to be in our or the joint venture’s, strategic alliance’s or non-wholly owned subsidiary’s best interests, (3) take action contrary to our policies or objectives with respect to our investments or business or (4) be unable or unwilling (including as a result of financial or other difficulties) to fulfill their obligations, such as contributing [removed: capital to expansion or maintenance projects, under the joint venture, strategic alliance or other agreement.]

[added: If] convicted or found liable, we could be subject to significant fines, penalties, repayments and other damages (in certain cases, treble damages).

In addition, [added: we are subject to] the [removed: FCPA] [added: U.S. Foreign Corrupt Practices Act ("FCPA")] and other anti-corruption laws [added: that] generally prohibit companies and their intermediaries from making improper payments to government officials for the purpose of obtaining or retaining business.

For a description of current material legal proceedings, see "Note [removed: 21:] [added: 22:] Contingent Liabilities" [removed: to the Consolidated Financial Statements] in [removed: our 2020 Annual Report.][added: Item 8 of this Form 10-K.]

See "Note 13: Employee Benefit Plans" [removed: to the Consolidated Financial Statements] in [removed: our 2020 Annual Report] [added: Item 8 of this Form 10-K] for further discussion on pension plans and related obligations and contingencies.

We also develop products that may in certain cases collect, store, have access to, and otherwise process certain [removed: confidential] [added: personally identifiable] or [removed: sensitive] [added: confidential] data of our customers who purchase and use such products either separately or as a part of another product or [removed: system.][added: system or by way of access to our websites or social media accounts.]

Although we seek to protect such data and design our products to enable our customers to use them while complying with applicable data privacy and cybersecurity laws and/or customer-imposed [removed: controls,] [added: controls and have experienced cyber-attacks in the past,] both our internal systems and products may be vulnerable to hacking or [removed: other] [added: further] cyber-attacks, material security breaches, theft, programming errors or employee errors, which could lead to the compromise of such data, unauthorized access, use, disclosure, modification or destruction of information, improper use of our systems, software solutions or networks, defective products, production downtimes and/or operational disruptions in violation of applicable law and/or contractual obligations.

A significant actual or perceived risk of theft, loss, fraudulent use or misuse of customer, employee or other data, whether by us, our suppliers, distributors, customers or other third parties, as a result of employee error or malfeasance, or as a result of the [removed: imaging,] [added: compromise of] software, security and other products we incorporate into our products, as well as non-compliance with applicable industry standards or our contractual or other legal obligations or privacy and information security policies regarding such data, could result in costs, fines, litigation or regulatory actions, or could lead customers to select products and services of our competitors.

In addition, because of the global nature of our business, both our internal systems and products must comply with the applicable laws, regulations and standards in a number of jurisdictions, [removed: and government enforcement actions and violations of data privacy] [added: which continue to evolve,] and [removed: cybersecurity laws could be costly or interrupt our business operations.][added: in certain cases, include provisions that are unclear.]

The efficient operation of our business will require continued substantial investment in technology infrastructure systems, including [added: partial] shifting from virtual private networks to cloud-based networks, and we must attract and retain qualified people to operate these systems, expand and improve them, integrate new systems effectively and efficiently convert to new systems when required.

Such a transition [removed: could] [added: would] be time consuming, costly and damaging to our competitive position, and could require additional management resources.

[added: We continue to make investments and adopt measures designed to enhance our] protection, detection, response, and recovery capabilities, and to mitigate potential risks to our technology, products, services and operations from potential cyber-attacks.

Changes to tax laws and regulations, [removed: including] as [removed: a result of the new U.S. Administration, as] well as changes and conflicts in related interpretations or other tax guidance could materially impact our tax receivables and liabilities and our deferred tax assets and deferred tax liabilities.

Additionally, governments, including in the U.S., have enacted, or may enact, vaccine mandates.

While the U.S. Supreme Court has recently blocked enforcement of one mandate, other mandates remain in effect, and uncertainty remains around whether additional mandates may be adopted in the future.

Such mandates could result in labor disruptions, employee attrition, difficulty securing future labor needs and loss of government contracts.

Issues with suppliers, (such as a disruption in deliveries, capacity constraints, production disruptions, quality issues and supplier closings or bankruptcies, including in connection with the impact of COVID-19 and the ongoing economic recovery), price increases or

As of December 31, 2021, we had $7.2 billion outstanding long-term debt.

The Tender Offer of Zardoya Otis may not be completed at the price per share anticipated or result in the financial benefit in the time frame expected.

The Tender Offer is subject to approval by the CNMV and other uncertainties.

Zardoya Otis shareholders may not tender their shares or there may be competing offers.

The Company may not be able to complete the Tender Offer at the anticipated price or, if it does complete the Tender Offer, to realize certain cost and other expected benefits.

If the Company is unable to complete the Tender Offer on the anticipated terms, time frame, or at all, the anticipated benefits may not be realized fully or at all, or may take longer to realize than expected, and the value of the Company's Common Stock may decline.

(See the Risk Factor above regarding the Tender Offer).

capital to expansion or maintenance projects, under the joint venture, strategic alliance or other agreement.

Government enforcement actions, including due to geopolitical concerns, and violations of data privacy and cybersecurity laws could be costly or interrupt our business operations.

See “Business Overview” and “Results of Operations - Income Taxes” in Item 7 and "Note 2: Significant Accounting Policies" and "Note 16: Income Taxes" in Item 8 in this Form 10-K, for further discussion on income taxes and related contingencies.

The IRS ruling and the opinion of counsel were based upon and rely on, among other

Additionally, further tightening of credit in the capital markets could adversely affect our ability to access the capital markets or could result in a significant increase in our borrowing costs.

[Table of](#i192cd98e3e2c4282bc2a5d94702aad46_7) [Contents](#i192cd98e3e2c4282bc2a5d94702aad46_7)

with the contract.

As of December 31, 2020, we had $5.3 billion outstanding long-term debt on a consolidated basis and approximately $701 million of short-term debt.

- exposing us to interest rate risk because a portion of our debt obligations are at variable rates.

See "Item 5.

If

Significant decreases in the discount rate or investment losses on plan assets may increase our funding obligations.

See “Risk Factors—Risks Related to the Separation” below for a discussion of risks associated with transitioning our IT infrastructure systems under the TSA .

We continue to make investments and adopt measures designed to enhance our

See “Business Overview,” “Results of Operations - Income Taxes” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” "Note 2: Significant Accounting Policies" and "Note 15: Income Taxes" to the Consolidated Financial Statements in our 2020 Annual Report, for further discussion on income taxes and related contingencies, including our accounting and assessment of the effect of the Tax Cuts and Jobs Act ("TCJA").

asserting an “internal corporate claim” as that term is defined in Section 115 of the DGCL.

We could experience temporary interruptions in business operations and incur additional costs as we further develop information technology infrastructure and transition our data to our stand-alone systems.

We are in the process of finalizing development of an IT infrastructure and systems to support our critical business functions, including accounting and reporting, in order to replace many of the systems and functions our former parent UTC previously provided or currently provides under the TSA.

We may experience temporary interruptions in business operations if we cannot transition effectively to our own stand-alone systems and functions, which could disrupt our business operations and have a material adverse effect on our profitability.

Accordingly, notwithstanding

depending upon the jurisdiction and the applicable law.

BUSINESS OVERVIEW

We are the world’s leading elevator and escalator manufacturing, installation and service company.

Our Company is organized into two segments, New Equipment and Service.

Through our 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 and commercial buildings and infrastructure projects.

Our New Equipment customers include real-estate and building developers and general contractors who develop and/or design buildings for residential, commercial, retail or mixed-use activity.

We sell our New Equipment directly to customers, as well as through agents and distributors.

Through our Service segment, we perform maintenance and repair services for both our own products and those of other manufacturers and provide modernization services to upgrade elevators and escalators.

Maintenance services include inspections to ensure code compliance, preventive maintenance offerings and other customized maintenance offerings tailored to meet customer needs, as well as repair services to address equipment and component wear and tear and breakdowns.

Modernization services enhance equipment operation and improve building functionality.

Modernization offerings can range from relatively simple upgrades of interior finishes and aesthetics to complex upgrades of larger components and sub-systems.

Our typical Service customers include building owners, facility managers, housing associations and government agencies that operate buildings where elevators and escalators are installed.

We function under a centralized operating model whereby we pursue a global strategy set around New Equipment and Service, in large measure, because we seek to grow our maintenance portfolio, in part, through the conversion of new elevator and escalator installations into service contracts.

Accordingly, we benefit from an integrated global strategy, which sets priorities and establishes accountability across the full product lifecycle.

For additional discussion of our business, refer to Item 1 in this Form 10-K.

Zardoya Otis Tender Offer

The Company announced a tender offer to acquire all of the issued and outstanding shares of Zardoya Otis not owned by Otis (the "Tender Offer").

The offer price is €7.07 per share in cash after adjusting for dividends.

As of February 4, 2022, the Tender Offer remains outstanding and has not yet been completed.

See "Note 1: Business Overview" and "Note 10: Borrowings and Lines of Credit" in Item 8 in this Form 10-K, as well as "Liquidity and Financial Condition" in this item, for further details regarding this pending transaction and financing arrangements entered into in connection with the Tender Offer and Item 1A in this Form 10-K for additional risks related to thereto.

Impact of COVID-19 on our Company

The results of our operations and overall financial performance were impacted due to the COVID-19 pandemic during the years ended December 31, 2021 and 2020.

COVID-19 has had, and could continue to have, an impact on our business, including impacts to overall financial performance in 2022, as a result of the following, among other things:

- Customer demand impacting our new equipment, maintenance and repair, and modernization businesses

- Cancellations or delays of customer orders

- Customer liquidity constraints and related credit reserves

- Supplier and raw material capacity constraints, delays and related costs

We currently do not expect any significant impact to our capital and financial resources from the COVID-19 pandemic, including our overall liquidity position based on our available cash and cash equivalents and our access to credit facilities and the capital markets.

See the "Liquidity and Financial Condition" section of this item of this Form 10-K for further detail and Item 1A in this Form 10-K for additional risks related to COVID-19.

Separation from United Technologies Corporation

As previously disclosed, on April 3, 2020, Otis became an independent, publicly-traded company and its Common Stock is listed under the symbol "OTIS" on the New York Stock Exchange ("NYSE") as a result of the separation ("the Separation") of each of Otis and Carrier Global Corporation ("Carrier") from United Technologies Corporation, subsequently renamed Raytheon Technologies Corporation ("UTC" or "RTX", as applicable).

Prior to the Separation on April 3, 2020, our historical financial statements were prepared on a standalone combined basis and were derived from the consolidated financial statements and accounting records of our former parent, UTC.

For the periods subsequent to April 3, 2020, our financial statements are presented on a consolidated basis as the Company became a standalone public company.

We entered into a transition services agreement ("TSA") and tax matters agreement ("TMA") with our former parent, UTC, and Carrier on April 2, 2020.

Under the TSA, we received services for information technology, technical and engineering support, application support for operations, general administrative services and other support services.

The TSA and the related trailing exit costs are substantially completed as of December 31, 2021.

For additional discussion, see "Note 5: Related Parties" in Item 8 in this Form 10-K.

The TMA 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).

For additional discussion, see "Note 5: Related Parties" in Item 8 in this Form 10-K.

