UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________ 
FORM 8-K
____________________________________ 

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 22, 2014
____________________________________ 
UNITED TECHNOLOGIES CORPORATION
(Exact name of registrant as specified in its charter)
____________________________________ 

Delaware
1-812
06-0570975
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
One Financial Plaza
Hartford, Connecticut 06101
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code
(860) 728-7000
N/A
(Former name or former address, if changed since last report)
____________________________________ 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




 
Section 2—Financial Information
Item 2.02. Results of Operations and Financial Condition.
On July 22, 2014, United Technologies Corporation (“UTC” or the “the Company”) issued a press release announcing its second quarter 2014 results.
The press release issued July 22, 2014 is furnished herewith as Exhibit No. 99 to this Report, and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Section 9—Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number
Exhibit Description
99
Press release, dated July 22, 2014, issued by United Technologies Corporation.





 
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
UNITED TECHNOLOGIES CORPORATION
 
(Registrant)
 
 
 
Date: July 22, 2014
By:
/S/ GREGORY J. HAYES        
 
 
Gregory J. Hayes
 
 
Senior Vice President and Chief Financial Officer




 
EXHIBIT INDEX
 
Exhibit
Number
Exhibit Description
99
Press release, dated July 22, 2014, issued by United Technologies Corporation.







Exhibit 99

UTC REPORTS SECOND QUARTER 2014 RESULTS

•
EPS of $1.84, up 8% (up 12% ex. restructuring and one-time items)
•
Sales of $17.2 billion, including 3% organic growth
•
Increases lower end of 2014 EPS range, now expects EPS of $6.75 to $6.85

HARTFORD, Conn., July 22, 2014 - United Technologies Corp. (NYSE:UTX) reported second quarter earnings per share of $1.84 and net income attributable to common shareowners of $1.7 billion, both up 8 percent over the year ago quarter. Restructuring costs were offset by other net favorable one-time items, which include the Canadian Maritime Helicopter Program (CMHP) charge in the current quarter. Earnings per share in the year ago quarter included $0.05 of favorable one-time items net of restructuring costs. Excluding these items in both quarters, earnings per share increased 12 percent year over year.
Sales of $17.2 billion increased 7 percent, reflecting the benefit of organic growth (3 points) and a cumulative adjustment for the CMHP (5 points) partially offset by net divestitures (1 point). Second quarter segment operating profit decreased 15 percent over the prior year quarter, including the CMHP adjustment. Excluding restructuring costs and net one-time items, segment operating profit grew 8 percent with 90 basis points of operating margin expansion.
“Our focus on growth opportunities and execution in our core markets resulted in another solid quarter,” said Louis Chênevert, UTC Chairman & Chief Executive Officer. “We saw a fourth consecutive quarter of organic sales growth, along with strong margin expansion.”
Otis new equipment orders increased 3 percent over the year ago second quarter at constant currency, led by 44 percent growth in North America. Equipment orders at UTC Climate, Controls & Security increased 2 percent organically. Large commercial engine spares orders were down 6 percent at Pratt & Whitney and commercial spares orders increased 28 percent at UTC Aerospace Systems.
“With earnings up 11 percent, excluding the impact of restructuring and one-time items, UTC delivered a strong first half of the year,” said Chênevert. “Our solid backlogs, organic growth trends, and focus on execution give us confidence to increase the lower end of our earnings per share range. We now expect earnings per share of $6.75 to $6.85, up from $6.65 to $6.85 previously.”
Cash flow from operations was $1.7 billion and capital expenditures were $406 million in the quarter. Share repurchase was $335 million. As a result of increased working capital investment to support the aerospace upcycle, the company now anticipates 2014 cash flow from operations less capital expenditures to range from 90 to 100 percent of net income attributable to common shareowners. In addition, UTC now expects share repurchase of $1.25 billion and acquisitions of less than $1 billion for the year, from the previous expectation of $1 billion each.     




