Document and Entity Information
Document and Entity Information - Jun. 30, 2015 - USD ($) | Total |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2015 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Entity Registrant Name | UNITED TECHNOLOGIES CORP /DE/ |
Entity Central Index Key | 101,829 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Public Float | $ 98,745,805,884 |
Entity Common Stock, Shares Outstanding | 890,597,745 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations Condensed Consolidated Statement of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue, Net [Abstract] | ||||
Product Sales | $ 12,046 | $ 13,017 | $ 22,419 | $ 23,709 |
Service Sales | 4,287 | 4,174 | 8,455 | 8,227 |
Total net sales | 16,333 | 17,191 | 30,874 | 31,936 |
Costs and Expenses [Abstract] | ||||
Cost of products sold | 9,020 | 10,182 | 16,850 | 18,263 |
Cost of services sold | 2,805 | 2,749 | 5,498 | 5,358 |
Research and development | 606 | 666 | 1,208 | 1,290 |
Selling, general and administrative | 1,543 | 1,623 | 3,106 | 3,219 |
Total costs and expenses | 13,974 | 15,220 | 26,662 | 28,130 |
Other income, net | 193 | 384 | 614 | 647 |
Operating profit | 2,552 | 2,355 | 4,826 | 4,453 |
Interest expense, net | 216 | 206 | 434 | 431 |
Income before income taxes | 2,336 | 2,149 | 4,392 | 4,022 |
Income tax expense | 684 | 359 | 1,242 | 926 |
Net Income | 1,652 | 1,790 | 3,150 | 3,096 |
Less: Noncontrolling interest in subsidiaries' earnings | 110 | 110 | 182 | 203 |
Net income attributable to common shareowners | $ 1,542 | $ 1,680 | $ 2,968 | $ 2,893 |
Earnings Per Share, Basic [Abstract] | ||||
Basic | $ 1.76 | $ 1.87 | $ 3.35 | $ 3.21 |
Earnings Per Share, Diluted [Abstract] | ||||
Diluted | $ 1.73 | $ 1.84 | $ 3.31 | $ 3.16 |
Condensed Consolidated Stateme3
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,652 | $ 1,790 | $ 3,150 | $ 3,096 |
Other comprehensive income (loss), net of tax | ||||
Other comprehensive income, net of tax | 634 | 538 | 44 | 470 |
Pension and post-retirement benefit plans | ||||
Pension and post-retirement benefit plans adjustments during the period | (7) | (18) | 45 | 1 |
Amortization of actuarial loss, prior service cost and transition obligation | 218 | 104 | 435 | 208 |
Total pension and post-retirement benefit plans, before tax | (211) | (86) | (480) | (209) |
Tax expense | (79) | (29) | (176) | (69) |
Pension and Other Postretirement Benefit Plans, Net of Tax | (132) | (57) | (304) | (140) |
Unrealized gain on available-for-sale securities | ||||
Unrealized holding gain (loss) arising during period | 1 | (44) | 87 | (12) |
Reclassification adjustments for gain included in Other income, net | 26 | 6 | 54 | 30 |
Total unrealized gain on available for-sale securities, before tax | (25) | (50) | 33 | (42) |
Tax benefit (expense) | (11) | (21) | 11 | (18) |
Total unrealized gain (loss) on available for-sale securities, net of tax | (14) | (29) | 22 | (24) |
Change in unrealized cash flow hedging | ||||
Unrealized cash flow hedging gain (loss) arising during the period | 62 | 102 | (122) | 22 |
Loss reclassified into Product Sales | (43) | (13) | (100) | (31) |
Total unrealized loss on cash-flow hedging, before tax | 105 | 115 | (22) | 53 |
Tax (expense) benefit | 29 | 29 | (7) | 17 |
Total unrealized loss on cash-flow hedging, net of tax | 76 | 86 | (15) | 36 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Foreign currency translation adjustments arising during period | 439 | 424 | (266) | 315 |
Reclassification adjustments for loss (gain) on sale of an investment in a foreign entity recognized in Other income, net | (1) | 0 | 1 | (3) |
Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Parent | 440 | 424 | (267) | 318 |
Comprehensive income | 2,286 | 2,328 | 3,194 | 3,566 |
Comprehensive income attributable to noncontrolling interest | 110 | 110 | 142 | 196 |
Comprehensive income attributable to common shareowners | $ 2,176 | $ 2,218 | $ 3,052 | $ 3,370 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 5,933 | $ 5,235 |
Accounts receivable, net | 11,516 | 11,317 |
Inventories and contracts in progress, net | 10,295 | 9,865 |
Future income tax benefits, current | 1,942 | 1,931 |
Other Assets, current | 983 | 1,410 |
Total Current Assets | 30,669 | 29,758 |
Customer financing assets | 1,037 | 978 |
Future income tax benefits | 1,378 | 1,494 |
Fixed assets | 19,963 | 19,764 |
Less: Accumulated depreciation | 10,697 | 10,488 |
Fixed assets, net | 9,266 | 9,276 |
Goodwill | 27,933 | 27,796 |
Intangible assets, net | 15,706 | 15,560 |
Other assets | 6,784 | 6,427 |
Total Assets | 92,773 | 91,289 |
Liabilities and Equity | ||
Short-term borrowings | 2,782 | 126 |
Accounts payable | 7,153 | 6,967 |
Accrued liabilities | 13,622 | 14,006 |
Long-term debt currently due | 172 | 1,796 |
Total Current Liabilities | 23,729 | 22,895 |
Long-term debt | 19,489 | 17,872 |
Future pension and postretirement benefit obligations | 6,373 | 6,683 |
Other long-term liabilities | 11,110 | 11,135 |
Total Liabilities | $ 60,701 | $ 58,585 |
Commitments and contingent liabilities (Note 13) | ||
Redeemable noncontrolling interest | $ 134 | $ 140 |
Shareowners' Equity: | ||
Common Stock | 15,141 | 15,300 |
Treasury Stock | 24,520 | 21,922 |
Retained earnings | 46,443 | 44,611 |
Unearned ESOP shares | 110 | 115 |
Accumulated other comprehensive loss | (6,577) | (6,661) |
Total Shareowners' Equity | 30,377 | 31,213 |
Noncontrolling interest | 1,561 | 1,351 |
Total Equity | 31,938 | 32,564 |
Total Liabilities and Equity | $ 92,773 | $ 91,289 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Activities: | ||
Net income | $ 3,150,000,000 | $ 3,096,000,000 |
Adjustments to reconcile income from continuing operations to net cash flows provided by operating activities of continuing operations: | ||
Depreciation and amortization | 958,000,000 | 935,000,000 |
Deferred income tax provision | 325,000,000 | 36,000,000 |
Stock compensation cost | 102,000,000 | 118,000,000 |
Change in: | ||
Accounts receivable | 359,000,000 | 312,000,000 |
Inventories and contracts in progress | 456,000,000 | 791,000,000 |
Other current assets | 146,000,000 | 47,000,000 |
Accounts payable and accrued liabilities | (83,000,000) | 151,000,000 |
Global pension contributions | 70,000,000 | 144,000,000 |
Other operating activities, net | 573,000,000 | (35,000,000) |
Net cash flows provided by operating activities | 2,848,000,000 | 3,077,000,000 |
Investing Activities: | ||
Capital expenditures | 706,000,000 | 739,000,000 |
Investments in businesses | 256,000,000 | 84,000,000 |
Dispositions of businesses | 166,000,000 | 156,000,000 |
Increase in customer financing assets, net | (95,000,000) | |
Decrease in customer financing assets, net | 73,000,000 | |
Increase in collaboration intangible assets | 247,000,000 | 308,000,000 |
Receipts from settlements of derivative contracts | 415,000,000 | 37,000,000 |
Other investing activities, net | (167,000,000) | 8,000,000 |
Net cash flows used in investing activities | (556,000,000) | (873,000,000) |
Financing Activities of Continuing Operations: | ||
Issuance (repayment) of long-term debt, net | 3,000,000 | (173,000,000) |
Increase in short-term borrowings, net | 2,645,000,000 | 19,000,000 |
Proceeds from Common Stock issued under employee stock plans | 26,000,000 | 113,000,000 |
Dividends paid on Common Stock | 1,096,000,000 | 1,026,000,000 |
Repurchase of Common Stock | 3,000,000,000 | 670,000,000 |
Other financing activities, net | (124,000,000) | (106,000,000) |
Net cash flows used in financing activities | (1,546,000,000) | (1,843,000,000) |
Effect of Exchange Rate on Cash and Cash Equivalents [Abstract] | ||
Effect of foreign exchange rate changes on cash and cash equivalents | (48,000,000) | (18,000,000) |
Net increase in cash and cash equivalents | 698,000,000 | 343,000,000 |
Cash and Cash Equivalents | 5,235,000,000 | 4,619,000,000 |
Cash and Cash Equivalents | $ 5,933,000,000 | $ 4,962,000,000 |
Introduction of Notes to Conden
Introduction of Notes to Condensed Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Introduction of Notes to Condensed Consolidated Financial Statements | The Condensed Consolidated Financial Statements at June 30, 2015 and for the quarters and six months ended June 30, 2015 and 2014 are unaudited, but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods. The results reported in these Condensed Consolidated Financial Statements should not necessarily be taken as indicative of results that may be expected for the entire year. Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. The financial information included herein should be read in conjunction with the financial statements and notes in our Annual Report to Shareowners ( 2014 Annual Report) incorporated by reference to our Annual Report on Form 10-K for calendar year 2014 ( 2014 Form 10-K). |
Acquisitions, Dispositions, Goo
Acquisitions, Dispositions, Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Acquisitions, Dispositions, Goodwill and Other Intangible Assets [Text Block] | Acquisitions, Dispositions, Goodwill and Other Intangible Assets Business Acquisitions and Dispositions. During the six months ended June 30, 2015 , our investment in business acquisitions was $273 million , including debt assumed of $17 million , and consisted of the acquisition of the majority interest in a UTC Climate, Controls & Security business and a number of small acquisitions, primarily in our commercial businesses. On July 20, 2015 , we announced an agreement to sell our Sikorsky Aircraft business (Sikorsky) to Lockheed Martin Corp. for $9 billion in cash, subject to a working capital and net indebtedness adjustment. The sale is expected to close by the end of 2015 or in the first quarter of 2016, and is subject to customary closing conditions, including regulatory approvals. As a result, Sikorsky will be reported in discontinued operations beginning in the third quarter of 2015. As a result of the 2012 transactions related to IAE International Aero Engines AG (IAE), 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 jet engine program through involvement with the collaborators. IAE retains limited equity with the primary economics of the V2500 program passed to the participants in the separate collaboration arrangement. As such, we have determined that IAE is a variable interest entity with Pratt & Whitney its primary beneficiary, and IAE has, therefore, been consolidated. The carrying amounts and classification of assets and liabilities for IAE in our Condensed Consolidated Balance Sheet as of June 30, 2015 are as follows: (Dollars in millions) Current assets $ 1,947 Noncurrent assets 963 Total assets $ 2,910 Current liabilities $ 1,946 Noncurrent liabilities 1,437 Total liabilities $ 3,383 Goodwill. Changes in our goodwill balances for the six months ended June 30, 2015 were as follows: (Dollars in millions) Balance as of Goodwill Resulting from Business Combinations Foreign Currency Translation and Other Balance as of Otis $ 1,664 $ 6 $ (67 ) $ 1,603 UTC Climate, Controls & Security 9,408 348 (121 ) 9,635 Pratt & Whitney 1,481 36 — 1,517 UTC Aerospace Systems 14,892 — (61 ) 14,831 Sikorsky 347 — (3 ) 344 Total Segments 27,792 390 (252 ) 27,930 Eliminations and other 4 — (1 ) 3 Total $ 27,796 $ 390 $ (253 ) $ 27,933 Intangible Assets. Identifiable intangible assets are comprised of the following: June 30, 2015 December 31, 2014 (Dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Service portfolios $ 2,006 $ (1,295 ) $ 2,103 $ (1,309 ) Patents and trademarks 389 (196 ) 361 (190 ) IAE collaboration 3,118 (45 ) 2,872 (20 ) Customer relationships and other 12,434 (2,835 ) 12,189 (2,623 ) 17,947 (4,371 ) 17,525 (4,142 ) Unamortized: Trademarks and other 2,130 — 2,177 — Total $ 20,077 $ (4,371 ) $ 19,702 $ (4,142 ) Customer relationship intangible assets include payments made to our customers to secure certain contractual rights. We amortize these intangible assets based on the underlying pattern of economic benefit, which may result in an amortization method other than straight-line. We classify amortization of such payments as a reduction of sales. The IAE collaboration intangible asset is amortized based upon the economic pattern of benefits as represented by the underlying cash flows. Amortization of intangible assets for the quarter and six months ended June 30, 2015 was $179 million and $358 million , respectively, compared with $178 million and $357 million for the same periods of 2014. The following is the expected amortization of intangible assets for the years 2015 through 2020 , which reflects an increase in expected amortization expense due to the pattern of economic benefit on certain aerospace intangible assets. (Dollars in millions) Remaining 2015 2016 2017 2018 2019 2020 Amortization expense $ 337 $ 714 $ 745 $ 771 $ 767 $ 777 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Quarter Ended June 30, Six Months Ended June 30, (Dollars in millions, except per share amounts; shares in millions) 2015 2014 2015 2014 Net income attributable to common shareowners $ 1,542 $ 1,680 $ 2,968 $ 2,893 Basic weighted average number of shares outstanding 877.3 900.1 884.8 900.3 Stock awards and equity units 12.1 14.6 13.0 14.5 Diluted weighted average number of shares outstanding 889.4 914.7 897.8 914.8 Earnings Per Share of Common Stock: Basic $ 1.76 $ 1.87 $ 3.35 $ 3.21 Diluted 1.73 1.84 3.31 3.16 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 be anti-dilutive. For both the quarter and six months ended June 30, 2015 , the number of stock awards excluded from the computation was approximately 0.4 million . There were no anti-dilutive stock awards excluded from the computation for the quarter and six months ended June 30, 2014 . |
Inventories and Contracts in Pr
Inventories and Contracts in Progress | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories and Contracts in Progress [Text Block] | Inventories and Contracts in Progress (Dollars in millions) June 30, 2015 December 31, 2014 Raw materials $ 2,011 $ 2,056 Work-in-process 3,881 3,596 Finished goods 4,116 3,776 Contracts in progress 8,579 8,189 18,587 17,617 Less: Progress payments, secured by lien, on U.S. Government contracts (498 ) (300 ) Billings on contracts in progress (7,794 ) (7,452 ) $ 10,295 $ 9,865 Inventory also includes capitalized contract development costs related to certain aerospace programs at UTC Aerospace Systems. As of June 30, 2015 and December 31, 2014 , these capitalized costs were $185 million and $141 million , respectively, which will be liquidated as production units are delivered to the customer. |
Borrowings and Lines of Credit
