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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): January 31, 2024
____________________________________ 
logo_otis (2).jpg
OTIS WORLDWIDE CORPORATION
(Exact name of registrant as specified in its charter)
____________________________________ 
Delaware001-3922183-3789412
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(I.R.S. Employer
Identification No.)
One Carrier Place
Farmington, Connecticut 06032
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code
(860) 674-3000
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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company   ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ¨





Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock ($0.01 par value)OTISNew York Stock Exchange
0.318% Notes due 2026OTIS/26New York Stock Exchange
0.934% Notes due 2031OTIS/31New York Stock Exchange
Section 2—Financial Information
Item 2.02. Results of Operations and Financial Condition.
On January 31, 2024, Otis Worldwide Corporation (“Otis”) issued a press release announcing its fourth quarter and year ended December 31, 2023 results.
The press release issued January 31, 2024 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 Otis 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
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.




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.

OTIS WORLDWIDE CORPORATION
(Registrant)
Date: January 31, 2024
By:
/s/ ANURAG MAHESHWARI
Anurag Maheshwari
Executive Vice President & Chief Financial Officer


Exhibit 99
OTIS REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS

Delivers strong fourth quarter and full year results; announces 2024 outlook with solid sales and earnings growth with continued Service momentum

•4Q Net sales up 5.3% and organic sales up 3.8%; GAAP EPS up 11.3% and adjusted EPS up 16.0%
•4Q New Equipment orders up 3%; backlog up 2%
•4Q Mod orders up 11%; backlog up 15%
•Maintenance portfolio units up 4.2%
•FY Net sales up 3.8% and organic sales up 5.6%; GAAP EPS up 14.5% and adjusted EPS up 11.7%
•FY GAAP cash flow from operations of $1.6 billion; free cash flow of $1.49 billion; adjusted free cash flow of $1.53 billion
•Announcing 2024 outlook* with organic sales up 3 to 5%, adjusted earnings per share of $3.80 to $3.90 and adjusted free cash flow of approximately $1.6 billion

FARMINGTON, Conn., January 31, 2024 – Otis Worldwide Corporation (NYSE:OTIS) reported full year net sales of $14.2 billion with 5.6% organic growth. GAAP earnings per share (EPS) increased 14.5% to $3.39 and adjusted EPS increased 11.7% to $3.54.

"Otis delivered excellent fourth quarter results with mid-teens adjusted EPS growth, the third consecutive quarter of high-single digit Service organic sales growth, and a return to New Equipment orders growth," said Chair, CEO & President Judy Marks. "Full year 2023 was marked by mid-single digit organic sales growth, operating profit margin expansion and low teens adjusted EPS growth. We expanded adjusted Service operating profit margin by 50 basis points for the second consecutive year, accelerated growth in our industry-leading maintenance portfolio to 4.2%, grew both our New Equipment and modernization backlogs and distributed approximately $1.35 billion to shareholders including $800 million through share repurchases. We carry positive momentum into 2024 as we continue to execute on our long-term strategy to create value for our customers, colleagues, and shareholders."
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Key Figures
($ millions, except per share amounts)Quarter Ended December 31,Year Ended December 31,
20232022Y/YY/Y (CFX)20232022Y/YY/Y (CFX)
Net sales$3,620$3,4395.3 %3.9 %$14,209$13,6853.8 %5.0 %
Adjusted net sales$3,620$3,4395.3 %3.9 %$14,209$13,5794.6 %5.8 %
Organic sales growth3.8 %5.6 %
GAAP
Operating profit$522$491$31$2,186$2,033$153
Operating profit margin14.4%14.3%10 bps15.4%14.9%50 bps
Net income$323$2978.8%$1,406$1,25312.2%
Earnings per share$0.79$0.7111.3%$3.39$2.9614.5%
Adjusted non-GAAP comparison
Operating profit$566$505$61$52$2,269$2,126$143$166
Operating profit margin15.6%14.7%90 bps16.0%15.7%30 bps
Net income$356$31612.7%$1,469$1,3439.4%
Earnings per share$0.87$0.7516.0%$3.54$3.1711.7%

Fourth quarter net sales of $3.6 billion increased 5.3% versus the prior year, driven by a 3.8% increase in organic sales and a 1.4% benefit from foreign exchange. New Equipment organic sales were roughly flat and Service organic sales were up 6.8%.