United Technologies Corp., based in Hartford, Connecticut, provides high technology products and services to the building and aerospace industries. Additional information, including a webcast, is available on the Internet at http://www.utc.com. To learn more about UTC, visit the website or follow the company on Twitter: @UTC
All financial results and projections reflect continuing operations unless otherwise noted. The accompanying tables include information integral to assessing the company’s financial position, operating performance, and cash flow, including a reconciliation of differences between non-GAAP measures used in this release and the comparable financial measures calculated in accordance with generally accepted accounting principles in the United States.
This press release includes statements that constitute “forward-looking statements” under the securities laws. Forward-looking statements often contain words such as “believe,” “expect,” “plans,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “confident” and similar terms. Forward-looking statements may include, among other things, statements relating to future and estimated sales, earnings, cash flow, charges, expenditures, share repurchases and other measures of financial performance. All forward-looking statements involve risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties include, without limitation, the effect of economic conditions in the markets in which we operate, including financial market conditions, fluctuation in commodity prices, interest rates and foreign currency exchange rates; future levels of research and development spending; levels of end market demand in construction and in the aerospace industry; levels of air travel; financial difficulties of commercial airlines; the impact of government budget and funding decisions on the economy; changes in government procurement priorities and funding; weather conditions and natural disasters; delays and disruption in delivery of materials and services from suppliers; company and customer directed cost reduction efforts and restructuring costs and consequences thereof; the impact of acquisitions, dispositions, joint ventures and similar transactions; the development and production of new products and services; the impact of diversification across product lines, regions and industries; the outcome of legal proceedings, investigations and other contingencies; pension plan assumptions and future contributions; the effect of changes in tax, environmental and other laws and regulations and political conditions; and other factors beyond our control. The level of share repurchases depends upon market conditions and the level of other investing activities and uses of cash. The forward-looking statements speak only as of the date of this press release and we undertake no obligation to update or revise any forward-looking statements as of a later date. For additional information identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see our reports on Forms 10-K, 10-Q and 8-K filed with the SEC from time to time, including, but not limited to, the information included in UTC's Forms 10-K and 10-Q under the headings “Business,” “Risk Factors,” “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” and in the notes to the financial statements included in UTC's Forms 10-K and 10-Q.



UTC-IR
# # #










United Technologies Corporation
Condensed Consolidated Statement of Operations
 
 
Quarter Ended June 30,
 
Six Months Ended June 30,
 
 
(Unaudited)
 
(Unaudited)
(Millions, except per share amounts)
2014
 
2013
 
2014
 
2013
Net Sales
$
17,191

 
$
16,006

 
$
31,936

 
$
30,405

Costs and Expenses:
 
 
 
 
 
 
 
 
Cost of products and services sold
12,931

 
11,552

 
23,621

 
22,017

 
Research and development
666

 
631

 
1,290

 
1,241

 
Selling, general and administrative
1,623

 
1,737

 
3,219

 
3,364

 
Total Costs and Expenses
15,220

 
13,920

 
28,130

 
26,622

Other income, net
384

 
421

 
647

 
730

Operating profit
2,355

 
2,507

 
4,453

 
4,513

 
Interest expense, net
206

 
217

 
431

 
453

Income from continuing operations before income taxes
2,149

 
2,290

 
4,022

 
4,060

 
Income tax expense
359

 
645

 
926

 
1,063

Income from continuing operations
1,790

 
1,645

 
3,096

 
2,997

 
Less: Noncontrolling interest in subsidiaries' earnings from continuing operations
110

 
93

 
203

 
175

Income from continuing operations attributable to common shareowners
1,680

 
1,552

 
2,893

 
2,822

Discontinued Operations:
 
 
 
 
 
 
 
 
Income from operations
—

 
43

 
—

 
63

 
Loss on disposal
—

 
(25
)
 
—

 
(40
)
 
Income tax expense
—

 
(10
)
 
—

 
(19
)
Income from discontinued operations attributable to common shareowners
—


8


—


4

Net income attributable to common shareowners
$
1,680

 
$
1,560

 
$
2,893

 
$
2,826

Earnings Per Share of Common Stock - Basic:
 
 
 
 
 
 
 
 
From continuing operations attributable to common shareowners
$
1.87

 
$
1.72

 
$
3.21

 
$
3.13

 
From discontinued operations attributable to common shareowners
—

 
0.01

 
—

 
0.01

Earnings Per Share of Common Stock - Diluted:
 
 
 
 
 
 
 
 
From continuing operations attributable to common shareowners
$
1.84

 
$
1.70

 
$
3.16

 
$
3.09

 
From discontinued operations attributable to common shareowners
—

 
0.01

 
—

 
0.01

Weighted Average Number of Shares Outstanding:
 
 
 
 
 
 
 
 
Basic shares
900

 
901

 
900

 
901

 
Diluted shares
915

 
914

 
915

 
914

As described on the following pages, consolidated results for the quarters and six months ended June 30, 2014 and 2013 include restructuring costs and non-recurring items that management believes should be considered when evaluating the underlying financial performance.
See accompanying Notes to Condensed Consolidated Financial Statements.




