Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
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 | 836,432,010 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Sales: | |||
Product sales | $ 39,801 | $ 41,545 | $ 40,500 |
Service sales | 16,297 | 16,355 | 16,100 |
Net Sales | 56,098 | 57,900 | 56,600 |
Costs and Expenses: | |||
Cost of products sold | 29,771 | 30,367 | 30,051 |
Cost of services sold | 10,660 | 10,531 | 10,417 |
Research and development | 2,279 | 2,475 | 2,342 |
Selling, general and administrative | 5,886 | 6,172 | 6,364 |
Total costs and expenses | 48,596 | 49,545 | 49,174 |
Other (expense) income, net | (211) | ||
Other (expense) income, net | 1,238 | 1,123 | |
Operating profit | 7,291 | 9,593 | 8,549 |
Interest expense, net | (824) | (881) | (895) |
Income from continuing operations before income taxes | 6,467 | 8,712 | 7,654 |
Income tax expense | 2,111 | 2,244 | 1,999 |
Net income from continuing operations | 4,356 | 6,468 | 5,655 |
Less: Noncontrolling interest in subsidiaries' earnings from continuing operations | 360 | 402 | 390 |
Income from continuing operations attributable to common shareowners | 3,996 | 6,066 | 5,265 |
Discontinued operations (Note 3): | |||
Income from operations | 252 | 175 | 721 |
Gain (loss) on disposal | (6,042) | 0 | 33 |
Income tax expense | 2,684 | 20 | 234 |
Income from discontinued operations | 3,610 | 155 | 454 |
Less: Noncontrolling interest in subsidiaries' earnings (loss) from discontinued operations | (2) | 1 | (2) |
Income from discontinued operations attributable to common shareowners | 3,612 | 154 | 456 |
Net income attributable to common shareowners | $ 7,608 | $ 6,220 | $ 5,721 |
Earnings Per Share of Common Stock - Basic: | |||
Net income from continuing operations attributable to common shareowners | $ 4.58 | $ 6.75 | $ 5.84 |
Net income attributable to common shareowners | 8.72 | 6.92 | 6.35 |
Earnings Per Share of Common Stock - Diluted: | |||
Net income from continuing operations attributable to common shareowners | 4.53 | 6.65 | 5.75 |
Net income attributable to common shareowners | 8.61 | 6.82 | 6.25 |
Dividends Per Share of Common Stock | $ 2.560 | $ 2.360 | $ 2.195 |
Weighted average number of shares outstanding: | |||
Basic shares | 872,700,000 | 898,300,000 | 901,000,000 |
Diluted shares | 883,200,000 | 911,600,000 | 915,100,000 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income from continuing operations | $ 4,356 | $ 6,468 | $ 5,655 |
Net income from discontinued operations | 3,610 | 155 | 454 |
Net income | 7,966 | 6,623 | 6,109 |
Foreign currency translation adjustments | |||
Foreign currency translation adjustments arising during period | (1,502) | (1,302) | (523) |
Reclassification adjustments for loss (gain) on sale of an investment in a foreign entity recognized in net income | (42) | (7) | (25) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Parent | (1,460) | (1,295) | (498) |
Change in pension and post-retirement benefit plans | |||
Net actuarial (loss) gain arising during the period | (284) | (4,362) | 3,987 |
Prior service cost arising during period | 37 | 5 | 225 |
Pension and post-retirement benefit plans - Other | 326 | 121 | 50 |
Amortization of actuarial loss and prior service credit | 867 | 416 | 906 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, Portion Attributable to Parent | (872) | 3,830 | (4,718) |
Tax (expense) benefit | (298) | 1,388 | (1,735) |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | (574) | 2,442 | (2,983) |
Unrealized gain (loss) on available-for-sale securities | |||
Unrealized holding gain arising during period | 28 | 35 | 332 |
Less: reclassification adjustments for gain included in Other income, net | 54 | 20 | 91 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | (26) | 15 | 241 |
Tax (expense) benefit | (11) | 3 | 90 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | (15) | 12 | 151 |
Change in unrealized cash flow hedging | |||
Unrealized cash flow hedging (loss) gain arising during period | (415) | (263) | (134) |
Loss (gain) reclassified into Product sales | (234) | (96) | (25) |
Gain reclassified into Other income, net | 0 | 0 | (2) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Portion Attributable to Parent | (181) | (167) | (111) |
Tax benefit (expense) | (51) | (37) | (29) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | (130) | (130) | (82) |
Other comprehensive (loss) income, net of tax | (1,031) | (3,855) | 2,554 |
Comprehensive income | 6,935 | 2,768 | 8,663 |
Less: Comprehensive income attributable to noncontrolling interest | 285 | 329 | 374 |
Comprehensive income atrributable to common shareowners | $ 6,650 | $ 2,439 | $ 8,289 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 7,075 | $ 5,229 |
Accounts receivable (net of allowance for doubtful accounts of $504 and $477) | 10,653 | 10,448 |
Inventories and contracts in progress, net | 8,135 | 7,642 |
Future income tax benefits, current | 0 | 1,923 |
Assets held for sale | 0 | 4,868 |
Other assets, current | 843 | 1,373 |
Total Current Assets | 26,706 | 31,483 |
Customer financing assets | 1,018 | 958 |
Future income tax benefits | 1,961 | 1,491 |
Fixed assets, net | 8,732 | 8,592 |
Goodwill | 27,301 | 27,448 |
Intangible assets, net | 15,603 | 15,528 |
Other assets | 6,163 | 5,706 |
Total Assets | 87,484 | 91,206 |
Liabilities and Equity | ||
Short-term borrowings | 926 | 126 |
Accounts payable | 6,875 | 6,250 |
Accrued liabilities | 14,638 | 12,527 |
Liabilities held for sale | 0 | 2,781 |
Long-term debt currently due | 179 | 1,791 |
Total Current Liabilities | 22,618 | 23,475 |
Long-term debt | 19,320 | 17,784 |
Future pension and postretirement benefit obligations | 6,022 | 6,681 |
Other long-term liabilities | 10,558 | 10,562 |
Total Liabilities | $ 58,518 | $ 58,502 |
Commitments and contingent liabilities (Notes 5 and 17) | ||
Redeemable noncontrolling interest | $ 122 | $ 140 |
Capital Stock: | ||
Preferred Stock, $1 par value; 250,000 shares authorized; None issued or outstanding | 0 | 0 |
Common Stock, $1 par value; 4,000,000 shares authorized; 1,438,497 and 1,423,684 shares issued | 16,033 | 15,300 |
Treasury Stock— 600,153 and 514,309 common shares at average cost | 30,907 | 21,922 |
Retained earnings | 49,956 | 44,611 |
Unearned ESOP shares | 105 | 115 |
Total Accumulated other comprehensive loss | (7,619) | (6,661) |
Total Shareowners' Equity | 27,358 | 31,213 |
Noncontrolling interest | 1,486 | 1,351 |
Total Equity | 28,844 | 32,564 |
Total Liabilities and Equity | $ 87,484 | $ 91,206 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 504 | $ 477 |
Preferred Stock, par value | $ 1 | $ 1 |
Preferred Stock. shares authorized | 250,000 | 250,000 |
Preferred Stock, shares issued | 0 | 0 |
Common Stock, par value | $ 1 | $ 1 |
Common Stock, shares authorized | 4,000,000 | 4,000,000 |
Common Stock, Shares, Issued | 1,438,497 | 1,423,684 |
Treasury Stock, shares | 600,153 | 514,309 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities of Continuing Operations: | |||
Income from continuing operations | $ 4,356 | $ 6,468 | $ 5,655 |
Adjustments to reconcile income from continuing operations to net cash flows provided by operating activities of continuing operations: | |||
Depreciation and amortization | 1,863 | 1,820 | 1,735 |
Deferred income tax provision | 662 | 403 | 268 |
Stock compensation cost | 158 | 219 | 250 |
Canadian government settlement | 867 | 0 | 0 |
Change in: | |||
Accounts receivable | 438 | (111) | 476 |
Inventories and contracts in progress | 844 | 636 | 465 |
Other current assets | 55 | 115 | (72) |
Accounts payable and accrued liabilities | 490 | (89) | 1,023 |
Global pension contributions | 147 | 517 | 108 |
Other operating activities, net | 214 | 670 | 640 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 6,698 | 6,994 | 7,314 |
Investing Activities of Continuing Operations: | |||
Capital expenditures | 1,652 | 1,594 | 1,569 |
Increase in customer financing assets | 286 | 202 | 242 |
Decrease in customer financing assets | 117 | 331 | 108 |
Investments in businesses | 538 | 402 | 151 |
Dispositions of businesses | 200 | 344 | 1,560 |
Proceeds from Sale of Finance Receivables | 437 | 593 | 722 |
Payments for (Proceeds from) Derivative Instrument, Investing Activities | (160) | (93) | 323 |
Other investing activities, net | 91 | 169 | (16) |
Net cash flows used in investing activities of continuing operations | (2,527) | (2,192) | (1,323) |
Financing Activities of Continuing Operations: | |||
Issuance of long-term debt | 1,744 | 98 | 89 |
Repayment of long-term debt | 1,764 | 304 | 2,864 |
Increase (decrease) in short-term borrowings, net | 795 | (346) | (113) |
Proceeds from Issuance of Common Stock - Equity unit settlement | 1,100 | 0 | 0 |
Common Stock issued under employee stock plans | 41 | 187 | 378 |
Dividends paid on Common Stock | 2,184 | 2,048 | 1,908 |
Repurchase of Common Stock | 10,000 | 1,500 | 1,200 |
Other financing activities, net | (508) | (334) | (313) |
Net cash flows (used in) provided by financing activities of continuing operations | (10,776) | (4,247) | (5,931) |
Discontinued Operations: | |||
Net cash (used in) provided by operating activities | (372) | 342 | (437) |
Net cash provided by investing activities | 9,000 | (113) | 210 |
Cash Provided by (Used in) Financing Activities, Discontinued Operations | (9) | (12) | (9) |
Net cash flows (used in) provided by discontinued operations | 8,619 | 217 | (236) |
Cash and Cash Equivalents, end of period | 7,075 | 5,235 | 4,619 |
Effect of foreign exchange rate changes on cash and cash equivalents | (174) | (156) | (41) |
Net increase (decrease) in cash and cash equivalents | 1,840 | 616 | (217) |
Cash and Cash Equivalents, beginning of period | 5,235 | 4,619 | 4,836 |
Cash and Cash Equivalents, end of period | 7,075 | 5,235 | 4,619 |
Less: Cash and cash equivalents of businesses held for sale | 0 | 6 | 12 |
Cash and cash equivalents of continuing operations, end of year | 7,075 | 5,229 | 4,607 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid, net of amounts capitalized | 1,057 | 1,076 | 1,045 |
Income taxes paid, net of refunds | 2,060 | 2,024 | 2,789 |
Domestic Defined Benefit Plan Stock Contributions By Employer | $ 250 | $ 0 | $ 0 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Unearned ESOP Shares [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Noncontrolling Interest | Redeemable Non-controlling Interest [Member] |
Beginning Balance at Dec. 31, 2012 | $ 27,069 | $ 13,976 | $ (19,251) | $ 36,776 | $ (139) | $ (5,448) | $ 1,155 | $ 238 |
Comprehensive income (loss): | ||||||||
Net income | 6,109 | 5,721 | 388 | |||||
Redeemable noncontrolling interest in subsidiaries' earnings | (5) | (5) | 5 | |||||
Other comprehensive income (loss), net of tax | 2,563 | 2,568 | (5) | (9) | ||||
Common Stock issued under employee plans, net of tax benefit | 889 | 837 | 20 | 19 | 13 | |||
Common Stock repurchased | 1,200 | 1,200 | ||||||
Dividends on Common Stock | 1,908 | 1,908 | ||||||
Dividends on ESOP Common Stock | 69 | 69 | ||||||
Dividends attributable to noncontrolling interest | 355 | 355 | 5 | |||||
Purchase of subsidiary shares from noncontrolling interest | 116 | 49 | 67 | 3 | ||||
Sale of subsidiary shares in noncontrolling interest | 243 | 243 | ||||||
Disposition of noncontrolling interest | 7 | 7 | 82 | |||||
Redeemable noncontrolling interest reclassification to noncontrolling interest | 17 | 17 | (17) | |||||
Other | (11) | (11) | (16) | |||||
Ending Balance at Dec. 31, 2013 | 33,219 | 14,764 | (20,431) | 40,539 | (126) | (2,880) | 1,353 | 111 |
Comprehensive income (loss): | ||||||||
Net income | 6,623 | 6,220 | 403 | |||||
Redeemable noncontrolling interest in subsidiaries' earnings | (9) | (9) | 9 | |||||
Other comprehensive income (loss), net of tax | (3,848) | (3,781) | (67) | (7) | ||||
Common Stock issued under employee plans, net of tax benefit | 598 | 607 | 9 | (29) | 11 | |||
Common Stock repurchased | 1,500 | 1,500 | ||||||
Dividends on Common Stock | 2,048 | 2,048 | ||||||
Dividends on ESOP Common Stock | 71 | 71 | ||||||
Dividends attributable to noncontrolling interest | 318 | 318 | $ 3 | |||||
Purchase of subsidiary shares from noncontrolling interest | 93 | 75 | 18 | |||||
Sale of subsidiary shares in noncontrolling interest | 15 | 4 | 11 | |||||
Redeemable noncontrolling interest reclassification to noncontrolling interest | (16) | (16) | $ 16 | |||||
Other | 12 | 12 | 14 | |||||
Ending Balance at Dec. 31, 2014 | 32,564 | 15,300 | (21,922) | 44,611 | (115) | (6,661) | 1,351 | 140 |
Comprehensive income (loss): | ||||||||
Net income | 7,966 | 7,608 | 358 | |||||
Redeemable noncontrolling interest in subsidiaries' earnings | (4) | (4) | 4 | |||||
Other comprehensive income (loss), net of tax | (1,019) | (958) | (61) | (12) | ||||
Common Stock issued under employee plans, net of tax benefit | 394 | 379 | 7 | (2) | 10 | |||
Common stock contributed to defined benefit plans | 250 | 112 | 138 | |||||
Common Stock repurchased | 10,000 | 870 | 9,130 | |||||
Dividends on Common Stock | 2,184 | 2,184 | ||||||
Dividends on ESOP Common Stock | 75 | 75 | ||||||
Dividends attributable to noncontrolling interest | 337 | 337 | 3 | |||||
Purchase of subsidiary shares from noncontrolling interest | 17 | 12 | 5 | 9 | ||||
Sale of subsidiary shares in noncontrolling interest | 39 | 24 | 15 | |||||
Acquisition of noncontrolling interest | 173 | 173 | ||||||
Disposition of noncontrolling interest | 4 | 4 | ||||||
Ending Balance at Dec. 31, 2015 | 28,844 | 16,033 | $ (30,907) | 49,956 | $ (105) | $ (7,619) | $ 1,486 | 122 |
Comprehensive income (loss): | ||||||||
Long Term Debt Remarketing, Proceeds | 1,100 | $ 1,100 | ||||||
Redeemable noncontrolling interest accretion | $ (2) | $ (2) | $ 2 |
Consolidated Statement of Chan8
Consolidated Statement of Changes in Equity (Parenthetical) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock issued under employee plans, shares | 3.7 | 6.2 | 10.4 |
Tax benefit from Common Stock issued under employee plans | $ 64 | $ 103 | $ 115 |
Common Stock repurchased, shares | 88.7 | 13.5 | 12.6 |
Long Term Debt Remarketing, Number of Shares Issued | 11.3 | ||
Stock Issued During Period, Shares, Employee Benefit Plan | 2.7 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
SEC Schedule Article 12-09 Valuation And Qualifying Accounts [Abstract] | |
Schedule Of Valuation And Qualifying Accounts Disclosure [Text Block] | SCHEDULE II UNITED TECHNOLOGIES CORPORATION AND SUBSIDIARIES Valuation and Qualifying Accounts Three years ended December 31, 2015 (Millions of Dollars) Allowances for Doubtful Accounts and Other Customer Financing Activity: Balance December 31, 2012 $ 513 Provision charged to income 74 Doubtful accounts written off (net) (68 ) Other adjustments 19 Balance December 31, 2013 538 Provision charged to income 93 Doubtful accounts written off (net) (91 ) Other adjustments (46 ) Balance December 31, 2014 494 Provision charged to income 137 Doubtful accounts written off (net) (59 ) Other adjustments (19 ) Balance December 31, 2015 $ 553 Future Income Tax Benefits—Valuation allowance: Balance December 31, 2012 $ 904 Additions charged to income tax expense 134 Additions charged to goodwill, due to acquisitions 12 Reductions credited to income tax expense (52 ) Other adjustments (56 ) Balance December 31, 2013 942 Additions charged to income tax expense 91 Reductions credited to income tax expense (55 ) Other adjustments 1 (366 ) Balance December 31, 2014 612 Additions charged to income tax expense 42 Additions charged to goodwill, due to acquisitions 7 Reductions credited to income tax expense (41 ) Other adjustments 1 (29 ) Balance December 31, 2015 $ 591 Note 1: Included in Other adjustments in the table above are adjustments to valuation allowances associated with an agreement with a state taxing authority for the monetization of tax credits. |
Summary of Accounting Principle
Summary of Accounting Principles | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Accounting Principles | SUMMARY OF ACCOUNTING PRINCIPLES The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. On November 6, 2015, we completed the sale of Sikorsky to Lockheed Martin Corp. Accordingly, the results of operations and the related cash flows of Sikorsky have been reclassified to Discontinued Operations in our Consolidated Statements of Operations, Comprehensive Income and Cash Flows for all periods presented. The assets and liabilities of Sikorsky have been reclassified to Assets held for sale and Liabilities held for sale, respectively, in our Consolidated Balance Sheet as of December 31, 2014. Cash flows from the operation of Sikorsky are included in our results through the date of sale to Lockheed Martin Corp. See Note 3 for further discussion. Consolidation. The Consolidated Financial Statements include the accounts of United Technologies Corporation (UTC) and its controlled subsidiaries. Intercompany transactions have been eliminated. Cash and Cash Equivalents. Cash and cash equivalents includes cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less. On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions or divestitures or other legal obligations. As of December 31, 2015 and 2014 , the amount of such restricted cash was approximately $45 million and $255 million , respectively. Accounts Receivable. Current and long-term accounts receivable as of December 31, 2015 include retainage of $141 million and unbilled receivables of $2,318 million , which includes approximately $1,091 million of unbilled receivables under commercial aerospace long-term aftermarket contracts. Current and long-term accounts receivable as of December 31, 2014 include retainage of $147 million and unbilled receivables of $1,863 million , which includes approximately $819 million of unbilled receivables under commercial aerospace long-term aftermarket contracts. See Note 5 for discussion of commercial aerospace industry assets and commitments. Retainage represents amounts that, pursuant to the applicable contract, are not due until project completion and acceptance by the customer. Unbilled receivables represent revenues that are not currently billable to the customer under the terms of the contract. These items are expected to be billed and collected in the normal course of business. Marketable Equity Securities. Equity securities that have a readily determinable fair value and that we do not intend to trade are classified as available-for-sale and carried at fair value. Unrealized holding gains and losses are recorded as a separate component of shareowners' equity, net of deferred income taxes. Inventories and Contracts in Progress. Inventories and contracts in progress are stated at the lower of cost or estimated realizable value and are primarily based on first-in, first-out (FIFO) or average cost methods; however, certain UTC Aerospace Systems and UTC Climate, Controls & Security entities use the last-in, first-out (LIFO) method. If inventories that were valued using the LIFO method had been valued under the FIFO method, they would have been higher by $127 million and $130 million at December 31, 2015 and 2014 , respectively. Costs accumulated against specific contracts or orders are at actual cost. Valuation reserves for excess, obsolete, and slow-moving inventory are estimated by comparing the inventory levels of individual parts to both future sales forecasts or production requirements and historical usage rates in order to identify inventory where the resale value or replacement value is less than inventoriable cost. Other factors that management considers in determining the adequacy of these reserves include whether individual inventory parts meet current specifications and cannot be substituted for a part currently being sold or used as a service part, overall market conditions, and other inventory management initiatives. Manufacturing costs are allocated to current production and firm contracts. Equity Method Investments. Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other assets on the Consolidated Balance Sheet. Under this method of accounting, our share of the net earnings or losses of the investee is included in Other income, net on the Consolidated Statement of Operations since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. Goodwill and Intangible Assets. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Goodwill and indefinite-lived intangible assets are subject to annual impairment testing using the guidance and criteria described in the Intangibles - Goodwill and Other Topic of the FASB ASC. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. Intangible assets consist of service portfolios, patents, trademarks/tradenames, customer relationships and other intangible assets including a collaboration asset established in connection with the restructuring of participants' interests in IAE as discussed further in Note 2. Acquired intangible assets are recognized at fair value in purchase accounting and then amortized to cost of sales and selling, general & administrative expenses over the applicable useful lives. Also included within other intangible assets are commercial aerospace payments made to secure certain contractual rights to provide product on new aircraft platforms. Consideration paid on these contractual commitments is capitalized when it is no longer conditional. Useful lives of finite-lived intangible assets are estimated based upon the nature of the intangible asset and the industry in which the intangible asset is used. These intangible assets are amortized based on the pattern in which the economic benefits of the intangible assets are consumed. For both our commercial aerospace collaboration assets and exclusivity arrangements, the pattern of economic benefit generally results in lower amortization during the development period with increasing amortization as programs enter full rate production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined, a straight-line amortization method is used. The range of estimated useful lives is as follows: Collaboration assets 30 years Customer relationships and related programs 1 to 40 years Purchased service contracts 5 to 25 years Patents & trademarks 4 to 40 years Exclusivity assets 5 to 25 years Other Long-Lived Assets. We evaluate the potential impairment of other long-lived assets when appropriate. If the carrying value of other long-lived assets held and used exceeds the sum of the undiscounted expected future cash flows, the carrying value is written down to fair value. Long-Term Financing Receivables. Our long-term financing receivables primarily represent balances related to the aerospace businesses such as long-term trade accounts receivable, leases, and notes receivable. We also have other long-term receivables in 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 related to long-term aftermarket contracts, are principally amounts arising from the sale of goods and services with a contractual maturity date or realization period of greater than one year and are recognized as "Other assets" in our 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 Consolidated Balance Sheet. The following table summarizes the balance by class of aerospace business-related long-term receivables as of December 31, 2015 and 2014 : (dollars in millions) 2015 2014 Long-term trade accounts receivable $ 903 $ 651 Notes and leases receivable 469 381 Total long-term receivables $ 1,372 $ 1,032 We determine a receivable is impaired when, based on current information and events, it is probable that we will be unable to collect amounts due according to the contractual terms of the receivable agreement. Factors considered in assessing collectability and risk include, but are not limited to, examination of credit quality indicators and other evaluation measures, underlying value of any collateral or security interests, significant past due balances, historical losses, and existing economic conditions. We determine credit ratings for each customer in our portfolio based upon public information and information obtained directly from our customers. We conduct a review of customer credit ratings, published historical credit default rates for different rating categories, and multiple third party aircraft value publications as a basis to validate the reasonableness of the allowance for losses on these balances quarterly or when events and circumstances warrant. Customer credit ratings range from 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 13% and 9% of our long-term receivables were considered to bear high credit risk as of December 31, 2015 and 2014 , respectively. See Note 5 for further discussion of commercial aerospace industry assets and commitments. Reserves for credit losses on receivables relate to specifically identified receivables that are evaluated individually for impairment. For notes and leases receivable, we determine a specific reserve for exposure based on the difference between the carrying value of the receivable and the estimated fair value of the related collateral in connection with the evaluation of credit risk and collectability. For long-term trade accounts receivable, we evaluate credit risk and collectability individually to determine if an allowance is necessary. Our long-term receivables reflected in the table above, which include reserves of $18 million and $10 million as of December 31, 2015 and 2014 , respectively, are individually evaluated for impairment. At both December 31, 2015 and 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 impaired. Income Taxes. 