Borrowings and Lines of Credit | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings and Lines of Credit [Text Block] | Borrowings and Lines of Credit (Dollars in millions) June 30, 2015 December 31, 2014 Commercial paper $ 2,500 $ — Other borrowings 282 126 Total short-term borrowings $ 2,782 $ 126 At June 30, 2015 , 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 May 2019 . As of June 30, 2015 , there were no borrowings under 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. Effective June 30, 2015 we terminated a $1.5 billion revolving credit agreement, which had been entered into on March 11, 2015 . As of June 30, 2015 , our maximum commercial paper borrowing limit was $4.35 billion . We use our commercial paper borrowings for general corporate purposes, including the funding of potential acquisitions, debt refinancing, and repurchases of our common stock. Commercial paper borrowings as of June 30, 2015 were largely used to initially finance the accelerated share repurchase agreements entered into on March 13, 2015. See Note 11 for further discussion of these accelerated share repurchase agreements. Long-term debt consisted of the following: (Dollars in millions) June 30, 2015 December 31, 2014 LIBOR plus 0.500% floating rate notes due 2015 $ — $ 500 4.875% notes due 2015 — 1,200 5.375% notes due 2017 1 1,000 1,000 1.800% notes due 2017 1 1,500 1,500 1.778% junior subordinated notes due 2018 1,100 — 6.800% notes due 2018 4 99 99 6.125% notes due 2019 1 1,250 1,250 8.875% notes due 2019 271 271 4.500% notes due 2020 1 1,250 1,250 4.875% notes due 2020 4 171 171 8.750% notes due 2021 250 250 3.100% notes due 2022 1 2,300 2,300 1.550% junior subordinated notes due 2022 — 1,100 1.250% notes due 2023 (€750 million principal value) 2 841 — 7.100% notes due 2027 4 141 141 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 4 134 134 7.000% notes due 2038 4 159 159 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 3 850 — Project financing obligations 199 147 Other (including capitalized leases) 4 339 378 Total principal long-term debt 19,504 19,500 Other (fair market value adjustments and discounts) 4 157 168 Total long-term debt 19,661 19,668 Less: current portion 172 1,796 Long-term debt, net of current portion $ 19,489 $ 17,872 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 We may redeem these notes, in whole or in part, at our option at any time. If redeemed prior to February 22, 2023, 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 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. 3 We may redeem these notes, in whole or in part, at our option at any time. If redeemed prior to November 16, 2044, the redemption price in U.S. Dollars 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 a semiannual basis at the adjusted treasury rate plus 25 basis points. 4 Includes notes and remaining fair market value adjustments that were assumed as a part of the Goodrich acquisition on July 26, 2012. 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. To date, we have not directly received any proceeds from the optional remarketing of the 1.550% junior subordinated notes. On August 3, 2015, we expect to receive approximately $1.1 billion from the proceeds of the remarketing, and issue 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 notes maturing during the quarter ended June 30, 2015. We have an existing 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. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes 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, Canada, China, France, Germany, Hong Kong, Italy, Japan, Singapore, South Korea, Spain, 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 2003. 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. It is reasonably possible that over the next twelve months the amount of unrecognized tax benefits may change within a range of a net increase of $25 million to a net decrease of $460 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 13, 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. UTC tax years 2011 and 2012 are currently under review by the Examination Division of the Internal Revenue Service (IRS), which is expected to continue beyond the next 12 months. Goodrich Corporation tax years 2011 and 2012 through the date of acquisition by UTC are currently under review by the Examination Division of the IRS, which is also expected to continue beyond the next 12 months. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Defined Pension, Defined Contribution and Other Postretirement Benefit Plans [Abstract] | |
Employee Benefit Plans [Text Block] | Employee Benefit Plans Pension and Postretirement Plans. We sponsor both funded and unfunded domestic and foreign defined pension and other postretirement benefit plans, and defined contribution plans. Contributions to our plans were as follows: Quarter Ended June 30, Six Months Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Defined benefit plans $ 25 $ 60 $ 70 $ 144 Defined contribution plans $ 86 $ 80 $ 182 $ 170 There were no significant contributions to our domestic defined benefit pension plans in the quarters and six months ended June 30, 2015 and 2014 . The following table illustrates the components of net periodic benefit cost for our defined pension and other postretirement benefit plans: Pension Benefits Quarter Ended June 30, Other Postretirement Benefits Quarter Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Service cost $ 124 $ 122 $ 1 $ 1 Interest cost 350 380 8 10 Expected return on plan assets (565 ) (554 ) — — Amortization (2 ) (2 ) — — Recognized actuarial net loss (gain) 221 107 (1 ) (1 ) Net settlement and curtailment loss 3 6 — — Total net periodic benefit cost $ 131 $ 59 $ 8 $ 10 Pension Benefits Six Months Ended June 30, Other Postretirement Benefits Six Months Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Service cost $ 249 $ 244 $ 2 $ 2 Interest cost 701 760 16 20 Expected return on plan assets (1,134 ) (1,108 ) — — Amortization (5 ) (4 ) — — Recognized actuarial net loss (gain) 442 214 (2 ) (2 ) Net settlement and curtailment loss 9 6 — — Total net periodic benefit cost $ 262 $ 112 $ 16 $ 20 |
Restructuring and Other Costs
Restructuring and Other Costs | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Costs [Text Block] | Restructuring Costs During the six months ended June 30, 2015 , we recorded net pre-tax restructuring costs totaling $155 million for new and ongoing restructuring actions. We recorded charges in the segments as follows: (Dollars in millions) Otis $ 14 UTC Climate, Controls & Security 52 Pratt & Whitney 15 UTC Aerospace Systems 50 Sikorsky 23 Eliminations and other 1 Total $ 155 Restructuring charges incurred during the six months ended June 30, 2015 primarily relate to actions initiated during 2015 and 2014 , and were recorded as follows: (Dollars in millions) Cost of sales $ 87 Selling, general and administrative 68 Total $ 155 2015 Actions . During the six months ended June 30, 2015 , we recorded net pre-tax restructuring costs totaling $105 million , including $58 million in cost of sales and $47 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. We are targeting the majority of the remaining workforce and all facility related cost reduction actions for completion during 2015 and 2016 . No specific plans for significant other actions have been finalized at this time. The following table summarizes the accrual balance and utilization by cost type for the 2015 restructuring actions: (Dollars in millions) Severance Facility Exit, Lease Termination and Other Costs Total Restructuring accruals at April 1, 2015 $ 61 $ — $ 61 Net pre-tax restructuring costs 40 1 41 Utilization and foreign exchange (12 ) (1 ) (13 ) Balance at June 30, 2015 $ 89 $ — $ 89 The following table summarizes expected, incurred and remaining costs for the 2015 restructuring actions by segment: (Dollars in millions) Expected Costs Costs Incurred Quarter Ended March 31, 2015 Costs Incurred Quarter Ended June 30, 2015 Remaining Costs at June 30, 2015 Otis $ 11 $ — $ (4 ) $ 7 UTC Climate, Controls & Security 34 (16 ) (12 ) 6 Pratt & Whitney 3 (1 ) (2 ) — UTC Aerospace Systems 53 (47 ) 4 10 Sikorsky 49 — (26 ) 23 Eliminations and other 1 — (1 ) — Total $ 151 $ (64 ) $ (41 ) $ 46 2014 Actions . During the six months ended June 30, 2015 , we recorded net pre-tax restructuring costs totaling $48 million for restructuring actions initiated in 2014 , including $27 million in cost of sales and $21 million in selling, general and administrative expenses. The 2014 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 2014 restructuring actions: (Dollars in millions) Severance Asset Write-Downs Facility Exit, Lease Termination and Other Costs Total Restructuring accruals at April 1, 2015 $ 130 $ — $ 8 $ 138 Net pre-tax restructuring costs 21 1 3 25 Utilization and foreign exchange (28 ) (1 ) (5 ) (34 ) Balance at June 30, 2015 $ 123 $ — $ 6 $ 129 The following table summarizes expected, incurred and remaining costs for the 2014 restructuring actions by segment: (Dollars in millions) Expected Costs Costs Incurred in 2014 Costs Incurred Quarter Ended March 31, 2015 Costs Incurred Quarter Ended June 30, 2015 Remaining Costs at June 30, 2015 Otis $ 130 $ (98 ) $ (6 ) $ (4 ) $ 22 UTC Climate, Controls & Security 128 (86 ) (7 ) (18 ) 17 Pratt & Whitney 83 (64 ) (10 ) (2 ) 7 UTC Aerospace Systems 83 (72 ) — (1 ) 10 Sikorsky 20 (20 ) — — — Eliminations and other 5 (5 ) — — — Total $ 449 $ (345 ) $ (23 ) $ (25 ) $ 56 2013 Actions . As of June 30, 2015 , we have approximately $55 million of accrual balances remaining related to 2013 actions. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments [Text Block] | 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 $15.0 billion and $13.9 billion at June 30, 2015 and December 31, 2014 , respectively. The following table summarizes the fair value of derivative instruments as of June 30, 2015 and December 31, 2014 which consist solely of foreign exchange contracts: Asset Derivatives Liability Derivatives (Dollars in millions) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Derivatives designated as hedging instruments $ 18 $ 3 $ 272 $ 248 Derivatives not designated as hedging instruments 56 139 67 71 As discussed in Note 4, on May 22, 2015 we issued approximately €750 million of Euro-denominated debt, which qualifies as a net investment hedge against our investments in European businesses under ASC 815, Derivatives and Hedging. As of June 30, 2015, the net investment hedge is deemed to be effective as defined under ASC 815. The amount of gains and losses related to the Company's derivative financial instruments was as follows: Quarter Ended June 30, Six Months Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Gain (loss) recorded in Accumulated other comprehensive loss $ 62 $ 102 $ (122 ) $ 22 Loss reclassified from Accumulated other comprehensive loss into Product sales (effective portion) $ 43 $ 13 $ 100 $ 31 Assuming current market conditions continue, a $153 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 June 30, 2015 , all derivative contracts accounted for as cash flow hedges will mature by July 2017. The effect on the Condensed Consolidated Statement of Operations of foreign exchange contracts not designated as hedging instruments was as follows: Quarter Ended June 30, Six Months Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Gain (loss) recognized in Other income, net $ 12 $ (14 ) $ 30 $ 12 We received $415 million and $37 million from settlements of derivative contracts during the six months ended June 30, 2015 and 2014, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements The Fair Value Measurements and Disclosure Topic of the FASB ASC establishes a valuation hierarchy for disclosure of the inputs to the valuations used to measure fair value. A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1 - quoted prices in active markets for identical assets or liabilities; • Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly; and • Level 3 - unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and nonrecurring basis in our Condensed Consolidated Balance Sheet as of June 30, 2015 and December 31, 2014 : June 30, 2015 (Dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 920 $ 920 $ — $ — Derivative assets 74 — 74 — Derivative liabilities (339 ) — (339 ) — December 31, 2014 (Dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 961 $ 961 $ — $ — Derivative assets 142 — 142 — Derivative liabilities (319 ) — (319 ) — Nonrecurring fair value measurements: Business dispositions 3 — 3 — We have recorded net gains of approximately $126 million during the six months ended June 30, 2015 , 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. We recorded a charge of approximately $60 million during the six months ended June 30, 2014 , to adjust the fair value of a Pratt & Whitney joint venture investment. During the six months ended June 30, 2014 , we also recorded a charge of approximately $28 million to adjust the fair value of a Sikorsky joint venture investment. 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 June 30, 2015 , there were no significant transfers in and out of Level 1 and Level 2. As of June 30, 2015 , 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 in our Condensed Consolidated Balance Sheet at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 (Dollars in millions) Carrying Amount Fair Value Carrying Amount Fair Value Long-term receivables $ 147 $ 145 $ 214 $ 204 Customer financing notes receivable 342 337 262 260 Short-term borrowings (2,782 ) (2,782 ) (126 ) (126 ) Long-term debt (excluding capitalized leases) (19,634 ) (21,872 ) (19,634 ) (22,254 ) Long-term liabilities (264 ) (289 ) (80 ) (74 ) The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Condensed Consolidated Balance Sheet as of June 30, 2015 : (Dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 145 $ — $ 145 $ — Customer financing notes receivable 337 — 337 — Short-term borrowings (2,782 ) — (2,645 ) (137 ) Long-term debt (excluding capitalized leases) (21,872 ) — (21,480 ) (392 ) Long-term liabilities (289 ) — (289 ) — We had commercial aerospace financing and other contractual commitments totaling approximately $10.5 billion and $11.3 billion as of June 30, 2015 and December 31, 2014 , respectively, related to commercial aircraft and certain contractual rights to provide product on new aircraft platforms. Risks associated with changes in interest rates on these commitments are mitigated by the fact that interest rates are variable during the commitment term, and are set at the date of funding based on current market conditions, the fair value of the underlying collateral and the credit worthiness of the customers. As a result, the fair value of these financings is expected to equal the amounts funded. The fair value of these commitments is not readily determinable. |
Long-Term Financing Receivables