Fourth quarter GAAP operating profit of $522 million increased $31 million and adjusted operating profit of $566 million increased $61 million. Excluding a $9 million benefit from foreign exchange, adjusted operating profit at constant currency increased $52 million, driven by strong performance in both segments. GAAP operating profit margin expanded 10 basis points to 14.4% and adjusted operating profit margin expanded 90 bps to 15.6%, driven by favorable segment performance and mix.

GAAP EPS of $0.79 increased 11.3% compared to the prior year and adjusted EPS increased 16.0% to $0.87, as strong operational performance, effective tax rate improvement, and a lower share count contributed to 12 cents of adjusted EPS growth.

Full year net sales increased 3.8%, driven by a 5.6% increase in organic sales, partially offset by a 1.2% headwind from foreign exchange. GAAP and adjusted operating profit increased $153 million and $143 million, respectively, as Service segment operating profit growth was partially offset by foreign exchange headwinds. GAAP operating profit margin expanded 50 basis points and GAAP EPS increased 14.5%. Adjusted operating profit margin expanded 30 basis points, as a result of strong Service segment performance and favorable mix, partially offset by headwinds in corporate. Adjusted EPS increased 11.7%, driven by operating profit growth, a reduction in the effective tax rate, lower noncontrolling interest and benefits from a lower share count.


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New Equipment
Quarter Ended December 31,Year Ended December 31,
($ millions)20232022Y/YY/Y (CFX)20232022Y/YY/Y (CFX)
Net sales$1,466$1,4610.3 %(0.1)%$5,812$5,864(0.9)%1.2 %
Adjusted net sales$1,466$1,4610.3 %(0.1)%$5,812$5,7780.6 %2.7 %
Organic sales growth(0.2)%2.6 %
GAAP
Operating profit$81 $66 $15 $358 $358 $0 
Operating profit margin5.5 %4.5 %100 bps6.2 %6.1 %10 bps
Adjusted non-GAAP comparison
Operating profit$89 $72 $17 $20 $381 $381 $0 $26 
Operating profit margin6.1 %4.9 %120 bps6.6 %6.6 %0 bps

In the fourth quarter, net sales of $1.5 billion were roughly flat versus the prior year including a modest benefit from foreign exchange. Organic sales were roughly flat in the quarter as the decline in China was offset by growth in the Americas and Asia Pacific.

GAAP operating profit increased $15 million to $81 million and adjusted operating profit increased $17 million to $89 million due to improved productivity, favorable pricing, and commodity tailwinds, partially offset by unfavorable regional and product mix and higher SG&A expense. GAAP operating profit margin expanded 100 basis points and adjusted operating profit margin expanded 120 basis points.

Fourth quarter New Equipment orders were up 3% at constant currency driven by low teens growth in EMEA, mid single digit growth in the Americas, and low single digit growth in Asia Pacific, partially offset by mid single digit declines in China. Full year New Equipment orders were down 4% with mid teens growth in Asia Pacific and low single digit growth in EMEA more than offset by mid single digit declines in China and low teens declines in the Americas. GAAP New Equipment backlog was up 2% at actual and constant currency.

Full year net sales decreased 0.9% with a 2.6% increase in organic sales partially offset by a 2.1% headwind from foreign exchange. GAAP operating profit was flat and GAAP operating profit margin expanded 10 basis points. Adjusted operating profit was flat as higher volume, favorable price and productivity and commodity tailwinds were offset by unfavorable regional and product mix, higher SG&A expense and foreign exchange headwinds. Adjusted operating profit margin was flat.
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Service
Quarter Ended December 31,Year Ended December 31,
($ millions)20232022Y/YY/Y (CFX)20232022Y/YY/Y (CFX)
Net sales$2,154$1,9788.9 %7.0 %$8,397$7,8217.4 %7.8 %
Adjusted net sales$2,154$1,9788.9 %7.0 %$8,397$7,8017.6 %8.1 %
Organic sales growth6.8 %7.7 %
GAAP
Operating profit$497$461$36$1,972$1,789$183
Operating profit margin23.1 %23.3 %(20) bps23.5 %22.9 %60 bps
Adjusted non-GAAP comparison
Operating profit$518$472$46$33$2,014$1,832$182$178
Operating profit margin24.0 %23.9 %10 bps24.0 %23.5 %50 bps

In the fourth quarter, net sales of $2.2 billion increased 8.9%, driven by a 6.8% increase in organic sales and a 1.9% benefit from foreign exchange. Organic maintenance and repair sales increased 6.8% and organic modernization sales increased 7.0%.