See Item 1A in this Form 10-K for discussion on risks related to Separation.

RESULTS OF OPERATIONS

The information set forth in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2020 Annual Report, filed as Exhibit 13 to this Form 10-K, is incorporated herein by reference.

For information concerning market risk sensitive instruments, see discussion under the [removed: heading "Market Risk and Risk Management" in "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our 2020 Annual Report, and under the] headings "Foreign Exchange Exposures" and "Derivatives and Hedging Activity" in "Note 2: Summary of Accounting Policies," as well as "Note [removed: 17:] [added: 18:] Financial Instruments" [removed: to the Consolidated Financial Statements] in [removed: our 2020 Annual Report, filed as Exhibit 13 to] [added: Item 8 in] this Form [removed: 10-K.][added: 10-K for additional discussion on unrecognized tax benefits.]

We are exposed to fluctuations in foreign currency exchange rates and commodity prices.

To manage certain of those exposures, we use derivative instruments, including forward contracts.

Derivative instruments utilized by us in our hedging activities are viewed as risk management tools, involve relatively little complexity and are not used for trading or speculative purposes.

We diversify the counterparties used and monitor the concentration of risk to limit our counterparty exposure.

We have evaluated our exposure to changes in foreign currency exchange rates, commodity prices and interest rates in our market risk sensitive instruments, which are primarily cash, debt and derivative instruments, using a value at risk analysis.

Based on a 95% confidence level and one-day holding period, as of December 31, 2021, the potential loss in fair value on our market risk sensitive instruments was not material in relation to our financial position, results of operations or cash flows.

Our calculated value at risk exposure represents an estimate of reasonably possible net losses based on volatilities and correlations, and is not necessarily indicative of actual results.

Additionally, any losses or gains on derivative instruments would be mostly offset by corresponding gains or losses in the remeasurement of the underlying transactions being hedged.

Refer to "Note 2: Summary of Significant Accounting Policies", "Note 10: Borrowings and Lines of Credit" and "Note 18: Financial Instruments" in Item 8 in this Form 10-K for additional discussion of foreign currency exchange, interest rates and financial instruments, including the aggregate notional amount of our outstanding foreign currency and commodity price hedges.

*Foreign Currency Exposures*

The value of certain foreign currencies as compared to the U.S. Dollar may impact Otis’ financial results.

We have a high volume of foreign currency exposures that result from our international sales, purchases, investments and other international transactions.

International sales were approximately $10.6 billion, $9.3 billion and $9.5 billion in 2021, 2020 and 2019, respectively.

We manage foreign currency exposures that are associated with committed foreign currency purchases and sales as well as foreign currency denominated assets and liabilities that are created in the ordinary course of business.

More than insignificant exposures, that cannot be naturally offset, are generally hedged with foreign currency derivatives.

For our non-U.S. based entities, a substantial portion of revenues are generated and costs are incurred in local currencies.

We transact business in various foreign currencies, which exposes our cash flows and earnings to changes in foreign currency exchange rates.

We periodically enter into sales contracts denominated in currencies other than the functional currency of the parties to the transaction, which can create foreign exchange exposure.

While the objective of the hedging program is to minimize the foreign currency exchange impact on operating results, there are typically variances between the hedging gains or losses and the translational impact due to the length of hedging contracts, changes in the sales profile, volatility in the exchange rates and other such operational considerations.

Otis does not enter into hedging contracts for speculative purposes.

As discussed in "Note 18: Financial Instruments" in Item 8 in this Form 10-K, as of December 31, 2021 we have ¥21.5 billion ($189 million) of Japanese Yen denominated long-term debt, which qualifies as a net investment hedge against our investments in Japanese businesses.

As of December 31, 2021, the net investment hedge is deemed to be effective.

As discussed in "Note 10: Borrowings and Lines of Credit" in Item 8 in this Form 10-K, as of December 31, 2021 we have €1,600 million ($1,807 million) of Euro denominated long-term debt.

*Commodity Price Risk*

The fluctuation in prices of certain raw materials may impact Otis' financial results.

We are exposed to volatility in the prices of commodities used in some of our products and component parts, such as steel, aluminum and copper, among others.

When possible and appropriate, we maintain fixed price contracts on raw materials and component parts.

However, we are prone to exposure as these contracts expire.

When possible and appropriate, we also include price escalation linked to commodity prices in contracts with our customers and take pricing actions for future contracts.

However, products and services delivered to our customers are often provided a year or more after being agreed to, and not all raw material price increases can be passed along to customers with existing contracts.

Therefore, when commodity price risk is not mitigated by other methods, we may enter into hedging contracts.

Otis does not enter into hedging contracts for speculative purposes.

*Interest Rate Risk*

Our long-term debt portfolio primarily consists of fixed-rate instruments.

For any variable rate debt, interest rate changes in the London Interbank Offered Rate ("LIBOR") will impact future earnings and cash flows.

From time to time, we may hedge floating rates using interest rate swaps.

The hedges would be designated as fair value hedges and the gains and losses on the swaps would be reported in interest expense, reflecting that portion of interest expense at a variable rate.

The following description of our business should be read in conjunction with [removed: "Management's Discussion and Analysis of Financial Condition and Results of Operations"] [added: Item 7] in [removed: our 2020 Annual Report,] [added: this Form 10-K,] including the information contained therein under the heading "Business Overview."

The Separation was completed pursuant to a Separation and Distribution Agreement ("Separation Agreement") and other agreements with UTC [added: and Carrier] related to the Separation, including but not limited to a transition services agreement ("TSA"), a tax matters agreement ("TMA"), an employee matter agreement ("EMA") and an intellectual property agreement (the "Intellectual Property Agreement").

For further discussion of these agreements, see [removed: “Item 1A.][added: Item 1A, "Note 1: Business Overview" in Item 8 and Item 15 in this Form 10-K.]

Our international operations represented approximately [removed: 73 percent] [added: 74%] of our net sales for the year ended December 31, [removed: 2020.][added: 2021.]

This Form 10-K and our quarterly reports on Form-10-Q, current reports on Form 8-K and any amendments to those reports are available free of charge through the Investors section of our Internet website (http://www.otis.com) under the heading [removed: "SEC Filings"] [added: "Financial Information"] as soon as reasonably practicable after these reports are electronically filed with, or furnished to, the SEC.

Our Company is organized into two segments, New Equipment and Service, which, for the year ended December 31, [removed: 2020,] [added: 2021,] contributed [removed: 42 percent] [added: 45%] and [removed: 58 percent] [added: 55%] of our net sales, and [removed: 16 percent] [added: 21%] and [removed: 84 percent] [added: 79%] of our segment operating profit, respectively.

In [removed: 2020,] [added: 2021,] our New Equipment segment had sales of [removed: $5.4] [added: $6.4] billion and operating profit of [removed: $318] [added: $459] million.

In [removed: 2020,] [added: 2021,] our New Equipment [removed: unit] sales in China [added: and the Americas each] represented [added: approximately one-third of our new equipment net sales, respectively, while China represented] over half of our global New Equipment [removed: sales by] unit volume.

[removed: This] [added: The] technology [removed: combination helps to reduce entrapments,] expands predictive and remote maintenance capabilities [removed: and leads] to [added: support] improved elevator up-time and service productivity.

The Gen2 [removed: system is the basis for] [added: family of elevators has been] our principal low-and mid-rise elevator solution.

Since its [removed: inception] [added: launch] in 2000, Otis has sold over one million Gen2 [removed: units.][added: units, making it our best selling elevator platform.]

[added: Our proprietary] Compass [added: 360 destination management system] groups passengers by their desired destination and directs them to an assigned car that minimizes waiting and ride time.

We also sell New Equipment to government [removed: agencies] [added: agencies, particularly,] to support infrastructure projects, such as airports, railways or metros.

[removed: In China, due] [added: Due] to the large and widespread nature of the customer [removed: base,] [added: base in China and certain other geographies,] our direct sales force is augmented by agents and distributors.

We also rely on agents and distributors to sell our new equipment in certain [added: other] countries and territories.

Given the breadth of our customer base and the large number of customers to whom we deliver new equipment on an annual basis, we are not dependent on any single customer and do not have any [removed: material] contracts [added: material to Otis as a whole] with any single customer.

Our network of agents and distributors is broad and geographically dispersed, and we do not rely on or have any [removed: material] contracts [added: material to Otis as a whole] with any single agent or distributor.

We have a maintenance portfolio of over [removed: 2] [added: 2.1] million units globally, which includes Otis equipment manufactured and sold by us, as well as equipment from other original equipment manufacturers.

In [removed: 2020,] [added: 2021,] our Service segment had net sales of [removed: $7.4] [added: $7.9] billion and operating profit of [removed: $1.6] [added: $1.8] billion.

With over [removed: 2] [added: 2.1] million maintenance units under contract globally, we have a wide range of customers in our Service segment and do not have any single [removed: material] service [removed: contract.][added: contract material to Otis as a whole.]

We provide our Service offerings to our customers through a global network of approximately [removed: 33,000] [added: 34,000] Service mechanics operating out of over 1,400 branches and offices typically located in close proximity to concentrations of customers.

In [removed: 2021,] [added: 2022,] we [removed: will] [added: expect to] continue to innovate and expand our digital ecosystem and suite of digital solutions for both our existing service portfolio customers and for new equipment shipments from our factories.

For the year ended December 31, [removed: 2020,] [added: 2021,] research and development ("R&D") expense was [removed: $152] [added: $159] million and [removed: 1.2%] [added: 1.1%] as a percentage of net sales.

In addition to research and development expense, we made investments in digital and strategic initiatives of approximately [removed: $47] [added: $59] million, which in combination with research and development expense was [removed: 1.6%] [added: 1.5%] as a percentage of net [removed: sales for the year ended December 31, 2020.][added: sales.]

We have [removed: several] [added: 11] R&D centers and [added: 18] factories around the world, including major locations in China, India, France, Spain and the United States.

The [added: R&D] centers are strategically located close to concentrations of customers [added: and factories] to enable efficient development of engineering solutions that can serve as global model products and adapt quickly and efficiently to local customer needs and local demographic and construction trends.

We have approximately 1,300 engineers globally, with increasing focus on digital initiatives, software, design [removed: and] [added: of the] user interface and the user experience.

We currently own approximately [removed: 3,000] [added: 3,700] globally issued patents, and we have approximately [removed: 3,100] [added: 2,700] patent applications pending globally, of which [removed: 2,500] [added: approximately 2,600] applications were filed in the last three years.

[removed: Risk Factors”] [added: See Item 1A] in this Form 10-K for further discussion of intellectual property matters.

In addition to China and [removed: Spain] [added: Spain,] as discussed below, we also operate [added: through] joint ventures [added: and non-wholly owned subsidiaries] in other countries, including [added: Italy,] Russia, [removed: Kuwait,] Malaysia, [removed: Saudi Arabia] and [added: certain countries in] the [removed: United Arab Emirates.][added: Middle East.]

Otis China is a joint venture established in 1998 for the purpose of manufacturing, installing and servicing elevators, escalators and related [removed: equipment in China.][added: equipment.]

Otis Electric, a subsidiary of Otis China, is a joint venture established in 1997 for the purpose of manufacturing, installing and servicing elevators, escalators and related [removed: equipment both in and outside China.][added: equipment.]