United Technologies Corporation
Segment Net Sales and Operating Profit
 
Quarter Ended June 30,
 
Six Months Ended June 30,
 
(Unaudited)
 
(Unaudited)
(Millions)
2014
 
2013
 
2014
 
2013
Net Sales
 
 
 
 
 
 
 
Otis
$
3,365

 
$
3,138

 
$
6,320

 
$
5,952

UTC Climate, Controls & Security
4,429

 
4,543

 
8,280

 
8,380

Pratt & Whitney
3,592

 
3,624

 
6,921

 
7,026

UTC Aerospace Systems
3,636

 
3,321

 
7,086

 
6,584

Sikorsky
2,384

 
1,566

 
3,745

 
2,815

Segment Sales
17,406

 
16,192

 
32,352

 
30,757

Eliminations and other
(215
)
 
(186
)
 
(416
)
 
(352
)
Consolidated Net Sales
$
17,191

 
$
16,006

 
$
31,936

 
$
30,405

 
 
 
 
 
 
 
 
Operating Profit
 
 
 
 
 
 
 
Otis
$
693

 
$
650

 
$
1,263

 
$
1,225

UTC Climate, Controls & Security
815

 
752

 
1,352

 
1,272

Pratt & Whitney
432

 
567

 
820

 
973

UTC Aerospace Systems
602

 
499

 
1,192

 
1,000

Sikorsky
(317
)
 
156

 
(231
)
 
246

Segment Operating Profit
2,225

 
2,624

 
4,396

 
4,716

Eliminations and other
249

 
4

 
288

 
25

General corporate expenses
(119
)
 
(121
)
 
(231
)
 
(228
)
Consolidated Operating Profit
$
2,355

 
$
2,507

 
$
4,453

 
$
4,513

Segment Operating Profit Margin
 
 
 
 
 
 
 
Otis
20.6
 %
 
20.7
%
 
20.0
 %
 
20.6
%
UTC Climate, Controls & Security
18.4
 %
 
16.6
%
 
16.3
 %
 
15.2
%
Pratt & Whitney
12.0
 %
 
15.6
%
 
11.8
 %
 
13.8
%
UTC Aerospace Systems
16.6
 %
 
15.0
%
 
16.8
 %
 
15.2
%
Sikorsky
(13.3
)%
 
10.0
%
 
(6.2
)%
 
8.7
%
Segment Operating Profit Margin
12.8
 %
 
16.2
%
 
13.6
 %
 
15.3
%

As described on the following pages, consolidated results for the quarters and six months ended June 30, 2014 and 2013 include restructuring costs and non-recurring items that management believes should be considered when evaluating the underlying financial performance.




United Technologies Corporation
Restructuring Costs and Non-Recurring Items Included in Consolidated Results
 
Quarter Ended June 30,
 
Six Months Ended June 30,
 
(Unaudited)
 
(Unaudited)
In Millions - Income (Expense)
2014
 
2013
 
2014
 
2013
Non-Recurring items included in Net Sales:
 
 
 
 
 
 
 
Sikorsky
$
830

 
$
—

 
$
830

 
$
—

 
 
 
 
 
 
 
 
Restructuring Costs included in Operating Profit:
 
 
 
 
 
 
 
Otis
$
(21
)
 
$
(39
)
 
$
(38
)
 
$
(49
)
UTC Climate, Controls & Security
(25
)
 
(16
)
 
(68
)
 
(38
)
Pratt & Whitney
(5
)
 
(93
)
 
(47
)
 
(100
)
UTC Aerospace Systems
(4
)
 
(33
)
 
(10
)
 
(41
)
Sikorsky
—

 
(9
)
 
(17
)
 
(14
)
Eliminations and other
—

 
—

 
—

 
—

 
(55
)
 
(190
)
 
(180
)
 
(242
)
Non-Recurring items included in Operating Profit:
 
 
 
 
 
 
 
UTC Climate, Controls & Security
—

 
—

 
—

 
38

Pratt & Whitney
(82
)
 
193

 
(82
)
 
193

Sikorsky
(466
)
 
—

 
(466
)
 
