Segment Financial Data

9 Months Ended

Sep. 30, 2013

Notes to Condensed Consolidated Financial Statements [Abstract]

Segment Financial Data

Segment Financial Data

Our operations are classified into five principal segments: Otis, UTC Climate, Controls & Security, Pratt & Whitney, UTC Aerospace Systems and Sikorsky. The segments are generally based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services. On September 23, 2013, we announced the formation of UTC Building and Industrial Systems, a new organizational structure consisting of Otis and UTC Climate, Controls & Security. This new organizational structure is intended to enhance our ability to deliver more integrated solutions to our customers and accelerate innovation in smart building technologies and sustainable designs. Otis and UTC Climate, Controls & Security each will continue to report their financial and operational results as separate segments, which is consistent with how we will allocate resources and measure the financial performance of these businesses. Subsequent to the completion of our acquisition of Goodrich on July 26, 2012, the Goodrich businesses were combined with the legacy Hamilton Sundstrand businesses to form the new UTC Aerospace Systems segment. Effective July 1, 2012, the Auxiliary Power Unit (APU) business of UTC Aerospace Systems was transferred to the Pratt & Whitney business segment. The APU business designs and manufactures a variety of products for commercial and military aircraft. Annual sales for the APU business are approximately $600 million. The reclassification has been made prospectively; prior year segment results have not been restated for the transfer of the business.

Results for the quarters ended September 30, 2013 and 2012 are as follows:

	Net Sales						Operating Profits						Operating Profit Margins
(Dollars in millions)	2013			2012			2013			2012			2013		2012
Otis	$	3,188		$	3,054		$	681		$	651		21.4	%	21.3	%
UTC Climate, Controls & Security	4,237			4,259			696			632			16.4	%	14.8	%
Pratt & Whitney	3,386			3,574			439			409			13.0	%	11.4	%
UTC Aerospace Systems	3,312			2,670			501			271			15.1	%	10.1	%
Sikorsky	1,541			1,649			159			203			10.3	%	12.3	%
Total segments	15,664			15,206			2,476			2,166			15.8	%	14.2	%
Eliminations and other	(202		)	(164		)	7			(22		)
General corporate expenses	—			—			(117		)	(103		)
Consolidated	$	15,462		$	15,042		$	2,366		$	2,041		15.3	%	13.6	%

Results for the nine months ended September 30, 2013 and 2012 are as follows:

	Net Sales						Operating Profits						Operating Profit Margins
(Dollars in millions)	2013			2012			2013			2012			2013		2012
Otis	$	9,140		$	8,851		$	1,906		$	1,868		20.9	%	21.1	%
UTC Climate, Controls & Security	12,617			12,943			1,968			1,965			15.6	%	15.2	%
Pratt & Whitney	10,412			10,073			1,412			1,225			13.6	%	12.2	%
UTC Aerospace Systems	9,896			5,160			1,501			680			15.2	%	13.2	%
Sikorsky	4,356			4,615			405			552			9.3	%	12.0	%
Total segments	46,421			41,642			7,192			6,290			15.5	%	15.1	%
Eliminations and other	(554		)	(377		)	32			(54		)
General corporate expenses	—			—			(345		)	(303		)
Consolidated	$	45,867		$	41,265		$	6,879		$	5,933		15.0	%	14.4	%

See Note 8 to the Condensed Consolidated Financial Statements for a discussion of restructuring costs included in segment operating results.