ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2016 |
DELAWARE | 06-0570975 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
10 Farm Springs Road, Farmington, Connecticut | 06032 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered | |
Common Stock ($1 par value) | New York Stock Exchange | |
(CUSIP 913017 10 9) | ||
1.250% Notes due 2023 | New York Stock Exchange | |
(CUSIP U91301 AD0) | ||
1.125% Notes due 2021 | New York Stock Exchange | |
(CUSIP 913017 CD9) | ||
1.875% Notes due 2026 | New York Stock Exchange | |
(CUSIP 913017 CE7) | ||
Floating Rate Notes due 2018 | New York Stock Exchange | |
(CUSIP 913017 CC1) |
Large accelerated filer | ý | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | |
PART I | |
PART II | |
PART III | |
PART IV | |
Item 1. | Business |
• | the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; |
• | challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; |
• | future levels of indebtedness and capital spending and research and development spending; |
• | future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; |
• | the timing and scope of future repurchases of our common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash; |
• | delays and disruption in delivery of materials and services from suppliers; |
• | company and customer-directed cost reduction efforts and restructuring costs and savings and other consequences thereof; |
• | the scope, nature, impact or timing of acquisition and divestiture activity, including among other things integration of acquired businesses into our existing businesses and realization of synergies and opportunities for growth and innovation; |
• | new business opportunities; |
• | our ability to realize the intended benefits of organizational changes; |
• | the anticipated benefits of diversification and balance of operations across product lines, regions and industries; |
• | the outcome of legal proceedings, investigations and other contingencies; |
• | pension plan assumptions and future contributions; |
• | the impact of the negotiation of collective bargaining agreements and labor disputes; |
• | the effect of changes in political conditions in the U.S. and other countries in which we operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; and |
• | the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which we operate. |
Item 1A. | Risk Factors |
• | 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, reinvestment in our businesses, dividends and repurchases of our common stock; |
• | reducing our flexibility in planning for or reacting to changes in our business and market conditions; and |
• | exposing us to interest rate risk because a portion of our debt obligations are at variable rates. |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Number of Facilities - Owned | ||||||||||||||||||
Location | Otis | UTC Climate, Controls & Security | Pratt & Whitney | UTC Aerospace Systems | Other | Total | ||||||||||||
Manufacturing & Aftermarket Services: | ||||||||||||||||||
North America | 1 | 8 | 27 | 37 | — | 73 | ||||||||||||
Europe & Middle East | 7 | 14 | 2 | 21 | — | 44 | ||||||||||||
Asia | — | 1 | 7 | 4 | — | 12 | ||||||||||||
Emerging Markets* | 10 | 19 | 6 | 13 | — | 48 | ||||||||||||
18 | 42 | 42 | 75 | — | 177 | |||||||||||||
Non-Manufacturing & Aftermarket Services: | ||||||||||||||||||
North America | 2 | 15 | 27 | 8 | 13 | 65 | ||||||||||||
Europe & Middle East | 9 | 8 | — | 4 | — | 21 | ||||||||||||
Asia | 1 | 4 | — | — | — | 5 | ||||||||||||
Central and Latin America | — | 1 | — | — | — | 1 | ||||||||||||
Emerging Markets* | 1 | 5 | — | 2 | — | 8 | ||||||||||||
13 | 33 | 27 | 14 | 13 | 100 |
Number of Facilities - Leased | ||||||||||||||||||
Location | Otis | UTC Climate, Controls & Security | Pratt & Whitney | UTC Aerospace Systems | Other | Total | ||||||||||||
Manufacturing & Aftermarket Services: | ||||||||||||||||||
North America | — | 4 | 14 | 27 | — | 45 | ||||||||||||
Europe & Middle East | — | 2 | 3 | 5 | — | 10 | ||||||||||||
Asia | — | — | 2 | 2 | — | 4 | ||||||||||||
Emerging Markets* | 4 | 5 | 2 | 8 | — | 19 | ||||||||||||
4 | 11 | 21 | 42 | — | 78 | |||||||||||||
Non-Manufacturing & Aftermarket Services: | ||||||||||||||||||
North America | 4 | 32 | 8 | 10 | 7 | 61 | ||||||||||||
Europe & Middle East | 9 | 34 | — | 4 | — | 47 | ||||||||||||
Asia | 2 | 6 | 1 | 1 | — | 10 | ||||||||||||
Emerging Markets* | 11 | 14 | — | 2 | — | 27 | ||||||||||||
26 | 86 | 9 | 17 | 7 | 145 |
* | For purposes of this table, our definition of emerging markets is developed using the countries included in the MSCI Emerging Markets IndexSM. |
Item 4. | Mine Safety Disclosures |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
2016 | Total Number of Shares Purchased (000's) | Average Price Paid per Share | Total Number of Shares Purchased as Part of a Publicly Announced Program (000's) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (dollars in millions) | |||||||||||
October 1 - October 31 | 12,017 | $ | 100.58 | 12,017 | $ | 4,106 | |||||||||
November 1 - November 30 | 3,178 | 104.72 | 3,178 | $ | 3,773 | ||||||||||
December 1 - December 31 | 249 | 107.73 | 249 | $ | 3,746 | ||||||||||
Total | 15,444 | $ | 101.55 | 15,444 |
Item 6. | Selected Financial Data |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
Item 8. | Financial Statements and Supplementary Data |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
Item 10. | Directors, Executive Officers and Corporate Governance |
Name | Title | Other Business Experience Since 1/1/2012 | Age as of 2/9/2017 | |||
Elizabeth B. Amato | Executive Vice President & Chief Human Resources Officer, United Technologies Corporation (since August 2012)* | Senior Vice President, Human Resources and Organization, United Technologies Corporation; Vice President, Human Resources, UTC Climate, Controls & Security | 60 | |||
Robert J. Bailey | Corporate Vice President, Controller, United Technologies Corporation (since September 2016) | Vice President & Chief Financial Officer, Pratt & Whitney; Vice President & Chief Financial Officer, Hamilton Sundstrand | 52 | |||
Philippe Delpech | President, Otis Elevator (since September 2015) | Chief Operating Officer, Intercontinental Operations, UTC Building & Industrial Systems; Chief Operating Officer for UTC Climate, Controls & Security; President, EMEA, UTC Climate, Controls & Security | 54 | |||
Michael R. Dumais | Executive Vice President, Operations & Strategy, United Technologies Corporation (since January 2017) | Senior Vice President, Strategic Planning, United Technologies Corporation: President, Power, Controls & Sensing Systems, UTC Aerospace Systems; President, Hamilton Sundstrand | 50 | |||
Charles D. Gill | Executive Vice President & General Counsel, United Technologies Corporation (since 2007)* | Senior Vice President and General Counsel, United Technologies Corporation | 52 | |||
David L. Gitlin | President, UTC Aerospace Systems (since January 2015) | President, Aircraft Systems, UTC Aerospace Systems; Vice President of Integration - UTC Propulsion & Aerospace Systems | 47 | |||
Gregory J. Hayes | Chairman (since September 2016), President and Chief Executive Officer, United Technologies Corporation (since November 2014) | Senior Vice President and Chief Financial Officer, United Technologies Corporation | 56 | |||
Akhil Johri | Executive Vice President & Chief Financial Officer, United Technologies Corporation (since January 2015)* | Senior Vice President and Chief Financial Officer, United Technologies Corporation; Chief Financial Officer, Pall Corporation; Vice President of Finance and Chief Financial Officer of UTC Propulsion & Aerospace Systems | 55 | |||
Robert F. Leduc | President, Pratt & Whitney (since January 2016) | President, Sikorsky Aircraft; Operating Partner, Advent International; President, Boeing Programs and Space, UTC Aerospace Systems | 60 | |||
Robert J. McDonough | President, UTC Climate, Controls & Security (since September 2015) | Chief Operating Officer, Americas, UTC Building & Industrial Systems; Chief Operating Officer, Americas, UTC Climate, Controls & Security; President, UTC Climate, Controls & Security, Americas | 57 | |||
David R. Whitehouse | Corporate Vice President, Treasurer, United Technologies Corporation (since April 2015)* | Vice President, Treasurer, United Technologies Corporation; Director, Capital Markets, United Technologies Corporation; Senior Vice President & Treasurer, Frontier Communications | 50 |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | ||||||||
Equity compensation plans approved by shareowners | 13,639,000 | (1) | $ | 86.76 | 40,545,000 | (2) | |||||
Equity compensation plans not approved by shareowners | — | — | — | ||||||||
Total | 13,639,000 | $ | 86.76 | 40,545,000 |
(1) | Consists of: (i) shares of Common Stock issuable upon the exercise of outstanding stock options awarded under the United Technologies Corporation Long-Term Incentive Plan, as amended (LTIP); (ii) shares of Common Stock issuable upon the exercise of outstanding Stock Appreciation Rights (SARs) awarded under the LTIP, (iii) shares of Common Stock issuable upon the vesting of outstanding deferred stock units and restricted stock units awarded under the United Technologies Corporation Board of Directors Deferred Stock Unit Plan, as amended and restated effective December 23, 2014 and (iv) shares of Common Stock issuable pursuant to outstanding restricted stock unit and performance share unit awards, assuming performance at the target level, except for the 2014 performance share unit awards which reflect actual performance achieved. Under the LTIP, each SAR referred to in clause (ii) is exercisable for a number of shares of Common Stock having a value equal to the increase in the market price of a share of such stock from the date the SAR was granted. For purposes of determining the total number of shares to be issued in respect of outstanding SARs as reflected in Column (a) above, we have used the NYSE closing price for a share of Common Stock on December 31, 2016 of $109.62. The amount of shares of Common Stock referred to in clause (iv) above includes 2,033,000 restricted shares and restricted share units and 1,323,000 performance share units. Up to an additional 1,323,000 shares of Common Stock could be issued if performance goals are achieved above target. The weighted average exercise price of outstanding options, warrants and rights shown in column (b) takes into account only the shares identified in clause (i) and (ii). |
(2) | Represents the maximum number of shares of Common Stock available to be awarded under the LTIP as of December 31, 2016. Performance share 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 4.03 times the number of shares to which the award corresponds. Stock options and stock appreciation rights do not constitute Full Share Awards and will result in a reduction in the number of shares of Common Stock available for delivery under the LTIP on a one-for-one basis. |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accounting Fees and Services |
Item 15. | Exhibits and Financial Statement Schedules |
(a) | Financial Statements, Financial Statement Schedules and Exhibits |
(1) | Financial Statements (incorporated herein by reference to the 2016 Annual Report): |
Page Number in Annual Report | |||
Report of Independent Registered Public Accounting Firm | 31 | ||
Consolidated Statement of Operations for the three years ended December 31, 2016 | 32 | ||
Consolidated Statement of Comprehensive Income for the three years ended December 31, 2016 | 33 | ||
Consolidated Balance Sheet as of December 31, 2016 and 2015 | 34 | ||
Consolidated Statement of Cash Flows for the three years ended December 31, 2016 | 35 | ||
Consolidated Statement of Changes in Equity for the three years ended December 31, 2016 | 36 | ||
Notes to Consolidated Financial Statements | 38 | ||
Selected Quarterly Financial Data (Unaudited) | 75 |
(2) | Financial Statement Schedule for the three years ended December 31, 2016: |
(3) | Exhibits: |
Exhibit Number | ||
2.1 | Stock Purchase Agreement, dated as of July 19, 2015, by and among United Technologies Corporation, the other Sellers identified therein and Lockheed Martin Corporation, incorporated by reference to Exhibit 2.1 to UTC’s Current Report on Form 8-K (Commission file number 1-812) filed with the SEC on July 20, 2015. | |
3(i) | Restated Certificate of Incorporation, restated as of April 25, 2016, incorporated by reference to Exhibit 3.1 to UTC’s Current Report on Form 8-K (Commission file number 1-812) filed with the SEC on April 25, 2016. | |
3(ii) | Bylaws as amended and restated effective April 25, 2016, incorporated by reference to Exhibit 3.2 to UTC's Current Report on Form 8-K (Commission file number 1-812) filed with the SEC on April 25, 2016. | |
4.1 | Amended and Restated Indenture, dated as of May 1, 2001, between UTC and The Bank of New York, as trustee, incorporated by reference to Exhibit 4(a) to UTC’s Registration Statement on Form S-3 (Commission file number 333-60276) filed with the SEC on May 4, 2001. UTC hereby agrees to furnish to the Commission upon request a copy of each other instrument defining the rights of holders of long-term debt of UTC and its consolidated subsidiaries and any unconsolidated subsidiaries. | |
10.1 | United Technologies Corporation Annual Executive Incentive Compensation Plan, incorporated by reference to Exhibit A to UTC’s Proxy Statement for the 1975 Annual Meeting of Shareowners, Amendment No. 1 thereto, effective January 1, 1995, incorporated by reference to Exhibit 10.2 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 1995, and Amendment No. 2 thereto, effective January 1, 2009, incorporated by reference to Exhibit 10.1 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2008. | |
10.2 | United Technologies Corporation Pension Preservation Plan, as amended and restated, effective December 31, 2009, incorporated by reference to Exhibit 10.3 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2009. | |
10.3 | United Technologies Corporation Senior Executive Severance Plan, incorporated by reference to Exhibit 10(vi) to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 1992, as amended by Amendment thereto, effective December 10, 2003, incorporated by reference to Exhibit 10.4 of UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2003, and Amendment thereto, effective June 11, 2008, incorporated by reference to Exhibit 10.4 of UTC’s Quarterly Report on Form 10-Q (Commission file number 1-812) for the quarterly period ended June 30, 2008, and Amendment thereto, dated February 4, 2011, incorporated by reference to Exhibit 10.4 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2010. | |
10.4 | United Technologies Corporation Deferred Compensation Plan, as amended and restated, effective January 1, 2005, incorporated by reference to Exhibit 10.5 of UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2008. | |
10.5 | United Technologies Corporation Long Term Incentive Plan, incorporated by reference to Exhibit 10.11 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 1989, as amended by Amendment No. 1, incorporated by reference to Exhibit 10.11 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 1995, and Amendment No. 2, incorporated by reference to Exhibit 10.6 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2003. | |
10.6 | United Technologies Corporation Executive Leadership Group Program, as amended and restated, effective October 15, 2013, incorporated by reference to Exhibit 10.11 to UTC’s Quarterly Report on Form 10-Q (Commission file number 1-812) for the quarterly period ended September 30, 2013. | |
10.7 | Schedule of Terms for Restricted Share Unit Retention Awards relating to the United Technologies Corporation Executive Leadership Group Program (referred to above in Exhibit 10.6), incorporated by reference to Exhibit 10.12 to UTC’s Quarterly Report on Form 10-Q (Commission file number 1-812) for the quarterly period ended September 30, 2013. | |
10.8 | Form of Award Agreement for Restricted Share Unit Retention Awards relating to the United Technologies Corporation Executive Leadership Group Program (referred to above in Exhibit 10.6), incorporated by reference to Exhibit 10.13 to UTC’s Quarterly Report on Form 10-Q (Commission file number 1-812) for the quarterly period ended September 30, 2013. | |
10.9 | United Technologies Corporation Board of Directors Deferred Stock Unit Plan, as Amended and Restated, effective as of April 24, 2017.* | |
10.10 | Retainer Payment Election Form for United Technologies Corporation Board of Directors Deferred Stock Unit Plan (referred to above in Exhibit 10.9).* | |
10.11 | Form of Deferred Restricted Stock Unit Award relating to the United Technologies Corporation Board of Directors Deferred Stock Unit Plan (referred to above in Exhibit 10.9).* | |
10.12 | United Technologies Corporation Long-Term Incentive Plan, as amended and restated effective April 28, 2014, incorporated by reference to Exhibit 10.1 to UTC’s Current Report on Form 8-K (Commission file number 1-812) filed with the SEC on May 2, 2014, as further amended by Amendment No. 1, effective as of February 5, 2016, incorporated by reference to Exhibit 10.12 to UTC's Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2015. | |
10.13 | Schedule of Terms for restricted stock awards relating to the United Technologies Corporation Long-Term Incentive Plan (referred to above in Exhibit 10.12) (Rev. January 2016), incorporated by reference to Exhibit 10.13 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2015. | |
10.14 | Schedule of Terms for non-qualified stock option awards relating to the United Technologies Corporation Long-Term Incentive Plan (referred to above in Exhibit 10.12) (Rev. January 2016), incorporated by reference to Exhibit 10.15 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2015. | |
10.15 | Form of Award Agreement for non-qualified stock option awards relating to the United Technologies Corporation Long-Term Incentive Plan (referred to above in Exhibit 10.12)* | |
10.16 | Schedule of Terms for performance share unit awards relating to the United Technologies Corporation Long-Term Incentive Plan (referred to above in Exhibit 10.12) (Rev. January 2016), incorporated by reference to Exhibit 10.17 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2015. | |
10.17 | Schedule of Terms for stock appreciation rights awards relating to the United Technologies Corporation 2005 Long-Term Incentive Plan (referred to above in Exhibit 10.12) (Rev. January 2016), incorporated by reference to Exhibit 10.18 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2015. | |
10.18 | Form of Award Agreement for restricted stock unit, performance share unit and stock appreciation rights awards relating to the United Technologies Corporation Long-Term Incentive Plan (referred to above in Exhibit 10.12)* | |
10.19 | United Technologies Corporation LTIP Performance Share Unit Deferral Plan, relating to the Long-Term Incentive Plan (referred to above in Exhibit 10.12), incorporated by reference to Exhibit 10.36 of UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2008. | |
10.20 | United Technologies Corporation International Deferred Compensation Replacement Plan, effective January 1, 2005, incorporated by reference to Exhibit 10.35 of UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2008. | |
10.21 | United Technologies Corporation Company Automatic Excess Plan, effective January 1, 2010, incorporated by reference to Exhibit 10.30 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2009. | |
10.22 | United Technologies Corporation Savings Restoration Plan, effective January 1, 2010, incorporated by reference to Exhibit 10.31 to UTC’s Annual Report on Form 10-K (Commission file number 1-812) for the fiscal year ended December 31, 2009. | |
10.23 | Director Agreement between Otis Elevator Worldwide SPRL and Mr. Philippe Delpech entered into on September 1, 2016.* | |
11 | Statement Re: Computation of Per Share Earnings* | |
12 | Statement Re: Computation of Ratios.* | |
13 | Excerpts from UTC’s 2016 Annual Report to Shareowners for the year ended December 31, 2016.* | |
14 | Code of Ethics. The UTC Code of Ethics may be accessed via UTC’s website at http://www.utc.com/How-We-Work/Ethics-And-Compliance/Pages/Default.aspx | |
21 | Subsidiaries of the Registrant.* | |
23 | Consent of PricewaterhouseCoopers LLP.* | |
24 | Powers of Attorney of Lloyd J. Austin III, Diane M. Bryant, John V. Faraci, Jean-Pierre Garnier, Edward A. Kangas, Ellen J. Kullman, Marshall O. Larsen, Harold W. McGraw III, Richard B. Myers, Fredric G. Reynolds, Brian C. Rogers, H. Patrick Swygert, André Villeneuve and Christine Todd Whitman.* | |
31 | Rule 13a-14(a)/15d-14(a) Certifications.* | |
32 | Section 1350 Certifications.* | |
101.INS | XBRL Instance Document.* (File name: utx-20161231.xml) | |
101.SCH | XBRL Taxonomy Extension Schema Document.* (File name: utx-20161231.xsd) | |
101.CAL | XBRL Taxonomy Calculation Linkbase Document.* (File name: utx-20161231_cal.xml) | |
101.DEF | XBRL Taxonomy Definition Linkbase Document.* File name: : utx-20161231_def.xml) | |
101.LAB | XBRL Taxonomy Label Linkbase Document.* (File name: utx-20161231_lab.xml) | |
101.PRE | XBRL Taxonomy Presentation Linkbase Document.* (File name: utx-20161231_pre.xml) |
* | Submitted electronically herewith. |
UNITED TECHNOLOGIES CORPORATION | ||
(Registrant) | ||
By: | /s/ AKHIL JOHRI | |
Akhil Johri | ||
Executive Vice President & Chief Financial Officer | ||
By: | /s/ ROBERT J. BAILEY | |
Robert J. Bailey | ||
Corporate Vice President, Controller |
Signature | Title | Date | ||
/s/ GREGORY J. HAYES | Director, Chairman, President and Chief Executive Officer (Principal Executive Officer) | February 9, 2017 | ||
(Gregory J. Hayes) | ||||
/s/ AKHIL JOHRI | Executive Vice President & Chief Financial Officer (Principal Financial Officer) | February 9, 2017 | ||
(Akhil Johri) | ||||
/s/ ROBERT J. BAILEY | Corporate Vice President, Controller (Principal Accounting Officer) | February 9, 2017 | ||
(Robert J. Bailey) | ||||
/s/ LLOYD J. AUSTIN III * | Director | |||
(Lloyd J. Austin III) | ||||
/s/ DIANE M. BRYANT * | Director | |||
(Diane M. Bryant) | ||||
/s/ JOHN V. FARACI * | Director | |||
(John V. Faraci) | ||||
/s/ JEAN-PIERRE GARNIER * | Director | |||
(Jean-Pierre Garnier) | ||||
/s/ EDWARD A. KANGAS * | Director | |||
(Edward A. Kangas) | ||||
/s/ ELLEN J. KULLMAN * | Director | |||
(Ellen J. Kullman) | ||||
/s/ MARSHALL O. LARSEN * | Director | |||
(Marshall O. Larsen) | ||||
/s/ HAROLD W. MCGRAW III * | Director | |||
(Harold W. McGraw III) | ||||
/s/ RICHARD B. MYERS * | Director | |||
(Richard B. Myers) | ||||
/s/ FREDRIC G. REYNOLDS * | Director | |||
(Fredric G. Reynolds) | ||||
/s/ BRIAN C. ROGERS * | Director | |||
(Brian C. Rogers) | ||||
/s/ H. PATRICK SWYGERT * | Director | |||
(H. Patrick Swygert) | ||||
/s/ ANDRÉ VILLENEUVE * | Director | |||
(André Villeneuve) | ||||
/s/ CHRISTINE TODD WHITMAN * | Director | |||
(Christine Todd Whitman) |
*By: | /s/ CHARLES D. GILL |
Charles D. Gill Executive Vice President & General Counsel, as Attorney-in-Fact |
Allowances for Doubtful Accounts and Other Customer Financing Activity: | ||||
Balance, December 31, 2013 | $ | 538 | ||
Provision charged to income | 93 | |||
Doubtful accounts written off (net) | (91 | ) | ||
Other adjustments | (46 | ) | ||
Balance, December 31, 2014 | 494 | |||
Provision charged to income | 137 | |||
Doubtful accounts written off (net) | (59 | ) | ||
Other adjustments | (19 | ) | ||
Balance, December 31, 2015 | 553 | |||
Provision charged to income | 64 | |||
Doubtful accounts written off (net) | (105 | ) | ||
Other adjustments | (45 | ) | ||
Balance, December 31, 2016 | $ | 467 | ||
Future Income Tax Benefits—Valuation allowance: | ||||
Balance, December 31, 2013 | $ | 942 | ||
Additions charged to income tax expense | 91 | |||
Reductions credited to income tax expense | (55 | ) | ||
Other adjustments 1 | (366 | ) | ||
Balance, December 31, 2014 | 612 | |||
Additions charged to income tax expense | 42 | |||
Additions charged to goodwill, due to acquisitions | 7 | |||
Reductions credited to income tax expense | (41 | ) | ||
Other adjustments 1 | (29 | ) | ||
Balance, December 31, 2015 | 591 | |||
Additions charged to income tax expense | 32 | |||
Reductions credited to income tax expense | (61 | ) | ||
Other adjustments | (17 | ) | ||
Balance, December 31, 2016 | $ | 545 |
APPENDIX A | United Technologies Corporation Board of Directors Deferred Stock Unit Plan as in effect on October 3, 2004 (the “Prior Plan”) |
4.05 | Deferred Stock Unit Accounts |
4.06 | Hypothetical Nature of Accounts and Investments |
5.04 | Election of Form and Amount of Distribution |
i. | The new Election must be made at least twelve months prior to the Distribution Commencement Date (and the new election shall be ineffective if the Distribution Commencement Date occurs within twelve months after the date of the new Election); |
ii. | The new Election will not take effect until twelve months after the date when the Participant submits a new Election form to the Office of the Corporate Secretary; |
iii. | The new Distribution Commencement Date must be five years later than the date on which the distribution would otherwise have commenced; and |
iv. | The new form of distribution must be one of the forms of payment provided under Section 5.04(a) or (b). |
6.01 | In General |
6.02 | Plan Amendment and Termination |
6.03 | Reports to Participants |
7.01 | Rights Not Assignable |
7.02 | Certain Rights Reserved |
7.03 | Withholding Taxes |
7.04 | Compliance with Section 409A |
7.05 | Incompetence |
7.06 | Inability to Locate Participants and Beneficiaries |
7.07 | Successors |
7.08 | Usage |
7.09 | Severability |
4.01 | Accounts |
4.02 | Stock Units |
4.03 | Hypothetical Nature of Accounts and Investments |
5.01 | Entitlement to Payment |
5.02 | Payment Commencement Date |
5.03 | Form and Amount of Payment |
6.01 | In General |
6.02 | Plan Amendment and Termination |
6.03 | Reports to Participants |
7.01 | Rights Not Assignable |
7.02 | Certain Rights Reserved |
7.03 | Withholding Taxes |
7.04 | Incompetence |
7.05 | Inability to Locate Participants and Beneficiaries |
7.06 | Successors |
7.07 | Usage |
7.08 | Severability |
Total Combined Award | Annual Retainer Award | Annual DSU Award | |
Base Compensation | 300,000 | 120,000 | 180,000 |
Total Combined Award | Annual Retainer Award | Annual DSU Award | |
Lead Director | 80,000 | 32,000 | 48,000 |
Audit Chair | 40,000 | 16,000 | 24,000 |
Audit Members | 30,000 | 12,000 | 18,000 |
Compensation Chair | 25,000 | 10,000 | 15,000 |
Finance Chair | 25,000 | 10,000 | 15,000 |
Governance Chair | 25,000 | 10,000 | 15,000 |
o | 15 annual installments |
Name: |
Grant Date: |
Type | Number of Units | Grant Price | Estimated Present Value | Vesting Date* | Expiration Date |
Options |
Stock Options (“Options”) How Do Options Work? A stock option is similar to a Stock Appreciation Right (“SAR”) and delivers equivalent value when exercised. ■ Provides gain equal to the difference in UTC stock price from grant date to exercise date ■ Vests three years after grant date ■ Expires ten years from the grant date, unless exercised ■ No dividend equivalents ■ At exercise, value is delivered in shares of UTC Common Stock that can be: -- Converted to cash, or -- Held as shares with dividend rights | ||
An Example | |
Number of Options granted | 1,000 |
UTC stock price at grant | $100 per share |
UTC stock price at exercise | $125 per share |
Increase in UTC stock price from grant date to exercise date: | $125 per share -$100 per share = $25 per share |
Total gain from Option exercise: | 1,000 options X $25 per share = $25,000 |
Conversion into shares of UTC stock: | $25,000 ÷$125 per share = 200 shares |
About This Statement |
This personalized statement shows your 20XX Award under the United Technologies Corporation Long-Term Incentive Plan, as amended (the “LTIP”). The Award shown in this statement is subject to the terms and conditions of the LTIP. As an __ executive, you receive your Long-Term Incentive Plan award value in three parts: ■ «SAR_»% in Stock Appreciation Rights (“SARs”) ■ «RSU_»% in Restricted Stock Units (“RSUs”) ■ «PSU_»% in Performance Share Units (“PSUs”) |
Your 20XX Long-Term Incentive Plan Award |
How the Award Is Distributed: |
Type | Number of Units | Grant Price | Estimated Present Value | Vesting Date | Expiration Date |
SARs | |||||
RSUs1 | |||||
PSUs2 | |||||
Total Estimated Present Value: |
Performance Targets: ■ Three-year Earnings Per Share (“EPS”) Compound Annual Growth Rate (“CAGR”)3 ■ Three-year quarterly average Return on Invested Capital (“ROIC”)3 ■ Relative three-year cumulative Total Shareholder Return (“TSR”) vs. the S&P 500 Index |
PSU Performance Metrics4 | Weighting | UTC Achievement | PSU Vesting | ||||
Threshold | Target | Maximum | Threshold | Target | Maximum | ||
EPS Growth | |||||||
ROIC | |||||||
Relative TSR |
How to Accept Your Award |
You will receive an email from UBS in early March 20XX alerting you that your Award has posted to your UBS account. You must acknowledge and accept the terms and conditions of your Award electronically via UBS One Source. You can access the UBS One Source site from any computer (using your UBS Participant ID and PIN) at http://www.ubs.com/onesource/utx. First time Award recipients will receive their UBS Participant ID from UTC’s Stock Plan Administrator and their temporary password from UBS. If you do not accept your Award on-line at UBS One Source by June 1, 20XX, your Award will be forfeited. |
The award shown in this statement is nontransferable and is subject to the terms and conditions of the United Technologies Corporation Long-Term Incentive Plan, as amended. I acknowledge this statement of award, the 2017 Schedule of Terms and the LTIP. I understand that I am accepting this award subject to the 2017 Schedule of Terms and the LTIP. In accepting this award, I accept responsibility for any tax liabilities associated with this award at the time of grant, lapse, exercise and/or sale. I authorize the Company, its Affiliates and its third party administrators to collect, use, process, transfer, and hold my personal data, in electronic or other form, as required for the implementation, administration and management of this award and the LTIP within or outside the country in which I reside or work. |
BETWEEN: | OTIS ELEVATOR WORLDWIDE SPRL, a Belgian Company having its registered seat at Avenue des Arts, 58, 1000 Brussels, Belgium; |
AND: | Mr. Philippe Delpech, domiciled at [Intentionally omitted]; |
1.1. | The Director has been nominated as a member of the Board of Directors of the Company. Within the Board of Directors, the Director has been assigned to act as President, Otis Elevator Worldwide. |
1.2. | The Director is held to exercise personally his mandate as Director. He is not allowed to transfer or delegate this mandate in whole or in part to a third party without the express prior permission of the Company. |
1.3. | In his capacity of President, the Director is entrusted with: |
1.3.1. | the responsibilities assigned to the Board of Directors by the applicable provisions of the Belgian Corporate Law Code (as a member of the Board of Directors); |
1.3.2. | His duties shall include amongst others: |
◦ | Provide overall strategic direction, leadership, and management to the worldwide operations of Otis Elevator, including all required management reporting to UTC Group related thereto; |
◦ | Respond to changing market dynamics to assure the continuing competitiveness of the business; |
◦ | Direct the development of plans and policies; |
◦ | Work with and advise the worldwide business to establish short and long-term operating financial objectives; |
◦ | Continually appraise and evaluate results of each business and their consolidated performance to assure attainment of objectives; |
◦ | Provide leadership and direction to support and ensure compliance with the UTC Code of Ethics, UTC Corporate Policy Manual, and UTC Financial Manual throughout the worldwide operations of Otis Elevator; and |
◦ | Work as a key member of the Company’s team and alongside colleagues around the world for companies belonging to the UTC Group. |
1.4. | The Director shall fulfill his duties and responsibilities during the necessary time in order to meet the needs of his areas of responsibility as Director and President of the Company. |
1.5. | The Director shall report to the Board of Directors of the Company and if required provide information to the shareholders in connection with the status of the operations of the Company and the exercise of his functions under this Agreement. He shall supply the Shareholders’ Meeting with all information or explanations, which it may reasonably request from him. |
1.6. | The Director shall for the exercise of his functions under this Agreement act along the general lines of strategy set out by the Board of Directors and the shareholders and actively contribute to the realization of the strategy. |
1.7. | The Director agrees that he may be assigned by the Board of Directors to perform activities which relate to the business of other companies of UTC. |
1.8. | In the event the duties and/or the responsibilities of the Director, as described under section 1.3 of this Agreement, would change substantially in the future following a decision of the Board of Directors, the terms and conditions of this Agreement will be adjusted and the remuneration as determined in Article 2 will be aligned. The changes will be described in an addendum to this Agreement, which will be signed by the Company and by the Director. |
2.1. | The Company pays the Director an annual fee amounting to 762.000 EUR gross per year for his activities under this Agreement. The Director’s remuneration has been determined taking into account the benefits of the special expatriate tax status. |
2.2. | The Company provides the Director a target bonus of 100% of the annual fee in accordance with the Key Performance Indicators as determined annually between both Parties. |
2.3. | The Company shall provide a leased company car per Company policy and a fuel card to the Director, for business and private use, along with a driver for the business use of such car. All income taxes and social security charges relating to the private use of the car shall be at the expense of the Director. |
2.4. | The Company shall put a mobile phone at the Director’s disposal, for business and private use. All communication costs shall be at the expense of the Company. |
2.5. | The Company shall pay for the actual costs of the Director’s children’s schooling fees, excluding post-secondary or tertiary school education (e.g. college/university schooling fees), in accordance with Company policies. |
2.6. | The Company shall reimburse housing rental by the Director of 9,000 EUROS per month. |
2.7. | The Director will be eligible to participate in the UTC long-term incentive plan. |
2.8. | The Company will contribute 20% of the Director’s annual fee of 762.000 EUR to a Belgium Pension Savings Plan, providing a retirement lump sum. The Director will participate in the additional insurance coverage plans of the Company or of UTC applicable to directors. |
2.9. | The Company reserves the right to withhold applicable taxes from any amounts paid pursuant to this Agreement to the extent required by country and provincial/state laws. The Director shall be responsible for any and all tax liabilities imposed on any amounts paid hereunder. |
4.1 | The Director will execute his obligations under this Agreement at the Company’s registered office in Belgium or any other offices of UTC as agreed by the Company. In view of the fact that the Director is allowed to use the infrastructure of the Company, he agrees to respect all instructions in |
4.2 | The Director acknowledges that, in the framework of his functions as described under Section 1.3 of this Agreement, he may be requested to perform short-term business trips on a different location, either in Belgium or abroad. |
6.1. | The Director acknowledges that the scope of the duties and responsibilities as described under section 1.3 of this Agreement requires his full commitment, attention and dedication and that the proper performance of these duties and responsibilities can be jeopardized by performing other professional activities. |
6.2. | The Parties will subsequently determine the potential impact of the intended engagement in other activities on the performance of the duties and responsibilities under this Agreement. If the impact is deemed substantial by the Company, the Parties agree that the conditions of the present Agreement will be adjusted accordingly. The Company has the right to refuse the performance of activities in case these are deemed to be of a competitive nature towards the activities of the Company or its affiliates or in case the activities would no longer allow the Director to sufficiently devote his professional dedication to the Company. |
6.3. | This Article 6 applies to all other activities, irrespectively whether these are performed directly or indirectly or whether they are remunerated or not. |
7.1. | In his capacity of Director of the Company, the professional liability of the Director is determined by the applicable articles of the Belgian Corporate Law Code. In this respect, the Company will conclude a director’s liability insurance on behalf of the Director. |
7.2. | In addition to the responsibilities and duties delineated in Article 1, the Director shall: |
7.2.1. | Indemnify the Company for any damage caused as a result of a breach of Article 5 and/or Article 6 of this Agreement; and |
7.2.2. | Execute his obligations under this Agreement in strict compliance with the laws of the Kingdom of Belgium, and in adherence with the UTC Code of Ethics, UTC Corporate Policy Manual, and the UTC Financial Manual. |
8.1. | The Parties enter into this Agreement effective as of 1 September 2016. |
8.2. | This Agreement shall remain effective for the entire duration of the Director’s mandate and will automatically come to an end upon termination of the mandate. |
8.3. | The Director’s nomination as a member of the Board of Directors is subject to the revocation ad nutum of the General Shareholder’s Meeting of the Company. |
9.1. | The Parties acknowledge that the principle of independence, as defined by Belgian social legislation, constitutes an essential element of this Agreement in absence of which this Agreement would not have been concluded. |
9.2. | The Director shall determine himself how to carry out his duties and shall receive no direct instructions regarding how the work should be organized, except for the general guidelines justified by the necessities of the collaboration between the Parties. Furthermore, the Director shall not be required to provide justification with regard to the time spent, the detailed methods of work or the organization of his work. |
9.3. | The Director shall comply with all tax, social security and legal formalities and obligations, which are imposed on persons performing a self-employed professional activity. In this regard, the Director shall pay the quarterly bill of social security contributions, which will be issued to him by the social insurance fund to which he is affiliated and shall provide the Company with proof of the payment of said contributions during the quarter following the quarter in which the contributions become due. |
9.4. | The Director shall be entitled to bind and represent the Company to the extent authorised under his mandate as Director of the Company. |
12.1. | This Agreement contains the entire understanding of the Parties with respect to its subject matter and supersedes all prior written and oral understandings between the Parties with respect to its subject matter. |
12.2. | This Agreement may not be amended, modified or supplemented except upon the execution and delivery of a written agreement executed by the Parties hereto. |
12.3. | Parties both confirm that neither are under any impediment, whether by law, contractual agreement or otherwise, to entering into this Agreement and fully performing their obligations hereunder. |
Full year | |||||||||||||||||||
(dollars in millions, except per share amounts, shares in thousands) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Net income from continuing operations | $ | 5,065 | $ | 3,996 | $ | 6,066 | $ | 5,265 | $ | 4,337 | |||||||||
Net (loss) income from discontinued operations | (10 | ) | 3,612 | 154 | 456 | 793 | |||||||||||||
Net income attributable to common shareowners | $ | 5,055 | $ | 7,608 | $ | 6,220 | $ | 5,721 | $ | 5,130 | |||||||||
Net income from continuing operations | $ | 5,065 | $ | 3,996 | $ | 6,066 | $ | 5,265 | $ | 4,337 | |||||||||
Basic earnings for period | $ | 5,065 | $ | 3,996 | $ | 6,066 | $ | 5,265 | $ | 4,337 | |||||||||
Diluted earnings for period | $ | 5,065 | $ | 3,996 | $ | 6,066 | $ | 5,265 | $ | 4,337 | |||||||||
Basic average number of shares outstanding during the period | 818,200 | 872,700 | 898,300 | 901,000 | 895,200 | ||||||||||||||
