Delaware | 1-812 | 06-0570975 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit Number | Exhibit Description |
99 | Press release, dated April 23, 2013, issued by United Technologies Corporation. |
UNITED TECHNOLOGIES CORPORATION | ||
(Registrant) | ||
Date: April 23, 2013 | By: | /S/ GREGORY J. HAYES |
Gregory J. Hayes | ||
Senior Vice President and Chief Financial Officer |
Exhibit Number | Exhibit Description |
99 | Press release, dated April 23, 2013, issued by United Technologies Corporation. |
Quarter Ended March 31, | |||||||||
(Unaudited) | |||||||||
(Millions, except per share amounts) | 2013 | 2012 | |||||||
Net sales | $ | 14,399 | $ | 12,416 | |||||
Costs and Expenses: | |||||||||
Cost of products and services sold | 10,465 | 8,930 | |||||||
Research and development | 610 | 544 | |||||||
Selling, general and administrative | 1,627 | 1,529 | |||||||
Total Costs and Expenses | 12,702 | 11,003 | |||||||
Other income, net | 309 | 300 | |||||||
Operating profit | 2,006 | 1,713 | |||||||
Interest expense, net | 236 | 129 | |||||||
Income from continuing operations before income taxes | 1,770 | 1,584 | |||||||
Income tax expense | 418 | 320 | |||||||
Income from continuing operations | 1,352 | 1,264 | |||||||
Less: Non-controlling interest in subsidiaries' earnings from continuing operations | 82 | 75 | |||||||
Income from continuing operations attributable to common shareowners | 1,270 | 1,189 | |||||||
Discontinued operations: | |||||||||
Income from operations | 20 | 30 | |||||||
Loss on disposal | (15 | ) | (961 | ) | |||||
Income tax benefit (expense) | (9 | ) | 74 | ||||||
Loss from discontinued operations | (4 | ) | (857 | ) | |||||
Less: Non-controlling interest in subsidiaries' earnings from discontinued operations | — | 2 | |||||||
Loss from discontinued operations attributable to common shareowners | (4 | ) | (859 | ) | |||||
Net income attributable to common shareowners | $ | 1,266 | $ | 330 | |||||
Comprehensive income | $ | 908 | $ | 904 | |||||
Less: Comprehensive income attributable to non-controlling interests | 61 | 85 | |||||||
Comprehensive income attributable to common shareowners | $ | 847 | $ | 819 | |||||
Earnings (Loss) Per Share of Common Stock - Basic: | |||||||||
From continuing operations attributable to common shareowners | $ | 1.41 | $ | 1.33 | |||||
From discontinued operations attributable to common shareowners | — | (0.96 | ) | ||||||
Earnings (Loss) Per Share of Common Stock - Diluted: | |||||||||
From continuing operations attributable to common shareowners | $ | 1.39 | $ | 1.31 | |||||
From discontinued operations attributable to common shareowners | — | (0.95 | ) | ||||||
Weighted average number of shares outstanding: | |||||||||
Basic shares | 901 | 891 | |||||||
Diluted shares | 914 | 904 |
Quarter Ended March 31, | ||||||||
(Unaudited) | ||||||||
(Millions) | 2013 | 2012 | ||||||
Net Sales | ||||||||
Otis | $ | 2,814 | $ | 2,770 | ||||
UTC Climate, Controls & Security | 3,837 | 4,112 | ||||||
Pratt & Whitney | 3,402 | 3,052 | ||||||
UTC Aerospace Systems | 3,263 | 1,236 | ||||||
Sikorsky | 1,249 | 1,346 | ||||||
Segment Sales | 14,565 | 12,516 | ||||||
Eliminations and other | (166 | ) | (100 | ) | ||||
Consolidated Net Sales | $ | 14,399 | $ | 12,416 | ||||
Operating Profit | ||||||||
Otis | $ | 575 | $ | 566 | ||||
UTC Climate, Controls & Security | 520 | 544 | ||||||
Pratt & Whitney | 406 | 389 | ||||||
UTC Aerospace Systems | 501 | 198 | ||||||
Sikorsky | 90 | 136 | ||||||
Segment Operating Profit | 2,092 | 1,833 | ||||||
Eliminations and other | 21 | (24 | ) | |||||
General corporate expenses | (107 | ) | (96 | ) | ||||
Consolidated Operating Profit | $ | 2,006 | $ | 1,713 | ||||
Segment Operating Profit Margin | ||||||||
Otis | 20.4 | % | 20.4 | % | ||||
UTC Climate, Controls & Security | 13.6 | % | 13.2 | % | ||||
Pratt & Whitney | 11.9 | % | 12.7 | % | ||||
UTC Aerospace Systems | 15.4 | % | 16.0 | % | ||||
Sikorsky | 7.2 | % | 10.1 | % | ||||
Consolidated Segment Operating Profit Margin | 14.4 | % | 14.6 | % |
Quarter Ended March 31, | ||||||||
(Unaudited) | ||||||||
In Millions - Income (Expense) | 2013 | 2012 | ||||||
Restructuring Costs included in Operating Profit: | ||||||||
Otis | $ | (10 | ) | $ | (28 | ) | ||
UTC Climate, Controls & Security | (22 | ) | (35 | ) | ||||
Pratt & Whitney | (7 | ) | (37 | ) | ||||
UTC Aerospace Systems | (8 | ) | (2 | ) | ||||
Sikorsky | (5 | ) | (3 | ) | ||||