We conduct our operations [added: based] in Spain through Zardoya Otis S.A. (“Zardoya Otis”), which manufactures, installs and services elevators and elevator equipment in Spain, and exports elevator equipment it manufactures for installation by certain of our subsidiaries outside of Spain.

Zardoya Otis’ shares are listed on [removed: the Madrid] [added: Spanish] stock [removed: exchange,] [added: exchanges,] and the company is subject to the [removed: regulations] [added: supervision] of the Spanish [removed: Stock] [added: Securities] Exchange [removed: Market National Commission.][added: Commission (Comisión Nacional del Mercado de Valores (the "CNMV")).]

According to industry estimates, there are [removed: several hundred] [added: hundreds of] participants that offer New Equipment solutions and several thousand participants that offer maintenance and service solutions.

[removed: We estimate small and] [added: These] independent service providers [removed: globally] have an aggregate portfolio of about [removed: 50 percent] [added: 50%] of service units, but [removed: these small and independent service providers] account for a smaller percentage of the service business when measured by value because of the types of units and level of maintenance covered by these providers.

We believe our business strategies sustain New Equipment growth, accelerate Service portfolio growth, advance the digitalization of Otis, [removed: and] focus and empower the organization, [removed: will] support our ability to successfully compete across the New Equipment and Service segments, and will help deliver sustainable earnings growth.

Any changes in legislation or government policies impacting our industry, including with respect to employee safety, labor-related regulations, industrial equipment, licensing requirements, foreign ownership limitations and building and elevator safety codes, can affect our [removed: worldwide] operations.

We closely monitor local legislation and government policies in the locations in which we [removed: operate as they set the maintenance requirements for our customers.][added: operate.]

For further discussion of risks related to environmental matters and other government regulations, see [removed: "Item 1A.][added: in this Form 10-K Item 1A, Item 7 and "Note 2: Summary of Significant Accounting Policies" and "Note 22: Contingent Liabilities" in Item 8 in this Form 10-K.]

Separation from United Technologies Corporation

In 2021, we introduced the successors to the Gen2 family of elevators: the Gen3 and Gen360 digital elevator platforms.

These platforms enhance the space-saving, energy-efficient design of the Gen2 elevator with the connectivity of the Otis ONE IoT (internet of things) digital service platform, while adding additional safety features for the passengers and our colleagues who maintain the elevator.

Otis ONE is designed

to continuously monitor equipment health and performance in real time to provide proactive, predictive and transparent information to our technicians and customers.

The Gen360 elevator also features a new native electronic architecture, with many mechanical components replaced by electronic components that in connection with our service increase reliability, reduce the potential for entrapments and free hoistway space to accommodate larger cabins.

The new Otis One IoT solution turns the elevator into a network of sensors for real-time status updates.

A foldable, in-ceiling platform allows maintenance operations to be performed safely from within the car rather than on top of it and, depending on local regulations, eliminates the need for a refuge space above the car and the protrusion on the roof for a flat roof design.

With 360-degree cameras in the hoistway, Otis service teams can visually confirm, fine-tune, diagnose and solve many issues remotely without stopping the elevator.

For taller, high-rise buildings, our most prominent product is the SkyRise elevator solution.

The SkyRise advanced high-rise elevator platform combines cutting-edge technologies and precision engineering to deliver solutions for residential, commercial and mixed use skyscrapers.

Otis offers a range of technologies for improving the passenger experience as well as the safety and efficiency of the building itself.

Otis eView in-car display streams live, customizable infotainment to passengers and connects them to OTISLINE during an emergency.

The Otis eCall Plus smartphone app enables passengers to summon their elevator remotely for a touchless experience.

We have also rolled out new voice and gesturing technologies for summoning elevators to customers in China and North America, with other geographies to follow.

And the new Otis Cab Air Purifier significantly reduces airborne bacteria and viruses, another innovation designed to address customer needs and passenger preferences as the result of the COVID-19 pandemic.

*Digital Technology initiatives*

Otis has been using technology to monitor elevator performance remotely for decades, culminating in our latest Otis ONE technology discussed under "New Equipment" above.

We also offer multimedia subscription options with additional voice, data and video digital services to customers leveraging our IoT technologies.

By the end of 2021, approximately 35% of our global portfolio is connected.

Zardoya Otis

In September 2021, the Company announced a tender offer to acquire all of the issued and outstanding shares of Zardoya Otis not owned by Otis.

See Item 1A and "Note 1: Business Overview" in Item 8 in this Form 10-K for further details regarding this pending transaction, including risks associated therewith.

Additionally, the slowdown of economic activity due to COVID-19 and subsequent ongoing recovery in certain regions, as well as the impact of COVID-19 more broadly on employment and the economy, have created long lead times and product shortages for certain components and supplier.

We seek to manage commodity price risk through locking and hedging strategies, as well as passing the increases onto our customers through pricing.

See Item 1A in this Form 10-K for risks associated with raw material and supply chain, as well as COVID-19.

Environmental, Social and Governance ("ESG")

Otis is committed to working for the global good of our passengers, customers, colleagues and society.

In order to align our ESG initiatives with our broader strategy, we completed a materiality assessment in 2020 to determine our most critical ESG areas for management, goal-setting and reporting.

This allows us to focus on the topics most important to our business.

We also became a signatory to the U.N. Global Compact in March 2021.

Our ESG goals and alignment to U.N. Sustainable Development Goals are categorized into four areas: Health & Safety, Environmental & Impact, People & Communities and Governance & Accountability.

We have published our ESG goals, which can be found in the Investor section of our corporate website.

Additionally, we expect to publish an ESG report on our ESG activities, metrics and progress towards our goals starting in 2022.

In 2022, our progress towards reducing Scope 1 and Scope 2 greenhouse gases will be a factor in determining payouts under our executive short-term incentive plan.

Our ESG goals and ESG report are not incorporated by reference into this Form 10-K and will be available in the Investors section of our website (http://www.otis.com) under the heading "ESG".

Also, see "Human Capital" below for additional information regarding certain ESG initiatives related to our colleagues, including health & safety, employee engagement and diversity, equity and inclusion.

There have been no, and we do not expect there to be in the near term, material impacts on our business, financial condition or results of operations as a result of compliance with legislation or regulatory rules regarding climate change, from the known physical effects of climate change or as a result of implementing our ESG initiatives.

Increased regulation and other climate change concerns, however, could subject us to additional costs and restrictions, and we are not able to predict how such regulations or concerns would affect our business, operations or financial results.

set to expire in July 2022.

Risk Factors” and "Item 15.

Exhibits and Financial Statement Schedule" in this Form 10-K and "Note 1: Business Overview and Separation from United Technologies Corporation" to the Consolidated Financial Statements in our 2020 Annual Report.

For the year ended December 31, 2020, our net sales and our operating profit were approximately $12.8 billion and $1.6 billion, respectively.

For discussions of the impact of the COVID-19 global pandemic on our business, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the heading "Business Overview" and "Note 2, Summary of Significant Accounting Policies" to the Consolidated Financial Statements in our 2020 Annual Report.

[Table of](#i192cd98e3e2c4282bc2a5d94702aad46_7) [Contents](#i192cd98e3e2c4282bc2a5d94702aad46_7)

Otis’ next-generation, digitally native Gen360 elevator, piloted in 2020, allows us to move from a predominantly mechanical system to an electronic architecture.

Gen360 offers a compact design and footprint that frees up space in buildings combined with built-in Otis ONE connectivity providing proactive, predictive and transparent information to our technicians and customers.

Otis also offers a range of passenger experience enhancements such as eView and Otis eCall.

eView is an in-car display providing customized passenger content and communications.

Otis eCall enables passengers within a building to call an elevator using an app on their mobile devices.

The Gen2 system relies on compact elevator components that can fit within the elevator hoistway and can eliminate the need for a machine-room, which releases rentable or usable space.

During 2020, we continued to expand this product offering, launching Gen2 Prime in India and other developing countries for the low-rise, entry-level segment.

We enhance the effectiveness of our elevator solutions by offering our proprietary Compass destination dispatch management system.

Component lead-time is generally not a constraining factor.

We are a pioneer in connected elevator and escalator units.

Since 1985, we have installed and supported remote elevator monitoring, where elevators and escalators are connected to OTISLINE through telecommunication links.

We have deep

experience in collecting, analyzing and implementing data from remotely monitored elevators, and developing insights to improve equipment operation.

In 2020, we launched Otis ONE, an IoT solution providing active monitoring and cloud-based actionable analytics to our Otis experts, technicians and customers.

Otis ONE provides real-time visibility of the entire portfolio, a range of health and diagnostic information and analytics to improve elevator up-time.

This solution is proven to enhance customer satisfaction, improving retention, conversions and recaptures.

By the end of 2020, we deployed and connected nearly 100,000 Otis ONE units, primarily in Europe.

With the addition of the Otis ONE units, our total global portfolio of connected units is approximately 540,000 units as of December 31, 2020.

See "Item 1A.

Spain

Risk Factors” in this Form 10-K and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” "Note 2: Summary of Significant Accounting Policies" and "Note 21: Contingent Liabilities" to the Consolidated Financial Statements in our 2020 Annual Report.

Risk Factors” section in this Form 10-K, for further discussion on the possible effects of the cost and availability of raw materials and risks associated with our supply chain.

For a discussion of the effects of our restructuring actions on employment, see “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and "Note 16: Restructuring Costs" to the Consolidated Financial Statements included in 2020 Annual Report.

U.S. based employees and covered family members under our welfare plans and amended our 401(k) savings plan to enhance loan eligibility and repayment terms and to permit certain distributions.

- the anticipated benefits of moving away from diversification and balance of operations across product lines, regions and industries;

- risks associated with indebtedness incurred as a result of financing transactions undertaken in connection with the Separation;

- the risk that dis-synergy costs, costs of restructuring transactions and other costs incurred in connection with the Separation will exceed Otis’ estimates; and

- the impact of the Separation on Otis’ businesses, resources, systems, procedures and controls, diversion of management’s attention and the impact on relationships with customers, suppliers, employees and other business counterparties.

See the "Notes to Consolidated Financial Statements" under the headings "Note 1: Business Overview and Separation from United Technologies Corporation" and "Note 21: Contingent Liabilities", the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" under the headings "Business Overview", "Critical Accounting Estimates" "Results of Operations" and "Liquidity and Financial Condition" in our 2020 Annual Report and the sections titled "Item 1.

Business", "Item 1A.

Risk Factors" and "Item 3.

Legal Proceedings" in this Form 10-K.

For a discussion regarding material legal proceedings, see "Note [removed: 21,] [added: 22,] Contingent Liabilities" to the Consolidated Financial Statements [removed: in our 2020 Annual Report.][added: within Item 8 of this Form 10-K.]

[removed: [Table of](#i192cd98e3e2c4282bc2a5d94702aad46_7) [Contents](#i192cd98e3e2c4282bc2a5d94702aad46_7)][added: TABLE OF CONTENTS]

For the fiscal year ended December 31, [removed: 2020][added: 2021]

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 [removed: file such reports), and (2) has been subject to such filing requirements for the past 90 days.]

The aggregate market value of the voting Common Stock held by non-affiliates at June 30, [removed: 2020] [added: 2021] was approximately [removed: $24,623,303,912] [added: $34,888,309,556] based on the New York Stock Exchange closing price for such shares on that date.

