Note 19: Segment Financial Data

12 Months Ended

Dec. 31, 2012

Notes to Consolidated Financial Statements [Abstract]

Note 19: Segment Financial Data

Our operations for the periods presented herein are classified intofive 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.

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 & Securityproducts and related servicesincludeHVAC 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, industrial gas turbines, 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.

Effective July 1, 2012, the auxiliary power unit business (APU) of the UTC Aerospace Systems business segment was transferred to the Pratt & Whitney business segment. The APU business designs and manufactures a variety of products for commercial and military aircraft. Annual sales for the APU business are approximately $600 million. The reclassification has been made prospectively; prior year results have not been restated for the transfer of the business.

UTC Aerospace Systemsprovides aerospace products and aftermarket services for commercial, military, business jet and general aviation customers worldwide. Products include electric power generation, management and distribution systems, flight control systems, engine control systems, intelligence, surveillance and reconnaissance systems, engine components, environmental control systems, fire protection and detection systems, propeller systems, aircraft nacelles, and interior, actuation, landing and electronic systemsprovides aerospace products and aftermarket services for commercial, military, business jet and general aviation customers worldwide. Products include power generation, management and distribution systems, flight systems, engine control systems, environmental control systems, fire protection and detection systems, propeller systems, intelligence, surveillance and reconnaissance systems, engine components, aircraft nacelles, interior, actuation, landing and electronic systems.

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

We have reported our financial and operational results for the periods presented herein under the five principal segments noted above, consistent with how we have reviewed our business operations for decision-making purposes, resource allocation and performance assessment during 2012.

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)							2012		2011		2010		2012		2011		2010
Otis							$	12,056	$	12,437	$	11,579	$	2,512	$	2,815	$	2,575
UTC Climate, Controls & Security								17,090		18,864		17,876		2,425		2,212		1,776
Pratt & Whitney								13,964		12,711		12,150		1,589		1,867		1,885
UTC Aerospace Systems								8,334		4,760		4,399		944		759		654
Sikorsky								6,791		7,355		6,684		712		840		716
Total segment								58,235		56,127		52,688		8,182		8,493		7,606
Eliminations and other								(527)		(373)		(413)		(72)		(228)		(331)
General corporate expenses								-		-		-		(426)		(419)		(377)
Consolidated							$	57,708	$	55,754	$	52,275	$	7,684	$	7,846	$	6,898
	Total Assets						Capital Expenditures						Depreciation & Amortization
(Dollars in millions)	2012		2011		2010		2012		2011		2010		2012		2011		2010
Otis	$	8,866	$	8,717	$	8,097	$	141	$	75	$	55	$	220	$	223	$	211
UTC Climate, Controls & Security		22,253		21,630		21,837		265		305		234		418		432		457
Pratt & Whitney		15,938		10,705		10,139		462		290		321		324		332		340
UTC Aerospace Systems		35,589		8,593		8,540		367		163		117		412		172		172
Sikorsky		4,975		4,628		4,521		94		92		108		85		84		83
Total segment		87,621		54,273		53,134		1,329		925		835		1,459		1,243		1,263
Eliminations and other		1,788		7,179		5,359		60		4		3		65		20		37
Consolidated	$	89,409	$	61,452	$	58,493	$	1,389	$	929	$	838	$	1,524	$	1,263	$	1,300

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)		2012		2011		2010		2012		2011		2010		2012		2011		2010
United States Operations		$	32,175	$	28,993	$	27,547	$	3,663	$	4,264	$	3,839	$	4,311	$	2,974	$	3,013
International Operations
	Europe		11,823		12,344		11,678		2,100		2,089		1,858		1,804		1,210		1,282
	Asia Pacific		8,733		9,016		7,658		1,648		1,429		1,152		947		883		839
	Other		4,964		5,376		5,369		772		711		757		1,122		760		804
Eliminations and other			13		25		23		(499)		(647)		(708)		334		374		342
Consolidated		$	57,708	$	55,754	$	52,275	$	7,684	$	7,846	$	6,898	$	8,518	$	6,201	$	6,280

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

(Dollars in millions)	2012		2011		2010
Europe	$	3,117	$	2,284	$	1,902
Asia Pacific		2,998		2,448		2,641
Other		3,086		2,989		2,559
	$	9,201	$	7,721	$	7,102

Major Customers.Net Sales include sales under prime contracts and subcontracts to the U.S. Government, primarily related to Pratt & Whitney, UTC Aerospace Systems and Sikorsky products, as follows:

(Dollars in millions)	2012		2011		2010
Pratt & Whitney	$	3,718	$	2,995	$	3,339
UTC Aerospace Systems		1,742		1,021		1,115
Sikorsky		4,512		4,967		4,529
Other		126		125		151
	$	10,098	$	9,108	$	9,134