Long-Term Financing Receivables | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Long-Term Financing Receivables [Text Block] | Long-Term Financing Receivables Our long-term financing receivables primarily represent balances related to our aerospace businesses, such as long-term trade accounts receivable, leases receivable, and notes receivable. We also have other long-term receivables related to 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 primarily related to long-term aftermarket contracts, are principally amounts arising from the sale of goods and delivery of services with a contractual maturity date or realization period of greater than one year, and are recognized as Other assets in our Condensed 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 Condensed Consolidated Balance Sheet. The following table summarizes the balance by class of aerospace business-related long-term receivables as of June 30, 2015 and December 31, 2014 . (Dollars in millions) June 30, 2015 December 31, 2014 Long-term trade accounts receivable $ 1,154 $ 1,045 Notes and leases receivable 465 381 Total long-term receivables $ 1,619 $ 1,426 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 7% of our total long-term receivables were considered to bear high credit risk as of both June 30, 2015 and December 31, 2014 . For long-term trade accounts receivable, we evaluate credit risk and collectability individually to determine if an allowance is necessary. Our long-term receivables included in the table above are individually evaluated for recoverability, and we had valuation reserves of $17 million as of June 30, 2015 and $10 million as of December 31, 2014 . At June 30, 2015 and December 31, 2014 , 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 not recoverable. |
Shareowners' Equity and Noncont
Shareowners' Equity and Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareowners' Equity and Noncontrolling Interest [Text Block] | Shareowners' Equity and Noncontrolling Interest A summary of the changes in shareowners' equity and noncontrolling interest comprising total equity for the quarters and six months ended June 30, 2015 and 2014 is provided below: Quarter Ended June 30, 2015 2014 (Dollars in millions) Share-owners' Equity Non-controlling Interest Total Equity Share-owners' Non-controlling Interest Total Equity Equity, beginning of period $ 28,650 $ 1,517 $ 30,167 $ 32,317 $ 1,378 $ 33,695 Comprehensive income for the period: Net income 1,542 110 1,652 1,680 110 1,790 Total other comprehensive income 634 — 634 538 — 538 Total comprehensive income for the period 2,176 110 2,286 2,218 110 2,328 Common Stock issued under employee plans 112 — 112 125 — 125 Common Stock repurchased — — — (335 ) — (335 ) Dividends on Common Stock (543 ) — (543 ) (512 ) — (512 ) Dividends on ESOP Common Stock (18 ) — (18 ) (18 ) — (18 ) Dividends attributable to noncontrolling interest — (61 ) (61 ) — (44 ) (44 ) Purchase of subsidiary shares from noncontrolling interest — (4 ) (4 ) (10 ) (30 ) (40 ) Acquisition of noncontrolling interest — 1 1 — — — Disposition of noncontrolling interest — — — — 3 3 Redeemable noncontrolling interest 1 (1 ) — — (9 ) (9 ) Other (1 ) (1 ) (2 ) — — — Equity, end of period $ 30,377 $ 1,561 $ 31,938 $ 33,785 $ 1,408 $ 35,193 Six Months Ended June 30, 2015 2014 (Dollars in millions) Share-owners' Non-controlling Interest Total Equity Share-owners' Non-controlling Interest Total Equity Equity, beginning of period $ 31,213 $ 1,351 $ 32,564 $ 31,866 $ 1,353 $ 33,219 Comprehensive income for the period: Net income 2,968 182 3,150 2,893 203 3,096 Total other comprehensive (loss) income 84 (40 ) 44 477 (7 ) 470 Total comprehensive income for the period 3,052 142 3,194 3,370 196 3,566 Common Stock issued under employee plans 237 — 237 290 — 290 Common Stock repurchased (3,000 ) — (3,000 ) (670 ) — (670 ) Dividends on Common Stock (1,096 ) — (1,096 ) (1,026 ) — (1,026 ) Dividends on ESOP Common Stock (37 ) — (37 ) (36 ) — (36 ) Dividends attributable to noncontrolling interest — (116 ) (116 ) — (100 ) (100 ) Sale (purchase) of subsidiary shares from noncontrolling interest 11 10 21 (9 ) (6 ) (15 ) Acquisition of noncontrolling interest — 173 173 — — — Disposition of noncontrolling interest — (3 ) (3 ) — 3 3 Redeemable noncontrolling interest (3 ) 5 2 — (38 ) (38 ) Other — (1 ) (1 ) — — — Equity, end of period $ 30,377 $ 1,561 $ 31,938 $ 33,785 $ 1,408 $ 35,193 On March 13, 2015, we entered into accelerated share repurchase (ASR) agreements with each of Goldman, Sachs & Co. (Goldman Sachs) and Morgan Stanley & Co. LLC (Morgan Stanley) to repurchase shares of our common stock for an aggregate purchase price of $2.65 billion . Each ASR agreement provides for the repurchase of our common stock based on the average of the daily volume-weighted average prices of our common stock during the term of such ASR agreement, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreement. On March 13, 2015, we paid the aggregate purchase price and received an initial delivery of 18.6 million shares of common stock at a price of $121.24 per share, representing approximately 85% of the shares expected to be repurchased. The aggregate purchase price was recorded as a reduction to shareowners’ equity, consisting of a $2.25 billion increase in treasury stock and a $398 million decrease in additional paid-in capital. Upon final settlement of the ASR agreements, under certain circumstances, each of Goldman Sachs and Morgan Stanley may be required to deliver additional shares of common stock, or, under certain circumstances, we may be required to deliver shares of common stock or to make a cash payment, at our election, to Goldman Sachs and Morgan Stanley. The final settlement of the transactions under the ASR agreements is expected to occur no later than the fourth quarter of 2015 and may be accelerated at the option of Goldman Sachs or Morgan Stanley, as the case may be. Each of the ASR agreements contains customary terms for these types of transactions, including the mechanisms to determine the number of shares or the amount of cash that will be delivered at settlement, the required timing of delivery upon settlement, the specific circumstances under which adjustments may be made to the repurchase transactions, the specific circumstances under which the repurchase transactions may be canceled prior to the scheduled maturity and various acknowledgments, representations and warranties made by the Company and Goldman Sachs or Morgan Stanley, as applicable, to one another. A summary of the changes in each component of accumulated other comprehensive income (loss), net of tax for the quarters and six months ended June 30, 2015 and 2014 is provided below: (Dollars in millions) Foreign Currency Translation Defined Benefit Pension and Post- retirement Plans Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income Quarter Ended June 30, 2015 Balance at March 31, 2015 $ (1,718 ) $ (5,537 ) $ 344 $ (300 ) $ (7,211 ) Other comprehensive income (loss) before reclassifications, net 439 (4 ) 4 49 488 Amounts reclassified, pretax 1 218 (26 ) 43 236 Tax (benefit) expense reclassified — (82 ) 8 (16 ) (90 ) Balance at June 30, 2015 $ (1,278 ) $ (5,405 ) $ 330 $ (224 ) $ (6,577 ) Six Months Ended June 30, 2015 Balance at December 31, 2014 $ (1,051 ) $ (5,709 ) $ 308 $ (209 ) $ (6,661 ) Other comprehensive (loss) income before reclassifications, net (226 ) 31 58 (83 ) (220 ) Amounts reclassified, pretax (1 ) 435 (54 ) 100 480 Tax (benefit) expense reclassified — (162 ) 18 (32 ) (176 ) Balance at June 30, 2015 $ (1,278 ) $ (5,405 ) $ 330 $ (224 ) $ (6,577 ) (Dollars in millions) Foreign Currency Translation Defined Benefit Pension and Post- retirement Plans Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income Quarter Ended June 30, 2014 Balance at March 31, 2014 $ 71 $ (3,184 ) $ 301 $ (129 ) $ (2,941 ) Other comprehensive income (loss) before reclassifications, net 424 (12 ) (28 ) 80 464 Amounts reclassified, pretax — 104 (6 ) 13 111 Tax (benefit) expense reclassified — (35 ) 5 (7 ) (37 ) Balance at June 30, 2014 $ 495 $ (3,127 ) $ 272 $ (43 ) $ (2,403 ) Six Months Ended June 30, 2014 Balance at December 31, 2013 $ 170 $ (3,267 ) $ 296 $ (79 ) $ (2,880 ) Other comprehensive income (loss) before reclassifications, net 322 1 (6 ) 15 332 Amounts reclassified, pretax 3 208 (30 ) 31 212 Tax (benefit) expense reclassified — (69 ) 12 (10 ) (67 ) Balance at June 30, 2014 $ 495 $ (3,127 ) $ 272 $ (43 ) $ (2,403 ) Amounts reclassified related to our defined benefit pension and postretirement plans include amortization of prior service costs and transition obligations, 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 6 for additional details). All noncontrolling interests with redemption features, such as put options, that are not solely within our control (redeemable noncontrolling interests) are reported in the mezzanine section of the Condensed Consolidated Balance Sheet, between liabilities and equity, at the greater of redemption value or initial carrying value. A summary of the changes in redeemable noncontrolling interest recorded in the mezzanine section of the Condensed Consolidated Balance Sheet for the quarters and six months ended June 30, 2015 and 2014 is provided below: Quarter Ended June 30, Six Months Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Redeemable noncontrolling interest, beginning of period $ 135 $ 137 $ 140 $ 111 Net income 3 1 4 7 Foreign currency translation (2 ) 2 (9 ) — Dividends attributable to noncontrolling interest — — (3 ) (3 ) Purchase of subsidiary shares from noncontrolling interest (1 ) — (1 ) — Redeemable noncontrolling interest fair value adjustment (1 ) — 3 — Redeemable noncontrolling interest reclassification to noncontrolling interest — 6 — 31 Redeemable noncontrolling interest, end of period $ 134 $ 146 $ 134 $ 146 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. A summary of these changes in ownership interests in subsidiaries and the pro-forma effect on Net income attributable to common shareowners had they been recorded through net income for the quarters and six months ended June 30, 2015 and 2014 is provided below: Quarter Ended June 30, Six Months Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Net income attributable to common shareowners $ 1,542 $ 1,680 $ 2,968 $ 2,893 Transfers to noncontrolling interests: Increase in common stock for sale of subsidiary shares — — 23 4 Decrease in common stock for purchase of subsidiary shares — (10 ) (12 ) (13 ) Net income attributable to common shareowners after transfers to noncontrolling interests $ 1,542 $ 1,670 $ 2,979 $ 2,884 |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2015 | |
Service and Product Warranties and Product Performance Guarantees [Abstract] | |
Guarantees [Text Block] | Guarantees We extend a variety of financial, market value and product performance guarantees to third parties. There have been no material changes to guarantees outstanding since December 31, 2014 . The changes in the carrying amount of service and product warranties and product performance guarantees for the six months ended June 30, 2015 and 2014 are as follows: (Dollars in millions) 2015 2014 Balance as of January 1 $ 1,313 $ 1,360 Warranties and performance guarantees issued 132 121 Settlements made (141 ) (168 ) Other (19 ) (9 ) Balance as of June 30 $ 1,285 $ 1,304 |
Contingent Liabilities
Contingent Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities [Text Block] | Contingent Liabilities Summarized below are the matters previously described in Note 17 of the Notes to the Consolidated Financial Statements in our 2014 Annual Report, incorporated by reference in our 2014 Form 10-K, updated as applicable. 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. 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 in our 2014 Annual Report, we have accrued for the costs of environmental remediation activities and periodically reassess these amounts. We believe that the likelihood of incurring losses materially in excess of amounts accrued is remote. Additional information pertaining to environmental matters is included in Note 1 to the Consolidated Financial Statements in our 2014 Annual Report. Government. 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. 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 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. Some of these audit reports involved substantial amounts. We have made voluntary refunds in those cases we believe appropriate, have settled some allegations and continue to litigate certain cases. 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. F100 Engine Litigation As previously disclosed, the United States Government sued us in 1999 in the United States District Court for the Southern District of Ohio, claiming that Pratt & Whitney violated the civil False Claims Act and common law. The claims relate to the “Fighter Engine Competition” between Pratt & Whitney's F100 engine and General Electric's F110 engine. The government alleged that it overpaid for F100 engines under contracts awarded by the U.S. Air Force in fiscal years 1985 through 1990 because Pratt & Whitney inflated its estimated costs for some purchased parts and withheld data that would have revealed the overstatements. At trial, which ended in April 2005, the government claimed Pratt & Whitney's liability to be approximately $624 million. On August 1, 2008, the trial court held that the Air Force had not suffered any actual damages because Pratt & Whitney had made significant price concessions after the alleged overstatements were made. However, the trial court judge found that Pratt & Whitney violated the False Claims Act due to inaccurate statements contained in its 1983 initial engine pricing proposal. In the absence of actual damages, the trial court awarded the government the maximum civil penalty of approximately $7 million, or $10,000 for each of the 709 invoices Pratt & Whitney submitted in 1989 and later under the contracts. In September 2008, both the government and UTC appealed the decision to the United States Court of Appeals for the Sixth Circuit. In November 2010, the Sixth Circuit affirmed Pratt & Whitney's liability for the civil penalty under the False Claims Act, but remanded the case to the trial court for further proceedings on the issues of False Claims Act damages and common law liability and damages. On June 18, 2012, the trial court found that Pratt & Whitney had breached obligations imposed by common law based on the same conduct with respect to which the court previously found liability under the False Claims Act. Under the common law claims, the U.S. Air Force seeks damages for events occurring before March 3, 1989, which are not recoverable under the False Claims Act. On June 17, 2013, the trial court awarded the government approximately $473 million in damages and penalties, plus prejudgment interest in an amount to be determined. On July 1, 2013, the trial court, after determining the amount of prejudgment interest, entered judgment in favor of the government in the amount of approximately $664 million. The trial court also awarded post-judgment interest on the full amount of the judgment to accrue from July 2, 2013, at the federal variable interest rate determined pursuant to 28 U.S.C. § 1961. The judgment included four different components: (1) common law damages of approximately $109 million; (2) prejudgment interest on common law damages of approximately $191 million; (3) False Claims Act treble damages of approximately $357 million; and (4) penalties of approximately $7 million. The penalty component of the judgment previously was affirmed by the United States Court of Appeals in 2010. We filed an appeal from the judgment to the United States Court of Appeals for the Sixth Circuit on August 26, 2013. On April 6, 2015, the Sixth Circuit reversed the trial court’s decision and vacated the prior damages award, noting that the government did not prove any damages. The Court rejected as a matter of law the evidence submitted by the government on damages and remanded the case to the trial court to decide in the first instance whether the government should have another opportunity to prove that it suffered any actual damages. We continue to believe that the government suffered no actual damages as a result of the inaccurate statements made in 1983, and continue not to accrue a reserve beyond the approximately $7 million of penalties referenced above and post-judgment interest on such penalties, which in the aggregate are not material. Cost Accounting Standards Claim By letter dated December 24, 2013, a Divisional Administrative Contracting Officer of the United States Defense Contract Management Agency asserted a claim and demand for payment of approximately $211 million against Pratt & Whitney. 