At January [removed: 31, 2021,] [added: 21, 2022,] there were [removed: 433,671,005] [added: 424,962,356] shares of Common Stock outstanding.

Part III hereof incorporates by reference portions of the Otis Worldwide Corporation Proxy Statement for the [removed: 2021] [added: 2022] Annual Meeting of [removed: Shareholders.][added: Shareholders (the "2022 Proxy Statement").]

[removed: Year] [added: For the Year] Ended December 31, [removed: 2020][added: 2021]

| [Item 1. [removed: Business](#i192cd98e3e2c4282bc2a5d94702aad46_1667)] [added: Business](#idc4b2caa96904285bf081581639af231_13)] | | | [removed: [4](#i192cd98e3e2c4282bc2a5d94702aad46_1667)] [added: [4](#idc4b2caa96904285bf081581639af231_13)] | | |

| [Cautionary Note Concerning Factors That May Affect Future [removed: Results](#i192cd98e3e2c4282bc2a5d94702aad46_2024)] [added: Results](#idc4b2caa96904285bf081581639af231_16)] | | | [removed: [11](#i192cd98e3e2c4282bc2a5d94702aad46_2024)] [added: [12](#idc4b2caa96904285bf081581639af231_16)] | | |

| [Item 1A. Risk [removed: Factors](#i192cd98e3e2c4282bc2a5d94702aad46_178)] [added: Factors](#idc4b2caa96904285bf081581639af231_19)] | | | [removed: [12](#i192cd98e3e2c4282bc2a5d94702aad46_178)] [added: [13](#idc4b2caa96904285bf081581639af231_19)] | | |

| [Item 1B. Unresolved Staff [removed: Comments](#i192cd98e3e2c4282bc2a5d94702aad46_1674)] [added: Comments](#idc4b2caa96904285bf081581639af231_22)] | | | [removed: [24](#i192cd98e3e2c4282bc2a5d94702aad46_1674)] [added: [25](#idc4b2caa96904285bf081581639af231_22)] | | |

| [Item 2. [removed: Properties](#i192cd98e3e2c4282bc2a5d94702aad46_1681)] [added: Properties](#idc4b2caa96904285bf081581639af231_25)] | | | [removed: [24](#i192cd98e3e2c4282bc2a5d94702aad46_1681)] [added: [25](#idc4b2caa96904285bf081581639af231_25)] | | |

| [Item 3. Legal [removed: Proceedings](#i192cd98e3e2c4282bc2a5d94702aad46_1688)] [added: Proceedings](#idc4b2caa96904285bf081581639af231_28)] | | | [removed: [24](#i192cd98e3e2c4282bc2a5d94702aad46_1688)] [added: [25](#idc4b2caa96904285bf081581639af231_28)] | | |

| [Item 4. Mine Safety [removed: Disclosures](#i192cd98e3e2c4282bc2a5d94702aad46_1696)] [added: Disclosures](#idc4b2caa96904285bf081581639af231_31)] | | | [removed: [24](#i192cd98e3e2c4282bc2a5d94702aad46_1696)] [added: [25](#idc4b2caa96904285bf081581639af231_31)] | | |

| [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer of Purchases of Equity [removed: Securities](#i192cd98e3e2c4282bc2a5d94702aad46_175)] [added: Securities](#idc4b2caa96904285bf081581639af231_37)] | | | [removed: [25](#i192cd98e3e2c4282bc2a5d94702aad46_175)] [added: [26](#idc4b2caa96904285bf081581639af231_37)] | | |

| [Item 7. Management's Discussion and Analysis of Financial Condition and Results of [removed: Operations](#i192cd98e3e2c4282bc2a5d94702aad46_184)] [added: Operations](#idc4b2caa96904285bf081581639af231_43)] | | | [removed: [25](#i192cd98e3e2c4282bc2a5d94702aad46_184)] [added: [28](#idc4b2caa96904285bf081581639af231_43)] | | |

| [Item 7A. Quantitative and Qualitative Disclosures About Market [removed: Risk](#i192cd98e3e2c4282bc2a5d94702aad46_1784)] [added: Risk](#idc4b2caa96904285bf081581639af231_46)] | | | [removed: [25](#i192cd98e3e2c4282bc2a5d94702aad46_1784)] [added: [50](#idc4b2caa96904285bf081581639af231_46)] | | |

| [Item 8. Financial Statements and Supplementary [removed: Data](#i192cd98e3e2c4282bc2a5d94702aad46_1800)] [added: Data](#idc4b2caa96904285bf081581639af231_49)] | | | [removed: [25](#i192cd98e3e2c4282bc2a5d94702aad46_1800)] [added: [52](#idc4b2caa96904285bf081581639af231_49)] | | |

| [Item 9. Changes in and Disagreements with Accountants and Financial [removed: Disclosure](#i192cd98e3e2c4282bc2a5d94702aad46_1808)] [added: Disclosure](#idc4b2caa96904285bf081581639af231_52)] | | | [removed: [25](#i192cd98e3e2c4282bc2a5d94702aad46_1808)] [added: [102](#idc4b2caa96904285bf081581639af231_52)] | | |

| [Item 9A. Controls and [removed: Procedures](#i192cd98e3e2c4282bc2a5d94702aad46_166)] [added: Procedures](#idc4b2caa96904285bf081581639af231_55)] | | | [removed: [26](#i192cd98e3e2c4282bc2a5d94702aad46_166)] [added: [102](#idc4b2caa96904285bf081581639af231_55)] | | |

| [Item 9B. Other [removed: Information](#i192cd98e3e2c4282bc2a5d94702aad46_1847)] [added: Information](#idc4b2caa96904285bf081581639af231_58)] | | | [removed: [26](#i192cd98e3e2c4282bc2a5d94702aad46_1847)] [added: [102](#idc4b2caa96904285bf081581639af231_58)] | | |

| [Item 10. Directors, Executive Officers and Corporate [removed: Governance](#i192cd98e3e2c4282bc2a5d94702aad46_1824)] [added: Governance](#idc4b2caa96904285bf081581639af231_64)] | | | [removed: [26](#i192cd98e3e2c4282bc2a5d94702aad46_1824)] [added: [102](#idc4b2caa96904285bf081581639af231_64)] | | |

| [Item 11. Executive [removed: Compensation](#i192cd98e3e2c4282bc2a5d94702aad46_1854)] [added: Compensation](#idc4b2caa96904285bf081581639af231_67)] | | | [removed: [28](#i192cd98e3e2c4282bc2a5d94702aad46_1854)] [added: [104](#idc4b2caa96904285bf081581639af231_67)] | | |

| [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#i192cd98e3e2c4282bc2a5d94702aad46_1861)] [added: Matters](#idc4b2caa96904285bf081581639af231_70)] | | | [removed: [28](#i192cd98e3e2c4282bc2a5d94702aad46_1861)] [added: [104](#idc4b2caa96904285bf081581639af231_70)] | | |

| [Item 13. Certain Relationships and Related Transactions, and Director [removed: Independence](#i192cd98e3e2c4282bc2a5d94702aad46_1870)] [added: Independence](#idc4b2caa96904285bf081581639af231_73)] | | | [removed: [28](#i192cd98e3e2c4282bc2a5d94702aad46_1870)] [added: [104](#idc4b2caa96904285bf081581639af231_73)] | | |

| [Item 14. Principal Accounting Fees and [removed: Services](#i192cd98e3e2c4282bc2a5d94702aad46_1877)] [added: Services](#idc4b2caa96904285bf081581639af231_76)] | | | [removed: [29](#i192cd98e3e2c4282bc2a5d94702aad46_1877)] [added: [105](#idc4b2caa96904285bf081581639af231_76)] | | |

| [Item 15. Exhibits and Financial Statement [removed: Schedule](#i192cd98e3e2c4282bc2a5d94702aad46_187)] [added: Schedule](#idc4b2caa96904285bf081581639af231_82)] | | | [removed: [30](#i192cd98e3e2c4282bc2a5d94702aad46_187)] [added: [106](#idc4b2caa96904285bf081581639af231_82)] | | |

| [Item 16. Form 10-K [removed: Summary](#i192cd98e3e2c4282bc2a5d94702aad46_1840)] [added: Summary](#idc4b2caa96904285bf081581639af231_85)] | | | [removed: [34](#i192cd98e3e2c4282bc2a5d94702aad46_1840)] [added: [110](#idc4b2caa96904285bf081581639af231_85)] | | |

Otis Worldwide [removed: Corporation] [added: Corporation's] 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.


(860) 674-3000

| 0.000% Notes due 2023 | | | OTIS/23 | | | New York Stock Exchange | | |

| 0.318% Notes due 2026 | | | OTIS/26 | | | New York Stock Exchange | | |

| 0.934% Notes due 2031 | | | OTIS/31 | | | New York Stock Exchange | | |

file such reports), and (2) has been subject to such filing requirements for the past 90 days.

The 2022 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.

Form 10-K

| [Item 6. \[Reserved\]](#idc4b2caa96904285bf081581639af231_40) | | | [28](#idc4b2caa96904285bf081581639af231_40) | | |

| [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#idc4b2caa96904285bf081581639af231_954) | | | [102](#idc4b2caa96904285bf081581639af231_954) | | |

| [SIGNATURES](#idc4b2caa96904285bf081581639af231_91) | | | [111](#idc4b2caa96904285bf081581639af231_91) | | |

| | | | | | |

OTIS WORLDWIDE CORPORATION

(860) 233-6847

Parts I, II and IV hereof incorporate by reference portions of the Otis Worldwide Corporation 2020 Annual Report to Shareholders.

Index to Annual Report on Form 10-K for

| [Item 6. Selected Financial Data](#i192cd98e3e2c4282bc2a5d94702aad46_181) | | | [25](#i192cd98e3e2c4282bc2a5d94702aad46_181) | | |

| [SIGNATURES](#i192cd98e3e2c4282bc2a5d94702aad46_2011) | | | [35](#i192cd98e3e2c4282bc2a5d94702aad46_2011) | | |

Annual Report on Form 10-K for

Whenever reference is made in this Form 10-K to specific sections of Otis Worldwide Corporation's 2020 Annual Report to Shareholders (2020 Annual Report), those sections are incorporated herein by reference and are included in Exhibit 13 to this Form 10-K.

We have a direct physical presence in approximately 80 countries with an overall property portfolio comprising approximately [added: 15 million square feet of space as of December 31, 2021, compared to approximately] 16 million square feet of [removed: space.][added: space as of December 31, 2020.]

We have approximately 2,300 facilities, [removed: over 90 percent] of which [removed: are leased and] approximately [removed: 47 percent, 38 percent] [added: 50%, 37%] and [removed: 15 percent] [added: 13%] of which are located in EMEA, Asia [removed: Pacific] and the Americas, respectively.

Our fixed assets as of December 31, [removed: 2020] [added: 2021] include manufacturing facilities and non-manufacturing facilities, such as warehouses, and a substantial quantity of machinery and equipment, most of which are general purpose machinery and equipment using special jigs, tools and fixtures and in many instances having automatic control features and special adaptations.

The facilities, warehouses, machinery and equipment in use as of December 31, [removed: 2020] [added: 2021] are substantially in good operating condition.