GAAP operating profit of $497 million increased $36 million and adjusted operating profit of $518 million increased $33 million at constant currency due to higher volume, favorable maintenance pricing and productivity, partially offset by annual wage inflation and higher material costs. GAAP operating profit margin contracted 20 basis points and adjusted operating profit margin expanded 10 basis points.

Full year net sales increased 7.4% driven by a 7.7% increase in organic sales partially offset by a 0.4% headwind from foreign exchange. GAAP operating profit increased $183 million and GAAP operating profit margin expanded 60 basis points. Adjusted operating profit increased $178 million at constant currency driven by higher volume, favorable pricing and productivity, partially offset by annual wage inflation and higher material costs. Adjusted operating profit margin expanded 50 basis points.

Cash flow
Quarter Ended December 31,Year Ended December 31,
($ millions)20232022Y/Y20232022Y/Y
Cash flow from operations$597 $464 $133 $1,627 $1,560 $67 
Free cash flow$555 $430 $125 $1,489 $1,445 $44 
Adjusted free cash flow$573 $430 $143 $1,534 $1,463 $71 

Fourth quarter cash from operations of $597 million increased $133 million, free cash flow of $555 million increased $125 million and adjusted free cash flow of $573 million increased $143 million versus prior year from higher net income and favorable working capital.

Full year cash from operations of $1.6 billion increased $67 million, free cash flow of $1.49 billion increased $44 million and adjusted free cash flow of $1.53 billion increased $71 million driven by higher net income from operations, partially offset by changes in working capital.
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2024 Outlook*
Otis is announcing its full year outlook:
•Net sales of $14.5 to $14.8 billion, up 2 to 4%
•Organic sales up 3 to 5%
◦Organic New Equipment sales approximately flat
◦Organic Service sales up 6 to 7%
•Adjusted operating profit of $2.40 to $2.45 billion, up $150 to $190 million at constant currency; up $125 to $175 million at actual currency
•Adjusted EPS of $3.80 to $3.90, up 7 to 10%; adjusted effective tax rate of approximately 25.5%
•Adjusted free cash flow of approximately $1.6 billion

*Note: When we provide outlook for organic sales, adjusted operating profit, adjusted EPS, adjusted effective tax rate and adjusted free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See “Use and Definitions of Non-GAAP Financial Measures” below for additional information.

About Otis
Otis is the world's leading elevator and escalator manufacturing, installation and service company. We move 2.3 billion people a day and maintain approximately 2.3 million customer units worldwide, the industry's largest maintenance portfolio. Headquartered in Connecticut, USA, Otis is 71,000 people strong, including 42,000 field professionals, all committed to meeting the diverse needs of our customers and passengers in more than 200 countries and territories worldwide. For more information, visit www.otis.com and follow us on LinkedIn, Instagram, Facebook and Twitter @OtisElevatorCo.

Use and Definitions of Non-GAAP Financial Measures
Otis Worldwide Corporation (“Otis”) reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures (referenced in this press release) to the corresponding amounts prepared in accordance with GAAP appears in the attached tables. These tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

Adjusted net sales, organic sales, adjusted selling, general and administrative (“SG&A”) expense, adjusted operating profit, adjusted net interest expense, adjusted net income, adjusted diluted earnings per share (“EPS”), adjusted effective tax rate, constant currency, free cash flow and adjusted free cash flow are non-GAAP financial measures.

Adjusted net sales represents net sales (a GAAP measure), excluding significant items of a non-recurring and/or nonoperational nature (“other significant items”).
5


Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items. Management believes organic sales is a useful measure in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.

Adjusted SG&A expense represents SG&A expense (a GAAP measure), excluding restructuring costs and other significant items.

Adjusted general corporate expenses and other represents general corporate expenses and other (a GAAP measure), excluding restructuring costs and other significant items.

Adjusted operating profit represents income from continuing operations (a GAAP measure), excluding restructuring costs and other significant items.

Adjusted net interest expense represents net interest expense (a GAAP measure), adjusted for the impacts of non-recurring acquisition related financing costs and related net interest expense pending the completion of a transaction.

The adjusted effective tax rate represents the effective tax rate (a GAAP measure) adjusted for other significant items and the tax impact of restructuring costs and other significant items.