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. We believe this claim is without merit. On March 18, 2014, Pratt & Whitney filed an appeal to the Armed Services Board of Contract Appeals. 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 $241 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 $133 million). On August 3, 2012, we filed suit in the local German Tax Court (Berlin-Brandenburg). In 2008 the German Federal Tax Court (FTC) denied benefits to another taxpayer in a case involving a German tax law relevant to our reorganization. The determination of the FTC on this other matter was appealed to the European Court of Justice (ECJ) to determine if the underlying German tax law is violative of European Union principles. On September 17, 2009, the ECJ issued an opinion in this case that is generally favorable to the other taxpayer and referred the case back to the FTC for further consideration of certain related issues. In May 2010, the FTC released its decision, in which it resolved certain tax issues that may be relevant to our suit and remanded the case to a lower court for further development. In 2012, the lower court decided in favor of the other taxpayer and the German Government again appealed the findings to the FTC. In November 2014, the FTC ruled in favor of the German Government, and against the other taxpayer. We believe that the FTC decision in the case involving the other taxpayer is not determinative of the outcome in our case, and we will continue vigorously to litigate the matter. However, in light of the FTC decision in the case involving the other taxpayer, we fully accrued for the matter during the quarter ended December 31, 2014. While we continue to litigate the matter at the local German Tax Court, UTC made tax and interest payments to German tax authorities of €20 million (approximately $22 million) in the quarter ended March 31, 2015 and €217 million (approximately $236 million) in the quarter ended June 30, 2015 to avoid additional interest accruals pending final resolution of this matter. Other. As described in Note 16 to the Consolidated Financial Statements in our 2014 Annual Report, 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 have accrued for environmental investigatory, remediation, operating and maintenance costs, performance guarantees and other litigation and claims based on our estimate of the probable outcome of these matters. While it is possible that the outcome of these matters may differ from the recorded liability, we believe that resolution of these matters will not have a material impact on our competitive position, results of operations, cash flows or financial condition. 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. We are also subject to a number of routine lawsuits, investigations and claims (some of which involve substantial amounts) arising out of the ordinary course of our business. 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
Segment Financial Data | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Financial Data [Text Block] | Segment Financial Data Our operations are classified into five principal segments: Otis, UTC Climate, Controls & Security, Pratt & Whitney, UTC Aerospace Systems and Sikorsky. The segments are generally 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. Results for the quarters ended June 30, 2015 and 2014 are as follows: Net Sales Operating Profits Operating Profit Margins (Dollars in millions) 2015 2014 2015 2014 2015 2014 Otis $ 3,098 $ 3,365 $ 627 $ 693 20.2 % 20.6 % UTC Climate, Controls & Security 4,454 4,429 823 815 18.5 % 18.4 % Pratt & Whitney 3,677 3,592 487 432 13.2 % 12.0 % UTC Aerospace Systems 3,632 3,636 580 602 16.0 % 16.6 % Sikorsky 1,691 2,384 165 (317 ) 9.8 % (13.3 )% Total segments 16,552 17,406 2,682 2,225 16.2 % 12.8 % Eliminations and other (219 ) (215 ) (10 ) 249 General corporate expenses — — (120 ) (119 ) Consolidated $ 16,333 $ 17,191 $ 2,552 $ 2,355 15.6 % 13.7 % Results for the six months ended June 30, 2015 and 2014 are as follows: Net Sales Operating Profits Operating Profit Margins (Dollars in millions) 2015 2014 2015 2014 2015 2014 Otis $ 5,843 $ 6,320 $ 1,154 $ 1,263 19.8 % 20.0 % UTC Climate, Controls & Security 8,306 8,280 1,552 1,352 18.7 % 16.3 % Pratt & Whitney 7,009 6,921 906 820 12.9 % 11.8 % UTC Aerospace Systems 7,180 7,086 1,149 1,192 16.0 % 16.8 % Sikorsky 2,958 3,745 257 (231 ) 8.7 % (6.2 )% Total segments 31,296 32,352 5,018 4,396 16.0 % 13.6 % Eliminations and other (422 ) (416 ) 38 288 General corporate expenses — — (230 ) (231 ) Consolidated $ 30,874 $ 31,936 $ 4,826 $ 4,453 15.6 % 13.9 % See Note 7 to the Condensed Consolidated Financial Statements for a discussion of restructuring costs included in segment operating results. |
Accounting Pronouncements
Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers." This ASU is intended to clarify the principles for recognizing revenue by removing inconsistencies in revenue requirements; providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and providing more useful information to users of financial statements through improved revenue disclosure requirements. In April 2015, the FASB voted to defer the effective date of the new revenue recognition standard by one year. As a result, the provisions of this ASU are now effective for interim and annual periods beginning after December 15, 2017. We are currently evaluating the impact of this ASU. In February 2015, the FASB issued ASU No. 2015-02, "Amendments to the Consolidation Analysis." This update is intended to improve targeted areas of consolidation guidance by simplifying the consolidation evaluation process, and by placing more emphasis on risk of loss when determining a controlling financial interest. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2015. We are currently evaluating the impact of this ASU. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This ASU more closely aligns the treatment of debt issuance costs with debt discounts and premiums and requires debt issuance costs be presented as a direct deduction from the carrying amount of the related debt. The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. This ASU is not expected to have a significant impact on our financial statements or disclosures. |
Acquisitions, Dispositions, G22
Acquisitions, Dispositions, Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | (Dollars in millions) Current assets $ 1,947 Noncurrent assets 963 Total assets $ 2,910 Current liabilities $ 1,946 Noncurrent liabilities 1,437 Total liabilities $ 3,383 |
Schedule of Goodwill [Table Text Block] | (Dollars in millions) Balance as of Goodwill Resulting from Business Combinations Foreign Currency Translation and Other Balance as of Otis $ 1,664 $ 6 $ (67 ) $ 1,603 UTC Climate, Controls & Security 9,408 348 (121 ) 9,635 Pratt & Whitney 1,481 36 — 1,517 UTC Aerospace Systems 14,892 — (61 ) 14,831 Sikorsky 347 — (3 ) 344 Total Segments 27,792 390 (252 ) 27,930 Eliminations and other 4 — (1 ) 3 Total $ 27,796 $ 390 $ (253 ) $ 27,933 |
Intangible Assets Disclosure [Table Text Block] | June 30, 2015 December 31, 2014 (Dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Service portfolios $ 2,006 $ (1,295 ) $ 2,103 $ (1,309 ) Patents and trademarks 389 (196 ) 361 (190 ) IAE collaboration 3,118 (45 ) 2,872 (20 ) Customer relationships and other 12,434 (2,835 ) 12,189 (2,623 ) 17,947 (4,371 ) 17,525 (4,142 ) Unamortized: Trademarks and other 2,130 — 2,177 — Total $ 20,077 $ (4,371 ) $ 19,702 $ (4,142 ) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (Dollars in millions) Remaining 2015 2016 2017 2018 2019 2020 Amortization expense $ 337 $ 714 $ 745 $ 771 $ 767 $ 777 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Quarter Ended June 30, Six Months Ended June 30, (Dollars in millions, except per share amounts; shares in millions) 2015 2014 2015 2014 Net income attributable to common shareowners $ 1,542 $ 1,680 $ 2,968 $ 2,893 Basic weighted average number of shares outstanding 877.3 900.1 884.8 900.3 Stock awards and equity units 12.1 14.6 13.0 14.5 Diluted weighted average number of shares outstanding 889.4 914.7 897.8 914.8 Earnings Per Share of Common Stock: Basic $ 1.76 $ 1.87 $ 3.35 $ 3.21 Diluted 1.73 1.84 3.31 3.16 |
Inventories and Contracts in 24
Inventories and Contracts in Progress (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | (Dollars in millions) June 30, 2015 December 31, 2014 Raw materials $ 2,011 $ 2,056 Work-in-process 3,881 3,596 Finished goods 4,116 3,776 Contracts in progress 8,579 8,189 18,587 17,617 Less: Progress payments, secured by lien, on U.S. Government contracts (498 ) (300 ) Billings on contracts in progress (7,794 ) (7,452 ) $ 10,295 $ 9,865 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt [Table Text Block] | (Dollars in millions) June 30, 2015 December 31, 2014 Commercial paper $ 2,500 $ — Other borrowings 282 126 Total short-term borrowings $ 2,782 $ 126 |
Schedule of Long-term Debt [Table Text Block] | Long-term debt consisted of the following: (Dollars in millions) June 30, 2015 December 31, 2014 LIBOR plus 0.500% floating rate notes due 2015 $ — $ 500 4.875% notes due 2015 — 1,200 5.375% notes due 2017 1 1,000 1,000 1.800% notes due 2017 1 1,500 1,500 1.778% junior subordinated notes due 2018 1,100 — 6.800% notes due 2018 4 99 99 6.125% notes due 2019 1 1,250 1,250 8.875% notes due 2019 271 271 4.500% notes due 2020 1 1,250 1,250 4.875% notes due 2020 4 171 171 8.750% notes due 2021 250 250 3.100% notes due 2022 1 2,300 2,300 1.550% junior subordinated notes due 2022 — 1,100 1.250% notes due 2023 (€750 million principal value) 2 841 — 7.100% notes due 2027 4 141 141 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 4 134 134 7.000% notes due 2038 4 159 159 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 3 850 — Project financing obligations 199 147 Other (including capitalized leases) 4 339 378 Total principal long-term debt 19,504 19,500 Other (fair market value adjustments and discounts) 4 157 168 Total long-term debt 19,661 19,668 Less: current portion 172 1,796 Long-term debt, net of current portion $ 19,489 $ 17,872 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 We may redeem these notes, in whole or in part, at our option at any time. If redeemed prior to February 22, 2023, 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 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. 3 We may redeem these notes, in whole or in part, at our option at any time. If redeemed prior to November 16, 2044, the redemption price in U.S. Dollars 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 a semiannual basis at the adjusted treasury rate plus 25 basis points. 4 Includes notes and remaining fair market value adjustments that were assumed as a part of the Goodrich acquisition on July 26, 2012. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Defined Pension, Defined Contribution and Other Postretirement Benefit Plans [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Pension Benefits Six Months Ended June 30, Other Postretirement Benefits Six Months Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Service cost $ 249 $ 244 $ 2 $ 2 Interest cost 701 760 16 20 Expected return on plan assets (1,134 ) (1,108 ) — — Amortization (5 ) (4 ) — — Recognized actuarial net loss (gain) 442 214 (2 ) (2 ) Net settlement and curtailment loss 9 6 — — Total net periodic benefit cost $ 262 $ 112 $ 16 $ 20 Quarter Ended June 30, Six Months Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Defined benefit plans $ 25 $ 60 $ 70 $ 144 Defined contribution plans $ 86 $ 80 $ 182 $ 170 Pension Benefits Quarter Ended June 30, Other Postretirement Benefits Quarter Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Service cost $ 124 $ 122 $ 1 $ 1 Interest cost 350 380 8 10 Expected return on plan assets (565 ) (554 ) — — Amortization (2 ) (2 ) — — Recognized actuarial net loss (gain) 221 107 (1 ) (1 ) Net settlement and curtailment loss 3 6 — — Total net periodic benefit cost $ 131 $ 59 $ 8 $ 10 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs [Table Text Block] | (Dollars in millions) Expected Costs Costs Incurred in 2014 Costs Incurred Quarter Ended March 31, 2015 Costs Incurred Quarter Ended June 30, 2015 Remaining Costs at June 30, 2015 Otis $ 130 $ (98 ) $ (6 ) $ (4 ) $ 22 UTC Climate, Controls & Security 128 (86 ) (7 ) (18 ) 17 Pratt & Whitney 83 (64 ) (10 ) (2 ) 7 UTC Aerospace Systems 83 (72 ) — (1 ) 10 Sikorsky 20 (20 ) — — — Eliminations and other 5 (5 ) — — — Total $ 449 $ (345 ) $ (23 ) $ (25 ) $ 56 (Dollars in millions) Expected Costs Costs Incurred Quarter Ended March 31, 2015 Costs Incurred Quarter Ended June 30, 2015 Remaining Costs at June 30, 2015 Otis $ 11 $ — $ (4 ) $ 7 UTC Climate, Controls & Security 34 (16 ) (12 ) 6 Pratt & Whitney 3 (1 ) (2 ) — UTC Aerospace Systems 53 (47 ) 4 10 Sikorsky 49 — (26 ) 23 Eliminations and other 1 — (1 ) — Total $ 151 $ (64 ) $ (41 ) $ 46 (Dollars in millions) Cost of sales $ 87 Selling, general and administrative 68 Total $ 155 (Dollars in millions) Otis $ 14 UTC Climate, Controls & Security 52 Pratt & Whitney 15 UTC Aerospace Systems 50 Sikorsky 23 Eliminations and other 1 Total $ 155 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | (Dollars in millions) Severance Asset Write-Downs Facility Exit, Lease Termination and Other Costs Total Restructuring accruals at April 1, 2015 $ 130 $ — $ 8 $ 138 Net pre-tax restructuring costs 21 1 3 25 Utilization and foreign exchange (28 ) (1 ) (5 ) (34 ) Balance at June 30, 2015 $ 123 $ — $ 6 $ 129 (Dollars in millions) Severance Facility Exit, Lease Termination and Other Costs Total Restructuring accruals at April 1, 2015 $ 61 $ — $ 61 Net pre-tax restructuring costs 40 1 41 Utilization and foreign exchange (12 ) (1 ) (13 ) Balance at June 30, 2015 $ 89 $ — $ 89 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Asset Derivatives Liability Derivatives (Dollars in millions) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Derivatives designated as hedging instruments $ 18 $ 3 $ 272 $ 248 Derivatives not designated as hedging instruments 56 139 67 71 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | The amount of gains and losses related to the Company's derivative financial instruments was as follows: Quarter Ended June 30, Six Months Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Gain (loss) recorded in Accumulated other comprehensive loss $ 62 $ 102 $ (122 ) $ 22 Loss reclassified from Accumulated other comprehensive loss into Product sales (effective portion) $ 43 $ 13 $ 100 $ 31 |