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. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest expense has also been recognized. We recognize accrued interest related to unrecognized tax benefits in interest expense. Penalties, if incurred, would be recognized as a component of income tax expense. In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes . This ASU eliminates the requirement to present deferred tax assets and liabilities as current and noncurrent on the balance sheet. Instead, all deferred tax assets and liabilities are now classified as noncurrent. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. We have elected to prospectively adopt ASU 2015-17 as of December 31, 2015. See Note 11 for further information. Revenue Recognition. As a result of our diverse product and service mix and customer base, we use multiple revenue recognition practices. We recognize sales for products and services in accordance with the provisions of Staff Accounting Bulletin (SAB) Topic 13, Revenue Recognition, as applicable. Products and services included within the scope of this SAB Topic include heating, ventilating, air-conditioning and refrigeration systems, certain alarm and fire detection and suppression systems, commercially funded research and development contracts and certain aerospace components. Sales within the scope of this SAB Topic are recognized when persuasive evidence of an arrangement exists, product delivery has occurred or services have been rendered, pricing is fixed or determinable and collectability is reasonably assured. Subsequent changes in service contracts are accounted for prospectively. Contract Accounting and Separately Priced Maintenance and Extended Warranty Aftermarket Contracts: For our construction-type and certain production-type contracts, sales are recognized on a percentage-of-completion basis following contract accounting methods. Contracts consist of enforceable agreements which form the basis of our unit of accounting for measuring sales, accumulating costs and recording loss provisions as necessary. Contract accounting requires estimates of award fees and other sources of variable consideration as well as future costs over the performance period of the contract. Cost estimates also include the estimated cost of satisfying our offset obligations required under certain contracts. Cost estimates are subject to change and result in adjustments to margins on contracts in progress. The extent of progress toward completion on our long-term commercial aerospace equipment is measured using units of delivery or other contractual milestones. The extent of progress towards completion on our development and other cost reimbursement contracts in our aerospace businesses and elevator and escalator sales, installation, modernization and other construction contracts in our commercial businesses is measured using cost-to-cost based input measures. Contract costs include estimated inventoriable manufacturing, engineering, product warranty and product performance guarantee costs, as appropriate. For separately priced product maintenance and extended warranty aftermarket contracts, sales are recognized over the contract period. In the commercial businesses, sales are primarily recognized on a straight-line basis. In the aerospace businesses, sales are primarily recognized in proportion to cost as sufficient historical evidence indicates that costs of performing services under the contract are incurred on an other than straight-line basis. Loss provisions on original equipment contracts are recognized to the extent estimated contract costs exceed the estimated consideration from the products contemplated under the contractual arrangement. For new commitments, we generally record loss provisions at the earlier of contract announcement or contract signing except for certain requirements contracts under which losses are recorded upon receipt of the purchase order which obligates us to perform. For existing commitments, anticipated losses on contracts are recognized in the period in which losses become evident. Products contemplated under contractual arrangements include firm quantities of products sold under contract and, in the large commercial engine and wheels and brakes businesses, future highly probable sales of replacement parts required by regulation that are expected to be sold subsequently for incorporation into the original equipment. In the large commercial engine and wheels and brakes businesses, when the combined original equipment and aftermarket arrangements for each individual sales campaign are profitable, we record original equipment product losses, as applicable, at the time of delivery. We review our cost estimates on significant contracts on a quarterly basis, and for others, no less frequently than annually or when circumstances change and warrant a modification to a previous estimate. We record changes in contract estimates using the cumulative catch-up method in accordance with the Revenue Recognition Topic of the FASB ASC. Operating profits included significant net favorable changes in aerospace contract estimates of approximately $115 million in 2015 driven by several net favorable contract adjustments recorded throughout the year, largely at the Pratt & Whitney segment. Collaborations: Sales generated from engine programs, spare parts sales, and aftermarket business under collaboration arrangements are recorded consistent with our revenue recognition policies in our consolidated financial statements. Amounts attributable to our collaborators for their share of sales are recorded as cost of sales in our financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement of a collaborator's share of program costs is recorded as a reduction of the related expense item at that time. Cash Payments to Customers: UTC Climate, Controls & Security customarily offers its customers incentives to purchase products to ensure an adequate supply of its products in the distribution channels. The principal incentive program provides reimbursements to distributors for offering promotional pricing for our products. We account for incentive payments made as a reduction in sales. In our aerospace businesses, we may make participation payments to certain customers to secure certain contractual rights. To the extent these rights are incremental and are supported by the incremental cash flows obtained, they are capitalized as intangible assets. Otherwise, such payments are expensed. We classify the subsequent amortization of the capitalized acquired intangible assets from our customers as a reduction in sales. Contractually stated prices in arrangements with our customers that include the acquisition of intangible rights within the scope of the Intangibles - Goodwill and Other Topic of the FASB ASC and deliverables within the scope of the Revenue Recognition Topic of the FASB ASC are not presumed to be representative of fair value for determining the amounts to allocate to each element of an arrangement. New Revenue Recognition Standard: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers . On August 12, 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which delays the effective date of ASU 2014-09 by one year. The new standard is effective for reporting periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective adoption reflecting the application of the standard in each prior reporting period, or (ii) a modified retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized through retained earnings at the date of adoption. Early adoption is permitted for reporting periods beginning after December 15, 2016. We are in the process of evaluating the potential revenue implications of the standard change, which may result in changes to our revenue recognition practices; the elimination of the units-of-delivery method for certain U.S. Government programs; and the elimination of the completed contract method of accounting . Research and Development. Research and development costs not specifically covered by contracts and those related to the company sponsored share of research and development activity in connection with cost-sharing arrangements are charged to expense as incurred. Government research and development support, not associated with specific contracts, is recorded as a reduction to research and development expense in the period earned. See Note 8 for a discussion of amendments of certain government research and development support arrangements concluded in December 2015 between Pratt & Whitney Canada and the Canadian government. Research and development costs incurred under contracts with customers are included as a contract cost and reported as a component of cost of products sold when revenue from such contracts is recognized. Research and development costs in excess of contractual consideration is expensed as incurred. Foreign Exchange. We conduct business in many different currencies and, accordingly, are subject to the inherent risks associated with foreign exchange rate movements. The financial position and results of operations of substantially all of our foreign subsidiaries are measured using the local currency as the functional currency. Foreign currency denominated assets and liabilities are translated into U.S. Dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries are deferred as a separate component of shareowners' equity. Derivatives and Hedging Activity. We have used derivative instruments, including swaps, forward contracts and options, to help manage certain foreign currency, interest rate and commodity price exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. By their nature, all financial instruments involve market and credit risks. We enter into derivative and other financial instruments with major investment grade financial institutions and have policies to monitor the credit risk of those counterparties. We limit counterparty exposure and concentration of risk by diversifying counterparties. While there can be no assurance, we do not anticipate any material non-performance by any of these counterparties. We enter into transactions that are subject to enforceable master netting arrangements or other similar agreements with various counterparties. However, we have not elected to offset multiple contracts with a single counterparty and, as a result, the fair value of the derivative instruments in a loss position is not offset against the fair value of derivative instruments in a gain position. Derivatives used for hedging purposes may be designated and effective as a hedge of the identified risk exposure at the inception of the contract. All derivative instruments are recorded on the balance sheet at fair value. Derivatives used to hedge foreign-currency-denominated balance sheet items are reported directly in earnings along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate. Gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income and reclassified to earnings as a component of product sales or expenses, as applicable, when the hedged transaction occurs. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period it occurs. As discussed in Note 14, 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. To the extent the hedge accounting criteria are not met, the foreign currency forward contracts are utilized as economic hedges and changes in the fair value of these contracts are recorded currently in earnings in the period in which they occur. Additional information pertaining to foreign currency forward contracts and net investment hedging is included in Note 14. Environmental . Environmental investigatory, remediation, operating and maintenance costs are accrued when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including existing technology, current laws and regulations and prior remediation experience. Where no amount within a range of estimates is more likely, the minimum is accrued. For sites with multiple responsible parties, we consider our likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their obligations in establishing a provision for those costs. Liabilities with fixed or reliably determinable future cash payments are discounted. Accrued environmental liabilities are not reduced by potential insurance reimbursements. See Note 17 for additional details on the environmental remediation activities. Pension and Postretirement Obligations. Guidance under the Compensation - Retirement Benefits Topic of the FASB ASC requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Under this guidance, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit cost. In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent) . This ASU eliminates the requirement to categorize investments within the fair value hierarchy if their fair value is measured using the net asset value (NAV) per share practical expedient. The update is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. We elected to adopt the standard for fiscal year 2015. The adoption of this standard did not have a material effect on the consolidated financial statements. Product Performance Obligations. We extend performance and operating cost guarantees beyond our normal service and warranty policies for extended periods on some of our products, particularly commercial aircraft engines. Liability under such guarantees is based upon future product performance and durability. We accrue for such costs that are probable and can be reasonably estimated. In addition, we incur discretionary costs to service our products in connection with product performance issues. The costs associated with these product performance and operating cost guarantees require estimates over the full terms of the agreements, and require management to consider factors such as the extent of future maintenance requirements and the future cost of material and labor to perform the services. These cost estimates are largely based upon historical experience. See Note 16 for further discussion. Collaborative Arrangements. In view of the risks and costs associated with developing new engines, Pratt & Whitney has entered into certain collaboration arrangements in which sales, costs and risks are shared. Sales generated from engine programs, spare parts, and aftermarket business under collaboration arrangements are recorded as earned in our financial statements. Amounts attributable to our collaborators for their share of sales are recorded as an expense in our financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement of the collaborators' share of program costs is recorded as a reduction of the related expense item at that time. As of December 31, 2015 , the collaborators' interests in all commercial engine programs ranged from 14% to 50% , inclusive of a portion of Pratt & Whitney's interests held by other participants. Pratt & Whitney is the principal participant in all existing collaborative arrangements. There are no individually significant collaborative arrangements and none of the collaborators exceed a 31% share in an individual program. The following table illustrates the income statement classification and amounts attributable to transactions arising from the collaborative arrangements between participants for each period presented: (dollars in millions) 2015 2014 2013 Collaborator share of sales: Cost of products sold $ 1,547 $ 1,778 $ 1,820 Cost of services sold 652 354 273 Collaborator share of program costs (reimbursement of expenses incurred): Cost of products sold (104 ) (103 ) (127 ) Research and development (248 ) (122 ) (194 ) Selling, general and administrative (5 ) (4 ) (5 ) |
Business Acquisitions, Disposit
Business Acquisitions, Dispositions, Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Note 2: Business Acquisitions, Dispositions, Goodwill and Intangible Assets | BUSINESS ACQUISITIONS, DISPOSITIONS, GOODWILL AND INTANGIBLE ASSETS Business Acquisitions and Dispositions. As discussed further in Note 3, on November 6, 2015, we completed the sale of Sikorsky to Lockheed Martin Corp. for $9,083 million in cash, subject to customary post-closing working capital and net debt adjustments. Our investments in businesses in 2015 , 2014 and 2013 totaled $556 million (including debt assumed of $18 million ), $530 million (including debt assumed of $ 128 million ) and $151 million , respectively. Our investments in businesses in 2015 consisted of the acquisition of the majority interest in a UTC Climate, Controls & Security business, the acquisition of an imaging technology company by UTC Aerospace Systems, and a number of small acquisitions, primarily in our commercial businesses. Our investments in businesses in 2014 consisted of the acquisition of the majority interest in a Pratt & Whitney joint venture and a number of small acquisitions, primarily in our commercial businesses. In connection with a portfolio transformation initiative undertaken by UTC Climate, Controls & Security, net gains of approximately $30 million and $55 million were recognized in 2014 and 2013, respectively, on various dispositions completed during those years. In 2013, we completed the sale of the Pratt & Whitney Power Systems business to Mitsubishi Heavy Industries (MHI), and we entered into a long-term engineering and manufacturing agreement with MHI, generating a pre-tax gain of approximately $193 million ( $132 million after tax). We also completed the acquisition of Grupo Ascensores Enor, S.A. (Enor), a privately held company headquartered in Spain with operations in Spain and Portugal, which designs, manufactures, installs and services elevators. Under the terms of the transaction, Zardoya Otis, S.A. (ZOSA), a non-wholly owned subsidiary of the Company, exchanged publicly traded shares of ZOSA with a fair value of approximately $240 million as of the transaction completion date for all of the shares of Enor. In connection with the 2012 Goodrich acquisition, we recorded assumed liabilities of approximately $2.2 billion related to customer contractual obligations on certain OEM development programs where the expected costs exceeded the expected revenue under contract. These liabilities are being liquidated in accordance with the underlying economic pattern of obligations, as reflected by the net cash outflows incurred on the OEM contracts. Total consumption of the contractual obligations was approximately $193 million and $249 million in 2015 and 2014 , respectively. Expected consumption of the contractual obligations is as follows: $252 million in 2016, $259 million in 2017, $250 million in 2018, $219 million in 2019, $84 million in 2020 and $351 million thereafter. In connection with regulatory approval of the Goodrich acquisition, regulatory authorities required UTC to dispose of the Goodrich electric power systems and the Goodrich pumps and engine controls businesses. We completed the sales of these businesses in 2013. In 2012, Pratt & Whitney, Rolls-Royce plc (Rolls-Royce), MTU Aero Engines AG and Japanese Aero Engines Corporation, participants in the IAE International Aero Engines AG (IAE) collaboration, completed a restructuring of their interests in IAE. As a result of this transaction, 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 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 Consolidated Balance Sheet as of December 31, 2015 and 2014 are as follows: (dollars in millions) 2015 2014 Current assets $ 1,920 $ 1,820 Noncurrent assets 1,102 756 Total assets $ 3,022 $ 2,576 Current liabilities $ 1,931 $ 1,795 Noncurrent liabilities 1,355 1,227 Total liabilities $ 3,286 $ 3,022 Goodwill. The changes in the carrying amount of goodwill, by segment, in 2015 are as follows: (dollars in millions) Balance as of January 1, 2015 Goodwill resulting from business combinations Foreign currency translation and other Balance as of December 31, 2015 Otis $ 1,664 $ 31 $ (129 ) $ 1,566 UTC Climate, Controls & Security 9,408 397 (347 ) 9,458 Pratt & Whitney 1,481 36 (2 ) 1,515 UTC Aerospace Systems 14,892 49 (182 ) 14,759 Total Segments 27,445 513 (660 ) 27,298 Eliminations and other 3 — — 3 Total $ 27,448 $ 513 $ (660 ) $ 27,301 Intangible Assets. Identifiable intangible assets are comprised of the following: 2015 2014 (dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Service portfolios $ 1,977 $ (1,307 ) $ 2,103 $ (1,309 ) Patents and trademarks 361 (189 ) 336 (177 ) IAE collaboration 3,336 (86 ) 2,872 (20 ) Customer relationships and other 12,430 (2,988 ) 12,135 (2,589 ) 18,104 (4,570 ) 17,446 (4,095 ) Unamortized: Trademarks and other 2,069 — 2,177 — Total $ 20,173 $ (4,570 ) $ 19,623 $ (4,095 ) 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. Amortization of intangible assets was $722 million , $713 million and $705 million in 2015 , 2014 and 2013 , respectively. The IAE collaboration intangible asset is amortized based upon the economic pattern of benefits as represented by the underlying cash flows. Prior to 2014, these cash flows were negative, and, accordingly, no amortization had previously been recorded. The following is the expected amortization of intangible assets for 2016 through 2020, which reflects an increase in expected amortization expense due to the pattern of economic benefit on certain aerospace intangible assets increasing over time: (dollars in millions) 2016 2017 2018 2019 2020 Amortization expense $ 692 $ 745 $ 772 $ 769 $ 792 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS On November 6, 2015 we completed the sale of Sikorsky to Lockheed Martin Corp. for $9,083 million in cash, subject to customary post-closing working capital and net debt adjustments. The results of operations and the related cash flows of Sikorsky have been reclassified to Discontinued Operations in our Consolidated Statement of Operations and Consolidated Statement of Cash Flows for all periods presented. The assets and liabilities of Sikorsky have been reclassified to Assets held for sale and Liabilities held for sale, respectively, in our Consolidated Balance Sheet as of December 31, 2014. Cash flows from the operation of Sikorsky are included in our results through the date of sale to Lockheed Martin Corp. On December 13, 2012 , we completed the sale of the legacy Hamilton Sundstrand Industrial businesses. On June 14, 2013 we completed with the sale of Pratt & Whitney Rocketdyne (Rocketdyne), and on February 12, 2013 we completed the sale of UTC Power to ClearEdge Power. We have no continuing involvement with these businesses post-disposition. Net income from discontinued operations in our Consolidated Statement of Operations for the year ended December 31, 2013 includes income of approximately $35 million related to these divested businesses. Cash flows from discontinued operations in our Consolidated Statement of Cash Flows for the year ended December 31, 2013 includes cash outflows of approximately $277 million , primarily related to the proceeds from the sale of Rocketdyne offset by tax payments related to the 2012 sale of the legacy Hamilton Sundstrand Industrial businesses. The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations: (dollars in millions) 2015 2014 2013 Discontinued Operations: Net Sales $ 4,949 $ 7,452 $ 6,564 Cost of Sales 4,152 6,801 5,304 Research and development 150 160 197 Selling, general and administrative 315 328 382 Pension curtailment 110 — — Other income, net (30 ) (12 ) (40 ) Income from operations 252 175 721 Gain (loss) on disposal 6,042 — (33 ) Income tax expense (2,684 ) (20 ) (234 ) Income from discontinued operations $ 3,610 $ 155 $ 454 The assets and liabilities held for sale on the Consolidated Balance Sheet as of December 31, 2014 are as follows: (dollars in millions) December 31, 2014 Assets: Cash and cash equivalents $ 6 Accounts receivable, net 869 Inventories and contracts in progress, net 2,223 Other assets, current 45 Fixed assets, net 684 Goodwill 348 Intangible assets, net 32 Other assets 661 Assets held for sale $ 4,868 Liabilities: Short-term borrowings and long-term debt currently due $ 5 Accounts payable 717 Accrued liabilities 1,479 Long-term debt 5 Future pension and postretirement benefit obligations 2 Other long-term liabilities 573 Liabilities held for sale $ 2,781 UTC and its business segments have historically had sales to Sikorsky and purchases from Sikorsky, in the normal course of business, which were eliminated in consolidation. Net sales to Sikorsky were $138 million , $235 million and $206 million for the years ended December 31, 2015, 2014 and 2013, respectively. Purchases from Sikorsky included in cost of products and services sold were $25 million , $17 million and $21 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Text Block | EARNINGS PER SHARE (dollars in millions, except per share amounts; shares in millions) 2015 2014 2013 Net income attributable to common shareowners: Net income from continuing operations $ 3,996 $ 6,066 $ 5,265 Net income from discontinued operations 3,612 154 456 Net income attributable to common shareowners $ 7,608 $ 6,220 $ 5,721 Basic weighted average number of shares outstanding 872.7 898.3 901.0 Stock awards 10.5 13.3 14.1 Diluted weighted average number of shares outstanding 883.2 911.6 915.1 Earnings Per Share of Common Stock—Basic: Net income from continuing operations $ 4.58 $ 6.75 $ 5.84 Net income from discontinued operations 4.14 0.17 0.51 Net income attributable to common shareowners 8.72 6.92 6.35 Earnings Per Share of Common Stock—Diluted: Net income from continuing operations $ 4.53 $ 6.65 $ 5.75 Net income from discontinued operations 4.09 0.17 0.50 Net income attributable to common shareowners 8.61 6.82 6.25 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 have been anti-dilutive. For 2015 and 2014 , there were 9.7 million and 3.5 million anti-dilutive stock awards excluded from the computation, respectively. For 2013 , there were no anti-dilutive stock awards excluded from the computation. |
