Segment Financial Data

9 Months Ended

Sep. 30, 2014

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.

Results for the quarters ended September 30, 2014 and 2013 are as follows:

	Net Sales						Operating Profits						Operating Profit Margins
(Dollars in millions)	2014			2013			2014			2013			2014		2013
Otis	$	3,326		$	3,188		$	703		$	681		21.1	%	21.4	%
UTC Climate, Controls & Security	4,351			4,237			807			696			18.5	%	16.4	%
Pratt & Whitney	3,564			3,386			633			439			17.8	%	13.0	%
UTC Aerospace Systems	3,535			3,312			575			501			16.3	%	15.1	%
Sikorsky	1,620			1,541			152			159			9.4	%	10.3	%
Total segments	16,396			15,664			2,870			2,476			17.5	%	15.8	%
Eliminations and other	(228		)	(202		)	—			7
General corporate expenses	—			—			(124		)	(117		)
Consolidated	$	16,168		$	15,462		$	2,746		$	2,366		17.0	%	15.3	%

Results for the nine months ended September 30, 2014 and 2013 are as follows:

	Net Sales						Operating Profits						Operating Profit Margins
(Dollars in millions)	2014			2013			2014			2013			2014		2013
Otis	$	9,646		$	9,140		$	1,966		$	1,906		20.4	%	20.9	%
UTC Climate, Controls & Security	12,631			12,617			2,159			1,968			17.1	%	15.6	%
Pratt & Whitney	10,485			10,412			1,453			1,412			13.9	%	13.6	%
UTC Aerospace Systems	10,621			9,896			1,767			1,501			16.6	%	15.2	%
Sikorsky	5,365			4,356			(79		)	405			(1.5	)%	9.3	%
Total segments	48,748			46,421			7,266			7,192			14.9	%	15.5	%
Eliminations and other	(644		)	(554		)	288			32
General corporate expenses	—			—			(355		)	(345		)
Consolidated	$	48,104		$	45,867		$	7,199		$	6,879		15.0	%	15.0	%

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

During the quarter ended June 30, 2014, Sikorsky and the Canadian Government signed amendments to their existing contracts for development, production and support of the CH-148 helicopter. These amendments include significant changes in program scope, governance and delivery methodology. Accordingly, in the quarter ended June 30, 2014, we recognized a change in estimate on this program resulting in the recognition of approximately $830 million of sales and $1,268 million of cost of sales.