—

Eliminations and other
220

 
—

 
220

 
—

 
(328
)
 
193

 
(328
)
 
231

Total impact on Consolidated Operating Profit
(383
)
 
3

 
(508
)
 
(11
)
Non-Recurring items included in Interest Expense, Net
21

 
36

 
21

 
36

Tax effect of restructuring and non-recurring items above
108

 
(11
)
 
150

 
5

Non-Recurring items included in Income Tax Expense
253

 
22

 
253

 
117

Impact on Net Income from Continuing Operations Attributable to Common Shareowners
$
(1
)
 
$
50

 
$
(84
)
 
$
147

Impact on Diluted Earnings Per Share from Continuing Operations
$
—

 
$
0.05

 
$
(0.09
)
 
$
0.16







Details of the non-recurring items for the quarters and six months ended June 30, 2014 and 2013 above are as follows:
Quarter Ended June 30, 2014
Pratt & Whitney:
•
Approximately $60 million charge to adjust the fair value of a Pratt & Whitney joint venture investment.
•
Approximately $22 million charge for impairment of assets related to a joint venture.
Sikorsky:
•
A cumulative adjustment to record $830 million in sales and $438 million in losses based upon the change in estimate required for the contractual amendments signed with the Canadian Government on the Maritime Helicopter program.
•
Approximately $28 million charge for the impairment of a Sikorsky joint venture investment.
Eliminations & Other: Approximately $220 million gain on an agreement with a state taxing authority for the monetization of tax credits.
Interest Expense, Net: Approximately $21 million of favorable pre-tax interest adjustments, primarily related to the conclusion of the IRS's examination of the Company's 2009 and 2010 tax years.
Income Tax Expense: Approximately $253 million of favorable income tax adjustments related to the conclusion of the IRS's examination of the Company's 2009 and 2010 tax years, as well as the settlement of state income taxes related to the disposition of the Hamilton Sundstrand Industrials businesses.
Quarter Ended June 30, 2013
Pratt & Whitney: Approximately $193 million gain from the sale of the Pratt & Whitney Power Systems business. This gain was not reclassified to "Discontinued Operations" due to our expected level of continuing involvement in the business post disposition.
Interest Expense, Net: Approximately $36 million of favorable pre-tax interest adjustments related to settlements for the Company's tax years prior to 2006, as well as the conclusion of certain IRS examinations of 2009 and 2010 tax years.
Income Tax Expense: Approximately $22 million of favorable income tax adjustments related to the conclusion of certain IRS examinations of 2009 and 2010 tax years.
Quarter Ended March 31, 2013
UTC Climate, Controls & Security: Approximately $38 million net gain from UTC Climate, Controls & Security's ongoing portfolio transformation, primarily due to a gain on the sale of a business in Hong Kong.
Income Tax Expense:  Approximately $95 million of favorable income tax adjustments as a result of the enactment of the American Taxpayer Relief Act of 2012 in January 2013. The $95 million is primarily related to the retroactive extension of the research and development credit to 2012.




United Technologies Corporation
Segment Net Sales and Operating Profit Adjusted for Restructuring Costs and Non-Recurring Items (as reflected on the previous pages)

 
Quarter Ended June 30,
 
Six Months Ended June 30,
 
(Unaudited)
 
(Unaudited)
(Millions)
2014
 
2013
 
2014
 
2013
Net Sales
 
 
 
 
 
 
 
Otis
$
3,365

 
$
3,138

 
$
6,320

 
$
5,952

UTC Climate, Controls & Security
4,429

 
4,543

 
8,280

 
8,380

Pratt & Whitney
3,592

 
3,624

 
6,921

 
7,026

UTC Aerospace Systems
3,636

 
3,321

 
7,086

 
6,584

Sikorsky
1,554

 
1,566

 
2,915

 
2,815

Segment Sales
16,576

 
16,192

 
31,522

 
30,757

Eliminations and other
(215
)
 
(186
)
 
(416
)
 
(352
)
Consolidated Net Sales
$
16,361

 
$
16,006

 
$
31,106

 
$
30,405

 
 
 
 
 
 
 
 
Adjusted Operating Profit
 
 
 
 
 
 
 