Adjusted net income represents net income attributable to Otis Worldwide Corporation (a GAAP measure), excluding restructuring costs and other significant items, including related tax effects. Adjusted EPS represents diluted earnings per share attributable to common shareholders (a GAAP measure), adjusted for the per share impact of restructuring and other significant items, including related tax effects.

Management believes that adjusted net sales, organic sales, adjusted SG&A, adjusted general corporate expenses and other, adjusted operating profit, adjusted net interest expense, adjusted net income, adjusted EPS, the adjusted effective tax rate and adjusted RPO are useful measures in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.

Additionally, GAAP financial results include the impact of changes in foreign currency exchange rates ("AFX"). We use the non-GAAP measure “at constant currency” or “CFX” to show changes in our financial results without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, income statement results are translated in U.S. dollars at the average exchange rate for the period presented. Management believes that this non-GAAP measure is useful in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.

Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Otis’ ability to fund its activities, including the financing of acquisitions, debt service, repurchases of common stock and distribution of earnings to shareholders. Free cash flow should not be
6

considered an alternative to, or more meaningful than, net cash flows provided by operating activities, or any other measure of liquidity presented in accordance with GAAP.

Adjusted free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures, adjusted to exclude certain items management believes affect the comparability of operating results. Management believes adjusted free cash flow is a useful measure of liquidity that provides investors additional information regarding the Company’s ability to fund its activities, including the financing of acquisitions, debt service, repurchases of common stock and distribution of earnings to shareholders. Adjusted free cash flow should not be considered an alternative to, or more meaningful than, net cash flows provided by operating activities, or any other measure of liquidity presented in accordance with GAAP.

When we provide our expectations for adjusted net sales, organic sales, adjusted operating profit, adjusted net interest expense, adjusted net income, adjusted effective tax rate, adjusted EPS, free cash flow and adjusted free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected diluted EPS from continuing operations, operating profit, the effective tax rate, net sales and expected cash flow from operations) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.


7

Cautionary Statement

This communication contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management’s current expectations or plans for Otis’ future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “outlook,” “medium-term,” “near-term,” “confident,” "goals" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, dividends, share repurchases, tax rates, research & development spend, restructuring actions (including UpLift), credit ratings, net indebtedness and other measures of financial performance or potential future plans, strategies or transactions, or statements that relate to climate change and our intent to achieve certain environmental, social and governance targets or goals, including operational impacts and costs associated therewith, and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, Otis claims the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which Otis and its businesses operate and any changes therein, including financial market conditions, fluctuations in commodity prices and other inflationary pressures, interest rates and foreign currency exchange rates, levels of end market demand in construction, pandemic health issues (including COVID-19 and variants thereof ), natural disasters, whether as a result of climate change or otherwise, and the financial condition of Otis’ customers and suppliers; (2) the effect of changes in political conditions in the U.S., including in connection with the results of the 2024 elections or otherwise, and other countries in which Otis and its businesses operate, including the effects of the ongoing conflict between Russia and Ukraine, the war between Israel and Hamas, and tensions between the U.S. and China, on general market conditions, commodity costs, global trade policies and related sanctions and export controls, and currency exchange rates in the near term and beyond; (3) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (4) future levels of indebtedness, capital spending and research and development spending; (5) future availability of credit and factors that may affect such availability or costs thereof, including credit market conditions and Otis’ capital structure; (6) the timing and scope of future repurchases of Otis’ 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; (7) fluctuations in prices and delays and disruption in delivery of materials and services from suppliers, whether as a result of changes in general economic conditions, geopolitical conflicts or otherwise; (8) cost reduction or containment actions, restructuring costs and related savings and other consequences thereof, including with respect to UpLift; (9) new business and investment opportunities; (10) the outcome of legal proceedings, investigations and other contingencies; (11) pension plan assumptions and future contributions; (12) the impact of the negotiation of collective bargaining agreements and labor disputes and labor inflation in the markets in which Otis and its businesses operate globally; (13) 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 Otis and its businesses operate; (14) the ability of Otis to retain and hire key personnel; (15)
8

the scope, nature, impact or timing of acquisition and divestiture activity, the integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; (16) the determination by the Internal Revenue Service and other tax authorities that the distribution or certain related transactions should be treated as taxable transactions in connection with the separation (the “Separation”) of Otis and Carrier Global Corporation ("Carrier") from United Technologies Corporation (now known as RTX Corporation (“RTX”); and (17) our obligations and disputes that have or may hereafter arise under the agreements we entered into with RTX and Carrier in connection with the Separation. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary from those stated in forward-looking statements, see Otis’ registration statement on Form 10 and the reports of Otis on Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC from time to time. Any forward-looking statement speaks only as of the date on which it is made, and Otis assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