Other Income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | The effect on the Condensed Consolidated Statement of Operations of foreign exchange contracts not designated as hedging instruments was as follows: Quarter Ended June 30, Six Months Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Gain (loss) recognized in Other income, net $ 12 $ (14 ) $ 30 $ 12 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
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 in our Condensed Consolidated Balance Sheet at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 (Dollars in millions) Carrying Amount Fair Value Carrying Amount Fair Value Long-term receivables $ 147 $ 145 $ 214 $ 204 Customer financing notes receivable 342 337 262 260 Short-term borrowings (2,782 ) (2,782 ) (126 ) (126 ) Long-term debt (excluding capitalized leases) (19,634 ) (21,872 ) (19,634 ) (22,254 ) Long-term liabilities (264 ) (289 ) (80 ) (74 ) The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Condensed Consolidated Balance Sheet as of June 30, 2015 : (Dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 145 $ — $ 145 $ — Customer financing notes receivable 337 — 337 — Short-term borrowings (2,782 ) — (2,645 ) (137 ) Long-term debt (excluding capitalized leases) (21,872 ) — (21,480 ) (392 ) Long-term liabilities (289 ) — (289 ) — |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | December 31, 2014 (Dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 961 $ 961 $ — $ — Derivative assets 142 — 142 — Derivative liabilities (319 ) — (319 ) — Nonrecurring fair value measurements: Business dispositions 3 — 3 — June 30, 2015 (Dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 920 $ 920 $ — $ — Derivative assets 74 — 74 — Derivative liabilities (339 ) — (339 ) — |
Long-Term Financing Receivabl30
Long-Term Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Financing Receivable Credit Quality Indicators [Table Text Block] | (Dollars in millions) June 30, 2015 December 31, 2014 Long-term trade accounts receivable $ 1,154 $ 1,045 Notes and leases receivable 465 381 Total long-term receivables $ 1,619 $ 1,426 |
Shareowners' Equity and Nonco31
Shareowners' Equity and Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | Six Months Ended June 30, 2015 2014 (Dollars in millions) Share-owners' Non-controlling Interest Total Equity Share-owners' Non-controlling Interest Total Equity Equity, beginning of period $ 31,213 $ 1,351 $ 32,564 $ 31,866 $ 1,353 $ 33,219 Comprehensive income for the period: Net income 2,968 182 3,150 2,893 203 3,096 Total other comprehensive (loss) income 84 (40 ) 44 477 (7 ) 470 Total comprehensive income for the period 3,052 142 3,194 3,370 196 3,566 Common Stock issued under employee plans 237 — 237 290 — 290 Common Stock repurchased (3,000 ) — (3,000 ) (670 ) — (670 ) Dividends on Common Stock (1,096 ) — (1,096 ) (1,026 ) — (1,026 ) Dividends on ESOP Common Stock (37 ) — (37 ) (36 ) — (36 ) Dividends attributable to noncontrolling interest — (116 ) (116 ) — (100 ) (100 ) Sale (purchase) of subsidiary shares from noncontrolling interest 11 10 21 (9 ) (6 ) (15 ) Acquisition of noncontrolling interest — 173 173 — — — Disposition of noncontrolling interest — (3 ) (3 ) — 3 3 Redeemable noncontrolling interest (3 ) 5 2 — (38 ) (38 ) Other — (1 ) (1 ) — — — Equity, end of period $ 30,377 $ 1,561 $ 31,938 $ 33,785 $ 1,408 $ 35,193 Quarter Ended June 30, 2015 2014 (Dollars in millions) Share-owners' Equity Non-controlling Interest Total Equity Share-owners' Non-controlling Interest Total Equity Equity, beginning of period $ 28,650 $ 1,517 $ 30,167 $ 32,317 $ 1,378 $ 33,695 Comprehensive income for the period: Net income 1,542 110 1,652 1,680 110 1,790 Total other comprehensive income 634 — 634 538 — 538 Total comprehensive income for the period 2,176 110 2,286 2,218 110 2,328 Common Stock issued under employee plans 112 — 112 125 — 125 Common Stock repurchased — — — (335 ) — (335 ) Dividends on Common Stock (543 ) — (543 ) (512 ) — (512 ) Dividends on ESOP Common Stock (18 ) — (18 ) (18 ) — (18 ) Dividends attributable to noncontrolling interest — (61 ) (61 ) — (44 ) (44 ) Purchase of subsidiary shares from noncontrolling interest — (4 ) (4 ) (10 ) (30 ) (40 ) Acquisition of noncontrolling interest — 1 1 — — — Disposition of noncontrolling interest — — — — 3 3 Redeemable noncontrolling interest 1 (1 ) — — (9 ) (9 ) Other (1 ) (1 ) (2 ) — — — Equity, end of period $ 30,377 $ 1,561 $ 31,938 $ 33,785 $ 1,408 $ 35,193 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | A summary of the changes in each component of accumulated other comprehensive income (loss), net of tax for the quarters and six months ended June 30, 2015 and 2014 is provided below: (Dollars in millions) Foreign Currency Translation Defined Benefit Pension and Post- retirement Plans Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income Quarter Ended June 30, 2015 Balance at March 31, 2015 $ (1,718 ) $ (5,537 ) $ 344 $ (300 ) $ (7,211 ) Other comprehensive income (loss) before reclassifications, net 439 (4 ) 4 49 488 Amounts reclassified, pretax 1 218 (26 ) 43 236 Tax (benefit) expense reclassified — (82 ) 8 (16 ) (90 ) Balance at June 30, 2015 $ (1,278 ) $ (5,405 ) $ 330 $ (224 ) $ (6,577 ) Six Months Ended June 30, 2015 Balance at December 31, 2014 $ (1,051 ) $ (5,709 ) $ 308 $ (209 ) $ (6,661 ) Other comprehensive (loss) income before reclassifications, net (226 ) 31 58 (83 ) (220 ) Amounts reclassified, pretax (1 ) 435 (54 ) 100 480 Tax (benefit) expense reclassified — (162 ) 18 (32 ) (176 ) Balance at June 30, 2015 $ (1,278 ) $ (5,405 ) $ 330 $ (224 ) $ (6,577 ) (Dollars in millions) Foreign Currency Translation Defined Benefit Pension and Post- retirement Plans Unrealized Gains (Losses) on Available-for-Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income Quarter Ended June 30, 2014 Balance at March 31, 2014 $ 71 $ (3,184 ) $ 301 $ (129 ) $ (2,941 ) Other comprehensive income (loss) before reclassifications, net 424 (12 ) (28 ) 80 464 Amounts reclassified, pretax — 104 (6 ) 13 111 Tax (benefit) expense reclassified — (35 ) 5 (7 ) (37 ) Balance at June 30, 2014 $ 495 $ (3,127 ) $ 272 $ (43 ) $ (2,403 ) Six Months Ended June 30, 2014 Balance at December 31, 2013 $ 170 $ (3,267 ) $ 296 $ (79 ) $ (2,880 ) Other comprehensive income (loss) before reclassifications, net 322 1 (6 ) 15 332 Amounts reclassified, pretax 3 208 (30 ) 31 212 Tax (benefit) expense reclassified — (69 ) 12 (10 ) (67 ) Balance at June 30, 2014 $ 495 $ (3,127 ) $ 272 $ (43 ) $ (2,403 ) |
Temporary Equity [Table Text Block] | Quarter Ended June 30, Six Months Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Redeemable noncontrolling interest, beginning of period $ 135 $ 137 $ 140 $ 111 Net income 3 1 4 7 Foreign currency translation (2 ) 2 (9 ) — Dividends attributable to noncontrolling interest — — (3 ) (3 ) Purchase of subsidiary shares from noncontrolling interest (1 ) — (1 ) — Redeemable noncontrolling interest fair value adjustment (1 ) — 3 — Redeemable noncontrolling interest reclassification to noncontrolling interest — 6 — 31 Redeemable noncontrolling interest, end of period $ 134 $ 146 $ 134 $ 146 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block] | Quarter Ended June 30, Six Months Ended June 30, (Dollars in millions) 2015 2014 2015 2014 Net income attributable to common shareowners $ 1,542 $ 1,680 $ 2,968 $ 2,893 Transfers to noncontrolling interests: Increase in common stock for sale of subsidiary shares — — 23 4 Decrease in common stock for purchase of subsidiary shares — (10 ) (12 ) (13 ) Net income attributable to common shareowners after transfers to noncontrolling interests $ 1,542 $ 1,670 $ 2,979 $ 2,884 |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Service and Product Warranties and Product Performance Guarantees [Abstract] | |
Product Warranty Disclosure [Table Text Block] | (Dollars in millions) 2015 2014 Balance as of January 1 $ 1,313 $ 1,360 Warranties and performance guarantees issued 132 121 Settlements made (141 ) (168 ) Other (19 ) (9 ) Balance as of June 30 $ 1,285 $ 1,304 |
Segment Financial Data (Tables)
Segment Financial Data (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Net Sales Operating Profits Operating Profit Margins (Dollars in millions) 2015 2014 2015 2014 2015 2014 Otis $ 3,098 $ 3,365 $ 627 $ 693 20.2 % 20.6 % UTC Climate, Controls & Security 4,454 4,429 823 815 18.5 % 18.4 % Pratt & Whitney 3,677 3,592 487 432 13.2 % 12.0 % UTC Aerospace Systems 3,632 3,636 580 602 16.0 % 16.6 % Sikorsky 1,691 2,384 165 (317 ) 9.8 % (13.3 )% Total segments 16,552 17,406 2,682 2,225 16.2 % 12.8 % Eliminations and other (219 ) (215 ) (10 ) 249 General corporate expenses — — (120 ) (119 ) Consolidated $ 16,333 $ 17,191 $ 2,552 $ 2,355 15.6 % 13.7 % Net Sales Operating Profits Operating Profit Margins (Dollars in millions) 2015 2014 2015 2014 2015 2014 Otis $ 5,843 $ 6,320 $ 1,154 $ 1,263 19.8 % 20.0 % UTC Climate, Controls & Security 8,306 8,280 1,552 1,352 18.7 % 16.3 % Pratt & Whitney 7,009 6,921 906 820 12.9 % 11.8 % UTC Aerospace Systems 7,180 7,086 1,149 1,192 16.0 % 16.8 % Sikorsky 2,958 3,745 257 (231 ) 8.7 % (6.2 )% Total segments 31,296 32,352 5,018 4,396 16.0 % 13.6 % Eliminations and other (422 ) (416 ) 38 288 General corporate expenses — — (230 ) (231 ) Consolidated $ 30,874 $ 31,936 $ 4,826 $ 4,453 15.6 % 13.9 % |
Acquisitions, Dispositions, G34
Acquisitions, Dispositions, Goodwill and Other Intangible Assets (General Information) (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total | Total |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Acquisition Cost Of Acquired Entities and Interest in Affiliates | $ 273 | |
Noncash or Part Noncash Acquisition, Debt Assumed | 17 | |
Sikorsky [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Agreed Upon Selling Price of Disposal Business | $ 9,000 | $ 9,000 |
Subsequent Event, Description | we announced an agreement to sell our Sikorsky Aircraft business (Sikorsky) to Lockheed Martin Corp. | |
Subsequent Event, Date | Jul. 20, 2015 |
Acquisitions, Dispositions, G35
Acquisitions, Dispositions, Goodwill and Other Intangible Assets (IAE Collaboration) (Details) | 6 Months Ended |
Jun. 30, 2015 | |
IAE Collaboration [Member] | |
Variable Interest Entity [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 61.00% |
International Aero Engines AG [Member] | |
Variable Interest Entity [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 49.50% |
Acquisitions, Dispositions, G36
Acquisitions, Dispositions, Goodwill and Other Intangible Assets (Variable Interest Entity) (Details) $ in Millions | Jun. 30, 2015USD ($) |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Current Assets | $ 1,947 |
Noncurrent Assets | 963 |
Total Assets | 2,910 |
Current Liabilities | 1,946 |
Noncurrent Liabilities | 1,437 |
Total Liabilities | $ 3,383 |
Acquisition, Dispositions, Good
Acquisition, Dispositions, Goodwill and Other Intangible Assets (Goodwill) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | $ 27,796 |
Goodwill Resulting from Business Combinations | 390 |
Goodwill - Foreign Currency Translation and Other | (253) |
Goodwill - Ending Balance | 27,933 |
Otis [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 1,664 |
Goodwill Resulting from Business Combinations | 6 |
Goodwill - Foreign Currency Translation and Other | (67) |
Goodwill - Ending Balance | 1,603 |
UTC Climate, Controls & Security [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 9,408 |
Goodwill Resulting from Business Combinations | 348 |
Goodwill - Foreign Currency Translation and Other | (121) |
Goodwill - Ending Balance | 9,635 |
Pratt & Whitney [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 1,481 |
Goodwill Resulting from Business Combinations | 36 |
Goodwill - Foreign Currency Translation and Other | 0 |
Goodwill - Ending Balance | 1,517 |
UTC Aerospace Systems [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 14,892 |
Goodwill Resulting from Business Combinations | 0 |
Goodwill - Foreign Currency Translation and Other | (61) |
Goodwill - Ending Balance | 14,831 |
Sikorsky [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 347 |
Goodwill Resulting from Business Combinations | 0 |
Goodwill - Foreign Currency Translation and Other | (3) |
Goodwill - Ending Balance | 344 |
Total Segments [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 27,792 |
Goodwill Resulting from Business Combinations | 390 |
Goodwill - Foreign Currency Translation and Other | (252) |
Goodwill - Ending Balance | 27,930 |
Eliminations and other [Member] | |
Goodwill [Line Items] | |
Goodwill - Beginning Balance | 4 |
Goodwill Resulting from Business Combinations | 0 |
Goodwill - Foreign Currency Translation and Other | (1) |
Goodwill - Ending Balance | $ 3 |
Acquisitions, Dispositions, G38
Acquisitions, Dispositions, Goodwill and Other Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Amount | $ 17,947 | $ 17,947 | $ 17,525 | ||
Accumulated Amortization | 4,371 | 4,371 | 4,142 | ||
Unamortized: Trademarks and Other | 2,130 | 2,130 | 2,177 | ||
Total Intangible Assets Gross Excluding Goodwill | 20,077 | 20,077 | 19,702 | ||
Amortization of Intangible Assets | 179 | $ 178 | 358 | $ 357 | |
Service portfolios [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Amount | 2,006 | 2,006 | 2,103 | ||
Accumulated Amortization | 1,295 | 1,295 | 1,309 | ||
Patents and trademarks [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Amount | 389 | 389 | 361 | ||
Accumulated Amortization | 196 | 196 | 190 | ||
IAE collaboration [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Amount | 3,118 | 3,118 | 2,872 | ||
Accumulated Amortization | 45 | 45 | 20 | ||
Customer relationships and other [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Amount | 12,434 | 12,434 | 12,189 | ||
Accumulated Amortization | $ 2,835 | $ 2,835 | $ 2,623 |
Acquisitions, Dispositions, G39
Acquisitions, Dispositions, Goodwill and Other Intangible Assets (Amortization Expense) (Details) $ in Millions | Jun. 30, 2015USD ($) |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Amortization Expense, Remaining 2015 | $ 337 |