Eliminations and other | — | (6 | ) | |||||
(52 | ) | (111 | ) | |||||
Non-Recurring items included in Operating Profit: | ||||||||
UTC Climate, Controls & Security | 38 | 112 | ||||||
Eliminations and other | — | (10 | ) | |||||
38 | 102 | |||||||
Total impact on Consolidated Operating Profit | (14 | ) | (9 | ) | ||||
Non-Recurring items included in Interest Expense, Net | — | 15 | ||||||
Tax effect of restructuring and non-recurring items above | 16 | (23 | ) | |||||
Non-Recurring items included in Income Tax Expense | 95 | 203 | ||||||
Impact on Net Income from Continuing Operations Attributable to Common Shareowners | $ | 97 | $ | 186 | ||||
Impact on Diluted Earnings Per Share from Continuing Operations | $ | 0.11 | $ | 0.21 |
• | Approximately $360 million and $590 million of pre-tax goodwill impairment charges ($220 million and $410 million after tax) related to Rocketdyne and Clipper, respectively. |
• | Approximately $235 million of unfavorable income tax adjustments related to the recognition of a deferred tax liability on the existing difference between the expected accounting versus tax gain on the planned disposition of legacy Hamilton Sundstrand's Industrial businesses. |
Quarter Ended March 31, | ||||||||
(Unaudited) | ||||||||
(Millions) | 2013 | 2012 | ||||||
Net Sales | ||||||||
Otis | $ | 2,814 | $ | 2,770 | ||||
UTC Climate, Controls & Security | 3,837 | 4,112 | ||||||
Pratt & Whitney | 3,402 | 3,052 | ||||||
UTC Aerospace Systems | 3,263 | 1,236 | ||||||
Sikorsky | 1,249 | 1,346 | ||||||
Segment Sales | 14,565 | 12,516 | ||||||
Eliminations and other | (166 | ) | (100 | ) | ||||
Consolidated Net Sales | $ | 14,399 | $ | 12,416 | ||||
Adjusted Operating Profit | ||||||||
Otis | $ | 585 | $ | 594 | ||||
UTC Climate, Controls & Security | 504 | 467 | ||||||
Pratt & Whitney | 413 | 426 | ||||||
UTC Aerospace Systems | 509 | 200 | ||||||
Sikorsky | 95 | 139 | ||||||
Segment Operating Profit | 2,106 | 1,826 | ||||||
Eliminations and other | 21 | (8 | ) | |||||
General corporate expenses | (107 | ) | (96 | ) | ||||
Adjusted Consolidated Operating Profit | $ | 2,020 | $ | 1,722 | ||||
Adjusted Segment Operating Profit Margin | ||||||||
Otis | 20.8 | % | 21.4 | % | ||||
UTC Climate, Controls & Security | 13.1 | % | 11.4 | % | ||||
Pratt & Whitney | 12.1 | % | 14.0 | % | ||||
UTC Aerospace Systems | 15.6 | % | 16.2 | % | ||||
Sikorsky | 7.6 | % | 10.3 | % | ||||
Adjusted Consolidated Segment Operating Profit Margin | 14.5 | % | 14.6 | % |
March 31, | December 31, | |||||||
2013 | 2012 | |||||||
(Millions) | (Unaudited) | (Unaudited) | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 4,767 | $ | 4,819 | ||||
Accounts receivable, net | 10,791 | 11,099 | ||||||
Inventories and contracts in progress, net | 10,161 | 9,537 | ||||||
Assets held for sale | 938 | 1,071 | ||||||
Other assets, current | 2,504 | 3,084 | ||||||
Total Current Assets | 29,161 | 29,610 | ||||||
Fixed assets, net | 8,428 | 8,518 | ||||||
Goodwill | 27,516 | 27,801 | ||||||
Intangible assets, net | 15,125 | 15,189 | ||||||
Other assets | 8,283 | 8,291 | ||||||
Total Assets | $ | 88,513 | $ | 89,409 | ||||
Liabilities and Equity | ||||||||
Short-term debt | $ | 1,252 | $ | 1,624 | ||||
Accounts payable | 6,192 | 6,431 | ||||||
Accrued liabilities | 14,854 | 15,310 | ||||||
Liabilities held for sale | 261 | 421 | ||||||
Total Current Liabilities | 22,559 | 23,786 | ||||||
Long-term debt | 21,572 | 21,597 | ||||||
Other long-term liabilities | 16,564 | 16,719 | ||||||
Total Liabilities | 60,695 | 62,102 | ||||||
Redeemable non-controlling interest | 255 | 238 | ||||||
Shareowners' Equity: | ||||||||
Common Stock | 14,085 | 13,837 | ||||||
Treasury Stock | (19,575 | ) | (19,251 | ) | ||||
Retained earnings | 37,551 | 36,776 | ||||||
Accumulated other comprehensive loss | (5,867 | ) | (5,448 | ) | ||||
Total Shareowners' Equity | 26,194 | 25,914 | ||||||
Non-controlling interest | 1,369 | 1,155 | ||||||
Total Equity | 27,563 | 27,069 | ||||||
Total Liabilities and Equity | $ | 88,513 | $ | 89,409 | ||||
Debt Ratios: | ||||||||
Debt to total capitalization | 45 | % | 46 | % | ||||
Net debt to net capitalization | 40 | % | 40 | % |
Quarter Ended March 31, | ||||||||
(Unaudited) | ||||||||
(Millions) | 2013 | 2012 | ||||||
Operating Activities of Continuing Operations: | ||||||||
Income from continuing operations | $ | 1,352 | $ | 1,264 | ||||