Commercial Aerospace Industry A
Commercial Aerospace Industry Assets and Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Other Commitments [Abstract] | |
Commercial Aerospace Industry Assets and Commitments | NOTE 5: COMMERCIAL AEROSPACE INDUSTRY ASSETS AND COMMITMENTS We have receivables and other financing assets with commercial aerospace industry customers totaling $6,143 million and $5,548 million at December 31, 2015 and 2014 , respectively. These include customer financing assets related to commercial aerospace industry customers, consisting of products under lease of $537 million and $564 million , and notes and leases receivable of $566 million and $424 million , at December 31, 2015 and 2014 , respectively. Aircraft financing commitments, in the form of debt, guarantees or lease financing, are provided to commercial aerospace customers. The extent to which the financing commitments will be utilized is not currently known, since customers may be able to obtain more favorable terms from other financing sources. We may also arrange for third-party investors to assume a portion of these commitments. If financing commitments are exercised, debt financing is generally secured by assets with fair market values equal to or exceeding the financed amounts consistent with market terms and conditions. We may also lease aircraft and subsequently sublease the aircraft to customers under long-term non-cancelable operating leases. Lastly, we have made residual value and other guarantees related to various commercial aerospace customer financing arrangements. The estimated fair market values of the guaranteed assets equal or exceed the value of the related guarantees, net of existing reserves. We also have other contractual commitments, including commitments to secure certain contractual rights to provide product on new aircraft platforms, which are included in "Other commercial aerospace commitments" in the table below. Payments made on these contractual commitments are included in intangible assets and are amortized over the term of underlying economic benefit. Our commercial aerospace financing and other contractual commitments as of December 31, 2015 were approximately $ 14.6 billion . We have entered into certain collaboration arrangements, which may include participation by our collaboration partners in these commitments. The following is the expected maturity of commercial aerospace industry assets and commitments as of December 31, 2015 : (dollars in millions) Committed 2016 2017 2018 2019 2020 Thereafter Notes and leases receivable $ 566 $ 97 $ 102 $ 26 $ 40 $ 34 $ 267 Commercial aerospace financing commitments $ 2,608 $ 410 $ 405 $ 534 $ 381 $ 178 $ 700 Other commercial aerospace commitments 11,985 821 929 896 743 728 7,868 Collaboration partners' share (4,093 ) (344 ) (381 ) (462 ) (302 ) (193 ) (2,411 ) Total commercial commitments $ 10,500 $ 887 $ 953 $ 968 $ 822 $ 713 $ 6,157 In 2012, Pratt & Whitney obtained increased ownership and collaboration interests in IAE and an intellectual property license, paying Rolls-Royce $1.5 billion at closing, with additional payments due to Rolls-Royce contingent upon each hour flown by the V2500-powered aircraft in service as of June 29, 2012 during the fifteen-year period following closing of the purchase. These flight hour payments, included in "Other commercial aerospace commitments" in the table above, are being capitalized as collaboration intangible assets. See Note 2 for further discussion. Our financing commitments with customers are contingent upon maintenance of certain levels of financial condition by the customers. In addition, we have residual value and other guarantees of $365 million as of December 31, 2015 . We have long-term aftermarket maintenance contracts with commercial aerospace industry customers for which revenue is recognized in proportion to actual costs incurred relative to total expected costs to be incurred over the respective contract periods. Billings, however, are typically based on factors such as engine flight hours. The timing differences between the billings and the maintenance costs incurred generates both unbilled receivables and deferred revenues. Unbilled receivables under these long-term aftermarket contracts totaled $1,091 million and $819 million at December 31, 2015 and 2014 , respectively, and are included in Accounts receivable and Other assets in the accompanying Consolidated Balance Sheet. Deferred revenues totaled $3,502 million and $3,429 million at December 31, 2015 and 2014 , respectively, and are included in Accrued liabilities and Other long-term liabilities in the accompanying Consolidated Balance Sheet. Reserves related to aerospace receivables and financing assets were $217 million and $243 million at December 31, 2015 and 2014 , respectively. Reserves related to financing commitments and guarantees were $47 million and $64 million at December 31, 2015 and 2014 , respectively. |
Inventories and Contracts in Pr
Inventories and Contracts in Progress | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories and Contracts in Progress | INVENTORIES & CONTRACTS IN PROGRESS (dollars in millions) 2015 2014 Raw materials $ 2,037 $ 1,948 Work-in-process 2,422 2,093 Finished goods 3,183 2,975 Contracts in progress 8,668 8,189 16,310 15,205 Less: Progress payments, secured by lien, on U.S. Government contracts (239 ) (117 ) Billings on contracts in progress (7,936 ) (7,446 ) $ 8,135 $ 7,642 Raw materials, work-in-process and finished goods are net of valuation reserves of $760 million and $721 million as of December 31, 2015 and 2014 , respectively. Contracts in progress principally relate to elevator and escalator contracts and include costs of manufactured components, accumulated installation costs and estimated earnings on incomplete contracts. Inventory also includes capitalized contract development costs related to certain aerospace programs at UTC Aerospace Systems. As of December 31, 2015 and 2014 , these capitalized costs were $152 million and $141 million , respectively, which will be liquidated as production units are delivered to the customer. Our sales contracts in many cases are long-term contracts expected to be performed over periods exceeding twelve months. At December 31, 2015 and 2014 , approximately 67% and 65% respectively, of total inventories and contracts in progress have been acquired or manufactured under such long-term contracts, a portion of which is not scheduled for delivery within the next twelve months. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | FIXED ASSETS (dollars in millions) Estimated 2015 2014 Land $ 384 $ 392 Buildings and improvements 12-40 years 5,030 5,098 Machinery, tools and equipment 3-20 years 11,717 11,398 Other, including assets under construction 1,363 1,181 18,494 18,069 Accumulated depreciation (9,762 ) (9,477 ) $ 8,732 $ 8,592 Depreciation expense was $1,068 million in 2015 , $1,043 million in 2014 and $971 million in 2013 . |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES (dollars in millions) 2015 2014 Advances on sales contracts and service billings $ 3,952 $ 4,241 Income taxes payable 2,498 305 Accrued salaries, wages and employee benefits 1,543 1,795 Service and warranty accruals 546 504 Litigation and contract matters 482 496 Interest payable 391 503 Accrued restructuring costs 334 253 Accrued property, sales and use taxes 292 280 Canadian government settlement - current portion 241 — Accrued workers compensation 212 215 Other 4,147 3,935 $ 14,638 $ 12,527 Income taxes payable as of December 31, 2015 includes taxes payable related to the gain on the sale of Sikorsky, expected to be substantially paid in the first quarter of 2016. The Canadian government has historically provided research and development support under certain Pratt & Whitney Canada programs, wherein repayment, if any, is made in the form of royalties, conditioned upon the achievement of certain financial targets including specific aircraft engine sales, total aircraft engine sales volume and total year-over-year sales growth of the entity receiving the government funding. On December 30, 2015 , Pratt & Whitney Canada and federal and provincial Canadian government agencies entered into amendments of certain government research and development support arrangements. Under the amendments, Pratt & Whitney Canada agreed to make four annual payments of approximately $327 million Canadian (approximately $241 million ) each, commencing in the first quarter of 2016, to fully settle and terminate Pratt & Whitney Canada's future contractual obligations to pay royalties to these agencies that had previously been contingent upon future engine deliveries and Pratt & Whitney Canada sales; to maintain its commitments to perform certain assembly, test and manufacturing operations in Canada; and to provide support of innovation and research and development through initiatives with post-secondary institutions and key industry associations in Canada over a fourteen year period. As a result of the amendments to these contractual arrangements, Pratt & Whitney recorded a charge and related discounted obligation of $867 million in the fourth quarter of 2015. The Canadian government settlement included in the table above represents amounts expected to be paid under this agreement in 2016, with the remaining provision of approximately $626 million included in Other long-term liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2015. |
Borrowings and Lines of Credit
Borrowings and Lines of Credit | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings and Lines of Credit | BORROWINGS AND LINES OF CREDIT (dollars in millions) 2015 2014 Short-term borrowings: Commercial paper $ 727 $ — Other borrowings 199 126 Total short-term borrowings $ 926 $ 126 At December 31, 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 December 31, 2015 , there were no borrowings under either of 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. As of December 31, 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 and repurchases of our common stock. The need for commercial paper borrowings arises when the use of domestic cash for acquisitions, dividends, and share repurchases exceeds the sum of domestic cash generation and foreign cash repatriated to the U.S. The weighted-average interest rates applicable to short-term borrowings outstanding at December 31, 2015 and 2014 were 0.8% and 5.7% , respectively. At December 31, 2015 , approximately $1.4 billion was available under short-term lines of credit with local banks at our various domestic and international subsidiaries. Long-term debt consisted of the following as of December 31: (dollars in millions) 2015 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 2 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 2 171 171 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) 3 817 — 7.100% notes due 2027 2 141 141 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 2 134 134 7.000% notes due 2038 2 159 159 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 4 850 — Project financing obligations 191 147 Other (including capitalized leases) 2 306 368 Total principal long-term debt 19,439 19,490 Other (fair market value adjustments, discounts and debt issuance costs) 2 60 85 Total long-term debt 19,499 19,575 Less: current portion 179 1,791 Long-term debt, net of current portion $ 19,320 $ 17,784 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 Includes notes and remaining fair market value adjustments that were assumed as a part of the Goodrich acquisition on July 26, 2012. 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 will be 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 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, these 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 will be 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 25 basis points. 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. On August 3, 2015 , we received approximately $1.1 billion from the proceeds of the remarketing, and issued 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 4.875% notes and floating rate notes that matured during the quarter ended June 30, 2015. The project financing obligations included in the table above are associated with the sale of rights to unbilled revenues related to the ongoing activity of an entity owned by UTC Climate, Controls & Security. The percentage of total short-term borrowings and long-term debt at variable interest rates was 5% and 4% at December 31, 2015 and 2014 , respectively. Interest rates on our commercial paper borrowings are considered variable due to their short-term duration and high-frequency of turnover. The schedule of principal payments required on long-term debt for the next five years and thereafter is: (dollars in millions) 2016 $ 179 2017 2,551 2018 1,231 2019 1,568 2020 1,476 Thereafter 12,434 Total $ 19,439 We have an existing universal shelf registration statement filed with the Securities and Exchange Commission (SEC) for an indeterminate amount of securities for future issuance, subject to our internal limitations on the amount of securities to be issued under this shelf registration statement. In 2015, we adopted ASU 2015-03, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs previously reported as a deferred charge within Other noncurrent assets to be presented as a direct reduction from the carrying amount of debt, consistent with debt discounts, applied retrospectively for all periods presented. Long-term debt and Other assets as of December 31, 2014 were adjusted by approximately $83 million as a result of the adoption of this ASU. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | EQUITY On March 13, 2015, we entered into ASR agreements to repurchase an aggregate of $2.65 billion of our common stock. Under the terms of the ASR agreements, we made the aggregate payments and received an initial delivery of approximately 18.6 million shares of our common stock, representing approximately 85% of the shares expected to be repurchased. On July 31, 2015, the shares associated with the remaining portion of the aggregate purchase were settled upon final delivery of approximately 4.2 million additional shares of common stock. On November 11, 2015, we entered into ASR agreements to repurchase an aggregate of $6 billion of our common stock utilizing the net after-tax proceeds from the sale of Sikorsky. The ASR agreements provide 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. Under the terms of the ASR agreements, we made the aggregate payments on November 16, 2015 and received an initial delivery of approximately 51.9 million shares of our common stock, representing approximately 85% of the shares expected to be repurchased at a price of $98.26 per share. The aggregate purchase price was recorded as a reduction to shareowners’ equity, consisting of a $5.1 billion increase in treasury stock and a $0.9 billion decrease in additional paid-in capital. The shares associated with the remaining portion of the aggregate purchase price are to be settled over six tranches. Upon settlement of each tranche, we may be entitled to receive additional common shares or, under certain limited circumstances, be required to deliver shares or make additional payments to the counterparties. The final settlement of the transactions under all tranches is expected to occur no later than the third quarter of 2016. The ASR agreements contain 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, and the specific circumstances under which the repurchase transactions may be canceled prior to the scheduled maturity. As discussed in Note 9, on August 3, 2015, we received approximately $1.1 billion from the proceeds of the remarketing of our 1.550% junior subordinated notes, which were originally issued as part of our equity units on June 18, 2012, and issued 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. A summary of the changes in each component of accumulated other comprehensive (loss) income, net of tax for the years ended December 31, 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 Balance at December 31, 2013 $ 170 $ (3,267 ) $ 296 $ (79 ) $ (2,880 ) Other comprehensive (loss) income before reclassifications, net (1,228 ) (2,708 ) 28 (205 ) (4,113 ) Amounts reclassified, pre-tax 7 416 (20 ) 96 499 Tax (benefit) expense reclassified — (150 ) 4 (21 ) (167 ) Balance at December 31, 2014 $ (1,051 ) $ (5,709 ) $ 308 $ (209 ) $ (6,661 ) Other comprehensive (loss) income before reclassifications, net (1,429 ) 32 16 (298 ) (1,679 ) Amounts reclassified, pre-tax 42 867 (54 ) 234 1,089 Tax (benefit) expense reclassified — (325 ) 23 (66 ) (368 ) Balance at December 31, 2015 $ (2,438 ) $ (5,135 ) $ 293 $ (339 ) $ (7,619 ) Amounts reclassified related to our defined benefit pension and postretirement plans include amortization of prior service costs 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 12 for additional details). 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. The pro-forma increase (decrease) in Net income attributable to common shareowners would have been $12 million , $(71) million and $(49) million for the years ended December 31, 2015, 2014 and 2013, respectively, had they been recorded through net income. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
Income Taxes | INCOME TAXES Income Before Income Taxes. The sources of income from continuing operations before income taxes are: (dollars in millions) 2015 2014 2013 United States $ 2,782 $ 4,165 $ 3,065 Foreign 3,685 4,547 4,589 $ 6,467 $ 8,712 $ 7,654 With few exceptions, U.S. income taxes have not been provided on undistributed earnings of UTC's international subsidiaries. These earnings relate to ongoing operations and were approximately $ 29 billion as of December 31, 2015 . It is not practicable to estimate the amount of tax that might be payable. We intend to reinvest these earnings permanently outside the U.S. or to repatriate the earnings only when it is tax effective to do so. Provision for Income Taxes. The income tax expense (benefit) for the years ended December 31, 2015, 2014 and 2013 consisted of the following components: (dollars in millions) 2015 2014 2013 Current: United States: Federal $ 328 $ 319 $ 390 State (37 ) 38 18 Foreign 1,158 1,484 1,323 1,449 1,841 1,731 Future: United States: Federal 712 421 292 State 109 (23 ) 44 Foreign (159 ) 5 (68 ) 662 403 268 Income tax expense $ 2,111 $ 2,244 $ 1,999 Attributable to items credited (charged) to equity and goodwill $ (114 ) $ 1,535 $ (1,661 ) Reconciliation of Effective Income Tax Rate. Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows: 2015 2014 2013 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % Tax on international activities (2.0 )% (3.3 )% (6.2 )% Tax audit settlements — % (4.3 )% (0.5 )% Other (0.4 )% (1.6 )% (2.2 )% Effective income tax rate 32.6 % 25.8 % 26.1 % The 2015 effective tax rate reflects an unfavorable tax adjustment of $274 million related to the planned repatriation of certain foreign earnings, the majority of which are current year earnings, and a favorable adjustment of approximately $45 million related to a non-taxable gain recorded in the first quarter. France, the U.K. and certain U.S. states enacted tax law changes in the fourth quarter which resulted in a net incremental cost of approximately $68 million in 2015. The 2014 effective tax rate reflects a favorable tax adjustment of $213 million related to the conclusion of the examination of UTC’s 2009 - 2010 tax years, a favorable tax adjustment of $84 million related to the resolution of disputed tax matters with the Appeals Division of the IRS for UTC’s 2006 - 2008 tax years, a favorable tax impact of $40 million related to the conclusion of the State of Connecticut's review of UTC’s 2010 - 2012 tax years and a favorable tax impact of $ 34 million related to the conclusion of the Canada Revenue Agency’s examination of the company's research credits claimed in 2006-2012. Also included is a favorable tax adjustment of $ 175 million associated with management’s decision to repatriate additional high taxed dividends from the current year. These are partially offset by an unfavorable tax adjustment of approximately $ 265 million related to the 1998 reorganization of the corporate structure of Otis operations in Germany, a matter which is currently in litigation. This is reported in the table above in tax on international activities. The 2013 effective tax rate reflects a favorable noncash income tax adjustment of approximately $35 million related to the conclusion of the examination of Goodrich's 2009 - 2010 tax years and resolution of a dispute with the IRS for Goodrich's 2001 - 2006 tax years. In addition, the 2013 effective tax rate also reflects a favorable tax impact of $ 95 million associated with the legislative corporate tax extenders enacted in January 2013, as part of the American Taxpayer Relief Act of 2012, as well as the favorable tax impact of $24 million related to a U.K. tax rate reduction enacted in July 2013. Deferred Tax Assets and Liabilities. Future income taxes represent the tax effects of transactions which are reported in different periods for tax and financial reporting purposes. These amounts consist of the tax effects of temporary differences between the tax and financial reporting balance sheets and tax carryforwards. For the period ended December 31, 2014, future income tax benefits and payables are presented as current and non-current. For the period ended December 31, 2015, UTC has classified all deferred taxes as non-current based on an early adoption of Accounting Standards Update 2015-17. For both periods, future income tax benefits and payables within the same tax paying component of a particular jurisdiction are offset for presentation in the Consolidated Balance Sheet. The tax effects of net temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2015 and 2014 are as follows: (dollars in millions) 2015 2014 Future income tax benefits: Insurance and employee benefits $ 2,650 $ 3,033 Other asset basis differences 1,199 369 Other liability basis differences 1,543 1,039 Tax loss carryforwards 528 660 Tax credit carryforwards 872 963 Valuation allowances (591 ) (612 ) $ 6,201 $ 5,452 Future income taxes payable: Other asset basis differences $ 5,324 $ 4,584 Other items, net 531 (124 ) $ 5,855 $ 4,460 Future income taxes payable, reflected in the table above, for the years ended December 31, 2015 and 2014 , respectively, are reported in accrued liabilities and other long-term liabilities on our Consolidated Balance Sheet. Valuation allowances have been established primarily for tax credit carryforwards, tax loss carryforwards, and certain foreign temporary differences to reduce the future income tax benefits to expected realizable amounts. The table above reflects reductions in 2014 to tax credit carryforwards and valuation allowances associated with an agreement with a state taxing authority for the monetization of tax credits. Tax Credit and Loss Carryforwards. At December 31, 2015 , tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows: (dollars in millions) Tax Credit Carryforwards Tax Loss Carryforwards Expiration period: 2016-2020 $ 3 $ 274 2021-2025 4 127 2026-2035 196 573 Indefinite 668 1,927 Total $ 871 $ 2,901 Unrecognized Tax Benefits. At December 31, 2015 , we had gross tax-effected unrecognized tax benefits of $1,169 million , all of which, if recognized, would impact the effective tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013 is as follows: (dollars in millions) 2015 2014 2013 Balance at January 1 $ 1,089 $ 1,223 $ 1,073 Additions for tax positions related to the current year 206 164 113 Additions for tax positions of prior years 99 435 211 Reductions for tax positions of prior years (101 ) (47 ) (41 ) Settlements (124 ) (686 ) (133 ) Balance at December 31 $ 1,169 $ 1,089 $ 1,223 Gross interest expense related to unrecognized tax benefits $ 39 $ 180 $ 51 Total accrued interest balance at December 31 $ 176 $ 292 $ 262 Included in the balance at December 31, 2014 is $ 87 million of tax positions whose tax characterization is highly certain but for which there is uncertainty about the timing of tax return inclusion. Because of the impact of deferred tax accounting, other than interest and penalties, the timing would not impact the annual effective tax rate but could accelerate the payment of cash to the taxing authority to an earlier period. 