Stock awards (thousands) | 7,900 | 10,500 | 13,300 | 14,100 | 11,400 | ||||||||||||||
Diluted average number of shares outstanding during the period | 826,100 | 883,200 | 911,600 | 915,100 | 906,600 | ||||||||||||||
Basic earnings per common share - continuing operations | $ | 6.19 | $ | 4.58 | $ | 6.75 | $ | 5.84 | $ | 4.84 | |||||||||
Diluted earnings per common share - continuing operations | $ | 6.13 | $ | 4.53 | $ | 6.65 | $ | 5.75 | $ | 4.78 | |||||||||
Net income attributable to common shareowners | $ | 5,055 | $ | 7,608 | $ | 6,220 | $ | 5,721 | $ | 5,130 | |||||||||
Basic earnings for period | $ | 5,055 | $ | 7,608 | $ | 6,220 | $ | 5,721 | $ | 5,130 | |||||||||
Diluted earnings for period | $ | 5,055 | $ | 7,608 | $ | 6,220 | $ | 5,721 | $ | 5,130 | |||||||||
Basic average number of shares outstanding during the period | 818,200 | 872,700 | 898,300 | 901,000 | 895,200 | ||||||||||||||
Stock awards | 7,900 | 10,500 | 13,300 | 14,100 | 11,400 | ||||||||||||||
Diluted average number of shares outstanding during the period | 826,100 | 883,200 | 911,600 | 915,100 | 906,600 | ||||||||||||||
Basic earnings per common share | $ | 6.18 | $ | 8.72 | $ | 6.92 | $ | 6.35 | $ | 5.73 | |||||||||
Diluted earnings per common share | $ | 6.12 | $ | 8.61 | $ | 6.82 | $ | 6.25 | $ | 5.66 |
Full year | |||||||||||||||||||
(dollars in millions) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Fixed Charges: | |||||||||||||||||||
Interest expense 1 | $ | 1,161 | $ | 945 | $ | 1,099 | $ | 1,032 | $ | 893 | |||||||||
Interest capitalized | 34 | 27 | 25 | 22 | 19 | ||||||||||||||
One-third of rents 2 | 129 | 129 | 145 | 142 | 143 | ||||||||||||||
Total fixed charges | $ | 1,324 | $ | 1,101 | $ | 1,269 | $ | 1,196 | $ | 1,055 | |||||||||
Earnings: | |||||||||||||||||||
Income from continuing operations before income taxes | $ | 7,133 | $ | 6,467 | $ | 8,712 | $ | 7,654 | $ | 6,172 | |||||||||
Fixed charges per above | 1,324 | 1,101 | 1,269 | 1,196 | 1,055 | ||||||||||||||
Less: capitalized interest | (34 | ) | (27 | ) | (25 | ) | (22 | ) | (19 | ) | |||||||||
1,290 | 1,074 | 1,244 | 1,174 | 1,036 | |||||||||||||||
Amortization of interest capitalized | 9 | 12 | 12 | 11 | 11 | ||||||||||||||
Total earnings | $ | 8,432 | $ | 7,553 | $ | 9,968 | $ | 8,839 | $ | 7,219 | |||||||||
Ratio of earnings to fixed charges | 6.37 | 6.86 | 7.86 | 7.39 | 6.84 |
1 | Pursuant to the guidance in the Income Taxes Topic of the Financial Accounting Standards Board Accounting Standards Codification, interest related to unrecognized tax benefits recorded was approximately $41 million, $34 million, $179 million, $50 million and $39 million for the years 2016, 2015, 2014, 2013 and 2012, respectively. The ratio of earnings to fixed charges would have been 6.18, 6.65, 6.88, 7.09 and 6.60 for the years 2016, 2015, 2014, 2013 and 2012, respectively, if such interest were excluded from the calculation. |
2 | Reasonable approximation of the interest factor. |
(dollars in millions, except per share amounts) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
For The Year | |||||||||||||||||||
Net sales | $ | 57,244 | $ | 56,098 | $ | 57,900 | $ | 56,600 | $ | 51,101 | |||||||||
Research and development | 2,337 | 2,279 | 2,475 | 2,342 | 2,193 | ||||||||||||||
Restructuring costs | 290 | 396 | 354 | 431 | 537 | ||||||||||||||
Net income from continuing operations 1 | 5,436 | 4,356 | 6,468 | 5,655 | 4,692 | ||||||||||||||
Net income from continuing operations attributable to common shareowners 1 | 5,065 | 3,996 | 6,066 | 5,265 | 4,337 | ||||||||||||||
Basic earnings per share—Net income from continuing operations attributable to common shareowners | 6.19 | 4.58 | 6.75 | 5.84 | 4.84 | ||||||||||||||
Diluted earnings per share—Net income from continuing operations attributable to common shareowners | 6.13 | 4.53 | 6.65 | 5.75 | 4.78 | ||||||||||||||
Cash dividends per common share | 2.62 | 2.56 | 2.36 | 2.20 | 2.03 | ||||||||||||||
Average number of shares of Common Stock outstanding: | |||||||||||||||||||
Basic | 818 | 873 | 898 | 901 | 895 | ||||||||||||||
Diluted | 826 | 883 | 912 | 915 | 907 | ||||||||||||||
Cash flows provided by operating activities of continuing operations | 6,412 | 6,755 | 6,979 | 7,341 | 5,990 | ||||||||||||||
Capital expenditures 2, 3 | 1,699 | 1,652 | 1,594 | 1,569 | 1,295 | ||||||||||||||
Acquisitions, including debt assumed | 712 | 556 | 530 | 151 | 18,620 | ||||||||||||||
Repurchases of Common Stock 4 | 2,254 | 10,000 | 1,500 | 1,200 | — | ||||||||||||||
Dividends paid on Common Stock (excluding ESOP) | 2,069 | 2,184 | 2,048 | 1,908 | 1,752 | ||||||||||||||
At Year End | |||||||||||||||||||
Working capital 3, 5 | $ | 6,644 | $ | 4,088 | $ | 5,921 | $ | 5,733 | $ | 3,948 | |||||||||
Total assets 3 | 89,706 | 87,484 | 86,338 | 85,029 | 83,499 | ||||||||||||||
Long-term debt, including current portion 3, 6 | 23,300 | 19,499 | 19,575 | 19,744 | 22,603 | ||||||||||||||
Total debt 3, 6 | 23,901 | 20,425 | 19,701 | 20,132 | 23,106 | ||||||||||||||
Total debt to total capitalization 6 | 45 | % | 41 | % | 38 | % | 38 | % | 46 | % | |||||||||
Total equity 6, 7 | 29,169 | 28,844 | 32,564 | 33,219 | 27,069 | ||||||||||||||
Number of employees 8 | 201,600 | 197,200 | 211,500 | 212,400 | 218,300 |
Note 1 | 2016 amounts include a $423 million pre-tax pension settlement charge resulting from defined benefit plan de-risking actions. 2015 amounts include pre-tax charges of: $867 million as a result of a settlement with the Canadian government, $295 million from customer contract negotiations at UTC Aerospace Systems, and $237 million related to pending and future asbestos claims. |
Note 2 | Capital expenditures increased from 2012 through 2016 as we expanded capacity to meet expected demand within our aerospace businesses for the next generation engine platforms. |
Note 3 | Excludes assets and liabilities of discontinued operations held for sale, for all periods presented. |
Note 4 | Share repurchases in 2015 include share repurchases under accelerated repurchase agreements of $2.6 billion in the first quarter of 2015 and $6.0 billion in the fourth quarter of 2015. In connection with the acquisition of Goodrich, repurchases of common stock under our share repurchase program were suspended for 2012. We resumed our share repurchase program in 2013. |
Note 5 | Working capital in 2015 includes approximately $2.4 billion of taxes payable related to the gain on the sale of Sikorsky, which were paid in 2016. As compared with 2014, 2015 working capital also reflects the reclassification of current deferred tax assets and liabilities to non-current assets and liabilities in connection with the adoption of Accounting Standards Update 2015-17. |
Note 6 | The increase in the 2016 debt to total capitalization ratio primarily reflects additional borrowings in 2016 to fund share repurchases and for general corporate purposes. The decrease in the 2013 debt to total capitalization ratio, as compared to 2012, reflects the repayment of approximately $2.9 billion of long-term debt, most of which was used to finance the acquisition of Goodrich. |
Note 7 | The decrease in total equity in 2015, as compared with 2014, reflects the sale of Sikorsky and the share repurchase program. The decrease in total equity in 2014, as compared with 2013, reflects unrealized losses of approximately $2.9 billion, net of taxes, associated with the effect of market conditions on our pension plans. |
Note 8 | The decrease in employees in 2015, as compared with 2014, primarily reflects the 2015 divestiture of Sikorsky. |
2016 | 2015 | 2014 | ||||||
Commercial and industrial | 50 | % | 52 | % | 52 | % | ||
Military aerospace and space | 12 | % | 12 | % | 13 | % | ||
Commercial aerospace | 38 | % | 36 | % | 35 | % | ||
100 | % | 100 | % | 100 | % |
2016 | 2015 | 2014 | ||||||
OEM | 54 | % | 56 | % | 56 | % | ||
Aftermarket parts and services | 46 | % | 44 | % | 44 | % | ||
100 | % | 100 | % | 100 | % |
(dollars in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||
Europe | $ | 11,151 | $ | 10,945 | $ | 12,587 | 19 | % | 19 | % | 22 | % | ||||||||
Asia Pacific | 8,260 | 8,425 | 8,746 | 14 | % | 15 | % | 15 | % | |||||||||||
Other Non-U.S. | 5,479 | 5,584 | 5,511 | 9 | % | 10 | % | 9 | % | |||||||||||
U.S. Exports | 10,827 | 9,741 | 10,276 | 19 | % | 17 | % | 18 | % | |||||||||||
International segment sales | $ | 35,717 | $ | 34,695 | $ | 37,120 | 61 | % | 61 | % | 64 | % |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Net sales | $ | 57,244 | $ | 56,098 | $ | 57,900 | |||||
Percentage change year-over-year | 2.0 | % | (3.1 | )% | 2.3 | % |
2016 | 2015 | ||||
Organic volume | 2 | % | 1 | % | |
Foreign currency translation | (1 | )% | (4 | )% | |
Acquisitions and divestitures, net | 1 | % | 1 | % | |
Other | — | (1 | )% | ||
Total % Change | 2 | % | (3 | )% |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Cost of products sold | $ | 30,325 | $ | 29,771 | $ | 30,367 | |||||
Percentage of product sales | 74.4 | % | 74.8 | % | 73.1 | % | |||||
Cost of services sold | $ | 11,135 | $ | 10,660 | $ | 10,531 | |||||
Percentage of service sales | 67.4 | % | 65.4 | % | 64.4 | % | |||||
Total cost of products and services sold | $ | 41,460 | $ | 40,431 | $ | 40,898 | |||||
Percentage change year-over-year | 2.5 | % | (1.1 | )% | 1.1 | % |
2016 | 2015 | ||||
Organic volume | 3 | % | 3 | % | |
Foreign currency translation | (1 | )% | (5 | )% | |
Acquisitions and divestitures, net | 1 | % | 1 | % | |
Restructuring | — | — | |||
Other | — | — | |||
Total % Change | 3 | % | (1 | )% |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Gross margin | $ | 15,784 | $ | 15,667 | $ | 17,002 | |||||
Percentage of net sales | 27.6 | % | 27.9 | % | 29.4 | % |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Company-funded | $ | 2,337 | $ | 2,279 | $ | 2,475 | |||||
Percentage of net sales | 4.1 | % | 4.1 | % | 4.3 | % | |||||
Customer-funded | $ | 1,389 | $ | 1,589 | $ | 1,997 | |||||
Percentage of net sales | 2.4 | % | 2.8 | % | 3.4 | % |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Selling, general and administrative | $ | 6,060 | $ | 5,886 | $ | 6,172 | |||||
Percentage of net sales | 10.6 | % | 10.5 | % | 10.7 | % |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Other (expense) income, net | $ | 785 | $ | (211 | ) | $ | 1,238 |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Joint venture income | $ | 230 | $ | 207 | $ | 284 | |||||
Licensing and royalty income | 98 | 122 | 158 | ||||||||
Gain on sale of marketable equity securities | 101 | 55 | 31 | ||||||||
Charge related to a Canadian government settlement | — | (867 | ) | — | |||||||
Charge for pending and future asbestos claims | — | (237 | ) | — | |||||||
Impairment of certain UTC Aerospace System assets held for sale | (8 | ) | (61 | ) | — | ||||||
Gain on re-measurement to fair value of previously held equity interest in UTC Climate, Controls & Security joint venture investments | — | 126 | — | ||||||||
(Charge) gain from a state taxing authority agreement for monetization of tax credits | — | (27 | ) | 220 | |||||||
Net gain primarily from fair value adjustments related to acquisition of majority interest in a Pratt & Whitney joint venture | — | — | 83 | ||||||||
Charge to adjust the fair value of a Pratt & Whitney joint venture investment | — | — | (60 | ) | |||||||
UTC Climate, Controls, & Security portfolio transformation gain | — | — | 30 | ||||||||
Other activity, net | 364 | 471 | 492 | ||||||||
$ | 785 | $ | (211 | ) | $ | 1,238 |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Interest expense | $ | 1,161 | $ | 945 | $ | 1,099 | |||||
Interest income | (122 | ) | (121 | ) | (218 | ) | |||||
Interest expense, net | $ | 1,039 | $ | 824 | $ | 881 | |||||
Average interest expense rate - average outstanding borrowings during the year: | |||||||||||
Short-term borrowings | 1.3 | % | 0.6 | % | 0.8 | % | |||||
Total debt | 4.1 | % | 4.1 | % | 4.3 | % | |||||
Average interest expense rate - outstanding borrowings as of December 31: | |||||||||||
Short-term borrowings | 0.6 | % | 0.8 | % | 5.7 | % | |||||
Total debt | 3.7 | % | 4.4 | % | 4.6 | % |
2016 | 2015 | 2014 | ||||||
Effective income tax rate | 23.8 | % | 32.6 | % | 25.8 | % |
(dollars in millions, except per share amounts) | 2016 | 2015 | 2014 | ||||||||
Net income attributable to common shareowners from continuing operations | $ | 5,065 | $ | 3,996 | $ | 6,066 | |||||
Diluted earnings per share from continuing operations | $ | 6.13 | $ | 4.53 | $ | 6.65 |
(dollars in millions, except per share amounts) | 2016 | 2015 | 2014 | ||||||||
Net (loss) income attributable to common shareowners from discontinued operations | $ | (10 | ) | $ | 3,612 | $ | 154 | ||||
Diluted earnings per share from discontinued operations | $ | (0.01 | ) | $ | 4.09 | $ | 0.17 |
(dollars in millions) | 2016 | 2015 | 2014 | |||||||||
Restructuring costs included within continuing operations | $ | 290 | $ | 396 | $ | 354 | ||||||
Restructuring costs included within discontinued operations | — | 139 | 14 | |||||||||
Restructuring costs | $ | 290 | $ | 535 | $ | 368 |
Net Sales | Operating Profits | Operating Profit Margin | ||||||||||||||||||||||||||||||
(dollars in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||||||
Otis | $ | 11,893 | $ | 11,980 | $ | 12,982 | $ | 2,147 | $ | 2,338 | $ | 2,640 | 18.1 | % | 19.5 | % | 20.3 | % | ||||||||||||||
UTC Climate, Controls & Security | 16,851 | 16,707 | 16,823 | 2,956 | 2,936 | 2,782 | 17.5 | % | 17.6 | % | 16.5 | % | ||||||||||||||||||||
Pratt & Whitney | 14,894 | 14,082 | 14,508 | 1,545 | 861 | 2,000 | 10.4 | % | 6.1 | % | 13.8 | % | ||||||||||||||||||||
UTC Aerospace Systems | 14,465 | 14,094 | 14,215 | 2,298 | 1,888 | 2,355 | 15.9 | % | 13.4 | % | 16.6 | % | ||||||||||||||||||||
Total segment | 58,103 | 56,863 | 58,528 | 8,946 | 8,023 | 9,777 | 15.4 | % | 14.1 | % | 16.7 | % | ||||||||||||||||||||
Eliminations and other | (859 | ) | (765 | ) | (628 | ) | (368 | ) | (268 | ) | 304 | |||||||||||||||||||||
General corporate expenses | — | — | — | (406 | ) | (464 | ) | (488 | ) | |||||||||||||||||||||||
Consolidated | $ | 57,244 | $ | 56,098 | $ | 57,900 | $ | 8,172 | $ | 7,291 | $ | 9,593 | 14.3 | % | 13.0 | % | 16.6 | % |
2016 | 2015 | ||||
Otis | 75 | % | 77 | % | |
UTC Climate, Controls & Security | 55 | % | 56 | % |
Total Increase (Decrease) Year-Over-Year for: | |||||||||||||||||||||||||
(dollars in millions) | 2016 | 2015 | 2014 | 2016 Compared with 2015 | 2015 Compared with 2014 | ||||||||||||||||||||
Net Sales | $ | 11,893 | $ | 11,980 | $ | 12,982 | $ | (87 | ) | (1 | )% | $ | (1,002 | ) | (8 | )% | |||||||||
Cost of Sales | 8,072 | 8,122 | 8,756 | (50 | ) | (1 | )% | (634 | ) | (7 | )% | ||||||||||||||
3,821 | 3,858 | 4,226 | |||||||||||||||||||||||
Operating Expenses and Other | 1,674 | 1,520 | 1,586 | ||||||||||||||||||||||
Operating Profits | $ | 2,147 | $ | 2,338 | $ | 2,640 | $ | (191 | ) | (8 | )% | $ | (302 | ) | (11 | )% |
Factors Contributing to Total % Increase (Decrease) Year-Over-Year in: | |||||||||||||||||
2016 | 2015 | ||||||||||||||||
Net Sales | Cost of Sales | Operating Profits | Net Sales | Cost of Sales | Operating Profits | ||||||||||||
Organic / Operational | 1 | % | 2 | % | (7 | )% | 1 | % | 3 | % | (2 | )% | |||||
Foreign currency translation | (2 | )% | (3 | )% | (2 | )% | (9 | )% | (10 | )% | (9 | )% | |||||
Acquisitions and divestitures, net | — | — | — | — | — | — | |||||||||||
Restructuring costs | — | — | — | — | — | 1 | % | ||||||||||
Other | — | — | 1 | % | — | — | (1 | )% | |||||||||
Total % change | (1 | )% | (1 | )% | (8 | )% | (8 | )% | (7 | )% | (11 | )% |
Total Increase (Decrease) Year-Over-Year for: | |||||||||||||||||||||||||
(dollars in millions) | 2016 | 2015 | 2014 | 2016 Compared with 2015 | 2015 Compared with 2014 | ||||||||||||||||||||
Net Sales | $ | 16,851 | $ | 16,707 | $ | 16,823 | $ | 144 | 1 | % | $ | (116 | ) | (1 | )% | ||||||||||
Cost of Sales | 11,700 | 11,611 | 11,707 | 89 | 1 | % | (96 | ) | (1 | )% | |||||||||||||||
5,151 | 5,096 | 5,116 | |||||||||||||||||||||||
Operating Expenses and Other | 2,195 | 2,160 | 2,334 | ||||||||||||||||||||||
Operating Profits | $ | 2,956 | $ | 2,936 | $ | 2,782 | $ | 20 | 1 | % | $ | 154 | 6 | % |
Factors Contributing to Total % Increase (Decrease) Year-Over-Year in: | |||||||||||||||||
2016 | 2015 | ||||||||||||||||
Net Sales | Cost of Sales | Operating Profits | Net Sales | Cost of Sales | Operating Profits | ||||||||||||
Organic / Operational | (1 | )% | (1 | )% | 5 | % | 3 | % | 3 | % | 6 | % | |||||
Foreign currency translation | (1 | )% | (1 | )% | (1 | )% | (6 | )% | (6 | )% | (5 | )% | |||||
Acquisitions and divestitures, net | 3 | % | 3 | % | 1 | % | 2 | % | 2 | % | — | ||||||
Restructuring costs | — | — | 1 | % | — | — | — | ||||||||||
Other | — | — | (5 | )% | — | — | 5 | % | |||||||||
Total % change | 1 | % | 1 | % | 1 | % | (1 | )% | (1 | )% | 6 | % |
Total Increase (Decrease) Year-Over-Year for: | |||||||||||||||||||||||||
(dollars in millions) | 2016 | 2015 | 2014 | 2016 Compared with 2015 | 2015 Compared with 2014 | ||||||||||||||||||||
Net Sales | $ | 14,894 | $ | 14,082 | $ | 14,508 | $ | 812 | 6 | % | $ | (426 | ) | (3 | )% | ||||||||||
Cost of Sales | 11,805 | 10,910 | 10,926 | 895 | 8 | % | (16 | ) | — | ||||||||||||||||
3,089 | 3,172 | 3,582 | |||||||||||||||||||||||
Operating Expenses and Other | 1,544 | 2,311 | 1,582 | ||||||||||||||||||||||
Operating Profits | $ | 1,545 | $ | 861 | $ | 2,000 | $ | 684 | 79 | % | $ | (1,139 | ) | (57 | )% |
Factors Contributing to Total % Increase (Decrease) Year-Over-Year in: | |||||||||||||||||
2016 | 2015 | ||||||||||||||||
Net Sales | Cost of Sales | Operating Profits | Net Sales | Cost of Sales | Operating Profits | ||||||||||||
Organic* / Operational* | 6 | % | 9 | % | (28 | )% | (1 | )% | 2 | % | (12 | )% | |||||
Foreign currency (including P&WC net hedging)* | — | (1 | )% | 10 | % | (1 | )% | (2 | )% | 3 | % | ||||||
Acquisitions and divestitures, net | — | — | — | — | 1 | % | 1 | % | |||||||||
Restructuring costs | — | — | (1 | )% | — | — | (2 | )% | |||||||||
Other | — | — | 98 | % | (1 | )% | (1 | )% | (47 | )% | |||||||
Total % change | 6 | % | 8 | % | 79 | % | (3 | )% | — | (57 | )% |
* | As discussed further in the "Business Overview" and "Results of Operations" sections, for Pratt & Whitney only, the transactional impact of foreign exchange hedging at P&WC has been netted against the translational foreign exchange impact for presentation purposes in the above table. For all other segments, these foreign exchange transactional impacts are included within the organic sales/operational operating profit caption in their respective tables. Due to its significance to Pratt & Whitney's overall operating results, we believe it is useful to segregate the foreign exchange transactional impact in order to clearly identify the underlying financial performance. |
Total Increase (Decrease) Year-Over-Year for: | |||||||||||||||||||||||||
(dollars in millions) | 2016 | 2015 | 2014 | 2016 Compared with 2015 | 2015 Compared with 2014 | ||||||||||||||||||||
Net Sales | $ | 14,465 | $ | 14,094 | $ | 14,215 | $ | 371 | 3 | % | $ | (121 | ) | (1 | )% | ||||||||||
Cost of Sales | 10,607 | 10,533 | 10,192 | 74 | 1 | % | 341 | 3 | % | ||||||||||||||||
3,858 | 3,561 | 4,023 | |||||||||||||||||||||||
Operating Expenses and Other | 1,560 | 1,673 | 1,668 | ||||||||||||||||||||||
Operating Profits | $ | 2,298 | $ | 1,888 | $ | 2,355 | $ | 410 | 22 | % | $ | (467 | ) | (20 | )% |
Factors Contributing to Total % Increase (Decrease) Year-Over-Year in: | |||||||||||||||||
2016 | 2015 | ||||||||||||||||
Net Sales | Cost of Sales | Operating Profits | Net Sales | Cost of Sales | Operating Profits | ||||||||||||
Organic / Operational | 2 | % | 3 | % | (3 | )% | 3 | % | 6 | % | (6 | )% | |||||
Foreign currency translation | — | (1 | )% | 3 | % | (2 | )% | (3 | )% | 2 | % | ||||||
Acquisitions and divestitures, net | — | — | — | (1 | )% | (1 | )% | — | |||||||||
Restructuring costs | — | — | 3 | % | — | — | (1 | )% | |||||||||
Other | 1 | % | (1 | )% | 19 | % | (1 | )% | 1 | % | (15 | )% | |||||
Total % change | 3 | % | 1 | % | 22 | % | (1 | )% | 3 | % | (20 | )% |
Net Sales | Operating Profits | ||||||||||||||||||||||
(dollars in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||
Eliminations and other | $ | (859 | ) | $ | (765 | ) | $ | (628 | ) | $ | (368 | ) | $ | (268 | ) | $ | 304 | ||||||
General corporate expenses | — | — | — | (406 | ) | (464 | ) | (488 | ) |
(dollars in millions) | 2016 | 2015 | |||||
Cash and cash equivalents | $ | 7,157 | $ | 7,075 | |||
Total debt | 23,901 | 20,425 | |||||
Net debt (total debt less cash and cash equivalents) | 16,744 | 13,350 | |||||
Total equity | 29,169 | 28,844 | |||||
Total capitalization (total debt plus total equity) | 53,070 | 49,269 | |||||
Net capitalization (total debt plus total equity less cash and cash equivalents) | 45,913 | 42,194 | |||||
Total debt to total capitalization | 45 | % | 41 | % | |||
Net debt to net capitalization | 36 | % | 32 | % |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Net cash flows provided by operating activities of continuing operations | $ | 6,412 | $ | 6,755 | $ | 6,979 |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Net cash flows used in investing activities of continuing operations | $ | (2,509 | ) | $ | (2,794 | ) | $ | (1,967 | ) |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Net cash flows used in financing activities of continuing operations | $ | (1,188 | ) | $ | (10,776 | ) | $ | (4,249 | ) |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Net cash flows (used in) provided by discontinued operations | $ | (2,526 | ) | $ | 8,619 | $ | 217 |
(dollars in millions) | Increase in Discount Rate of 25 bps | Decrease in Discount Rate of 25 bps | ||||||
Pension plans | ||||||||
Projected benefit obligation | $ | (976 | ) | $ | 1,029 | |||
Net periodic pension cost | (70 | ) | 75 | |||||
Other postretirement benefit plans | ||||||||
Accumulated postretirement benefit obligation | (14 | ) | 15 | |||||
Net periodic postretirement benefit cost | (1 | ) | 1 |
Payments Due by Period | ||||||||||||||||||||
(dollars in millions) | Total | 2017 | 2018-2019 | 2020-2021 | Thereafter | |||||||||||||||
Long-term debt—principal | $ | 23,299 | $ | 1,603 | $ | 3,311 | $ | 3,494 | $ | 14,891 | ||||||||||
Long-term debt—future interest | 13,287 | 855 | 1,637 | 1,424 | 9,371 | |||||||||||||||
Operating leases | 2,094 | 462 | 640 | 354 | 638 | |||||||||||||||
Purchase obligations | 13,882 | 8,145 | 5,034 | 631 | 72 | |||||||||||||||
Other long-term liabilities | 3,731 | 1,126 | 1,382 | 404 | 819 | |||||||||||||||
Total contractual obligations | $ | 56,293 | $ | 12,191 | $ | 12,004 | $ | 6,307 | $ | 25,791 |
Amount of Commitment Expiration per Period | ||||||||||||||||||||
(dollars in millions) | Committed | 2017 | 2018-2019 | 2020-2021 | Thereafter | |||||||||||||||
Commercial aerospace financing commitments | $ | 2,358 | $ | 435 | $ | 937 | $ | 641 | $ | 345 | ||||||||||
Other commercial aerospace commitments | 12,063 | 860 | 1,711 | 1,436 | 8,056 | |||||||||||||||
Commercial aerospace financing arrangements | 348 | 8 | 2 | 21 | 317 | |||||||||||||||
Credit facilities and debt obligations (expire 2017 to 2028) | 270 | 252 | 6 | — | 12 | |||||||||||||||
Performance guarantees | 55 | 7 | — | 39 | 9 | |||||||||||||||
Total commercial commitments | $ | 15,094 | $ | 1,562 | $ | 2,656 | $ | 2,137 | $ | 8,739 |
• | the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; |
• | challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; |
• | future levels of indebtedness and capital spending and research and development spending; |
• | future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; |
• | the timing and scope of future repurchases of our common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash; |
• | delays and disruption in delivery of materials and services from suppliers; |
• | company and customer- directed cost reduction efforts and restructuring costs and savings and other consequences thereof; |
• | the scope, nature, impact or timing of acquisition and divestiture activity, including among other things integration of acquired businesses into our existing businesses and realization of synergies and opportunities for growth and innovation; |
• | new business opportunities; |
• | our ability to realize the intended benefits of organizational changes; |
• | the anticipated benefits of diversification and balance of operations across product lines, regions and industries; |
• | the outcome of legal proceedings, investigations and other contingencies; |
• | pension plan assumptions and future contributions; |
• | the impact of the negotiation of collective bargaining agreements and labor disputes; |
• | the effect of changes in political conditions in the U.S. and other countries in which we operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; and |
• | the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which we operate. |
/s/ Gregory J. Hayes | |
Gregory J. Hayes | |
Chairman, President and Chief Executive Officer | |
/s/ Akhil Johri | |
Akhil Johri | |
Executive Vice President & Chief Financial Officer | |
/s/ Robert J. Bailey | |
Robert J. Bailey | |
Corporate Vice President, Controller |
(dollars in millions, except per share amounts; shares in millions) | 2016 | 2015 | 2014 | |||||||||
Net Sales: | ||||||||||||
Product sales | $ | 40,735 | $ | 39,801 | $ | 41,545 | ||||||
Service sales | 16,509 | 16,297 | 16,355 | |||||||||
57,244 | 56,098 | 57,900 | ||||||||||
Costs and Expenses: | ||||||||||||
Cost of products sold | 30,325 | 29,771 | 30,367 | |||||||||
Cost of services sold | 11,135 | 10,660 | 10,531 | |||||||||
Research and development | 2,337 | 2,279 | 2,475 | |||||||||
Selling, general and administrative | 6,060 | 5,886 | 6,172 | |||||||||
49,857 | 48,596 | 49,545 | ||||||||||
Other income (expense), net | 785 | (211 | ) | 1,238 | ||||||||
Operating profit | 8,172 | 7,291 | 9,593 | |||||||||
Interest expense, net | 1,039 | 824 | 881 | |||||||||
Income from continuing operations before income taxes | 7,133 | 6,467 | 8,712 | |||||||||
Income tax expense | 1,697 | 2,111 | 2,244 | |||||||||
Net income from continuing operations | 5,436 | 4,356 | 6,468 | |||||||||
Less: Noncontrolling interest in subsidiaries' earnings from continuing operations | 371 | 360 | 402 | |||||||||
Income from continuing operations attributable to common shareowners | 5,065 | 3,996 | 6,066 | |||||||||
Discontinued operations (Note 3): | ||||||||||||
Income from operations | 1 | 252 | 175 | |||||||||
Gain on disposal | 13 | 6,042 | — | |||||||||
Income tax expense | (24 | ) | (2,684 | ) | (20 | ) | ||||||
Net (loss) income from discontinued operations | (10 | ) | 3,610 | 155 | ||||||||
Less: Noncontrolling interest in subsidiaries' (loss) earnings from discontinued operations | — | (2 | ) | 1 | ||||||||
(Loss) Income from discontinued operations attributable to common shareowners | (10 | ) | 3,612 | 154 | ||||||||
Net income attributable to common shareowners | $ | 5,055 | $ | 7,608 | $ | 6,220 | ||||||
Earnings Per Share of Common Stock—Basic: | ||||||||||||
Net income from continuing operations attributable to common shareowners | $ | 6.19 | $ | 4.58 | $ | 6.75 | ||||||
Net income attributable to common shareowners | $ | 6.18 | $ | 8.72 | $ | 6.92 | ||||||
Earnings Per Share of Common Stock—Diluted: | ||||||||||||
Net income from continuing operations attributable to common shareowners | $ | 6.13 | $ | 4.53 | $ | 6.65 | ||||||
Net income attributable to common shareowners | $ | 6.12 | $ | 8.61 | $ | 6.82 | ||||||
Dividends Per Share of Common Stock | $ | 2.62 | $ | 2.56 | $ | 2.36 | ||||||
Weighted average number of shares outstanding: | ||||||||||||
Basic shares | 818.2 | 872.7 | 898.3 | |||||||||
Diluted shares | 826.1 | 883.2 | 911.6 |
(dollars in millions) | 2016 | 2015 | 2014 | |||||||||
Net income from continuing operations | $ | 5,436 | $ | 4,356 | $ | 6,468 | ||||||
Net (loss) income from discontinued operations | (10 | ) | 3,610 | 155 | ||||||||
Net income | 5,426 | 7,966 | 6,623 | |||||||||
Other comprehensive loss, net of tax | ||||||||||||
Foreign currency translation adjustments | ||||||||||||
Foreign currency translation adjustments arising during period | (1,089 | ) | (1,502 | ) | (1,302 | ) | ||||||
Reclassification adjustments from sale of an investment in a foreign entity recognized in net income | — | 42 | 7 | |||||||||
(1,089 | ) | (1,460 | ) | (1,295 | ) | |||||||
Pension and postretirement benefit plans | ||||||||||||
Net actuarial loss arising during period | (785 | ) | (284 | ) | (4,362 | ) | ||||||
Prior service cost arising during period | (13 | ) | (37 | ) | (5 | ) | ||||||
Other | 542 | 326 | 121 | |||||||||
Amortization of actuarial loss and prior service cost | 535 | 867 | 416 | |||||||||
279 | 872 | (3,830 | ) | |||||||||
Tax (expense) benefit | (189 | ) | (298 | ) | 1,388 | |||||||
90 | 574 | (2,442 | ) | |||||||||
Unrealized gain (loss) on available-for-sale securities | ||||||||||||
Unrealized holding gain arising during period | 190 | 28 | 35 | |||||||||
Reclassification adjustments for gain included in Other income, net | (94 | ) | (54 | ) | (20 | ) | ||||||
96 | (26 | ) | 15 | |||||||||
Tax (expense) benefit | (36 | ) | 11 | (3 | ) | |||||||
60 | (15 | ) | 12 | |||||||||
Change in unrealized cash flow hedging | ||||||||||||
Unrealized cash flow hedging gain (loss) arising during period | 75 | (415 | ) | (263 | ) | |||||||
Loss reclassified into Product sales | 171 | 234 | 96 | |||||||||
246 | (181 | ) | (167 | ) | ||||||||
Tax (expense) benefit | (69 | ) | 51 | 37 | ||||||||
177 | (130 | ) | (130 | ) | ||||||||
Other comprehensive loss, net of tax | (762 | ) | (1,031 | ) | (3,855 | ) | ||||||
Comprehensive income | 4,664 | 6,935 | 2,768 | |||||||||
Less: comprehensive income attributable to noncontrolling interest | (324 | ) | (285 | ) | (329 | ) | ||||||
Comprehensive income attributable to common shareowners | $ | 4,340 | $ | 6,650 | $ | 2,439 |
(dollars in millions, except per share amounts; shares in thousands) | 2016 | 2015 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 7,157 | $ | 7,075 | ||||
Accounts receivable (net of allowance for doubtful accounts of $450 and $504) | 11,481 | 10,653 | ||||||
Inventories and contracts in progress, net | 8,704 | 8,135 | ||||||
Other assets, current | 1,208 | 843 | ||||||
Total Current Assets | 28,550 | 26,706 | ||||||
Customer financing assets | 1,398 | 1,018 | ||||||
Future income tax benefits | 1,809 | 1,961 | ||||||
Fixed assets, net | 9,158 | 8,732 | ||||||
Goodwill | 27,059 | 27,301 | ||||||
Intangible assets, net | 15,684 | 15,603 | ||||||
Other assets | 6,048 | 6,163 | ||||||
Total Assets | $ | 89,706 | $ | 87,484 | ||||
Liabilities and Equity | ||||||||
Short-term borrowings | $ | 601 | $ | 926 | ||||
Accounts payable | 7,483 | 6,875 | ||||||
Accrued liabilities | 12,219 | 14,638 | ||||||
Long-term debt currently due | 1,603 | 179 | ||||||
Total Current Liabilities | 21,906 | 22,618 | ||||||
Long-term debt | 21,697 | 19,320 | ||||||
Future pension and postretirement benefit obligations | 5,612 | 6,022 | ||||||
Other long-term liabilities | 11,026 | 10,558 | ||||||
Total Liabilities | 60,241 | 58,518 | ||||||
Commitments and contingent liabilities (Notes 5 and 18) | ||||||||
Redeemable noncontrolling interest | 296 | 122 | ||||||
Shareowners’ Equity: | ||||||||
Capital Stock: | ||||||||
Preferred Stock, $1 par value; 250,000 shares authorized; None issued or outstanding | — | — | ||||||
Common Stock, $1 par value; 4,000,000 shares authorized; 1,440,982 and 1,438,497 shares issued | 17,285 | 16,033 | ||||||
Treasury Stock— 632,281 and 600,153 common shares at average cost | (34,150 | ) | (30,907 | ) | ||||
Retained earnings | 52,873 | 49,956 | ||||||
Unearned ESOP shares | (95 | ) | (105 | ) | ||||
Total Accumulated other comprehensive loss | (8,334 | ) | (7,619 | ) | ||||
Total Shareowners’ Equity | 27,579 | 27,358 | ||||||
Noncontrolling interest | 1,590 | 1,486 | ||||||
Total Equity | 29,169 | 28,844 | ||||||
Total Liabilities and Equity | $ | 89,706 | $ | 87,484 |
(dollars in millions) | 2016 | 2015 | 2014 | |||||||||
Operating Activities of Continuing Operations: | ||||||||||||
Income from continuing operations | $ | 5,436 | $ | 4,356 | $ | 6,468 | ||||||
Adjustments to reconcile income from continuing operations to net cash flows provided by operating activities of continuing operations: | ||||||||||||
Depreciation and amortization | 1,962 | 1,863 | 1,820 | |||||||||
Deferred income tax provision | 398 | 662 | 403 | |||||||||
Stock compensation cost | 152 | 158 | 219 | |||||||||
Canadian government settlement | (237 | ) | 867 | — | ||||||||
Change in: | ||||||||||||
Accounts receivable | (941 | ) | (438 | ) | 111 | |||||||
Inventories and contracts in progress | (719 | ) | (766 | ) | (636 | ) | ||||||
Other current assets | 49 | (55 | ) | (115 | ) | |||||||
Accounts payable and accrued liabilities | 450 | 490 | (89 | ) | ||||||||
Global pension contributions | (303 | ) | (147 | ) | (517 | ) | ||||||
Other operating activities, net | 165 | (235 | ) | (685 | ) | |||||||
Net cash flows provided by operating activities of continuing operations | 6,412 | 6,755 | 6,979 | |||||||||
Investing Activities of Continuing Operations: | ||||||||||||
Capital expenditures | (1,699 | ) | (1,652 | ) | (1,594 | ) | ||||||
Increase in customer financing assets | (438 | ) | (364 | ) | (202 | ) | ||||||
Decrease in customer financing assets | 217 | 117 | 331 | |||||||||
Investments in businesses | (710 | ) | (538 | ) | (402 | ) | ||||||
Dispositions of businesses | 211 | 200 | 344 | |||||||||
Increase in collaboration intangible assets | (388 | ) | (437 | ) | (593 | ) | ||||||
Receipts from settlements of derivative contracts | 249 | 160 | 93 | |||||||||
Other investing activities, net | 49 | (280 | ) | 56 | ||||||||
Net cash flows used in investing activities of continuing operations | (2,509 | ) | (2,794 | ) | (1,967 | ) | ||||||
Financing Activities of Continuing Operations: | ||||||||||||
Issuance of long-term debt | 6,469 | 1,744 | 98 | |||||||||
Repayment of long-term debt | (2,452 | ) | (1,764 | ) | (304 | ) | ||||||
(Decrease) increase in short-term borrowings, net | (331 | ) | 795 | (346 | ) | |||||||
Proceeds from Common Stock issuance - equity unit settlement | — | 1,100 | — | |||||||||
Proceeds from Common Stock issued under employee stock plans | 13 | 41 | 187 | |||||||||
Dividends paid on Common Stock | (2,069 | ) | (2,184 | ) | (2,048 | ) | ||||||
Repurchase of Common Stock | (2,254 | ) | (10,000 | ) | (1,500 | ) | ||||||
Other financing activities, net | (564 | ) | (508 | ) | (336 | ) | ||||||
Net cash flows used in financing activities of continuing operations | (1,188 | ) | (10,776 | ) | (4,249 | ) | ||||||
Discontinued Operations: | ||||||||||||
Net cash (used in) provided by operating activities | (2,532 | ) | (372 | ) | 342 | |||||||
Net cash provided by (used in) investing activities | 6 | 9,000 | (113 | ) | ||||||||
Net cash used in financing activities | — | (9 | ) | (12 | ) | |||||||
Net cash flows (used in) provided by discontinued operations | (2,526 | ) | 8,619 | 217 | ||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | (120 | ) | (174 | ) | (156 | ) | ||||||
Net increase in cash, cash equivalents and restricted cash | 69 | 1,630 | 824 | |||||||||
Cash, cash equivalents and restricted cash, beginning of year | 7,120 | 5,490 | 4,666 | |||||||||
Cash, cash equivalents and restricted cash, end of year | 7,189 | 7,120 | 5,490 | |||||||||
Less: Cash and cash equivalents of businesses held for sale | — | — | 6 | |||||||||
Less: Restricted cash, included in Other assets | 32 | 45 | 255 | |||||||||
Cash and cash equivalents of continuing operations, end of year | $ | 7,157 | $ | 7,075 | $ | 5,229 | ||||||
Supplemental Disclosure of Cash Flow Information: | ||||||||||||
Interest paid, net of amounts capitalized | $ | 1,157 | $ | 1,057 | $ | 1,076 | ||||||
Income taxes paid, net of refunds | $ | 4,096 | $ | 2,060 | $ | 2,024 | ||||||
Noncash investing and financing activities include: | ||||||||||||
Contributions of UTC Common Stock to domestic defined benefit pension plans | $ | — | $ | 250 | $ | — |
(dollars in millions) | ||||
Common Stock | ||||
Balance at December 31, 2013 | $ | 14,764 | ||
Comprehensive income (loss): | ||||
Net income | ||||
Redeemable noncontrolling interest in subsidiaries’ earnings | ||||
Other comprehensive loss, net of tax | ||||
Common Stock issued under employee plans (6.2 million shares), net of tax benefit of $103 | 607 | |||
Common Stock repurchased (13.5 million shares) | ||||
Dividends on Common Stock | ||||
Dividends on ESOP Common Stock | ||||
Dividends attributable to noncontrolling interest | ||||
Purchase of subsidiary shares from noncontrolling interest | (75 | ) | ||
Sale of subsidiary shares in noncontrolling interest | 4 | |||
Redeemable noncontrolling interest reclassification to noncontrolling interest | ||||
Other | ||||
Balance at December 31, 2014 | $ | 15,300 | ||
Comprehensive income (loss): | ||||
Net income | ||||
Redeemable noncontrolling interest in subsidiaries’ earnings | ||||
Other comprehensive loss, net of tax | ||||
Common Stock issued - equity unit settlement (11.3 million shares) | 1,100 | |||
Common Stock issued under employee plans (3.7 million shares), net of tax benefit of $64 | 379 | |||
Common Stock contributed to defined benefit pension plans (2.7 million shares) | 112 | |||
Common Stock repurchased (88.7 million shares) | (870 | ) | ||
Dividends on Common Stock | ||||
Dividends on ESOP Common Stock | ||||
Dividends attributable to noncontrolling interest | ||||
Purchase of subsidiary shares from noncontrolling interest | (12 | ) | ||
Sale of subsidiary shares in noncontrolling interest | 24 | |||
Acquisition of noncontrolling interest | ||||
Disposition of noncontrolling interest | ||||
Redeemable noncontrolling interest fair value adjustment | ||||
Balance at December 31, 2015 | $ | 16,033 | ||
Comprehensive income (loss): | ||||
Net income | ||||
Redeemable noncontrolling interest in subsidiaries’ earnings | ||||
Other comprehensive loss, net of tax | ||||
Common Stock issued under employee plans (2.5 million shares) | 262 | |||
Common Stock repurchased (32.3 million shares) | 998 | |||
Dividends on Common Stock | ||||
Dividends on ESOP Common Stock | ||||
Dividends attributable to noncontrolling interest | ||||
Purchase of subsidiary shares from noncontrolling interest | (8 | ) | ||
Sale of subsidiary shares in noncontrolling interest | ||||
Acquisition of noncontrolling interest | ||||
Redeemable noncontrolling interest fair value adjustment | ||||
Redeemable noncontrolling interest reclassification to noncontrolling interest | ||||
Other | ||||
Balance at December 31, 2016 | $ | 17,285 |
Shareowners' Equity | ||||||||||||||||||||||||||
Treasury Stock | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest | Total Equity | Redeemable Noncontrolling Interest | ||||||||||||||||||||
$ | (20,431 | ) | $ | 40,539 | $ | (126 | ) | $ | (2,880 | ) | $ | 1,353 | $ | 33,219 | $ | 111 | ||||||||||
6,220 | 403 | 6,623 | ||||||||||||||||||||||||
(9 | ) | (9 | ) | 9 | ||||||||||||||||||||||
(3,781 | ) | (67 | ) | (3,848 | ) | (7 | ) | |||||||||||||||||||
9 | (29 | ) | 11 | 598 | ||||||||||||||||||||||
(1,500 | ) | (1,500 | ) | |||||||||||||||||||||||
(2,048 | ) | (2,048 | ) | |||||||||||||||||||||||
(71 | ) | (71 | ) | |||||||||||||||||||||||
(318 | ) | (318 | ) | (3 | ) | |||||||||||||||||||||
(18 | ) | (93 | ) | |||||||||||||||||||||||
11 | 15 | |||||||||||||||||||||||||
(16 | ) | (16 | ) | 16 | ||||||||||||||||||||||
12 | 12 | 14 | ||||||||||||||||||||||||
$ | (21,922 | ) | $ | 44,611 | $ | (115 | ) | $ | (6,661 | ) | $ | 1,351 | $ | 32,564 | $ | 140 | ||||||||||
7,608 | 358 | 7,966 | ||||||||||||||||||||||||
(4 | ) | (4 | ) | 4 | ||||||||||||||||||||||
(958 | ) | (61 | ) | (1,019 | ) | (12 | ) | |||||||||||||||||||
1,100 | ||||||||||||||||||||||||||
7 | (2 | ) | 10 | 394 | ||||||||||||||||||||||
138 | 250 | |||||||||||||||||||||||||
(9,130 | ) | (10,000 | ) | |||||||||||||||||||||||
(2,184 | ) | (2,184 | ) | |||||||||||||||||||||||
(75 | ) | (75 | ) | |||||||||||||||||||||||
(337 | ) | (337 | ) | (3 | ) | |||||||||||||||||||||
(5 | ) | (17 | ) | (9 | ) | |||||||||||||||||||||
15 | 39 | |||||||||||||||||||||||||
173 | 173 | |||||||||||||||||||||||||
(4 | ) | (4 | ) | |||||||||||||||||||||||
(2 | ) | (2 | ) | 2 | ||||||||||||||||||||||
$ | (30,907 | ) | $ | 49,956 | $ | (105 | ) | $ | (7,619 | ) | $ | 1,486 | $ | 28,844 | $ | 122 | ||||||||||
5,055 | 371 | 5,426 | ||||||||||||||||||||||||
(6 | ) | (6 | ) | 6 | ||||||||||||||||||||||
(715 | ) | (27 | ) | (742 | ) | (20 | ) | |||||||||||||||||||
9 | 10 | 281 | ||||||||||||||||||||||||
(3,252 | ) | (2,254 | ) | |||||||||||||||||||||||
(2,069 | ) | (2,069 | ) | |||||||||||||||||||||||
(74 | ) | (74 | ) | |||||||||||||||||||||||
(345 | ) | (345 | ) | (2 | ) | |||||||||||||||||||||
(1 | ) | (9 | ) | (4 | ) | |||||||||||||||||||||
25 | 25 | |||||||||||||||||||||||||
98 | 98 | 189 | ||||||||||||||||||||||||
(1 | ) | (1 | ) | 1 | ||||||||||||||||||||||
(12 | ) | (12 | ) | 12 | ||||||||||||||||||||||
