Carrier Global (CARR) presents a deeply negative liquidation recovery posture as of March 31, 2026, consistent with the MFFAIS CLV of approximately -$18.1B. The balance sheet is dominated by intangible assets that carry zero recovery value under the liquidation lens: goodwill of $15.3B and finite-lived intangibles (net) of $6.0B together account for approximately $21.3B of the $37.2B total asset base, or roughly 57% of assets. After applying standard haircuts (cash at 100%, AR at ~92%, inventory at 60%, PP&E at ~60%), recoverable tangible asset value is materially insufficient to cover the face-value liability stack of $23.4B. Total debt stands at $12.2B ($1.7B current, $10.4B long-term), and the overall liability structure is further burdened by $3.7B accrued liabilities, $2.1B other long-term liabilities (which embed $195M asbestos noncurrent reserves and $181M environmental noncurrent reserves), $0.9B deferred revenue, and $0.4B operating lease liabilities. Against this, tangible asset recoveries are limited: cash $1.4B (100%), AR ~$2.8B (at 90-92%), inventory ~$1.5B (60% of $2.6B gross), PP&E ~$1.9B (60% of $3.1B net). The math does not close. Net tangible asset recoveries are approximately $7.6-8.0B versus $23.4B in face-value liabilities, yielding a deeply negative equity recovery before NCI. Quarter-over-quarter, total debt increased $325M (from $11.8B at Dec 31, 2025 to $12.2B), driven by $708M commercial paper outstanding at period end versus zero at year-end. Cash declined $184M. The AFFF litigation settlement liability ($615M cash payable over five years, first recognized in 2024) remains on balance sheet and is not separately tagged in XBRL as of this filing period; it is disclosed in MD&A and Note 18 as an existing accrual within other long-term liabilities. The Riello divestiture (expected ~$430M gross proceeds) had not closed as of March 31, 2026. Restructuring charges spiked to $108M in Q1 2026 versus $8M in Q1 2025, reflecting an acceleration of cost reduction initiatives; the restructuring reserve on balance is $159M. New HVAC antitrust class actions were filed in March 2026 with no quantified exposure; the filing does not tag any XBRL reserve associated with this litigation.
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