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, Brazil, Canada, China, France, Germany, Hong Kong, India, 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. The Examination Division of the Internal Revenue Service is currently auditing UTC tax years 2011 and 2012 as well as pre-acquisition Goodrich tax years 2011 and 2012 through the date of acquisition by UTC, both of which are currently expected to continue beyond the next twelve months. During 2014, the Company resolved various tax audit, appeal and litigation activity with the IRS, Connecticut Department of Revenue, and French and Canadian taxing authorities resulting in approximately $ 508 million of primarily noncash tax gains, including pre-tax interest adjustments of $132 million . During 2014, the Company also reached an agreement with a state taxing authority for the monetization of tax credits resulting in a gain of approximately $ 220 million through Other Income. During 2013, the Company recognized a predominantly noncash settlement gain of approximately $34 million for interest relating to the closure of IRS audits of UTC through 2005. During 2013, the IRS also completed examination activity of Goodrich tax years 2009 and 2010, prior to its acquisition by UTC, resulting in a noncash settlement gain of approximately $ 24 million , including $ 2 million of interest. Additionally, certain litigation regarding the proper timing of deductions taken by Goodrich in its tax years 2001 and 2002, prior to its acquisition by UTC, was resolved in 2013 resulting in recognition of a noncash settlement gain of approximately $ 25 million , including $ 12 million of interest. It is reasonably possible that over the next 12 months the amount of unrecognized tax benefits may change within a range of a net increase of $ 25 million to a net decrease of $ 490 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 17, 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. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefits and Share-based Compensation [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We sponsor numerous domestic and foreign employee benefit plans, which are discussed below. Employee Savings Plans. We sponsor various employee savings plans. Our contributions to employer sponsored defined contribution plans were $356 million , $330 million and $335 million for 2015 , 2014 and 2013 , respectively. Our non-union domestic employee savings plan uses an Employee Stock Ownership Plan (ESOP) for employer matching contributions. External borrowings were used by the ESOP to fund a portion of its purchase of ESOP stock from us. The external borrowings have been extinguished and only re-amortized loans remain between UTC and the ESOP Trust. As ESOP debt service payments are made, common stock is released from an unreleased shares account. ESOP debt may be prepaid or re-amortized to either increase or decrease the number of shares released so that the value of released shares equals the value of plan benefit. We may also, at our option, contribute additional common stock or cash to the ESOP. Shares of common stock are allocated to employees' ESOP accounts at fair value on the date earned. Cash dividends on common stock held by the ESOP are used for debt service payments. Participants receive additional shares in lieu of cash dividends. Common stock allocated to ESOP participants is included in the average number of common shares outstanding for both basic and diluted earnings per share. At December 31, 2015 , 29.2 million common shares had been allocated to employees, leaving 12.9 million unallocated common shares in the ESOP Trust, with an approximate fair value of $1.2 billion . Pension Plans. We sponsor both funded and unfunded domestic and foreign defined benefit pension plans that cover a large number of our employees. Our plans use a December 31 measurement date consistent with our fiscal year. (dollars in millions) 2015 2014 Change in Benefit Obligation: Beginning balance $ 37,853 $ 33,026 Service cost 493 487 Interest cost 1,399 1,517 Actuarial (gain) loss (1,716 ) 5,277 Total benefits paid (1,796 ) (1,939 ) Net settlement and curtailment gain (55 ) (1 ) Plan amendments 39 5 Other (789 ) (519 ) Ending balance $ 35,428 $ 37,853 Change in Plan Assets: Beginning balance $ 32,738 $ 31,355 Actual return on plan assets 265 3,140 Employer contributions 520 615 Benefits paid from plan assets (1,796 ) (1,939 ) Settlements (59 ) — Other (657 ) (433 ) Ending balance $ 31,011 $ 32,738 Funded Status: Fair value of plan assets $ 31,011 $ 32,738 Benefit obligations (35,428 ) (37,853 ) Funded status of plan $ (4,417 ) $ (5,115 ) Amounts Recognized in the Consolidated Balance Sheet Consist of: Noncurrent assets $ 742 $ 681 Current liability (71 ) (104 ) Noncurrent liability (5,088 ) (5,692 ) Net amount recognized $ (4,417 ) $ (5,115 ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial loss $ 8,224 $ 9,068 Prior service credit (57 ) (27 ) Net amount recognized $ 8,167 $ 9,041 At the end of fiscal 2015, we changed the approach we use to estimate the service and interest components of net periodic pension cost for our significant pension plans. This change compared to the previous approach is expected to result in a net decrease in the service and interest components for pension cost in 2016. Historically, we estimated the service and interest cost components utilizing a single-weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. We have elected to utilize a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in determination of the benefit obligation to the relevant projected cash flows. We have made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. This change does not affect the measurement of our total benefit obligations. This change will decrease the service and interest cost components of our annual net periodic pension cost by approximately $215 million for 2016. We have accounted for this change as a change in accounting estimate and, accordingly, have accounted for it prospectively. Included within "Actuarial (gain) loss" in the Change in Benefit Obligation in 2014 above, is a $1.1 billion increase to the projected benefit obligation resulting from the adoption of the new mortality base table (RP-2014) with projection scale (MP-2014) that was published by the Society of Actuaries in 2014. In 2015, we updated to the revised projection scale (MP-2015) that was published by the Society of Actuaries in 2015, which did not have a significant impact on the projected benefit obligation. The amounts included in "Other" in the above table primarily reflect the impact of foreign exchange translation, primarily for plans in the U.K. and Canada. In 2014, we offered a voluntary lump-sum pension payout program to certain eligible terminated vested participants (generally any terminated vested participant with a lump sum value of $50,000 or less) that would settle our obligation to those participants accepting the offer. The program provides participants with a one-time choice of electing to receive a lump-sum settlement in lieu of receiving a future monthly pension benefit. Payments to participants who accepted the offer began in 2014 and were completed in 2015. As part of this voluntary lump sum program, the Company settled $147 million and $311 million of its projected benefit obligation in 2015 and 2014, respectively. Qualified domestic pension plan benefits comprise approximately 76% of the projected benefit obligation. Benefits for union employees are generally based on a stated amount for each year of service. For non-union employees, benefits for service up to December 31, 2014 are generally based on an employee's years of service and compensation through December 31, 2014. Effective January 1, 2015, benefits for future service are based on the existing cash balance formula that was adopted in 2003 for newly hired non-union employees and for other non-union employees who made a one-time voluntary election to have future benefit accruals determined under this formula. This plan change resulted in a $623 million reduction in the projected benefit obligation as of December 31, 2009 and an additional $204 million reduction in the projected benefit obligation as of July 26, 2012 when applied to legacy Goodrich salaried employees. Certain foreign plans, which comprise approximately 22% of the projected benefit obligation, are considered defined benefit plans for accounting purposes. Nonqualified domestic pension plans provide supplementary retirement benefits to certain employees and are not a material component of the projected benefit obligation. We contributed $250 million in UTC common stock to our domestic defined benefit pension plans and made $147 million of cash contributions to our foreign defined benefit pension plans in 2015 . In 2014 , we made $200 million of cash contributions to our domestic defined benefit pension plans and made $317 million of cash contributions to our foreign defined benefit pension plans. Information for pension plans with accumulated benefit obligations in excess of plan assets: (dollars in millions) 2015 2014 Projected benefit obligation $ 30,915 $ 34,261 Accumulated benefit obligation 30,362 33,495 Fair value of plan assets 25,827 28,478 The accumulated benefit obligation for all defined benefit pension plans was $34.6 billion and $36.9 billion at December 31, 2015 and 2014 , respectively. The components of the net periodic pension cost are as follows: (dollars in millions) 2015 2014 2013 Pension Benefits: Service cost $ 493 $ 487 $ 569 Interest cost 1,399 1,517 1,373 Expected return on plan assets (2,264 ) (2,215 ) (2,107 ) Amortization of prior service credit (11 ) (8 ) (34 ) Recognized actuarial net loss 882 429 954 Net settlement and curtailment loss 150 13 1 Net periodic pension cost - employer $ 649 $ 223 $ 756 Net settlement and curtailment losses for pension benefits includes curtailment losses of approximately $109 million and $1 million related to, and recorded in, discontinued operations for the years ended December 31, 2015 and 2014, respectively. Net settlement and curtailment losses for pension benefits includes curtailment gains of approximately $23 million related to, and recorded in, discontinued operations for the year ended December 31, 2013. In addition, total net periodic pension cost includes approximately $98 million , $96 million and $86 million related to, and recorded in, discontinued operations for the years ended December 31, 2015, 2014 and 2013, respectively. Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2015 are as follows: (dollars in millions) Current year actuarial loss $ 283 Amortization of actuarial loss (882 ) Current year prior service cost 39 Amortization of prior service credit 11 Net settlement and curtailment loss (145 ) Other (180 ) Total recognized in other comprehensive loss $ (874 ) Net recognized in net periodic pension cost and other comprehensive loss $ (225 ) The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in 2016 is as follows: (dollars in millions) Net actuarial loss $ 540 Prior service credit (32 ) $ 508 Major assumptions used in determining the benefit obligation and net cost for pension plans are presented in the following table as weighted-averages: Benefit Obligation Net Cost 2015 2014 2015 2014 2013 Discount rate 4.1 % 3.8 % 3.8 % 4.7 % 4.0 % Salary scale 4.2 % 4.2 % 4.2 % 4.2 % 4.2 % Expected return on plan assets — — 7.6 % 7.6 % 7.7 % In determining the expected return on plan assets, we consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes, and economic and other indicators of future performance. In addition, we may consult with and consider the opinions of financial and other professionals in developing appropriate capital market assumptions. Return projections are also validated using a simulation model that incorporates yield curves, credit spreads and risk premiums to project long-term prospective returns. The plans' investment management objectives include maintaining an adequate level of diversification, reducing interest rate and market risk, and providing adequate liquidity to meet immediate and future benefit payment requirements. Globally, investment strategies target a mix of 55% to 65% of growth seeking assets and 35% to 45% income generating and hedging assets using a wide diversification of asset types, fund strategies and investment managers. The growth seeking allocation consists of global public equities in developed and emerging countries, private equity, real estate and balanced market risk strategies. Within public equities, approximately 10% of the total investment portfolio is an enhanced equity strategy that invests in publicly traded equity and fixed income securities, derivatives and foreign currency. Investments in private equity are primarily via limited partnership interests in buy-out strategies with smaller allocations to distressed debt funds. The real estate strategy is principally concentrated in directly held U.S. core investments with some smaller investments in international, value-added and opportunistic strategies. Within the income generating assets, the fixed income portfolio consists of mainly government and broadly diversified high quality corporate bonds. The plans have continued their pension risk management techniques designed to reduce the plans' interest rate risk. More specifically, the plans have incorporated liability hedging programs that include the adoption of a risk reduction objective as part of the long-term investment strategy. Under this objective the interest rate hedge is dynamically increased as funded status improves. The hedging programs incorporate a range of assets and investment tools, each with ranging interest rate sensitivity. The investment portfolios are currently hedging approximately 35% to 45% of the interest rate sensitivity of the pension plan liabilities. The fair values of pension plan assets at December 31, 2015 and 2014 by asset category are as follows: (dollars in millions) Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling Total Asset Category: Public Equities Global Equities $ 5,884 $ — $ — $ — $ 5,884 Global Equity Commingled Funds 1 — 779 — — 779 Enhanced Global Equities 2 237 616 — — 853 Global Equities Funds at net asset value 8 — — — 6,475 6,475 Private Equities 3,8 — — 182 1,335 1,517 Fixed Income Securities Governments 365 53 — — 418 Corporate Bonds — 7,013 — — 7,013 Fixed Income Securities 8 — — — 2,992 2,992 Real Estate 4,8 — 10 1,165 1,079 2,254 Other 5,8 — 334 — 1,706 2,040 Cash & Cash Equivalents 6,8 — 159 — 334 493 Subtotal $ 6,486 $ 8,964 $ 1,347 $ 13,921 30,718 Other Assets & Liabilities 7 293 Total at December 31, 2015 $ 31,011 Public Equities Global Equities $ 5,964 $ 2 $ — $ — $ 5,966 Global Equity Commingled Funds 1 — 1,055 — — 1,055 Enhanced Global Equities 2 292 1,192 — — 1,484 Global Equities Funds at net asset value 8 — — — 6,505 6,505 Private Equities 3,8 — — 145 1,255 1,400 Fixed Income Securities Governments 419 52 — — 471 Corporate Bonds 4 7,132 — — 7,136 Fixed Income Securities 8 — — — 3,661 3,661 Real Estate 4,8 — 12 975 938 1,925 Other 5,8 — 349 — 1,896 2,245 Cash & Cash Equivalents 6,8 200 131 — 116 447 Subtotal $ 6,879 $ 9,925 $ 1,120 $ 14,371 32,295 Other Assets & Liabilities 7 443 Total at December 31, 2014 $ 32,738 Note 1 Represents commingled funds that invest primarily in common stocks. Note 2 Represents enhanced equity separate account and commingled fund portfolios. A portion of the portfolio may include long-short market neutral and relative value strategies that invest in publicly traded, equity and fixed income securities, as well as derivatives of equity and fixed income securities and foreign currency. Note 3 Represents limited partner investments with general partners that primarily invest in debt and equity. Note 4 Represents investments in real estate including commingled funds and directly held properties. Note 5 Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities. Note 6 Represents short-term commercial paper, bonds and other cash or cash-like instruments. Note 7 Represents trust receivables and payables that are not leveled. Note 8 In accordance with ASU 2015-07, Fair Value Measurement (Topic 820) , certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets. Derivatives in the plan are primarily used to manage risk and gain asset class exposure while still maintaining liquidity. Derivative instruments mainly consist of equity futures, interest rate futures, interest rate swaps and currency forward contracts. Our common stock represents approximately 3% of total plan assets at December 31, 2015 and 2014 . We review our assets at least quarterly to ensure we are within the targeted asset allocation ranges and, if necessary, asset balances are adjusted back within target allocations. We employ a broadly diversified investment manager structure that includes diversification by active and passive management, style, capitalization, country, sector, industry and number of investment managers. The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed due to the following: (dollars in millions) Private Equities Real Estate Total Balance, December 31, 2013 $ 90 $ 1,045 $ 1,135 Unrealized gains relating to instruments still held in the reporting period 1 66 67 Purchases, sales, and settlements, net 54 (136 ) (82 ) Balance, December 31, 2014 145 975 1,120 Realized gains (losses) 3 (4 ) (1 ) Unrealized gains relating to instruments still held in the reporting period 42 105 147 Purchases, sales, and settlements, net (8 ) 89 81 Balance, December 31, 2015 $ 182 $ 1,165 $ 1,347 Quoted market prices are used to value investments when available. Investments in securities traded on exchanges, including listed futures and options, are valued at the last reported sale prices on the last business day of the year or, if not available, the last reported bid prices. Fixed income securities are primarily measured using a market approach pricing methodology, where observable prices are obtained by market transactions involving identical or comparable securities of issuers with similar credit ratings. Mortgages have been valued on the basis of their future principal and interest payments discounted at prevailing interest rates for similar investments. Investment contracts are valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations. Real estate investments are valued on a quarterly basis using discounted cash flow models which consider long-term lease estimates, future rental receipts and estimated residual values. Valuation estimates are supplemented by third-party appraisals on an annual basis. Private equity limited partnerships are valued quarterly using discounted cash flows, earnings multiples and market multiples. Valuation adjustments reflect changes in operating results, financial condition, or prospects of the applicable portfolio company. Over-the-counter securities and government obligations are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, generally broker quotes. Temporary cash investments are stated at cost, which approximates fair value. Although we are not required to make additional contributions to our domestic defined benefit pension plans through the end of 2020, we may elect to make discretionary contributions in 2016. We expect to make total contributions of approximately $175 million to our global defined benefit pension plans in 2016. Contributions do not reflect benefits to be paid directly from corporate assets. Benefit payments, including amounts to be paid from corporate assets, and reflecting expected future service, as appropriate, are expected to be paid as follows: $2,041 million in 2016, $1,871 million in 2017, $1,935 million in 2018, $1,997 million in 2019, $2,058 million in 2020, and $10,996 million from 2021 through 2025. Postretirement Benefit Plans. We sponsor a number of postretirement benefit plans that provide health and life benefits to eligible retirees. Such benefits are provided primarily from domestic plans, which comprise approximately 89% of the benefit obligation. The postretirement plans are unfunded. (dollars in millions) 2015 2014 Change in Benefit Obligation: Beginning balance $ 952 $ 987 Service cost 3 3 Interest cost 34 41 Actuarial loss — 7 Total benefits paid (104 ) (107 ) Other 5 21 Ending balance $ 890 $ 952 Change in Plan Assets: Beginning balance $ — $ — Employer contributions 84 85 Benefits paid from plan assets (104 ) (107 ) Other 20 22 Ending balance $ — $ — Funded Status: Fair value of plan assets $ — $ — Benefit obligations (890 ) (952 ) Funded status of plan $ (890 ) $ (952 ) Amounts Recognized in the Consolidated Balance Sheet Consist of: Current liability $ (84 ) $ (89 ) Noncurrent liability (806 ) (863 ) Net amount recognized $ (890 ) $ (952 ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial gain $ (109 ) $ (113 ) Prior service (credit) cost (1 ) 1 Net amount recognized $ (110 ) $ (112 ) The components of net periodic benefit cost are as follows: (dollars in millions) 2015 2014 2013 Other Postretirement Benefits: Service cost $ 3 $ 3 $ 3 Interest cost 34 41 38 Amortization of prior service credit — (1 ) (10 ) Recognized actuarial net gain (4 ) (4 ) (4 ) Net settlement and curtailment gain (1 ) — — Net periodic other postretirement benefit cost $ 32 $ 39 $ 27 Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2015 are as follows: (dollars in millions) Current year actuarial loss $ 1 Current year prior service credit (2 ) Amortization of actuarial net gain 4 Other (1 ) Total recognized in other comprehensive loss $ 2 Net recognized in net periodic other postretirement benefit cost and other comprehensive loss $ 34 The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2016 include actuarial net gains of $3 million and prior service credits of $1 million . Major assumptions used in determining the benefit obligation and net cost for postretirement plans are presented in the following table as weighted-averages: Benefit Obligation Net Cost 2015 2014 2015 2014 2013 Discount rate 4.0 % 3.8 % 3.8 % 4.4 % 3.6 % Assumed health care cost trend rates are as follows: 2015 2014 Health care cost trend rate assumed for next year 6.5 % 7.0 % Rate that the cost trend rate gradually declines to 5.0 % 5.0 % Year that the rate reaches the rate it is assumed to remain at 2022 2019 Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: 2015 One-Percentage-Point (dollars in millions) Increase Decrease Effect on total service and interest cost $ 2 $ (2 ) Effect on postretirement benefit obligation 57 (48 ) Benefit payments, including net amounts to be paid from corporate assets and reflecting expected future service, as appropriate, are expected to be paid as follows: $84 million in 2016, $82 million in 2017, $77 million in 2018, $72 million in 2019, $67 million in 2020, and $276 million from 2021 through 2025. Multiemployer Benefit Plans. We contribute to various domestic and foreign multiemployer defined benefit pension plans. The risks of participating in these multiemployer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. Lastly, if we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans a withdrawal liability based on the underfunded status of the plan. Our participation in these plans for the annual periods ended December 31 is outlined in the table below. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2015 and 2014 is for the plan's year-end at June 30, 2014 , and June 30, 2013 , respectively. The zone status is based on information that we received from the plan and is certified by the plan's actuary. Our significant plan is in the green zone which represents a plan that is at least 80% funded and does not require a financial improvement plan (FIP) or a rehabilitation plan (RP). An extended amortization provision of ten years is utilized to recognize investment gains or losses for our significant plan. (dollars in millions) Pension Protection Act Zone Status FIP/ RP Status Contributions Pension Fund EIN/Pension Plan Number 2015 2014 Pending/ Implemented 2015 2014 2013 Surcharge Imposed Expiration Date of Collective-Bargaining Agreement National Elevator Industry Pension Plan 23-2694291 Green Green No $ 88 $ 79 $ 71 No July 8, 2017 Other funds 32 34 34 $ 120 $ 113 $ 105 For the plan years ended June 30, 2014 and 2013, respectively, we were listed in the National Elevator Industry Pension Plan 's Forms 5500 as providing more than 5% of the total contributions for the plan. At the date these financial statements were issued, Forms 5500 were not available for the plan year ending June 30, 2015. In addition, we participate in several multiemployer arrangements that provide postretirement benefits other than pensions, with the National Elevator Industry Health Benefit Plan being the most significant. These arrangements generally provide medical and life benefits for eligible active employees and retirees and their dependents. Contributions to multiemployer plans that provide postretirement benefits other than pensions were $15 million , $14 million and $12 million for 2015, 2014 and 2013, respectively. Stock-based Compensation. UTC's long-term incentive plan authorizes various types of market and performance based incentive awards that may be granted to officers and employees. Our Long-Term Incentive Plan (LTIP) was amended and restated effective April 28, 2014. Since the LTIP's inception in 2005, a total of 149 million shares have been authorized for issuance pursuant to awards under the LTIP. All equity-based compensation awards are made exclusively through the LTIP. As of December 31, 2015 , approximately 46 million shares remain available for awards under the LTIP. The LTIP does not contain an aggregate annual award limit. We expect that the shares awarded on an annual basis will range from 1.0% to 1.5% of shares outstanding. The LTIP will expire after all authorized shares have been awarded or April 30, 2020 , whichever is sooner. Under the LTIP and predecessor long-term incentive plans, the exercise price of awards is set on the grant date and may not be less than the fair market value per share on that date. Generally, stock appreciation rights and stock options have a term of ten years and a minimum three-year vesting period. In the event of retirement, awards held for more than one year may become vested and exercisable subject to certain terms and conditions. LTIP awards with performance-based vesting generally have a minimum three-year vesting period and vest based on performance against pre-established metrics. In the event of retirement, vesting for awards held more than one year does not accelerate but may vest as scheduled based on actual performance relative to target metrics. We have historically repurchased shares of our common stock in an amount at least equal to the number of shares issued under our equity compensation arrangements and will continue to evaluate this policy in conjunction with our overall share repurchase program. On November 6, 2015, the sale of Sikorsky to Lockheed Martin Corp. triggered an award modification as defined by ASC 718. In general, unvested UTC awards held by Sikorsky employees accelerated as of the sale date and an increase in the post-termination exercise period was allowed. The modification resulted in the recognition of net incremental expense of $2 million . This charge was reflected in discontinued operations. We measure the cost of all share-based payments, including stock options, at fair value on the grant date and recognize this cost in the Consolidated Statement of Operations as follows: (dollars in millions) 2015 2014 2013 Continuing operations $ 158 $ 219 $ 250 Discontinued operations 17 21 25 Total compensation cost recognized $ 175 $ 240 $ 275 The associated future income tax benefit recognized was $57 million , $80 million and $97 million for the years ended December 31, 2015, 2014 and 2013 , respectively. For the years ended December 31, 2015, 2014 and 2013 , the amount of cash received from the exercise of stock options was $41 million , $187 million and $378 million , respectively, with an associated tax benefit realized of $89 million , $125 million and $194 million , respectively. In addition, for the years ended December 31, 2015, 2014 and 2013 , the associated tax benefit realized from the vesting of performance share units and other restricted awards was $48 million , $49 million and $26 million , respectively. Also, in accordance with the Compensation—Stock Compensation Topic of the FASB ASC, for the years ended December 31, 2015, 2014 and 2013 , $64 million , $103 million and $115 million , respectively, of certain tax benefits have been reported as operating cash outflows with corresponding cash inflows from financing activities. At December 31, 2015 , there was $163 million of total unrecognized compensation cost related to non-vested equity awards granted under long-term incentive plans. This cost is expected to be recognized ratably over a weighted-average period of 2.2 years. A summary of the transactions under all long-term incentive plans for the year ended December 31, 2015 follows: Stock Options Stock Appreciation Rights Performance Share Units Other Incentive Shares/Units (shares and units in thousands) Shares Average Price* Shares Average Price* Units Average Price** Outstanding at: December 31, 2014 2,288 $ 73.76 38,404 $ 77.48 2,532 $ 87.65 1,495 Granted 312 110.78 5,411 111.15 693 115.08 574 Exercised/earned (648 ) 56.10 (4,975 ) 64.56 (884 ) 74.71 (487 ) Cancelled (73 ) 68.69 (729 ) 96.67 (171 ) 86.60 (115 ) December 31, 2015 1,879 $ 86.19 38,111 $ 83.58 2,170 $ 101.78 1,467 * weighted-average exercise price ** weighted-average grant stock price The weighted-average grant date fair value of stock options and stock appreciation rights granted during 2015, 2014, and 2013 was $18.69 , $28.36 and $19.91 , respectively. The weighted-average grant date fair value of performance share units, which vest upon achieving certain performance metrics, granted during 2015, 2014, and 2013 was $120.36 , $125.41 and $91.71 , respectively. The total fair value of awards vested during the years ended December 31, 2015, 2014 and 2013 was $247 million , $226 million and $219 million , respectively. The total intrinsic value (which is the amount by which the stock price exceeded the exercise price on the date of exercise) of stock options and stock appreciation rights exercised during the years ended December 31, 2015, 2014 and 2013 was $281 million , $425 million and $608 million , respectively. The total intrinsic value (which is the stock price at vesting) of performance share units and other restricted awards vested was $151 million , $154 million and $75 million during the years ended December 31, 2015, 2014 and 2013 , respectively. The following table summarizes information about equity awards outstanding that are vested and expected to vest and equity awards outstanding that are exercisable at December 31, 2015 : Equity Awards Vested and Expected to Vest Equity Awards That Are Exercisable (shares in thousands; aggregate intrinsic value in millions) Awards Average Price* Aggregate Intrinsic Value Remaining Term** Awards Average Price* Aggregate Intrinsic Value Remaining Term** Stock Options/Stock Appreciation Rights 39,894 $ 82.95 $ 675 5.4 years 25,887 $ 72.74 $ 621 4.1 years Performance Share Units/Restricted Stock 2,128 — 204 1.7 years * weighted-average exercise price per share ** weighted-average contractual remaining term in years The fair value of each option award is estimated on the date of grant using a binomial lattice model. The following table indicates the assumptions used in estimating fair value for the years ended December 31, 2015, 2014 and 2013 . Lattice-based option models incorporate ranges of assumptions for inputs, those ranges are as follows: 2015 2014 2013 Expected volatility 20% - 23% 22% - 26% 26% - 27% Weighted-average volatility 21 % 26 % 27 % Expected term (in years) 6.0 - 6.8 7.6 - 8.0 7.3 - 7.6 Expected dividends 2.2 % 2.2 % 2.6 % Risk-free rate 0.0% - 2.2% 0.0% - 3.1% 0.1% - 1.9% Expected volatilities are based on the returns of our stock, including implied volatilities from traded options on our stock for the binomial lattice model. We use historical data to estimate equity award exercise and employee termination behavior within the valuation model. Separate employee groups and equity award characteristics are considered separately for valuation purposes. The expected term represents an estimate of the period of time equity awards are expected to remain outstanding. The risk-free rate is based on the term structure of interest rates at the time of equity award grant. |
Restructuring and Other Costs
Restructuring and Other Costs | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING COSTS During 2015 , we recorded net pre-tax restructuring costs totaling $535 million for new and ongoing restructuring actions. We recorded charges in the segments as follows: (dollars in millions) Otis $ 51 UTC Climate, Controls & Security 108 Pratt & Whitney 105 UTC Aerospace Systems 111 Eliminations and other 21 Restructuring costs recorded within continuing operations 396 Restructuring costs recorded within discontinued operations 139 Total $ 535 During the year ended December 31, 2015 , we incurred restructuring costs that were recorded within discontinued operations of $139 million , which includes approximately $109 million of net settlements and curtailment losses for pension benefits. There were no curtailment losses related to discontinued operations for the year ended December 31, 2014 . Restructuring charges incurred in 2015 primarily relate to actions initiated during 2015 and 2014 , and were recorded as follows: (dollars in millions) Cost of sales $ 185 Selling, general and administrative 211 Restructuring costs recorded within continuing operations 396 Restructuring costs recorded within discontinued operations 139 Total $ 535 2015 Actions. During 2015 , we initiated restructuring actions relating to ongoing cost reduction efforts, including workforce reductions and consolidation of field operations. We recorded net pre-tax restructuring costs totaling $326 million for restructuring actions initiated in 2015 , consisting of $148 million in cost of sales, and $178 million in selling, general and administrative expenses. We are targeting to complete in 2016 and 2017 the majority of the remaining workforce and all facility related cost reduction actions initiated in 2015 . No specific plans for significant other actions have been finalized at this time. The following table summarizes the accrual balances and utilization by cost type for the 2015 restructuring actions: (dollars in millions) Severance Facility Exit, Lease Termination & Other Costs Total Net pre-tax restructuring costs $ 289 $ 37 $ 326 Utilization and foreign exchange (106 ) (14 ) (120 ) Balance at December 31, 2015 $ 183 $ 23 $ 206 The following table summarizes expected, incurred and remaining costs for the 2015 restructuring actions by segment: (dollars in millions) Expected Costs Cost Incurred During 2015 Remaining Costs at December 31, 2015 Otis $ 51 $ (35 ) $ 16 UTC Climate, Controls & Security 207 (83 ) 124 Pratt & Whitney 83 (82 ) 1 UTC Aerospace Systems 181 (105 ) 76 Eliminations and other 21 (21 ) — Total $ 543 $ (326 ) $ 217 2014 Actions. During 2015 , we recorded net pre-tax restructuring costs totaling $73 million for restructuring actions initiated in 2014 , consisting of $43 million in cost of sales and $30 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 Facility Exit, Lease Termination and Other Costs Total Restructuring accruals at January 1, 2015 $ 156 $ 9 $ 165 Net pre-tax restructuring costs 52 21 73 Utilization and foreign exchange (116 ) (28 ) (144 ) Balance at December 31, 2015 $ 92 $ 2 $ 94 The following table summarizes expected, incurred and remaining costs for the 2014 programs by segment: (dollars in millions) Expected Costs Costs Incurred During 2014 Costs Incurred During 2015 Remaining Costs at December 31, 2015 Otis $ 121 $ (98 ) $ (16 ) $ 7 UTC Climate, Controls & Security 123 (86 ) (31 ) 6 Pratt & Whitney 117 (64 ) (24 ) 29 UTC Aerospace Systems 80 (72 ) (2 ) 6 Eliminations and other 5 (5 ) — — Total $ 446 $ (325 ) $ (73 ) $ 48 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments Disclosure [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 $ 15.6 billion and $ 13.9 billion at December 31, 2015 and 2014 , respectively. Additional information pertaining to foreign exchange and hedging activities is included in Note 1. The following table summarizes the fair value of derivative instruments as of December 31, 2015 and 2014 which consist solely of foreign exchange contracts: Asset Derivatives Liability Derivatives (dollars in millions) 2015 2014 2015 2014 Derivatives designated as hedging instruments $ 4 $ 3 $ 428 $ 248 Derivatives not designated as hedging instruments 97 139 105 71 As discussed in Note 9, 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. As of December 31, 2015, the net investment hedge is deemed to be effective. The impact from foreign exchange derivative instruments that qualified as cash flow hedges was as follows: Year Ended December 31, (dollars in millions) 2015 2014 Loss recorded in Accumulated other comprehensive loss $ (415 ) $ (263 ) Loss reclassified from Accumulated other comprehensive loss into Product sales (effective portion) $ 234 $ 96 Assuming current market conditions continue, a $ 225 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 December 31, 2015 , all derivative contracts accounted for as cash flow hedges mature by January 2020. We recognized a gain of $63 million and $53 million in Other income, net on the Consolidated Statement of Operations from foreign exchange contracts not designated as hedging instruments in 2015 and 2014 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS The Fair Value Measurements and Disclosures 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; ▪ Level 3 - unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The following table provides the assets and liabilities carried at fair value measured on a recurring and non-recurring basis as of December 31, 2015 and 2014 : 2015 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 951 $ 951 $ — $ — Derivative assets 101 — 101 — Derivative liabilities (533 ) — (533 ) — 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 ) — Non-recurring fair value measurements: Business dispositions 3 — 3 — In 2015, we recorded net gains of approximately $126 million 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, and an impairment charge of $61 million related to certain assets held for sale by UTC Aerospace Systems. During 2014 , we recorded net gains of approximately $23 million , including a $48 million gain during 2014 , as a result of fair value adjustments related to the acquisition of the majority interest in a Pratt & Whitney joint venture. During 2014 , we also recorded an approximately $30 million net gain from UTC Climate, Controls & Security's ongoing portfolio transformation, primarily due to a gain on the sale of an interest in a joint venture in North America, and a charge of approximately $28 million , included in discontinued operations, 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 December 31, 2015 , there were no significant transfers in and out of Level 1 and Level 2. As of December 31, 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 at December 31, 2015 and 2014 : December 31, 2015 December 31, 2014 (dollars in millions) Carrying Fair Carrying Fair Long-term receivables $ 224 $ 209 $ 214 $ 204 Customer financing notes receivable 403 403 262 260 Short-term borrowings (926 ) (926 ) (126 ) (126 ) Long-term debt (excluding capitalized leases) (19,476 ) (21,198 ) (19,623 ) (22,244 ) Long-term liabilities (458 ) (419 ) (80 ) (74 ) The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Consolidated Balance Sheet as of December 31, 2015 : (dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 209 $ — $ 209 $ — Customer financing notes receivable 403 — 403 — Short-term borrowings (926 ) — (727 ) (199 ) Long-term debt (excluding capitalized leases) (21,198 ) — (20,845 ) (353 ) Long-term liabilities (419 ) — (419 ) — |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES We extend a variety of financial guarantees to third parties. As of December 31, 2015 and 2014 , the following financial guarantees were outstanding: December 31, 2015 December 31, 2014 (dollars in millions) Maximum Carrying Maximum Carrying Commercial aerospace financing arrangements (see Note 5) $ 365 $ 12 $ 411 $ 18 Credit facilities and debt obligations (expire 2016 to 2028) 241 — 211 15 Performance guarantees 55 3 136 — We also have obligations arising from sales of certain businesses and assets, including those from representations and warranties and related indemnities for environmental, health and safety, tax and employment matters. The maximum potential payment related to these obligations is not a specified amount as a number of the obligations do not contain financial caps. The carrying amount of liabilities related to these obligations was $171 million and $186 million at December 31, 2015 and 2014 , respectively. For additional information regarding the environmental indemnifications, see Note 17. We accrue for costs associated with guarantees when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts, and where no amount within a range of estimates is more likely, the minimum is accrued. In accordance with the Guarantees Topic of the FASB ASC we record these liabilities at fair value. We provide service and warranty policies on our products and extend performance and operating cost guarantees beyond our normal service and warranty policies on some of our products, particularly commercial aircraft engines. In addition, we incur discretionary costs to service our products in connection with specific product performance issues. Liabilities for performance and operating cost guarantees are based upon future product performance and durability, and are largely estimated based upon historical experience. Adjustments are made to accruals as claim data and historical experience warrant. The changes in the carrying amount of service and product warranties and product performance guarantees for the years ended December 31, 2015 and 2014 are as follows: (dollars in millions) 2015 2014 Balance as of January 1 $ 1,264 $ 1,324 Warranties and performance guarantees issued 291 302 Settlements made (259 ) (322 ) Other (84 ) (40 ) Balance as of December 31 $ 1,212 $ 1,264 |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | CONTINGENT LIABILITIES 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. Leases. We occupy space and use certain equipment under lease arrangements. Rental commitments of $2,183 million at December 31, 2015 under long-term non-cancelable operating leases are payable as follows: $529 million in 2016, $391 million in 2017, $285 million in 2018, $207 million in 2019, $133 million in 2020 and $638 million thereafter. Rent expense was $386 million in 2015, $434 million in 2014 and $429 million in 2013. Additional information pertaining to commercial aerospace rental commitments is included in Note 5 to the Consolidated Financial Statements. 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, 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. As of December 31, 2015 and 2014 , we had $837 million and $863 million reserved for environmental remediation, respectively. Additional information pertaining to environmental matters is included in Note 1 to the Consolidated Financial Statements. Government. In the ordinary course of business, the Company and its subsidiaries and our properties are subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations and threatened legal actions and proceedings. For example, 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. Such U.S. Government investigations often take years to complete and could result in administrative, civil or criminal liabilities, including repayments, fines, treble and other damages, forfeitures, restitution or penalties, or could lead to suspension or debarment of U.S. Government contracting or of export privileges. For instance, 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 also reserves the right to debar a contractor from receiving new government contracts for fraudulent, criminal or other seriously improper conduct. 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, including because cost or pricing data we submitted in negotiation of the contract prices or cost accounting practices may not have conformed to government regulations, or that certain payments be delayed or withheld. 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 (District Court), 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 $7,090,000, 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) the civil penalty 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 District Court to decide in the first instance whether the government should have another opportunity to prove that it suffered any actual damages. On July 17, 2015, the case returned to the District Court, at which time we filed a motion for entry of judgment, seeking a judgment of zero actual damages. The government responded by filing a motion on August 28, 2015, in which it abandoned its claim for actual damages, but now seeks a judgment of approximately $85 million, representing (1) disgorgement of UTC’s alleged profits in fiscal year 1985, the first year of the multi-year engine competition, (2) prejudgment interest and (3) the approximately $7 million civil penalty. We believe that there is no basis for the government’s new profit disgorgement claim. Accordingly, we continue not to accrue a reserve beyond the civil penalty referenced above. 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. On March 18, 2014, Pratt & Whitney filed an appeal to the Armed Services Board of Contract Appeals. Pratt & Whitney’s appeal is still pending and we continue to believe the government’s claim is without merit. 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 $235 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 $129 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 €275 million (approximately $300 million) through December 31, 2015 to avoid additional interest accruals pending final resolution of this matter. Asbestos Matters As previously reported, like many other industrial companies, we and our subsidiaries have been named as defendants in lawsuits alleging personal injury as a result of exposure to asbestos integrated into certain of our products or business premises. While we have never manufactured asbestos and no longer incorporate it in any currently-manufactured products, certain of our historical products, like those of many other manufacturers, have contained components incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or were covered in full or in part by insurance or other forms of indemnity. Additional cases were litigated and settled without any insurance reimbursement. The amounts involved in asbestos related claims were not material individually or in the aggregate in any year. During the fourth quarter of 2015, we recorded a liability for the contingencies associated with pending and unasserted future asbestos claims because the aggregate amounts involved are now reasonably estimable due to the definitization of the insurance coverage for existing and potential future asbestos claims through the negotiation and establishment of settlement agreements during 2015 as well as the stabilization of company and industry experience. Over the past few years, we have been engaged in disputes with insurance carriers, particularly those having issued excess general liability insurance from the mid-1950s through the mid-1980s, regarding the extent of coverage available for asbestos-related personal injury claims. We commenced two separate insurance coverage litigations against excess insurers - one lawsuit in Ohio on behalf of Goodrich Corporation and the other in New York on behalf of Carrier Corporation. The level of activity in the insurance coverage lawsuits increased significantly in 2015, causing us to intensify our on-going review of our history and experience with asbestos-related claims. In particular, we have been working extensively with outside counsel and actuarial experts to calculate past asbestos-related losses in order to demonstrate exhaustion of primary layers of insurance and prove past damages, as well as to show that future asbestos-related losses would likely trigger excess insurance policies. We recently reached binding settlement agreements with all of the Goodrich excess insurers, and reached a settlement with the largest block of available solvent excess insurance coverage issued to Carrier Corporation. As a result of these settlements in the coverage litigations, pursuant to each of which we will annually absorb uninsured asbestos claims costs, and with the assistance of an outside actuarial expert, we are now able to make a reasonable estimate of the probable range of the total liability for pending and unasserted future asbestos related claims. This determination was based not only on our analysis of our own asbestos claims history for the last five years and our contractual insurance coverage litigations, but also on broader nationwide asbestos trend data, including: a substantial drop in non-malignant asbestos claims; an increasing focus on malignancy claims, primarily those involving mesothelioma, a cancer that now has an historical and fairly predictable future annual incidence rate; and a substantial decrease in average annual claim filings. We have estimated and recorded our total liability to resolve all pending and unasserted potential future claims through 2059 to be $376 million. This amount is on a pre-tax basis, not discounted, and excludes the Company’s defense fees (which will continue to be expensed by the Company as they are incurred). In addition, during the fourth quarter of 2015 the Company recorded a $106 million insurance recovery receivable for probable asbestos related recoveries. In calculating this amount, the Company used the estimated asbestos liability for pending and projected future claims and considered the amount of insurance available, allocation methodologies, solvency ratings, creditworthiness, and the contractual terms with each insurer. As a result, we recorded a noncash pretax charge to earnings of $237 million in the fourth quarter of 2015. The amounts recorded by UTC for asbestos-related claims are based on currently available information and assumptions that we believe are reasonable. Our actual liabilities or insurance recoveries could be higher or lower than those recorded if actual results vary significantly from the assumptions. Key variables in these assumptions include the number and type of new claims to be filed each year, the average cost of resolution of each new claim, the resolution of coverage issues with other excess insurance carriers with whom we have not yet achieved settlements, and the solvency risk with respect to our insurance carriers. Other factors that may affect our future liability include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, reforms that may be made by state and federal courts, and the passage of state or federal tort reform legislation. Other. As described in Note 16 to the Consolidated Financial Statements, 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. In the ordinary course of business, the Company and its subsidiaries are also routinely defendants in, parties to or otherwise subject to many pending and threatened legal actions, claims, disputes and proceedings. These matters are often based on alleged violations of contract, product liability, warranty, regulatory, environmental, health and safety, employment, intellectual property, tax and other laws. In some of these proceedings, claims for substantial monetary damages are asserted against the Company and its subsidiaries and could result in fines, penalties, compensatory or treble damages or non-monetary relief. 