6 | 1 | 7 | (8 | ) | ||||||||||||||||||||||
$ | (34,150 | ) | $ | 52,873 | $ | (95 | ) | $ | (8,334 | ) | $ | 1,590 | $ | 29,169 | $ | 296 |
Collaboration assets | 30 years |
Customer relationships and related programs | 1 to 50 years |
Purchased service contracts | 5 to 25 years |
Patents & trademarks | 4 to 40 years |
Exclusivity assets | 5 to 25 years |
(dollars in millions) | 2016 | 2015 | ||||||
Long-term trade accounts receivable | $ | 926 | $ | 903 | ||||
Notes and leases receivable | 430 | 451 | ||||||
Total long-term receivables | $ | 1,356 | $ | 1,354 |
• | ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date - delays the effective date of ASU 2014-09 by one year. |
• | ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) - clarifies how an entity should identify the unit of accounting (i.e. the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. |
• | ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing - clarifies the guidance surrounding licensing arrangements and the identification of performance obligations. |
• | ASU 2016-12, Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients - addresses implementation issues raised by stakeholders concerning collectability, noncash consideration, presentation of sales tax, and transition. |
• | ASU 2016-20, Revenue from Contracts with Customers (Topic 606), Technical Corrections and Improvements - addresses loan guarantee fees, impairment testing of contract costs, provisions for losses on certain contracts, and various disclosures. |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Collaborator share of sales: | |||||||||||
Cost of products sold | $ | 1,700 | $ | 1,547 | $ | 1,778 | |||||
Cost of services sold | 675 | 652 | 354 | ||||||||
Collaborator share of program costs (reimbursement of expenses incurred): | |||||||||||
Cost of products sold | (108 | ) | (104 | ) | (103 | ) | |||||
Research and development | (184 | ) | (248 | ) | (122 | ) | |||||
Selling, general and administrative | (5 | ) | (5 | ) | (4 | ) |
(dollars in millions) | Balance as of January 1, 2016 | Goodwill resulting from business combinations | Foreign currency translation and other | Balance as of December 31, 2016 | |||||||||||
Otis | $ | 1,566 | $ | 60 | $ | (51 | ) | $ | 1,575 | ||||||
UTC Climate, Controls & Security | 9,458 | 473 | (444 | ) | 9,487 | ||||||||||
Pratt & Whitney | 1,515 | — | (4 | ) | 1,511 | ||||||||||
UTC Aerospace Systems | 14,759 | 35 | (311 | ) | 14,483 | ||||||||||
Total Segments | 27,298 | 568 | (810 | ) | 27,056 | ||||||||||
Eliminations and other | 3 | — | — | 3 | |||||||||||
Total | $ | 27,301 | $ | 568 | $ | (810 | ) | $ | 27,059 |
2016 | 2015 | ||||||||||||||
(dollars in millions) | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||
Amortized: | |||||||||||||||
Service portfolios | $ | 1,995 | $ | (1,344 | ) | $ | 1,977 | $ | (1,307 | ) | |||||
Patents and trademarks | 378 | (201 | ) | 361 | (189 | ) | |||||||||
Collaboration intangible assets | 3,724 | (211 | ) | 3,336 | (86 | ) | |||||||||
Customer relationships and other | 12,798 | (3,480 | ) | 12,430 | (2,988 | ) | |||||||||
18,895 | (5,236 | ) | 18,104 | (4,570 | ) | ||||||||||
Unamortized: | |||||||||||||||
Trademarks and other | 2,025 | — | 2,069 | — | |||||||||||
Total | $ | 20,920 | $ | (5,236 | ) | $ | 20,173 | $ | (4,570 | ) |
(dollars in millions) | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||
Amortization expense | $ | 809 | $ | 865 | $ | 878 | $ | 859 | $ | 829 |
Income (Expense) | |||||||||||
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Discontinued Operations: | |||||||||||
Net Sales | $ | — | $ | 4,949 | $ | 7,452 | |||||
Cost of Sales | — | (4,152 | ) | (6,801 | ) | ||||||
Research and development | — | (150 | ) | (160 | ) | ||||||
Selling, general and administrative | 1 | (315 | ) | (328 | ) | ||||||
Pension curtailment | — | (110 | ) | — | |||||||
Other income, net | — | 30 | 12 | ||||||||
Income from operations | 1 | 252 | 175 | ||||||||
Gain on disposal | 13 | 6,042 | — | ||||||||
Income tax expense | (24 | ) | (2,684 | ) | (20 | ) | |||||
(Loss) income from discontinued operations | $ | (10 | ) | $ | 3,610 | $ | 155 |
(dollars in millions, except per share amounts; shares in millions) | 2016 | 2015 | 2014 | ||||||||
Net income attributable to common shareowners: | |||||||||||
Net income from continuing operations | $ | 5,065 | $ | 3,996 | $ | 6,066 | |||||
Net (loss) income from discontinued operations | (10 | ) | 3,612 | 154 | |||||||
Net income attributable to common shareowners | $ | 5,055 | $ | 7,608 | $ | 6,220 | |||||
Basic weighted average number of shares outstanding | 818.2 | 872.7 | 898.3 | ||||||||
Stock awards | 7.9 | 10.5 | 13.3 | ||||||||
Diluted weighted average number of shares outstanding | 826.1 | 883.2 | 911.6 | ||||||||
Earnings Per Share of Common Stock—Basic: | |||||||||||
Net income from continuing operations | $ | 6.19 | $ | 4.58 | $ | 6.75 | |||||
Net (loss) income from discontinued operations | (0.01 | ) | 4.14 | 0.17 | |||||||
Net income attributable to common shareowners | 6.18 | 8.72 | 6.92 | ||||||||
Earnings Per Share of Common Stock—Diluted: | |||||||||||
Net income from continuing operations | $ | 6.13 | $ | 4.53 | $ | 6.65 | |||||
Net (loss) income from discontinued operations | (0.01 | ) | 4.09 | 0.17 | |||||||
Net income attributable to common shareowners | 6.12 | 8.61 | 6.82 |
(dollars in millions) | Committed | 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | ||||||||||||||||||||
Notes and leases receivable | $ | 497 | $ | 51 | $ | 24 | $ | 47 | $ | 79 | $ | 32 | $ | 264 | |||||||||||||
Commercial aerospace financing commitments | $ | 2,358 | $ | 435 | $ | 521 | $ | 416 | $ | 354 | $ | 287 | $ | 345 | |||||||||||||
Other commercial aerospace commitments | 12,063 | 860 | 973 | 738 | 706 | 730 | 8,056 | ||||||||||||||||||||
Collaboration partners' share | (4,608 | ) | (386 | ) | (479 | ) | (322 | ) | (271 | ) | (250 | ) | (2,900 | ) | |||||||||||||
Total commercial commitments | $ | 9,813 | $ | 909 | $ | 1,015 | $ | 832 | $ | 789 | $ | 767 | $ | 5,501 |
(dollars in millions) | 2016 | 2015 | |||||
Raw materials | $ | 2,040 | $ | 2,037 | |||
Work-in-process | 2,787 | 2,422 | |||||
Finished goods | 3,305 | 3,183 | |||||
Contracts in progress | 9,395 | 8,668 | |||||
17,527 | 16,310 | ||||||
Less: | |||||||
Progress payments, secured by lien, on U.S. Government contracts | (130 | ) | (239 | ) | |||
Billings on contracts in progress | (8,693 | ) | (7,936 | ) | |||
$ | 8,704 | $ | 8,135 |
(dollars in millions) | Estimated Useful Lives | 2016 | 2015 | ||||||
Land | $ | 392 | $ | 384 | |||||
Buildings and improvements | 12-40 years | 5,180 | 5,030 | ||||||
Machinery, tools and equipment | 3-20 years | 12,471 | 11,717 | ||||||
Other, including assets under construction | 1,426 | 1,363 | |||||||
19,469 | 18,494 | ||||||||
Accumulated depreciation | (10,311 | ) | (9,762 | ) | |||||
$ | 9,158 | $ | 8,732 |
(dollars in millions) | 2016 | 2015 | |||||
Advances on sales contracts and service billings | $ | 4,217 | $ | 3,952 | |||
Accrued salaries, wages and employee benefits | 1,608 | 1,543 | |||||
Service and warranty accruals | 555 | 546 | |||||
Litigation and contract matters | 488 | 482 | |||||
Interest payable | 395 | 391 | |||||
Income taxes payable | 382 | 2,498 | |||||
Accrued property, sales and use taxes | 289 | 292 | |||||
Canadian government settlement - current portion | 245 | 241 | |||||
Insurance accruals | 217 | 204 | |||||
Accrued restructuring costs | 210 | 334 | |||||
Accrued workers compensation | 208 | 212 | |||||
Other | 3,405 | 3,943 | |||||
$ | 12,219 | $ | 14,638 |
(dollars in millions) | 2016 | 2015 | |||||
Short-term borrowings: | |||||||
Commercial paper | $ | 522 | $ | 727 | |||
Other borrowings | 79 | 199 | |||||
Total short-term borrowings | $ | 601 | $ | 926 |
2016 | 2015 | ||||
Average interest expense rate - average outstanding borrowings during the year: | |||||
Short-term borrowings | 1.3 | % | 0.6 | % | |
Total debt | 4.1 | % | 4.1 | % | |
Average interest expense rate - outstanding borrowings as of December 31: | |||||
Short-term borrowings | 0.6 | % | 0.8 | % | |
Total debt | 3.7 | % | 4.4 | % |
(dollars in millions) | 2016 | 2015 | |||||
5.375% notes due 2017 1 | — | 1,000 | |||||
1.800% notes due 2017 1 | 1,500 | 1,500 | |||||
EURIBOR plus 0.80% floating rate notes due 2018 (€750 million principal value) 2 | 783 | — | |||||
1.778% junior subordinated notes due 2018 | 1,100 | 1,100 | |||||
6.800% notes due 2018 | 99 | 99 | |||||
LIBOR plus 0.350% floating rate notes due 2019 3 | 350 | — | |||||
1.500% notes due 2019 1 | 650 | — | |||||
6.125% notes due 2019 1 | — | 1,250 | |||||
8.875% notes due 2019 | 271 | 271 | |||||
4.500% notes due 2020 1 | 1,250 | 1,250 | |||||
4.875% notes due 2020 | 171 | 171 | |||||
1.950% notes due 2021 1 | 750 | — | |||||
1.125% notes due 2021 (€950 million principal value) 4 | 992 | — | |||||
8.750% notes due 2021 | 250 | 250 | |||||
3.100% notes due 2022 1 | 2,300 | 2,300 | |||||
1.250% notes due 2023 (€750 million principal value) 4 | 783 | 817 | |||||
1.875% notes due 2026 (€500 million principal value) 4 | 522 | — | |||||
2.650% notes due 2026 1 | 1,150 | — | |||||
7.100% notes due 2027 | 141 | 141 | |||||
6.700% notes due 2028 | 400 | 400 | |||||
7.500% notes due 2029 1 | 550 | 550 | |||||
5.400% notes due 2035 1 | 600 | 600 | |||||
6.050% notes due 2036 1 | 600 | 600 | |||||
6.800% notes due 2036 | 134 | 134 | |||||
7.000% notes due 2038 | 159 | 159 | |||||
6.125% notes due 2038 1 | 1,000 | 1,000 | |||||
5.700% notes due 2040 1 | 1,000 | 1,000 | |||||
4.500% notes due 2042 1 | 3,500 | 3,500 | |||||
4.150% notes due 2045 1 | 850 | 850 | |||||
3.750% notes due 2046 1 | 1,100 | — | |||||
Project financing obligations | 155 | 191 | |||||
Other (including capitalized leases) | 189 | 306 | |||||
Total principal long-term debt | 23,299 | 19,439 | |||||
Other (fair market value adjustments, discounts and debt issuance costs) | 1 | 60 | |||||
Total long-term debt | 23,300 | 19,499 | |||||
Less: current portion | 1,603 | 179 | |||||
Long-term debt, net of current portion | $ | 21,697 | $ | 19,320 |
1 | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. |
2 | The three-month EURIBOR rate as of December 30, 2016 was approximately -0.319%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. |
3 | The three-month LIBOR rate as of December 30, 2016 was approximately 0.998%. |
4 | We may redeem these notes, in whole or in part, at our option at any time. If redeemed earlier than three months prior to the stated maturity date, the redemption price in Euro shall equal the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on an annual basis at a rate based upon a comparable German federal government bond whose maturity is closest to the maturity of the notes plus 15-30 basis points. In addition, the notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. |
(dollars in millions) | |||
2017 | $ | 1,603 | |
2018 | 2,012 | ||
2019 | 1,299 | ||
2020 | 1,460 | ||
2021 | 2,034 | ||
Thereafter | 14,891 | ||
Total | $ | 23,299 |
(dollars in millions) | Foreign Currency Translation | Defined Benefit Pension and Postretirement Plans | Unrealized Gains (Losses) on Available-for- Sale Securities | Unrealized Hedging (Losses) Gains | Accumulated Other Comprehensive (Loss) Income | |||||||||||||||
Balance at December 31, 2014 | $ | (1,051 | ) | $ | (5,709 | ) | $ | 308 | $ | (209 | ) | $ | (6,661 | ) | ||||||
Other comprehensive (loss) income before reclassifications, net | (1,429 | ) | 32 | 16 | (298 | ) | (1,679 | ) | ||||||||||||
Amounts reclassified, pre-tax | 42 | 867 | (54 | ) | 234 | 1,089 | ||||||||||||||
Tax (benefit) expense reclassified | — | (325 | ) | 23 | (66 | ) | (368 | ) | ||||||||||||
Balance at December 31, 2015 | $ | (2,438 | ) | $ | (5,135 | ) | $ | 293 | $ | (339 | ) | $ | (7,619 | ) | ||||||
Other comprehensive (loss) income before reclassifications, net | (1,042 | ) | (247 | ) | 119 | 54 | (1,116 | ) | ||||||||||||
Amounts reclassified, pre-tax | — | 535 | (94 | ) | 171 | 612 | ||||||||||||||
Tax (benefit) expense reclassified | — | (198 | ) | 35 | (48 | ) | (211 | ) | ||||||||||||
Balance at December 31, 2016 | $ | (3,480 | ) | $ | (5,045 | ) | $ | 353 | $ | (162 | ) | $ | (8,334 | ) |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
United States | $ | 2,534 | $ | 2,782 | $ | 4,165 | |||||
Foreign | 4,599 | 3,685 | 4,547 | ||||||||
$ | 7,133 | $ | 6,467 | $ | 8,712 |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Current: | |||||||||||
United States: | |||||||||||
Federal | $ | 30 | $ | 328 | $ | 319 | |||||
State | (21 | ) | (37 | ) | 38 | ||||||
Foreign | 1,290 | 1,158 | 1,484 | ||||||||
1,299 | 1,449 | 1,841 | |||||||||
Future: | |||||||||||
United States: | |||||||||||
Federal | 318 | 712 | 421 | ||||||||
State | 134 | 109 | (23 | ) | |||||||
Foreign | (54 | ) | (159 | ) | 5 | ||||||
398 | 662 | 403 | |||||||||
Income tax expense | $ | 1,697 | $ | 2,111 | $ | 2,244 | |||||
Attributable to items credited (charged) to equity | $ | (299 | ) | $ | (114 | ) | $ | 1,535 |
2016 | 2015 | 2014 | ||||||
Statutory U.S. federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
Tax on international activities | (8.1 | )% | (2.0 | )% | (3.3 | )% | ||
Tax audit settlements | (2.9 | )% | — | (4.3 | )% | |||
Other | (0.2 | )% | (0.4 | )% | (1.6 | )% | ||
Effective income tax rate | 23.8 | % | 32.6 | % | 25.8 | % |
(dollars in millions) | 2016 | 2015 | |||||
Future income tax benefits: | |||||||
Insurance and employee benefits | $ | 2,382 | $ | 2,650 | |||
Other asset basis differences | 1,098 | 1,199 | |||||
Other liability basis differences | 1,403 | 1,543 | |||||
Tax loss carryforwards | 494 | 528 | |||||
Tax credit carryforwards | 873 | 872 | |||||
Valuation allowances | (545 | ) | (591 | ) | |||
$ | 5,705 | $ | 6,201 | ||||
Future income taxes payable: | |||||||
Other asset basis differences | $ | 5,376 | $ | 5,324 | |||
Other items, net | 364 | 531 | |||||
$ | 5,740 | $ | 5,855 |
(dollars in millions) | Tax Credit Carryforwards | Tax Loss Carryforwards | |||||
Expiration period: | |||||||
2017-2021 | $ | 12 | $ | 317 | |||
2022-2026 | 13 | 187 | |||||
2027-2036 | 219 | 363 | |||||
Indefinite | 629 | 1,780 | |||||
Total | $ | 873 | $ | 2,647 |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Balance at January 1 | $ | 1,169 | $ | 1,089 | $ | 1,223 | |||||
Additions for tax positions related to the current year | 69 | 206 | 164 | ||||||||
Additions for tax positions of prior years | 167 | 99 | 435 | ||||||||
Reductions for tax positions of prior years | (61 | ) | (101 | ) | (47 | ) | |||||
Settlements | (258 | ) | (124 | ) | (686 | ) | |||||
Balance at December 31 | $ | 1,086 | $ | 1,169 | $ | 1,089 | |||||
Gross interest expense related to unrecognized tax benefits | $ | 41 | $ | 39 | $ | 180 | |||||
Total accrued interest balance at December 31 | $ | 185 | $ | 176 | $ | 292 |
(dollars in millions) | 2016 | 2015 | |||||
Change in Benefit Obligation: | |||||||
Beginning balance | $ | 35,428 | $ | 37,853 | |||
Service cost | 383 | 493 | |||||
Interest cost | 1,183 | 1,399 | |||||
Actuarial loss (gain) | 1,831 | (1,716 | ) | ||||
Total benefits paid | (1,660 | ) | (1,796 | ) | |||
Net settlement, curtailment and special termination benefits | (1,566 | ) | (55 | ) | |||
Plan amendments | 17 | 39 | |||||
Other | (693 | ) | (789 | ) | |||
Ending balance | $ | 34,923 | $ | 35,428 | |||
Change in Plan Assets: | |||||||
Beginning balance | $ | 31,011 | $ | 32,738 | |||
Actual return on plan assets | 3,202 | 265 | |||||
Employer contributions | 384 | 520 | |||||
Benefits paid | (1,660 | ) | (1,796 | ) | |||
Settlements | (1,632 | ) | (59 | ) | |||
Other | (750 | ) | (657 | ) | |||
Ending balance | $ | 30,555 | $ | 31,011 | |||
Funded Status: | |||||||
Fair value of plan assets | $ | 30,555 | $ | 31,011 | |||
Benefit obligations | (34,923 | ) | (35,428 | ) | |||
Funded status of plan | $ | (4,368 | ) | $ | (4,417 | ) | |
Amounts Recognized in the Consolidated Balance Sheet Consist of: | |||||||
Noncurrent assets | $ | 451 | $ | 742 | |||
Current liability | (72 | ) | (71 | ) | |||
Noncurrent liability | (4,747 | ) | (5,088 | ) | |||
Net amount recognized | $ | (4,368 | ) | $ | (4,417 | ) | |
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: | |||||||
Net actuarial loss | $ | 7,941 | $ | 8,224 | |||
Prior service credit | (6 | ) | (57 | ) | |||
Net amount recognized | $ | 7,935 | $ | 8,167 |
(dollars in millions) | 2016 | 2015 | |||||
Projected benefit obligation | $ | 32,732 | $ | 30,915 | |||
Accumulated benefit obligation | 32,095 | 30,362 | |||||
Fair value of plan assets | 27,943 | 25,827 |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Pension Benefits: | |||||||||||
Service cost | $ | 383 | $ | 493 | $ | 487 | |||||
Interest cost | 1,183 | 1,399 | 1,517 | ||||||||
Expected return on plan assets | (2,202 | ) | (2,264 | ) | (2,215 | ) | |||||
Amortization of prior service credit | (33 | ) | (11 | ) | (8 | ) | |||||
Recognized actuarial net loss | 572 | 882 | 429 | ||||||||
Net settlement, curtailment and special termination benefits loss | 498 | 150 | 13 | ||||||||
Net periodic pension cost - employer | $ | 401 | $ | 649 | $ | 223 |
(dollars in millions) | |||
Current year actuarial loss | $ | 831 | |
Amortization of actuarial loss | (572 | ) | |
Current year prior service cost | 17 | ||
Amortization of prior service credit | 33 | ||
Net settlement and curtailment loss | (436 | ) | |
Other | (105 | ) | |
Total recognized in other comprehensive loss | $ | (232 | ) |
Net recognized in net periodic pension cost and other comprehensive loss | $ | 169 |
(dollars in millions) | |||
Net actuarial loss | $ | 571 | |
Prior service credit | (36 | ) | |
$ | 535 |
Benefit Obligation | Net Cost | ||||||||||||||
2016 | 2015 | 2016 | 2015 | 2014 | |||||||||||
Discount rate | |||||||||||||||
PBO | 3.8 | % | 4.1 | % | 4.1 | % | 3.8 | % | 4.7 | % | |||||
Interest cost1 | — | — | 3.4 | % | — | — | |||||||||
Service cost1 | — | — | 3.8 | % | — | — | |||||||||
Salary scale | 4.1 | % | 4.2 | % | 4.2 | % | 4.2 | % | 4.2 | % | |||||
Expected return on plan assets | — | — | 7.3 | % | 7.6 | % | 7.6 | % |
Note 1 | The 2016 discount rates used to measure the service cost and interest cost applies to our significant plans. The PBO discount rate is used for the service cost and interest cost measurements for non-significant plans. |
(dollars in millions) | Quoted Prices in Active Markets For Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Not Subject to Leveling | Total | ||||||||||||||
Asset Category: | |||||||||||||||||||
Public Equities | |||||||||||||||||||
Global Equities | $ | 4,682 | $ | 3 | $ | — | $ | — | $ | 4,685 | |||||||||
Global Equity Commingled Funds1 | — | 367 | — | — | 367 | ||||||||||||||
Enhanced Global Equities 2 | 168 | 1,494 | — | — | 1,662 | ||||||||||||||
Global Equity Funds at net asset value8 | — | — | — | 7,090 | 7,090 | ||||||||||||||
Private Equities 3,8 | — | — | 122 | 1,239 | 1,361 | ||||||||||||||
Fixed Income Securities | |||||||||||||||||||
Governments | 260 | 54 | — | — | 314 | ||||||||||||||
Corporate Bonds | — | 7,637 | — | — | 7,637 | ||||||||||||||
Fixed Income Securities8 | — | — | — | 2,788 | 2,788 | ||||||||||||||
Real Estate 4,8 | — | 17 | 1,285 | 513 | 1,815 | ||||||||||||||
Other 5,8 | — | 289 | — | 1,819 | 2,108 | ||||||||||||||
Cash & Cash Equivalents 6,8 | 100 | 75 | — | 121 | 296 | ||||||||||||||
Subtotal | $ | 5,210 | $ | 9,936 | $ | 1,407 | $ | 13,570 | 30,123 | ||||||||||
Other Assets & Liabilities7 | 432 | ||||||||||||||||||
Total at December 31, 2016 | $ | 30,555 | |||||||||||||||||
Public Equities | |||||||||||||||||||
Global Equities | $ | 5,884 | $ | — | $ | — | $ | — | $ | 5,884 | |||||||||
Global Equity Commingled Funds1 | — | 779 | — | — | 779 | ||||||||||||||
Enhanced Global Equities 2 | 237 | 616 | — | — | 853 | ||||||||||||||
Global Equity Funds at net asset value 8 | — | — | — | 6,475 | 6,475 | ||||||||||||||
Private Equities 3,8 | — | — | 182 | 1,335 | 1,517 | ||||||||||||||
Fixed Income Securities | |||||||||||||||||||
Governments | 365 | 53 | — | — | 418 | ||||||||||||||
Corporate Bonds | — | 7,013 | — | — | 7,013 | ||||||||||||||
Fixed Income Securities8 | — | — | — | 2,992 | 2,992 | ||||||||||||||
Real Estate 4,8 | — | 10 | 1,165 | 1,079 | 2,254 | ||||||||||||||
Other 5,8 | — | 334 | — | 1,706 | 2,040 | ||||||||||||||
Cash & Cash Equivalents 6,8 | — | 159 | — | 334 | 493 | ||||||||||||||
Subtotal | $ | 6,486 | $ | 8,964 | $ | 1,347 | $ | 13,921 | 30,718 | ||||||||||
Other Assets & Liabilities7 | 293 | ||||||||||||||||||
Total at December 31, 2015 | $ | 31,011 |
Note 1 | Represents commingled funds that invest primarily in common stocks. |
Note 2 | Represents enhanced equity separate account and commingled fund portfolios. A portion of the portfolio may include long-short market neutral and relative value strategies that invest in publicly traded, equity and fixed income securities, as well as derivatives of equity and fixed income securities and foreign currency. |
Note 3 | Represents limited partner investments with general partners that primarily invest in debt and equity. |
Note 4 | Represents investments in real estate including commingled funds and directly held properties. |
Note 5 | Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities. |
Note 6 | Represents short-term commercial paper, bonds and other cash or cash-like instruments. |
Note 7 | Represents trust receivables and payables that are not leveled. |
Note 8 | In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets. |
(dollars in millions) | Private Equities | Real Estate | Total | ||||||||
Balance, December 31, 2014 | $ | 145 | $ | 975 | $ | 1,120 | |||||
Realized gains (losses) | 3 | (4 | ) | (1 | ) | ||||||
Unrealized gains relating to instruments still held in the reporting period | 42 | 105 | 147 | ||||||||
Purchases, sales, and settlements, net | (8 | ) | 89 | 81 | |||||||
Balance, December 31, 2015 | 182 | 1,165 | 1,347 | ||||||||
Realized gains | 46 | 19 | 65 | ||||||||
Unrealized gains relating to instruments still held in the reporting period | 5 | 18 | 23 | ||||||||
Purchases, sales, and settlements, net | (111 | ) | 83 | (28 | ) | ||||||
Balance, December 31, 2016 | $ | 122 | $ | 1,285 | $ | 1,407 |
(dollars in millions) | 2016 | 2015 | |||||
Change in Benefit Obligation: | |||||||
Beginning balance | $ | 890 | $ | 952 | |||
Service cost | 3 | 3 | |||||
Interest cost | 34 | 34 | |||||
Actuarial gain | (48 | ) | — | ||||
Total benefits paid | (97 | ) | (104 | ) | |||
Other | 23 | 5 | |||||
Ending balance | $ | 805 | $ | 890 | |||
Change in Plan Assets: | |||||||
Beginning balance | $ | — | $ | — | |||
Employer contributions | 80 | 84 | |||||
Benefits paid | (97 | ) | (104 | ) | |||
Other | 17 | 20 | |||||
Ending balance | $ | — | $ | — | |||
Funded Status: | |||||||
Fair value of plan assets | $ | — | $ | — | |||
Benefit obligations | (805 | ) | (890 | ) | |||
Funded status of plan | $ | (805 | ) | $ | (890 | ) | |
Amounts Recognized in the Consolidated Balance Sheet Consist of: | |||||||
Current liability | $ | (78 | ) | $ | (84 | ) | |
Noncurrent liability | (727 | ) | (806 | ) | |||
Net amount recognized | $ | (805 | ) | $ | (890 | ) | |
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: | |||||||
Net actuarial gain | $ | (152 | ) | $ | (109 | ) | |
Prior service credit | (5 | ) | (1 | ) | |||
Net amount recognized | $ | (157 | ) | $ | (110 | ) |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Other Postretirement Benefits: | |||||||||||
Service cost | $ | 3 | $ | 3 | $ | 3 | |||||
Interest cost | 34 | 34 | 41 | ||||||||
Amortization of prior service credit | — | — | (1 | ) | |||||||
Recognized actuarial net gain | (4 | ) | (4 | ) | (4 | ) | |||||
Net settlement and curtailment gain | — | (1 | ) | — | |||||||
Net periodic other postretirement benefit cost | $ | 33 | $ | 32 | $ | 39 |
(dollars in millions) | |||
Current year actuarial gain | $ | (46 | ) |
Current year prior service credit | (4 | ) | |
Amortization of actuarial net gain | 4 | ||
Other | (1 | ) | |
Total recognized in other comprehensive loss | $ | (47 | ) |
Net recognized in net periodic other postretirement benefit cost and other comprehensive loss | $ | (14 | ) |
Benefit Obligation | Net Cost | |||||||||||||
2016 | 2015 | 2016 | 2015 | 2014 | ||||||||||
Discount rate | 3.8 | % | 4.0 | % | 4.0 | % | 3.8 | % | 4.4 | % |
2016 | 2015 | ||||
Health care cost trend rate assumed for next year | 6.5 | % | 6.5 | % | |
Rate that the cost trend rate gradually declines to | 5.0 | % | 5.0 | % | |
Year that the rate reaches the rate it is assumed to remain at | 2022 | 2022 |
2016 One-Percentage-Point | |||||||
(dollars in millions) | Increase | Decrease | |||||
Effect on total service and interest cost | $ | 3 | $ | (2 | ) | ||
Effect on postretirement benefit obligation | 46 | (39 | ) |
(dollars in millions) | Pension Protection Act Zone Status | FIP/ RP Status | Contributions | |||||||||||||||||||||
Pension Fund | EIN/Pension Plan Number | 2016 | 2015 | Pending/ Implemented | 2016 | 2015 | 2014 | Surcharge Imposed | Expiration Date of Collective-Bargaining Agreement | |||||||||||||||
National Elevator Industry Pension Plan | 23-2694291 | Green | Green | No | $ | 100 | $ | 88 | $ | 79 | No | July 8, 2017 | ||||||||||||
Other funds | 31 | 32 | 34 | |||||||||||||||||||||
$ | 131 | $ | 120 | $ | 113 |
(dollars in millions) | 2016 | 2015 | 2014 | ||||||||
Continuing operations | $ | 152 | $ | 158 | $ | 219 | |||||
Discontinued operations | 1 | 17 | 21 | ||||||||
Total compensation cost recognized | $ | 153 | $ | 175 | $ | 240 |
Stock Options | Stock Appreciation Rights | Performance Share Units | Other Incentive Shares/Units | ||||||||||||||||||||
(shares and units in thousands) | Shares | Average Price* | Shares | Average Price* | Units | Average Price** | |||||||||||||||||
Outstanding at: | |||||||||||||||||||||||
December 31, 2015 | 1,879 | $ | 86.19 | 38,111 | $ | 83.58 | 2,170 | $ | 101.78 | 1,467 | |||||||||||||
Granted | 397 | 95.57 | 4,740 | 95.40 | 687 | 95.29 | 698 | ||||||||||||||||
Exercised / earned | (239 | ) | 71.57 | (5,760 | ) | 69.19 | (372 | ) | 84.03 | (339 | ) | ||||||||||||
Cancelled / Other | (14 | ) | 92.02 | (678 | ) | 95.03 | (518 | ) | 85.92 | 207 | |||||||||||||
December 31, 2016 | 2,023 | $ | 89.72 | 36,413 | $ | 87.18 | 1,967 | $ | 107.05 | 2,033 |
* | weighted-average exercise price |
** | weighted-average grant stock price |
Equity Awards Vested and Expected to Vest | Equity Awards That Are Exercisable | |||||||||||||||||||||||||
(shares in thousands; aggregate intrinsic value in millions) | Awards | Average Price* | Aggregate Intrinsic Value | Remaining Term** | Awards | Average Price* | Aggregate Intrinsic Value | Remaining Term** | ||||||||||||||||||
Stock Options/Stock Appreciation Rights | 38,314 | $ | 86.58 | $ | 917 | 5.4 years | 25,574 | $ | 77.64 | $ | 824 | 4.2 years | ||||||||||||||
Performance Share Units/Restricted Stock | 2,376 | — | 260 | 2.8 years |
* | weighted-average exercise price per share |
** | weighted-average contractual remaining term in years |
2016 | 2015 | 2014 | |||||||
Expected volatility | 20% | 20% - 23% | 22% - 26% | ||||||
Weighted-average volatility | 20 | % | 21 | % | 26 | % | |||
Expected term (in years) | 6.5 | 6.0 - 6.8 | 7.6 - 8.0 | ||||||
Expected dividend yield | 2.7 | % | 2.2 | % | 2.2 | % | |||
Risk-free rate | 0.2% - 2.6% | 0.0% - 2.2% | 0.0% - 3.1% |
(dollars in millions) | |||
Otis | $ | 59 | |
UTC Climate, Controls & Security | 65 | ||
Pratt & Whitney | 111 | ||
UTC Aerospace Systems | 49 | ||
Eliminations and other | 6 | ||
Total | $ | 290 |
(dollars in millions) | |||
Cost of sales | $ | 187 | |
Selling, general & administrative | 78 | ||
Other expense | 25 | ||
Total | 290 |
(dollars in millions) | Severance | Facility Exit, Lease Termination & Other Costs | Total | ||||||||
Net pre-tax restructuring costs | $ | 166 | $ | 76 | $ | 242 | |||||
Utilization and foreign exchange | (103 | ) | (30 | ) | (133 | ) | |||||
Balance at December 31, 2016 | $ | 63 | $ | 46 | $ | 109 |
(dollars in millions) | Expected Costs | Cost Incurred During 2016 | Remaining Costs at December 31, 2016 | ||||||||
Otis | $ | 57 | $ | (48 | ) | $ | 9 | ||||
UTC Climate, Controls & Security | 87 | (45 | ) | 42 | |||||||
Pratt & Whitney | 118 | (118 | ) | — | |||||||
UTC Aerospace Systems | 92 | (31 | ) | 61 | |||||||
Total | $ | 354 | $ | (242 | ) | $ | 112 |
(dollars in millions) | Severance | Facility Exit, Lease Termination and Other Costs | Total | ||||||||
Restructuring accruals at January 1, 2016 | $ | 183 | $ | 23 | $ | 206 | |||||
Net pre-tax restructuring costs | 17 | 23 | 40 | ||||||||
Utilization and foreign exchange | (158 | ) | (22 | ) | (180 | ) | |||||
Balance at December 31, 2016 | $ | 42 | $ | 24 | $ | 66 |
(dollars in millions) | Expected Costs | Costs Incurred During 2015 | (Costs Incurred) Reversals During 2016 | Remaining Costs at December 31, 2016 | |||||||||||
Otis | $ | 51 | $ | (35 | ) | $ | (14 | ) | $ | 2 | |||||
UTC Climate, Controls & Security | 139 | (83 | ) | (24 | ) | 32 | |||||||||
Pratt & Whitney | 62 | (82 | ) | 20 | — | ||||||||||
UTC Aerospace Systems | 129 | (105 | ) | (16 | ) | 8 | |||||||||
Eliminations and other | 27 | (21 | ) | (6 | ) | — | |||||||||
Total | $ | 408 | $ | (326 | ) | $ | (40 | ) | $ | 42 |
Asset Derivatives | Liability Derivatives | ||||||||||||||
(dollars in millions) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Derivatives designated as hedging instruments | $ | 15 | $ | 4 | $ | 196 | $ | 428 | |||||||
Derivatives not designated as hedging instruments | 155 | 97 | 158 | 105 |
Year Ended December 31, | |||||||
(dollars in millions) | 2016 | 2015 | |||||
Gain (loss) recorded in Accumulated other comprehensive loss | $ | 75 | $ | (415 | ) | ||
Loss reclassified from Accumulated other comprehensive loss into Product sales (effective portion) | $ | 171 | $ | 234 |
Year Ended December 31, | |||||||
(dollars in millions) | 2016 | 2015 | |||||
Gain recognized in Other income, net | $ | 56 | $ | 63 |
2016 (dollars in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Recurring fair value measurements: | |||||||||||||||
Available-for-sale securities | $ | 987 | $ | 987 | $ | — | $ | — | |||||||
Derivative assets | 170 | — | 170 | — | |||||||||||
Derivative liabilities | (354 | ) | — | (354 | ) | — |
2015 (dollars in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Recurring fair value measurements: | |||||||||||||||
Available-for-sale securities | $ | 951 | $ | 951 | $ | — | $ | — | |||||||
Derivative assets | 101 | — | 101 | — | |||||||||||
Derivative liabilities | (533 | ) | — | (533 | ) | — |
December 31, 2016 | December 31, 2015 | ||||||||||||||
(dollars in millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||
Long-term receivables | $ | 127 | $ | 121 | $ | 122 | $ | 107 | |||||||
Customer financing notes receivable | 437 | 420 | 403 | 403 | |||||||||||
Short-term borrowings | (600 | ) | (600 | ) | (926 | ) | (926 | ) | |||||||
Long-term debt (excluding capitalized leases) | (23,280 | ) | (25,110 | ) | (19,476 | ) | (21,198 | ) | |||||||
Long-term liabilities | (457 | ) | (427 | ) | (458 | ) | (419 | ) |
(dollars in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Long-term receivables | $ | 121 | $ | — | $ | 121 | $ | — | |||||||
Customer financing notes receivable | 420 | — | 420 | — | |||||||||||
Short-term borrowings | (600 | ) | — | (522 | ) | (78 | ) | ||||||||
Long-term debt (excluding capitalized leases) | (25,110 | ) | — | (24,906 | ) | (204 | ) | ||||||||
Long-term liabilities | (427 | ) | — | (427 | ) | — |
(dollars in millions) | 2016 | 2015 | |||||
Current assets | $ | 2,722 | $ | 1,920 | |||
Noncurrent assets | 1,334 | 1,102 | |||||
Total assets | $ | 4,056 | $ | 3,022 | |||
Current liabilities | $ | 2,422 | $ | 1,931 | |||
Noncurrent liabilities | 1,636 | 1,355 | |||||
Total liabilities | $ | 4,058 | $ | 3,286 |
December 31, 2016 | December 31, 2015 | ||||||||||||||
(dollars in millions) | Maximum Potential Payment | Carrying Amount of Liability | Maximum Potential Payment | Carrying Amount of Liability | |||||||||||
Commercial aerospace financing arrangements (see Note 5) | $ | 348 | $ | 14 | $ | 365 | $ | 12 | |||||||
Credit facilities and debt obligations (expire 2017 to 2028) | 270 | 15 | 241 | — | |||||||||||
Performance guarantees | 55 | 4 | 55 | 3 |
(dollars in millions) | 2016 | 2015 | |||||
Balance as of January 1 | $ | 1,212 | $ | 1,264 | |||
Warranties and performance guarantees issued | 246 | 291 | |||||
Settlements made | (240 | ) | (259 | ) | |||
Other | (19 | ) | (84 | ) | |||
Balance as of December 31 | $ | 1,199 | $ | 1,212 |
Net Sales | Operating Profits | |||||||||||||||||||||||
(dollars in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
Otis | $ | 11,893 | $ | 11,980 | $ | 12,982 | $ | 2,147 | $ | 2,338 | $ | 2,640 | ||||||||||||
UTC Climate, Controls & Security | 16,851 | 16,707 | 16,823 | 2,956 | 2,936 | 2,782 | ||||||||||||||||||
Pratt & Whitney | 14,894 | 14,082 | 14,508 | 1,545 | 861 | 2,000 | ||||||||||||||||||
UTC Aerospace Systems | 14,465 | 14,094 | 14,215 | 2,298 | 1,888 | 2,355 | ||||||||||||||||||
Total segment | 58,103 | 56,863 | 58,528 | 8,946 | 8,023 | 9,777 | ||||||||||||||||||
Eliminations and other | (859 | ) | (765 | ) | (628 | ) | (368 | ) | (268 | ) | 304 | |||||||||||||
General corporate expenses | — | — | — | (406 | ) | (464 | ) | (488 | ) | |||||||||||||||
Consolidated | $ | 57,244 | $ | 56,098 | $ | 57,900 | $ | 8,172 | $ | 7,291 | $ | 9,593 |
Total Assets | Capital Expenditures | Depreciation & Amortization | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||
Otis | $ | 8,867 | $ | 8,846 | $ | 9,313 | $ | 94 | $ | 83 | $ | 87 | $ | 171 | $ | 176 | $ | 209 | ||||||||||||||||||
UTC Climate, Controls & Security | 21,787 | 21,287 | 21,217 | 340 | 261 | 228 | 354 | 337 | 349 | |||||||||||||||||||||||||||
Pratt & Whitney | 22,971 | 20,336 | 18,143 | 725 | 692 | 692 | 550 | 476 | 390 | |||||||||||||||||||||||||||
UTC Aerospace Systems | 34,093 | 34,736 | 35,034 | 452 | 537 | 533 | 807 | 796 | 807 | |||||||||||||||||||||||||||
Total segment | 87,718 | 85,205 | 83,707 | 1,611 | 1,573 | 1,540 | 1,882 | 1,785 | 1,755 | |||||||||||||||||||||||||||
Eliminations and other | 1,988 | 2,279 | 2,631 | 88 | 79 | 54 | 80 | 78 | 65 | |||||||||||||||||||||||||||
Consolidated | $ | 89,706 | $ | 87,484 | $ | 86,338 | $ | 1,699 | $ | 1,652 | $ | 1,594 | $ | 1,962 | $ | 1,863 | $ | 1,820 |
External Net Sales | Operating Profits | Long-Lived Assets | ||||||||||||||||||||||||||||||||||
(dollars in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||
United States Operations | $ | 32,335 | $ | 30,989 | $ | 30,814 | $ | 4,566 | $ | 4,391 | $ | 5,067 | $ | 4,822 | $ | 4,517 | $ | 4,211 | ||||||||||||||||||
International Operations | ||||||||||||||||||||||||||||||||||||
Europe | 11,151 | 10,945 | 12,587 | 1,933 | 1,882 | 2,238 | 1,538 | 1,525 | 1,577 | |||||||||||||||||||||||||||
Asia Pacific | 8,260 | 8,425 | 8,746 | 1,484 | 1,641 | 1,712 | 999 | 994 | 995 | |||||||||||||||||||||||||||
Other | 5,479 | 5,584 | 5,511 | 963 | 109 | 760 | 1,325 | 1,273 | 1,379 | |||||||||||||||||||||||||||
Eliminations and other | 19 | 155 | 242 | (774 | ) | (732 | ) | (184 | ) | 474 | 423 | 430 | ||||||||||||||||||||||||
Consolidated | $ | 57,244 | $ | 56,098 | $ | 57,900 | $ | 8,172 | $ | 7,291 | $ | 9,593 | $ | 9,158 | $ | 8,732 | $ | 8,592 |
(dollars in millions) | 2016 | 2015 | 2014 | |||||||||
Europe | $ | 5,065 | $ | 4,366 | $ | 4,137 | ||||||
Asia Pacific | 3,449 | 2,902 | 3,469 | |||||||||
Other | 2,313 | 2,473 | 2,670 | |||||||||
$ | 10,827 | $ | 9,741 | $ | 10,276 |
(dollars in millions) | 2016 | 2015 | 2014 | |||||||||
Pratt & Whitney | $ | 3,187 | $ | 2,945 | $ | 3,126 | ||||||
UTC Aerospace Systems | 2,301 | 2,409 | 2,459 | |||||||||
Other | 138 | 276 | 294 | |||||||||
$ | 5,626 | $ | 5,630 | $ | 5,879 |
2016 Quarters | 2015 Quarters | |||||||||||||||||||||||||||||||
(dollars in millions, except per share amounts) | First | Second | Third | Fourth | First | Second | Third | Fourth | ||||||||||||||||||||||||
Net Sales | $ | 13,357 | $ | 14,874 | $ | 14,354 | $ | 14,659 | $ | 13,320 | $ | 14,690 | $ | 13,788 | $ | 14,300 | ||||||||||||||||
Gross margin | 3,703 | 4,133 | 4,012 | 3,936 | 3,814 | 4,218 | 3,988 | 3,647 | ||||||||||||||||||||||||
Net income attributable to common shareowners | 1,183 | 1,379 | 1,480 | 1,013 | 1,426 | 1,542 | 1,362 | 3,278 | ||||||||||||||||||||||||
Earnings per share of Common Stock: | ||||||||||||||||||||||||||||||||
Basic - net income | $ | 1.43 | $ | 1.67 | $ | 1.80 | $ | 1.26 | $ | 1.60 | $ | 1.76 | $ | 1.55 | $ | 3.86 | ||||||||||||||||
Diluted - net income | $ | 1.42 | $ | 1.65 | $ | 1.78 | $ | 1.25 | $ | 1.58 | $ | 1.73 | $ | 1.54 | $ | 3.86 |
2016 | 2015 | |||||||||||||||||||||||
(common stock) | High | Low | Dividend | High | Low | Dividend | ||||||||||||||||||
First quarter | $ | 100.25 | $ | 84.66 | $ | 0.64 | $ | 124.11 | $ | 111.52 | $ | 0.64 | ||||||||||||
Second quarter | $ | 105.89 | $ | 97.21 | $ | 0.66 | $ | 119.14 | $ | 110.93 | $ | 0.64 | ||||||||||||
Third quarter | $ | 109.69 | $ | 100.10 | $ | 0.66 | $ | 111.58 | $ | 86.82 | $ | 0.64 | ||||||||||||
Fourth quarter | $ | 110.98 | $ | 98.67 | $ | 0.66 | $ | 100.80 | $ | 88.36 | $ | 0.64 |
December | ||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |||||||||||||||||||
United Technologies Corporation | $ | 100.00 | $ | 115.10 | $ | 163.30 | $ | 168.50 | $ | 144.23 | $ | 168.81 | ||||||||||||
S&P 500 Index | $ | 100.00 | $ | 116.00 | $ | 153.57 | $ | 174.60 | $ | 177.01 | $ | 198.18 | ||||||||||||
Dow Jones Industrial Average | $ | 100.00 | $ | 110.24 | $ | 142.93 | $ | 157.28 | $ | 157.61 | $ | 183.61 |
United Technologies Corporation | Exhibit 21 |
Subsidiary and Affiliate Listing | |
December 31, 2016 | |
Entity Name | Place of Incorporation |
Allyn Holdings, Inc. | Delaware |
AMI Industries, Inc. | Colorado |
Arabian Air Conditioning Company | Saudi Arabia |
Augusta (Gibraltar) Holdings I Limited | Gibraltar |
Augusta (Gibraltar) Holdings II S.C.S. | Grand-Duchy of Luxembourg |
Automated Logic Corporation | Georgia |
Auxiliary Power International Corporation | Delaware |
Beesail Limited | England |
Belgium Parkview BVBA | Belgium |
Berkeley Luxembourg S.à r.l. | Grand-Duchy of Luxembourg |
Blades Technology International, Inc. | Delaware |
Blades Technology Ltd. | Israel |
Bridgecam (Ireland) Limited | Ireland |
Cambridge Luxembourg S.à r.l. | Grand-Duchy of Luxembourg |
Caricor Ltd. | Delaware |
Carrier Asia Limited | Hong Kong |
Carrier Commercial Refrigeration, Inc. | Delaware |
Carrier Corporation | Delaware |
Carrier Enterprise, LLC | Delaware |
Carrier HVACR Investments B.V. | Netherlands |
Carrier Mexico S.A. de C.V. | Mexico |
Carrier Technologies ULC | Alberta |
Ceesail Limited | England |
Chubb Fire & Security Limited | England |
Chubb Fire & Security Pty Ltd | Australia |
Chubb Fire Limited | England |
Chubb Group Limited | England |
Chubb Group Security Limited | England |
Chubb International (Netherlands) BV | Netherlands |
Chubb International Holdings Limited | England |
Chubb Limited | England |
Chubb Nederland B.V. | Netherlands |
Chubb Systems Limited | United Kingdom |
Commonwealth Luxembourg Holdings S.à r.l. | Grand-Duchy of Luxembourg |
CTU Of Delaware, Inc. | Delaware |
Delavan Inc. | Delaware |
Detector Electronics Corporation | Minnesota |
Devonshire Switzerland Holdings AG | Switzerland |
Elevadores Otis Ltda. | Brazil |
Empresas Carrier, S. De R.L. De C.V. | Mexico |
United Technologies Corporation | |
Subsidiary and Affiliate Listing | |
December 31, 2016 | |
Entity Name | Place of Incorporation |
Fyrnetics (Hong Kong) Limited | Hong Kong |
Goodrich Aerospace Canada Ltd | Ontario |
Goodrich Aftermarket Services Limited | United Kingdom |
Goodrich Control Systems | United Kingdom |
Goodrich Corporation | New York |
Goodrich Inertial Limited | United Kingdom |
Goodrich Limited | United Kingdom |
Goodrich Systems Limited | United Kingdom |
Goodrich XCH Luxembourg B.V./S.a.r.l. (Dual Dutch/Lux Citizenship) | Netherlands |
Gulf Security Technology Company Limited | China |
Hamilton Sundstrand Aviation Services, Inc. | Delaware |
Hamilton Sundstrand Corporation | Delaware |
Hamilton Sundstrand Holdings, Inc. | Delaware |
Hamilton Sundstrand International Holdings (Luxembourg) S.à r.l. | Grand-Duchy of Luxembourg |
HEJ Holding, Inc. | Delaware |
IAE International Aero Engines AG | Switzerland |
JMS I Corporation | Delaware |
Kidde Fire Protection Inc. | Delaware |
Kidde Graviner Limited | England |
Kidde Holdings Limited | England |
Kidde International Limited | England |
Kidde Products Limited | England |
Kidde Technologies Inc.* | Delaware |
Kidde UK | England |
Kidde US Holdings Inc. | Delaware |
Latin American Holding, Inc. | Delaware |
Menasco Aerosystems Inc. | Delaware |
Netherlands Parkview Coöperatief U.A. | Netherlands |
Nippon Otis Elevator Company | Japan |
Noresco, LLC | Delaware |
NSI, Inc. | Delaware |
Otis Electric Elevator Company Limited | China |
Otis Elevator (China) Company Limited | China |
Otis Elevator (China) Investment Company Limited | China |
Otis Elevator Company | New Jersey |
Otis Elevator Company (India) Limited | India |
Otis Elevator Korea | Korea, Republic of |
Otis Far East Holdings Limited | Hong Kong |