Adjustments to reconcile net income from continuing operations to net cash flows provided by operating activities of continuing operations: | ||||||||
Depreciation and amortization | 444 | 318 | ||||||
Deferred income tax (benefit) provision | (40 | ) | 159 | |||||
Stock compensation cost | 70 | 47 | ||||||
Change in working capital | (198 | ) | (189 | ) | ||||
Global pension contributions | (29 | ) | (13 | ) | ||||
Other operating activities, net | (190 | ) | (263 | ) | ||||
Net cash flows provided by operating activities of continuing operations | 1,409 | 1,323 | ||||||
Investing Activities of Continuing Operations: | ||||||||
Capital expenditures | (295 | ) | (187 | ) | ||||
Acquisitions and dispositions of businesses, net | 722 | (20 | ) | |||||
Increase in collaboration intangible assets | (157 | ) | — | |||||
Other investing activities, net | 69 | 97 | ||||||
Net cash flows provided by (used in) investing activities of continuing operations | 339 | (110 | ) | |||||
Financing Activities of Continuing Operations: | ||||||||
Repayment of long-term debt, net | (46 | ) | (63 | ) | ||||
Decrease in short-term borrowings, net | (329 | ) | (404 | ) | ||||
Dividends paid on Common Stock | (465 | ) | (412 | ) | ||||
Repurchase of Common Stock | (335 | ) | — | |||||
Other financing activities, net | 156 | 42 | ||||||
Net cash flows used in financing activities of continuing operations | (1,019 | ) | (837 | ) | ||||
Discontinued Operations: | ||||||||
Net cash used in operating activities | (715 | ) | (21 | ) | ||||
Net cash used in investing activities | (51 | ) | (1 | ) | ||||
Net cash used in financing activities | — | (2 | ) | |||||
Net cash flows used in discontinued operations | (766 | ) | (24 | ) | ||||
Effect of foreign exchange rate changes on cash and cash equivalents | (18 | ) | 50 | |||||
Net (decrease) increase in cash and cash equivalents | (55 | ) | 402 | |||||
Cash and cash equivalents, beginning of period | 4,836 | 5,960 | ||||||
Cash and cash equivalents, end of period | 4,781 | 6,362 | ||||||
Less: Cash and cash equivalents of assets held for sale | 14 | 77 | ||||||
Cash and cash equivalents of continuing operations, end of period | $ | 4,767 | $ | 6,285 |
Quarter Ended March 31, | ||||||||||||
(Unaudited) | ||||||||||||
(Millions) | 2013 | 2012 | ||||||||||
Net income attributable to common shareowners from continuing operations | $ | 1,270 | $ | 1,189 | ||||||||
Net cash flows provided by operating activities of continuing operations | $ | 1,409 | $ | 1,323 | ||||||||
Net cash flows provided by operating activities of continuing operations as a percentage of net income attributable to common shareowners from continuing operations | 111 | % | 111 | % | ||||||||
Capital expenditures | (295 | ) | (187 | ) | ||||||||
Capital expenditures as a percentage of net income attributable to common shareowners from continuing operations | (23 | )% | (16 | )% | ||||||||
Free cash flow from continuing operations | $ | 1,114 | $ | 1,136 | ||||||||
Free cash flow from continuing operations as a percentage of net income attributable to common shareowners from continuing operations | 88 | % | 95 | % |
(1) | Debt to total capitalization equals total debt divided by total debt plus equity. Net debt to net capitalization equals total debt less cash and cash equivalents divided by total debt plus equity less cash and cash equivalents. |
(2) | Organic sales growth represents the total reported increase within the Corporation's ongoing businesses less the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and significant non-recurring items. |
(3) | Free cash flow, which represents cash flow from operations less capital expenditures, is the principal cash performance measure used by UTC. Management believes free cash flow provides a relevant measure of liquidity and a useful basis for assessing UTC's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of UTC's common stock and distribution of earnings to shareholders. Other companies that use the term free cash flow may calculate it differently. The reconciliation of net cash flow provided by operating activities, prepared in accordance with generally accepted accounting principles, to free cash flow is shown above. |
(4) | Prior period amounts reported within these Condensed Consolidated Financial Statements have been revised for discontinued operations related to the actual and planned divestiture of the UTC Power business. |