9


Otis Worldwide Corporation
Condensed Consolidated Statements of Operations

Quarter Ended
December 31,
Year Ended
December 31,
(Unaudited)(Unaudited)
(amounts in millions, except per share amounts)2023202220232022
Net Sales$3,620 $3,439 $14,209 $13,685 
Costs and Expenses:
Cost of products and services sold2,552 2,479 10,016 9,765 
Research and development37 38 144 150 
Selling, general and administrative498 448 1,884 1,763 
Total Costs and Expenses3,087 2,965 12,044 11,678 
Other income (expense), net(11)17 21 26 
Operating profit522 491 2,186 2,033 
Non-service pension cost (benefit)4 — 5 2 
Interest expense (income), net41 36 150 143 
Net income before income taxes477 455 2,031 1,888 
Income tax expense133 137 533 519 
Net income344 318 1,498 1,369 
Less: Noncontrolling interest in subsidiaries' earnings21 21 92 116 
Net income attributable to Otis Worldwide Corporation$323 $297 $1,406 $1,253 
Earnings Per Share of Common Stock:
Basic$0.79 $0.71 $3.42 $2.98 
Diluted$0.79 $0.71 $3.39 $2.96 
Weighted Average Number of Shares Outstanding:
Basic shares408.0 415.8 411.4 420.0 
Diluted Shares410.9 418.7 414.6 423.0 



10

Otis Worldwide Corporation
Segment Net Sales and Operating Profit

Quarter Ended
December 31,
Quarter Ended
December 31,
(Unaudited)(Unaudited)
(dollars in millions)20232022
Reported AdjustedReportedAdjusted
Net Sales
New Equipment$1,466 $1,466 $1,461 $1,461 
Service2,154 2,154 1,978 1,978 
Consolidated Net Sales$3,620 $3,620 $3,439 $3,439 
Operating Profit
New Equipment$81 $89 $66 $72 
Service497 518 461 472 
Segment Operating Profit578 607 527 544 
General corporate expenses and other(56)(41)(36)(39)
Consolidated Operating Profit$522 $566 $491 $505 
Segment Operating Profit Margin
New Equipment5.5 %6.1 %4.5 %4.9 %
Service23.1 %24.0 %23.3 %23.9 %
Total Operating Profit Margin14.4 %15.6 %14.3 %14.7 %

Year Ended
December 31,
Year Ended
December 31,
(Unaudited)(Unaudited)
(dollars in millions)20232022
ReportedAdjustedReportedAdjusted
Net Sales
New Equipment$5,812 $5,812 $5,864 $5,778 
Service8,397 8,397 7,821 7,801 
Consolidated Net Sales$14,209 $14,209 $13,685 $13,579 
Operating Profit
New Equipment$358 $381 $358 $381 
Service1,972 2,014 1,789 1,832 
Segment Operating Profit2,330 2,395 2,147 2,213 
General corporate expenses and other(144)(126)(114)(87)
Consolidated Operating Profit$2,186 $2,269 $2,033 $2,126 
Segment Operating Profit Margin
New Equipment6.2 %6.6 %6.1 %6.6 %
Service23.5 %24.0 %22.9 %23.5 %
Total Operating Profit Margin15.4 %16.0 %14.9 %15.7 %