Otis Holdings GmbH & Co. OHG | Germany |
Otis International Holdings GmbH | Germany |
United Technologies Corporation | |
Subsidiary and Affiliate Listing | |
December 31, 2016 | |
Entity Name | Place of Incorporation |
Otis Investments Limited | England |
Otis Limited | England |
Otis Pacific Holdings B.V. | Netherlands |
Otis S.C.S. | France |
Parkview Treasury Services (UK) Limited | United Kingdom |
Pratt & Whitney Aero Engines International GmbH | Switzerland |
Pratt & Whitney Canada Corp. | Nova Scotia |
Pratt & Whitney Canada Holdings Corp. | Nova Scotia |
Pratt & Whitney Canada Leasing, Limited Partnership | Québec |
Pratt & Whitney Component Solutions, Inc. | Michigan |
Pratt & Whitney Compressor Airfoil Holdings, Inc. | Delaware |
Pratt & Whitney Engine Leasing, LLC | Delaware |
Pratt & Whitney Holdings LLC | Cayman Islands |
Pratt & Whitney Rzeszow S.A. | Poland |
Pratt Aero Limited Partnership | Nova Scotia |
Riello Group S.P.A | Italy |
Riello S.P.A., Italy | Italy |
Rohr, Inc. | Delaware |
Rosemount Aerospace Inc. | Delaware |
Sensitech Inc. | Delaware |
SICLI Holding SAS | France |
Silver Lake Holdings S.à r.l. | Grand-Duchy of Luxembourg |
Simmonds Precision Products, Inc. | New York |
Sirius (Korea) Limited | England |
Trenton Luxembourg S.à r.l. | Grand-Duchy of Luxembourg |
Trumbull Holdings SCS | France |
United Technologies Australia Holdings Limited | Australia |
United Technologies Canada, Ltd. | New Brunswick |
United Technologies Corporation [DE] | Delaware |
United Technologies Electronic Controls, Inc. | Delaware |
United Technologies Far East Limited | Hong Kong |
United Technologies Finance (U.K.) Limited | England |
United Technologies France SAS | France |
United Technologies Holding GmbH | Germany |
United Technologies Holdings Italy Srl | Italy |
United Technologies Holdings Limited | England |
United Technologies Holdings SAS | France |
United Technologies Intercompany Lending Ireland Designated Activity Company | Ireland |
United Technologies International Corporation | Delaware |
United Technologies International Corporation-Asia Private Limited | Singapore |
United Technologies Corporation | |
Subsidiary and Affiliate Listing | |
December 31, 2016 | |
Entity Name | Place of Incorporation |
United Technologies International SAS | France |
United Technologies Luxembourg S.à r.l. | Grand-Duchy of Luxembourg |
United Technologies Paris SNC | France |
United Technologies South Asia Pacific Pte. Ltd | Singapore |
UT Finance Corporation | Delaware |
UT Luxembourg Holding II S.à r.l. | Grand-Duchy of Luxembourg |
UT Park View, Inc. | Delaware |
UTC (US) LLC | Delaware |
UTC Australia Commercial Holdings Pty Ltd | Australia |
UTC Canada Corporation | New Brunswick |
UTC Corporation | Delaware |
UTC Fire & Security Americas Corporation, Inc. | Delaware |
UTC Fire & Security Canada Inc. | Nova Scotia |
UTC Fire & Security Corporation | Delaware |
UTC Fire & Security Luxembourg S.a r.l. | Grand-Duchy of Luxembourg |
UTC Investments Australia Pty Limited | Australia |
UTCL Holdings, Limited | New Brunswick |
UTCL Investments B.V. | Netherlands |
UTX Holdings S.C.S. | France |
Walter Kidde Portable Equipment Inc. | Delaware |
Zardoya Otis, S.A. | Spain |
/s/ LLOYD J. AUSTIN III | |
Lloyd J. Austin III |
/s/ DIANE M. BRYANT | |
Diane M. Bryant |
/s/ JOHN V. FARACI | |
John V. Faraci |
/s/ JEAN-PIERRE GARNIER | |
Jean-Pierre Garnier |
/s/ EDWARD A. KANGAS | |
Edward A. Kangas |
/s/ ELLEN J. KULLMAN |
Ellen J. Kullman |
/s/ MARSHALL O. LARSEN |
Marshall O. Larsen |
/s/ HAROLD W. MCGRAW III |
Harold W. McGraw III |
/s/ RICHARD B. MYERS |
Richard B. Myers |
/s/ FREDRIC G. REYNOLDS |
Fredric G. Reynolds |
/s/ BRIAN C. ROGERS |
Brian C. Rogers |
/s/ H. PATRICK SWYGERT |
H. Patrick Swygert |
/s/ ANDRÉ VILLENEUVE |
André Villeneuve |
/s/ CHRISTINE TODD WHITMAN |
Christine Todd Whitman |
1. | I have reviewed this annual report on Form 10-K of United Technologies Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | February 9, 2017 | /s/ GREGORY J. HAYES |
Gregory J. Hayes | ||
Chairman, President and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of United Technologies Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | February 9, 2017 | /s/ AKHIL JOHRI |
Akhil Johri | ||
Executive Vice President & Chief Financial Officer |
1. | I have reviewed this annual report on Form 10-K of United Technologies Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | February 9, 2017 | /s/ ROBERT J. BAILEY |
Robert J. Bailey | ||
Corporate Vice President, Controller |
Date: | February 9, 2017 | /s/ GREGORY J. HAYES |
Gregory J. Hayes | ||
Chairman, President and Chief Executive Officer | ||
Date: | February 9, 2017 | /s/ AKHIL JOHRI |
Akhil Johri | ||
Executive Vice President & Chief Financial Officer | ||
Date: | February 9, 2017 | /s/ ROBERT J. BAILEY |
Robert J. Bailey | ||
Corporate Vice President, Controller |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 31, 2017 |
Jun. 30, 2016 |
|
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Registrant Name | UNITED TECHNOLOGIES CORP /DE/ | ||
Entity Central Index Key | 0000101829 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 85,789,321,218 | ||
Entity Common Stock, Shares Outstanding | 805,861,740 |
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 450 | $ 504 |
Preferred Stock, par value | $ 1 | $ 1 |
Preferred Stock. shares authorized | 250,000 | 250,000 |
Preferred Stock, shares issued | 0 | 0 |
Common Stock, par value | $ 1 | $ 1 |
Common Stock, shares authorized | 4,000,000 | 4,000,000 |
Common Stock, Shares, Issued | 1,440,982 | 1,438,497 |
Treasury Stock, shares | 632,281 | 600,153 |
Consolidated Statement of Changes in Equity (Parenthetical) - USD ($) shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Statement of Stockholders' Equity [Abstract] | |||
Common Stock issued under employee plans, shares | 2.5 | 3.7 | 6.2 |
Tax benefit from Common Stock issued under employee plans | $ 64 | $ 103 | |
Common Stock repurchased, shares | 32.3 | 88.7 | 13.5 |
Stock Issued During Period, Shares, Other | 11.3 | ||
Stock Issued During Period, Shares, Employee Benefit Plan | 2.7 |
Summary of Accounting Principles |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accounting Principles | SUMMARY OF ACCOUNTING PRINCIPLES The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. Consolidation. The Consolidated Financial Statements include the accounts of United Technologies Corporation (UTC) and its controlled subsidiaries. Intercompany transactions have been eliminated. Cash and Cash Equivalents. Cash and cash equivalents includes cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less. On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions or divestitures or other legal obligations. As of December 31, 2016 and 2015, the amount of such restricted cash was approximately $32 million and $45 million, respectively. Accounts Receivable. Current and long-term accounts receivable as of December 31, 2016 include retainage of $106 million and unbilled receivables of $2,786 million, which includes approximately $1,169 million of unbilled receivables under commercial aerospace long-term aftermarket contracts. Current and long-term accounts receivable as of December 31, 2015 include retainage of $141 million and unbilled receivables of $2,318 million, which includes approximately $1,091 million of unbilled receivables under commercial aerospace long-term aftermarket contracts. See Note 5 for discussion of commercial aerospace industry assets and commitments. Retainage represents amounts that, pursuant to the applicable contract, are not due until project completion and acceptance by the customer. Unbilled receivables represent revenues that are not currently billable to the customer under the terms of the contract. These items are expected to be billed and collected in the normal course of business. Marketable Equity Securities. Equity securities that have a readily determinable fair value and that we do not intend to trade are classified as available-for-sale and carried at fair value. Unrealized holding gains and losses are recorded as a separate component of shareowners' equity, net of deferred income taxes. In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 328): Measurement of Credit Losses on Financial Instruments. This ASU requires that certain financial assets, including those measured at amortized cost basis, be presented at the net amount expected to be collected, utilizing an impairment model known as the current expected credit loss model. In addition, available-for-sale debt securities will no longer use the concept of "other than temporary" when considering credit losses. Under this ASU, entities must use an allowance approach for credit losses on available-for-sale debt securities, and the allowance must be limited to the amount at which a security's fair value is below the amortized cost of the asset. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this ASU. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Upon adoption, investments that do not result in consolidation and are not accounted for under the equity method generally must be carried at fair value, with changes in fair value recognized in net income. As discussed in Note 10, we have approximately $353 million of unrealized gains on these securities recorded in Accumulated other comprehensive loss in our Consolidated Balance Sheet as of December 31, 2016. To the extent currently unrealized gains or losses on these investments are not realized through sale or other actions prior to the date of adoption, these amounts would be recorded directly to retained earnings upon adoption. The provisions of this ASU are effective for years beginning after December 15, 2017. Inventories and Contracts in Progress. Inventories and contracts in progress are stated at the lower of cost or estimated realizable value and are primarily based on first-in, first-out (FIFO) or average cost methods; however, certain UTC Aerospace Systems and UTC Climate, Controls & Security entities use the last-in, first-out (LIFO) method. If inventories that were valued using the LIFO method had been valued under the FIFO method, they would have been higher by $114 million and $127 million at December 31, 2016 and 2015, respectively. Costs accumulated against specific contracts or orders are at actual cost. Valuation reserves for excess, obsolete, and slow-moving inventory are estimated by comparing the inventory levels of individual parts to both future sales forecasts or production requirements and historical usage rates in order to identify inventory where the resale value or replacement value is less than inventoriable cost. Other factors that management considers in determining the adequacy of these reserves include whether individual inventory parts meet current specifications and cannot be substituted for a part currently being sold or used as a service part, overall market conditions, and other inventory management initiatives. Manufacturing costs are allocated to current production and firm contracts. Within commercial aerospace, inventory costs attributable to new engine offerings are recognized based on the average cost per unit expected over the life of each contract using the units-of-delivery method of percentage of completion accounting. Under this method, costs of initial engine deliveries in excess of the projected contract per unit average cost are capitalized, and these capitalized amounts are subsequently expensed as additional engine deliveries occur for engines with costs below the projected contract per unit average cost over the life of the contract. Equity Method Investments. Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other assets on the Consolidated Balance Sheet. Under this method of accounting, our share of the net earnings or losses of the investee is included in Other income, net on the Consolidated Statement of Operations since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. Goodwill and Intangible Assets. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Goodwill and indefinite‑lived intangible assets are subject to annual impairment testing using the guidance and criteria described in the Intangibles - Goodwill and Other Topic of the FASB ASC. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. Intangible assets consist of service portfolios, patents, trademarks/tradenames, customer relationships and other intangible assets including a collaboration asset, as discussed further in Note 2. Acquired intangible assets are recognized at fair value in purchase accounting and then amortized to cost of sales and selling, general & administrative expenses over the applicable useful lives. Also included within other intangible assets are commercial aerospace payments made to secure certain contractual rights to provide product on new aircraft platforms. We classify amortization of such payments as a reduction of sales. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. Consideration paid on these contractual commitments is capitalized when it is no longer conditional. Useful lives of finite-lived intangible assets are estimated based upon the nature of the intangible asset and the industry in which the intangible asset is used. These intangible assets are amortized based on the pattern in which the economic benefits of the intangible assets are consumed. For both our commercial aerospace collaboration assets and exclusivity arrangements, the pattern of economic benefit generally results in lower amortization during the development period with increasing amortization as programs enter full rate production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined, a straight-line amortization method is used. The range of estimated useful lives is as follows:
Other Long-Lived Assets. We evaluate the potential impairment of other long-lived assets when appropriate. If the carrying value of other long-lived assets held and used exceeds the sum of the undiscounted expected future cash flows, the carrying value is written down to fair value. Long-Term Financing Receivables. Our long-term financing receivables primarily represent balances related to the aerospace businesses such as long-term trade accounts receivable, leases, and notes receivable. We also have other long-term receivables in our commercial businesses; however, both the individual and aggregate amounts of those other receivables are not significant. Long-term trade accounts receivable, including unbilled receivables related to long-term aftermarket contracts, are principally amounts arising from the sale of goods and services with a contractual maturity date or realization period of greater than one year and are recognized as "Other assets" in our Consolidated Balance Sheet. Notes and leases receivable represent notes and lease receivables other than receivables related to operating leases, and are recognized as "Customer financing assets" in our Consolidated Balance Sheet. The following table summarizes the balance by class of aerospace business-related long-term receivables as of December 31, 2016 and 2015:
We determine a receivable is impaired when, based on current information and events, it is probable that we will be unable to collect amounts due according to the contractual terms of the receivable agreement. Factors considered in assessing collectability and risk include, but are not limited to, examination of credit quality indicators and other evaluation measures, underlying value of any collateral or security interests, significant past due balances, historical losses, and existing economic conditions. We determine credit ratings for each customer in our portfolio based upon public information and information obtained directly from our customers. We conduct a review of customer credit ratings, published historical credit default rates for different rating categories, and multiple third party aircraft value publications as a basis to validate the reasonableness of the allowance for losses on these balances quarterly or when events and circumstances warrant. Customer credit ratings range from customers with an extremely strong capacity to meet financial obligations, to customers whose uncollateralized receivable is in default. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to the allowance for credit losses on long-term receivables. Based upon the customer credit ratings, approximately 13% of our long-term receivables were considered to bear high credit risk as of both December 31, 2016 and 2015. See Note 5 for further discussion of commercial aerospace industry assets and commitments. Reserves for credit losses on receivables relate to specifically identified receivables that are evaluated individually for impairment. For notes and leases receivable, we determine a specific reserve for exposure based on the difference between the carrying value of the receivable and the estimated fair value of the related collateral in connection with the evaluation of credit risk and collectability. For long-term trade accounts receivable, we evaluate credit risk and collectability individually to determine if an allowance is necessary. Our long-term receivables reflected in the table above, which include reserves of $17 million and $18 million as of December 31, 2016 and 2015, respectively, are individually evaluated for impairment. At both December 31, 2016 and 2015, we did not have any significant balances that are considered to be delinquent, on non-accrual status, past due 90 days or more, or considered to be impaired. Income Taxes. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest expense has also been recognized. We recognize accrued interest related to unrecognized tax benefits in interest expense. Penalties, if incurred, would be recognized as a component of income tax expense. Revenue Recognition. As a result of our diverse product and service mix and customer base, we use multiple revenue recognition practices. We recognize sales for products and services in accordance with the provisions of Staff Accounting Bulletin (SAB) Topic 13, Revenue Recognition, as applicable. Products and services included within the scope of this SAB Topic include heating, ventilating, air-conditioning and refrigeration systems, certain alarm and fire detection and suppression systems, commercially funded research and development contracts and certain aerospace components. Sales within the scope of this SAB Topic are recognized when persuasive evidence of an arrangement exists, product delivery has occurred or services have been rendered, pricing is fixed or determinable and collectability is reasonably assured. Subsequent changes in service contracts are accounted for prospectively. Contract Accounting and Separately Priced Maintenance and Extended Warranty Aftermarket Contracts: For our construction-type and certain production-type contracts, sales are recognized on a percentage-of-completion basis following contract accounting methods. Contracts consist of enforceable agreements which form the basis of our unit of accounting for measuring sales, accumulating costs and recording loss provisions as necessary. Contract accounting requires estimates of award fees and other sources of variable consideration as well as future costs over the performance period of the contract. Cost estimates also include the estimated cost of satisfying our offset obligations required under certain contracts. Cost estimates are subject to change and result in adjustments to margins on contracts in progress. The extent of progress toward completion on our long-term commercial aerospace equipment is measured using units of delivery or other contractual milestones. The extent of progress towards completion on our development and other cost reimbursement contracts in our aerospace businesses and elevator and escalator sales, installation, modernization and other construction contracts in our commercial businesses is measured using cost-to-cost based input measures. Contract costs include estimated inventoriable manufacturing, engineering, product warranty and product performance guarantee costs, as appropriate. For separately priced product maintenance and extended warranty aftermarket contracts, sales are recognized over the contract period. In the commercial businesses, sales are primarily recognized on a straight-line basis. In the aerospace businesses, sales are primarily recognized in proportion to cost as sufficient historical evidence indicates that costs of performing services under the contract are incurred on an other than straight-line basis. Loss provisions on original equipment contracts are recognized to the extent that estimated contract costs exceed the estimated consideration from the products contemplated under the contractual arrangement. For new commitments, we generally record loss provisions at the earlier of contract announcement or contract signing except for certain requirements contracts under which losses are recorded upon receipt of the purchase order which obligates us to perform. For existing commitments, anticipated losses on contracts are recognized in the period in which losses become evident. Products contemplated under contractual arrangements include firm quantities of products sold under contract and, in the large commercial engine and wheels and brakes businesses, future highly probable sales of replacement parts required by regulation that are expected to be sold subsequently for incorporation into the original equipment. In the large commercial engine and wheels and brakes businesses, when the combined original equipment and aftermarket arrangements for each individual sales campaign are profitable, we record original equipment product losses, as applicable, at the time of delivery. We review our cost estimates on significant contracts on a quarterly basis, and for others, no less frequently than annually or when circumstances change and warrant a modification to a previous estimate. We record changes in contract estimates using the cumulative catch-up method in accordance with the Revenue Recognition Topic of the FASB ASC. Operating profits included significant net unfavorable changes in aerospace contract estimates of approximately $157 million in 2016, primarily the result of unexpected increases in estimated costs related to Pratt & Whitney long term aftermarket contracts. Collaborations: Sales generated from engine programs, spare parts sales, and aftermarket business under collaboration arrangements are recorded consistent with our revenue recognition policies in our consolidated financial statements. Amounts attributable to our collaborators for their share of sales are recorded as cost of sales in our financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement of a collaborator's share of program costs is recorded as a reduction of the related expense item at that time. Cash Payments to Customers: UTC Climate, Controls & Security customarily offers its customers incentives to purchase products to ensure an adequate supply of its products in the distribution channels. The principal incentive program provides reimbursements to distributors for offering promotional pricing for our products. We account for incentive payments made as a reduction in sales. In our aerospace businesses, we may make participation payments to certain customers to secure certain contractual rights. To the extent these rights are incremental and are supported by the incremental cash flows obtained, they are capitalized as intangible assets. Otherwise, such payments are expensed. We classify the subsequent amortization of the capitalized acquired intangible assets from our customers as a reduction in sales. Contractually stated prices in arrangements with our customers that include the acquisition of intangible rights within the scope of the Intangibles - Goodwill and Other Topic of the FASB ASC and deliverables within the scope of the Revenue Recognition Topic of the FASB ASC are not presumed to be representative of fair value for determining the amounts to allocate to each element of an arrangement. Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. In 2015 and 2016, the FASB issued various updates to this ASU as follows:
ASU 2014-09 and its related amendments (collectively, the New Revenue Standard) are effective for reporting periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods; (i) a full retrospective adoption reflecting the application of the standard in each prior reporting period, or (ii) a modified retrospective approach with the cumulative effect of adopting recognized through retained earnings at the date of adoption. The New Revenue Standard is expected to change the revenue recognition practices for a number of revenue streams across our businesses, although the most significant impacts will be concentrated within our aerospace units. Several businesses, which currently account for revenue on a “point-in-time basis,” will be required to use an “over time” model as they meet one or more of the mandatory criteria established in the New Revenue Standard. Revenue will be recognized based on percentage-of-completion for repair contracts within both Otis and UTC Climate, Controls & Security; certain U.S. Government aerospace contracts; and aerospace aftermarket service work performed on a time and materials basis. For these businesses, unrecognized sales and operating profits related to the satisfied portion of the performance obligations of contracts in process as of the date of adoption will be recorded through retained earnings. The ongoing effect of recording revenue on a percentage-of-completion basis within these businesses is not expected to be material. In addition to the forgoing, our aerospace businesses will also incur changes related to the timing of manufacturing cost recognition and certain engineering and development costs. In most circumstances, our commercial aerospace businesses will identify the performance obligation, or the unit of accounting, as the individual original equipment (OEM) unit; revenues and costs to manufacture each unit will be recognized upon OEM unit delivery. Under current practice, the unit of accounting is the contract, and early-contract OEM unit costs in excess of the average expected over the contact are capitalized and amortized over lower-cost units later in the contract. With the adoption of the New Revenue Standard, any deferred unit costs in excess of the contract average will be eliminated through retained earnings and will not be amortized into future earnings. As of December 31, 2016, capitalized deferred unit costs in excess of the contract average are $233 million, which is expected to increase in 2017 prior to adoption of the New Revenue Standard. In regards to costs incurred for the engineering and development of aerospace products under contract with customers, we generally expense as incurred unless there is a contractually guaranteed right of recovery. Any customer funding received for such efforts is recognized when earned, with the corresponding costs recognized as cost of sales. Under the New Revenue Standard, customer funding of OEM product engineering and development must be deferred and recognized as revenue as the OEM products are delivered to the customer. There is currently less clarity regarding the accounting for the associated product engineering and development costs. As such, we are continuing to evaluate whether such costs should continue to be expensed or capitalized as contract fulfillment costs and subsequently amortized. For contracts that are open as of the adoption date, previously recognized customer funding will be established as a contract liability. We continue to evaluate the implications of the standard change. We intend to adopt the New Revenue Standard effective January 1, 2018 using the modified retrospective approach. Research and Development. Research and development costs not specifically covered by contracts and those related to the company sponsored share of research and development activity in connection with cost-sharing arrangements are charged to expense as incurred. Government research and development support, not associated with specific contracts, is recorded as a reduction to research and development expense in the period earned. See Note 8 for a discussion of amendments of certain government research and development support arrangements concluded in December 2015 between Pratt & Whitney Canada and the Canadian government. Research and development costs incurred under contracts with customers are included as a contract cost and reported as a component of cost of products sold when revenue from such contracts is recognized. Research and development costs in excess of contractual consideration is expensed as incurred. Foreign Exchange. We conduct business in many different currencies and, accordingly, are subject to the inherent risks associated with foreign exchange rate movements. The financial position and results of operations of substantially all of our foreign subsidiaries are measured using the local currency as the functional currency. Foreign currency denominated assets and liabilities are translated into U.S. Dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries are deferred as a separate component of shareowners' equity. Derivatives and Hedging Activity. We have used derivative instruments, including swaps, forward contracts and options, to help manage certain foreign currency, interest rate and commodity price exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. By their nature, all financial instruments involve market and credit risks. We enter into derivative and other financial instruments with major investment grade financial institutions and have policies to monitor the credit risk of those counterparties. We limit counterparty exposure and concentration of risk by diversifying counterparties. While there can be no assurance, we do not anticipate any material non-performance by any of these counterparties. We enter into transactions that are subject to enforceable master netting arrangements or other similar agreements with various counterparties. However, we have not elected to offset multiple contracts with a single counterparty and, as a result, the fair value of the derivative instruments in a loss position is not offset against the fair value of derivative instruments in a gain position. Derivatives used for hedging purposes may be designated and effective as a hedge of the identified risk exposure at the inception of the contract. All derivative instruments are recorded on the balance sheet at fair value. Derivatives used to hedge foreign-currency-denominated balance sheet items are reported directly in earnings along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate. Gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income and reclassified to earnings as a component of product sales or expenses, as applicable, when the hedged transaction occurs. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period it occurs. As discussed in Note 14, at December 31, 2016 we have approximately €2.95 billion of Euro-denominated long-term debt and €500 million of outstanding Euro-denominated commercial paper borrowings, which qualify as a net investment hedge against our investments in European businesses. To the extent the hedge accounting criteria are not met, the foreign currency forward contracts are utilized as economic hedges and changes in the fair value of these contracts are recorded currently in earnings in the period in which they occur. Additional information pertaining to foreign currency forward contracts and net investment hedging is included in Note 14. Environmental. Environmental investigatory, remediation, operating and maintenance costs are accrued when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including existing technology, current laws and regulations and prior remediation experience. Where no amount within a range of estimates is more likely, the minimum is accrued. For sites with multiple responsible parties, we consider our likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their obligations in establishing a provision for those costs. Liabilities with fixed or reliably determinable future cash payments are discounted. Accrued environmental liabilities are not reduced by potential insurance reimbursements. See Note 18 for additional details on the environmental remediation activities. Pension and Postretirement Obligations. Guidance under the Compensation - Retirement Benefits Topic of the FASB ASC requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Under this guidance, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit cost. Product Performance Obligations. We extend performance and operating cost guarantees beyond our normal service and warranty policies for extended periods on some of our products, particularly commercial aircraft engines. Liability under such guarantees is based upon future product performance and durability. We accrue for such costs that are probable and can be reasonably estimated. In addition, we incur discretionary costs to service our products in connection with product performance issues. The costs associated with these product performance and operating cost guarantees require estimates over the full terms of the agreements, and require management to consider factors such as the extent of future maintenance requirements and the future cost of material and labor to perform the services. These cost estimates are largely based upon historical experience. See Note 17 for further discussion. Collaborative Arrangements. In view of the risks and costs associated with developing new engines, Pratt & Whitney has entered into certain collaboration arrangements in which sales, costs and risks are shared. Sales generated from engine programs, spare parts, and aftermarket business under collaboration arrangements are recorded as earned in our financial statements. Amounts attributable to our collaborators for their share of sales are recorded as an expense in our financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement of the collaborators' share of program costs is recorded as a reduction of the related expense item at that time. As of December 31, 2016, the collaborators' interests in all commercial engine programs ranged from 14% to 50%, inclusive of a portion of Pratt & Whitney's interests held by other participants. Pratt & Whitney is the principal participant in all existing collaborative arrangements. There are no individually significant collaborative arrangements and none of the collaborators exceed a 31% share in an individual program. The following table illustrates the income statement classification and amounts attributable to transactions arising from the collaborative arrangements between participants for each period presented:
Accounting Pronouncements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This ASU requires the income tax consequences of an intra-entity transfer of an asset, other than inventory, to be recognized when the transfer occurs. Two common examples of assets included in the scope of this update are intellectual property and property, plant, and equipment. The provisions of this ASU are effective for years beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of this ASU. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU is intended to reduce diversity in practice in presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues, including requirements that 1) cash payments for debt prepayment or debt extinguishment costs be classified as cash outflows for financing activities; and 2) for cash receipts and payments that have aspects of more than one class of cash flows, each separately identifiable source or use within the cash receipts and payments should be classified on the basis of their underlying nature in financing, investing, or operating activities. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This ASU requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The provisions of ASU 2016-15 and ASU 2016-18 are effective for years beginning after December 15, 2017, with early adoption permitted. We have elected to early adopt the requirements of these ASUs effective December 31, 2016. Cash flow amounts for all periods presented have been updated to comply with the retrospective transition method, required by these ASUs upon adoption. As discussed in Note 9, for the year ended December 31, 2016, approximately $164 million in debt extinguishment costs have been classified as financing cash outflows in accordance with these updates. Additionally, cash flows provided by operating activities of continuing operations, attributable to changes in inventories and contracts in progress, and cash flows used in investing activities of continuing operations attributable to increases in customer financing assets for the year ended December 31, 2015 increased by approximately $78 million as a result of the required retrospective transition method of these updates. Other updates made as a result of adoption of these ASUs had an immaterial impact to the Consolidated Statement of Cash Flows. In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which amends the accounting for employee share-based payment transactions to require recognition of the tax effects resulting from the settlement of stock-based awards as income tax expense or benefit in the income statement in the reporting period in which they occur. The ASU also requires that all tax-related cash flows resulting from share-based payments, including the excess tax benefits related to the settlement of stock-based awards, be classified as cash flows from operating activities, and that cash paid by directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows. In addition, the ASU also allows companies to make an accounting policy election to either estimate the number of awards that are expected to vest, consistent with current U.S. GAAP, or account for forfeitures when they occur. The new standard is effective for annual reporting periods beginning after December 15, 2016 with early adoption permitted. We elected to early adopt the requirements of the amended standard in the third quarter of 2016 and are therefore required to report the impacts as though adopted on January 1, 2016. Accordingly, we recognized additional income tax benefits of approximately $22 million for the year ended December 31, 2016. In addition, we recognized the additional income tax benefits and cash paid by directly withholding shares for tax withholding purposes of approximately $19 million for the year ended December 31, 2016 as an increase in net cash flows provided by operating activities of continuing operations, and an increase in net cash flows used in financing activities of continuing operations. There is no change to our accounting policy with respect to estimation of forfeitures. In February 2016, the FASB issued ASU 2016- 02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statement of Operations. In addition, this standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as financing. If the lessor doesn’t convey risks and rewards or control, the lease is treated as operating. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases and lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are still evaluating the impact of our pending adoption of the new standard on our consolidated financial statements, we expect that upon adoption we will recognize ROU assets and lease liabilities and that the amounts could be material. We do not expect the ASU to have a material impact on our cash flows or results of operations. |
Schedule II - Valuation and Qualifying Accounts |
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Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II UNITED TECHNOLOGIES CORPORATION AND SUBSIDIARIES Valuation and Qualifying Accounts Three years ended December 31, 2016 (Millions of Dollars)
Note 1: Included in Other adjustments in the table above are adjustments to valuation allowances associated with an agreement with a state taxing authority for the monetization of tax credits. |
Business Acquisitions, Dispositions, Goodwill and Intangible Assets |
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Note 2: Business Acquisitions, Dispositions, Goodwill and Intangible Assets | BUSINESS ACQUISITIONS, DISPOSITIONS, GOODWILL AND INTANGIBLE ASSETS Business Acquisitions and Dispositions. As discussed further in Note 3, on November 6, 2015, we completed the sale of Sikorsky to Lockheed Martin Corp. for approximately $9.1 billion in cash. Our investments in businesses in 2016, 2015 and 2014 totaled $712 million (including debt assumed of $2 million), $556 million (including debt assumed of $18 million) and $530 million (including debt assumed of $128 million), respectively. Our investments in businesses in 2016 consisted of the acquisition of a majority interest in an Italian heating products and services company by UTC Climate, Controls & Security, the acquisition of a Japanese services company by Otis and a number of small acquisitions, primarily in our commercial businesses. Our investments in businesses in 2015 consisted of the acquisition of the majority interest in a UTC Climate, Controls & Security business, the acquisition of an imaging technology company by UTC Aerospace Systems, and a number of small acquisitions, primarily in our commercial businesses. Our investments in businesses in 2014 consisted of the acquisition of the majority interest in a Pratt & Whitney joint venture and a number of small acquisitions, primarily in our commercial businesses. Goodwill. The changes in the carrying amount of goodwill, by segment, in 2016 are as follows:
Intangible Assets. Identifiable intangible assets are comprised of the following:
Customer relationship intangible assets include payments made to our customers to secure certain contractual rights. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. We amortize these intangible assets based on the underlying pattern of economic benefit, which typically results in an amortization method other than straight-line. We classify amortization of such payments as a reduction of sales. Amortization of intangible assets was $778 million, $722 million and $713 million in 2016, 2015 and 2014, respectively. The collaboration intangible assets are amortized based upon the economic pattern of benefits as represented by the underlying cash flows. The following is the expected amortization of intangible assets for 2017 through 2021, which reflects the pattern of economic benefit on certain aerospace intangible assets:
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS On November 6, 2015 we completed the sale of Sikorsky to Lockheed Martin Corp. for $9.1 billion in cash. Accordingly, the results of operations and the cash flows related to Sikorsky have been classified in Discontinued Operations in our Consolidated Statements of Operations, Comprehensive Income and Cash Flows for all periods presented. In 2016, we recognized approximately $13 million of additional gain on the disposal, primarily resulting from the settlement of working capital adjustments. In 2016, we recognized approximately $24 million of income tax expense, including the impacts related to filing Sikorsky's 2015 tax returns. Net cash outflows from discontinued operations of approximately $2.5 billion for the year ended December 31, 2016 were primarily due to the payment of taxes related to the 2015 gain realized on the sale of Sikorsky. The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations:
UTC and its business segments have historically had sales to Sikorsky and purchases from Sikorsky, in the normal course of business, which were eliminated in consolidation. Net sales to Sikorsky were $138 million and $235 million for the years ended December 31, 2015 and 2014, respectively. Purchases from Sikorsky included in cost of products and services sold were $25 million and $17 million for the years ended December 31, 2015 and 2014, respectively. |
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Earnings Per Share Text Block | EARNINGS PER SHARE
The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock appreciation rights and stock options, when the average market price of the common stock is lower than the exercise price of the related stock awards during the period. These outstanding stock awards are not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. For 2016, 2015 and 2014, there were 14.5 million, 9.7 million and 3.5 million anti-dilutive stock awards excluded from the computation, respectively. |
Commercial Aerospace Industry Assets and Commitments |
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Commercial Aerospace Industry Assets and Commitments | NOTE 5: COMMERCIAL AEROSPACE INDUSTRY ASSETS AND COMMITMENTS We have receivables and other financing assets with commercial aerospace industry customers totaling $7,222 million and $6,143 million at December 31, 2016 and 2015, respectively. These include customer financing assets related to commercial aerospace industry customers, consisting of products under lease of $939 million and $537 million, and notes and leases receivable of $497 million and $566 million, at December 31, 2016 and 2015, respectively. Aircraft financing commitments, in the form of debt, guarantees or lease financing, are provided to commercial aerospace customers. The extent to which the financing commitments will be utilized is not currently known, since customers may be able to obtain more favorable terms from other financing sources. We may also arrange for third-party investors to assume a portion of these commitments. If financing commitments are exercised, debt financing is generally secured by assets with fair market values equal to or exceeding the financed amounts consistent with market terms and conditions. We may also lease aircraft and subsequently sublease the aircraft to customers under long-term non-cancelable operating leases. Lastly, we have made residual value and other guarantees related to various commercial aerospace customer financing arrangements. The estimated fair market values of the guaranteed assets equal or exceed the value of the related guarantees, net of existing reserves. We also have other contractual commitments, including commitments to secure certain contractual rights to provide products on new aircraft platforms, which are included in "Other commercial aerospace commitments" in the table below. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. Payments capitalized are included in intangible assets and are amortized over the term of underlying economic benefit. Our commercial aerospace financing and other contractual commitments as of December 31, 2016 were approximately $14.4 billion. We have entered into certain collaboration arrangements, which may include participation by our collaboration partners in these commitments. The following is the expected maturity of commercial aerospace industry assets and commitments as of December 31, 2016:
In connection with our 2012 agreement to acquire Rolls-Royce's ownership and collaboration interests in IAE, additional payments are due to Rolls-Royce contingent upon each hour flown through June 2027 by the V2500-powered aircraft in service as of the acquisition date.These flight hour payments, included in "Other commercial aerospace commitments" in the table above, are being capitalized as collaboration intangible assets. Our financing commitments with customers are contingent upon maintenance of certain levels of financial condition by the customers. In addition, we have residual value and other guarantees of $348 million as of December 31, 2016. We have long-term aftermarket maintenance contracts with commercial aerospace industry customers for which revenue is recognized in proportion to actual costs incurred relative to total expected costs to be incurred over the respective contract periods. Billings, however, are typically based on factors such as engine flight hours. The timing differences between the billings and the maintenance costs incurred generates both unbilled receivables and deferred revenues. Unbilled receivables under these long-term aftermarket contracts totaled $1,169 million and $1,091 million at December 31, 2016 and 2015, respectively, and are included in Accounts receivable and Other assets in the accompanying Consolidated Balance Sheet. Deferred revenues totaled $4,288 million and $3,502 million at December 31, 2016 and 2015, respectively, and are included in Accrued liabilities and Other long-term liabilities in the accompanying Consolidated Balance Sheet. Reserves related to aerospace notes and leases receivable were $16 million and $17 million at December 31, 2016 and 2015, respectively. Reserves related to aerospace receivables and other financing assets were $157 million and $200 million at December 31, 2016 and 2015, respectively. Reserves related to financing commitments and guarantees were $36 million and $47 million at December 31, 2016 and 2015, respectively. In addition, in connection with the 2012 Goodrich acquisition, we recorded assumed liabilities of approximately $2.2 billion related to customer contractual obligations on certain OEM development programs where the expected costs exceeded the expected revenue under contract. These liabilities are being liquidated in accordance with the underlying economic pattern of obligations, as reflected by the net cash outflows incurred on the OEM contracts. Total consumption of the contractual obligations was approximately $213 million and $193 million in 2016 and 2015, respectively. Expected consumption of the contractual obligations is as follows: $251 million in 2017, $248 million in 2018, $222 million in 2019, $149 million in 2020, $83 million in 2021 and $250 million thereafter. |
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Inventories and Contracts in Progress | INVENTORIES & CONTRACTS IN PROGRESS
Raw materials, work-in-process and finished goods are net of valuation reserves of $877 million and $760 million as of December 31, 2016 and 2015, respectively. Contracts in progress principally relate to elevator and escalator contracts and include costs of manufactured components, accumulated installation costs and estimated earnings on incomplete contracts. Inventories also include capitalized contract development costs related to certain aerospace programs at UTC Aerospace Systems. As of December 31, 2016 and 2015, these capitalized costs were $140 million and $152 million, respectively, which are being liquidated as production units are delivered to the customer. In addition, within commercial aerospace, inventory costs attributable to new engine offerings are recognized based on the average cost per unit expected over the life of each contract using the units-of-delivery method of percentage of completion accounting. Under this method, costs of initial engine deliveries in excess of the projected contract per unit average cost are capitalized, and these capitalized amounts are subsequently expensed as additional engine deliveries occur for engines with costs below the projected contract per unit average cost over the life of the contract. As of December 31, 2016 and 2015, inventories included $233 million and $13 million, respectively, of such capitalized amounts. Our sales contracts in many cases are long-term contracts expected to be performed over periods exceeding twelve months. At December 31, 2016 and 2015, approximately 68% and 67% respectively, of total inventories and contracts in progress have been acquired or manufactured under such long-term contracts, with approximately 41% scheduled for delivery within the succeeding twelve months for both 2016 and 2015. |
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Fixed Assets | FIXED ASSETS
Depreciation expense was $1,105 million in 2016, $1,068 million in 2015 and $1,043 million in 2014. |
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Accrued Liabilities | ACCRUED LIABILITIES
Income taxes payable as of December 31, 2015 includes taxes payable related to the gain on the sale of Sikorsky, which were substantially paid in 2016. The Canadian government has historically provided research and development support under certain Pratt & Whitney Canada programs, where repayment, if any, is made in the form of royalties, conditioned upon the achievement of certain financial targets including specific aircraft engine sales, total aircraft engine sales volume and total year-over-year sales growth of the entity receiving the government funding. On December 30, 2015, Pratt & Whitney Canada and federal and provincial Canadian government agencies entered into amendments of certain government research and development support arrangements. Under the amendments, Pratt & Whitney Canada agreed to make four annual payments of approximately $327 million Canadian (approximately $245 million at December 2016) each, commencing in the first quarter of 2016, to fully settle and terminate Pratt & Whitney Canada's future contractual obligations to pay royalties to these agencies that had previously been contingent upon future engine deliveries and Pratt & Whitney Canada sales; to maintain its commitments to perform certain assembly, test and manufacturing operations in Canada; and to provide support of innovation and research and development through initiatives with post-secondary institutions and key industry associations in Canada over a fourteen year period. As a result of the amendments to these contractual arrangements, Pratt & Whitney recorded a charge and related discounted obligation of $867 million in the fourth quarter of 2015. The Canadian government settlement included in the table above represents amounts expected to be paid under this agreement in 2017, with the remaining provision of approximately $477 million and $626 million included in Other long-term liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2016 and 2015, respectively. |
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Borrowings and Lines of Credit | BORROWINGS AND LINES OF CREDIT
At December 31, 2016, we had revolving credit agreements with various banks permitting aggregate borrowings of up to $4.35 billion pursuant to a $2.20 billion revolving credit agreement and a $2.15 billion multicurrency revolving credit agreement, both of which expire in August 2021. As of December 31, 2016, there were no borrowings under either of these revolving credit agreements. The undrawn portions of these revolving credit agreements are also available to serve as backup facilities for the issuance of commercial paper. As of December 31, 2016, our maximum commercial paper borrowing limit was $4.35 billion. Commercial paper borrowings at December 31, 2016 reflect approximately €500 million ($522 million) of Euro-denominated commercial paper. We use our commercial paper borrowings for general corporate purposes, including the funding of potential acquisitions and repurchases of our common stock. The need for commercial paper borrowings arises when the use of domestic cash for acquisitions, dividends, and share repurchases exceeds the sum of domestic cash generation and foreign cash repatriated to the U.S. At December 31, 2016, approximately $1.5 billion was available under short-term lines of credit with local banks at our various domestic and international subsidiaries. The weighted-average interest rates applicable to short-term borrowings and total debt were as follows:
Long-term debt consisted of the following as of December 31:
On December 1, 2016, we redeemed all outstanding 5.375% notes due in 2017, representing $1.0 billion in aggregate principal, and all outstanding 6.125% notes due in 2019, representing $1.25 billion in aggregate principal, under our redemption notice issued on November 1, 2016. A combined net extinguishment loss of approximately $164 million was recognized within Interest expense, net in the accompanying Consolidated Statement of Operations. On November 1, 2016, we issued $650 million aggregate principal amount of 1.500% notes due 2019, $750 million aggregate principal amount of 1.950% notes due 2021, $1,150 million aggregate principal amount of 2.650% notes due 2026, $1,100 million aggregate principal amount of 3.750% notes due 2046 and $350 million aggregate principal amount of floating rate notes due 2019. We used the net proceeds received from these issuances to fund the redemption price of the 5.375% notes due 2017 and the 6.125% notes due 2019, to fund the repayment of commercial paper, and for other general corporate purposes. On February 22, 2016, we issued €950 million aggregate principal amount of 1.125% notes due 2021, €500 million aggregate principal amount of 1.875% notes due 2026 and €750 million aggregate principal amount of floating rate notes due 2018. The net proceeds from these debt issuances were used for general corporate purposes. On May 4, 2015, we completed the previously announced optional remarketing of the 1.550% junior subordinated notes, which were originally issued as part of our equity units on June 18, 2012. As a result of the remarketing, these notes were redesignated as our 1.778% junior subordinated notes due May 4, 2018. The 1.778% junior subordinated notes are effectively subordinated to existing or future preferred stock and indebtedness, guarantees and other liabilities, and are not redeemable prior to maturity. On August 3, 2015, we received approximately $1.1 billion from the proceeds of the remarketing, and issued approximately 11.3 million shares of Common Stock to settle the purchase obligation of the holders of the equity units under the purchase contract entered into at the time of the original issuance of the equity units. On May 1, 2015, we repaid all 4.875% notes due in 2015, representing $1.2 billion in aggregate principal. On June 1, 2015, we repaid all floating rate notes due in 2015, representing $500 million in aggregate principal. On May 4, 2015, we issued $850 million aggregate principal amount of 4.150% notes due May 15, 2045. On May 22, 2015 we issued €750 million aggregate principal amount of 1.250% notes due May 22, 2023. The net proceeds from these debt issuances were used primarily to repay the 4.875% notes and floating rate notes that matured during the quarter ended June 30, 2015. The project financing obligations included in the table above are associated with the sale of rights to unbilled revenues related to the ongoing activity of an entity owned by UTC Climate, Controls & Security. The percentage of total short-term borrowings and long-term debt at variable interest rates was 7% and 5% at December 31, 2016 and 2015, respectively. Interest rates on our commercial paper borrowings are considered variable due to their short-term duration and high-frequency of turnover. The average maturity of our long-term debt at December 31, 2016 is approximately ten years. The schedule of principal payments required on long-term debt for the next five years and thereafter is:
On April 29, 2016, we renewed our universal shelf registration statement filed with the Securities and Exchange Commission (SEC) for an indeterminate amount of equity and debt securities for future issuance, subject to our internal limitations on the amount of equity and debt to be issued under this shelf registration statement. |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | EQUITY On November 11, 2015, we entered into ASR agreements to repurchase an aggregate of $6.0 billion of our common stock utilizing the net after-tax proceeds from the sale of Sikorsky. Under the terms of the ASR agreements, we made the aggregate payments and received an initial delivery of approximately 51.9 million shares of our common stock, representing approximately 85% of the shares expected to be repurchased. In 2016, the shares associated with the remaining portion of the aggregate purchase were settled upon final delivery to us of approximately 10.1 million additional shares of common stock. Including the remaining shares settled in 2016, the final price under the November 11, 2015 ASR was $96.74 per share. On March 13, 2015, we entered into ASR agreements to repurchase an aggregate of $2.65 billion of our common stock. Under the terms of the ASR agreements, we made the aggregate payments and received an initial delivery of approximately 18.6 million shares of our common stock, representing approximately 85% of the shares expected to be repurchased. On July 31, 2015, the shares associated with the remaining portion of the aggregate purchase were settled upon final delivery of approximately 4.2 million additional shares of common stock. Including the remaining shares settled on July 31, 2015, the final price under the ASR was $116.11 per share. As discussed in Note 9, on August 3, 2015, we received approximately $1.1 billion from the proceeds of the remarketing of our 1.550% junior subordinated notes, which were originally issued as part of our equity units on June 18, 2012, and issued approximately 11.3 million shares of common stock to settle the purchase obligation of the holders of the equity units under the purchase contract entered into at the time of the original issuance of the equity units. A summary of the changes in each component of accumulated other comprehensive (loss) income, net of tax for the years ended December 31, 2016 and 2015 is provided below:
Amounts reclassified related to our defined benefit pension and postretirement plans include amortization of prior service costs and actuarial net losses recognized during each period presented. These costs are recorded as components of net periodic pension cost for each period presented (see Note 12 for additional details). Changes in noncontrolling interests that do not result in a change of control, and where there is a difference between fair value and carrying value, are accounted for as equity transactions. The pro-forma (decrease) increase in Net income attributable to common shareowners would have been $(8) million, $12 million and $(71) million for the years ended December 31, 2016, 2015 and 2014, respectively, had they been recorded through net income. |
Income Taxes |
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Notes to Consolidated Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES Income Before Income Taxes. The sources of income from continuing operations before income taxes are:
With few exceptions, U.S. income taxes have not been provided on undistributed earnings of UTC's international subsidiaries. These earnings relate to ongoing operations and were approximately $31 billion as of December 31, 2016. It is not practicable to estimate the amount of tax that might be payable. We intend to reinvest these earnings permanently outside the U.S. or to repatriate the earnings only when it is tax effective to do so. Provision for Income Taxes. The income tax expense (benefit) for the years ended December 31, 2016, 2015 and 2014 consisted of the following components:
Reconciliation of Effective Income Tax Rate. Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows:
The 2016 effective tax rate reflects $206 million of favorable adjustments related to the conclusion of the review by the Examination Division of the Internal Revenue Service of both the UTC 2011 and 2012 tax years and the Goodrich Corporation 2011 and 2012 tax years through the date of its acquisition as well as the absence of 2015 items described below. In addition, at the end of 2016 France enacted a tax law change reducing its corporate income tax rate which resulted in a tax benefit of $25 million. The 2015 effective tax rate reflects an unfavorable tax adjustment of $274 million related to the repatriation of certain foreign earnings, the majority of which were 2015 current year earnings, and a favorable adjustment of approximately $45 million related to a non-taxable gain recorded in the first quarter. France, the U.K. and certain U.S. states enacted tax law changes in the fourth quarter which resulted in a net incremental cost of approximately $68 million in 2015. The 2014 effective tax rate reflects favorable tax adjustments of $371 million related to the conclusion of the examination of UTC's 2009 - 2010 tax years, the resolution of disputed tax matters with the Appeals Division of the IRS for UTC's 2006 - 2008 tax years, the conclusion of the State of Connecticut's review of UTC's 2010 - 2012 tax years and the conclusion of the Canada Revenue Agency's examination of the company's research credits claimed in 2006 - 2012. Also included was a favorable tax adjustment of $175 million associated with management’s decision to repatriate additional high taxed dividends from the current year. These were partially offset by an unfavorable tax adjustment of approximately $265 million related to the 1998 reorganization of the corporate structure of Otis operations in Germany, a matter which is currently in litigation. This is reported in the table above in tax on international activities. Deferred Tax Assets and Liabilities. Future income taxes represent the tax effects of transactions which are reported in different periods for tax and financial reporting purposes. These amounts consist of the tax effects of temporary differences between the tax and financial reporting balance sheets and tax carryforwards. Future income tax benefits and payables within the same tax paying component of a particular jurisdiction are offset for presentation in the Consolidated Balance Sheet. The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2016 and 2015 are as follows:
Valuation allowances have been established primarily for tax credit carryforwards, tax loss carryforwards, and certain foreign temporary differences to reduce the future income tax benefits to expected realizable amounts. Tax Credit and Loss Carryforwards. At December 31, 2016, tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows:
Unrecognized Tax Benefits. At December 31, 2016, we had gross tax-effected unrecognized tax benefits of $1,086 million, all of which, if recognized, would impact the effective tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014 is as follows:
Included in the balance at December 31, 2014 is $87 million of tax positions whose tax characterization is highly certain but for which there is uncertainty about the timing of tax return inclusion. Because of the impact of deferred tax accounting, other than interest and penalties, the timing would not impact the annual effective tax rate but could accelerate the payment of cash to the taxing authority to an earlier period. We conduct business globally and, as a result, UTC or one or more of our subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong, India, Italy, Japan, Mexico, Netherlands, Poland, Singapore, South Korea, Spain, Switzerland, and the United Kingdom and the United States. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2005. During the quarter ended December 31, 2016, the Company recognized a noncash gain of approximately $172 million, including a pre-tax interest adjustment of $22 million, as a result of the closure of the audit by the Examination Division of the Internal Revenue Service (IRS) of UTC tax years 2011 and 2012. The IRS has notified the Company of its intention to begin an audit of tax year 2014 during the first quarter of 2017. During the quarter ended September 30, 2016, the Company recognized a noncash gain of approximately $58 million, primarily tax, as a result of the closure of the audit by the Examination Division of the IRS of Goodrich Corporation tax years 2011 and 2012 through the date of acquisition by UTC. During 2014, the Company resolved various tax audit, appeal and litigation activity with the IRS, Connecticut Department of Revenue, and French and Canadian taxing authorities resulting in approximately $508 million of primarily noncash tax gains, including pre-tax interest adjustments of $132 million. During 2014, the Company also reached an agreement with a state taxing authority for the monetization of tax credits resulting in a gain of approximately $220 million through Other Income. It is reasonably possible that over the next 12 months the amount of unrecognized tax benefits may change within a range of a net increase of $50 million to a net decrease of $495 million as a result of additional worldwide uncertain tax positions, the revaluation of current uncertain tax positions arising from developments in examinations, in appeals, or in the courts, or the closure of tax statutes. See Note 18 "Contingent Liabilities" for discussion regarding uncertain tax positions, included in the above range, related to pending litigation with respect to certain deductions claimed in Germany. |
Employee Benefit Plans |
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Employee Benefits and Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We sponsor numerous domestic and foreign employee benefit plans, which are discussed below. Employee Savings Plans. We sponsor various employee savings plans. Our contributions to employer sponsored defined contribution plans were $318 million, $356 million and $330 million for 2016, 2015 and 2014, respectively. Our non-union domestic employee savings plan uses an Employee Stock Ownership Plan (ESOP) for employer matching contributions. External borrowings were used by the ESOP to fund a portion of its purchase of ESOP stock from us. The external borrowings have been extinguished and only re-amortized loans remain between UTC and the ESOP Trust. As ESOP debt service payments are made, common stock is released from an unreleased shares account. ESOP debt may be prepaid or re-amortized to either increase or decrease the number of shares released so that the value of released shares equals the value of plan benefit. We may also, at our option, contribute additional common stock or cash to the ESOP. Shares of common stock are allocated to employees' ESOP accounts at fair value on the date earned. Cash dividends on common stock held by the ESOP are used for debt service payments. Participants may choose to have their ESOP dividends reinvested or distributed in cash. Common stock allocated to ESOP participants is included in the average number of common shares outstanding for both basic and diluted earnings per share. At December 31, 2016, 27.8 million common shares had been allocated to employees, leaving 11.7 million unallocated common shares in the ESOP Trust, with an approximate fair value of $1.3 billion. Pension Plans. We sponsor both funded and unfunded domestic and foreign defined benefit pension plans that cover a large number of our employees. Our largest plans are generally closed to new participants. Our plans use a December 31 measurement date consistent with our fiscal year.
At the end of fiscal 2015, we changed the approach we use to estimate the service and interest components of net periodic pension cost for our significant pension plans. This change compared to the previous approach resulted in a net decrease in the service and interest components of our annual net periodic pension cost of approximately $215 million for 2016. Historically, we estimated the service and interest cost components utilizing a single-weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. We have elected to utilize a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in determination of the benefit obligation to the relevant projected cash flows. We have made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. This change does not materially affect the measurement of our total benefit obligations. As part of our long-term strategy to de-risk our defined benefit pension plans, we entered into an agreement to purchase a group annuity contract to transfer approximately $768 million of our outstanding pension benefit obligations related to certain U.S. retirees or beneficiaries, which was finalized on October 12, 2016. We also offered certain former U.S. employees or beneficiaries (generally all former U.S. participants not yet in receipt of their vested pension benefits) an option to take a one-time lump-sum distribution in lieu of future monthly pension payments, which reduced our pension benefit obligations by approximately $935 million. These transactions reduced the assets of our defined benefit pension plans by approximately $1.5 billion. As a result of these transactions, we recognized a one-time pre-tax pension settlement charge of approximately $423 million in the fourth quarter of 2016. The amounts included in "Other" in the above table primarily reflect the impact of foreign exchange translation, primarily for plans in the U.K. and Canada. As approved in 2016, effective January 1, 2017, a voluntary lump-sum option is available for the frozen final average earnings benefits of certain U.S. salaried employees upon termination of employment after 2016. This option provides participants with the choice of electing to receive a lump-sum payment in lieu of receiving a future monthly pension benefit. This plan change reduced the projected benefit obligation by $170 million. In 2014, we offered a voluntary lump-sum pension payout program to certain eligible terminated vested participants (generally any terminated vested participant with a lump-sum value of $50,000 or less) that settled our obligation to those participants who accepted the offer. The program provided participants with a one-time choice of electing to receive a lump-sum settlement in lieu of receiving a future monthly pension benefit. Payments to participants who accepted the offer began in 2014 and were completed in 2015. As part of this voluntary lump-sum program, the Company settled $147 million and $311 million of its projected benefit obligation in 2015 and 2014, respectively. Qualified domestic pension plan benefits comprise approximately 75% of the projected benefit obligation. Benefits for union employees are generally based on a stated amount for each year of service. For non-union employees, benefits for service up to December 31, 2014 are generally based on an employee's years of service and compensation through December 31, 2014. Benefits for service after December 31, 2014 are based on the existing cash balance formula that was adopted in 2003 for newly hired non-union employees and for other non-union employees who made a one-time voluntary election to have future benefit accruals determined under this formula. Certain foreign plans, which comprise approximately 24% of the projected benefit obligation, are considered defined benefit plans for accounting purposes. Nonqualified domestic pension plans provide supplementary retirement benefits to certain employees and are not a material component of the projected benefit obligation. We made $100 million of cash contributions to our domestic defined benefit pension plans and made $203 million of cash contributions to our foreign defined benefit pension plans in 2016. In 2015, we contributed $250 million in UTC common stock to our domestic defined benefit pension plans and made $147 million of cash contributions to our foreign defined benefit pension plans. Information for pension plans with accumulated benefit obligations in excess of plan assets:
The accumulated benefit obligation for all defined benefit pension plans was $34.2 billion and $34.6 billion at December 31, 2016 and 2015, respectively. The components of the net periodic pension cost are as follows:
Net settlement and curtailment losses for pension benefits includes curtailment losses of approximately $109 million and $1 million related to, and recorded in, discontinued operations for the years ended December 31, 2015 and 2014, respectively. In addition, total net periodic pension cost includes approximately $98 million and $96 million related to, and recorded in, discontinued operations for the years ended December 31, 2015 and 2014, respectively. Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2016 are as follows:
The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in 2017 is as follows:
Major assumptions used in determining the benefit obligation and net cost for pension plans are presented in the following table as weighted-averages:
In determining the expected return on plan assets, we consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes, and economic and other indicators of future performance. In addition, we may consult with and consider the opinions of financial and other professionals in developing appropriate capital market assumptions. Return projections are also validated using a simulation model that incorporates yield curves, credit spreads and risk premiums to project long-term prospective returns. The plans' investment management objectives include providing the liquidity and asset levels needed to meet current and future benefit payments while maintaining a prudent degree of portfolio diversification considering interest rate risk and market volatility. Globally, investment strategies target a mix of 55% to 65% of growth seeking assets and 35% to 45% income generating and hedging assets using a wide diversification of asset types, fund strategies and investment managers. The growth seeking allocation consists of global public equities in developed and emerging countries, private equity, real estate and balanced market risk strategies. Within public equities, approximately 11% of the total investment portfolio is an enhanced equity strategy that invests in publicly traded equity and fixed income securities, derivatives and foreign currency. Investments in private equity are primarily via limited partnership interests in buy-out strategies with smaller allocations to distressed debt funds. The real estate strategy is principally concentrated in directly held U.S. core investments with some smaller investments in international, value-added and opportunistic strategies. Within the income generating assets, the fixed income portfolio consists of mainly government and broadly diversified high quality corporate bonds. The plans have continued their pension risk management techniques designed to reduce the plans' interest rate risk. More specifically, the plans have incorporated liability hedging programs that include the adoption of a risk reduction objective as part of the long-term investment strategy. Under this objective the interest rate hedge is dynamically increased as funded status improves. The hedging programs incorporate a range of assets and investment tools, each with ranging interest rate sensitivity. The investment portfolios are currently hedging approximately 35% to 45% of the interest rate sensitivity of the pension plan liabilities. The fair values of pension plan assets at December 31, 2016 and 2015 by asset category are as follows:
Derivatives in the plan are primarily used to manage risk and gain asset class exposure while still maintaining liquidity. Derivative instruments mainly consist of equity futures, interest rate futures, interest rate swaps and currency forward contracts. Our common stock represents approximately 1% and 3% of total plan assets at December 31, 2016 and 2015, respectively. We review our assets at least quarterly to ensure we are within the targeted asset allocation ranges and, if necessary, asset balances are adjusted back within target allocations. We employ a broadly diversified investment manager structure that includes diversification by active and passive management, style, capitalization, country, sector, industry and number of investment managers. The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed due to the following:
Quoted market prices are used to value investments when available. Investments in securities traded on exchanges, including listed futures and options, are valued at the last reported sale prices on the last business day of the year or, if not available, the last reported bid prices. Fixed income securities are primarily measured using a market approach pricing methodology, where observable prices are obtained by market transactions involving identical or comparable securities of issuers with similar credit ratings. Mortgages have been valued on the basis of their future principal and interest payments discounted at prevailing interest rates for similar investments. Investment contracts are valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations. Real estate investments are valued on a quarterly basis using discounted cash flow models which consider long-term lease estimates, future rental receipts and estimated residual values. Valuation estimates are supplemented by third-party appraisals on an annual basis. Private equity limited partnerships are valued quarterly using discounted cash flows, earnings multiples and market multiples. Valuation adjustments reflect changes in operating results, financial condition, or prospects of the applicable portfolio company. Over-the-counter securities and government obligations are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes. Temporary cash investments are stated at cost, which approximates fair value. Although we are not required to make additional contributions to our domestic defined benefit pension plans through the end of 2021, we may elect to make discretionary contributions in 2017. We expect to make total contributions of approximately $300 million to our global defined benefit pension plans in 2017, including discretionary contributions of approximately $150 million to our domestic defined benefit pension plans. Contributions do not reflect benefits to be paid directly from corporate assets. Benefit payments, including amounts to be paid from corporate assets, and reflecting expected future service, as appropriate, are expected to be paid as follows: $1,930 million in 2017, $1,847 million in 2018, $1,896 million in 2019, $1,948 million in 2020, $1,994 million in 2021, and $10,545 million from 2022 through 2026. Postretirement Benefit Plans. We sponsor a number of postretirement benefit plans that provide health and life benefits to eligible retirees. Such benefits are provided primarily from domestic plans, which comprise approximately 87% of the benefit obligation. The postretirement plans are unfunded.