Otis
$
714

 
$
689

 
$
1,301

 
$
1,274

UTC Climate, Controls & Security
840

 
768

 
1,420

 
1,272

Pratt & Whitney
519

 
467

 
949

 
880

UTC Aerospace Systems
606

 
532

 
1,202

 
1,041

Sikorsky
149

 
165

 
252

 
260

Segment Operating Profit
2,828

 
2,621

 
5,124

 
4,727

Eliminations and other
29

 
4

 
68

 
25

General corporate expenses
(119
)
 
(121
)
 
(231
)
 
(228
)
Adjusted Consolidated Operating Profit
$
2,738

 
$
2,504

 
$
4,961

 
$
4,524

Adjusted Segment Operating Profit Margin
 
 
 
 
 
 
 
Otis
21.2
%
 
22.0
%
 
20.6
%
 
21.4
%
UTC Climate, Controls & Security
19.0
%
 
16.9
%
 
17.1
%
 
15.2
%
Pratt & Whitney
14.4
%
 
12.9
%
 
13.7
%
 
12.5
%
UTC Aerospace Systems
16.7
%
 
16.0
%
 
17.0
%
 
15.8
%
Sikorsky
9.6
%
 
10.5
%
 
8.6
%
 
9.2
%
Adjusted Segment Operating Profit Margin
17.1
%
 
16.2
%
 
16.3
%
 
15.4
%





United Technologies Corporation
Condensed Consolidated Balance Sheet
 
June 30,
 
December 31,
 
2014
 
2013
(Millions)
(Unaudited)
 
(Unaudited)
Assets
 
 
 
Cash and cash equivalents
$
4,962

 
$
4,619

Accounts receivable, net
11,795

 
11,458

Inventories and contracts in progress, net
9,896

 
10,330

Other assets, current
2,988

 
3,035

Total Current Assets
29,641

 
29,442

Fixed assets, net
9,026

 
8,866

Goodwill
28,378

 
28,168

Intangible assets, net
15,715

 
15,521

Other assets
9,382

 
8,597

Total Assets
$
92,142

 
$
90,594

 
 
 
 
Liabilities and Equity
 
 
 
Short-term debt
$
2,235

 
$
500

Accounts payable
7,297

 
6,965

Accrued liabilities
14,798

 
15,335

Total Current Liabilities
24,330

 
22,800

Long-term debt
17,837

 
19,741

Other long-term liabilities
14,636

 
14,723

Total Liabilities
56,803

 
57,264

Redeemable noncontrolling interest
146

 
111

Shareowners' Equity:
 
 

Common Stock
14,939

 
14,638

Treasury Stock
(21,094
)
 
(20,431
)
Retained earnings
42,343

 
40,539

Accumulated other comprehensive loss
(2,403
)
 
(2,880
)
Total Shareowners' Equity
33,785

 
31,866

Noncontrolling interest
1,408

 
1,353

Total Equity
35,193

 
33,219

Total Liabilities and Equity
$
92,142

 
$
90,594

Debt Ratios:
 
 
 
Debt to total capitalization
36
%
 
38
%
Net debt to net capitalization
30
%
 
32
%

See accompanying Notes to Condensed Consolidated Financial Statements.




United Technologies Corporation
Condensed Consolidated Statement of Cash Flows
 
Quarter Ended June 30,
 
Six Months Ended June 30,
 
(Unaudited)
 
(Unaudited)
(Millions)
2014
 
2013
 
2014
 
2013
Operating Activities of Continuing Operations:
 
 
 
 
 
 
 
Income from continuing operations
$
1,790

 
$
1,645

 
$
3,096

 
$
2,997

Adjustments to reconcile net income from continuing operations to net cash flows provided by operating activities of continuing operations:
 
 
 
 
 
 
 
Depreciation and amortization
468

 
439

 
935

 
883

Deferred income tax (benefit) provision
(8
)
 
50

 
36

 
10

Stock compensation cost
58

 
63

 
118

 
133

Change in working capital
(478
)
 
(66
)
 
(999
)
 
(264
)
Global pension contributions
(60
)
 
(22
)
 
(144
)
 
(51
)
Other operating activities, net
(28
)
 
(170
)
 
35

 
(360
)
Net cash flows provided by operating activities of continuing operations
1,742

 
1,939

 
3,077

 
3,348

Investing Activities of Continuing Operations:
 
 
 
 
 
 
 
Capital expenditures
(406
)
 
(369
)
 
(739
)
 
(664
)
Acquisitions and dispositions of businesses, net
(34
)
 
511

 
72

 
1,233

Increase in collaboration intangible assets
(165
)
 