Amortization Expense, 2016 | 714 |
Amortization Expense, 2017 | 745 |
Amortization Expense, 2018 | 771 |
Amortization Expense, 2019 | 767 |
Amortization Expense, 2020 | $ 777 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to common shareowners | $ 1,542 | $ 1,680 | $ 2,968 | $ 2,893 |
Basic weighted average number of shares outstanding | 877,300,000 | 900,100,000 | 884,800,000 | 900,300,000 |
Stock awards and equity units | 12,100,000 | 14,600,000 | 13,000,000 | 14,500,000 |
Diluted weighted average number of shares outstanding | 889,400,000 | 914,700,000 | 897,800,000 | 914,800,000 |
Basic | $ 1.76 | $ 1.87 | $ 3.35 | $ 3.21 |
Diluted | $ 1.73 | $ 1.84 | $ 3.31 | $ 3.16 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 400,000 | 0 | 400,000 | 0 |
Inventories and Contracts in 41
Inventories and Contracts in Progress (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,011 | $ 2,056 |
Work-in-process | 3,881 | 3,596 |
Finished goods | 4,116 | 3,776 |
Contracts in progress | 8,579 | 8,189 |
Inventory before payments and billings | 18,587 | 17,617 |
Progress payments, secured by lien, on U.S. Government contracts | 498 | 300 |
Billings on contracts in progress | 7,794 | 7,452 |
Inventories and contracts in progress, net | 10,295 | 9,865 |
UTC Aerospace Systems [Member] | ||
Inventory [Line Items] | ||
Other Inventory, Capitalized Costs, Gross | $ 185 | $ 141 |
Borrowings and Lines of Credi42
Borrowings and Lines of Credit (Short-Term Borrowings) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Commercial paper | $ 2,500 | $ 0 |
Other borrowings | 282 | 126 |
Short-term borrowings | $ 2,782 | $ 126 |
Borrowing and Lines of Credit (
Borrowing and Lines of Credit (Narrative) (Details) - Jun. 30, 2015 - USD ($) | Total | Total |
Line of Credit Facility [Line Items] | ||
Aggregate Line of Credit Facility Maximum Borrowing Capacity | $ 4,350,000,000 | $ 4,350,000,000 |
Maximum Commercial Paper Borrowing Authority | 4,350,000,000 | 4,350,000,000 |
Revolving Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,200,000,000 | 2,200,000,000 |
Line of Credit Facility, Amount Outstanding | 0 | $ 0 |
Line of Credit Facility, Expiration Date | May 23, 2019 | |
Multicurrency Revolving Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,150,000,000 | $ 2,150,000,000 |
Line of Credit Facility, Amount Outstanding | 0 | $ 0 |
Line of Credit Facility, Expiration Date | May 23, 2019 | |
Short term Revolving Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Initiation Date | Mar. 11, 2015 | |
Line of Credit Facility, Increase (Decrease), Other, Net | $ (1,500,000,000) |
Borrowings and Lines of Credi44
Borrowings and Lines of Credit (Long-Term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | ||||
Debt Instrument [Line Items] | ||||||
Project financing obligations | $ 199 | $ 199 | $ 147 | |||
Other (including capitalized leases) | [1] | 339 | 339 | 378 | ||
Total principal long-term debt | 19,504 | 19,504 | 19,500 | |||
Other (fair market value adjustments and discounts) | [1] | 157 | 157 | 168 | ||
Total Long-Term Debt | 19,661 | 19,661 | 19,668 | |||
Less: current portion | 172 | 172 | 1,796 | |||
Long-term debt, net of current portion | 19,489 | $ 19,489 | 17,872 | |||
LIBOR Plus 0.500% Floating Rate Notes Due 2015 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Maturity Date, Description | 2,015 | |||||
Debt Instrument, Carrying Amount | $ 0 | $ 0 | 500 | |||
Debt Instrument, Interest Rate Terms | LIBOR plus 0.500% | |||||
Notes 4.875% Due 2015 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% | ||||
Debt Instrument, Maturity Date, Description | 2,015 | |||||
Debt Instrument, Carrying Amount | $ 0 | $ 0 | 1,200 | |||
Notes 5.375% Due 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | ||||
Debt Instrument, Maturity Date, Description | 2,017 | |||||
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. | |||||
Debt Instrument, Carrying Amount | $ 1,000 | [2] | $ 1,000 | [2] | 1,000 | |
Notes 1.800% Due 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.80% | 1.80% | ||||
Debt Instrument, Maturity Date, Description | 2,017 | |||||
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. | |||||
Debt Instrument, Carrying Amount | [2] | $ 1,500 | $ 1,500 | 1,500 | ||
Junior subordinated notes 1.778% due 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount of Proceeds from Remarketing, Current Period | $ 0 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.778% | 1.778% | ||||
Debt Instrument, Maturity Date, Description | 2,018 | |||||
Debt Instrument, Carrying Amount | $ 1,100 | $ 1,100 | 0 | |||
Notes 6.800% Due 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | 6.80% | ||||
Debt Instrument, Maturity Date, Description | 2,018 | |||||
Debt Instrument, Call Feature | Includes notes and remaining fair market value adjustments that were assumed as a part of the Goodrich acquisition on July 26, 2012. | |||||
Debt Instrument, Carrying Amount | [1] | $ 99 | $ 99 | 99 | ||
Notes 6.125% Due 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | 6.125% | ||||
Debt Instrument, Maturity Date, Description | 2,019 | |||||
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. | |||||
Debt Instrument, Carrying Amount | [2] | $ 1,250 | $ 1,250 | 1,250 | ||
Notes 8.875% Due 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.875% | 8.875% | ||||
Debt Instrument, Maturity Date, Description | 2,019 | |||||
Debt Instrument, Carrying Amount | $ 271 | $ 271 | 271 | |||
Notes 4.500% Due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||||
Debt Instrument, Maturity Date, Description | 2,020 | |||||
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. | |||||
Debt Instrument, Carrying Amount | [2] | $ 1,250 | $ 1,250 | 1,250 | ||
Notes 4.875% Due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% | ||||
Debt Instrument, Maturity Date, Description | 2,020 | |||||
Debt Instrument, Call Feature | Includes notes and remaining fair market value adjustments that were assumed as a part of the Goodrich acquisition on July 26, 2012. | |||||
Debt Instrument, Carrying Amount | [1] | $ 171 | $ 171 | 171 | ||
Notes 8.750% Due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | 8.75% | ||||
Debt Instrument, Maturity Date, Description | 2,021 | |||||
Debt Instrument, Carrying Amount | $ 250 | $ 250 | 250 | |||
Notes 3.100% Due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | 3.10% | ||||
Debt Instrument, Maturity Date, Description | 2,022 | |||||
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. | |||||
Debt Instrument, Carrying Amount | [2] | $ 2,300 | $ 2,300 | 2,300 | ||
1.550% junior subordinated notes due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.55% | 1.55% | ||||
Debt Instrument, Maturity Date, Description | 2,022 | |||||
Debt Instrument, Carrying Amount | $ 0 | $ 0 | 1,100 | |||
Notes 1.250% due 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | 1.25% | ||||
Debt Instrument, Maturity Date, Description | 2,023 | |||||
Debt Instrument, Call Feature | We may redeem these notes, in whole or in part, at our option at any time. If redeemed prior to February 22, 2023, 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 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. | |||||
Debt Instrument, Carrying Amount | [3] | $ 841 | $ 841 | 0 | ||
Notes 7.100% Due 2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.10% | 7.10% | ||||
Debt Instrument, Maturity Date, Description | 2,027 | |||||
Debt Instrument, Call Feature | Includes notes and remaining fair market value adjustments that were assumed as a part of the Goodrich acquisition on July 26, 2012. | |||||
Debt Instrument, Carrying Amount | [1] | $ 141 | $ 141 | 141 | ||
Notes 6.700% Due 2028 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | 6.70% | ||||
Debt Instrument, Maturity Date, Description | 2,028 | |||||
Debt Instrument, Carrying Amount | $ 400 | $ 400 | 400 | |||
Notes 7.500% Due 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | ||||
Debt Instrument, Maturity Date, Description | 2,029 | |||||
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. | |||||
Debt Instrument, Carrying Amount | [2] | $ 550 | $ 550 | 550 | ||
Notes 5.400% Due 2035 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | 5.40% | ||||
Debt Instrument, Maturity Date, Description | 2,035 | |||||
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. | |||||
Debt Instrument, Carrying Amount | [2] | $ 600 | $ 600 | 600 | ||
Notes 6.050% Due 2036 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.05% | 6.05% | ||||
Debt Instrument, Maturity Date, Description | 2,036 | |||||
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. | |||||
Debt Instrument, Carrying Amount | [2] | $ 600 | $ 600 | 600 | ||
Notes 6.800% Due 2036 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | 6.80% | ||||
Debt Instrument, Maturity Date, Description | 2,036 | |||||
Debt Instrument, Call Feature | Includes notes and remaining fair market value adjustments that were assumed as a part of the Goodrich acquisition on July 26, 2012. | |||||
Debt Instrument, Carrying Amount | [1] | $ 134 | $ 134 | 134 | ||
Notes 7.000% Due 2038 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | ||||
Debt Instrument, Maturity Date, Description | 2,038 | |||||
Debt Instrument, Call Feature | Includes notes and remaining fair market value adjustments that were assumed as a part of the Goodrich acquisition on July 26, 2012. | |||||
Debt Instrument, Carrying Amount | [1] | $ 159 | $ 159 | 159 | ||
Notes 6.125% Due 2038 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | 6.125% | ||||
Debt Instrument, Maturity Date, Description | 2,038 | |||||
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. | |||||
Debt Instrument, Carrying Amount | [2] | $ 1,000 | $ 1,000 | 1,000 | ||
Notes 5.700% Due 2040 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | 5.70% | ||||
Debt Instrument, Maturity Date, Description | 2,040 | |||||
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. | |||||
Debt Instrument, Carrying Amount | [2] | $ 1,000 | $ 1,000 | 1,000 | ||
Notes 4.500% Due 2042 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||||
Debt Instrument, Maturity Date, Description | 2,042 | |||||
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. | |||||
Debt Instrument, Carrying Amount | [2] | $ 3,500 | $ 3,500 | 3,500 | ||
Notes 4.150% Due 2045 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | 4.15% | ||||
Debt Instrument, Maturity Date, Description | 2,045 | |||||
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. | |||||
Debt Instrument, Carrying Amount | [4] | $ 850 | $ 850 | $ 0 | ||
[1] | Includes notes and remaining fair market value adjustments that were assumed as a part of the Goodrich acquisition on July 26, 2012. | |||||
[2] | 1We 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. | |||||
[3] | We may redeem these notes, in whole or in part, at our option at any time. If redeemed prior to February 22, 2023, 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 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 | |||||
[4] | We may redeem these notes, in whole or in part, at our option at any time. If redeemed prior to November 16, 2044, the redemption price in U.S. Dollars 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 a semiannual basis at the adjusted treasury rate plus 25 basis points. |
Borrowings and Lines of Credi45
Borrowings and Lines of Credit Borrowings and lines of Credit (Second Quarter Actions) (Details) - 3 months ended Jun. 30, 2015 € in Millions, shares in Millions, $ in Millions | USD ($)shares | EUR (€)shares |
1.550% junior subordinated notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Remarketing of Debt Instrument, Date | May 4, 2015 | May 4, 2015 |
Notes 4.150% Due 2045 [Member] | ||
Debt Instrument [Line Items] | ||
Proceeds from Issuance of Debt | $ 850 | |
Debt Instrument, Issuance Date | May 4, 2015 | May 4, 2015 |
Notes 4.875% Due 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Repayment of Debt, Date | May 1, 2015 | May 1, 2015 |
Repayments of Debt | $ 1,200 | |
LIBOR Plus 0.500% Floating Rate Notes Due 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Repayment of Debt, Date | Jun. 1, 2015 | Jun. 1, 2015 |
Repayments of Debt | $ 500 | |
Junior subordinated notes 1.778% due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt Remarketing, Expected Proceeds | $ 1,100 | |
Remarketing of Long Term Debt, Date Proceeds Received | Aug. 3, 2015 | Aug. 3, 2015 |
Long Term Debt Remarketing, Number of Shares Issued | shares | 11.3 | 11.3 |
Notes 1.250% due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Proceeds from Issuance of Debt | € | € 750 | |
Debt Instrument, Issuance Date | May 22, 2015 | May 22, 2015 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Jun. 30, 2015USD ($) |
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | $ 25 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | $ 460 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plans | $ 25 | $ 60 | $ 70 | $ 144 |
Defined Contribution Plans | 86 | 80 | 182 | 170 |
Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | 124 | 122 | 249 | 244 |
Interest Cost | 350 | 380 | 701 | 760 |
Expected Return on Plan Assets | 565 | 554 | 1,134 | 1,108 |
Amortization | (2) | (2) | (5) | (4) |
Recognized actuarial net loss (gain) | (221) | (107) | (442) | (214) |
Net settlement and curtailment loss | (3) | (6) | (9) | (6) |
Total net periodic benefit cost | 131 | 59 | 262 | 112 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | 1 | 1 | 2 | 2 |
Interest Cost | 8 | 10 | 16 | 20 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 | 0 |
Recognized actuarial net loss (gain) | 1 | 1 | 2 | 2 |
Net settlement and curtailment loss | 0 | 0 | 0 | 0 |
Total net periodic benefit cost | $ 8 | $ 10 | 16 | 20 |
United States Pension Plans Of US Entity Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plans | $ 0 | $ 0 |
Restructuring and Other Costs48
Restructuring and Other Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | $ 155 | |||
Restructuring Reserve, Two Years Prior Actions | $ 55 | 55 | ||
Current Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve Beginning Balance | 61 | |||
Net pre-tax restructuring costs | 41 | 105 | ||
Utilization and foreign exchange | 13 | |||
Restructuring Reserve Ending Balance | 89 | $ 61 | 89 | |
Restructuring and Related Cost, Incurred Cost | 41 | 64 | ||
Restructuring and Related Cost, Expected Cost | 151 | 151 | ||
Restructuring And Related Cost Expected Remaining | 46 | 46 | ||
Current Year Actions [Member] | Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve Beginning Balance | 61 | |||
Net pre-tax restructuring costs | 40 | |||
Utilization and foreign exchange | 12 | |||
Restructuring Reserve Ending Balance | 89 | 61 | 89 | |
Current Year Actions [Member] | Facility Exit, Lease Termination and Other Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve Beginning Balance | 0 | |||
Net pre-tax restructuring costs | 1 | |||