The components of net periodic benefit cost are as follows:
Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2016 are as follows:
The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2017 include actuarial net gains of $10 million and prior service credits of $1 million. Major assumptions used in determining the benefit obligation and net cost for postretirement plans are presented in the following table as weighted-averages:
Assumed health care cost trend rates are as follows:
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects:
Benefit payments, including net amounts to be paid from corporate assets and reflecting expected future service, as appropriate, are expected to be paid as follows: $78 million in 2017, $75 million in 2018, $70 million in 2019, $65 million in 2020, $60 million in 2021, and $242 million from 2022 through 2026. Multiemployer Benefit Plans. We contribute to various domestic and foreign multiemployer defined benefit pension plans. The risks of participating in these multiemployer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. Lastly, if we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans a withdrawal liability based on the underfunded status of the plan. Our participation in these plans for the annual periods ended December 31 is outlined in the table below. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2016 and 2015 is for the plan's year-end at June 30, 2015, and June 30, 2014, respectively. The zone status is based on information that we received from the plan and is certified by the plan's actuary. Our significant plan is in the green zone which represents a plan that is at least 80% funded and does not require a financial improvement plan (FIP) or a rehabilitation plan (RP). An extended amortization provision of ten years is utilized to recognize investment gains or losses for our significant plan.
For the plan years ended June 30, 2015 and 2014, respectively, we were listed in the National Elevator Industry Pension Plan's Forms 5500 as providing more than 5% of the total contributions for the plan. At the date these financial statements were issued, Forms 5500 were not available for the plan year ending June 30, 2016. In addition, we participate in several multiemployer arrangements that provide postretirement benefits other than pensions, with the National Elevator Industry Health Benefit Plan being the most significant. These arrangements generally provide medical and life benefits for eligible active employees and retirees and their dependents. Contributions to multiemployer plans that provide postretirement benefits other than pensions were $17 million, $15 million and $14 million for 2016, 2015 and 2014, respectively. Stock-based Compensation. UTC's long-term incentive plan authorizes various types of market and performance based incentive awards that may be granted to officers and employees. Our Long-Term Incentive Plan (LTIP) was last amended on February 5, 2016. Since the LTIP's inception in 2005, a total of 149 million shares have been authorized for issuance pursuant to awards under the LTIP. All equity-based compensation awards are made exclusively through the LTIP. As of December 31, 2016, approximately 38 million shares remain available for awards under the LTIP. The LTIP does not contain an aggregate annual award limit. We expect that the shares awarded on an annual basis will range from 1.0% to 1.5% of shares outstanding. The LTIP will expire after all authorized shares have been awarded or April 30, 2020, whichever is sooner. Under the LTIP and predecessor long-term incentive plans, the exercise price of awards is set on the grant date and may not be less than the fair market value per share on that date. Generally, stock appreciation rights and stock options have a term of ten years and a minimum three-year vesting period. In the event of retirement, awards held for more than one year may become vested and exercisable subject to certain terms and conditions. LTIP awards with performance-based vesting generally have a minimum three-year vesting period and vest based on performance against pre-established metrics. In the event of retirement, vesting for awards held more than one year does not accelerate but may vest as scheduled based on actual performance relative to target metrics. We have historically repurchased shares of our common stock in an amount at least equal to the number of shares issued under our equity compensation arrangements and will continue to evaluate this policy in conjunction with our overall share repurchase program. We measure the cost of all share-based payments, including stock options, at fair value on the grant date and recognize this cost in the Consolidated Statement of Operations as follows:
The associated future income tax benefit recognized was $49 million, $57 million and $80 million for the years ended December 31, 2016, 2015 and 2014, respectively. For the years ended December 31, 2016, 2015 and 2014, the amount of cash received from the exercise of stock options was $17 million, $41 million and $187 million, respectively, with an associated tax benefit realized of $69 million, $89 million and $125 million, respectively. In addition, for the years ended December 31, 2016, 2015 and 2014, the associated tax benefit realized from the vesting of performance share units and other restricted awards was $17 million, $48 million and $49 million, respectively. Also, as described in Note 1 "Summary of Accounting Principles," during 2016, we early adopted the provisions of ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." Please refer to Note 1 for additional information regarding the impact of the early adoption on the 2016 financial statements. As part of that adoption, we elected to apply the prospective transition method and therefore, did not revise prior years' disclosure. As such, for the years ended December 31, 2015 and 2014, based on existing guidance prior to the issuance of ASU 2016-09, $64 million and $103 million, respectively, of certain tax benefits have been reported as operating cash outflows with corresponding cash inflows from financing activities. At December 31, 2016, there was $157 million of total unrecognized compensation cost related to non-vested equity awards granted under long-term incentive plans. This cost is expected to be recognized ratably over a weighted-average period of 3.1 years. A summary of the transactions under all long-term incentive plans for the year ended December 31, 2016 follows:
The weighted-average grant date fair value of stock options and stock appreciation rights granted during 2016, 2015 and 2014 was $14.02, $18.69 and $28.36, respectively. The weighted-average grant date fair value of performance share units, which vest upon achieving certain performance metrics, granted during 2016, 2015 and 2014 was $91.63, $120.36 and $125.41, respectively. The total fair value of awards vested during the years ended December 31, 2016, 2015 and 2014 was $165 million, $247 million and $226 million, respectively. The total intrinsic value (which is the amount by which the stock price exceeded the exercise price on the date of exercise) of stock options and stock appreciation rights exercised during the years ended December 31, 2016, 2015 and 2014 was $214 million, $281 million and $425 million, respectively. The total intrinsic value (which is the stock price at vesting) of performance share units and other restricted awards vested was $61 million, $151 million and $154 million during the years ended December 31, 2016, 2015 and 2014, respectively. The following table summarizes information about equity awards outstanding that are vested and expected to vest and equity awards outstanding that are exercisable at December 31, 2016:
The fair value of each option award is estimated on the date of grant using a binomial lattice model. The following table indicates the assumptions used in estimating fair value for the years ended December 31, 2016, 2015 and 2014. Lattice-based option models incorporate ranges of assumptions for inputs, those ranges are as follows:
Expected volatilities are based on the returns of our stock, including implied volatilities from traded options on our stock for the binomial lattice model. We use historical data to estimate equity award exercise and employee termination behavior within the valuation model. Prior to 2016, separate employee groups and equity award characteristics were considered separately for valuation purposes. The expected term represents an estimate of the period of time equity awards are expected to remain outstanding. The risk-free rate is based on the term structure of interest rates at the time of equity award grant. |
Restructuring and Other Costs |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING COSTS During 2016, we recorded net pre-tax restructuring costs totaling $290 million for new and ongoing restructuring actions. We recorded charges in the segments as follows:
Restructuring charges incurred in 2016 primarily relate to actions initiated during 2016 and 2015, and were recorded as follows:
2016 Actions. During 2016, we recorded net pre-tax restructuring costs totaling $242 million for restructuring actions initiated in 2016, consisting of $149 million in cost of sales, $67 million in selling, general and administrative expenses, and $26 million in other expense. The 2016 actions relate to ongoing cost reduction efforts, including workforce reductions, consolidation of field operations, and costs to exit legacy programs. We are targeting to complete in 2017 and 2018 the majority of the remaining workforce and all facility related cost reduction actions initiated in 2016. No specific plans for significant other actions have been finalized at this time. The following table summarizes the accrual balances and utilization by cost type for the 2016 restructuring actions:
The following table summarizes expected, incurred and remaining costs for the 2016 restructuring actions by segment:
2015 Actions. During 2016, we recorded net pre-tax restructuring costs totaling $40 million for restructuring actions initiated in 2015, consisting of $36 million in cost of sales and $4 million in selling, general and administrative expenses. The 2015 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. The following table summarizes the accrual balances and utilization by cost type for the 2015 restructuring actions:
The following table summarizes expected, incurred and remaining costs for the 2015 programs by segment:
During 2016, we had reversals of previously accrued restructuring reserves for 2015 programs of approximately $65 million, which includes a Pratt & Whitney business that was sold in the third quarter of 2016 after originally being scheduled for closure, and a UTC Climate, Controls & Security facility that will remain operational after originally being scheduled for closure. |
Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Disclosure [Text Block] | NOTE 14: FINANCIAL INSTRUMENTS We enter into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments under the Derivatives and Hedging Topic of the FASB ASC and those utilized as economic hedges. We operate internationally and, in the normal course of business, are exposed to fluctuations in interest rates, foreign exchange rates and commodity prices. These fluctuations can increase the costs of financing, investing and operating the business. We have used derivative instruments, including swaps, forward contracts and options to manage certain foreign currency, interest rate and commodity price exposures. The four quarter rolling average of the notional amount of foreign exchange contracts hedging foreign currency transactions was $18.3 billion and $15.6 billion at December 31, 2016 and 2015, respectively. Additional information pertaining to foreign exchange and hedging activities is included in Note 1. The following table summarizes the fair value of derivative instruments as of December 31, 2016 and 2015 which consist solely of foreign exchange contracts:
As discussed in Note 9, at December 31, 2016 we have approximately €2.95 billion of Euro-denominated long-term debt and €500 million of outstanding Euro-denominated commercial paper borrowings, which qualify as a net investment hedge against our investments in European businesses. As of December 31, 2016, the net investment hedge is deemed to be effective. The impact from foreign exchange derivative instruments that qualified as cash flow hedges was as follows:
Assuming current market conditions continue, a $59 million pre-tax loss is expected to be reclassified from Accumulated other comprehensive loss into Product sales to reflect the fixed prices obtained from foreign exchange hedging within the next 12 months. At December 31, 2016, all derivative contracts accounted for as cash flow hedges mature by November 2022. The effect on the Consolidated Statement of Operations of foreign exchange contracts not designated as hedging instruments was as follows:
We received $249 million, $160 million, and $93 million from settlements of derivative contracts during the years ended December 31, 2016, 2015 and 2014, respectively. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS In accordance with the provisions of ASC 820, the following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and non-recurring basis in our Consolidated Balance Sheet as of December 31, 2016 and 2015:
During 2015, we recorded net gains of approximately $126 million as a result of a fair value adjustment related to the acquisition of a controlling interest in a UTC Climate, Controls & Security joint venture investment, and an impairment charge of $61 million, related to certain assets held for sale by UTC Aerospace Systems. Valuation Techniques. Our available-for-sale securities include equity investments that are traded in active markets, either domestically or internationally and are measured at fair value using closing stock prices from active markets. Our derivative assets and liabilities include foreign exchange contracts and commodity derivatives that are measured at fair value using internal models based on observable market inputs such as forward rates, interest rates, our own credit risk and our counterparties' credit risks. As of December 31, 2016, there were no significant transfers in and out of Level 1 and Level 2. As of December 31, 2016, there has not been any significant impact to the fair value of our derivative liabilities due to our own credit risk. Similarly, there has not been any significant adverse impact to our derivative assets based on our evaluation of our counterparties' credit risks. The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value at December 31, 2016 and 2015:
The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Consolidated Balance Sheet as of December 31, 2016:
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Variable Interest Entities (Notes) |
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Schedule of Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity Disclosure [Text Block] | VARIABLE INTEREST ENTITIES In 2012, Pratt & Whitney, Rolls-Royce plc (Rolls-Royce), MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC), participants in the IAE International Aero Engines AG (IAE) collaboration, completed a restructuring of their interests in IAE. As a result of this transaction, Pratt & Whitney holds a 61% net interest in the collaboration and a 49.5% ownership interest in IAE. IAE's business purpose is to coordinate the design, development, manufacturing and product support of the V2500 program through involvement with the collaborators. Additionally, Pratt & Whitney, JAEC and MTU are participants in International Aero Engines, LLC (IAE LLC), whose business purpose is to coordinate the design, development, manufacturing and product support for the PW1100G-JM engine for the Airbus A320neo aircraft and the PW1400G-JM engine for the Irkut MC21 aircraft. Pratt & Whitney holds a 59% net interest in the collaboration and a 59% ownership interest in IAE LLC. IAE and IAE LLC retain limited equity with the primary economics of the programs passed to the participants. As such, we have determined that IAE and IAE LLC are variable interest entities with Pratt & Whitney the primary beneficiary. IAE and IAE LLC have, therefore, been consolidated. The carrying amounts and classification of assets and liabilities for variable interest entities in our Consolidated Balance Sheet as of December 31, 2016 and 2015 are as follows:
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Guarantees |
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Guarantees | GUARANTEES We extend a variety of financial guarantees to third parties. As of December 31, 2016 and 2015, the following financial guarantees were outstanding:
We also have obligations arising from sales of certain businesses and assets, including those from representations and warranties and related indemnities for environmental, health and safety, tax and employment matters. The maximum potential payment related to these obligations is not a specified amount as a number of the obligations do not contain financial caps. The carrying amount of liabilities related to these obligations was $171 million at December 31, 2016 and 2015. For additional information regarding the environmental indemnifications, see Note 18. We accrue for costs associated with guarantees when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts, and where no amount within a range of estimates is more likely, the minimum is accrued. In accordance with the Guarantees Topic of the FASB ASC we record these liabilities at fair value. We provide service and warranty policies on our products and extend performance and operating cost guarantees beyond our normal service and warranty policies on some of our products, particularly commercial aircraft engines. In addition, we incur discretionary costs to service our products in connection with specific product performance issues. Liabilities for performance and operating cost guarantees are based upon future product performance and durability, and are largely estimated based upon historical experience. Adjustments are made to accruals as claim data and historical experience warrant. The changes in the carrying amount of service and product warranties and product performance guarantees for the years ended December 31, 2016 and 2015 are as follows:
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Contingent Liabilities |
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Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | CONTINGENT LIABILITIES Except as otherwise noted, while we are unable to predict the final outcome, based on information currently available, we do not believe that resolution of any of the following matters will have a material adverse effect upon our competitive position, results of operations, cash flows or financial condition. Leases. We occupy space and use certain equipment under lease arrangements. Rental commitments of $2,094 million at December 31, 2016 under long-term non-cancelable operating leases are payable as follows: $462 million in 2017, $354 million in 2018, $286 million in 2019, $209 million in 2020, $145 million in 2021 and $638 million thereafter. Rent expense was $386 million in 2016, $386 million in 2015 and $434 million in 2014. Additional information pertaining to commercial aerospace rental commitments is included in Note 5 to the Consolidated Financial Statements. Environmental. Our operations are subject to environmental regulation by federal, state and local authorities in the United States and regulatory authorities with jurisdiction over our foreign operations. As described in Note 1 to the Consolidated Financial Statements, we have accrued for the costs of environmental remediation activities, including but not limited to investigatory, remediation, operating and maintenance costs and performance guaranties, and periodically reassess these amounts. We believe that the likelihood of incurring losses materially in excess of amounts accrued is remote. As of December 31, 2016 and 2015, we had $829 million and $837 million reserved for environmental remediation, respectively. Additional information pertaining to environmental matters is included in Note 1 to the Consolidated Financial Statements. Government. In the ordinary course of business, the Company and its subsidiaries and our properties are subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations and threatened legal actions and proceedings. For example, we are now, and believe that, in light of the current U.S. Government contracting environment, we will continue to be the subject of one or more U.S. Government investigations. Such U.S. Government investigations often take years to complete and could result in administrative, civil or criminal liabilities, including repayments, fines, treble and other damages, forfeitures, restitution or penalties, or could lead to suspension or debarment of U.S. Government contracting or of export privileges. For instance, if we or one of our business units were charged with wrongdoing as a result of any of these investigations or other government investigations (including violations of certain environmental or export laws) the U.S. Government could suspend us from bidding on or receiving awards of new U.S. Government contracts pending the completion of legal proceedings. If convicted or found liable, the U.S. Government could fine and debar us from new U.S. Government contracting for a period generally not to exceed three years. The U.S. Government also reserves the right to debar a contractor from receiving new government contracts for fraudulent, criminal or other seriously improper conduct. The U.S. Government could void any contracts found to be tainted by fraud. Our contracts with the U.S. Government are also subject to audits. Like many defense contractors, we have received audit reports, which recommend that certain contract prices should be reduced to comply with various government regulations, including because cost or pricing data we submitted in negotiation of the contract prices or cost accounting practices may not have conformed to government regulations, or that certain payments be delayed or withheld. Some of these audit reports involved substantial amounts. We have made voluntary refunds in those cases we believe appropriate, have settled some allegations and, in some cases, continue to negotiate and/or litigate. In addition, we accrue for liabilities associated with those matters that are probable and can be reasonably estimated. The most likely settlement amount to be incurred is accrued based upon a range of estimates. Where no amount within a range of estimates is more likely, then we accrued the minimum amount. Legal Proceedings. Cost Accounting Standards Claim As previously disclosed, in December 2013, a Divisional Administrative Contracting Officer of the United States Defense Contract Management Agency asserted a claim against Pratt & Whitney to recover overpayments of approximately $177 million plus interest (approximately $63 million through December 31, 2016). The claim is based on Pratt & Whitney's alleged noncompliance with cost accounting standards from January 1, 2005 to December 31, 2012, due to its method of determining the cost of collaborator parts used in the calculation of material overhead costs for government contracts. On March 18, 2014, Pratt & Whitney filed an appeal to the Armed Services Board of Contract Appeals. Pratt & Whitney’s appeal is still pending and we continue to believe the government’s claim is without merit. German Tax Litigation As previously disclosed, UTC has been involved in administrative review proceedings with the German Tax Office, which concern approximately €215 million (approximately $225 million) of tax benefits that we have claimed related to a 1998 reorganization of the corporate structure of Otis operations in Germany. Upon audit, these tax benefits were disallowed by the German Tax Office. UTC estimates interest associated with the aforementioned tax benefits is an additional approximately €118 million (approximately $123 million). On August 3, 2012, we filed suit in the local German Tax Court (Berlin-Brandenburg). In March 2016, the local German Tax Court dismissed our suit, and we have appealed this decision to the German Federal Tax Court (FTC). In 2015, UTC made tax and interest payments to German tax authorities of €275 million (approximately $300 million) in order to avoid additional interest accruals pending final resolution of this matter. In the meantime, we continue vigorously to litigate this matter. Asbestos Matters As previously disclosed, like many other industrial companies, we and our subsidiaries have been named as defendants in lawsuits alleging personal injury as a result of exposure to asbestos integrated into certain of our products or business premises. While we have never manufactured asbestos and no longer incorporate it in any currently-manufactured products, certain of our historical products, like those of many other manufacturers, have contained components incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or were covered in full or in part by insurance or other forms of indemnity. Additional cases were litigated and settled without any insurance reimbursement. The amounts involved in asbestos related claims were not material individually or in the aggregate in any year. Our estimated total liability to resolve all pending and unasserted potential future asbestos claims through 2059 is approximately $374 million and is principally recorded in Other long-term liabilities on our Consolidated Balance Sheet as of December 31, 2016. This amount is on a pre-tax basis, not discounted, and excludes the Company’s legal fees to defend the asbestos claims (which will continue to be expensed by the Company as they are incurred). In addition, the Company has an insurance recovery receivable for probable asbestos related recoveries of approximately $124 million, which is included primarily in Other assets on our Consolidated Balance Sheet as of December 31, 2016. The amounts recorded by UTC for asbestos-related liabilities and insurance recoveries are based on currently available information and assumptions that we believe are reasonable. Our actual liabilities or insurance recoveries could be higher or lower than those recorded if actual results vary significantly from the assumptions. Key variables in these assumptions include the number and type of new claims to be filed each year, the outcomes or resolution of such claims, the average cost of resolution of each new claim, the amount of insurance available, allocation methodologies, the contractual terms with each insurer with whom we have reached settlements, the resolution of coverage issues with other excess insurance carriers with whom we have not yet achieved settlements, and the solvency risk with respect to our insurance carriers. Other factors that may affect our future liability include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, legal rulings that may be made by state and federal courts, and the passage of state or federal legislation. At the end of each year, the Company will evaluate all of these factors and, with input from an outside actuarial expert, make any necessary adjustments to both our estimated asbestos liabilities and insurance recoveries. Other. As described in Note 17 to the Consolidated Financial Statements, we extend performance and operating cost guarantees beyond our normal warranty and service policies for extended periods on some of our products. We have accrued our estimate of the liability that may result under these guarantees and for service costs that are probable and can be reasonably estimated. We also have other commitments and contingent liabilities related to legal proceedings, self-insurance programs and matters arising out of the normal course of business. We accrue contingencies based upon a range of possible outcomes. If no amount within this range is a better estimate than any other, then we accrue the minimum amount. In the ordinary course of business, the Company and its subsidiaries are also routinely defendants in, parties to or otherwise subject to many pending and threatened legal actions, claims, disputes and proceedings. These matters are often based on alleged violations of contract, product liability, warranty, regulatory, environmental, health and safety, employment, intellectual property, tax and other laws. In some of these proceedings, claims for substantial monetary damages are asserted against the Company and its subsidiaries and could result in fines, penalties, compensatory or treble damages or non-monetary relief. We do not believe that these matters will have a material adverse effect upon our competitive position, results of operations, cash flows or financial condition. |
Segment Financial Data |
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Segment Financial Data | SEGMENT FINANCIAL DATA Our operations for the periods presented herein are classified into four principal segments. The segments are generally determined 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. As discussed in Note 3, on November 6, 2015, we completed the sale of Sikorsky to Lockheed Martin Corp. The tables below exclude amounts attributable to Sikorsky, which have been reclassified to Discontinued Operations in the accompanying Consolidated Statement of Operations and to Assets held for sale in the accompanying Consolidated Balance Sheet for all periods presented. Otis products include elevators, escalators, moving walkways and service sold to customers in the commercial and residential property industries around the world. UTC Climate, Controls & Security products and related services include HVAC and refrigeration systems, building controls and automation, fire and special hazard suppression systems and equipment, security monitoring and rapid response systems, provided to a diversified international customer base principally in the industrial, commercial and residential property and commercial transportation sectors. Pratt & Whitney products include commercial, military, business jet and general aviation aircraft engines, parts and services sold to a diversified customer base, including international and domestic commercial airlines and aircraft leasing companies, aircraft manufacturers, and U.S. and foreign governments. Pratt & Whitney also provides product support and a full range of overhaul, repair and fleet management services. UTC Aerospace Systems provides aerospace products and aftermarket services for commercial, military, business jet and general aviation customers worldwide. Products include electric power generation, power management and distribution systems, air data and flight sensing and management systems, engine control systems, electric systems, intelligence, surveillance and reconnaissance systems, engine components, environmental control systems, fire and ice detection and protection systems, propeller systems, aircraft aerostructures including engine nacelles, thrust reversers, and mounting pylons, interior and exterior aircraft lighting, aircraft seating and cargo systems, actuation systems, landing systems, including landing gears, wheels and brakes, and space products and subsystems. Aftermarket services include spare parts, overhaul and repair, engineering and technical support and fleet management solutions. We have reported our financial and operational results for the periods presented herein under the four principal segments noted above, consistent with how we have reviewed our business operations for decision-making purposes, resource allocation and performance assessment during 2016. Segment Information. Total sales by segment include intersegment sales, which are generally made at prices approximating those that the selling entity is able to obtain on external sales. Segment information for the years ended December 31 is as follows:
Geographic External Sales and Operating Profit. Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. U.S. external sales include export sales to commercial customers outside the U.S. and sales to the U.S. Government, commercial and affiliated customers, which are known to be for resale to customers outside the U.S. Long-lived assets are net fixed assets attributed to the specific geographic regions.
Sales from U.S. operations include export sales as follows:
Major Customers. Net Sales include sales under prime contracts and subcontracts to the U.S. Government, primarily related to Pratt & Whitney and UTC Aerospace Systems products, as follows:
Net sales by Sikorsky under prime contracts and subcontracts to the U.S. Government of approximately $3.1 billion and $3.8 billion have been reclassified to Discontinued Operations in our Consolidated Statement of Operations for the years ended December 31, 2015 and 2014, respectively. Net sales to Airbus, primarily related to Pratt & Whitney and UTC Aerospace Systems products, were approximately $7,688 million, $7,624 million and $7,757 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Selected Quarterly Financial Data - Unaudited |
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Quarterly Financial Information [Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
COMPARATIVE STOCK DATA (UNAUDITED)
Our common stock is listed on the New York Stock Exchange. The high and low prices are based on the Composite Tape of the New York Stock Exchange. There were approximately 19,126 registered shareholders at January 31, 2017. |
Performance Graph - Unaudited |
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Cumulative Total Shareholder Return [Text Block] | PERFORMANCE GRAPH (UNAUDITED) The following graph presents the cumulative total shareholder return for the five years ending December 31, 2016 for our common stock, as compared to the Standard & Poor's 500 Stock Index and to the Dow Jones 30 Industrial Average. Our common stock price is a component of both indices. These figures assume that all dividends paid over the five-year period were reinvested, and that the starting value of each index and the investment in common stock was $100.00 on December 31, 2011. COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN
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Summary of Accounting Principles (Policy) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation Policy [Text Block] | Consolidation. The Consolidated Financial Statements include the accounts of United Technologies Corporation (UTC) and its controlled subsidiaries. Intercompany transactions have been eliminated. |
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Cash And Cash Equivalents Policy [Text Block] | Cash and Cash Equivalents. Cash and cash equivalents includes cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less. |
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Cash And Cash Equivalents Restricted Cash And Cash Equivalents Policy | On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions or divestitures or other legal obligations. As of December 31, 2016 and 2015, the amount of such restricted cash was approximately $32 million and $45 million, respectively |
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Accounts Receivable Policy [Text Block] | Accounts Receivable. Current and long-term accounts receivable as of December 31, 2016 include retainage of $106 million and unbilled receivables of $2,786 million, which includes approximately $1,169 million of unbilled receivables under commercial aerospace long-term aftermarket contracts. Current and long-term accounts receivable as of December 31, 2015 include retainage of $141 million and unbilled receivables of $2,318 million, which includes approximately $1,091 million of unbilled receivables under commercial aerospace long-term aftermarket contracts. See Note 5 for discussion of commercial aerospace industry assets and commitments. Retainage represents amounts that, pursuant to the applicable contract, are not due until project completion and acceptance by the customer. Unbilled receivables represent revenues that are not currently billable to the customer under the terms of the contract. These items are expected to be billed and collected in the normal course of business. |
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Marketable Equity Securities Policy | Marketable Equity Securities. Equity securities that have a readily determinable fair value and that we do not intend to trade are classified as available-for-sale and carried at fair value. Unrealized holding gains and losses are recorded as a separate component of shareowners' equity, net of deferred income taxes. |
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Inventories and Contracts in Progress Policy Text Block | Inventories and Contracts in Progress. Inventories and contracts in progress are stated at the lower of cost or estimated realizable value and are primarily based on first-in, first-out (FIFO) or average cost methods; however, certain UTC Aerospace Systems and UTC Climate, Controls & Security entities use the last-in, first-out (LIFO) method. If inventories that were valued using the LIFO method had been valued under the FIFO method, they would have been higher by $114 million and $127 million at December 31, 2016 and 2015, respectively. Costs accumulated against specific contracts or orders are at actual cost. Valuation reserves for excess, obsolete, and slow-moving inventory are estimated by comparing the inventory levels of individual parts to both future sales forecasts or production requirements and historical usage rates in order to identify inventory where the resale value or replacement value is less than inventoriable cost. Other factors that management considers in determining the adequacy of these reserves include whether individual inventory parts meet current specifications and cannot be substituted for a part currently being sold or used as a service part, overall market conditions, and other inventory management initiatives. Manufacturing costs are allocated to current production and firm contracts. Within commercial aerospace, inventory costs attributable to new engine offerings are recognized based on the average cost per unit expected over the life of each contract using the units-of-delivery method of percentage of completion accounting. Under this method, costs of initial engine deliveries in excess of the projected contract per unit average cost are capitalized, and these capitalized amounts are subsequently expensed as additional engine deliveries occur for engines with costs below the projected contract per unit average cost over the life of the contract. |
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Equity Method Investments Policy [Policy Text Block] | Equity Method Investments. Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other assets on the Consolidated Balance Sheet. Under this method of accounting, our share of the net earnings or losses of the investee is included in Other income, net on the Consolidated Statement of Operations since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. |
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Goodwill And Intangible Assets Policy [Text Block] | Goodwill and Intangible Assets. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Goodwill and indefinite‑lived intangible assets are subject to annual impairment testing using the guidance and criteria described in the Intangibles - Goodwill and Other Topic of the FASB ASC. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. Intangible assets consist of service portfolios, patents, trademarks/tradenames, customer relationships and other intangible assets including a collaboration asset, as discussed further in Note 2. Acquired intangible assets are recognized at fair value in purchase accounting and then amortized to cost of sales and selling, general & administrative expenses over the applicable useful lives. Also included within other intangible assets are commercial aerospace payments made to secure certain contractual rights to provide product on new aircraft platforms. We classify amortization of such payments as a reduction of sales. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. Consideration paid on these contractual commitments is capitalized when it is no longer conditional. Useful lives of finite-lived intangible assets are estimated based upon the nature of the intangible asset and the industry in which the intangible asset is used. These intangible assets are amortized based on the pattern in which the economic benefits of the intangible assets are consumed. For both our commercial aerospace collaboration assets and exclusivity arrangements, the pattern of economic benefit generally results in lower amortization during the development period with increasing amortization as programs enter full rate production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined, a straight-line amortization method is used. The range of estimated useful lives is as follows:
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Other Long Lived Assets Policy [Text Block] | Other Long-Lived Assets. We evaluate the potential impairment of other long-lived assets when appropriate. If the carrying value of other long-lived assets held and used exceeds the sum of the undiscounted expected future cash flows, the carrying value is written down to fair value. |
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Long-Term Financing Receivables Policy [Text Block] | Long-Term Financing Receivables. Our long-term financing receivables primarily represent balances related to the aerospace businesses such as long-term trade accounts receivable, leases, and notes receivable. We also have other long-term receivables in our commercial businesses; however, both the individual and aggregate amounts of those other receivables are not significant. Long-term trade accounts receivable, including unbilled receivables related to long-term aftermarket contracts, are principally amounts arising from the sale of goods and services with a contractual maturity date or realization period of greater than one year and are recognized as "Other assets" in our Consolidated Balance Sheet. Notes and leases receivable represent notes and lease receivables other than receivables related to operating leases, and are recognized as "Customer financing assets" in our Consolidated Balance Sheet. The following table summarizes the balance by class of aerospace business-related long-term receivables as of December 31, 2016 and 2015:
We determine a receivable is impaired when, based on current information and events, it is probable that we will be unable to collect amounts due according to the contractual terms of the receivable agreement. Factors considered in assessing collectability and risk include, but are not limited to, examination of credit quality indicators and other evaluation measures, underlying value of any collateral or security interests, significant past due balances, historical losses, and existing economic conditions. We determine credit ratings for each customer in our portfolio based upon public information and information obtained directly from our customers. We conduct a review of customer credit ratings, published historical credit default rates for different rating categories, and multiple third party aircraft value publications as a basis to validate the reasonableness of the allowance for losses on these balances quarterly or when events and circumstances warrant. Customer credit ratings range from customers with an extremely strong capacity to meet financial obligations, to customers whose uncollateralized receivable is in default. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to the allowance for credit losses on long-term receivables. Based upon the customer credit ratings, approximately 13% of our long-term receivables were considered to bear high credit risk as of both December 31, 2016 and 2015. See Note 5 for further discussion of commercial aerospace industry assets and commitments. Reserves for credit losses on receivables relate to specifically identified receivables that are evaluated individually for impairment. For notes and leases receivable, we determine a specific reserve for exposure based on the difference between the carrying value of the receivable and the estimated fair value of the related collateral in connection with the evaluation of credit risk and collectability. For long-term trade accounts receivable, we evaluate credit risk and collectability individually to determine if an allowance is necessary. Our long-term receivables reflected in the table above, which include reserves of $17 million and $18 million as of December 31, 2016 and 2015, respectively, are individually evaluated for impairment. At both December 31, 2016 and 2015, we did not have any significant balances that are considered to be delinquent, on non-accrual status, past due 90 days or more, or considered to be impaired. |
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Income Tax Policy [Text Block] | Income Taxes. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest expense has also been recognized. We recognize accrued interest related to unrecognized tax benefits in interest expense. Penalties, if incurred, would be recognized as a component of income tax expense. |
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Revenue Recognition Policy | Revenue Recognition. As a result of our diverse product and service mix and customer base, we use multiple revenue recognition practices. We recognize sales for products and services in accordance with the provisions of Staff Accounting Bulletin (SAB) Topic 13, Revenue Recognition, as applicable. Products and services included within the scope of this SAB Topic include heating, ventilating, air-conditioning and refrigeration systems, certain alarm and fire detection and suppression systems, commercially funded research and development contracts and certain aerospace components. Sales within the scope of this SAB Topic are recognized when persuasive evidence of an arrangement exists, product delivery has occurred or services have been rendered, pricing is fixed or determinable and collectability is reasonably assured. Subsequent changes in service contracts are accounted for prospectively. Contract Accounting and Separately Priced Maintenance and Extended Warranty Aftermarket Contracts: For our construction-type and certain production-type contracts, sales are recognized on a percentage-of-completion basis following contract accounting methods. Contracts consist of enforceable agreements which form the basis of our unit of accounting for measuring sales, accumulating costs and recording loss provisions as necessary. Contract accounting requires estimates of award fees and other sources of variable consideration as well as future costs over the performance period of the contract. Cost estimates also include the estimated cost of satisfying our offset obligations required under certain contracts. Cost estimates are subject to change and result in adjustments to margins on contracts in progress. The extent of progress toward completion on our long-term commercial aerospace equipment is measured using units of delivery or other contractual milestones. The extent of progress towards completion on our development and other cost reimbursement contracts in our aerospace businesses and elevator and escalator sales, installation, modernization and other construction contracts in our commercial businesses is measured using cost-to-cost based input measures. Contract costs include estimated inventoriable manufacturing, engineering, product warranty and product performance guarantee costs, as appropriate. For separately priced product maintenance and extended warranty aftermarket contracts, sales are recognized over the contract period. In the commercial businesses, sales are primarily recognized on a straight-line basis. In the aerospace businesses, sales are primarily recognized in proportion to cost as sufficient historical evidence indicates that costs of performing services under the contract are incurred on an other than straight-line basis. Loss provisions on original equipment contracts are recognized to the extent that estimated contract costs exceed the estimated consideration from the products contemplated under the contractual arrangement. For new commitments, we generally record loss provisions at the earlier of contract announcement or contract signing except for certain requirements contracts under which losses are recorded upon receipt of the purchase order which obligates us to perform. For existing commitments, anticipated losses on contracts are recognized in the period in which losses become evident. Products contemplated under contractual arrangements include firm quantities of products sold under contract and, in the large commercial engine and wheels and brakes businesses, future highly probable sales of replacement parts required by regulation that are expected to be sold subsequently for incorporation into the original equipment. In the large commercial engine and wheels and brakes businesses, when the combined original equipment and aftermarket arrangements for each individual sales campaign are profitable, we record original equipment product losses, as applicable, at the time of delivery. We review our cost estimates on significant contracts on a quarterly basis, and for others, no less frequently than annually or when circumstances change and warrant a modification to a previous estimate. We record changes in contract estimates using the cumulative catch-up method in accordance with the Revenue Recognition Topic of the FASB ASC. Operating profits included significant net unfavorable changes in aerospace contract estimates of approximately $157 million in 2016, primarily the result of unexpected increases in estimated costs related to Pratt & Whitney long term aftermarket contracts. Collaborations: Sales generated from engine programs, spare parts sales, and aftermarket business under collaboration arrangements are recorded consistent with our revenue recognition policies in our consolidated financial statements. Amounts attributable to our collaborators for their share of sales are recorded as cost of sales in our financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement of a collaborator's share of program costs is recorded as a reduction of the related expense item at that time. |
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Revenue Recognition, Cash Payments to Customers [Policy Text Block] | Cash Payments to Customers: UTC Climate, Controls & Security customarily offers its customers incentives to purchase products to ensure an adequate supply of its products in the distribution channels. The principal incentive program provides reimbursements to distributors for offering promotional pricing for our products. We account for incentive payments made as a reduction in sales. In our aerospace businesses, we may make participation payments to certain customers to secure certain contractual rights. To the extent these rights are incremental and are supported by the incremental cash flows obtained, they are capitalized as intangible assets. Otherwise, such payments are expensed. We classify the subsequent amortization of the capitalized acquired intangible assets from our customers as a reduction in sales. Contractually stated prices in arrangements with our customers that include the acquisition of intangible rights within the scope of the Intangibles - Goodwill and Other Topic of the FASB ASC and deliverables within the scope of the Revenue Recognition Topic of the FASB ASC are not presumed to be representative of fair value for determining the amounts to allocate to each element of an arrangement. |