11

Otis Worldwide Corporation
Reconciliation of Reported (GAAP) to Adjusted Operating Profit & Operating Profit Margin
Quarter Ended December 31,
Year Ended December 31,
(Unaudited)(Unaudited)
(dollars in millions)2023
2022
2023
2022
New Equipment
GAAP Net sales$1,466 $1,461 $5,812 $5,864 
Russia sales— — — (86)
Adjusted New Equipment Sales$1,466 $1,461 $5,812 $5,778 
GAAP Operating profit$81 $66 $358 $358 
UpLift restructuring7 — 7 — 
Other restructuring1 5 16 23 
Russia operations— — — (3)
Russia conflict-related charges— 1 — 3 
Adjusted New Equipment Operating Profit$89 $72 $381 $381 
Reported New Equipment Operating Profit Margin5.5 %4.5 %6.2 %6.1 %
Adjusted Operating Profit Margin6.1 %4.9 %6.6 %6.6 %
Service
GAAP Net sales$2,154 $1,978 $8,397 $7,821 
Russia sales— — — (20)
Adjusted Service Sales$2,154 $1,978 $8,397 $7,801 
GAAP Operating profit$497 $461 $1,972 $1,789 
UpLift restructuring16 — 16 — 
Other restructuring5 10 26 37 
Russia operations— — — 4 
Russia conflict-related charges— 1 — 2 
Adjusted Service Operating Profit$518 $472 $2,014 $1,832 
Reported Service Operating Profit Margin23.1 %23.3 %23.5 %22.9 %
Adjusted Operating Profit Margin24.0 %23.9 %24.0 %23.5 %
General Corporate Expenses and Other
GAAP General corporate expenses and other$(56)$(36)$(144)$(114)
UpLift restructuring2 — 2 — 
UpLift transformation costs12 — 16 — 
Russia other expense (income)— — — 4 
Russia sale and conflict-related charges— (2)— 23 
One-time separation costs, net and other1 (1)— — 
Adjusted General Corporate Expenses and Other$(41)$(39)$(126)$(87)
Total Otis
GAAP Operating profit$522 $491 $2,186 $2,033 
UpLift restructuring25 — 25 — 
Other restructuring6 15 42 60 
UpLift transformation costs12 — 16 — 
Russia operations— — — 5 
Russia sale and conflict-related charges— — — 28 
One-time separation costs, net and other1 (1)— — 
Adjusted Total Operating Profit$566 $505 $2,269 $2,126 
Reported Total Operating Profit Margin14.4 %14.3 %15.4 %14.9 %
Adjusted Total Operating Profit Margin15.6 %14.7 %16.0 %15.7 %

12

Otis Worldwide Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Net Income, Earnings Per Share, and Effective Tax Rate

Quarter Ended
December 31,
Year Ended
December 31,
(Unaudited)(Unaudited)
(dollars in millions, except per share amounts)2023
2022
2023
2022
Adjusted Operating Profit$566 $505 $2,269 $2,126 
Non-service pension cost (benefit)4 — 5 2 
Net interest expense 1
41 36 150 139 
Adjusted income from operations before income taxes521 469 2,114 1,985 
Income tax expense133 137 533 519 
Tax impact on restructuring and non-recurring items11 (5)20 5 
Non-recurring tax items— — — 2 
Adjusted net income from operations 377 337 1,561 1,459 
Noncontrolling interest 21 21 92 116 
Adjusted net income attributable to common shareholders$356 $316 $1,469 $1,343 
GAAP income attributable to common shareholders$323 $297 $1,406 $1,253 
UpLift restructuring25 — 25 — 
Other restructuring6 15 42 60 
UpLift transformation costs12 — 16 — 
Zardoya Otis Tender Offer finance costs 1
— — — 5 
Russia operations — — — 4 
Russia sale and conflict-related charges— — — 28 
One-time separation costs, net and other1 (1)— — 
Tax effects of restructuring, non-recurring items and other adjustments(11)5 (20)(5)
Non-recurring tax items— — — (2)
Adjusted net income attributable to common shareholders$356 $316 $1,469 $1,343 
Diluted Earnings Per Share$0.79 $0.71 $3.39 $2.96 
  Impact to diluted earnings per share0.08 0.04 0.15 0.21 
Adjusted Diluted Earnings Per Share$0.87 $0.75 $3.54 $3.17 
Effective Tax Rate27.9 %30.1 %26.2 %27.5 %
  Impact of adjustments on effective tax rate(0.3)%(2.0)%(0.1)%(1.0)%
Adjusted Effective Tax Rate27.6 %28.1 %26.1 %26.5 %


1 Otis incurred interest costs associated with financing the Zardoya Otis Tender Offer. Net interest expense for the year ended December 31, 2022 is reflected as adjusted without those costs.