Not applicable.

None.

[Table of](#i192cd98e3e2c4282bc2a5d94702aad46_7) [Contents](#i192cd98e3e2c4282bc2a5d94702aad46_7)

There were approximately [removed: 26,400] [added: 22,100] registered shareholders at January [removed: 31, 2021.][added: 21, 2022.]

The information required by Item 5 with respect to securities authorized for issuance under equity compensation plans is incorporated by reference to Part III, Item 12 [removed: of] [added: in] this Form 10-K.

Under this program, shares may be purchased on the open market, in privately negotiated transactions, [removed: or] under accelerated share repurchase programs [added: or] under plans complying with rules 10b5-1 and 10b-18 under the Exchange Act.

Stock Performance Graph

The following table and graph illustrate the total return from April 3, 2020 (date of Separation) through December 31, 2021, for (1) our Common Stock, (2) the Standard and Poor's ("S&P") 500 Index, and (3) the S&P 500 Industrial Sector Index.

The graph and table assume that $100.00 was invested on April 3, 2020 in each of our Common Stock, the S&P 500 Index and the S&P 500 Industrial Select Sector Index, and that any dividends were reinvested.

The comparison reflected in the graph and the table are not intended to forecast the future performance of our Common Stock and may not be indicative of our future performance.

Comparison of Cumulative Total Return - Table

| | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | April 3, 2020 | | | June 30, 2020 | | | | | | December 31, 2020 | | | June 30, 2021 | | | December 31, 2021 | | |

| Otis | | | $ | 100 | | $ | 121 | | | | | $ | 144 | | $ | 176 | | $ | 188 | |

| S&P 500 Index | | | 100 | | | 125 | | | | | | 153 | | | 176 | | | 197 | | |

| S&P 500 Industrial Sector Index | | | 100 | | | 122 | | | | | | 158 | | | 186 | | | 193 | | |

Comparison of Cumulative Total Return - Graph


The following table provides information about our purchases during the quarter ended December 31, 2021 of equity securities that are registered by us pursuant to Section 12 of the Exchange Act.

| | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| 2021 | | | | | | Total Number of Shares Purchased (thousands) | | | | | | Average Price Paid per Share (1) | | | | | | Total Number of Shares Purchased as Part of a Publicly Announced Program (thousands) | | | | | | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (dollars in millions) | | |

| October 1 - October 31 | | | | | | — | | | | | | $ | — | | | | | — | | | | | | $ | 275 | |

| November 1 - November 30 | | | | | | — | | | | | | — | | | | | | — | | | | | | $ | 275 | |

| December 1 - December 31 | | | | | | — | | | | | | — | | | | | | — | | | | | | $ | 275 | |

| Total | | | | | | — | | | | | | $ | — | | | | | — | | | | | | | | |

(1) Average price paid per share includes costs associated with the repurchases.

As of December 31, 2021, the maximum dollar value of shares that may yet be purchased under this current program was approximately $275 million.

As a result of the increased debt incurred to fund the Tender Offer, we have temporarily suspended our share repurchases as we focus on deleveraging.

The Performance Graph appearing in our 2020 Annual Report, filed as Exhibit 13 to this Form 10-K, contains the following data relating to our Common Stock: cumulative shareholder return.

We did not repurchase any shares under the program in 2020 as we focused on deleveraging following the Separation.

The Five-Year Summary appearing in our 2020 Annual Report, filed as Exhibit 13 to this Form 10-K, is incorporated herein by reference.

See "Notes to Consolidated Financial Statements" in our 2020 Annual Report for a description of the Separation from UTC and any accounting changes materially affecting the comparability of the information reflected in the Five-Year Summary.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND

FINANCIAL STATEMENT SCHEDULE

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | Page | | |

| [Management's Report on Internal Control Over Financial Reporting](#idc4b2caa96904285bf081581639af231_991) | | | | | | [53](#idc4b2caa96904285bf081581639af231_991) | | |

| [Report of Independent Registered Public Accounting Firm](#idc4b2caa96904285bf081581639af231_601) (PCAOB ID 238) | | | | | | [54](#idc4b2caa96904285bf081581639af231_601) | | |

| [Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019](#idc4b2caa96904285bf081581639af231_637) | | | | | | [56](#idc4b2caa96904285bf081581639af231_637) | | |

| [Consolidated Statements of Comprehensive Income for the years ended December 31, 2021, 2020 and 2019](#idc4b2caa96904285bf081581639af231_632) | | | | | | [57](#idc4b2caa96904285bf081581639af231_632) | | |

| [Consolidated Balance Sheets as of December 31, 2021 and 2020](#idc4b2caa96904285bf081581639af231_627) | | | | | | [58](#idc4b2caa96904285bf081581639af231_627) | | |

| [Consolidated Statements of Changes in Equity for the years ended December 31, 2021, 2020 and 2019](#idc4b2caa96904285bf081581639af231_622) | | | | | | [59](#idc4b2caa96904285bf081581639af231_622) | | |

| [Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020 and 2019](#idc4b2caa96904285bf081581639af231_671) | | | | | | [60](#idc4b2caa96904285bf081581639af231_671) | | |

| [Notes to Consolidated Financial Statements](#idc4b2caa96904285bf081581639af231_681) | | | | | | [61](#idc4b2caa96904285bf081581639af231_681) | | |

| [Financial Statement Schedule - Schedule II — Valuation and Qualifying Accounts for the years ended December 31, 2021, 2020 and 2019](#idc4b2caa96904285bf081581639af231_97) | | | | | | [101](#idc4b2caa96904285bf081581639af231_97) | | |

(All other schedules are not required and have been omitted)

Management's Report on Internal Control over Financial Reporting

The management of Otis is responsible for establishing and maintaining adequate internal control over financial reporting.

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States of America.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Management has assessed the effectiveness of Otis' internal control over financial reporting as of December 31, 2021.

In making its assessment, management has utilized the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in *Internal Control - Integrated Framework* (2013).

Management concluded that based on its assessment, Otis' internal control over financial reporting was effective as of December 31, 2021.

The effectiveness of Otis' internal control over financial reporting, as of December 31, 2021, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which is included herein.

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| OTIS WORLDWIDE CORPORATION (Registrant) | | | | | |

| | | | | | |

| by: | | | /s/ JUDITH F. MARKS | | |

| | | | Judith F. Marks | | |

| | | | Chair, President and Chief Executive Officer | | |

| | | | | | |

| by: | | | /s/ RAHUL GHAI | | |

| | | | Rahul Ghai | | |

| | | | Executive Vice President and Chief Financial Officer | | |

| | | | | | |

| | | | | | |

| by: | | | /s/ MICHAEL P. RYAN | | |

| | | | Michael P. Ryan | | |

| | | | Vice President and Chief Accounting Officer | | |

| | | | | | |

The 2020 and 2019 Consolidated Balance Sheets, and other consolidated financial statements for the years ended 2020, 2019 and 2018, together with the report thereon of PricewaterhouseCoopers LLP dated February 5, 2021 in our 2020 Annual Report are incorporated herein by reference.

The 2020 and 2019 unaudited Selected Quarterly Financial Data appearing in our 2020 Annual Report is incorporated herein by reference.

[Table of](#i192cd98e3e2c4282bc2a5d94702aad46_7) [Contents](#i192cd98e3e2c4282bc2a5d94702aad46_7)

As required by Rule 13a-15(e) under the Exchange Act, we carried out an evaluation under the supervision and with the participation of our management, including the President and Chief Executive Officer ("CEO"), the Executive Vice President and Chief Financial Officer ("CFO") and the Vice President and Chief Accounting Officer ("CAO"), of the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, [removed: 2020.][added: 2021.]

Based upon our evaluation, our CEO, our CFO and our CAO have concluded that, as of December 31, [removed: 2020,] [added: 2021,] our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our CEO, our CFO and our CAO, as appropriate, to allow timely decisions regarding required disclosure.

[removed: Our management has assessed the effectiveness of our internal control] [added: Management Report on Internal Control] over [removed: financial reporting as of December 31, 2020.][added: Financial Reporting]

Evaluation of Disclosure Controls and Procedures

The information required by Item 9A relating to Management's Annual Report on Internal Control Over Financial Reporting and Attestation Report of the Registered Public Accounting Firm is found in Item 8.

Financial Statements and Supplementary Data of this Form 10-K and incorporated herein by reference.

Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting during the quarter ended December 31, 2021, that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting.

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with accounting principles generally accepted in the U.S. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

In making its assessment, management has utilized the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in *Internal Control - Integrated Framework* (2013).

Our management has concluded that based on its assessment, our internal control over financial reporting was effective as of December 31, 2020.

The effectiveness of our internal control over financial reporting as of December 31, 2020 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in its report which appears in our 2020 Annual Report.

PART III

Not Applicable.

PART III

The information required by Item 10 with respect to directors, the Audit Committee of the Board of Directors and audit committee financial experts is incorporated herein by reference to the section of our Proxy Statement for the [removed: 2021] [added: 2022] Annual Meeting of Shareholders titled "Corporate governance" (under the subheadings "Proposal 1: Election of directors", "Our [removed: board nominees", and "Our] [added: Board] leadership [added: structure", "Board committees"] and [added: "Our] board [removed: structure" (including under the subheading "Board committees")).][added: nominees").]

| Name | | | | | | Position | | | | | | Other Business Experience Since [removed: 1/1/2016] [added: 1/1/2017] | | | | | | Age as of [removed: 2/5/2021] [added: 2/4/2022] | | |

| Bernardo Calleja Fernandez | | | | | | President, Otis EMEA (since November 2020) | | | | | | President of Otis South Europe & Africa, Otis; President, Otis South Europe & Turkey, Otis | | | | | | [removed: 58] [added: 59] | | |

| James F. Cramer | | | | | | President, Otis Americas (since June 2020) | | | | | | Regional Vice President, U.S. Western Region, Otis | | | | | | [removed: 56] [added: 57] | | |

| Rahul Ghai | | | | | | Executive Vice President and Chief Financial Officer (since April 2020) | | | | | | Vice President and Chief Financial Officer, Otis; Senior Vice President and Chief Financial Officer, Harris Corporation | | | | | | [removed: 49] [added: 50] | | |

| Nora E. LaFreniere | | | | | | Executive Vice [removed: President, Chief] [added: President and] General Counsel [removed: & Corporate Secretary] (since [removed: April 2020)] [added: July 2021)] | | | | | | [added: Executive] Vice [removed: President] [added: President, Chief General Counsel] and [added: Corporate Secretary, Vice President,] General Counsel, Otis | | | | | | [removed: 49] [added: 50] | | |

| Judith F. Marks | | | | | | [added: Chair,] President and Chief Executive Officer (since [removed: April 2020)] [added: February 2022)] | | | | | | [added: President and Chief Executive Officer;] President, Otis; Chief Executive Officer, Siemens USA and Dresser-Rand (a Siemens company); Executive Vice President, New Equipment Solutions, Dresser-Rand | | | | | | [removed: 57] [added: 58] | | |

| Stephane de Montlivault | | | | | | President, Otis Asia Pacific (since April 2020) | | | | | | President, Otis Asia Pacific; President, Otis Northeast Asia, Otis President, Northeast Asia and President of Nippon Otis Elevator Company | | | | | | [removed: 61] [added: 62] | | |

| Michael P. Ryan | | | | | | Vice President and Chief Accounting Officer (since April 2020) | | | | | | Vice President and Assistant Controller, UTC; and Executive Director, Corporate Accounting and Controls, UTC | | | | | | [removed: 51] [added: 52] | | |

| Peiming Zheng (Perry) | | | | | | President, Otis China [removed: (April 2020)] [added: and Chief Customer Product Officer (since December 2021)] | | | | | | President, Otis China; President, Business & Industrial Systems China, Otis | | | | | | [removed: 53] [added: 54] | | |

Information concerning Section 16(a) compliance is incorporated herein by reference to the section of our Proxy Statement for the [removed: 2021] [added: 2022] Annual Meeting of Shareholders titled "Other important information" under the subheading "Delinquent section 16(a) reports." We have adopted a code of ethics, the Otis Absolutes, that applies to all our directors, officers, employees and representatives.