(143
)
 
(308
)
 
(300
)
Other investing activities, net
176

 
(230
)
 
102

 
(161
)
Net cash flows (used in) provided by investing activities of continuing operations
(429
)
 
(231
)
 
(873
)
 
108

Financing Activities of Continuing Operations:
 
 
 
 
 
 
 
Repayment of long-term debt, net
(179
)
 
(1,178
)
 
(173
)
 
(1,224
)
Increase (decrease) in short-term borrowings, net
219

 
27

 
19

 
(302
)
Dividends paid on Common Stock
(513
)
 
(465
)
 
(1,026
)
 
(930
)
Repurchase of Common Stock
(335
)
 
(335
)
 
(670
)
 
(670
)
Other financing activities, net
(41
)
 
(17
)
 
7

 
139

Net cash flows used in financing activities of continuing operations
(849
)
 
(1,968
)
 
(1,843
)
 
(2,987
)
Discontinued Operations:
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
—

 
21

 
—

 
(694
)
Net cash provided by investing activities
—

 
402

 
—

 
351

Net cash flows provided by (used in) discontinued operations
—

 
423

 
—

 
(343
)
Effect of foreign exchange rate changes on cash and cash equivalents
21

 
(35
)
 
(18
)
 
(53
)
Net increase in cash and cash equivalents
485

 
128

 
343

 
73

Cash and cash equivalents, beginning of period
4,477

 
4,781

 
4,619

 
4,836

Cash and cash equivalents of continuing operations, end of period
$
4,962

 
$
4,909

 
$
4,962

 
$
4,909

See accompanying Notes to Condensed Consolidated Financial Statements.




United Technologies Corporation
Free Cash Flow Reconciliation
 
Quarter Ended June 30,
 
(Unaudited)
(Millions)
2014
 
2013
 
 
 
 
 
 
Net income from continuing operations attributable to common shareowners
$
1,680

 
 
$
1,552

 
Net cash flows provided by operating activities of continuing operations
$
1,742

 
 
$
1,939

 
Net cash flows provided by operating activities of continuing operations as a percentage of net income from continuing operations attributable to common shareowners
 
104
 %
 
 
125
 %
Capital expenditures
(406
)
 
 
(369
)
 
Capital expenditures as a percentage of net income from continuing operations attributable to common shareowners
 
(24
)%
 
 
(24
)%
Free cash flow from continuing operations
$
1,336

 
 
$
1,570

 
Free cash flow from continuing operations as a percentage of net income from continuing operations attributable to common shareowners
 
80
 %
 
 
101
 %
 
 
 
 
 
 
 
Six Months Ended June 30,
 
(Unaudited)
(Millions)
2014
 
2013
 
 
 
 
 
 
Net income attributable to common shareowners from continuing operations
$
2,893

 
 
$
2,822

 
Net cash flows provided by operating activities of continuing operations
$
3,077

 
 
$
3,348

 
Net cash flows provided by operating activities of continuing operations as a percentage of net income attributable to common shareowners from continuing operations
 
106
 %
 
 
119
 %
Capital expenditures
(739
)
 
 
(664
)
 
Capital expenditures as a percentage of net income attributable to common shareowners from continuing operations
 
(26
)%
 
 
(24
)%
Free cash flow from continuing operations
$
2,338

 
 
$
2,684

 
Free cash flow from continuing operations as a percentage of net income attributable to common shareowners from continuing operations
 
81
 %
 
 
95
 %
Notes to Condensed Consolidated Financial Statements
(1)
Debt to total capitalization equals total debt divided by total debt plus equity. Net debt to net capitalization equals total debt less cash and cash equivalents divided by total debt plus equity less cash and cash equivalents.
(2)
Organic sales growth represents the total reported increase within the Corporation's ongoing businesses less the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and significant non-recurring items.
(3)
Free cash flow, which represents cash flow from operations less capital expenditures, is the principal cash performance measure used by UTC. Management believes free cash flow provides a relevant measure of liquidity and a useful basis for assessing UTC's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of UTC's common stock and distribution of earnings to shareholders. Other companies that use the term free cash flow may calculate it differently. The reconciliation of net cash flow provided by operating activities, prepared in accordance with generally accepted accounting principles, to free cash flow is shown above.



United Technologies (NYSE:UTX)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more United Technologies Charts.
United Technologies (NYSE:UTX)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more United Technologies Charts.