Utilization and foreign exchange | 1 | |||
Restructuring Reserve Ending Balance | 0 | 0 | 0 | |
Prior Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve Beginning Balance | 138 | |||
Net pre-tax restructuring costs | 25 | 48 | ||
Utilization and foreign exchange | 34 | |||
Restructuring Reserve Ending Balance | 129 | 138 | 129 | |
Restructuring and Related Cost, Incurred Cost | 25 | 23 | $ 345 | |
Restructuring and Related Cost, Expected Cost | 449 | 449 | ||
Restructuring And Related Cost Expected Remaining | 56 | 56 | ||
Prior Year Actions [Member] | Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve Beginning Balance | 130 | |||
Net pre-tax restructuring costs | 21 | |||
Utilization and foreign exchange | 28 | |||
Restructuring Reserve Ending Balance | 123 | 130 | 123 | |
Prior Year Actions [Member] | Asset Write-Downs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve Beginning Balance | 0 | |||
Net pre-tax restructuring costs | 1 | |||
Utilization and foreign exchange | 1 | |||
Restructuring Reserve Ending Balance | 0 | 0 | 0 | |
Prior Year Actions [Member] | Facility Exit, Lease Termination and Other Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve Beginning Balance | 8 | |||
Net pre-tax restructuring costs | 3 | |||
Utilization and foreign exchange | 5 | |||
Restructuring Reserve Ending Balance | 6 | 8 | 6 | |
Otis [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 14 | |||
Otis [Member] | Current Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 4 | 0 | ||
Restructuring and Related Cost, Expected Cost | 11 | 11 | ||
Restructuring And Related Cost Expected Remaining | 7 | 7 | ||
Otis [Member] | Prior Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 4 | 6 | 98 | |
Restructuring and Related Cost, Expected Cost | 130 | 130 | ||
Restructuring And Related Cost Expected Remaining | 22 | 22 | ||
UTC Climate, Controls & Security [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 52 | |||
UTC Climate, Controls & Security [Member] | Current Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 12 | 16 | ||
Restructuring and Related Cost, Expected Cost | 34 | 34 | ||
Restructuring And Related Cost Expected Remaining | 6 | 6 | ||
UTC Climate, Controls & Security [Member] | Prior Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 18 | 7 | 86 | |
Restructuring and Related Cost, Expected Cost | 128 | 128 | ||
Restructuring And Related Cost Expected Remaining | 17 | 17 | ||
Pratt & Whitney [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 15 | |||
Pratt & Whitney [Member] | Current Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 2 | 1 | ||
Restructuring and Related Cost, Expected Cost | 3 | 3 | ||
Restructuring And Related Cost Expected Remaining | 0 | 0 | ||
Pratt & Whitney [Member] | Prior Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 2 | 10 | 64 | |
Restructuring and Related Cost, Expected Cost | 83 | 83 | ||
Restructuring And Related Cost Expected Remaining | 7 | 7 | ||
UTC Aerospace Systems [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 50 | |||
UTC Aerospace Systems [Member] | Current Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | (4) | 47 | ||
Restructuring and Related Cost, Expected Cost | 53 | 53 | ||
Restructuring And Related Cost Expected Remaining | 10 | 10 | ||
UTC Aerospace Systems [Member] | Prior Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 1 | 0 | 72 | |
Restructuring and Related Cost, Expected Cost | 83 | 83 | ||
Restructuring And Related Cost Expected Remaining | 10 | 10 | ||
Sikorsky [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 23 | |||
Sikorsky [Member] | Current Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 26 | 0 | ||
Restructuring and Related Cost, Expected Cost | 49 | 49 | ||
Restructuring And Related Cost Expected Remaining | 23 | 23 | ||
Sikorsky [Member] | Prior Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 0 | 0 | 20 | |
Restructuring and Related Cost, Expected Cost | 20 | 20 | ||
Restructuring And Related Cost Expected Remaining | 0 | 0 | ||
Eliminations and other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 1 | |||
Eliminations and other [Member] | Current Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 1 | 0 | ||
Restructuring and Related Cost, Expected Cost | 1 | 1 | ||
Restructuring And Related Cost Expected Remaining | 0 | 0 | ||
Eliminations and other [Member] | Prior Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 0 | $ 0 | $ 5 | |
Restructuring and Related Cost, Expected Cost | 5 | 5 | ||
Restructuring And Related Cost Expected Remaining | $ 0 | 0 | ||
Cost Of Sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 87 | |||
Cost Of Sales [Member] | Current Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 58 | |||
Cost Of Sales [Member] | Prior Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 27 | |||
Selling General and Administrative [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 68 | |||
Selling General and Administrative [Member] | Current Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | 47 | |||
Selling General and Administrative [Member] | Prior Year Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net pre-tax restructuring costs | $ 21 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) € in Millions, $ in Billions | 3 Months Ended | ||
Jun. 30, 2015EUR (€) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | |||
Four Quarter Rolling Average of Notional Amount of Foreign Exchange Contracts Hedging Foreign Currency Transactions | $ 15 | $ 13.9 | |
Notes 1.250% due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Issuance Date | May 22, 2015 | ||
Proceeds from Issuance of Debt | € | € 750 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivatives designated as hedging instruments, Asset Derivatives | $ 18 | $ 3 |
Derivatives not designated as hedging instruments, Asset Derivatives | 56 | 139 |
Derivatives designated as hedging instruments, Liability Derivatives | 272 | 248 |
Derivatives not designated as hedging instruments, Liability Derivatives | $ 67 | $ 71 |
Financial Instruments (Impact F
Financial Instruments (Impact From Foreign Exchange Derivative Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 12 | $ (14) | $ 30 | $ 12 |
Loss recorded in Accumulated other comprehensive loss | 62 | 102 | (122) | 22 |
Loss reclassified from Accumulated other comprehensive loss (gain) into Product Sales (effective portion) | 43 | $ 13 | 100 | $ 31 |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ (153) | $ (153) |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy Classification) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term receivables | $ 145 | $ 204 | |
Customer financing notes receivable | 337 | 260 | |
Short Term borrowings | 2,782 | 126 | |
Long-term debt (excluding capitalized leases) | 21,872 | 22,254 | |
Long-term liabilities | 289 | 74 | |
Portion at Other than Fair Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term receivables | 147 | 214 | |
Customer financing notes receivable | 342 | 262 | |
Short Term borrowings | 2,782 | 126 | |
Long-term debt (excluding capitalized leases) | 19,634 | 19,634 | |
Long-term liabilities | 264 | 80 | |
UTC Climate, Controls & Security [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 126 | ||
Pratt & Whitney [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 60 | ||
Sikorsky [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 28 | ||
Quoted price in active markets (Level 1) [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [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 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term receivables | 145 | ||
Customer financing notes receivable | 337 | ||
Short Term borrowings | 2,645 | ||
Long-term debt (excluding capitalized leases) | 21,480 | ||
Long-term liabilities | 289 | ||
Unobservable inputs (Level 3) [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term receivables | 0 | ||
Customer financing notes receivable | 0 | ||
Short Term borrowings | 137 | ||
Long-term debt (excluding capitalized leases) | 392 | ||
Long-term liabilities | 0 | ||
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 920 | 961 | |
Derivative Assets | 74 | 142 | |
Derivative Liabilities | 339 | 319 | |
Fair Value, Measurements, Recurring [Member] | Quoted price in active markets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 920 | 961 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 0 | 0 | |
Derivative Assets | 74 | 142 | |
Derivative Liabilities | 339 | 319 | |
Fair Value, Measurements, Recurring [Member] | Unobservable inputs (Level 3) [Member] | |||
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 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Dispositions | 3 | ||
Fair Value, Measurements, Nonrecurring [Member] | Quoted price in active markets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Dispositions | 0 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Dispositions | 3 | ||
Fair Value, Measurements, Nonrecurring [Member] | Unobservable inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Dispositions | $ 0 |
Fair Value Measurements (Commer
Fair Value Measurements (Commercial Aerospace Financing Commitments) (Details) - USD ($) $ in Billions | Jun. 30, 2015 | Dec. 31, 2014 |
Commercial Aerospace [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 10.5 | $ 11.3 |
Long-Term Financing Receivabl54
Long-Term Financing Receivables (Reserve and Additional Information) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Long Term Receivables High Credit Risk Percentage | 7.00% | 7.00% |
Financing Receivable Reserve For Credit Losses And Exposure | $ 17 | $ 10 |
Long-Term Financing Receivabl55
Long-Term Financing Receivables(Class and Credit Risk Information) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | $ 1,619 | $ 1,426 |
Long-term trade accounts receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | 1,154 | 1,045 |
Notes And leases receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Net | $ 465 | $ 381 |
Shareowners' Equity and Nonco56
Shareowners' Equity and Noncontrolling Interest (Summary of Changes in Shareowners' Equity and Noncontrolling Interest) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Redeemable noncontrolling interest, beginning of period | $ 135,000,000 | $ 137,000,000 | $ 140,000,000 | $ 111,000,000 |
Redeemable noncontrolling interest, end of period | 134,000,000 | 146,000,000 | 134,000,000 | 146,000,000 |
Shareowners' Equity, beginning of period | 28,650,000,000 | 32,317,000,000 | 31,213,000,000 | 31,866,000,000 |
Shareowners' Equity, end of period | 30,377,000,000 | 33,785,000,000 | 30,377,000,000 | 33,785,000,000 |
Noncontrolling interest, beginning of period | 1,517,000,000 | 1,378,000,000 | 1,351,000,000 | 1,353,000,000 |
Noncontrolling interest, end of period | 1,561,000,000 | 1,408,000,000 | 1,561,000,000 | 1,408,000,000 |
Total Equity, beginning of period | 30,167,000,000 | 33,695,000,000 | 32,564,000,000 | 33,219,000,000 |
Total Equity, end of period | 31,938,000,000 | 35,193,000,000 | 31,938,000,000 | 35,193,000,000 |
Net income attributable to common shareowners | 1,542,000,000 | 1,680,000,000 | 2,968,000,000 | 2,893,000,000 |
Net Income, Noncontrolling Interest | (110,000,000) | (110,000,000) | (182,000,000) | (203,000,000) |
Net income, Total Equity | 1,652,000,000 | 1,790,000,000 | 3,150,000,000 | 3,096,000,000 |
Total other comprehensive income, Shareowners' Equity | 634,000,000 | 538,000,000 | 84,000,000 | 477,000,000 |
Total other comprehensive loss, Noncontrolling Interest | 0 | 0 | 40,000,000 | 7,000,000 |
Other comprehensive income, net of tax | 634,000,000 | 538,000,000 | 44,000,000 | 470,000,000 |
Total comprehensive income for the period, Shareowners' Equity | 2,176,000,000 | 2,218,000,000 | 3,052,000,000 | 3,370,000,000 |
Total comprehensive income for the period, Noncontrolling Interest | (110,000,000) | (110,000,000) | (142,000,000) | (196,000,000) |
Total comprehensive income for the period, Total Equity | 2,286,000,000 | 2,328,000,000 | 3,194,000,000 | 3,566,000,000 |
Common Stock issued under employee plans | 112,000,000 | 125,000,000 | 237,000,000 | 290,000,000 |
Common Stock repurchased | 0 | 335,000,000 | 3,000,000,000 | 670,000,000 |
Dividends on Common Stock | 543,000,000 | 512,000,000 | 1,096,000,000 | 1,026,000,000 |
Dividends on ESOP Common Stock | 18,000,000 | 18,000,000 | 37,000,000 | 36,000,000 |
Dividends attributable to noncontrolling interest | 61,000,000 | 44,000,000 | 116,000,000 | 100,000,000 |
Sale/(purchase) of subsidiary shares from noncontrolling interest | 4,000,000 | 40,000,000 | (21,000,000) | 15,000,000 |
Acquisition of noncontrolling interest | 1,000,000 | 0 | 173,000,000 | 0 |
Disposition noncontrolling interest | 0 | (3,000,000) | 3,000,000 | (3,000,000) |
Redeemable noncontrolling interest | 0 | (9,000,000) | 2,000,000 | (38,000,000) |
Stockholders' Equity, Other | (2,000,000) | 0 | 1,000,000 | 0 |
Increase in common stock for sale of subsidiary shares | 0 | 0 | 23,000,000 | 4,000,000 |
Decrease in common stock for purchase of subsidiary shares | 0 | 10,000,000 | 12,000,000 | 13,000,000 |
Net income attributable to common shareowners after transfers to noncontrolling interests | 1,542,000,000 | 1,670,000,000 | 2,979,000,000 | 2,884,000,000 |
Accelerated Stock Repurchase [Member] | ||||
Common Stock repurchased | 2,250,000,000 | |||
Redeemable Noncontrolling Interest [Member] | ||||
Net income, Total Equity | 3,000,000 | 1,000,000 | 4,000,000 | 7,000,000 |
Dividends attributable to noncontrolling interest | 0 | 0 | 3,000,000 | 3,000,000 |
Sale/(purchase) of subsidiary shares from noncontrolling interest | 1,000,000 | 0 | 1,000,000 | 0 |
Redeemable noncontrolling interest | 0 | 6,000,000 | 0 | 31,000,000 |
Foreign currency translation, net | (2,000,000) | 2,000,000 | (9,000,000) | 0 |
Redeemable noncontrolling interest fair value adjustment | (1,000,000) | 0 | 3,000,000 | 0 |
Shareowners' Equity [Member] | ||||
Common Stock issued under employee plans | 112,000,000 | 125,000,000 | 237,000,000 | 290,000,000 |
Common Stock repurchased | 0 | 335,000,000 | 3,000,000,000 | 670,000,000 |
Dividends on Common Stock | 543,000,000 | 512,000,000 | 1,096,000,000 | 1,026,000,000 |
Dividends on ESOP Common Stock | 18,000,000 | 18,000,000 | 37,000,000 | 36,000,000 |
Dividends attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Sale/(purchase) of subsidiary shares from noncontrolling interest | 0 | 10,000,000 | (11,000,000) | 9,000,000 |
Acquisition of noncontrolling interest | 0 | 0 | 0 | 0 |
Disposition noncontrolling interest | 0 | 0 | 0 | 0 |
Redeemable noncontrolling interest | 1,000,000 | 0 | (3,000,000) | 0 |
Stockholders' Equity, Other | 1,000,000 | 0 | 0 | 0 |
Noncontrolling Interest [Member] | ||||
Common Stock issued under employee plans | 0 | 0 | 0 | 0 |
Common Stock repurchased | 0 | 0 | 0 | 0 |
Dividends on Common Stock | 0 | 0 | 0 | 0 |
Dividends on ESOP Common Stock | 0 | 0 | 0 | |
Dividends attributable to noncontrolling interest | 61,000,000 | 44,000,000 | 116,000,000 | 100,000,000 |