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 | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Financial Data | SEGMENT FINANCIAL DATA Our operations for the periods presented herein are classified into four principal segments. The segments are generally determined based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services. As discussed in Note 3, on November 6, 2015 , we completed the sale of Sikorsky to Lockheed Martin Corp. The tables below exclude amounts attributable to Sikorsky, which have been reclassified to Discontinued Operations in the accompanying Consolidated Statement of Operations and to Assets held for sale in the accompanying Consolidated Balance Sheet for all periods presented. Otis products include elevators, escalators, moving walkways and service sold to customers in the commercial and residential property industries around the world. UTC Climate, Controls & Security products and related services include HVAC and refrigeration systems, building controls and automation, fire and special hazard suppression systems and equipment, security monitoring and rapid response systems, provided to a diversified international customer base principally in the industrial, commercial and residential property and commercial transportation sectors. Pratt & Whitney products include commercial, military, business jet and general aviation aircraft engines, parts and services, industrial gas generators, sold to a diversified customer base, including international and domestic commercial airlines and aircraft leasing companies, aircraft manufacturers, and U.S. and foreign governments. Pratt & Whitney also provides product support and a full range of overhaul, repair and fleet management services. UTC Aerospace Systems provides aerospace products and aftermarket services for commercial, military, business jet and general aviation customers worldwide. Products include electric power generation, power management and distribution systems, air data and flight sensing and management systems, engine control systems, electric systems, intelligence, surveillance and reconnaissance systems, engine components, environmental control systems, fire and ice detection and protection systems, propeller systems, aircraft aerostructures including engine nacelles, thrust reversers, and mounting pylons, interior and exterior aircraft lighting, aircraft seating and cargo systems, actuation systems, landing systems, including landing gears, wheels and brakes, and space products and subsystems. Aftermarket services include spare parts, overhaul and repair, engineering and technical support and fleet management solutions. We have reported our financial and operational results for the periods presented herein under the four principal segments noted above, consistent with how we have reviewed our business operations for decision-making purposes, resource allocation and performance assessment during 2015 . Segment Information. Total sales by segment include intersegment sales, which are generally made at prices approximating those that the selling entity is able to obtain on external sales. Segment information for the years ended December 31 is as follows: Net Sales Operating Profits (dollars in millions) 2015 2014 2013 2015 2014 2013 Otis $ 11,980 $ 12,982 $ 12,484 $ 2,338 $ 2,640 $ 2,590 UTC Climate, Controls & Security 16,707 16,823 16,809 2,936 2,782 2,590 Pratt & Whitney 14,082 14,508 14,501 861 2,000 1,876 UTC Aerospace Systems 14,094 14,215 13,347 1,888 2,355 2,018 Total segment 56,863 58,528 57,141 8,023 9,777 9,074 Eliminations and other (765 ) (628 ) (541 ) (268 ) 304 (44 ) General corporate expenses — — — (464 ) (488 ) (481 ) Consolidated $ 56,098 $ 57,900 $ 56,600 $ 7,291 $ 9,593 $ 8,549 Total Assets Capital Expenditures Depreciation & Amortization (dollars in millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Otis $ 8,846 $ 9,313 $ 9,354 $ 83 $ 87 $ 122 $ 176 $ 209 $ 209 UTC Climate, Controls & Security 21,287 21,217 21,543 261 228 266 337 349 380 Pratt & Whitney 20,336 18,143 17,062 692 692 617 476 390 319 UTC Aerospace Systems 34,736 35,034 35,461 537 533 510 796 807 761 Total segment 85,205 83,707 83,420 1,573 1,540 1,515 1,785 1,755 1,669 Eliminations and other 2,279 2,631 1,609 79 54 54 78 65 66 Consolidated $ 87,484 $ 86,338 $ 85,029 $ 1,652 $ 1,594 $ 1,569 $ 1,863 $ 1,820 $ 1,735 Geographic External Sales and Operating Profit. Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. U.S. external sales include export sales to commercial customers outside the U.S. and sales to the U.S. Government, commercial and affiliated customers, which are known to be for resale to customers outside the U.S. Long-lived assets are net fixed assets attributed to the specific geographic regions. External Net Sales Operating Profits Long-Lived Assets (dollars in millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 United States Operations $ 30,989 $ 30,814 $ 29,901 $ 4,391 $ 5,067 $ 4,272 $ 4,517 $ 4,211 $ 3,918 International Operations Europe 10,945 12,587 12,589 1,882 2,238 2,333 1,525 1,577 1,715 Asia Pacific 8,425 8,746 8,626 1,641 1,712 1,770 994 995 939 Other 5,584 5,511 5,269 109 760 699 1,273 1,379 1,199 Eliminations and other 155 242 215 (732 ) (184 ) (525 ) 423 430 427 Consolidated $ 56,098 $ 57,900 $ 56,600 $ 7,291 $ 9,593 $ 8,549 $ 8,732 $ 8,592 $ 8,198 Sales from U.S. operations include export sales as follows: (dollars in millions) 2015 2014 2013 Europe $ 4,366 $ 4,137 $ 3,931 Asia Pacific 2,902 3,469 3,963 Other 2,473 2,670 2,565 $ 9,741 $ 10,276 $ 10,459 Major Customers. Net Sales include sales under prime contracts and subcontracts to the U.S. Government, primarily related to Pratt & Whitney and UTC Aerospace Systems products, as follows: (dollars in millions) 2015 2014 2013 Pratt & Whitney $ 2,945 $ 3,126 $ 3,559 UTC Aerospace Systems 2,409 2,459 2,530 Other 276 294 253 $ 5,630 $ 5,879 $ 6,342 Net sales by Sikorsky under prime contracts and subcontracts to the U.S. Government of approximately $3.1 billion , $3.8 billion and $3.6 billion have been reclassified to Discontinued Operations in our Consolidated Statement of Operations for the years ended December 31, 2015, 2014 and 2013, respectively. Net sales to Airbus, primarily related to Pratt & Whitney and UTC Aerospace Systems products, were approximately $7,624 million , $7,757 million and $6,171 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data - Unaudited | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information [Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) 2015 Quarters 2014 Quarters (dollars in millions, except per share amounts) First Second Third Fourth First Second Third Fourth Net Sales $ 13,320 $ 14,690 $ 13,788 $ 14,300 $ 13,439 $ 14,868 $ 14,613 $ 14,980 Gross margin 3,814 4,218 3,988 3,647 3,857 4,448 4,448 4,249 Net income attributable to common shareowners 1,426 1,542 1,362 3,278 1,213 1,680 1,854 1,473 Earnings per share of Common Stock: Basic—net income $ 1.60 $ 1.76 $ 1.55 $ 3.86 $ 1.35 $ 1.87 $ 2.07 $ 1.64 Diluted—net income $ 1.58 $ 1.73 $ 1.54 $ 3.86 $ 1.32 $ 1.84 $ 2.04 $ 1.62 COMPARATIVE STOCK DATA (UNAUDITED) 2015 2014 (common stock) High Low Dividend High Low Dividend First quarter $ 124.11 $ 111.52 $ 0.64 $ 118.31 $ 107.91 $ 0.59 Second quarter $ 119.14 $ 110.93 $ 0.64 $ 120.09 $ 113.10 $ 0.59 Third quarter $ 111.58 $ 86.82 $ 0.64 $ 115.93 $ 103.79 $ 0.59 Fourth quarter $ 100.80 $ 88.36 $ 0.64 $ 117.24 $ 99.17 $ 0.59 Our common stock is listed on the New York Stock Exchange. The high and low prices are based on the Composite Tape of the New York Stock Exchange. There were approximately 20,097 registered shareholders at January 31, 2016 . |
Performance Graph - Unaudited
Performance Graph - Unaudited | 12 Months Ended |
Dec. 31, 2015 | |
Performance Graph [Abstract] | |
Cumulative Total Shareholder Return [Text Block] | PERFORMANCE GRAPH (UNAUDITED) The following graph presents the cumulative total shareholder return for the five years ending December 31, 2015 for our common stock, as compared to the Standard & Poor's 500 Stock Index and to the Dow Jones 30 Industrial Average. Our common stock price is a component of both indices. These figures assume that all dividends paid over the five-year period were reinvested, and that the starting value of each index and the investment in common stock was $100.00 on December 31, 2010 . COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN December 2010 2011 2012 2013 2014 2015 United Technologies Corporation $ 100.00 $ 95.03 $ 109.38 $ 155.18 $ 160.13 $ 137.06 S&P 500 Index $ 100.00 $ 102.11 $ 118.45 $ 156.82 $ 178.29 $ 180.75 Dow Jones Industrial Average $ 100.00 $ 108.38 $ 119.48 $ 154.91 $ 170.46 $ 170.83 |
Summary of Accounting Princip30
Summary of Accounting Principles (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Discontinued Operations, Policy [Policy Text Block] | On November 6, 2015, we completed the sale of Sikorsky to Lockheed Martin Corp. Accordingly, the results of operations and the related cash flows of Sikorsky have been reclassified to Discontinued Operations in our Consolidated Statements of Operations, Comprehensive Income and Cash Flows for all periods presented. The assets and liabilities of Sikorsky have been reclassified to Assets held for sale and Liabilities held for sale, respectively, in our Consolidated Balance Sheet as of December 31, 2014. Cash flows from the operation of Sikorsky are included in our results through the date of sale to Lockheed Martin Corp. See Note 3 for further discussion. |
Consolidation Policy [Text Block] | Consolidation. The Consolidated Financial Statements include the accounts of United Technologies Corporation (UTC) and its controlled subsidiaries. Intercompany transactions have been eliminated. |
Cash And Cash Equivalents Policy [Text Block] | Cash and Cash Equivalents. Cash and cash equivalents includes cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less. |
Cash And Cash Equivalents Restricted Cash And Cash Equivalents Policy | On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions or divestitures or other legal obligations. As of December 31, 2015 and 2014 , the amount of such restricted cash was approximately $45 million and $255 million , respectively |
Accounts Receivable Policy [Text Block] | Accounts Receivable. Current and long-term accounts receivable as of December 31, 2015 include retainage of $141 million and unbilled receivables of $2,318 million , which includes approximately $1,091 million of unbilled receivables under commercial aerospace long-term aftermarket contracts. Current and long-term accounts receivable as of December 31, 2014 include retainage of $147 million and unbilled receivables of $1,863 million , which includes approximately $819 million of unbilled receivables under commercial aerospace long-term aftermarket contracts. See Note 5 for discussion of commercial aerospace industry assets and commitments. Retainage represents amounts that, pursuant to the applicable contract, are not due until project completion and acceptance by the customer. Unbilled receivables represent revenues that are not currently billable to the customer under the terms of the contract. These items are expected to be billed and collected in the normal course of business. |
Marketable Equity Securities Policy | Marketable Equity Securities. Equity securities that have a readily determinable fair value and that we do not intend to trade are classified as available-for-sale and carried at fair value. Unrealized holding gains and losses are recorded as a separate component of shareowners' equity, net of deferred income taxes. |
Inventories and Contracts in Progress Policy Text Block | Inventories and Contracts in Progress. Inventories and contracts in progress are stated at the lower of cost or estimated realizable value and are primarily based on first-in, first-out (FIFO) or average cost methods; however, certain UTC Aerospace Systems and UTC Climate, Controls & Security entities use the last-in, first-out (LIFO) method. If inventories that were valued using the LIFO method had been valued under the FIFO method, they would have been higher by $127 million and $130 million at December 31, 2015 and 2014 , respectively. Costs accumulated against specific contracts or orders are at actual cost. Valuation reserves for excess, obsolete, and slow-moving inventory are estimated by comparing the inventory levels of individual parts to both future sales forecasts or production requirements and historical usage rates in order to identify inventory where the resale value or replacement value is less than inventoriable cost. Other factors that management considers in determining the adequacy of these reserves include whether individual inventory parts meet current specifications and cannot be substituted for a part currently being sold or used as a service part, overall market conditions, and other inventory management initiatives. Manufacturing costs are allocated to current production and firm contracts. |
Equity Method Investments Policy [Policy Text Block] | Equity Method Investments. Investments in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in Other assets on the Consolidated Balance Sheet. Under this method of accounting, our share of the net earnings or losses of the investee is included in Other income, net on the Consolidated Statement of Operations since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. |
Goodwill And Intangible Assets Policy [Text Block] | Goodwill and Intangible Assets. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized. Goodwill and indefinite-lived intangible assets are subject to annual impairment testing using the guidance and criteria described in the Intangibles - Goodwill and Other Topic of the FASB ASC. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. Intangible assets consist of service portfolios, patents, trademarks/tradenames, customer relationships and other intangible assets including a collaboration asset established in connection with the restructuring of participants' interests in IAE as discussed further in Note 2. Acquired intangible assets are recognized at fair value in purchase accounting and then amortized to cost of sales and selling, general & administrative expenses over the applicable useful lives. Also included within other intangible assets are commercial aerospace payments made to secure certain contractual rights to provide product on new aircraft platforms. Consideration paid on these contractual commitments is capitalized when it is no longer conditional. Useful lives of finite-lived intangible assets are estimated based upon the nature of the intangible asset and the industry in which the intangible asset is used. These intangible assets are amortized based on the pattern in which the economic benefits of the intangible assets are consumed. For both our commercial aerospace collaboration assets and exclusivity arrangements, the pattern of economic benefit generally results in lower amortization during the development period with increasing amortization as programs enter full rate production and aftermarket cycles. If a pattern of economic benefit cannot be reliably determined, a straight-line amortization method is used. The range of estimated useful lives is as follows: Collaboration assets 30 years Customer relationships and related programs 1 to 40 years Purchased service contracts 5 to 25 years Patents & trademarks 4 to 40 years Exclusivity assets 5 to 25 years |
Other Long Lived Assets Policy [Text Block] | Other Long-Lived Assets. We evaluate the potential impairment of other long-lived assets when appropriate. If the carrying value of other long-lived assets held and used exceeds the sum of the undiscounted expected future cash flows, the carrying value is written down to fair value. |
Long-Term Financing Receivables Policy [Text Block] | Long-Term Financing Receivables. Our long-term financing receivables primarily represent balances related to the aerospace businesses such as long-term trade accounts receivable, leases, and notes receivable. We also have other long-term receivables in 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 related to long-term aftermarket contracts, are principally amounts arising from the sale of goods and services with a contractual maturity date or realization period of greater than one year and are recognized as "Other assets" in our 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 Consolidated Balance Sheet. The following table summarizes the balance by class of aerospace business-related long-term receivables as of December 31, 2015 and 2014 : (dollars in millions) 2015 2014 Long-term trade accounts receivable $ 903 $ 651 Notes and leases receivable 469 381 Total long-term receivables $ 1,372 $ 1,032 We determine a receivable is impaired when, based on current information and events, it is probable that we will be unable to collect amounts due according to the contractual terms of the receivable agreement. Factors considered in assessing collectability and risk include, but are not limited to, examination of credit quality indicators and other evaluation measures, underlying value of any collateral or security interests, significant past due balances, historical losses, and existing economic conditions. We determine credit ratings for each customer in our portfolio based upon public information and information obtained directly from our customers. We conduct a review of customer credit ratings, published historical credit default rates for different rating categories, and multiple third party aircraft value publications as a basis to validate the reasonableness of the allowance for losses on these balances quarterly or when events and circumstances warrant. Customer credit ratings range from 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 13% and 9% of our long-term receivables were considered to bear high credit risk as of December 31, 2015 and 2014 , respectively. See Note 5 for further discussion of commercial aerospace industry assets and commitments. Reserves for credit losses on receivables relate to specifically identified receivables that are evaluated individually for impairment. For notes and leases receivable, we determine a specific reserve for exposure based on the difference between the carrying value of the receivable and the estimated fair value of the related collateral in connection with the evaluation of credit risk and collectability. For long-term trade accounts receivable, we evaluate credit risk and collectability individually to determine if an allowance is necessary. Our long-term receivables reflected in the table above, which include reserves of $18 million and $10 million as of December 31, 2015 and 2014 , respectively, are individually evaluated for impairment. At both December 31, 2015 and 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 impaired. |
Income Tax Policy [Text Block] | Income Taxes. 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. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest expense has also been recognized. We recognize accrued interest related to unrecognized tax benefits in interest expense. Penalties, if incurred, would be recognized as a component of income tax expense. |
Revenue Recognition Policy | Revenue Recognition. As a result of our diverse product and service mix and customer base, we use multiple revenue recognition practices. We recognize sales for products and services in accordance with the provisions of Staff Accounting Bulletin (SAB) Topic 13, Revenue Recognition, as applicable. Products and services included within the scope of this SAB Topic include heating, ventilating, air-conditioning and refrigeration systems, certain alarm and fire detection and suppression systems, commercially funded research and development contracts and certain aerospace components. Sales within the scope of this SAB Topic are recognized when persuasive evidence of an arrangement exists, product delivery has occurred or services have been rendered, pricing is fixed or determinable and collectability is reasonably assured. Subsequent changes in service contracts are accounted for prospectively. Contract Accounting and Separately Priced Maintenance and Extended Warranty Aftermarket Contracts: For our construction-type and certain production-type contracts, sales are recognized on a percentage-of-completion basis following contract accounting methods. Contracts consist of enforceable agreements which form the basis of our unit of accounting for measuring sales, accumulating costs and recording loss provisions as necessary. Contract accounting requires estimates of award fees and other sources of variable consideration as well as future costs over the performance period of the contract. Cost estimates also include the estimated cost of satisfying our offset obligations required under certain contracts. Cost estimates are subject to change and result in adjustments to margins on contracts in progress. The extent of progress toward completion on our long-term commercial aerospace equipment is measured using units of delivery or other contractual milestones. The extent of progress towards completion on our development and other cost reimbursement contracts in our aerospace businesses and elevator and escalator sales, installation, modernization and other construction contracts in our commercial businesses is measured using cost-to-cost based input measures. Contract costs include estimated inventoriable manufacturing, engineering, product warranty and product performance guarantee costs, as appropriate. For separately priced product maintenance and extended warranty aftermarket contracts, sales are recognized over the contract period. In the commercial businesses, sales are primarily recognized on a straight-line basis. In the aerospace businesses, sales are primarily recognized in proportion to cost as sufficient historical evidence indicates that costs of performing services under the contract are incurred on an other than straight-line basis. Loss provisions on original equipment contracts are recognized to the extent estimated contract costs exceed the estimated consideration from the products contemplated under the contractual arrangement. For new commitments, we generally record loss provisions at the earlier of contract announcement or contract signing except for certain requirements contracts under which losses are recorded upon receipt of the purchase order which obligates us to perform. For existing commitments, anticipated losses on contracts are recognized in the period in which losses become evident. Products contemplated under contractual arrangements include firm quantities of products sold under contract and, in the large commercial engine and wheels and brakes businesses, future highly probable sales of replacement parts required by regulation that are expected to be sold subsequently for incorporation into the original equipment. In the large commercial engine and wheels and brakes businesses, when the combined original equipment and aftermarket arrangements for each individual sales campaign are profitable, we record original equipment product losses, as applicable, at the time of delivery. We review our cost estimates on significant contracts on a quarterly basis, and for others, no less frequently than annually or when circumstances change and warrant a modification to a previous estimate. We record changes in contract estimates using the cumulative catch-up method in accordance with the Revenue Recognition Topic of the FASB ASC. Operating profits included significant net favorable changes in aerospace contract estimates of approximately $115 million in 2015 driven by several net favorable contract adjustments recorded throughout the year, largely at the Pratt & Whitney segment. Collaborations: Sales generated from engine programs, spare parts sales, and aftermarket business under collaboration arrangements are recorded consistent with our revenue recognition policies in our consolidated financial statements. Amounts attributable to our collaborators for their share of sales are recorded as cost of sales in our financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement of a collaborator's share of program costs is recorded as a reduction of the related expense item at that time. |