[added: Our Corporate Governance Guidelines and] the charters of our Board of Directors’ Audit Committee, Compensation Committee and Nominations and Governance Committee are available on our website at http://www.otis.com/Who-We-Are/Corporate-Governance/Pages/default.aspx.

| Abbe Luersman | | | | | | Executive Vice President and Chief People Officer (since July 2021) | | | | | | Chief Human Resource Officer, Ahold Delhaize | | | | | | 54 | | |

[Table of](#i192cd98e3e2c4282bc2a5d94702aad46_7) [Contents](#i192cd98e3e2c4282bc2a5d94702aad46_7)

| Laurie P. Havanec* | | | | | | Executive Vice President and Chief People Officer (since April 2020) | | | | | | Corporate Vice President, Talent, UTC; Chief Human Resources Officer, Institution Businesses, Aetna, Inc. | | | | | | 60 | | |

| Christopher J. Kearney | | | | | | Executive Chairman (since April 2020) | | | | | | Non-Executive Chairman, SPX FLOW, Inc. | | | | | | 65 | | |

* As previously disclosed, Ms. Havanec provided the Company with notice of her intent to leave the Company on February 5, 2021.

Our Corporate Governance Guidelines and

The information required by Item 11 is incorporated herein by reference to the sections of our Proxy Statement for the [removed: 2021] [added: 2022] Annual Meeting of Shareholders titled "Executive [removed: compensation,"] [added: compensation",] "Compensation of directors" and "Report of the compensation [removed: committee."][added: committee".]

The information relating to security ownership of certain beneficial owners and management is incorporated herein by reference to the section of our Proxy Statement for the [removed: 2021] [added: 2022] Annual Meeting of Shareholders titled "Other important information" under the subheading [removed: "Share] [added: "Stock] ownership" (“Beneficial stock ownership of directors and executive officers" and [removed: certain] [added: "Certain] beneficial owners”).

The following table provides information as of December 31, [removed: 2020] [added: 2021] concerning Common Stock issuable under Otis’ equity compensation plans.

| Plan category | | | | | | [removed: | | |] Number of securities to be issued upon exercise of outstanding options, warrants and [removed: rights | | |] [added: rights (a)] | | | | | | | | | Weighted-average exercise price of outstanding options, warrants and [removed: rights] [added: rights (b)] | | | | | | | | | | | | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column [removed: (a)] [added: (a) (c)] | | | | | | | | |

| Equity compensation plans [added: not] approved by shareholders | | | | | | [removed: | | | 3,825,504 | | |] [added: \-] | | | [removed: (1)] | | | | | | [removed: $60.41] [added: \-] | | | | | | | | | | | | [removed: 27,938,146] [added: \-] | | | | | | [removed: (2)] | | |

| Equity compensation plans [removed: not] approved by shareholders | | | | | | [removed: | | | \- | | |] [added: 5,221,275] | | | | | | [added: (1)] | | | [removed: \-] [added: $52.97] | | | | | | | | | | | | [removed: \-] [added: 25,645,407] | | | | | | [added: (2)] | | |

(1) Consists of the following issuable shares of Common Stock awarded under the Otis Worldwide Corporation 2020 Long-Term Incentive Plan ("LTIP"): (i) shares of Common Stock issuable upon the exercise of outstanding non-qualified stock options; (ii) shares of Common Stock issuable upon the exercise of outstanding Stock Appreciation Rights ("SARs"); (iii) shares of Common Stock issuable pursuant to outstanding restricted stock unit and performance share unit awards, assuming performance at the target level (up to an additional [removed: 9,391] [added: 330,204] shares of Common Stock could be issued if performance goals are achieved above target); and (iv) shares of Common Stock issuable upon the settlement of outstanding deferred stock units and restricted stock units under the Otis Worldwide Corporation Board of Directors Stock Unit Plan.

For purposes of determining the total number of shares to be issued in respect of outstanding SARs, we have used the New York Stock Exchange ("NYSE") closing price for a share of Common Stock on December 31, [removed: 2020] [added: 2021] of [removed: $67.55.][added: $87.07.]

(2) Represents the maximum number of shares of Common Stock available to be awarded under the LTIP as of December 31, [removed: 2020.][added: 2021.]

Performance share [added: units, deferred stock] units and restricted stock units ("Full Share Awards") will result in a reduction in the number of shares of Common Stock available for delivery under the LTIP in an amount equal to twice the number of shares to which the award corresponds under the terms of the LTIP.

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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The information required by Item 13 is incorporated herein by reference to the sections of our Proxy Statement for the [removed: 2021] [added: 2022] Annual Meeting of Shareholders titled "Corporate governance" under the subheading "Our board nominees" (including under the subheading "Director independence") and "Other important information" (under the subheading "Transactions with related persons").

[Table of](#i192cd98e3e2c4282bc2a5d94702aad46_7) [Contents](#i192cd98e3e2c4282bc2a5d94702aad46_7)

The information required by Item 14 is incorporated by reference to the section of our Proxy Statement for the [removed: 2021] [added: 2022] Annual Meeting of Shareholders titled [removed: "Appoint] [added: "Proposal 3: Appoint] an independent auditor for [removed: 2021,"] [added: 2022",] including the information provided in that section with regard to "Audit [removed: Fees,"] [added: Fees",] "Audit-Related [removed: Fees,"] [added: Fees",] "Tax Fees" and "All Other [removed: Fees."][added: Fees".]

[Table of](#i192cd98e3e2c4282bc2a5d94702aad46_7) [Contents](#i192cd98e3e2c4282bc2a5d94702aad46_7)

All other schedules [removed: are] [added: have been] omitted because they are not [added: required, are not] applicable or the required information is shown in the financial statements or the notes thereto.

[removed: | SCHEDULE] [added: - Schedule] II — Valuation and Qualifying Accounts [removed: | | | [II](#i192cd98e3e2c4282bc2a5d94702aad46_1895) | | |]

| [removed: 4.3] [added: 10.18] | | | | | | [removed: [Registration Rights Agreement, dated February 27, 2020, by and among Otis] [added: [Otis] Worldwide [removed: Corporation, United Technologies] Corporation [removed: and BofA Securities, Inc., Citigroup Global Markets Inc.] [added: Amended] and [removed: Goldman Sachs & Co. LLC,] [added: Restated Savings Restoration Plan,] incorporated by reference to Exhibit [removed: 4.3] [added: 10.15] to Otis’ Amendment No. 1 to Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on March 11, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120005505/nt10003666x13_ex4-3.htm)] [added: 2020;](https://www.sec.gov/Archives/edgar/data/1781335/000114036120005505/nt10003666x13_ex10-15.htm)] | | |

| [removed: 4.4] [added: 4.6] | | | | | | [Description of [removed: Securities*](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit442020-12x3110xk.htm)] [added: Securities*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit462021-12x3110xk.htm)] | | |

| 10.7 | | | | | | [Otis Worldwide Corporation Executive Annual Bonus Plan incorporated by reference to Exhibit 10.7 of Otis’ Current Report on Form 8-K (Commission file number 001-39221) filed with the SEC on April 3, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120007885/nc10010458x4_ex10-7.htm)] [added: 2020;](https://www.sec.gov/Archives/edgar/data/1781335/000114036120007885/nc10010458x4_ex10-7.htm)] | | |

| 10.10 | | | | | | [Otis Worldwide Corporation Board of Directors Deferred Stock Unit Plan, incorporated by reference to Exhibit 10.10 of Otis’ Current Report on Form 8-K (Commission file number 001-39221) filed with the SEC on April 3, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120007885/nc10010458x4_ex10-10.htm)] [added: 2020;](https://www.sec.gov/Archives/edgar/data/1781335/000114036120007885/nc10010458x4_ex10-10.htm)] | | |

| 10.14 | | | | | | [Schedule of Terms for Stock Appreciation Right Awards granted under the Otis Worldwide Corporation 2020 Long-Term Incentive Plan, incorporated by reference to Exhibit 10.10 to Otis’ Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on February 7, [removed: 2020. , incorporated by reference to Exhibit 10.10 to Otis’ Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on February 7,] 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-10.htm) | | |

| 10.17 | | | | | | [removed: [Schedule of Terms for Non-Qualified Stock Option Awards granted under the Otis] [added: [Otis] Worldwide Corporation [removed: 2020 Long-Term Incentive] [added: Deferred Compensation] Plan, incorporated by reference to Exhibit [removed: 10.13] [added: 10.14] to Otis’ Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on February 7, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-13.htm)] [added: 2020;](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-14.htm)] | | |

| [removed: 10.18] [added: 10.19] | | | | | | [Otis Worldwide Corporation [removed: Deferred Compensation] [added: Company Automatic Contribution Excess] Plan, incorporated by reference to Exhibit [removed: 10.14] [added: 10.16] to Otis’ Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on February 7, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-14.htm)] [added: 2020;](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-16.htm)] | | |

| [removed: 10.19] | | | | | | [removed: [Otis] [added: [Amendment No. 1 to Otis] Worldwide Corporation Amended and Restated Savings Restoration Plan, incorporated by reference to Exhibit [removed: 10.15 to Otis’ Amendment No. 1] [added: 10.1] to [removed: Registration Statement] [added: Otis' Quarterly Report] on Form [removed: 10] [added: 10-Q for the quarter ended March 31, 2021] (Commission file number 001-39221) filed with the SEC on [removed: March 11, 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-15.htm)] [added: April 28, 2021;](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000034/exhibit1012021-03x3110xq.htm)] | | |

| 10.20 | | | | | | [Otis Worldwide Corporation [removed: Company Automatic Contribution Excess] [added: LTIP Performance Share Unit Deferral] Plan, incorporated by reference to Exhibit [removed: 10.16] [added: 10.17] to Otis’ Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on February 7, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-16.htm)] [added: 2020;](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-17.htm)] | | |

| 10.21 | | | | | | [removed: [Otis Worldwide] [added: [Legacy United Technologies] Corporation [removed: LTIP Performance Share Unit Deferral Plan,] [added: Executive Leadership Group Agreements,] incorporated by reference to Exhibit [removed: 10.17] [added: 10.19] to Otis’ Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on February 7, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-17.htm)] [added: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-19.htm)] | | |

| 10.22 | | | | | | [Legacy [added: Schedule of Terms for] United Technologies Corporation Executive Leadership Group [removed: Agreements,] [added: Restricted Stock Unit Retention Awards,] incorporated by reference to Exhibit [removed: 10.19] [added: 10.20] to Otis’ Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on February 7, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-19.htm)] [added: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-20.htm)] | | |