13

Otis Worldwide Corporation
Components of Changes in Net Sales

Quarter Ended December 31, 2023 Compared with Quarter Ended December 31, 2022
Factors Contributing to Total % Change in Net Sales
OrganicFX
Translation		Acquisitions /
Divestitures, net		Total
New Equipment(0.2)%0.4%0.1%0.3%
Service6.8%1.9%0.2%8.9%
Maintenance and Repair6.8%2.0%0.2%9.0%
Modernization7.0%1.4%—%8.4%
Total Net Sales3.8%1.4%0.1%5.3%
Year Ended December 31, 2023 Compared with Year Ended December 31, 2022
Factors Contributing to Total % Change in Net Sales
OrganicFX
Translation		Acquisitions /
Divestitures, net		Total
New Equipment2.6%(2.1)%(1.4)%(0.9)%
Service7.7%(0.4)%0.1%7.4%
Maintenance and Repair7.8%(0.3)%—%7.5%
Modernization7.3%(0.8)%0.4%6.9%
Total Net Sales5.6%(1.2)%(0.6)%3.8%

Components of New Equipment Backlog
December 31, 2023
Y/Y Growth %
New Equipment Backlog increase at actual currency2%
Foreign exchange impact to New Equipment Backlog—%
New Equipment Backlog increase at constant currency2%


Components of Modernization Backlog

December 31, 2023
Y/Y Growth %
Modernization Backlog increase at actual currency15%
Foreign exchange impact to Modernization Backlog—%
Modernization Backlog increase at constant currency15%

14

Otis Worldwide Corporation
Reconciliation of Adjusted Operating Profit at Constant Currency

Quarter Ended December 31, 2023 Compared with Quarter Ended December 31, 2022
(dollars in millions)20232022Y/Y
New Equipment
Adjusted Operating Profit$89 $72 $17 
Impact of foreign exchange3 — 3 
Adjusted Operating Profit at constant currency$92 $72 $20 
Service
Adjusted Operating Profit$518 $472 $46 
Impact of foreign exchange(13)— (13)
Adjusted Operating Profit at constant currency$505 $472 $33 
Otis Consolidated
Adjusted Operating Profit$566 $505 $61 
Impact of foreign exchange(9)— (9)
Adjusted Operating Profit at constant currency$557 $505 $52 
Year Ended December 31, 2023 Compared with Year Ended December 31, 2022
(dollars in millions)20232022Y/Y
New Equipment
Adjusted Operating Profit$381 $381 $— 
Impact of foreign exchange26 — 26 
Adjusted Operating Profit at constant currency$407 $381 $26 
Service
Adjusted Operating Profit$2,014 $1,832 $182 
Impact of foreign exchange(4)— (4)
Adjusted Operating Profit at constant currency$2,010 $1,832 $178 
Otis Consolidated
Adjusted Operating Profit$2,269 $2,126 $143 
Impact of foreign exchange23 — 23 
Adjusted Operating Profit at constant currency$2,292 $2,126 $166 



15

Otis Worldwide Corporation
Consolidated Balance Sheet

December 31, 2023December 31, 2022
(dollars in millions)(Unaudited)
Assets
Cash and cash equivalents$1,274 $1,189 
Accounts receivable, net 3,538 3,357 
Contract assets717 664 
Inventories612 617 
Other current assets259 316 
Total Current Assets6,400 6,143 
Future income tax benefits323 285 
Fixed assets, net727 719 
Operating lease right-of-use assets416 449 
Intangible assets, net335 369 
Goodwill1,588 1,567 
Other assets328 287 
Total Assets$10,117 $9,819 
Liabilities and (Deficit) Equity
Short-term borrowings and current portion of long-term debt$32 $670 
Accounts payable1,878 1,717 
Accrued liabilities1,873 1,794 
Contract liabilities2,696 2,662 
Total Current Liabilities6,479 6,843 
Long-term debt6,866 6,098 
Future pension and postretirement benefit obligations462 392 
Operating lease liabilities292 315 
Future income tax obligations 245 279 
Other long-term liabilities493 556 
Total Liabilities14,837 14,483 
Redeemable noncontrolling interest135 135 
Shareholders' Equity (Deficit):
Common Stock and additional paid-in-capital213 162 
Treasury Stock(2,382)(1,575)
Accumulated deficit(2,005)(2,865)
Accumulated other comprehensive income (loss)(750)(592)
Total Shareholders' Equity (Deficit)(4,924)(4,870)
Noncontrolling interest69 71 
Total Equity (Deficit)(4,855)(4,799)
Total Liabilities and Equity (Deficit)$10,117 $9,819 