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Research and Development Policy [Text Block] | Research and Development. Research and development costs not specifically covered by contracts and those related to the company sponsored share of research and development activity in connection with cost-sharing arrangements are charged to expense as incurred. Government research and development support, not associated with specific contracts, is recorded as a reduction to research and development expense in the period earned. See Note 8 for a discussion of amendments of certain government research and development support arrangements concluded in December 2015 between Pratt & Whitney Canada and the Canadian government. Research and development costs incurred under contracts with customers are included as a contract cost and reported as a component of cost of products sold when revenue from such contracts is recognized. Research and development costs in excess of contractual consideration is expensed as incurred. |
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Foreign Currency Transactions And Translations Policy [Text Block] | Foreign Exchange. We conduct business in many different currencies and, accordingly, are subject to the inherent risks associated with foreign exchange rate movements. The financial position and results of operations of substantially all of our foreign subsidiaries are measured using the local currency as the functional currency. Foreign currency denominated assets and liabilities are translated into U.S. Dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries are deferred as a separate component of shareowners' equity. |
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Derivatives and Hedging Activity Policy [Text Block] | Derivatives and Hedging Activity. We have used derivative instruments, including swaps, forward contracts and options, to help manage certain foreign currency, interest rate and commodity price exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. By their nature, all financial instruments involve market and credit risks. We enter into derivative and other financial instruments with major investment grade financial institutions and have policies to monitor the credit risk of those counterparties. We limit counterparty exposure and concentration of risk by diversifying counterparties. While there can be no assurance, we do not anticipate any material non-performance by any of these counterparties. We enter into transactions that are subject to enforceable master netting arrangements or other similar agreements with various counterparties. However, we have not elected to offset multiple contracts with a single counterparty and, as a result, the fair value of the derivative instruments in a loss position is not offset against the fair value of derivative instruments in a gain position. Derivatives used for hedging purposes may be designated and effective as a hedge of the identified risk exposure at the inception of the contract. All derivative instruments are recorded on the balance sheet at fair value. Derivatives used to hedge foreign-currency-denominated balance sheet items are reported directly in earnings along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate. Gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income and reclassified to earnings as a component of product sales or expenses, as applicable, when the hedged transaction occurs. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period it occurs. As discussed in Note 14, at December 31, 2016 we have approximately €2.95 billion of Euro-denominated long-term debt and €500 million of outstanding Euro-denominated commercial paper borrowings, which qualify as a net investment hedge against our investments in European businesses. To the extent the hedge accounting criteria are not met, the foreign currency forward contracts are utilized as economic hedges and changes in the fair value of these contracts are recorded currently in earnings in the period in which they occur. Additional information pertaining to foreign currency forward contracts and net investment hedging is included in Note 14. |
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Environmental Costs Policy | Environmental. Environmental investigatory, remediation, operating and maintenance costs are accrued when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including existing technology, current laws and regulations and prior remediation experience. Where no amount within a range of estimates is more likely, the minimum is accrued. For sites with multiple responsible parties, we consider our likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their obligations in establishing a provision for those costs. Liabilities with fixed or reliably determinable future cash payments are discounted. Accrued environmental liabilities are not reduced by potential insurance reimbursements. See Note 18 for additional details on the environmental remediation activities. |
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Pension and Postretirement Obligations Policy | Pension and Postretirement Obligations. Guidance under the Compensation - Retirement Benefits Topic of the FASB ASC requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Under this guidance, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit cost. |
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Product Performance Obligations [Policy Text Block] | Product Performance Obligations. We extend performance and operating cost guarantees beyond our normal service and warranty policies for extended periods on some of our products, particularly commercial aircraft engines. Liability under such guarantees is based upon future product performance and durability. We accrue for such costs that are probable and can be reasonably estimated. In addition, we incur discretionary costs to service our products in connection with product performance issues. The costs associated with these product performance and operating cost guarantees require estimates over the full terms of the agreements, and require management to consider factors such as the extent of future maintenance requirements and the future cost of material and labor to perform the services. These cost estimates are largely based upon historical experience. See Note 17 for further discussion. |
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Collaborative Arrangements Policy | Collaborative Arrangements. In view of the risks and costs associated with developing new engines, Pratt & Whitney has entered into certain collaboration arrangements in which sales, costs and risks are shared. Sales generated from engine programs, spare parts, and aftermarket business under collaboration arrangements are recorded as earned in our financial statements. Amounts attributable to our collaborators for their share of sales are recorded as an expense in our financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement of the collaborators' share of program costs is recorded as a reduction of the related expense item at that time. As of December 31, 2016, the collaborators' interests in all commercial engine programs ranged from 14% to 50%, inclusive of a portion of Pratt & Whitney's interests held by other participants. Pratt & Whitney is the principal participant in all existing collaborative arrangements. There are no individually significant collaborative arrangements and none of the collaborators exceed a 31% share in an individual program. The following table illustrates the income statement classification and amounts attributable to transactions arising from the collaborative arrangements between participants for each period presented:
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Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Tables) |
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Schedule of Goodwill [Table Text Block] |
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Intangible Assets Disclosure [Table Text Block] |
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] |
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Discontinued Operations (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement [Table Text Block] | The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations:
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Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
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Commercial Aerospace Industry Assets and Commitments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Commitments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Aerospace Industry Assets and Commitments [Table Text Block] | The following is the expected maturity of commercial aerospace industry assets and commitments as of December 31, 2016:
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Inventories and Contracts in Progress (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Table [Table Text Block] |
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Fixed Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Assets [Text Block] |
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Accrued Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities Table [Text Block] |
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Borrowings and Lines of Credit (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Table Text Block] |
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Schedule of Weighted-average interest rates [Table Text Block] | The weighted-average interest rates applicable to short-term borrowings and total debt were as follows:
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Long-term Debt [Table Text Block] |
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Schedule of Principal Payments on Long-term Debt [Table Text Block] |
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Equity (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | A summary of the changes in each component of accumulated other comprehensive (loss) income, net of tax for the years ended December 31, 2016 and 2015 is provided below:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Consolidated Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income before Income Tax Domestic and Foreign [Table Text Block] | The sources of income from continuing operations before income taxes are:
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Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax expense (benefit) for the years ended December 31, 2016, 2015 and 2014 consisted of the following components:
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Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows:
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Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2016 and 2015 are as follows:
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Summary Of Tax Credit Carryforwards [Table Text Block] | At December 31, 2016, tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows:
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Summary Of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014 is as follows:
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Employee Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Multiemployer Plans Table [Text Block] |
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Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | We measure the cost of all share-based payments, including stock options, at fair value on the grant date and recognize this cost in the Consolidated Statement of Operations as follows:
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Schedule of Stock Options Roll Forward [Table Text Block] | A summary of the transactions under all long-term incentive plans for the year ended December 31, 2016 follows:
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Disclosure Of Share Based Compensation Arrangements By Share Based Payment Award Text Block | The following table summarizes information about equity awards outstanding that are vested and expected to vest and equity awards outstanding that are exercisable at December 31, 2016:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table indicates the assumptions used in estimating fair value for the years ended December 31, 2016, 2015 and 2014. Lattice-based option models incorporate ranges of assumptions for inputs, those ranges are as follows:
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Pension Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Text Block] |
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Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | Information for pension plans with accumulated benefit obligations in excess of plan assets:
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Schedule of Net Benefit Costs [Table Text Block] | The components of the net periodic pension cost are as follows:
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Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2016 are as follows:
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Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in 2017 is as follows:
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Schedule of Assumptions Used [Table Text Block] | Major assumptions used in determining the benefit obligation and net cost for pension plans are presented in the following table as weighted-averages:
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Schedule of Allocation of Plan Assets [Table Text Block] | The fair values of pension plan assets at December 31, 2016 and 2015 by asset category are as follows:
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Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed due to the following:
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Text Block] |
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Schedule of Net Benefit Costs [Table Text Block] | The components of net periodic benefit cost are as follows:
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Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2016 are as follows:
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Schedule of Assumptions Used [Table Text Block] | Major assumptions used in determining the benefit obligation and net cost for postretirement plans are presented in the following table as weighted-averages:
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Schedule of Health Care Cost Trend Rates [Table Text Block] | Assumed health care cost trend rates are as follows:
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Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | A one-percentage-point change in assumed health care cost trend rates would have the following effects:
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Restructuring and Other Costs (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | We recorded charges in the segments as follows:
Restructuring charges incurred in 2016 primarily relate to actions initiated during 2016 and 2015, and were recorded as follows:
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Current Year Actions [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the accrual balances and utilization by cost type for the 2016 restructuring actions:
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Schedule of Restructuring and Related Costs [Table Text Block] | The following table summarizes expected, incurred and remaining costs for the 2016 restructuring actions by segment:
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Prior Year Actions [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the accrual balances and utilization by cost type for the 2015 restructuring actions:
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Schedule of Restructuring and Related Costs [Table Text Block] | The following table summarizes expected, incurred and remaining costs for the 2015 programs by segment:
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Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the fair value of derivative instruments as of December 31, 2016 and 2015 which consist solely of foreign exchange contracts:
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Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | The impact from foreign exchange derivative instruments that qualified as cash flow hedges was as follows:
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Other Operating Income (Expense) [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | The effect on the Consolidated Statement of Operations of foreign exchange contracts not designated as hedging instruments was as follows:
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and non-recurring basis in our Consolidated Balance Sheet as of December 31, 2016 and 2015:
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Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value at December 31, 2016 and 2015:
The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Consolidated Balance Sheet as of December 31, 2016:
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Variable Interest Entities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities [Table Text Block] | The carrying amounts and classification of assets and liabilities for variable interest entities in our Consolidated Balance Sheet as of December 31, 2016 and 2015 are as follows:
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Guarantees (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Guarantor Obligations [Table Text Block] | As of December 31, 2016 and 2015, the following financial guarantees were outstanding:
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Product Warranty Disclosure [Table Text Block] | The changes in the carrying amount of service and product warranties and product performance guarantees for the years ended December 31, 2016 and 2015 are as follows:
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Segment Financial Data (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Segment Reporting Information By Segment [Table Text Block] |
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Schedule of Revenues From External Customers And Long Lived Assets By Geographic Areas [Table Text Block] |
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Schedule Of Revenue By Major Customers By Reporting Segments [Table Text Block] |
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Revenue from External Customers by Geographic Areas [Table Text Block] |
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Selected Quarterly Financial Data - Unaudited (Tables) |
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Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Quarterly Financial Information [Table Text Block] | COMPARATIVE STOCK DATA (UNAUDITED)
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
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Performance Graph - Unaudited (Tables) |
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Performance Graph [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Total Shareholder Return [Table Text Block] | COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN
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Schedule II - Valuation and Qualifying Accounts [Schedule] Valuation and Qualifying Accounts [Details] - USD ($) $ in Millions |
12 Months Ended | |||
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Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
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Allowance for Doubtful Accounts and Other Customer Financing Activity [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance December 31 | $ 467 | $ 553 | $ 494 | $ 538 |
Provision charged to income | 64 | 137 | 93 | |
Doubtful accounts written off (net) | 105 | 59 | 91 | |
Other adjustments | (45) | (19) | (46) | |
Future Income Tax Benefits - Valuation Allowance [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance December 31 | 545 | 591 | 612 | $ 942 |
Other adjustments | (17) | (29) | (366) | |
Additions charged to income tax expense | 32 | 42 | 91 | |
Reductions credited to income tax expense | $ 61 | 41 | $ 55 | |
Additions charged to goodwill, due to acquisitions | $ 7 |
Summary of Accounting Principles (Details) € in Millions, $ in Millions |
Dec. 31, 2016
USD ($)
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Dec. 31, 2016
EUR (€)
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Dec. 31, 2015
USD ($)
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Dec. 31, 2014
USD ($)
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Accounting Policies [Abstract] | ||||
Restricted Cash And Cash Equivalents | $ 32 | $ 45 | $ 255 | |
Unbilled Contracts Receivable | 2,786 | 2,318 | ||
Contract Receivable Retainage | 106 | 141 | ||
Excess Of Replacement Or Current Costs Over Stated LIFO Value | 114 | 127 | ||
Hedging Liabilities, Noncurrent | € | € 2,950 | |||
Hedging Liabilities, Current | € | € 500 | |||
Commercial Aerospace [Member] | ||||
Accounting Policies [Abstract] | ||||
Unbilled Contracts Receivable | $ 1,169 | $ 1,091 |
Summary of Accounting Principles Summary of Accounting Principles (Marketable Securities) (Details) (Details) $ in Millions |
12 Months Ended |
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Dec. 31, 2016
USD ($)
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unrealized gains on available for sale securities | $ 353 |
ASU 2016-13 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 328): Measurement of Credit Losses on Financial Instruments. This ASU requires that certain financial assets, including those measured at amortized cost basis, be presented at the net amount expected to be collected, utilizing an impairment model known as the current expected credit loss model. In addition, available-for-sale debt securities will no longer use the concept of "other than temporary" when considering credit losses. Under this ASU, entities must use an allowance approach for credit losses on available-for-sale debt securities, and the allowance must be limited to the amount at which a security's fair value is below the amortized cost of the asset. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this ASU. |
ASU 2016-01 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Upon adoption, investments that do not result in consolidation and are not accounted for under the equity method generally must be carried at fair value, with changes in fair value recognized in net income. As discussed in Note 10, we have approximately $353 million of unrealized gains on these securities recorded in Accumulated other comprehensive loss in our Consolidated Balance Sheet as of December 31, 2016. To the extent currently unrealized gains or losses on these investments are not realized through sale or other actions prior to the date of adoption, these amounts would be recorded directly to retained earnings upon adoption. The provisions of this ASU are effective for years beginning after December 15, 2017. |
Summary of Accounting Principles (Long-Term Receivables) (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
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Financing Receivable, Recorded Investment [Line Items] | ||
Total Long Term Receivable | $ 1,356 | $ 1,354 |
Percentage Long Term Receivables High Credit Risk | 13.00% | |
Financing Receivable, Reserve for Credit Losses and Exposure, Individually Evaluated For Impairment | $ 17 | 18 |
Long-term Trade Accounts Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Long Term Receivable | 926 | 903 |
Notes and Leases Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Long Term Receivable | $ 430 | $ 451 |
Summary of Accounting Principles (Revenue Recognition) (Details) - USD ($) $ in Millions |
12 Months Ended | |
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Dec. 31, 2016 |
Dec. 31, 2015 |
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase (Decrease) in Operating Profit Due to Contract Reestimates | $ (157) | |
Inventory Costs in Excess of Average Cost Per Unit | $ 233 | $ 13 |
ASU 2015-14 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date - delays the effective date of ASU 2014-09 by one year. | |
ASU 2016-08 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) - clarifies how an entity should identify the unit of accounting (i.e. the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. | |
ASU 2016-10 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing - clarifies the guidance surrounding licensing arrangements and the identification of performance obligations. | |
ASU 2016-12 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | ASU 2016-12, Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients - addresses implementation issues raised by stakeholders concerning collectability, noncash consideration, presentation of sales tax, and transition. | |
ASU 2016-20 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | ASU 2016-20, Revenue from Contracts with Customers (Topic 606), Technical Corrections and Improvements - addresses loan guarantee fees, impairment testing of contract costs, provisions for losses on certain contracts, and various disclosures. | |
ASU 2014-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. ASU 2014-09 and its related amendments (collectively, the New Revenue Standard) are effective for reporting periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods; (i) a full retrospective adoption reflecting the application of the standard in each prior reporting period, or (ii) a modified retrospective approach with the cumulative effect of adopting recognized through retained earnings at the date of adoption. The New Revenue Standard is expected to change the revenue recognition practices for a number of revenue streams across our businesses, although the most significant impacts will be concentrated within our aerospace units. Several businesses, which currently account for revenue on a “point-in-time basis,” will be required to use an “over time” model as they meet one or more of the mandatory criteria established in the New Revenue Standard. Revenue will be recognized based on percentage-of-completion for repair contracts within both Otis and UTC Climate, Controls & Security; certain U.S. Government aerospace contracts; and aerospace aftermarket service work performed on a time and materials basis. For these businesses, unrecognized sales and operating profits related to the satisfied portion of the performance obligations of contracts in process as of the date of adoption will be recorded through retained earnings. The ongoing effect of recording revenue on a percentage-of-completion basis within these businesses is not expected to be material. In addition to the forgoing, our aerospace businesses will also incur changes related to the timing of manufacturing cost recognition and certain engineering and development costs. In most circumstances, our commercial aerospace businesses will identify the performance obligation, or the unit of accounting, as the individual original equipment (OEM) unit; revenues and costs to manufacture each unit will be recognized upon OEM unit delivery. Under current practice the unit of accounting is the contract and early-contract OEM unit costs in excess of the average expected over the contact are capitalized and amortized over lower-cost units later in the contract. With the adoption of the New Revenue Standard, any deferred unit costs in excess of the contract average will be eliminated through retained earnings and will not be amortized into future earnings. As of December 31, 2016, capitalized deferred unit costs in excess of the contract average are $233 million, which is expected to increase in 2017 prior to adoption of the New Revenue Standard. In regards to costs incurred for the engineering and development of aerospace products under contract with customers, we generally expense as incurred unless there is a contractually guaranteed right of recovery. Any customer funding received for such efforts is recognized when earned, with the corresponding costs recognized as cost of sales. Under the New Revenue Standard, customer funding of OEM product engineering and development must be deferred and recognized as revenue as the OEM products are delivered to the customer. There is currently less clarity regarding the accounting for the associated product engineering and development costs. As such, we are continuing to evaluate whether such costs should continue to be expensed or capitalized as contract fulfillment costs and subsequently amortized. For contracts that are open as of the adoption date, previously recognized customer funding will be established as a contract liability. We continue to evaluate the implications of the standard change. We intend to adopt the New Revenue Standard effective January 1, 2018 using the modified retrospective approach. |
Summary of Accounting Principles Accounting Pronouncements (Details) $ in Millions |
12 Months Ended |
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Dec. 31, 2016
USD ($)
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ASU 2016-16 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This ASU requires the income tax consequences of an intra-entity transfer of an asset, other than inventory, to be recognized when the transfer occurs. Two common examples of assets included in the scope of this update are intellectual property and property, plant, and equipment. The provisions of this ASU are effective for years beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of this ASU. |
ASU 2016-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU is intended to reduce diversity in practice in presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues, including requirements that 1) cash payments for debt prepayment or debt extinguishment costs be classified as cash outflows for financing activities; and 2) for cash receipts and payments that have aspects of more than one class of cash flows, each separately identifiable source or use within the cash receipts and payments should be classified on the basis of their underlying nature in financing, investing, or operating activities. Cash flow amounts for all periods presented have been updated to comply with the retrospective transition method, required by these ASUs upon adoption. As discussed in Note 9, for the year ended December 31, 2016, approximately $164 million in debt extinguishment costs have been classified as financing cash outflows in accordance with these updates. Additionally, cash flows provided by operating activities of continuing operations, attributable to changes in inventories and contracts in progress, and cash flows used in investing activities of continuing operations attributable to increases in customer financing assets for the year ended December 31, 2015 increased by approximately $78 million as a result of the required retrospective transition method of these updates. Other updates made as a result of adoption of these ASUs had an immaterial impact to the Consolidated Statement of Cash Flows. |
ASU 2016-18 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This ASU requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The provisions of ASU 2016-15 and ASU 2016-18 are effective for years beginning after December 15, 2017, with early adoption permitted. We have elected to early adopt the requirements of these ASUs effective December 31, 2016. |
ASU 2016-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which amends the accounting for employee share-based payment transactions to require recognition of the tax effects resulting from the settlement of stock-based awards as income tax expense or benefit in the income statement in the reporting period in which they occur. The ASU also requires that all tax-related cash flows resulting from share-based payments, including the excess tax benefits related to the settlement of stock-based awards, be classified as cash flows from operating activities, and that cash paid by directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows. In addition, the ASU also allows companies to make an accounting policy election to either estimate the number of awards that are expected to vest, consistent with current U.S. GAAP, or account for forfeitures when they occur. The new standard is effective for annual reporting periods beginning after December 15, 2016 with early adoption permitted. We elected to early adopt the requirements of the amended standard in the third quarter of 2016 and are therefore required to report the impacts as though adopted on January 1, 2016. Accordingly, we recognized additional income tax benefits of approximately $22 million for the year ended December 31, 2016. In addition, we recognized the additional income tax benefits and cash paid by directly withholding shares for tax withholding purposes of approximately $19 million for the year ended December 31, 2016 as an increase in net cash flows provided by operating activities of continuing operations, and an increase in net cash flows used in financing activities of continuing operations. There is no change to our accounting policy with respect to estimation of forfeitures. |
ASU 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In February 2016, the FASB issued ASU 2016- 02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statement of Operations. In addition, this standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as financing. If the lessor doesn’t convey risks and rewards or control, the lease is treated as operating. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases and lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are still evaluating the impact of our pending adoption of the new standard on our consolidated financial statements, we expect that upon adoption we will recognize ROU assets and lease liabilities and that the amounts could be material. We do not expect the ASU to have a material impact on our cash flows or results of operations. |
ASU 2016-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ (22) |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (19) |
ASU 2016-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (78) |
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Business Acquisition [Line Items] | |||
Acquisition Cost Of Acquired Entities and Interest in Affiliates | $ 712 | $ 556 | $ 530 |
Noncash Or Part Noncash Acquisition Debt Assumed | $ 2 | $ 18 | $ 128 |
Sikorsky [Member] | |||
Business Acquisition [Line Items] | |||
Disposal Date | Nov. 06, 2015 | ||
Proceeds from Divestiture of Businesses | $ 9,100 |
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Trademarks and other | $ 2,025 | $ 2,069 |
Total | 20,920 | 20,173 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 18,895 | 18,104 |
Accumulated Amortization | 5,236 | 4,570 |
Service Portfolios [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 1,995 | 1,977 |
Accumulated Amortization | 1,344 | 1,307 |
Patents and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 378 | 361 |
Accumulated Amortization | 201 | 189 |
Collaboration [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,724 | 3,336 |
Accumulated Amortization | 211 | 86 |
Customer Relationships and Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 12,798 | 12,430 |
Accumulated Amortization | $ 3,480 | $ 2,988 |
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Amortization Expense, Year 1 | $ 809 | ||
Amortization Expense, Year 2 | 865 | ||
Amortization Expense, Year 3 | 878 | ||
Amortization Expense, Year 4 | 859 | ||
Amortization Expense, Year 5 | 829 | ||
Amortization of Intangible Assets | $ 778 | $ 722 | $ 713 |
Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (Loss) from Divestiture of Business | $ 13 | $ 6,042 | $ 0 |
Income tax expense | 24 | 2,684 | 20 |
Net cash flows (used in) provided by discontinued operations | (2,526) | $ 8,619 | 217 |
Sikorsky [Member] | |||
Income Statement by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Date | Nov. 06, 2015 | ||
Proceeds from Divestiture of Businesses | $ 9,100 | ||
Gain (Loss) from Divestiture of Business | 13 | ||
Income tax expense | 24 | ||
Net cash flows (used in) provided by discontinued operations | $ 2,500 | ||
Net sales to Sikorsky | 138 | 235 | |
Purchases from Sikorsky, cost of products and services sold | $ 25 | $ 17 |
Discontinued Operations (Income Statement Information) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Discontinued Operations and Disposal Groups [Abstract] | |||
Net Sales | $ 0 | $ 4,949 | $ 7,452 |
Costs of Sales | 0 | 4,152 | 6,801 |
Research and development | 0 | 150 | 160 |
Selling, general and administrative | (1) | 315 | 328 |
Pension curtailment | 0 | 110 | 0 |
Other income, net | 0 | 30 | 12 |
Income from operations | 1 | 252 | 175 |
Gain on disposal | 13 | 6,042 | 0 |
Income Tax Expense | 24 | 2,684 | 20 |
Net (loss) income from discontinued operations | $ (10) | $ 3,610 | $ 155 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Earnings Per Share [Abstract] | |||||||||||
Antidilutive securities excluded from computation of earnings per share amount | 14,500,000 | 9,700,000 | 3,500,000 | ||||||||
Net Income (Loss) Attributable to Common Shareowners | |||||||||||
Net income from continuing operations | $ 5,065 | $ 3,996 | $ 6,066 | ||||||||
Net (loss) income from discontinued operations | (10) | 3,612 | 154 | ||||||||
Net income attributable to common shareowners | $ 1,013 | $ 1,480 | $ 1,379 | $ 1,183 | $ 3,278 | $ 1,362 | $ 1,542 | $ 1,426 | $ 5,055 | $ 7,608 | $ 6,220 |
Basic weighted average number of shares outstanding | 818,200,000.0 | 872,700,000.0 | 898,300,000.0 | ||||||||
Stock Awards | 7,900,000 | 10,500,000 | 13,300,000 | ||||||||
Diluted weighted average number of shares outstanding | 826,100,000 | 883,200,000 | 911,600,000 | ||||||||
Earnings Per Share of Common Stock - Basic | |||||||||||
Net income from continuing operations | $ 6.19 | $ 4.58 | $ 6.75 | ||||||||
Net (loss) income from discontinued operations | (0.01) | 4.14 | 0.17 | ||||||||
Net income attributable to common shareowners | $ 1.26 | $ 1.80 | $ 1.67 | $ 1.43 | $ 3.86 | $ 1.55 | $ 1.76 | $ 1.60 | 6.18 | 8.72 | 6.92 |
Earnings Per Share of Common Stock - Diluted | |||||||||||
Net income from continuing operations | 6.13 | 4.53 | 6.65 | ||||||||
Net (loss) income from discontinued operations | (0.01) | 4.09 | 0.17 | ||||||||
Net income attributable to common shareowners | $ 1.25 | $ 1.78 | $ 1.65 | $ 1.42 | $ 3.86 | $ 1.54 | $ 1.73 | $ 1.58 | $ 6.12 | $ 8.61 | $ 6.82 |
Inventories and Contracts in Progress (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory [Line Items] | ||
Inventory Costs in Excess of Average Cost Per Unit | $ 233 | $ 13 |
Raw materials | 2,040 | 2,037 |
Work-in-process | 2,787 | 2,422 |
Finished goods | 3,305 | 3,183 |
Contracts in progress | 9,395 | 8,668 |
Inventories before payments and billings | 17,527 | 16,310 |
Progress payments, secured by lien, on U.S. Government contracts | 130 | 239 |
Billings on contracts in progress | 8,693 | 7,936 |
Inventories and contracts in progress, net | 8,704 | 8,135 |
Inventory Valuation Reserves | $ 877 | $ 760 |
Percentage Of Inventory For Long Term Contracts Or Programs | 68.00% | 67.00% |
Percentage Of Inventory For Long Term Contracts Scheduled For Delivery Within Succeeding 12 Months | 41.00% | 41.00% |
UTC Aerospace Systems [Member] | ||
Inventory [Line Items] | ||
Capitalized Contract Development Costs | $ 140 | $ 152 |
Accrued Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accrued Liabilities [Abstract] | ||
Advances on sales contracts and service billings | $ 4,217 | $ 3,952 |
Accrued salaries, wages and employee benefits | 1,608 | 1,543 |
Service and warranty accruals | 555 | 546 |
Litigation and contract matters | 488 | 482 |
Interest payable | 395 | 391 |
Income taxes payable | 382 | 2,498 |
Accrued property, sales and use taxes | 289 | 292 |
Canadian government settlement - current portion | 245 | 241 |
Insurance accruals | 217 | 204 |
Accrued restructuring costs | 210 | 334 |
Accrued workers compensation | 208 | 212 |
Other | 3,405 | 3,943 |
Accrued liabilities | $ 12,219 | $ 14,638 |
Accrued Liabilities Narrative (Details) CAD in Millions, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2016
CAD
|
|
Accrued Liabilities [Abstract] | |||
Candadian Government Amendment Arrangements, Annual Payment Amount | $ 245 | CAD 327 | |
Canadian Government Amendment Arrangements, Expense | $ 867 | ||
Canadian Government Amendment Arrangements, Remaining Liability | $ 626 | $ 477 |
Borrowings and Lines of Credit (Short-Term Borrowings) (Details) € in Millions, $ in Millions |
Dec. 31, 2016
USD ($)
|
Dec. 31, 2016
EUR (€)
|
Dec. 31, 2015
USD ($)
|
---|---|---|---|
Debt Disclosure [Abstract] | |||
Hedging Liabilities, Current | € | € 500 | ||
Commercial Paper | $ 522 | $ 727 | |
Other borrowings | 79 | 199 | |
Total short-term borrowings | $ 601 | $ 926 |
Borrowings and Lines of Credit (Long-Term Debt) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||||||
Debt Instrument [Line Items] | |||||||||||
Project financing obligations | $ 155 | $ 191 | |||||||||
Total principal long-term debt | 23,299 | 19,439 | |||||||||
Other debt (including capitalized leases) | 189 | 306 | |||||||||
Other (fair market value adjustments, discounts and debt issuance costs) | 1 | 60 | |||||||||
Total long-term debt | 23,300 | 19,499 | |||||||||
Less: current portion | 1,603 | 179 | |||||||||
Long-term debt, net of current portion | 21,697 | 19,320 | |||||||||
Long Term Debt Maturities Repayments Of Principal In Next Twelve Months | 1,603 | ||||||||||
Long Term Debt Maturities Repayments Of Principal In Year Two | 2,012 | ||||||||||
Long Term Debt Maturities Repayments Of Principal In Year Three | 1,299 | ||||||||||
Long Term Debt Maturities Repayments Of Principal In Year Four | 1,460 | ||||||||||
Long Term Debt Maturities Repayments Of Principal In Year Five | 2,034 | ||||||||||
Long Term Debt Maturities Repayments Of Principal After Year Five | 14,891 | ||||||||||
Notes 5.375% Due 2017 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 0 | 1,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | ||||||||||
Debt Instrument, Maturity Year Date | 2017 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 1.800% Due 2017 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 1,500 | 1,500 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.80% | ||||||||||
Debt Instrument, Maturity Year Date | 2017 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
EURIBOR plus 0.800% floating rate notes due 2018 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [2] | $ 783 | 0 | ||||||||
Debt Instrument, Maturity Year Date | 2018 | ||||||||||
Debt Instrument, Call Feature | The three-month EURIBOR rate as of December 30, 2016 was approximately 0.319%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | ||||||||||
Junior subordinated notes 1.778% due 2018 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | $ 1,100 | 1,100 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.778% | ||||||||||
Debt Instrument, Maturity Year Date | 2018 | ||||||||||
Notes 6.800% Due 2018 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | $ 99 | 99 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | ||||||||||
Debt Instrument, Maturity Year Date | 2018 | ||||||||||
LIBOR plus 0.350% floating rate notes due 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [3] | $ 350 | 0 | ||||||||
Debt Instrument, Maturity Year Date | 2019 | ||||||||||
Debt Instrument, Call Feature | The three-month LIBOR rate as of December 30, 2016 was approximately 0.998%. | ||||||||||
Notes 1.500% Due 2019 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 650 | 0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||||||||||
Debt Instrument, Maturity Year Date | 2019 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 6.125% Due 2019 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 0 | 1,250 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | ||||||||||
Debt Instrument, Maturity Year Date | 2019 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 8.875% Due 2019 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | $ 271 | 271 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.875% | ||||||||||
Debt Instrument, Maturity Year Date | 2019 | ||||||||||
Notes 4.500% Due 2020 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 1,250 | 1,250 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||||||||
Debt Instrument, Maturity Year Date | 2020 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 4.875% Due 2020 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | $ 171 | 171 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | ||||||||||
Debt Instrument, Maturity Year Date | 2020 | ||||||||||
Notes 1.950% Due 2021 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 750 | 0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | ||||||||||
Debt Instrument, Maturity Year Date | 2021 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 1.125% Due 2021 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [4] | $ 992 | 0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.125% | ||||||||||
Debt Instrument, Maturity Year Date | 2021 | ||||||||||
Debt Instrument, Call Feature | We may redeem these notes, in whole or in part, at our option at any time. If redeemed earlier than three months prior to the stated maturity date, the redemption price in Euro shall equal the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on an annual basis at a rate based upon a comparable German federal government bond whose maturity is closest to the maturity of the notes plus 15-30 basis points. In addition, the notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | ||||||||||
Notes 8.750% Due 2021 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | $ 250 | 250 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | ||||||||||
Debt Instrument, Maturity Year Date | 2021 | ||||||||||
Notes 3.100% Due 2022 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 2,300 | 2,300 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | ||||||||||
Debt Instrument, Maturity Year Date | 2022 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 1.250% due 2023 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [4] | $ 783 | 817 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | ||||||||||
Debt Instrument, Maturity Year Date | 2023 | ||||||||||
Debt Instrument, Call Feature | We may redeem these notes, in whole or in part, at our option at any time. If redeemed earlier than three months prior to the stated maturity date, the redemption price in Euro shall equal the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on an annual basis at a rate based upon a comparable German federal government bond whose maturity is closest to the maturity of the notes plus 15-30 basis points. In addition, the notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | ||||||||||
Notes 2.650% Due 2026 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 1,150 | 0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | ||||||||||
Debt Instrument, Maturity Year Date | 2026 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 1.875% Due 2026 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [4] | $ 522 | 0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.875% | ||||||||||
Debt Instrument, Maturity Year Date | 2026 | ||||||||||
Debt Instrument, Call Feature | We may redeem these notes, in whole or in part, at our option at any time. If redeemed earlier than three months prior to the stated maturity date, the redemption price in Euro shall equal the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on an annual basis at a rate based upon a comparable German federal government bond whose maturity is closest to the maturity of the notes plus 15-30 basis points. In addition, the notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | ||||||||||
Notes 7.100% Due 2027 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | $ 141 | 141 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.10% | ||||||||||
Debt Instrument, Maturity Year Date | 2027 | ||||||||||
Notes 6.700% Due 2028 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | $ 400 | 400 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | ||||||||||
Debt Instrument, Maturity Year Date | 2028 | ||||||||||
Notes 7.500% Due 2029 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 550 | 550 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | ||||||||||
Debt Instrument, Maturity Year Date | 2029 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 5.400% Due 2035 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 600 | 600 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | ||||||||||
Debt Instrument, Maturity Year Date | 2035 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 6.050% Due 2036 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 600 | 600 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.05% | ||||||||||
Debt Instrument, Maturity Year Date | 2036 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 6.800% Due 2036 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | $ 134 | 134 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | ||||||||||
Debt Instrument, Maturity Year Date | 2036 | ||||||||||
Notes 7.000% Due 2038 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | $ 159 | 159 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||||||||||
Debt Instrument, Maturity Year Date | 2038 | ||||||||||
Notes 6.125% Due 2038 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 1,000 | 1,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | ||||||||||
Debt Instrument, Maturity Year Date | 2038 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 5.700% Due 2040 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 1,000 | 1,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | ||||||||||
Debt Instrument, Maturity Year Date | 2040 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 4.500% Due 2042 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 3,500 | 3,500 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||||||||
Debt Instrument, Maturity Year Date | 2042 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 4.150% Due 2045 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 850 | 850 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | ||||||||||
Debt Instrument, Maturity Year Date | 2045 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
Notes 3.750% Due 2046 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Carrying Amount | [1] | $ 1,100 | $ 0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | ||||||||||
Debt Instrument, Maturity Year Date | 2046 | ||||||||||
Debt Instrument, Call Feature | We may redeem the above notes, in whole or in part, at our option at any time at a redemption price in U.S. Dollars equal to the greater of 100% of the principal amount of the notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed, discounted to the redemption date on a semiannual basis at the adjusted treasury rate plus 10-50 basis points. The redemption price will also include interest accrued to the date of redemption on the principal balance of the notes being redeemed. | ||||||||||
|
Equity (Accelerated Share Repurchase) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accelerated Share Repurchases [Line Items] | |||
Stock Repurchased During Period, Shares | 32.3 | 88.7 | 13.5 |
Stock Issued During Period, Value, Other | $ 1,100 | ||
Stock Issued During Period, Shares, Other | 11.3 | ||
March 13, 2015 ASR [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
ASR Aggregate Purchase Price | $ 2,650 | ||