| 10.23 | | | | | | [removed: [Legacy Schedule of Terms for United Technologies Corporation Executive Leadership Group Restricted Stock Unit Retention Awards,] [added: [Offer Letter with Rahul Ghai, dated June 27, 2019,] incorporated by reference to Exhibit [removed: 10.20] [added: 10.24] to Otis’ Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on February 7, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-20.htm)] [added: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-24.htm)] | | |

| 10.24 | | | | | | [removed: [Offer Letter] [added: [Letter of Assignment] with [removed: Rahul Ghai,] [added: Stephane de Montlivault,] dated [removed: June 27,] [added: December 18,] 2019, incorporated by reference to Exhibit [removed: 10.24] [added: 10.25] to Otis’ Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on February 7, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-24.htm)] [added: 2020;](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-25.htm)] | | |

| 10.25 | | | | | | [Letter of [removed: Assignment] [added: Appointment/Employment] with Stephane de Montlivault, dated December 18, 2019, incorporated by reference to Exhibit [removed: 10.25] [added: 10.26] to Otis’ Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on February 7, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-25.htm)] [added: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-26.htm)] | | |

| 10.26 | | | | | | [Letter [removed: of Appointment/Employment] [added: Agreement] with [removed: Stephane de Montlivault,] [added: Judith F. Marks regarding LTIP award amendment,] dated [removed: December 18, 2019,] [added: February 3, 2020,] incorporated by reference to Exhibit [removed: 10.26] [added: 10.29] to Otis’ Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on February 7, [removed: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-26.htm)] [added: 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-29.htm)] | | |

| [removed: 10.27] [added: 10.28] | | | | | | [removed: [Offer Letter with Mark Eubanks, dated February 27, 2019,] [added: [Otis Worldwide Corporation Executive Leadership Group Severance Plan,] incorporated by reference to Exhibit [removed: 10.27 to] [added: 10.1 of] Otis’ [removed: Registration Statement] [added: Current Report] on Form [removed: 10] [added: 8-K] (Commission file number 001-39221) filed with the SEC on [removed: February 7, 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-27.htm)] [added: September 18, 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120020899/brhc10015261_ex10-1.htm)] | | |

| [removed: 10.28] [added: 10.29] | | | | | | [Letter of Assignment [removed: with Mark Eubanks, dated October 27, 2019,] [added: for Peiming (Perry) Zheng, effective January 1, 2021](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit10332020-12x3110xk.htm)[,] incorporated by reference to Exhibit [removed: 10.28 to Otis’ Registration Statement] [added: 10.33 of Otis' Annual Report] on Form [removed: 10] [added: 10-K for the year ended December 31, 2020] (Commission file number 001-39221) [removed: filed with] [added: filed](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit10332020-12x3110xk.htm) [with] the SEC on February [removed: 7, 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-28.htm)] [added: 5, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit10332020-12x3110xk.htm)] | | |

| [removed: 10.29] [added: 10.31] | | | | | | [removed: [Letter Agreement with Judith F. Marks regarding LTIP award amendment,] [added: [Revolving Credit Agreement,] dated February [removed: 3,] [added: 10,] 2020, [added: among Otis Worldwide Corporation, the subsidiary borrowers party thereto, the lenders and other parties party thereto and JPMorgan Chase Bank, N.A.,] incorporated by reference to Exhibit [removed: 10.29] [added: 10.30] to Otis’ [added: Amendment No. 1 to] Registration Statement on Form 10 (Commission file number 001-39221) filed with the SEC on [removed: February 7, 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120002547/nt10003666x11_ex10-29.htm)] [added: March 11, 2020;](https://www.sec.gov/Archives/edgar/data/1781335/000114036120005505/nt10003666x13_ex10-30.htm)] | | |

| [removed: 10.30] | | | | | | [removed: [Annual Compensation Distribution Election Form for the Otis] [added: [Otis] Worldwide Corporation Board of Directors Deferred Stock Unit Plan [removed: (referenced in Exhibit 10.10 above),] [added: (Amended and Restated effective as of February 4, 2021),] incorporated by reference to Exhibit [removed: 10.5] [added: 10.4] to [removed: Otis’] [added: Otis'] Quarterly Report on Form 10-Q for the quarter ended June 30, [removed: 2020] [added: 2021] (Commission file number 001-39221) filed with the SEC on July [removed: 31, 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000178133520000016/exhibit1052020-06x3010xq.htm)] [added: 28, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000051/exhibit1042021-06x3010xq.htm)] | | |

| [removed: 10.31] | | | | | | [removed: [Executive Separation Agreement made as of July 30, 2020,] [added: [Amendment No. 1 to Otis Worldwide Corporation Executive Annual Bonus Plan,] incorporated by reference to Exhibit [removed: 10.6] [added: 10.3] to Otis' Quarterly Report on Form 10-Q for the quarter ended June 30, [removed: 2020] [added: 2021] (Commission file number 001-39221) filed with the SEC on July [removed: 31, 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000178133520000016/exhibit1062020-06x3010q.htm)] [added: 28, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000051/exhibit1032021-06x3010xq.htm)] | | |

| [removed: 10.32] [added: 10.40] | | | | | | [removed: [Otis] [added: [Company Guarantee Agreement, dated September 22, 2021, between Otis] Worldwide Corporation [removed: Executive Leadership Group Severance Plan,] [added: and Morgan Stanley Senior Funding, Inc., as administrative agent,] incorporated by reference to Exhibit [removed: 10.1] [added: 10.2] of Otis’ Current Report on Form 8-K (Commission file number 001-39221) filed with the SEC on September [removed: 18, 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120020899/brhc10015261_ex10-1.htm)] [added: 23, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000114036121032145/ny20000774x1_ex10-2.htm)] | | |

| [removed: 10.34] [added: 10.30] | | | | | | [Employment Contract (Foreign National or Hong Kong, Macao or Taiwan Resident) for Peiming (Perry) Zheng, effective January 1, [removed: 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit10342020-12x3110xk.htm)[*](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit10342020-12x3110xk.htm)] [added: 2021](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit10342020-12x3110xk.htm)[, incorporated by reference to Exhibit 10.3](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit10342020-12x3110xk.htm)[4](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit10342020-12x3110xk.htm) [of Otis' Annual Report on Form 10-K for the year ended December 31, 2020 (Commission file number 001-39221) filed with the SEC on February 5, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit10342020-12x3110xk.htm)] | | |

| [removed: 10.35] | | | | | | [removed: [Revolving] [added: [First Amendment dated as of September 4, 2020, to Revolving] Credit Agreement, dated February 10, 2020, among Otis Worldwide Corporation, the subsidiary borrowers party thereto, the lenders and other parties party thereto and JPMorgan Chase Bank, N.A., incorporated by reference to Exhibit [removed: 10.30 to Otis’ Amendment No. 1] [added: 10.1] to [removed: Registration Statement] [added: Otis' Quarterly Report] on Form [removed: 10] [added: 10-Q for the quarter ended September 30, 2020] (Commission file number 001-39221) filed with the SEC on [removed: March 11, 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000114036120005505/nt10003666x13_ex10-30.htm)] [added: October 28, 2020;](https://www.sec.gov/Archives/edgar/data/1781335/000178133520000029/exhibit1012020-09x3010.htm)] | | |

| [removed: 10.36] | | | | | | [removed: [First Amendment dated as] [added: [Suspension] of [removed: September 4, 2020,] [added: Rights Agreement] to [added: the] Revolving Credit Agreement, [removed: dated February 10, 2020, among Otis Worldwide Corporation, the subsidiary borrowers party thereto, the lenders and other parties party thereto and JPMorgan Chase Bank, N.A. (referenced in Exhibit 10.33 above),] incorporated by reference to Exhibit [removed: 10.1] [added: 10.4] to Otis' Quarterly Report on Form 10-Q for the quarter ended September 30, [removed: 2020] [added: 2021] (Commission file number 001-39221) filed with the SEC on October [removed: 28, 2020.](https://www.sec.gov/Archives/edgar/data/1781335/000178133520000029/exhibit1012020-09x3010.htm)] [added: 26, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000062/exhibit1042021-09x3010xq.htm)] | | |

| 21 | | | | | | [Subsidiaries of the [removed: Registrant.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit212020-12x3110xk.htm)] [added: Registrant.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit212021-12x3110xk.htm)] | | |

| 23 | | | | | | [Consent of PricewaterhouseCoopers [removed: LLP.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit232020-12x3110xk.htm)] [added: LLP.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit232021-12x3110xk.htm)] | | |

| 24 | | | | | | [Powers of Attorney of Jeffrey H. Black, Kathy Hopinkah Hannan, Shailesh G. Jejurikar, Christopher J. Kearney, Judith F. Marks, Harold W. McGraw III, Margaret M.V. Preston, Shelley Stewart, Jr. and John H. [removed: Walker.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit242020-12x3110xk.htm)] [added: Walker.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit242021-12x3110xk.htm)] | | |

| 31.1 | | | | | | [Rule 13a-14(a)/15d-14(a) [removed: Certification.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit3112020-12x3110xk.htm)] [added: Certification.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit3112021-12x3110xk.htm)] | | |

| 31.2 | | | | | | [removed: [R](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit3122020-12x3110xk.htm)[ule] [added: [Rule] 13a-14(a)/15d-14(a) [removed: Certification.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit3122020-12x3110xk.htm)] [added: Certification.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit3122021-12x3110xk.htm)] | | |

| 31.3 | | | | | | [Rule 13a-14(a)/15d-14(a) [removed: Certification.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit3132020-12x3110xk.htm)] [added: Certification.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit3132021-12x3110xk.htm)] | | |

| 32 | | | | | | [Section 1350 [removed: Certifications.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit322020-12x3110xk.htm)] [added: Certifications.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit322021-12x3110xk.htm)] | | |

Attached as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Operations for the three years ended December 31, [removed: 2020,] [added: 2021,] (ii) Consolidated Statements of Comprehensive Income for the three years ended December 31, [removed: 2020,] [added: 2021,] (iii) Consolidated Balance Sheets as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] (iv) Consolidated Statements of Cash Flows for the three years ended December 31, [removed: 2020,] [added: 2021,] (v) Consolidated Statements of Changes in Equity for the three years ended December 31, [removed: 2020,] [added: 2021,] (vi) Notes to Consolidated Financial Statements, and (vii) Financial Schedule of Valuation and Qualifying Accounts.

(a) The following documents are filed as part of this Form 10-K:

(1) Financial Statements.

The financial statements are set forth in Item 8.

"Financial Statements and Supplementary Data" in this Form 10-K.

(2) Financial Statement Schedules.

The following financial statement schedule is set forth in Item 8.

"Financial Statements and Supplementary Data" in this Form 10-K.