Revenue Recognition, Cash Payments to Customers [Policy Text Block] | Cash Payments to Customers: UTC Climate, Controls & Security customarily offers its customers incentives to purchase products to ensure an adequate supply of its products in the distribution channels. The principal incentive program provides reimbursements to distributors for offering promotional pricing for our products. We account for incentive payments made as a reduction in sales. In our aerospace businesses, we may make participation payments to certain customers to secure certain contractual rights. To the extent these rights are incremental and are supported by the incremental cash flows obtained, they are capitalized as intangible assets. Otherwise, such payments are expensed. We classify the subsequent amortization of the capitalized acquired intangible assets from our customers as a reduction in sales. Contractually stated prices in arrangements with our customers that include the acquisition of intangible rights within the scope of the Intangibles - Goodwill and Other Topic of the FASB ASC and deliverables within the scope of the Revenue Recognition Topic of the FASB ASC are not presumed to be representative of fair value for determining the amounts to allocate to each element of an arrangement. |
Research and Development Policy [Text Block] | Research and Development. Research and development costs not specifically covered by contracts and those related to the company sponsored share of research and development activity in connection with cost-sharing arrangements are charged to expense as incurred. Government research and development support, not associated with specific contracts, is recorded as a reduction to research and development expense in the period earned. See Note 8 for a discussion of amendments of certain government research and development support arrangements concluded in December 2015 between Pratt & Whitney Canada and the Canadian government. Research and development costs incurred under contracts with customers are included as a contract cost and reported as a component of cost of products sold when revenue from such contracts is recognized. Research and development costs in excess of contractual consideration is expensed as incurred. |
Foreign Currency Transactions And Translations Policy [Text Block] | Foreign Exchange. We conduct business in many different currencies and, accordingly, are subject to the inherent risks associated with foreign exchange rate movements. The financial position and results of operations of substantially all of our foreign subsidiaries are measured using the local currency as the functional currency. Foreign currency denominated assets and liabilities are translated into U.S. Dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries are deferred as a separate component of shareowners' equity. |
Derivatives and Hedging Activity Policy [Text Block] | Derivatives and Hedging Activity. We have used derivative instruments, including swaps, forward contracts and options, to help manage certain foreign currency, interest rate and commodity price exposures. Derivative instruments are viewed as risk management tools by us and are not used for trading or speculative purposes. By their nature, all financial instruments involve market and credit risks. We enter into derivative and other financial instruments with major investment grade financial institutions and have policies to monitor the credit risk of those counterparties. We limit counterparty exposure and concentration of risk by diversifying counterparties. While there can be no assurance, we do not anticipate any material non-performance by any of these counterparties. We enter into transactions that are subject to enforceable master netting arrangements or other similar agreements with various counterparties. However, we have not elected to offset multiple contracts with a single counterparty and, as a result, the fair value of the derivative instruments in a loss position is not offset against the fair value of derivative instruments in a gain position. Derivatives used for hedging purposes may be designated and effective as a hedge of the identified risk exposure at the inception of the contract. All derivative instruments are recorded on the balance sheet at fair value. Derivatives used to hedge foreign-currency-denominated balance sheet items are reported directly in earnings along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate. Gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income and reclassified to earnings as a component of product sales or expenses, as applicable, when the hedged transaction occurs. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period it occurs. As discussed in Note 14, 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. To the extent the hedge accounting criteria are not met, the foreign currency forward contracts are utilized as economic hedges and changes in the fair value of these contracts are recorded currently in earnings in the period in which they occur. Additional information pertaining to foreign currency forward contracts and net investment hedging is included in Note 14. |
Environmental Costs Policy | Environmental . Environmental investigatory, remediation, operating and maintenance costs are accrued when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, including existing technology, current laws and regulations and prior remediation experience. Where no amount within a range of estimates is more likely, the minimum is accrued. For sites with multiple responsible parties, we consider our likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their obligations in establishing a provision for those costs. Liabilities with fixed or reliably determinable future cash payments are discounted. Accrued environmental liabilities are not reduced by potential insurance reimbursements. |
Pension and Postretirement Obligations Policy | Pension and Postretirement Obligations. Guidance under the Compensation - Retirement Benefits Topic of the FASB ASC requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Under this guidance, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit cost. |
Product Performance Obligations [Policy Text Block] | Product Performance Obligations. We extend performance and operating cost guarantees beyond our normal service and warranty policies for extended periods on some of our products, particularly commercial aircraft engines. Liability under such guarantees is based upon future product performance and durability. We accrue for such costs that are probable and can be reasonably estimated. In addition, we incur discretionary costs to service our products in connection with product performance issues. The costs associated with these product performance and operating cost guarantees require estimates over the full terms of the agreements, and require management to consider factors such as the extent of future maintenance requirements and the future cost of material and labor to perform the services. These cost estimates are largely based upon historical experience. See Note 16 for further discussion. |
Collaborative Arrangements Policy | Collaborative Arrangements. In view of the risks and costs associated with developing new engines, Pratt & Whitney has entered into certain collaboration arrangements in which sales, costs and risks are shared. Sales generated from engine programs, spare parts, and aftermarket business under collaboration arrangements are recorded as earned in our financial statements. Amounts attributable to our collaborators for their share of sales are recorded as an expense in our financial statements based upon the terms and nature of the arrangement. Costs associated with engine programs under collaborative arrangements are expensed as incurred. Under these arrangements, collaborators contribute their program share of engine parts, incur their own production costs and make certain payments to Pratt & Whitney for shared or joint program costs. The reimbursement of the collaborators' share of program costs is recorded as a reduction of the related expense item at that time. As of December 31, 2015 , the collaborators' interests in all commercial engine programs ranged from 14% to 50% , inclusive of a portion of Pratt & Whitney's interests held by other participants. Pratt & Whitney is the principal participant in all existing collaborative arrangements. There are no individually significant collaborative arrangements and none of the collaborators exceed a 31% share in an individual program. The following table illustrates the income statement classification and amounts attributable to transactions arising from the collaborative arrangements between participants for each period presented: (dollars in millions) 2015 2014 2013 Collaborator share of sales: Cost of products sold $ 1,547 $ 1,778 $ 1,820 Cost of services sold 652 354 273 Collaborator share of program costs (reimbursement of expenses incurred): Cost of products sold (104 ) (103 ) (127 ) Research and development (248 ) (122 ) (194 ) Selling, general and administrative (5 ) (4 ) (5 ) |
Schedule II - Valuation and Q31
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SEC Schedule Article 12-09 Valuation And Qualifying Accounts [Abstract] | |
Schedule Of Valuation And Qualifying Accounts Disclosure [Table Text Block] | SCHEDULE II UNITED TECHNOLOGIES CORPORATION AND SUBSIDIARIES Valuation and Qualifying Accounts Three years ended December 31, 2015 (Millions of Dollars) Allowances for Doubtful Accounts and Other Customer Financing Activity: Balance December 31, 2012 $ 513 Provision charged to income 74 Doubtful accounts written off (net) (68 ) Other adjustments 19 Balance December 31, 2013 538 Provision charged to income 93 Doubtful accounts written off (net) (91 ) Other adjustments (46 ) Balance December 31, 2014 494 Provision charged to income 137 Doubtful accounts written off (net) (59 ) Other adjustments (19 ) Balance December 31, 2015 $ 553 Future Income Tax Benefits—Valuation allowance: Balance December 31, 2012 $ 904 Additions charged to income tax expense 134 Additions charged to goodwill, due to acquisitions 12 Reductions credited to income tax expense (52 ) Other adjustments (56 ) Balance December 31, 2013 942 Additions charged to income tax expense 91 Reductions credited to income tax expense (55 ) Other adjustments 1 (366 ) Balance December 31, 2014 612 Additions charged to income tax expense 42 Additions charged to goodwill, due to acquisitions 7 Reductions credited to income tax expense (41 ) Other adjustments 1 (29 ) Balance December 31, 2015 $ 591 Note 1: Included in Other adjustments in the table above are adjustments to valuation allowances associated with an agreement with a state taxing authority for the monetization of tax credits. |
Business Acquisitions, Dispos32
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | (dollars in millions) 2015 2014 Current assets $ 1,920 $ 1,820 Noncurrent assets 1,102 756 Total assets $ 3,022 $ 2,576 Current liabilities $ 1,931 $ 1,795 Noncurrent liabilities 1,355 1,227 Total liabilities $ 3,286 $ 3,022 |
Schedule of Goodwill [Table Text Block] | (dollars in millions) Balance as of January 1, 2015 Goodwill resulting from business combinations Foreign currency translation and other Balance as of December 31, 2015 Otis $ 1,664 $ 31 $ (129 ) $ 1,566 UTC Climate, Controls & Security 9,408 397 (347 ) 9,458 Pratt & Whitney 1,481 36 (2 ) 1,515 UTC Aerospace Systems 14,892 49 (182 ) 14,759 Total Segments 27,445 513 (660 ) 27,298 Eliminations and other 3 — — 3 Total $ 27,448 $ 513 $ (660 ) $ 27,301 |
Intangible Assets Disclosure [Table Text Block] | 2015 2014 (dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Service portfolios $ 1,977 $ (1,307 ) $ 2,103 $ (1,309 ) Patents and trademarks 361 (189 ) 336 (177 ) IAE collaboration 3,336 (86 ) 2,872 (20 ) Customer relationships and other 12,430 (2,988 ) 12,135 (2,589 ) 18,104 (4,570 ) 17,446 (4,095 ) Unamortized: Trademarks and other 2,069 — 2,177 — Total $ 20,173 $ (4,570 ) $ 19,623 $ (4,095 ) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (dollars in millions) 2016 2017 2018 2019 2020 Amortization expense $ 692 $ 745 $ 772 $ 769 $ 792 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Statement [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations: (dollars in millions) 2015 2014 2013 Discontinued Operations: Net Sales $ 4,949 $ 7,452 $ 6,564 Cost of Sales 4,152 6,801 5,304 Research and development 150 160 197 Selling, general and administrative 315 328 382 Pension curtailment 110 — — Other income, net (30 ) (12 ) (40 ) Income from operations 252 175 721 Gain (loss) on disposal 6,042 — (33 ) Income tax expense (2,684 ) (20 ) (234 ) Income from discontinued operations $ 3,610 $ 155 $ 454 |
Balance Sheet [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The assets and liabilities held for sale on the Consolidated Balance Sheet as of December 31, 2014 are as follows: (dollars in millions) December 31, 2014 Assets: Cash and cash equivalents $ 6 Accounts receivable, net 869 Inventories and contracts in progress, net 2,223 Other assets, current 45 Fixed assets, net 684 Goodwill 348 Intangible assets, net 32 Other assets 661 Assets held for sale $ 4,868 Liabilities: Short-term borrowings and long-term debt currently due $ 5 Accounts payable 717 Accrued liabilities 1,479 Long-term debt 5 Future pension and postretirement benefit obligations 2 Other long-term liabilities 573 Liabilities held for sale $ 2,781 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | (dollars in millions, except per share amounts; shares in millions) 2015 2014 2013 Net income attributable to common shareowners: Net income from continuing operations $ 3,996 $ 6,066 $ 5,265 Net income from discontinued operations 3,612 154 456 Net income attributable to common shareowners $ 7,608 $ 6,220 $ 5,721 Basic weighted average number of shares outstanding 872.7 898.3 901.0 Stock awards 10.5 13.3 14.1 Diluted weighted average number of shares outstanding 883.2 911.6 915.1 Earnings Per Share of Common Stock—Basic: Net income from continuing operations $ 4.58 $ 6.75 $ 5.84 Net income from discontinued operations 4.14 0.17 0.51 Net income attributable to common shareowners 8.72 6.92 6.35 Earnings Per Share of Common Stock—Diluted: Net income from continuing operations $ 4.53 $ 6.65 $ 5.75 Net income from discontinued operations 4.09 0.17 0.50 Net income attributable to common shareowners 8.61 6.82 6.25 |
Commercial Aerospace Industry35
Commercial Aerospace Industry Assets and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Commitments [Abstract] | |
Commercial Aerospace Industry Assets and Commitments Table [Text Block] | The following is the expected maturity of commercial aerospace industry assets and commitments as of December 31, 2015 : (dollars in millions) Committed 2016 2017 2018 2019 2020 Thereafter Notes and leases receivable $ 566 $ 97 $ 102 $ 26 $ 40 $ 34 $ 267 Commercial aerospace financing commitments $ 2,608 $ 410 $ 405 $ 534 $ 381 $ 178 $ 700 Other commercial aerospace commitments 11,985 821 929 896 743 728 7,868 Collaboration partners' share (4,093 ) (344 ) (381 ) (462 ) (302 ) (193 ) (2,411 ) Total commercial commitments $ 10,500 $ 887 $ 953 $ 968 $ 822 $ 713 $ 6,157 |
Inventories and Contracts in 36
Inventories and Contracts in Progress (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Table [Text Block] | (dollars in millions) 2015 2014 Raw materials $ 2,037 $ 1,948 Work-in-process 2,422 2,093 Finished goods 3,183 2,975 Contracts in progress 8,668 8,189 16,310 15,205 Less: Progress payments, secured by lien, on U.S. Government contracts (239 ) (117 ) Billings on contracts in progress (7,936 ) (7,446 ) $ 8,135 $ 7,642 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets [Text Block] | (dollars in millions) Estimated 2015 2014 Land $ 384 $ 392 Buildings and improvements 12-40 years 5,030 5,098 Machinery, tools and equipment 3-20 years 11,717 11,398 Other, including assets under construction 1,363 1,181 18,494 18,069 Accumulated depreciation (9,762 ) (9,477 ) $ 8,732 $ 8,592 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities Table [Text Block] | (dollars in millions) 2015 2014 Advances on sales contracts and service billings $ 3,952 $ 4,241 Income taxes payable 2,498 305 Accrued salaries, wages and employee benefits 1,543 1,795 Service and warranty accruals 546 504 Litigation and contract matters 482 496 Interest payable 391 503 Accrued restructuring costs 334 253 Accrued property, sales and use taxes 292 280 Canadian government settlement - current portion 241 — Accrued workers compensation 212 215 Other 4,147 3,935 $ 14,638 $ 12,527 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instrument [Line Items] | |
Schedule of Principal Payments on Long-term Debt [Table Text Block] | (dollars in millions) 2016 $ 179 2017 2,551 2018 1,231 2019 1,568 2020 1,476 Thereafter 12,434 Total $ 19,439 |
Short-term Debt [Text Block] | (dollars in millions) 2015 2014 Short-term borrowings: Commercial paper $ 727 $ — Other borrowings 199 126 Total short-term borrowings $ 926 $ 126 |
Long-term Debt [Text Block] | (dollars in millions) 2015 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 2 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 2 171 171 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) 3 817 — 7.100% notes due 2027 2 141 141 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 2 134 134 7.000% notes due 2038 2 159 159 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 4 850 — Project financing obligations 191 147 Other (including capitalized leases) 2 306 368 Total principal long-term debt 19,439 19,490 Other (fair market value adjustments, discounts and debt issuance costs) 2 60 85 Total long-term debt 19,499 19,575 Less: current portion 179 1,791 Long-term debt, net of current portion $ 19,320 $ 17,784 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 Includes notes and remaining fair market value adjustments that were assumed as a part of the Goodrich acquisition on July 26, 2012. 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 will be 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 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, these 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 will be 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 25 basis points. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | A summary of the changes in each component of accumulated other comprehensive (loss) income, net of tax for the years ended December 31, 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 Balance at December 31, 2013 $ 170 $ (3,267 ) $ 296 $ (79 ) $ (2,880 ) Other comprehensive (loss) income before reclassifications, net (1,228 ) (2,708 ) 28 (205 ) (4,113 ) Amounts reclassified, pre-tax 7 416 (20 ) 96 499 Tax (benefit) expense reclassified — (150 ) 4 (21 ) (167 ) Balance at December 31, 2014 $ (1,051 ) $ (5,709 ) $ 308 $ (209 ) $ (6,661 ) Other comprehensive (loss) income before reclassifications, net (1,429 ) 32 16 (298 ) (1,679 ) Amounts reclassified, pre-tax 42 867 (54 ) 234 1,089 Tax (benefit) expense reclassified — (325 ) 23 (66 ) (368 ) Balance at December 31, 2015 $ (2,438 ) $ (5,135 ) $ 293 $ (339 ) $ (7,619 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
Schedule of Income before Income Tax Domestic and Foreign [Table Text Block] | The sources of income from continuing operations before income taxes are: (dollars in millions) 2015 2014 2013 United States $ 2,782 $ 4,165 $ 3,065 Foreign 3,685 4,547 4,589 $ 6,467 $ 8,712 $ 7,654 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax expense (benefit) for the years ended December 31, 2015, 2014 and 2013 consisted of the following components: (dollars in millions) 2015 2014 2013 Current: United States: Federal $ 328 $ 319 $ 390 State (37 ) 38 18 Foreign 1,158 1,484 1,323 1,449 1,841 1,731 Future: United States: Federal 712 421 292 State 109 (23 ) 44 Foreign (159 ) 5 (68 ) 662 403 268 Income tax expense $ 2,111 $ 2,244 $ 1,999 Attributable to items credited (charged) to equity and goodwill $ (114 ) $ 1,535 $ (1,661 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows: 2015 2014 2013 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % Tax on international activities (2.0 )% (3.3 )% (6.2 )% Tax audit settlements — % (4.3 )% (0.5 )% Other (0.4 )% (1.6 )% (2.2 )% Effective income tax rate 32.6 % 25.8 % 26.1 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of net temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2015 and 2014 are as follows: (dollars in millions) 2015 2014 Future income tax benefits: Insurance and employee benefits $ 2,650 $ 3,033 Other asset basis differences 1,199 369 Other liability basis differences 1,543 1,039 Tax loss carryforwards 528 660 Tax credit carryforwards 872 963 Valuation allowances (591 ) (612 ) $ 6,201 $ 5,452 Future income taxes payable: Other asset basis differences $ 5,324 $ 4,584 Other items, net 531 (124 ) $ 5,855 $ 4,460 |
Summary Of Tax Credit Carryforwards [Table Text Block] | At December 31, 2015 , tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows: (dollars in millions) Tax Credit Carryforwards Tax Loss Carryforwards Expiration period: 2016-2020 $ 3 $ 274 2021-2025 4 127 2026-2035 196 573 Indefinite 668 1,927 Total $ 871 $ 2,901 |
Summary Of Operating Loss Carryforwards [Table Text Block] | At December 31, 2015 , tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows: (dollars in millions) Tax Credit Carryforwards Tax Loss Carryforwards Expiration period: 2016-2020 $ 3 $ 274 2021-2025 4 127 2026-2035 196 573 Indefinite 668 1,927 Total $ 871 $ 2,901 |
Summary Of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013 is as follows: (dollars in millions) 2015 2014 2013 Balance at January 1 $ 1,089 $ 1,223 $ 1,073 Additions for tax positions related to the current year 206 164 113 Additions for tax positions of prior years 99 435 211 Reductions for tax positions of prior years (101 ) (47 ) (41 ) Settlements (124 ) (686 ) (133 ) Balance at December 31 $ 1,169 $ 1,089 $ 1,223 Gross interest expense related to unrecognized tax benefits $ 39 $ 180 $ 51 Total accrued interest balance at December 31 $ 176 $ 292 $ 262 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefits and Share-based Compensation [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | We measure the cost of all share-based payments, including stock options, at fair value on the grant date and recognize this cost in the Consolidated Statement of Operations as follows: (dollars in millions) 2015 2014 2013 Continuing operations $ 158 $ 219 $ 250 Discontinued operations 17 21 25 Total compensation cost recognized $ 175 $ 240 $ 275 Stock Options Stock Appreciation Rights Performance Share Units Other Incentive Shares/Units (shares and units in thousands) Shares Average Price* Shares Average Price* Units Average Price** Outstanding at: December 31, 2014 2,288 $ 73.76 38,404 $ 77.48 2,532 $ 87.65 1,495 Granted 312 110.78 5,411 111.15 693 115.08 574 Exercised/earned (648 ) 56.10 (4,975 ) 64.56 (884 ) 74.71 (487 ) Cancelled (73 ) 68.69 (729 ) 96.67 (171 ) 86.60 (115 ) December 31, 2015 1,879 $ 86.19 38,111 $ 83.58 2,170 $ 101.78 1,467 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | (dollars in millions) Current year actuarial loss $ 283 Amortization of actuarial loss (882 ) Current year prior service cost 39 Amortization of prior service credit 11 Net settlement and curtailment loss (145 ) Other (180 ) Total recognized in other comprehensive loss $ (874 ) Net recognized in net periodic pension cost and other comprehensive loss $ (225 ) |