Accelerated Share Repurchases, Cash or Stock Settlement | On March 13, 2015, we entered into ASR agreements to repurchase an aggregate of $2.65 billion of our common stock. Under the terms of the ASR agreements, we made the aggregate payments and received an initial delivery of approximately 18.6 million shares of our common stock, representing approximately 85% of the shares expected to be repurchased. On July 31, 2015, the shares associated with the remaining portion of the aggregate purchase were settled upon final delivery of approximately 4.2 million additional shares of common stock. Including the remaining shares settled on July 31, 2015, the final price under the ASR was $116.11 per share. | ||
Stock Repurchased During Period, Shares | 18.6 | ||
November 11, 2015 ASR [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
ASR Aggregate Purchase Price | $ 6,000 | ||
Accelerated Share Repurchases, Cash or Stock Settlement | On November 11, 2015, we entered into ASR agreements to repurchase an aggregate of $6 billion of our common stock utilizing the net after-tax proceeds from the sale of Sikorsky. Under the terms of the ASR agreements, we made the aggregate payments and received an initial delivery of approximately 51.9 million shares of our common stock, representing approximately 85% of the shares expected to be repurchased. In 2016, the shares associated with the remaining portion of the aggregate purchase were settled upon final delivery to us of approximately 10.1 million additional shares of common stock. Including the remaining shares associated with the six tranches settled in 2016, the final price under the November 11, 2015 ASR was $96.74 per share. | ||
Stock Repurchased During Period, Shares | 10.1 | 51.9 | |
Accelerated Share Repurchases, Final Price Paid Per Share | $ 96.74 | ||
July 31, 2015 settlement of ASR [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
Stock Repurchased During Period, Shares | 4.2 | ||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 116.11 |
Equity (Changes in Noncontrolling Interests) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Parent [Member] | |||
Subsidiary or Equity Method Investee [Line Items] | |||
(Purchase) / sale of subsidiary shares from noncontrolling interest | $ 8 | $ (12) | $ 71 |
Employee Benefit Plans (Employee Savings Plans) (Narrative) (Details) - USD ($) shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Contributions to employer sponsored defined contribution plans | $ 318 | $ 356 | $ 330 |
Employee Stock Ownership Plan (ESOP), Plan Description | Our non-union domestic employee savings plan uses an Employee Stock Ownership Plan (ESOP) for employer matching contributions. External borrowings were used by the ESOP to fund a portion of its purchase of ESOP stock from us. The external borrowings have been extinguished and only re-amortized loans remain between UTC and the ESOP Trust. As ESOP debt service payments are made, common stock is released from an unreleased shares account. ESOP debt may be prepaid or re-amortized to either increase or decrease the number of shares released so that the value of released shares equals the value of plan benefit. We may also, at our option, contribute additional common stock or cash to the ESOP.Shares of common stock are allocated to employees' ESOP accounts at fair value on the date earned. Cash dividends on common stock held by the ESOP are used for debt service payments. Participants may choose to have their ESOP dividends reinvested or distributed in cash. Common stock allocated to ESOP participants is included in the average number of common shares outstanding for both basic and diluted earnings per share. | ||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 27.8 | ||
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | 11.7 | ||
Employee Stock Ownership Plan (ESOP), Deferred Shares, Fair Value | $ 1,300 |
Employee Benefit Plans (Pension Plans) (Narrative) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Other Changes | $ 542,000,000 | $ 326,000,000 | $ 121,000,000 | |
Pension Contributions | 303,000,000 | 147,000,000 | 517,000,000 | |
Domestic Defined Benefit Plan Stock Contributions By Employer | 0 | 250,000,000 | 0 | |
Defined Benefit Plan, Accumulated Benefit Obligation | $ 34,200,000,000 | $ 34,200,000,000 | 34,600,000,000 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Explanation of Significant Change in Benefit Obligation or Plan Assets Not Apparent from Other Required Disclosures | As part of our long-term strategy to de-risk our defined benefit pension plans, we entered into an agreement to purchase a group annuity contract to transfer approximately $768 million of our outstanding pension benefit obligations related to certain U.S. retirees or beneficiaries, which was finalized on October 12, 2016. We also offered certain former U.S. employees or beneficiaries (generally all former U.S. participants not yet in receipt of their vested pension benefits) an option to take a one-time lump-sum distribution in lieu of future monthly pension payments, which reduced our pension benefit obligations by approximately $935 million. These transactions reduced the assets of our defined benefit pension plans by approximately $1.5 billion. As a result of these transactions, we recognized a one-time pre-tax pension settlement charge of approximately $423 million in the fourth quarter of 2016. | |||
Defined Benefit Plan, Other Changes | $ (693,000,000) | (789,000,000) | ||
Defined Benefit Plan, Effect of Plan Amendment on Accumulated Benefit Obligation | $ 170,000,000 | $ 170,000,000 | ||
Defined Benefit Plan, Effect of Plan Amendment on Accumulated Benefit Obligation | As approved in 2016, effective January 1, 2017, a voluntary lump-sum option is available for the frozen final average earnings benefits of certain U.S. salaried employees upon termination of employment after 2016. This option provides participants with the choice of electing to receive a lump-sum payment in lieu of receiving a future monthly pension benefit. This plan change reduced the projected benefit obligation by $170 million. | |||
Pension Payout Program, Voluntary Lump-Sum Value | 50,000 | |||
Pension Payout Program, Total Amount Settled | 147,000,000 | 311,000,000 | ||
Percentage Of Projected Benefit Obligation Comprised Of Domestic Plan Benefits | 75.00% | 75.00% | ||
Percentage Of Projected Benefit Obligation Comprised Of Foreign Plan Benefits | 24.00% | 24.00% | ||
Defined Benefit Plan, Net Periodic Benefit Cost | $ 401,000,000 | $ 649,000,000 | 223,000,000 | |
Range Of Growth Seeking Assets In Company's Overall Investment Strategy | 55% to 65% | |||
Range Of Income Generating Assets In Company's Overall Investment Strategy | 35% to 45% | |||
Percentage Of Enhanced Equity Assets In Global Equity Portfolio | 11.00% | 11.00% | ||
Pecentage Of Interest Rate Sensitivity Of Pension Plan Liabilities Fixed Income Portfolio Designed To Hedge | 35% to 45% | |||
Defined Benefit Plan Common Stock Funded Percentage | 1.00% | 3.00% | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 300,000,000 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $ 1,930,000,000 | 1,930,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 1,847,000,000 | 1,847,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 1,896,000,000 | 1,896,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 1,948,000,000 | 1,948,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 1,994,000,000 | 1,994,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 10,545,000,000 | 10,545,000,000 | ||
Domestic defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension Contributions | 100,000,000 | |||
Domestic Defined Benefit Plan Stock Contributions By Employer | $ 250,000,000 | |||
Discretionary employer contributions to defined benefit pension plans in the next 12 months | 150,000,000 | |||
Foreign defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension Contributions | 203,000,000 | 147,000,000 | ||
Pension de-risking actions [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Other Changes | 1,500,000,000 | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ (423,000,000) | |||
Purchase of Annuity Contract [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Other Changes | 768,000,000 | |||
Lump Sum Payments [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Other Changes | $ 935,000,000 | |||
Change in Assumptions for Pension Plans [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Change in Accounting Estimate, Description | At the end of fiscal 2015, we changed the approach we use to estimate the service and interest components of net periodic pension cost for our significant pension plans. This change compared to the previous approach resulted in a net decrease in the service and interest components of our annual net periodic pension cost of approximately $215 million for 2016. Historically, we estimated the service and interest cost components utilizing a single-weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. We have elected to utilize a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in determination of the benefit obligation to the relevant projected cash flows. We have made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. This change does not materially affect the measurement of our total benefit obligations. | |||
Impact of change in estimation of NPPC | $ (215,000,000) | |||
Discontinued Operations [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | (109,000,000) | (1,000,000) | ||
Defined Benefit Plan, Net Periodic Benefit Cost | $ 98,000,000 | $ 96,000,000 |
Employee Benefit Plans (Pension Plans) (Fair Value Tables) (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | $ 31,011 | |||||||||||||||||||
Ending Balance, Plan Assets | 30,555 | $ 31,011 | ||||||||||||||||||
Not Subject to Leveling [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 13,921 | |||||||||||||||||||
Ending Balance, Plan Assets | 13,570 | 13,921 | ||||||||||||||||||
Quoted price in active markets (Level 1) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 6,486 | |||||||||||||||||||
Ending Balance, Plan Assets | 5,210 | 6,486 | ||||||||||||||||||
Significant other observable inputs (Level 2) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 8,964 | |||||||||||||||||||
Ending Balance, Plan Assets | 9,936 | 8,964 | ||||||||||||||||||
Significant Unobservable Inputs (Level 3) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 1,347 | 1,120 | ||||||||||||||||||
Realized gains (losses) | 65 | (1) | ||||||||||||||||||
Unrealized gains relating to instruments still held in the reporting period | 23 | 147 | ||||||||||||||||||
Purchases, sales and settlements, net | (28) | 81 | ||||||||||||||||||
Ending Balance, Plan Assets | 1,407 | 1,347 | ||||||||||||||||||
Global Equities [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 5,884 | |||||||||||||||||||
Ending Balance, Plan Assets | 4,685 | 5,884 | ||||||||||||||||||
Global Equities [Member] | Not Subject to Leveling [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 0 | |||||||||||||||||||
Ending Balance, Plan Assets | 0 | 0 | ||||||||||||||||||
Global Equities [Member] | Quoted price in active markets (Level 1) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 5,884 | |||||||||||||||||||
Ending Balance, Plan Assets | 4,682 | 5,884 | ||||||||||||||||||
Global Equities [Member] | Significant other observable inputs (Level 2) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 0 | |||||||||||||||||||
Ending Balance, Plan Assets | 3 | 0 | ||||||||||||||||||
Global Equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 0 | |||||||||||||||||||
Ending Balance, Plan Assets | 0 | 0 | ||||||||||||||||||
Global Equity Commingled Funds [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [1] | 779 | ||||||||||||||||||
Ending Balance, Plan Assets | [1] | 367 | 779 | |||||||||||||||||
Global Equity Commingled Funds [Member] | Not Subject to Leveling [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [1] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [1] | 0 | 0 | |||||||||||||||||
Global Equity Commingled Funds [Member] | Quoted price in active markets (Level 1) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [1] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [1] | 0 | 0 | |||||||||||||||||
Global Equity Commingled Funds [Member] | Significant other observable inputs (Level 2) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [1] | 779 | ||||||||||||||||||
Ending Balance, Plan Assets | [1] | 367 | 779 | |||||||||||||||||
Global Equity Commingled Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [1] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [1] | 0 | 0 | |||||||||||||||||
Enhanced Global Equities [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [2] | 853 | ||||||||||||||||||
Ending Balance, Plan Assets | [2] | 1,662 | 853 | |||||||||||||||||
Enhanced Global Equities [Member] | Not Subject to Leveling [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [2] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [2] | 0 | 0 | |||||||||||||||||
Enhanced Global Equities [Member] | Quoted price in active markets (Level 1) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [2] | 237 | ||||||||||||||||||
Ending Balance, Plan Assets | [2] | 168 | 237 | |||||||||||||||||
Enhanced Global Equities [Member] | Significant other observable inputs (Level 2) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [2] | 616 | ||||||||||||||||||
Ending Balance, Plan Assets | [2] | 1,494 | 616 | |||||||||||||||||
Enhanced Global Equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [2] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [2] | 0 | 0 | |||||||||||||||||
Global Equity Funds at net asset value [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3] | 6,475 | ||||||||||||||||||
Ending Balance, Plan Assets | [3] | 7,090 | 6,475 | |||||||||||||||||
Global Equity Funds at net asset value [Member] | Not Subject to Leveling [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3] | 6,475 | ||||||||||||||||||
Ending Balance, Plan Assets | [3] | 7,090 | 6,475 | |||||||||||||||||
Global Equity Funds at net asset value [Member] | Quoted price in active markets (Level 1) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3] | 0 | 0 | |||||||||||||||||
Global Equity Funds at net asset value [Member] | Significant other observable inputs (Level 2) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3] | 0 | 0 | |||||||||||||||||
Global Equity Funds at net asset value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3] | 0 | 0 | |||||||||||||||||
Private Equities | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[4] | 1,517 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[4] | 1,361 | 1,517 | |||||||||||||||||
Private Equities | Not Subject to Leveling [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[4] | 1,335 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[4] | 1,239 | 1,335 | |||||||||||||||||
Private Equities | Quoted price in active markets (Level 1) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[4] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[4] | 0 | 0 | |||||||||||||||||
Private Equities | Significant other observable inputs (Level 2) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[4] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[4] | 0 | 0 | |||||||||||||||||
Private Equities | Significant Unobservable Inputs (Level 3) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 182 | [3],[4] | 145 | |||||||||||||||||
Realized gains (losses) | 46 | 3 | ||||||||||||||||||
Unrealized gains relating to instruments still held in the reporting period | 5 | 42 | ||||||||||||||||||
Purchases, sales and settlements, net | (111) | (8) | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[4] | 122 | 182 | |||||||||||||||||
Governments [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 418 | |||||||||||||||||||
Ending Balance, Plan Assets | 314 | 418 | ||||||||||||||||||
Governments [Member] | Not Subject to Leveling [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 0 | |||||||||||||||||||
Ending Balance, Plan Assets | 0 | 0 | ||||||||||||||||||
Governments [Member] | Quoted price in active markets (Level 1) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 365 | |||||||||||||||||||
Ending Balance, Plan Assets | 260 | 365 | ||||||||||||||||||
Governments [Member] | Significant other observable inputs (Level 2) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 53 | |||||||||||||||||||
Ending Balance, Plan Assets | 54 | 53 | ||||||||||||||||||
Governments [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 0 | |||||||||||||||||||
Ending Balance, Plan Assets | 0 | 0 | ||||||||||||||||||
Corporate Bonds [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 7,013 | |||||||||||||||||||
Ending Balance, Plan Assets | 7,637 | 7,013 | ||||||||||||||||||
Corporate Bonds [Member] | Not Subject to Leveling [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 0 | |||||||||||||||||||
Ending Balance, Plan Assets | 0 | 0 | ||||||||||||||||||
Corporate Bonds [Member] | Quoted price in active markets (Level 1) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 0 | |||||||||||||||||||
Ending Balance, Plan Assets | 0 | 0 | ||||||||||||||||||
Corporate Bonds [Member] | Significant other observable inputs (Level 2) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 7,013 | |||||||||||||||||||
Ending Balance, Plan Assets | 7,637 | 7,013 | ||||||||||||||||||
Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 0 | |||||||||||||||||||
Ending Balance, Plan Assets | 0 | 0 | ||||||||||||||||||
Fixed Income Securities [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3] | 2,992 | ||||||||||||||||||
Ending Balance, Plan Assets | [3] | 2,788 | 2,992 | |||||||||||||||||
Fixed Income Securities [Member] | Not Subject to Leveling [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3] | 2,992 | ||||||||||||||||||
Ending Balance, Plan Assets | [3] | 2,788 | 2,992 | |||||||||||||||||
Fixed Income Securities [Member] | Quoted price in active markets (Level 1) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3] | 0 | 0 | |||||||||||||||||
Fixed Income Securities [Member] | Significant other observable inputs (Level 2) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3] | 0 | 0 | |||||||||||||||||
Fixed Income Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3] | 0 | 0 | |||||||||||||||||
Real Estate [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[5] | 2,254 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[5] | 1,815 | 2,254 | |||||||||||||||||
Real Estate [Member] | Not Subject to Leveling [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[5] | 1,079 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[5] | 513 | 1,079 | |||||||||||||||||
Real Estate [Member] | Quoted price in active markets (Level 1) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[5] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[5] | 0 | 0 | |||||||||||||||||
Real Estate [Member] | Significant other observable inputs (Level 2) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[5] | 10 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[5] | 17 | 10 | |||||||||||||||||
Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 1,165 | [3],[5] | 975 | |||||||||||||||||
Realized gains (losses) | 19 | (4) | ||||||||||||||||||
Unrealized gains relating to instruments still held in the reporting period | 18 | 105 | ||||||||||||||||||
Purchases, sales and settlements, net | 83 | 89 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[5] | 1,285 | 1,165 | |||||||||||||||||
Other [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[6] | 2,040 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[6] | 2,108 | 2,040 | |||||||||||||||||
Other [Member] | Not Subject to Leveling [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[6] | 1,706 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[6] | 1,819 | 1,706 | |||||||||||||||||
Other [Member] | Quoted price in active markets (Level 1) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[6] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[6] | 0 | 0 | |||||||||||||||||
Other [Member] | Significant other observable inputs (Level 2) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[6] | 334 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[6] | 289 | 334 | |||||||||||||||||
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[6] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[6] | 0 | 0 | |||||||||||||||||
Cash & Cash Equivalents [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[7] | 493 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[7] | 296 | 493 | |||||||||||||||||
Cash & Cash Equivalents [Member] | Not Subject to Leveling [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[7] | 334 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[7] | 121 | 334 | |||||||||||||||||
Cash & Cash Equivalents [Member] | Quoted price in active markets (Level 1) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[7] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[7] | 100 | 0 | |||||||||||||||||
Cash & Cash Equivalents [Member] | Significant other observable inputs (Level 2) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[7] | 159 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[7] | 75 | 159 | |||||||||||||||||
Cash & Cash Equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [3],[7] | 0 | ||||||||||||||||||
Ending Balance, Plan Assets | [3],[7] | 0 | 0 | |||||||||||||||||
Subtotal [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | 30,718 | |||||||||||||||||||
Ending Balance, Plan Assets | 30,123 | 30,718 | ||||||||||||||||||
Other Assets & Liabilities [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Beginning Balance, Plan Assets | [8] | 293 | ||||||||||||||||||
Ending Balance, Plan Assets | [8] | $ 432 | $ 293 | |||||||||||||||||
|
Employee Benefit Plans (Postretirement Benefit Plans) (Narrative) (Details) - Other Postretirement Benefit Plan [Member] $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage Of Projected Benefit Obligation Comprised Of Domestic Plan Benefits | 87.00% |
Future Amortization of Gain | $ 10 |
Future amortization of prior service credit | (1) |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 78 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 75 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 70 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 65 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 60 |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 242 |
Employee Benefit Plans (Multiemployer Plan) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Multiemployer Plans [Line Items] | |||
Multiemployer Plans General Nature | The risks of participating in these multiemployer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. Lastly, if we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans a withdrawal liability based on the underfunded status of the plan. | ||
Multiemployer Plans Period Contributions | $ 131 | $ 120 | $ 113 |
Multiemployer Plans Period Contributions Other Than Pensions | $ 17 | $ 15 | 14 |
National Elevator Industry Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Entity Tax Identification Number | 232694291 | ||
Multiemployer Plans Certified Zone Status | Green | Green | |
Multiemployer Plans Funding Improvement Plan And Rehabilitation Plan | No | ||
Multiemployer Plans Period Contributions | $ 100 | $ 88 | 79 |
Multiemployer Plans Surcharge | No | ||
Multiemployer Plans Collective Bargaining Arrangement Expiration Date | Jul. 08, 2017 | ||
Multiemployer Plans, Period Contributions, Significance of Contributions | 1 | 1 | |
Other Funds [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plans Period Contributions | $ 31 | $ 32 | $ 34 |
Employee Benefit Plans (Stock Based Compensation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Cost of Share Based Payments | $ 153 | $ 175 | $ 240 | |||||||
Expected Volatility | 20.00% | |||||||||
Expected Volatility, Minimum | 20.00% | 22.00% | ||||||||
Expected Volatility, Maximum | 23.00% | 26.00% | ||||||||
Expected term (in years) | 6 years 6 months | |||||||||
Weighted-average volatility | 20.00% | 21.00% | 26.00% | |||||||
Expected dividend yield | 2.70% | 2.20% | 2.20% | |||||||
Risk-free rate, minimum | 0.20% | 0.00% | 0.00% | |||||||
Risk-free rate, maximum | 2.60% | 2.20% | 3.10% | |||||||
Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected term (in years) | 6 years 9 months | 8 years | ||||||||
Minimum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected term (in years) | 6 years | 7 years 7 months 6 days | ||||||||
Stock Options [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
December 31, 2015, Shares | 1,879 | |||||||||
Granted, Shares | 397 | |||||||||
Exercised/earned, Shares | 239 | |||||||||
Cancelled, Shares | 14 | |||||||||
December 31, 2016, Shares | 2,023 | 1,879 | ||||||||
December 31, 2015, Average Price | [1] | $ 86.19 | ||||||||
Granted, Average Price | [1] | 95.57 | ||||||||
Exercised/Earned, Average Price | [1] | 71.57 | ||||||||
Cancelled, Average Price | [1] | 92.02 | ||||||||
December 31, 2016, Average Price | [1] | $ 89.72 | $ 86.19 | |||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
December 31, 2015, Shares | 38,111 | |||||||||
Granted, Shares | 4,740 | |||||||||
Exercised/earned, Shares | 5,760 | |||||||||
Cancelled, Shares | 678 | |||||||||
December 31, 2016, Shares | 36,413 | 38,111 | ||||||||
December 31, 2015, Average Price | [1] | $ 83.58 | ||||||||
Granted, Average Price | [1] | 95.40 | ||||||||
Exercised/Earned, Average Price | [1] | 69.19 | ||||||||
Cancelled, Average Price | [1] | 95.03 | ||||||||
December 31, 2016, Average Price | [1] | $ 87.18 | $ 83.58 | |||||||
Performance Share Units [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
December 31, 2015, Shares | 2,170 | |||||||||
Granted, Shares | 687 | |||||||||
Exercised/earned, Shares | 372 | |||||||||
Cancelled, Shares | 518 | |||||||||
December 31, 2016, Shares | 1,967 | 2,170 | ||||||||
December 31, 2015, Average Price | [2] | $ 101.78 | ||||||||
Granted, Average Price | [2] | 95.29 | ||||||||
Exercised/Earned, Average Price | [2] | 84.03 | ||||||||
Cancelled, Average Price | [2] | 85.92 | ||||||||
December 31, 2016, Average Price | [2] | $ 107.05 | $ 101.78 | |||||||
Other Incentive Shares/Units [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
December 31, 2015, Shares | 1,467 | |||||||||
Granted, Shares | 698 | |||||||||
Exercised/earned, Shares | 339 | |||||||||
Cancelled, Shares | 207 | |||||||||
December 31, 2016, Shares | 2,033 | 1,467 | ||||||||
Stock Options/Stock Appreciation Rights SARS [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Equity Awards Vested and Expected to Vest, Awards | 38,314 | |||||||||
Equity Awards Vested and Expected to Vest, Average Price | [3] | $ 86.58 | ||||||||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 917 | |||||||||
Equity Awards Vested and Expected to Vest, Remaining Term | 5 years 4 months 24 days | |||||||||
Equity Awards That Are Exercisable, Awards | 25,574 | |||||||||
Equity Awards That Are Exercisable, Average Price | [3] | $ 77.64 | ||||||||
Equity Awards That Are Exercisable, Aggregate Intrinsic Value | $ 824 | |||||||||
Equity Awards That Are Exercisable, Remaining Term | 4 years 2 months 12 days | |||||||||
Performance Share Units/Other Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Equity Awards Vested and Expected to Vest, Awards | 2,376 | |||||||||
Equity Awards Vested and Expected to Vest, Average Price | [3] | $ 0 | ||||||||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 260 | |||||||||
Equity Awards Vested and Expected to Vest, Remaining Term | 2 years 9 months 18 days | |||||||||
Continuing operations [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Cost of Share Based Payments | $ 152 | $ 158 | $ 219 | |||||||
Discontinued operations | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Cost of Share Based Payments | $ 1 | $ 17 | $ 21 | |||||||
|
Employee Benefit Plans (Stock Based Compensation) (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 149 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 38 | ||
Expected Range Of Shares Awarded Annually Under Long Term Incentive Plan | 1.0% to 1.5% | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 49 | $ 57 | $ 80 |
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | 17 | 41 | 187 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 69 | 89 | 125 |
Employee Service Share Based Compensation Tax Benefit Realized From Vesting Of Performance Share Units | 17 | 48 | 49 |
Employee Service Share Based Compensation Cash Flow Tax Benefit Reported | 64 | 103 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 157 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Vested In Period Total Fair Value | $ 165 | $ 247 | $ 226 |
Stock Options/Stock Appreciation Rights SARS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 14.02 | $ 18.69 | $ 28.36 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 214 | $ 281 | $ 425 |
Performance Share Units/Other Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Options and Other Restricted Awards Exercised In Period Total Intrinsic Value | $ 61 | $ 151 | $ 154 |
Performance Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 91.63 | $ 120.36 | $ 125.41 |
Restructuring and Other Costs (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 290 | |
Net pre-tax restructuring costs (reversals) | 65 | |
Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 187 | |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 78 | |
Other Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 25 | |
Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 242 | |
Restructuring Reserve | 109 | |
Net pre-tax restructuring costs (reversals) | 242 | |
Utilization and foreign exchange | 133 | |
Expected Costs | 354 | |
Remaining Costs | 112 | |
Current Year Actions [Member] | Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 149 | |
Current Year Actions [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 67 | |
Current Year Actions [Member] | Other Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 26 | |
Current Year Actions [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 63 | |
Net pre-tax restructuring costs (reversals) | 166 | |
Utilization and foreign exchange | 103 | |
Current Year Actions [Member] | Facility Exit, Lease Termination and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 46 | |
Net pre-tax restructuring costs (reversals) | 76 | |
Utilization and foreign exchange | 30 | |
Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 40 | |
Restructuring Reserve | 66 | $ 206 |
Net pre-tax restructuring costs (reversals) | 40 | 326 |
Utilization and foreign exchange | 180 | |
Expected Costs | 408 | |
Remaining Costs | 42 | |
Prior Year Actions [Member] | Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 36 | |
Prior Year Actions [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 4 | |
Prior Year Actions [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 17 | |
Restructuring Reserve | 42 | 183 |
Utilization and foreign exchange | 158 | |
Prior Year Actions [Member] | Facility Exit, Lease Termination and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 23 | |
Restructuring Reserve | 24 | 23 |
Utilization and foreign exchange | 22 | |
Otis [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 59 | |
Otis [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 48 | |
Expected Costs | 57 | |
Remaining Costs | 9 | |
Otis [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 14 | 35 |
Expected Costs | 51 | |
Remaining Costs | 2 | |
UTC Climate, Controls and Security [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 65 | |
UTC Climate, Controls and Security [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 45 | |
Expected Costs | 87 | |
Remaining Costs | 42 | |
UTC Climate, Controls and Security [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 24 | 83 |
Expected Costs | 139 | |
Remaining Costs | 32 | |
Pratt and Whitney [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 111 | |
Pratt and Whitney [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 118 | |
Expected Costs | 118 | |
Remaining Costs | 0 | |
Pratt and Whitney [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | (20) | 82 |
Expected Costs | 62 | |
Remaining Costs | 0 | |
UTC Aerospace Systems [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 49 | |
UTC Aerospace Systems [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 31 | |
Expected Costs | 92 | |
Remaining Costs | 61 | |
UTC Aerospace Systems [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 16 | 105 |
Expected Costs | 129 | |
Remaining Costs | 8 | |
Eliminations and other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 6 | |
Eliminations and other [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 6 | $ 21 |
Expected Costs | 27 | |
Remaining Costs | $ 0 |
Financial Instruments (Narrative) (Details) € in Millions, $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2016
EUR (€)
|
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Four Quarter Rolling Average Of Notional Amount Of Foreign Exchange Contracts Hedging Foreign Currency Transactions | $ 18,300 | $ 15,600 | ||
Derivatives designated as hedging instruments - assets | 15 | 4 | ||
Derivatives not designated as hedging instruments - assets | 155 | 97 | ||
Derivatives designated as hedging instruments - liabilities | 196 | 428 | ||
Derivatives not designated as hedging instruments - liabilities | 158 | 105 | ||
Hedging Liabilities, Noncurrent | € | € 2,950 | |||
Hedging Liabilities, Current | € | € 500 | |||
Loss recorded in Accumulated other comprehensive loss | 75 | (415) | ||
Loss reclassified from Accumulated other comprehensive loss into Product sales (effective portion) | 171 | 234 | ||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 59 | |||
Maximum Length of Time, Foreign Currency Cash Flow Hedge | 5 years 11 months 23 days | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 56 | 63 | ||
Payments for (Proceeds from) Derivative Instrument, Investing Activities | $ (249) | $ (160) | $ (93) |
Fair Value Measurements (Fair Value Hierarchy) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2016 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 951 | $ 987 |
Derivative Assets | 101 | 170 |
Derivative liabilities | 533 | 354 |
Recurring fair value measurements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 951 | 987 |
Derivative Assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring fair value measurements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Derivative Assets | 101 | 170 |
Derivative liabilities | 533 | 354 |
Recurring fair value measurements | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative liabilities | 0 | $ 0 |
UTC Climate, Controls and Security [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) on Disposition of Business | 126 | |
UTC Aerospace Systems [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Method Investment, Other than Temporary Impairment | $ 61 |
Fair Value Measurements (Fair Value Techniques) (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | $ 127 | $ 122 |
Customer Financing Notes Receivable | 437 | 403 |
Short-Term Borrowings | 600 | 926 |
Long-term debt (excluding capitalized leases) | 23,280 | 19,476 |
Long-term liabilities | 457 | 458 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 121 | 107 |
Customer Financing Notes Receivable | 420 | 403 |
Short-Term Borrowings | 600 | 926 |
Long-term debt (excluding capitalized leases) | 25,110 | 21,198 |
Long-term liabilities | 427 | $ 419 |
Level 1 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 0 | |
Customer Financing Notes Receivable | 0 | |
Short-Term Borrowings | 0 | |
Long-term debt (excluding capitalized leases) | 0 | |
Long-term liabilities | 0 | |
Level 2 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 121 | |
Customer Financing Notes Receivable | 420 | |
Short-Term Borrowings | 522 | |
Long-term debt (excluding capitalized leases) | 24,906 | |
Long-term liabilities | 427 | |
Level 3 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 0 | |
Customer Financing Notes Receivable | 0 | |
Short-Term Borrowings | 78 | |
Long-term debt (excluding capitalized leases) | 204 | |
Long-term liabilities | $ 0 |
Variable Interest Entities (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Variable Interest Entity [Line Items] | ||
Total Assets | $ 4,056 | $ 3,022 |
Total Liabilities | 4,058 | 3,286 |
Current Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 2,722 | 1,920 |
Noncurrent Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 1,334 | 1,102 |
Current Liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Liabilities | 2,422 | 1,931 |
Noncurrent Liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Liabilities | $ 1,636 | $ 1,355 |
International Aero Engines AG [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Methodology | In 2012, Pratt & Whitney, Rolls-Royce plc (Rolls-Royce), MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC), participants in the IAE International Aero Engines AG (IAE) collaboration, completed a restructuring of their interests in IAE. As a result of this transaction, Pratt & Whitney holds a 61% net interest in the collaboration and a 49.5% ownership interest in IAE. IAE's business purpose is to coordinate the design, development, manufacturing and product support of the V2500 program through involvement with the collaborators. | |
Variable Interest Entity, Ownership Percentage | 49.50% | |
International Aero Engines LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Methodology | Additionally, Pratt & Whitney, JAEC and MTU are participants in International Aero Engines, LLC (IAE LLC), whose business purpose is to coordinate the design, development, manufacturing and product support for the PW1100G-JM engine for the Airbus A320neo aircraft and the PW1400G-JM engine for the Irkut MC21 aircraft. Pratt & Whitney holds a 59% net interest in the collaboration and a 59% ownership interest in IAE LLC. IAE and IAE LLC retain limited equity with the primary economics of the programs passed to the participants. | |
Variable Interest Entity, Ownership Percentage | 59.00% |
Guarantees (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Guarantee Obligations [Line Items] | ||
Environmental, health and safety, tax and employment matters | $ 171,000,000 | $ 171,000,000 |
Balance as of January 1 | 1,212,000,000 | 1,264,000,000 |
Warranties and performance guarantees issued | 246,000,000 | 291,000,000 |
Settlements made | 240,000,000 | 259,000,000 |
Other | (19,000,000) | (84,000,000) |
Balance as of December 31 | 1,199,000,000 | 1,212,000,000 |
Credit Facilities And Debt Obligations (expire 2017 to 2028) | ||
Guarantee Obligations [Line Items] | ||
Maximum Potential Payment | 270,000,000 | 241,000,000 |
Carrying Amount of Liability | 15,000,000 | 0 |
Commercial aerospace financing arrangements (see Note 5) | ||
Guarantee Obligations [Line Items] | ||
Maximum Potential Payment | 348,000,000 | 365,000,000 |
Carrying Amount of Liability | 14,000,000 | 12,000,000 |
Performance Guarantees | ||
Guarantee Obligations [Line Items] | ||
Maximum Potential Payment | 55,000,000 | 55,000,000 |
Carrying Amount of Liability | $ 4,000,000 | $ 3,000,000 |
Contingent Liabilities (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases Future Minimum Payments Due | $ 2,094 | ||
Operating Leases Future Minimum Payments Due Current | 462 | ||
Operating Leases Future Minimum Payments Due In Two Years | 354 | ||
Operating Leases Future Minimum Payments Due In Three Years | 286 | ||
Operating Leases Future Minimum Payments Due In Four Years | 209 | ||
Operating Leases Future Minimum Payments Due In Five Years | 145 | ||
Operating Leases Future Minimum Payments Due Thereafter | 638 | ||
Rent Expense | 386 | $ 386 | $ 434 |
Accrual For Environmental Loss Contingencies | $ 829 | $ 837 | |
German Tax Office Against Otis [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Lawsuit Filing Date | 8/3/2012 | ||
Loss Contingency Allegations | As previously disclosed, UTC has been involved in administrative review proceedings with the German Tax Office, which concern approximately €215 million (approximately $225 million) of tax benefits that we have claimed related to a 1998 reorganization of the corporate structure of Otis operations in Germany. Upon audit, these tax benefits were disallowed by the German Tax Office. UTC estimates interest associated with the aforementioned tax benefits is an additional approximately €118 million (approximately $123 million). On August 3, 2012, we filed suit in the local German Tax Court (Berlin-Brandenburg). In March 2016, the local German Tax Court dismissed our suit, and we have appealed this decision to the German Federal Tax Court (FTC). | ||
Loss Contingency Damages Sought | €215 million (approximately $225 million) | ||
Loss Contingency Actions Taken By Defendant | In 2015, UTC made tax and interest payments to German tax authorities of €275 million (approximately $300 million) in order to avoid additional interest accruals pending final resolution of this matter. In the meantime, we continue vigorously to litigate this matter. | ||
Loss Contingency, Interest | €118 million (approximately $123 million) | ||
Loss Contingency, Interest Paid | €275 million (approximately $300 million) | ||
U.S. Defense Contract Management Claim against Pratt & Whitney | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Lawsuit Filing Date | December 24, 2013 | ||
Loss Contingency Allegations | As previously disclosed, in December 2013, a Divisional Administrative Contracting Officer of the United States Defense Contract Management Agency asserted a claim against Pratt & Whitney to recover overpayments of approximately $177 million plus interest (approximately $63 million through December 31, 2016). The claim is based on Pratt & Whitney's alleged noncompliance with cost accounting standards from January 1, 2005 to December 31, 2012, due to its method of determining the cost of collaborator parts used in the calculation of material overhead costs for government contracts. | ||
Loss Contingency Damages Sought | $177 million | ||
Loss Contingency Actions Taken By Defendant | On March 18, 2014, Pratt & Whitney filed an appeal to the Armed Services Board of Contract Appeals. Pratt & Whitney’s appeal is still pending and we continue to believe the government’s claim is without merit. | ||
Loss Contingency, Interest | $63 million | ||
Asbestos Matter [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Allegations | As previously disclosed, like many other industrial companies, we and our subsidiaries have been named as defendants in lawsuits alleging personal injury as a result of exposure to asbestos integrated into certain of our products or business premises. While we have never manufactured asbestos and no longer incorporate it in any currently-manufactured products, certain of our historical products, like those of many other manufacturers, have contained components incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or were covered in full or in part by insurance or other forms of indemnity. Additional cases were litigated and settled without any insurance reimbursement. The amounts involved in asbestos related claims were not material individually or in the aggregate in any year. | ||
Loss Contingency, Management's Assessment and Process | Our estimated total liability to resolve all pending and unasserted potential future asbestos claims through 2059 is $374.3 million and is principally recorded in Other long-term liabilities on our Consolidated Balance Sheet as of December 31, 2016. This amount is on a pre-tax basis, not discounted, and excludes the Company’s legal fees to defend the asbestos claims (which will continue to be expensed by the Company as they are incurred). In addition, the Company has an insurance recovery receivable for probable asbestos related recoveries of approximately $123.7 million, which is included primarily in Other assets on our Consolidated Balance Sheet as of December 31, 2016. The amounts recorded by UTC for asbestos-related liabilities and insurance recoveries are based on currently available information and assumptions that we believe are reasonable. Our actual liabilities or insurance recoveries could be higher or lower than those recorded if actual results vary significantly from the assumptions. Key variables in these assumptions include the number and type of new claims to be filed each year, the outcomes or resolution of such claims, the average cost of resolution of each new claim, the amount of insurance available, allocation methodologies, the contractual terms with each insurer with whom we have reached settlements, the resolution of coverage issues with other excess insurance carriers with whom we have not yet achieved settlements, and the solvency risk with respect to our insurance carriers. Other factors that may affect our future liability include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, legal rulings that may be made by state and federal courts, and the passage of state or federal legislation. At the end of each year, the Company will evaluate all of these factors and, with input from an outside actuarial expert, make any necessary adjustments to both our estimated asbestos liabilities and insurance recoveries. | ||
Loss Contingency, Estimate of Possible Loss | $ 374 | ||
Loss Contingency, Receivable | $ 124 |
Segment Financial Data (By Segment) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | $ 8,172 | $ 7,291 | $ 9,593 | ||||||||
Total Assets | $ 89,706 | $ 87,484 | 89,706 | 87,484 | |||||||
Assets excluding Assets Held for Sale | 86,338 | ||||||||||
Capital Expenditures | 1,699 | 1,652 | 1,594 | ||||||||
Depreciation & Amortization | 1,962 | 1,863 | 1,820 | ||||||||
Major Customers, U.S. Government Sales | 5,626 | 5,630 | 5,879 | ||||||||
Net Sales | 14,659 | $ 14,354 | $ 14,874 | $ 13,357 | 14,300 | $ 13,788 | $ 14,690 | $ 13,320 | 57,244 | 56,098 | 57,900 |
Major Customers, Airbus Sales | 7,688 | $ 7,624 | 7,757 | ||||||||
Sikorsky [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Disposal Date | Nov. 06, 2015 | ||||||||||
Major Customers, U.S. Government Sales | $ 3,100 | 3,800 | |||||||||
UTC Aerospace Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 2,298 | 1,888 | 2,355 | ||||||||
Total Assets | 34,093 | 34,736 | 34,093 | 34,736 | 35,034 | ||||||
Capital Expenditures | 452 | 537 | 533 | ||||||||
Depreciation & Amortization | 807 | 796 | 807 | ||||||||
Major Customers, U.S. Government Sales | 2,301 | 2,409 | 2,459 | ||||||||
Net Sales | 14,465 | 14,094 | 14,215 | ||||||||
Total Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 8,946 | 8,023 | 9,777 | ||||||||
Total Assets | 87,718 | 85,205 | 87,718 | 85,205 | 83,707 | ||||||
Capital Expenditures | 1,611 | 1,573 | 1,540 | ||||||||
Depreciation & Amortization | 1,882 | 1,785 | 1,755 | ||||||||
Net Sales | 58,103 | 56,863 | 58,528 | ||||||||
Eliminations and other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | (368) | (268) | 304 | ||||||||
Total Assets | 1,988 | 2,279 | 1,988 | 2,279 | 2,631 | ||||||
Capital Expenditures | 88 | 79 | 54 | ||||||||
Depreciation & Amortization | 80 | 78 | 65 | ||||||||
Net Sales | (859) | (765) | (628) | ||||||||
General corporate expenses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | (406) | (464) | (488) | ||||||||
Net Sales | 0 | 0 | 0 | ||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Major Customers, U.S. Government Sales | 138 | 276 | 294 | ||||||||
Otis [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 2,147 | 2,338 | 2,640 | ||||||||
Total Assets | 8,867 | 8,846 | 8,867 | 8,846 | 9,313 | ||||||
Capital Expenditures | 94 | 83 | 87 | ||||||||
Depreciation & Amortization | 171 | 176 | 209 | ||||||||
Net Sales | 11,893 | 11,980 | 12,982 | ||||||||
UTC Climate, Controls and Security [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 2,956 | 2,936 | 2,782 | ||||||||
Total Assets | 21,787 | 21,287 | 21,787 | 21,287 | 21,217 | ||||||
Capital Expenditures | 340 | 261 | 228 | ||||||||
Depreciation & Amortization | 354 | 337 | 349 | ||||||||
Net Sales | 16,851 | 16,707 | 16,823 | ||||||||
Pratt and Whitney [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 1,545 | 861 | 2,000 | ||||||||
Total Assets | $ 22,971 | $ 20,336 | 22,971 | 20,336 | 18,143 | ||||||
Capital Expenditures | 725 | 692 | 692 | ||||||||
Depreciation & Amortization | 550 | 476 | 390 | ||||||||
Major Customers, U.S. Government Sales | 3,187 | 2,945 | 3,126 | ||||||||
Net Sales | $ 14,894 | $ 14,082 | $ 14,508 |
Segment Financial Data (By Geographic Region) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
External Net Sales by Geography | 57244 | 56098 | 57900 |
United States Export Sales | $ 10,827 | $ 9,741 | $ 10,276 |
Operating profit by Geography | $ 8,172 | $ 7,291 | $ 9,593 |
Long-Lived Assets by Geography | 9158 | 8732 | 8592 |
United States Operations | |||
External Net Sales by Geography | 32335 | 30989 | 30814 |
Operating profit by Geography | $ 4,566 | $ 4,391 | $ 5,067 |
Long-Lived Assets by Geography | 4822 | 4517 | 4211 |
Europe [Member] | |||
External Net Sales by Geography | 11151 | 10945 | 12587 |
United States Export Sales | $ 5,065 | $ 4,366 | $ 4,137 |
Operating profit by Geography | $ 1,933 | $ 1,882 | $ 2,238 |
Long-Lived Assets by Geography | 1538 | 1525 | 1577 |
Asia Pacific [Member] | |||
External Net Sales by Geography | 8260 | 8425 | 8746 |
United States Export Sales | $ 3,449 | $ 2,902 | $ 3,469 |
Operating profit by Geography | $ 1,484 | $ 1,641 | $ 1,712 |
Long-Lived Assets by Geography | 999 | 994 | 995 |
Other | |||
External Net Sales by Geography | 5479 | 5584 | 5511 |
United States Export Sales | $ 2,313 | $ 2,473 | $ 2,670 |
Operating profit by Geography | $ 963 | $ 109 | $ 760 |
Long-Lived Assets by Geography | 1325 | 1273 | 1379 |
Eliminations and other | |||
External Net Sales by Geography | 19 | 155 | 242 |
Operating profit by Geography | $ (774) | $ (732) | $ (184) |
Long-Lived Assets by Geography | 474 | 423 | 430 |
Selected Quarterly Financial Data - Unaudited (Details) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
$ / shares
|
Sep. 30, 2016
USD ($)
$ / shares
|
Jun. 30, 2016
USD ($)
$ / shares
|
Mar. 31, 2016
USD ($)
$ / shares
|
Dec. 31, 2015
USD ($)
$ / shares
|
Sep. 30, 2015
USD ($)
$ / shares
|
Jun. 30, 2015
USD ($)
$ / shares
|
Mar. 31, 2015
USD ($)
$ / shares
|
Dec. 31, 2016
USD ($)
$ / shares
|
Dec. 31, 2015
USD ($)
$ / shares
|
Dec. 31, 2014
USD ($)
$ / shares
|
Jan. 31, 2017 |
|
Selected Quarterly Financial Information [Abstract] | ||||||||||||
Net Sales | $ | $ 14,659 | $ 14,354 | $ 14,874 | $ 13,357 | $ 14,300 | $ 13,788 | $ 14,690 | $ 13,320 | $ 57,244 | $ 56,098 | $ 57,900 | |
Gross margin | $ | 3,936 | 4,012 | 4,133 | 3,703 | 3,647 | 3,988 | 4,218 | 3,814 | ||||
Net income attributable to common shareowners | $ | $ 1,013 | $ 1,480 | $ 1,379 | $ 1,183 | $ 3,278 | $ 1,362 | $ 1,542 | $ 1,426 | $ 5,055 | $ 7,608 | $ 6,220 | |
Earnings Per Share of Common Stock - Basic and Diluted: | ||||||||||||
Basic - net income | $ 1.26 | $ 1.80 | $ 1.67 | $ 1.43 | $ 3.86 | $ 1.55 | $ 1.76 | $ 1.60 | $ 6.18 | $ 8.72 | $ 6.92 | |
Diluted - net income | 1.25 | 1.78 | 1.65 | 1.42 | 3.86 | 1.54 | 1.73 | 1.58 | 6.12 | 8.61 | 6.82 | |
Common Stock Price - High | 110.98 | 109.69 | 105.89 | 100.25 | 100.80 | 111.58 | 119.14 | 124.11 | ||||
Common Stock Price - Low | 98.67 | 100.10 | 97.21 | 84.66 | 88.36 | 86.82 | 110.93 | 111.52 | ||||
Dividend | $ 0.66 | $ 0.66 | $ 0.66 | $ 0.64 | $ 0.64 | $ 0.64 | $ 0.64 | $ 0.64 | $ 2.62 | $ 2.56 | $ 2.36 | |
Registered Shareholders Total | 19,126 |
Performance Graph - Unaudited (Details) - USD ($) |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
Dec. 31, 2011 |
|
United Technologies Corporation | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | $ 168.81 | $ 144.23 | $ 168.50 | $ 163.30 | $ 115.10 | $ 100.00 |
S&P 500 Index | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | 198.18 | 177.01 | 174.60 | 153.57 | 116.00 | 100.00 |
Dow Jones Industrial Average | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | $ 183.61 | $ 157.61 | $ 157.28 | $ 142.93 | $ 110.24 | $ 100.00 |
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