(3) Exhibits.

| 4.3 | | | | | | [Supplemental Indenture No. 2, dated as of March 11, 2021, between Otis Worldwide Corporation and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.1 to Otis’ Current Report on Form 8-K (Commission file number 001-39221) filed with the SEC on March 11, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000114036121008126/nt10020973x4_ex4-1.htm) | | |

| 4.4 | | | | | | [Indenture, dated as of November 12, 2021, among Otis Worldwide Corporation, Highland Holdings S.à r.l. and The Bank of New York Mellon Trust Company, N.A., as trustee., incorporated by reference to Exhibit 4.1 to Otis' Current Report on Form 8-K (Commission file number 001-39221) filed with the SEC on November 12, 2021.](https://www.sec.gov/Archives/edgar/data/0001781335/000114036121037676/ny20001079x6_ex4-1.htm) | | |

| 4.5 | | | | | | [Supplemental Indenture No. 1, dated as of November 12, 2021, among Otis Worldwide Corporation, Highland Holdings S.à r.l and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.2 of Otis’ Current Report on 8-K (Commission file number 001-39221) filed with the SEC on November 12, 2021).](https://www.sec.gov/Archives/edgar/data/0001781335/000114036121037676/ny20001079x6_ex4-2.htm) | | |

| | | | | | | [Amendment No. 1 to the Otis Worldwide Corporation Deferred Compensation Plan.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit10172021-12x3110xk.htm) | | |

| | | | | | | [Amendment No. 2 to the Otis Worldwide Corporation Amended and Restated Savings Restoration Plan.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit10182021-12x3110xk.htm) | | |

| | | | | | | [Amendment No. 1 to the Otis Worldwide Corporation Company Automatic Contribution Excess Plan.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit10192021-12x3110xk.htm) | | |

| | | | | | | [Amendment No. 1 to the Otis Worldwide Corporation LTIP Performance Share Unit Deferral Plan.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit10202021-12x3110xk.htm) | | |

| | | | | | | [Letter of Assignment Extension with Stephane de Montlivault dated October 1, 2021.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit10242021-12x3110xk.htm) | | |

| 10.27 | | | | | | [Summary of Compensation](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit10272021-12x3110xk.htm) [and Benefits for Non-Employee Director](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit10272021-12x3110xk.htm)[s.](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit10272021-12x3110xk.htm)[*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit10272021-12x3110xk.htm) | | |

| 10.32 | | | | | | [Employment Contract between Otis Elevator Worldwide SRL and Bernardo Calleja Fernández, dated January 29, 2021, incorporated by reference to Exhibit 10.2 to Otis' Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (Commission file number 001-39221) filed with the SEC on April 28, 2021;](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000034/exhibit1022021-03x3110xq.htm) | | |

| | | | | | | [Termination of Employment Contract between Otis Elevator Worldwide SRL and Bernardo Calleja Fernández, dated November 14, 2021.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit10322021-12x3110xk.htm) | | |

| 10.33 | | | | | | [Service Agreement between Zardoya Otis S.A and Bernardo Calleja Fernández, dated January 26, 2021, incorporated by reference to Exhibit 10.3 to Otis' Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (Commission file number 001-39221) filed with the SEC on April 28, 2021;](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000034/exhibit1032021-03x3110xq.htm) | | |

| | | | | | | [Amendment Agreement to the Service Agreement between Zardoya Otis S.A and Bernardo Calleja Fernández, dated February 23, 2021, incorporated by reference to Exhibit 10.4 to Otis' Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (Commission file number 001-39221) filed with the SEC on April 28, 2021;](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000034/exhibit1042021-03x3110xq.htm) | | |

| | | | | | | [Letter of Amendment to Service Agreement between Zardoya Otis S.A and Bernardo Calleja Fernández, dated May 19, 2021, incorporated by reference to Exhibit 10.2 to Otis' Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 (Commission file number 001-39221) filed with the SEC on July 28, 2021;](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000051/exhibit1022021-06x3010xq.htm) | | |

| 10.34 | | | | | | [Employment Contract between Otis International Sàrl and Bernardo Calleja Fernández, effective November 15, 2021.*](https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/exhibit10342021-12x3110xk.htm) | | |

| 10.35 | | | | | | [Schedule of Terms for Restricted Stock Unit Awards (February 5, 2021) granted under the Otis Worldwide Corporation 2020 Long-Term Incentive Plan, incorporated by reference to Exhibit 10.5 to Otis' Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (Commission file number 001-39221) filed with the SEC on April 28, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000034/exhibit1052021-03x3110xq.htm) | | |

| 10.36 | | | | | | [Schedule of Terms for Stock Appreciation Right Awards (February 5, 2021) granted under the Otis Worldwide Corporation 2020 Long-Term Incentive Plan, incorporated by reference to Exhibit 10.6 to Otis' Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (Commission file number 001-39221) filed with the SEC on April 28, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000034/exhibit1062021-03x3110xq.htm) | | |

| 10.37 | | | | | | [Schedule of Terms for Performance Share Unit Awards (February 5, 2021) granted under the Otis Worldwide Corporation 2020 Long-Term Incentive Plan, incorporated by reference to Exhibit 10.7 to Otis' Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (Commission file number 001-39221) filed with the SEC on April 28, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000034/exhibit1072021-03x3110xq.htm) | | |

| 10.38 | | | | | | [Form of Executive Award Statement under the Otis Worldwide Corporation 2020 Long-Term Incentive Plan, incorporated by reference to Exhibit 10.8 to Otis' Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (Commission file number 001-39221) filed with the SEC on April 28, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000034/exhibit1082021-03x3110xq.htm) | | |

| 10.39 | | | | | | [CNMV Guarantees Issuance Agreement, dated 22 September 2021, among Opal Spanish Holdings, S.A.U., Morgan Stanley Bank AG, as CNMV guarantee provider, Morgan Stanley Bank Senior Funding, Inc., as administrative agent, and the other financial institutions from time to time party thereto, incorporated by reference to Exhibit 10.1 of Otis’ Current Report on Form 8-K (Commission file number 001-39221) filed with the SEC on September 23, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000114036121032145/ny20000774x1_ex10-1.htm) | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Exhibit Number | | | | | | Exhibit Description | | |

| 10.41 | | | | | | [Bridge Loan Credit Agreement, dated September 22, 2021, among Opal Spanish Holdings, S.A.U., Otis Worldwide Corporation, the lenders from time to time party thereto and Morgan Stanley Senior Funding, Inc., as administrative agent, incorporated by reference to Exhibit 10.3 of Otis’ Current Report on Form 8-K (Commission file number 001-39221) filed with the SEC on September 23, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000114036121032145/ny20000774x1_ex10-3.htm) | | |

| 10.42 | | | | | | [Offer Letter between Otis Worldwide Corporation and Abbe L. Luersman, dated March 27, 2021, incorporated by reference to Exhibit 10.5 to Otis' Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 (Commission file number 001-39221) filed with the SEC on October 26, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000062/exhibit1052021-09x3010xq.htm) | | |

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(a) Financial Statements, Financial Statement Schedules and Exhibits

1.Financial Statements (incorporated herein by reference to the 2020 Annual Report):

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| | | | Page Number in Annual Report | | |

| Report of Independent Registered Public Accounting Firm | | | 21 | | |

| Consolidated Statements of Operations for the three years ended December 31, 2020 | | | 23 | | |

| Consolidated Statements of Comprehensive Income for the three years ended December 31, 2020 | | | 24 | | |

| Consolidated Balance Sheets as of December 31, 2020 and 2019 | | | 25 | | |

| Consolidated Statements of Changes in Equity for the three years ended December 31, 2020 | | | 26 | | |

| Consolidated Statements of Cash Flows for the three years ended December 31, 2020 | | | 27 | | |

| Notes to Consolidated Financial Statements | | | 28 | | |

| Selected Quarterly Financial Data (Unaudited) | | | 66 | | |

2.Financial Statement Schedule for the three years ended December 31, 2020:

| | | | Page Number in Form 10-K | | |

| Report of Independent Registered Public Accounting Firm on Financial Statement Schedule | | | [I](#i192cd98e3e2c4282bc2a5d94702aad46_1890) | | |

3.Exhibits:

[Table of](#i192cd98e3e2c4282bc2a5d94702aad46_7) [Contents](#i192cd98e3e2c4282bc2a5d94702aad46_7)

| 10.33 | | | | | | [Letter of Assignment for Peiming (Perry) Zheng, effective January 1, 2021.](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit10332020-12x3110xk.htm)[*](https://www.sec.gov/Archives/edgar/data/1781335/000178133521000023/exhibit10332020-12x3110xk.htm) | | |

| 13 | | | | | | Excerpt from Otis' 2020 Annual Report to Shareholders for the year ended December 31, 2020 (following Schedule II in this Form 10-K). | | |

| Dated: | | | February [removed: 5, 2021] [added: 4, 2022] | | | by: | | | /s/ RAHUL GHAI | | |

| Dated: | | | February [removed: 5, 2021] [added: 4, 2022] | | | by: | | | /s/ MICHAEL P. RYAN | | |

| /s/ JUDITH F. MARKS | | | Director, [added: Chair,] President and Chief Executive Officer | | | February [removed: 5, 2021] [added: 4, 2022] | | |

| /s/ RAHUL GHAI | | | Executive Vice President and Chief Financial Officer | | | February [removed: 5, 2021] [added: 4, 2022] | | |

| /s/ MICHAEL P. RYAN | | | Vice President and Chief Accounting Officer | | | February [removed: 5, 2021] [added: 4, 2022] | | |

| Executive Vice President [removed: & Chief] [added: and] General Counsel, as Attorney-in-fact | | | | | | | | |

| Date: February [removed: 5, 2021] [added: 4, 2022] | | | | | | | | |

Not applicable.

None.

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Report of Independent Registered Public Accounting Firm on

Financial Statement Schedule

To the Board of Directors and Shareholders of Otis Worldwide Corporation

Our audits of the consolidated financial statements referred to in our report dated February 5, 2021 appearing in the 2020 Annual Report to Shareholders of Otis Worldwide Corporation (which report and consolidated financial statements are incorporated by reference in this Annual Report on Form 10-K) also included an audit of the financial statement schedule listed in Item 15(a)(2) of this Form 10-K.

In our opinion, this financial statement schedule presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements.

/s/ PricewaterhouseCoopers LLP

Hartford, Connecticut

February 5, 2021

OTIS WORLDWIDE CORPORATION

SCHEDULE II - Valuation and Qualifying Accounts

Three years ended December 31, 2020

(Dollars in millions)

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| Allowance for Doubtful Accounts and Expected Credit Losses: | | | | | |

| Balance, December 31, 2017 | | | $ | 90 | |

| Provision charged to income | | | 10 | | |

| Doubtful accounts written off | | | (6) | | |

| Other | | | (10) | | |

| Balance, December 31, 2018 | | | 84 | | |

| Provision charged to income | | | 26 | | |

| Doubtful accounts written off | | | (19) | | |

| Other | | | (8) | | |

| Balance, December 31, 2019 | | | 83 | | |

| Impact of credit standard adoption | | | 28 | | |

| Current period provision for expected credit losses | | | 40 | | |

| Write-offs charged against the allowance for expected credit losses | | | (20) | | |

| Other | | | 30 | | |

| Balance, December 31, 2020 | | | $ | 161 | |

| Future Income Tax Benefits - Valuation Allowance | | | | | |

| Balance, December 31, 2017 | | | $ | 20 | |

| Additions charged to income tax expense | | | 15 | | |

| Reductions credited to income tax expense | | | (5) | | |

| Other adjustments | | | (1) | | |

| Balance, December 31, 2018 | | | 29 | | |

| Additions charged to income tax expense | | | 28 | | |

| Reductions credited to income tax expense | | | — | | |