Note 18: Segment Financial Data

12 Months Ended

Dec. 31, 2011

Notes to Consolidated Financial Statements [Abstract]

Note 18: Segment Financial Data

Note 18: Segment Financial Data

Our operations for the periods presented herein are classified into six principal segments. The segments are generally determined based on the management of the businesses and on the basis of separate groups of operating companies, each with general operating autonomy over diversified products and services.

Otis products include elevators, escalators, moving walkways and service sold to customers in the commercial and residential property industries around the world.

Carrier productsincludeHVAC and refrigeration systems, controls, services and energy efficient products for residential, commercial, industrial and transportation applications.

UTC Fire & Security products include fire and special hazard and suppression systems and firefighting equipment, security, monitoring and rapid response systems and service and security personnel for a diversified international customer base principally in the industrial, commercial and residential property sectors.

Pratt & Whitney products include commercial, military, business jet and general aviation aircraft engines, parts and services, industrial gas turbines, geothermal power systems and space propulsion 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 and produces land-based power generation equipment.

Hamilton Sundstrand provides aerospace and industrial products and aftermarket services for diversified industries worldwide. Aerospace products include power generation, management and distribution systems, flight systems, engine control systems, environmental control systems, fire protection and detection systems, auxiliary power units and propeller systems. Industrial products include air compressors, metering pumps and heavy duty process pumps.

Sikorsky products include military and commercial helicopters, aftermarket helicopter and aircraft parts and services.

On September 28, 2011, we announced a new organizational structure to better serve customers and drive growth and achieve greater efficiencies through greater integration across certain product lines. This new structure combines Carrier and UTC Fire & Security into a new segment called UTC Climate, Controls & Security. Beginning with the first quarter of 2012, Carrier and UTC Fire & Security will report combined financial and operational results as part of this new segment. As part of this new organizational structure, we also created UTC Propulsion & Aerospace Systems, a new organization consisting of Pratt & Whitney and Hamilton Sundstrand. Pratt & Whitney and Hamilton Sundstrand will continue to report their financial and operational results as separate segments, which is consistent with how we will allocate resources and measure the financial performance of these businesses. We have reported our financial and operational results for the periods presented herein under the six principal segments noted above, consistent with how we have reviewed our business operations for decision-making purposes, resource allocation and performance assessment during 2011.

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:

							Net Sales						Operating Profits
(Dollars in millions)							2011		2010		2009		2011		2010		2009
Otis							$	12,437	$	11,579	$	11,723	$	2,815	$	2,575	$	2,447
Carrier								11,969		11,386		11,335		1,520		1,062		740
UTC Fire & Security								6,895		6,490		5,503		692		714		493
Pratt & Whitney								13,430		12,935		12,392		1,999		1,987		1,835
Hamilton Sundstrand								6,150		5,608		5,560		1,082		918		857
Sikorsky								7,355		6,684		6,287		840		716		608
Total segment								58,236		54,682		52,800		8,948		7,972		6,980
Eliminations and other								(46)		(356)		(375)		(430)		(409)		(255)
General corporate expenses								-		-		-		(419)		(377)		(348)
Consolidated							$	58,190	$	54,326	$	52,425	$	8,099	$	7,186	$	6,377
	Total Assets						Capital Expenditures						Depreciation & Amortization
(Dollars in millions)	2011		2010		2009		2011		2010		2009		2011		2010		2009
Otis	$	8,717	$	8,097	$	7,908	$	75	$	55	$	67	$	223	$	211	$	204
Carrier		9,432		9,472		9,804		189		138		90		164		183		191
UTC Fire & Security		12,198		12,365		10,304		116		96		72		268		274		214
Pratt & Whitney		10,705		10,139		10,063		290		321		288		332		340		329
Hamilton Sundstrand		8,593		8,540		8,509		163		117		114		172		172		174
Sikorsky		4,628		4,521		4,167		92		108		95		84		83		68
Total segment		54,273		53,134		50,755		925		835		726		1,243		1,263		1,180
Eliminations and other		7,179		5,359		5,007		58		30		100		104		93		78
Consolidated	$	61,452	$	58,493	$	55,762	$	983	$	865	$	826	$	1,347	$	1,356	$	1,258

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.

		External Net Sales						Operating Profits						Long-Lived Assets
(Dollars in millions)		2011		2010		2009		2011		2010		2009		2011		2010		2009
United States Operations		$	30,438	$	28,911	$	27,990	$	4,586	$	4,112	$	3,771	$	2,974	$	3,013	$	3,096
International Operations
	Europe		12,601		11,957		12,216		2,136		1,872		1,743		1,210		1,282		1,346
	Asia Pacific		9,394		7,986		7,173		1,513		1,229		990		883		839		845
	Other		5,380		5,374		4,991		713		759		476		760		804		714
Eliminations and other			377		98		55		(849)		(786)		(603)		374		342		363
Consolidated		$	58,190	$	54,326	$	52,425	$	8,099	$	7,186	$	6,377	$	6,201	$	6,280	$	6,364

Sales from U.S. operations include export sales as follows:

(Dollars in millions)	2011		2010		2009
Europe	$	2,310	$	1,918	$	2,089
Asia Pacific		2,506		2,688		2,430
Other		3,141		2,690		2,477
	$	7,957	$	7,296	$	6,996

Major Customers.Net Sales include sales under prime contracts and subcontracts to the U.S. government, primarily related to Pratt & Whitney, Hamilton Sundstrand and Sikorsky products, as follows:

(Dollars in millions)	2011		2010		2009
Pratt & Whitney	$	3,696	$	4,081	$	3,942
Hamilton Sundstrand		1,043		1,137		1,230
Sikorsky		4,967		4,529		3,979
Other		125		153		127
	$	9,831	$	9,900	$	9,278