Sale/(purchase) of subsidiary shares from noncontrolling interest | 4,000,000 | 30,000,000 | (10,000,000) | 6,000,000 |
Acquisition of noncontrolling interest | 1,000,000 | 0 | 173,000,000 | 0 |
Disposition noncontrolling interest | 0 | (3,000,000) | 3,000,000 | (3,000,000) |
Redeemable noncontrolling interest | (1,000,000) | (9,000,000) | 5,000,000 | (38,000,000) |
Stockholders' Equity, Other | $ 1,000,000 | $ 0 | $ 1,000,000 | $ 0 |
Shareowners' Equity and Nonco57
Shareowners' Equity and Noncontrolling Interest (Reclass and Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (1,278) | $ (1,278) | $ (1,718) | $ (1,051) | ||||
Accumulated other comprehensive (loss) income | (6,577) | $ (2,403) | (6,577) | $ (2,403) | (7,211) | (6,661) | $ (2,941) | $ (2,880) |
Other Comprehensive (Loss) Income , before Reclassifications, Net | 488 | 464 | (220) | 332 | ||||
Amounts reclassified, pretax | 236 | 111 | 480 | 212 | ||||
Tax (benefit) expense reclassified | 684 | 359 | 1,242 | 926 | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated other comprehensive (loss) income | (224) | (43) | (224) | (43) | (300) | (209) | (129) | (79) |
Other Comprehensive (Loss) Income , before Reclassifications, Net | 49 | 80 | (83) | 15 | ||||
Amounts reclassified, pretax | 43 | 13 | 100 | 31 | ||||
Tax (benefit) expense reclassified | 16 | 7 | 32 | 10 | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Tax (benefit) expense reclassified | 90 | 37 | 176 | 67 | ||||
Accumulated Translation Adjustment [Member] | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated other comprehensive (loss) income | 495 | 495 | 71 | 170 | ||||
Other Comprehensive (Loss) Income , before Reclassifications, Net | 439 | 424 | (226) | 322 | ||||
Amounts reclassified, pretax | 1 | 0 | (1) | 3 | ||||
Tax (benefit) expense reclassified | 0 | 0 | 0 | 0 | ||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | (5,405) | (5,405) | (5,537) | (5,709) | ||||
Accumulated other comprehensive (loss) income | (3,127) | (3,127) | (3,184) | (3,267) | ||||
Other Comprehensive (Loss) Income , before Reclassifications, Net | (4) | (12) | 31 | 1 | ||||
Amounts reclassified, pretax | 218 | 104 | 435 | 208 | ||||
Tax (benefit) expense reclassified | 82 | 35 | 162 | 69 | ||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated other comprehensive (loss) income | 330 | 272 | 330 | 272 | $ 344 | $ 308 | $ 301 | $ 296 |
Other Comprehensive (Loss) Income , before Reclassifications, Net | 4 | (28) | 58 | (6) | ||||
Amounts reclassified, pretax | (26) | (6) | (54) | (30) | ||||
Tax (benefit) expense reclassified | $ (8) | $ (5) | $ (18) | $ (12) |
Shareowners' Equity and Nonco58
Shareowners' Equity and Noncontrolling Interest Shareowners' Equity and Noncontrolling Interest (Accelerated Stock Repurchase) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
ASR Aggregate Purchase Price | $ 2,650 | $ 2,650 | ||
ASR Shares Repurchased | 18,600,000 | |||
ASR, Initial Price Paid Per Share | $ 121.24 | |||
ASR, Reduction to Shareowner's Equity | $ 0 | $ 335 | $ 3,000 | $ 670 |
Accelerated Stock Repurchase [Member] | ||||
ASR amount included in APIC to be reclassified to treasury stock | $ 398 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Service and Product Warranties and Product Performance Guarantees [Abstract] | ||
Balance as of January 1 | $ 1,313 | $ 1,360 |
Warranties and performance guarantees issued | 132 | 121 |
Settlements made | 141 | 168 |
Other | (19) | (9) |
Balance as of June 30 | $ 1,285 | $ 1,304 |
Contingent Liabilities (Details
Contingent Liabilities (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total | Total |
Department of Justice Lawsuit Against Pratt and Whitney [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency Lawsuit Filing Date | 1,999 | |
Loss Contingency Allegations | As previously disclosed, the United States Government sued us in 1999 in the United States District Court for the Southern District of Ohio, claiming that Pratt & Whitney violated the civil False Claims Act and common law. The claims relate to the “Fighter Engine Competition” between Pratt & Whitney's F100 engine and General Electric's F110 engine. The government alleged that it overpaid for F100 engines under contracts awarded by the U.S. Air Force in fiscal years 1985 through 1990 because Pratt & Whitney inflated its estimated costs for some purchased parts and withheld data that would have revealed the overstatements. At trial, which ended in April 2005, the government claimed Pratt & Whitney's liability to be approximately $624 million. | |
Loss Contingency Actions Taken By Court Arbitrator Or Mediator | On August 1, 2008, the trial court held that the Air Force had not suffered any actual damages because Pratt & Whitney had made significant price concessions after the alleged overstatements were made. However, the trial court judge found that Pratt & Whitney violated the False Claims Act due to inaccurate statements contained in its 1983 initial engine pricing proposal. In the absence of actual damages, the trial court awarded the government the maximum civil penalty of approximately $7 million, or $10,000 for each of the 709 invoices Pratt & Whitney submitted in 1989 and later under the contracts. | |
Loss Contingency Actions Taken By Plaintiff And Defendant | In September 2008, both the government and UTC appealed the decision to the United States Court of Appeals for the Sixth Circuit. In November 2010, the Sixth Circuit affirmed Pratt & Whitney's liability for the civil penalty under the False Claims Act, but remanded the case to the trial court for further proceedings on the issues of False Claims Act damages and common law liability and damages. | |
Loss Contingency, Additional Actions Taken by Court, Arbitrator or Mediator | On June 18, 2012, the trial court found that Pratt & Whitney had breached obligations imposed by common law based on the same conduct with respect to which the court previously found liability under the False Claims Act. Under the common law claims, the U.S. Air Force seeks damages for events occurring before March 3, 1989, which are not recoverable under the False Claims Act. | |
Loss Contingency, Settlement Agreement, Terms | On June 17, 2013, the trial court awarded the government approximately $473 million in damages and penalties, plus prejudgment interest in an amount to be determined. On July 1, 2013, the trial court, after determining the amount of prejudgment interest, entered judgment in favor of the government in the amount of approximately $664 million. The trial court also awarded post-judgment interest on the full amount of the judgment to accrue from July 2, 2013, at the federal variable interest rate determined pursuant to 28 U.S.C. § 1961. The judgment included four different components: (1) common law damages of approximately $109 million; (2) prejudgment interest on common law damages of approximately $191 million; (3) False Claims Act treble damages of approximately $357 million; and (4) penalties of approximately $7 million. The penalty component of the judgment previously was affirmed by the United States Court of Appeals in 2010. | |
Loss Contingency Damages Sought | 624 | |
Loss Contingency, Period of Occurrence | fiscal years 1985 through 1990 | |
Loss Contingency Actions Taken By Defendant | We filed an appeal from the judgment to the United States Court of Appeals for the Sixth Circuit on August 26, 2013. On April 6, 2015, the Sixth Circuit reversed the trial court’s decision and vacated the prior damages award, noting that the government did not prove any damages. The Court rejected as a matter of law the evidence submitted by the government on damages and remanded the case to the trial court to decide in the first instance whether the government should have another opportunity to prove that it suffered any actual damages. We continue to believe that the government suffered no actual damages as a result of the inaccurate statements made in 1983, and continue not to accrue a reserve beyond the approximately $7 million of penalties referenced above and post-judgment interest on such penalties, which in the aggregate are not material. | |
Loss Contingency Settlement Agreement Date | 6/17/2013 | |
Loss Contingency Damages Awarded Value, Not Including Interest | $ 473 | |
Loss Contingency, Damages Awarded, Value | $ 664 | |
U.S. Defense Contract Management Agency Claim Against Pratt & Whitney [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency Lawsuit Filing Date | December 24, 2013 | |
Loss Contingency Allegations | By letter dated December 24, 2013, a Divisional Administrative Contracting Officer of the United States Defense Contract Management Agency asserted a claim and demand for payment of approximately $211 million against Pratt & Whitney. 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 | $211 million | |
Loss Contingency Actions Taken By Defendant | We believe this claim is without merit. On March 18, 2014, Pratt & Whitney filed an appeal to the Armed Services Board of Contract Appeals. | |
German Tax Office Against Otis [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency Lawsuit Filing Date | August 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 $241 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 $133 million). | |
Loss Contingency Actions Taken By Plaintiff And Defendant | On August 3, 2012, we filed suit in the local German Tax Court (Berlin-Brandenburg). In 2008 the German Federal Tax Court (FTC) denied benefits to another taxpayer in a case involving a German tax law relevant to our reorganization. The determination of the FTC on this other matter was appealed to the European Court of Justice (ECJ) to determine if the underlying German tax law is violative of European Union principles. On September 17, 2009, the ECJ issued an opinion in this case that is generally favorable to the other taxpayer and referred the case back to the FTC for further consideration of certain related issues. In May 2010, the FTC released its decision, in which it resolved certain tax issues that may be relevant to our suit and remanded the case to a lower court for further development. In 2012, the lower court decided in favor of the other taxpayer and the German Government again appealed the findings to the FTC. In November 2014, the FTC ruled in favor of the German Government, and against the other taxpayer. We believe that the FTC decision in the case involving the other taxpayer is not determinative of the outcome in our case, and we will continue vigorously to litigate the matter. However, in light of the FTC decision in the case involving the other taxpayer, we fully accrued for the matter during the quarter ended December 31, 2014. | |
Loss Contingency Damages Sought | €215 million (approximately $241 million) | |
Loss Contingency Actions Taken By Defendant | While we continue to litigate the matter at the local German Tax Court, UTC made tax and interest payments to German tax authorities of €20 million (approximately $22 million) in the quarter ended March 31, 2015 and €217 million (approximately $236 million) in the quarter ended June 30, 2015 to avoid additional interest accruals pending final resolution of this matter. | |
Loss Contingency, Interest | €118 million (approximately $133 million) | |
Loss Contingency, Interest Paid | €217 million (approximately $236 million) | €20 million (approximately $22 million) |
Segment Financial Data (Table)
Segment Financial Data (Table) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 16,333 | $ 17,191 | $ 30,874 | $ 31,936 |
Operating profit | $ 2,552 | $ 2,355 | $ 4,826 | $ 4,453 |
Operating profit margin | 15.60% | 13.70% | 15.60% | 13.90% |
Otis [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 3,098 | $ 3,365 | $ 5,843 | $ 6,320 |
Operating profit | $ 627 | $ 693 | $ 1,154 | $ 1,263 |
Operating profit margin | 20.20% | 20.60% | 19.80% | 20.00% |
UTC Climate, Controls & Security [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 4,454 | $ 4,429 | $ 8,306 | $ 8,280 |
Operating profit | $ 823 | $ 815 | $ 1,552 | $ 1,352 |
Operating profit margin | 18.50% | 18.40% | 18.70% | 16.30% |
Pratt & Whitney [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 3,677 | $ 3,592 | $ 7,009 | $ 6,921 |
Operating profit | $ 487 | $ 432 | $ 906 | $ 820 |
Operating profit margin | 13.20% | 12.00% | 12.90% | 11.80% |
UTC Aerospace Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 3,632 | $ 3,636 | $ 7,180 | $ 7,086 |
Operating profit | $ 580 | $ 602 | $ 1,149 | $ 1,192 |
Operating profit margin | 16.00% | 16.60% | 16.00% | 16.80% |
Sikorsky [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 1,691 | $ 2,384 | $ 2,958 | $ 3,745 |
Operating profit | $ 165 | $ (317) | $ 257 | $ (231) |
Operating profit margin | 9.80% | (13.30%) | 8.70% | (6.20%) |
Total Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 16,552 | $ 17,406 | $ 31,296 | $ 32,352 |
Operating profit | $ 2,682 | $ 2,225 | $ 5,018 | $ 4,396 |
Operating profit margin | 16.20% | 12.80% | 16.00% | 13.60% |
Eliminations and other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | $ (219) | $ (215) | $ (422) | $ (416) |
Operating profit | (10) | 249 | 38 | 288 |
General corporate expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 0 | 0 | 0 | 0 |
Operating profit | $ (120) | $ (119) | $ (230) | $ (231) |
Accounting Pronouncements (Deta
Accounting Pronouncements (Details) | 6 Months Ended |
Jun. 30, 2015 | |
ASU 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers." This ASU is intended to clarify the principles for recognizing revenue by removing inconsistencies in revenue requirements; providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and providing more useful information to users of financial statements through improved revenue disclosure requirements. In April 2015, the FASB voted to defer the effective date of the new revenue recognition standard by one year. As a result, the provisions of this ASU are now effective for interim and annual periods beginning after December 15, 2017. We are currently evaluating the impact of this ASU. |
ASU 2015-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In February 2015, the FASB issued ASU No. 2015-02, "Amendments to the Consolidation Analysis." This update is intended to improve targeted areas of consolidation guidance by simplifying the consolidation evaluation process, and by placing more emphasis on risk of loss when determining a controlling financial interest. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2015. We are currently evaluating the impact of this ASU. |
ASU 2015-03 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This ASU more closely aligns the treatment of debt issuance costs with debt discounts and premiums and requires debt issuance costs be presented as a direct deduction from the carrying amount of the related debt. The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. This ASU is not expected to have a significant impact on our financial statements or disclosures. |