16

Otis Worldwide Corporation
Condensed Consolidated Statement of Cash Flows
Quarter Ended December 31,Year Ended December 31,
(Unaudited)(Unaudited)
(dollars in millions)2023202220232022
Operating Activities:
Net income from operations$344 $318 $1,498 $1,369 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization48 46 193 191 
Deferred income tax expense (benefit)(27)(22)(61)(16)
Stock compensation cost15 26 64 67 
Change in:
Accounts receivable, net(25)(138)(239)(309)
Contract assets and liabilities, current(98)(105)(30)38 
Inventories23 15 15 (65)
Other current assets42 66 38 52 
Accounts payable187 135 152 272 
Accrued liabilities99 82 33 (84)
Pension contributions (16)(6)(48)(34)
Other operating activities, net5 47 12 79 
Net cash flows provided by (used in) operating activities597 464 1,627 1,560 
Investing Activities:
Capital expenditures(42)(34)(138)(115)
Acquisitions of businesses and intangible assets, net of cash(9)(8)(36)(46)
Dispositions of businesses, net of cash— — — 61 
Proceeds from sale of (investments in) equity securities, net6 — 4 (7)
Other investing activities, net(6)(53)(13)74 
Net cash flows provided by (used in) investing activities(51)(95)(183)(33)
Financing Activities:
Increase (decrease) in short-term borrowings, net(23)33 (113)113 
Proceeds from the issuance of long-term debt— — 747 — 
Payment of debt issuance costs— — (6)— 
Repayment of long-term debt(534)— (534)(500)
Dividends paid on Common Stock(139)(120)(539)(465)
Repurchases of Common Stock(225)(150)(800)(850)
Dividends paid to noncontrolling interest(9)(11)(85)(118)
Acquisition of Zardoya Otis shares— — — (1,802)
Other financing activities, net(2)(2)(20)(30)
Net cash flows provided by (used in) financing activities(932)(250)(1,350)(3,652)
Summary of Activity:
Net cash provided by (used in) operating activities597 464 1,627 1,560 
Net cash provided by (used in) investing activities(51)(95)(183)(33)
Net cash provided by (used in) financing activities(932)(250)(1,350)(3,652)
Effect of foreign exchange rate changes on cash and cash equivalents25 34 (9)(157)
Net increase (decrease) in cash, cash equivalents and restricted cash(361)153 85 (2,282)
Cash, cash equivalents and restricted cash, beginning of period1,641 1,042 1,195 3,477 
Cash, cash equivalents and restricted cash, end of period1,280 1,195 1,280 1,195 
Less: Restricted cash6 6 6 6 
Cash and cash equivalents, end of period$1,274 $1,189 $1,274 $1,189 

17




Otis Worldwide Corporation
Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Adjusted Free Cash Flow (Non-GAAP)

Quarter Ended December 31,Year Ended December 31,
(Unaudited)(Unaudited)
(dollars in millions)2023202220232022
Net cash flows provided by operating activities (GAAP)$597 $464 $1,627 $1,560 
Capital expenditures(42)(34)(138)(115)
Free Cash Flow (Non-GAAP)555 430 1,489 1,445 
Adjustments for:
UpLift restructuring payments12 — 12 — 
UpLift transformation payments6 — 8 — 
Separation-related payments 1
— — 25 18 
Adjusted Free Cash Flow (Non-GAAP)$573 $430 $1,534 $1,463 

1 In April of 2022 and 2023, we made payments to RTX Corporation (our former parent) in accordance with the Separation tax agreement. These annual payments are anticipated to conclude in 2026.

18
v3.24.0.1
Cover
Jan. 31, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Jan. 31, 2024
Entity Registrant Name OTIS WORLDWIDE CORPORATION
Entity Central Index Key 0001781335
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 001-39221
Entity Tax Identification Number 83-3789412
Entity Address, Address Line One One Carrier Place
Entity Address, City or Town Farmington
Entity Address, State or Province CT
Entity Address, Postal Zip Code 06032
City Area Code 860
Local Phone Number 674-3000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Common Stock [Member]  
Document Information [Line Items]  
Title of 12(b) Security Common Stock ($0.01 par value)
Trading Symbol OTIS
Security Exchange Name NYSE
0.318% Notes due 2026 [Member]  
Document Information [Line Items]  
Title of 12(b) Security 0.318% Notes due 2026
Trading Symbol OTIS/26
Security Exchange Name NYSE
0.934% Notes due 2031 [Member]  
Document Information [Line Items]  
Title of 12(b) Security 0.934% Notes due 2031
Trading Symbol OTIS/31
Security Exchange Name NYSE
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