Schedule of Defined Benefit Plans Disclosures [Text Block] | (dollars in millions) Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling Total Asset Category: Public Equities Global Equities $ 5,884 $ — $ — $ — $ 5,884 Global Equity Commingled Funds 1 — 779 — — 779 Enhanced Global Equities 2 237 616 — — 853 Global Equities Funds at net asset value 8 — — — 6,475 6,475 Private Equities 3,8 — — 182 1,335 1,517 Fixed Income Securities Governments 365 53 — — 418 Corporate Bonds — 7,013 — — 7,013 Fixed Income Securities 8 — — — 2,992 2,992 Real Estate 4,8 — 10 1,165 1,079 2,254 Other 5,8 — 334 — 1,706 2,040 Cash & Cash Equivalents 6,8 — 159 — 334 493 Subtotal $ 6,486 $ 8,964 $ 1,347 $ 13,921 30,718 Other Assets & Liabilities 7 293 Total at December 31, 2015 $ 31,011 Public Equities Global Equities $ 5,964 $ 2 $ — $ — $ 5,966 Global Equity Commingled Funds 1 — 1,055 — — 1,055 Enhanced Global Equities 2 292 1,192 — — 1,484 Global Equities Funds at net asset value 8 — — — 6,505 6,505 Private Equities 3,8 — — 145 1,255 1,400 Fixed Income Securities Governments 419 52 — — 471 Corporate Bonds 4 7,132 — — 7,136 Fixed Income Securities 8 — — — 3,661 3,661 Real Estate 4,8 — 12 975 938 1,925 Other 5,8 — 349 — 1,896 2,245 Cash & Cash Equivalents 6,8 200 131 — 116 447 Subtotal $ 6,879 $ 9,925 $ 1,120 $ 14,371 32,295 Other Assets & Liabilities 7 443 Total at December 31, 2014 $ 32,738 Benefit Obligation Net Cost 2015 2014 2015 2014 2013 Discount rate 4.1 % 3.8 % 3.8 % 4.7 % 4.0 % Salary scale 4.2 % 4.2 % 4.2 % 4.2 % 4.2 % Expected return on plan assets — — 7.6 % 7.6 % 7.7 % (dollars in millions) 2015 2014 Projected benefit obligation $ 30,915 $ 34,261 Accumulated benefit obligation 30,362 33,495 Fair value of plan assets 25,827 28,478 (dollars in millions) 2015 2014 Change in Benefit Obligation: Beginning balance $ 952 $ 987 Service cost 3 3 Interest cost 34 41 Actuarial loss — 7 Total benefits paid (104 ) (107 ) Other 5 21 Ending balance $ 890 $ 952 Change in Plan Assets: Beginning balance $ — $ — Employer contributions 84 85 Benefits paid from plan assets (104 ) (107 ) Other 20 22 Ending balance $ — $ — Funded Status: Fair value of plan assets $ — $ — Benefit obligations (890 ) (952 ) Funded status of plan $ (890 ) $ (952 ) Amounts Recognized in the Consolidated Balance Sheet Consist of: Current liability $ (84 ) $ (89 ) Noncurrent liability (806 ) (863 ) Net amount recognized $ (890 ) $ (952 ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial gain $ (109 ) $ (113 ) Prior service (credit) cost (1 ) 1 Net amount recognized $ (110 ) $ (112 ) (dollars in millions) Net actuarial loss $ 540 Prior service credit (32 ) $ 508 (dollars in millions) 2015 2014 2013 Pension Benefits: Service cost $ 493 $ 487 $ 569 Interest cost 1,399 1,517 1,373 Expected return on plan assets (2,264 ) (2,215 ) (2,107 ) Amortization of prior service credit (11 ) (8 ) (34 ) Recognized actuarial net loss 882 429 954 Net settlement and curtailment loss 150 13 1 Net periodic pension cost - employer $ 649 $ 223 $ 756 2015 One-Percentage-Point (dollars in millions) Increase Decrease Effect on total service and interest cost $ 2 $ (2 ) Effect on postretirement benefit obligation 57 (48 ) (dollars in millions) 2015 2014 2013 Other Postretirement Benefits: Service cost $ 3 $ 3 $ 3 Interest cost 34 41 38 Amortization of prior service credit — (1 ) (10 ) Recognized actuarial net gain (4 ) (4 ) (4 ) Net settlement and curtailment gain (1 ) — — Net periodic other postretirement benefit cost $ 32 $ 39 $ 27 Benefit Obligation Net Cost 2015 2014 2015 2014 2013 Discount rate 4.0 % 3.8 % 3.8 % 4.4 % 3.6 % (dollars in millions) Current year actuarial loss $ 1 Current year prior service credit (2 ) Amortization of actuarial net gain 4 Other (1 ) Total recognized in other comprehensive loss $ 2 Net recognized in net periodic other postretirement benefit cost and other comprehensive loss $ 34 2015 2014 Health care cost trend rate assumed for next year 6.5 % 7.0 % Rate that the cost trend rate gradually declines to 5.0 % 5.0 % Year that the rate reaches the rate it is assumed to remain at 2022 2019 (dollars in millions) 2015 2014 Change in Benefit Obligation: Beginning balance $ 37,853 $ 33,026 Service cost 493 487 Interest cost 1,399 1,517 Actuarial (gain) loss (1,716 ) 5,277 Total benefits paid (1,796 ) (1,939 ) Net settlement and curtailment gain (55 ) (1 ) Plan amendments 39 5 Other (789 ) (519 ) Ending balance $ 35,428 $ 37,853 Change in Plan Assets: Beginning balance $ 32,738 $ 31,355 Actual return on plan assets 265 3,140 Employer contributions 520 615 Benefits paid from plan assets (1,796 ) (1,939 ) Settlements (59 ) — Other (657 ) (433 ) Ending balance $ 31,011 $ 32,738 Funded Status: Fair value of plan assets $ 31,011 $ 32,738 Benefit obligations (35,428 ) (37,853 ) Funded status of plan $ (4,417 ) $ (5,115 ) Amounts Recognized in the Consolidated Balance Sheet Consist of: Noncurrent assets $ 742 $ 681 Current liability (71 ) (104 ) Noncurrent liability (5,088 ) (5,692 ) Net amount recognized $ (4,417 ) $ (5,115 ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial loss $ 8,224 $ 9,068 Prior service credit (57 ) (27 ) Net amount recognized $ 8,167 $ 9,041 (dollars in millions) Private Equities Real Estate Total Balance, December 31, 2013 $ 90 $ 1,045 $ 1,135 Unrealized gains relating to instruments still held in the reporting period 1 66 67 Purchases, sales, and settlements, net 54 (136 ) (82 ) Balance, December 31, 2014 145 975 1,120 Realized gains (losses) 3 (4 ) (1 ) Unrealized gains relating to instruments still held in the reporting period 42 105 147 Purchases, sales, and settlements, net (8 ) 89 81 Balance, December 31, 2015 $ 182 $ 1,165 $ 1,347 |
Disclosure Of Share Based Compensation Arrangements By Share Based Payment Award Text Block | Equity Awards Vested and Expected to Vest Equity Awards That Are Exercisable (shares in thousands; aggregate intrinsic value in millions) Awards Average Price* Aggregate Intrinsic Value Remaining Term** Awards Average Price* Aggregate Intrinsic Value Remaining Term** Stock Options/Stock Appreciation Rights 39,894 $ 82.95 $ 675 5.4 years 25,887 $ 72.74 $ 621 4.1 years Performance Share Units/Restricted Stock 2,128 — 204 1.7 years 2015 2014 2013 Expected volatility 20% - 23% 22% - 26% 26% - 27% Weighted-average volatility 21 % 26 % 27 % Expected term (in years) 6.0 - 6.8 7.6 - 8.0 7.3 - 7.6 Expected dividends 2.2 % 2.2 % 2.6 % Risk-free rate 0.0% - 2.2% 0.0% - 3.1% 0.1% - 1.9% |
Schedule Of Multiemployer Plans Table [Text Block] | (dollars in millions) Pension Protection Act Zone Status FIP/ RP Status Contributions Pension Fund EIN/Pension Plan Number 2015 2014 Pending/ Implemented 2015 2014 2013 Surcharge Imposed Expiration Date of Collective-Bargaining Agreement National Elevator Industry Pension Plan 23-2694291 Green Green No $ 88 $ 79 $ 71 No July 8, 2017 Other funds 32 34 34 $ 120 $ 113 $ 105 |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs [Table Text Block] | The following table summarizes expected, incurred and remaining costs for the 2014 programs by segment: (dollars in millions) Expected Costs Costs Incurred During 2014 Costs Incurred During 2015 Remaining Costs at December 31, 2015 Otis $ 121 $ (98 ) $ (16 ) $ 7 UTC Climate, Controls & Security 123 (86 ) (31 ) 6 Pratt & Whitney 117 (64 ) (24 ) 29 UTC Aerospace Systems 80 (72 ) (2 ) 6 Eliminations and other 5 (5 ) — — Total $ 446 $ (325 ) $ (73 ) $ 48 We recorded charges in the segments as follows: (dollars in millions) Otis $ 51 UTC Climate, Controls & Security 108 Pratt & Whitney 105 UTC Aerospace Systems 111 Eliminations and other 21 Restructuring costs recorded within continuing operations 396 Restructuring costs recorded within discontinued operations 139 Total $ 535 The following table summarizes expected, incurred and remaining costs for the 2015 restructuring actions by segment: (dollars in millions) Expected Costs Cost Incurred During 2015 Remaining Costs at December 31, 2015 Otis $ 51 $ (35 ) $ 16 UTC Climate, Controls & Security 207 (83 ) 124 Pratt & Whitney 83 (82 ) 1 UTC Aerospace Systems 181 (105 ) 76 Eliminations and other 21 (21 ) — Total $ 543 $ (326 ) $ 217 Restructuring charges incurred in 2015 primarily relate to actions initiated during 2015 and 2014 , and were recorded as follows: (dollars in millions) Cost of sales $ 185 Selling, general and administrative 211 Restructuring costs recorded within continuing operations 396 Restructuring costs recorded within discontinued operations 139 Total $ 535 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the accrual balances and utilization by cost type for the 2014 restructuring actions: (dollars in millions) Severance Facility Exit, Lease Termination and Other Costs Total Restructuring accruals at January 1, 2015 $ 156 $ 9 $ 165 Net pre-tax restructuring costs 52 21 73 Utilization and foreign exchange (116 ) (28 ) (144 ) Balance at December 31, 2015 $ 92 $ 2 $ 94 The following table summarizes the accrual balances and utilization by cost type for the 2015 restructuring actions: (dollars in millions) Severance Facility Exit, Lease Termination & Other Costs Total Net pre-tax restructuring costs $ 289 $ 37 $ 326 Utilization and foreign exchange (106 ) (14 ) (120 ) Balance at December 31, 2015 $ 183 $ 23 $ 206 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the fair value of derivative instruments as of December 31, 2015 and 2014 which consist solely of foreign exchange contracts: Asset Derivatives Liability Derivatives (dollars in millions) 2015 2014 2015 2014 Derivatives designated as hedging instruments $ 4 $ 3 $ 428 $ 248 Derivatives not designated as hedging instruments 97 139 105 71 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | The impact from foreign exchange derivative instruments that qualified as cash flow hedges was as follows: Year Ended December 31, (dollars in millions) 2015 2014 Loss recorded in Accumulated other comprehensive loss $ (415 ) $ (263 ) Loss reclassified from Accumulated other comprehensive loss into Product sales (effective portion) $ 234 $ 96 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Text Block] | The following table provides the assets and liabilities carried at fair value measured on a recurring and non-recurring basis as of December 31, 2015 and 2014 : 2015 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 951 $ 951 $ — $ — Derivative assets 101 — 101 — Derivative liabilities (533 ) — (533 ) — 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 ) — Non-recurring fair value measurements: Business dispositions 3 — 3 — |
Fair Value, Measurement Inputs, Disclosure [Text Block] | The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value at December 31, 2015 and 2014 : December 31, 2015 December 31, 2014 (dollars in millions) Carrying Fair Carrying Fair Long-term receivables $ 224 $ 209 $ 214 $ 204 Customer financing notes receivable 403 403 262 260 Short-term borrowings (926 ) (926 ) (126 ) (126 ) Long-term debt (excluding capitalized leases) (19,476 ) (21,198 ) (19,623 ) (22,244 ) Long-term liabilities (458 ) (419 ) (80 ) (74 ) The following table provides the valuation hierarchy classification of assets and liabilities that are not carried at fair value in our Consolidated Balance Sheet as of December 31, 2015 : (dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 209 $ — $ 209 $ — Customer financing notes receivable 403 — 403 — Short-term borrowings (926 ) — (727 ) (199 ) Long-term debt (excluding capitalized leases) (21,198 ) — (20,845 ) (353 ) Long-term liabilities (419 ) — (419 ) — |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations [Table Text Block] | As of December 31, 2015 and 2014 , the following financial guarantees were outstanding: December 31, 2015 December 31, 2014 (dollars in millions) Maximum Carrying Maximum Carrying Commercial aerospace financing arrangements (see Note 5) $ 365 $ 12 $ 411 $ 18 Credit facilities and debt obligations (expire 2016 to 2028) 241 — 211 15 Performance guarantees 55 3 136 — |
Product Warranty Disclosure [Table Text Block] | The changes in the carrying amount of service and product warranties and product performance guarantees for the years ended December 31, 2015 and 2014 are as follows: (dollars in millions) 2015 2014 Balance as of January 1 $ 1,264 $ 1,324 Warranties and performance guarantees issued 291 302 Settlements made (259 ) (322 ) Other (84 ) (40 ) Balance as of December 31 $ 1,212 $ 1,264 |
Segment Financial Data (Tables)
Segment Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment [Table Text Block] | Total Assets Capital Expenditures Depreciation & Amortization (dollars in millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Otis $ 8,846 $ 9,313 $ 9,354 $ 83 $ 87 $ 122 $ 176 $ 209 $ 209 UTC Climate, Controls & Security 21,287 21,217 21,543 261 228 266 337 349 380 Pratt & Whitney 20,336 18,143 17,062 692 692 617 476 390 319 UTC Aerospace Systems 34,736 35,034 35,461 537 533 510 796 807 761 Total segment 85,205 83,707 83,420 1,573 1,540 1,515 1,785 1,755 1,669 Eliminations and other 2,279 2,631 1,609 79 54 54 78 65 66 Consolidated $ 87,484 $ 86,338 $ 85,029 $ 1,652 $ 1,594 $ 1,569 $ 1,863 $ 1,820 $ 1,735 Net Sales Operating Profits (dollars in millions) 2015 2014 2013 2015 2014 2013 Otis $ 11,980 $ 12,982 $ 12,484 $ 2,338 $ 2,640 $ 2,590 UTC Climate, Controls & Security 16,707 16,823 16,809 2,936 2,782 2,590 Pratt & Whitney 14,082 14,508 14,501 861 2,000 1,876 UTC Aerospace Systems 14,094 14,215 13,347 1,888 2,355 2,018 Total segment 56,863 58,528 57,141 8,023 9,777 9,074 Eliminations and other (765 ) (628 ) (541 ) (268 ) 304 (44 ) General corporate expenses — — — (464 ) (488 ) (481 ) Consolidated $ 56,098 $ 57,900 $ 56,600 $ 7,291 $ 9,593 $ 8,549 |
Schedule of Revenues From External Customers And Long Lived Assets By Geographic Areas [Table Text Block] | External Net Sales Operating Profits Long-Lived Assets (dollars in millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 United States Operations $ 30,989 $ 30,814 $ 29,901 $ 4,391 $ 5,067 $ 4,272 $ 4,517 $ 4,211 $ 3,918 International Operations Europe 10,945 12,587 12,589 1,882 2,238 2,333 1,525 1,577 1,715 Asia Pacific 8,425 8,746 8,626 1,641 1,712 1,770 994 995 939 Other 5,584 5,511 5,269 109 760 699 1,273 1,379 1,199 Eliminations and other 155 242 215 (732 ) (184 ) (525 ) 423 430 427 Consolidated $ 56,098 $ 57,900 $ 56,600 $ 7,291 $ 9,593 $ 8,549 $ 8,732 $ 8,592 $ 8,198 |
Schedule Of Revenue By Major Customers By Reporting Segments [Table Text Block] | (dollars in millions) 2015 2014 2013 Pratt & Whitney $ 2,945 $ 3,126 $ 3,559 UTC Aerospace Systems 2,409 2,459 2,530 Other 276 294 253 $ 5,630 $ 5,879 $ 6,342 |
Revenue from External Customers by Geographic Areas [Table Text Block] | (dollars in millions) 2015 2014 2013 Europe $ 4,366 $ 4,137 $ 3,931 Asia Pacific 2,902 3,469 3,963 Other 2,473 2,670 2,565 $ 9,741 $ 10,276 $ 10,459 |
Selected Quarterly Financial 48
Selected Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule Of Quarterly Financial Information [Table Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) 2015 Quarters 2014 Quarters (dollars in millions, except per share amounts) First Second Third Fourth First Second Third Fourth Net Sales $ 13,320 $ 14,690 $ 13,788 $ 14,300 $ 13,439 $ 14,868 $ 14,613 $ 14,980 Gross margin 3,814 4,218 3,988 3,647 3,857 4,448 4,448 4,249 Net income attributable to common shareowners 1,426 1,542 1,362 3,278 1,213 1,680 1,854 1,473 Earnings per share of Common Stock: Basic—net income $ 1.60 $ 1.76 $ 1.55 $ 3.86 $ 1.35 $ 1.87 $ 2.07 $ 1.64 Diluted—net income $ 1.58 $ 1.73 $ 1.54 $ 3.86 $ 1.32 $ 1.84 $ 2.04 $ 1.62 COMPARATIVE STOCK DATA (UNAUDITED) 2015 2014 (common stock) High Low Dividend High Low Dividend First quarter $ 124.11 $ 111.52 $ 0.64 $ 118.31 $ 107.91 $ 0.59 Second quarter $ 119.14 $ 110.93 $ 0.64 $ 120.09 $ 113.10 $ 0.59 Third quarter $ 111.58 $ 86.82 $ 0.64 $ 115.93 $ 103.79 $ 0.59 Fourth quarter $ 100.80 $ 88.36 $ 0.64 $ 117.24 $ 99.17 $ 0.59 |
Performance Graph - Unaudited (
Performance Graph - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Performance Graph [Abstract] | |
Cumulative Total Shareholder Return [Table Text Block] | COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN December 2010 2011 2012 2013 2014 2015 United Technologies Corporation $ 100.00 $ 95.03 $ 109.38 $ 155.18 $ 160.13 $ 137.06 S&P 500 Index $ 100.00 $ 102.11 $ 118.45 $ 156.82 $ 178.29 $ 180.75 Dow Jones Industrial Average $ 100.00 $ 108.38 $ 119.48 $ 154.91 $ 170.46 $ 170.83 |
Schedule II - Valuation and Q50
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Allowance For Doubtful Accounts And Other Customer Financing Activity [Member] | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Beginning Balance | $ 494 | $ 538 | $ 513 | |
Provision charged to income | 137 | 93 | 74 | |
Doubtful accounts written off (net) | (59) | (91) | (68) | |
Other adjustments | (19) | (46) | 19 | |
Ending Balance | 553 | 494 | 538 | |
Future Income Tax Benefits - Valuation Allowance | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Beginning Balance | 612 | 942 | 904 | |
Other adjustments | (29) | [1] | (366) | (56) |
Additions charged to income tax expense | 42 | 91 | 134 | |
Additions charged to goodwill, due to acquisitions | 7 | 12 | ||
Reductions credited to income tax expense | (41) | (55) | (52) | |
Ending Balance | $ 591 | $ 612 | $ 942 | |
[1] | Note 1: Included in Other adjustments in the table above are adjustments to valuation allowances associated with an agreement with a state taxing authority for the monetization of tax credits. |
Summary of Accounting Princip51
Summary of Accounting Principles (Details) € in Millions, $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) |
Accounting Policies [Abstract] | |||
Restricted Cash And Cash Equivalents | $ 45 | $ 255 | |
Unbilled Contracts Receivable | 2,318 | 1,863 | |
Contract Receivable Retainage | 141 | 147 | |
Excess Of Replacement Or Current Costs Over Stated LIFO Value | 127 | 130 | |
Debt Instrument, Face Amount | € | € 750 | ||
Commercial Aerospace [Member] | |||
Accounting Policies [Abstract] | |||
Unbilled Contracts Receivable | $ 1,091 | $ 819 |
Summary of Accounting Princip52
Summary of Accounting Principles (Long-Term Receivables) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, net | $ 1,372 | $ 1,032 |
Percentage Long Term Receivables High Credit Risk | 13.00% | 9.00% |
Financing Receivable, Reserve for Credit Losses and Exposure, Individually Evaluated For Impairment | $ 18 | $ 10 |
Long-term Trade Accounts Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, net | 903 | 651 |
Notes and Leases Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, net | $ 469 | $ 381 |
Summary of Accounting Princip53
Summary of Accounting Principles (Indefinite Lived Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Collaboration Asset [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 30 years |
Customer Relationships and Related Programs [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Customer Relationships and Related Programs [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 40 years |
Purchased Service Contracts [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Purchased Service Contracts [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 25 years |
Patents & trademarks [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 4 years |
Patents & trademarks [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 40 years |
Exclusivity Assets [Member] | Minimum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Exclusivity Assets [Member] | Maximum [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 25 years |
Summary of Accounting Princip54
Summary of Accounting Principles (Collaborative Arrangements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborators interests existing programs low end | 14.00% | ||
Collaborators interests existing programs high end | 50.00% | ||
Partner share individual program maximum | 31.00% | ||
Cost of Goods Sold [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborator Share Of Revenues Amount | $ 1,547 | $ 1,778 | $ 1,820 |
Collaborator Share Of Program Costs Amount | 104 | 103 | 127 |
Cost of Services [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborator Share Of Revenues Amount | 652 | 354 | 273 |
Research and Development Expense [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborator Share Of Program Costs Amount | 248 | 122 | 194 |
Selling General and Administrative [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborator Share Of Program Costs Amount | $ 5 | $ 4 | $ 5 |
Summary of Accounting Princip55
Summary of Accounting Principles (Income Taxes) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
ASU 2015 - 17 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes. This ASU eliminates the requirement to present deferred tax assets and liabilities as current and noncurrent on the balance sheet. Instead, all deferred tax assets and liabilities are now classified as noncurrent. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. We have elected to prospectively adopt ASU 2015-17 as of December 31, 2015. See Note 11 for further information. |
Summary of Accounting Princip56
Summary of Accounting Principles (Revenue Recognition) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase Decrease Operating Profit Due to Contract Reestimates | $ 115 | |
ASU 2014-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | New Revenue Recognition Standard: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. On August 12, 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year. The new standard is effective for reporting periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective adoption reflecting the application of the standard in each prior reporting period, or (ii) a modified retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized through retained earnings at the date of adoption. Early adoption is permitted for reporting periods beginning after December 15, 2016. We are in the process of evaluating the potential revenue implications of the standard change, which may result in changes to our revenue recognition practices; the elimination of the units-of-delivery method for certain U.S. Government programs; and the elimination of the completed contract method of accounting |
Summary of Accounting Princip57
Summary of Accounting Principles (Pension and Postretirement Obligations) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
ASU 2015-07 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent). This ASU eliminates the requirement to categorize investments within the fair value hierarchy if their fair value is measured using the net asset value (NAV) per share practical expedient. The update is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. We elected to adopt the standard for fiscal year 2015. The adoption of this standard did not have a material effect on the consolidated financial statements. |
Business Acquisitions, Dispos58
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||
Acquisition Cost Of Acquired Entities and Interest in Affiliates | $ 556 | $ 530 | $ 151 |
Noncash Or Part Noncash Acquisition Debt Assumed | 18 | 128 | |
Gain (Loss) on Disposition of Business | 23 | ||
PrattAndWhitneyPowerSystems [Member] | |||
Business Acquisition [Line Items] | |||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 193 | ||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 132 | ||
Group Ascensores Enor SA [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | 240 | ||
UTC Climate, Controls and Security [Member] | |||
Business Acquisition [Line Items] | |||
Gain (Loss) on Disposition of Business | 30 | 55 | |
Goodrich Corporation [Member] | |||
Contractual Obligation, Fiscal Year Maturity [Abstract] | |||
Contractual Obligation | $ 2,200 | ||
Contractual Obligation, Consumed in Current Year | 193 | $ 249 | |
Contractual Obligation, Due in Next Twelve Months | 252 | ||
Contractual Obligation, Due in Second Year | 259 | ||
Contractual Obligation, Due in Third Year | 250 | ||
Contractual Obligation, Due in Fourth Year | 219 | ||
Contractual Obligation, Due in Fifth Year | 84 | ||
Contractual Obligation, Due after Fifth Year | $ 351 |
Business Acquisitions, Dispos59
Business Acquisitions, Dispositions, Goodwill and Intangible Assets(Variable Interest Entity) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Variable Interest Entity [Line Items] | ||
Current Assets | $ 1,920 | $ 1,820 |
Noncurrent Assets | 1,102 | 756 |
Total Assets | 3,022 | 2,576 |
Current Liabilities | 1,931 | 1,795 |
Noncurrent Liabilities | 1,355 | 1,227 |
Total Liabilities | $ 3,286 | $ 3,022 |
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% |
Business Acquisitions, Dispos60
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Goodwill | $ 27,301 | $ 27,448 |
Goodwill resulting from business combinations | 513 | |
Goodwill, foreign currency translation and other | (660) | |
Otis [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,566 | 1,664 |
Goodwill resulting from business combinations | 31 | |
Goodwill, foreign currency translation and other | (129) | |
UTC Climate, Controls and Security [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 9,458 | 9,408 |
Goodwill resulting from business combinations | 397 | |
Goodwill, foreign currency translation and other | (347) | |
Pratt and Whitney [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,515 | 1,481 |
Goodwill resulting from business combinations | 36 | |
Goodwill, foreign currency translation and other | (2) | |
UTC Aerospace Systems [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 14,759 | 14,892 |
Goodwill resulting from business combinations | 49 | |
Goodwill, foreign currency translation and other | (182) | |
Eliminations and other [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 3 | 3 |
Goodwill resulting from business combinations | 0 | |
Goodwill, foreign currency translation and other | 0 | |
Total Segments [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 27,298 | $ 27,445 |
Goodwill resulting from business combinations | 513 | |
Goodwill, foreign currency translation and other | $ (660) |
Business Acquisitions, Dispos61
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Trademarks and other | $ 2,069 | $ 2,177 |
Total | 20,173 | 19,623 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 18,104 | 17,446 |
Accumulated Amortization | 4,570 | 4,095 |
Service Portfolios [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 1,977 | 2,103 |
Accumulated Amortization | 1,307 | 1,309 |
Patents and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 361 | 336 |
Accumulated Amortization | 189 | 177 |
IAE Collaboration [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,336 | 2,872 |
Accumulated Amortization | 86 | 20 |
Customer Relationships and Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 12,430 | 12,135 |
Accumulated Amortization | $ 2,988 | $ 2,589 |
Business Acquisitions, Dispos62
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Amortization Expense, Year 1 | $ 692 | ||
Amortization Expense, Year 2 | 745 | ||
Amortization Expense, Year 3 | 772 | ||
Amortization Expense, Year 4 | 769 | ||
Amortization Expense, Year 5 | 792 | ||
Amortization of Intangible Assets | $ 722 | $ 713 | $ 705 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net income from discontinued operations | $ 3,610 | $ 155 | $ 454 |
Net Cash Used in Discontinued Operations | $ 8,619 | 217 | (236) |
Sikorsky [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Date | Nov. 6, 2015 | ||
Proceeds from Divestiture of Businesses | $ 9,083 | ||
Net sales to Sikorsky | 138 | 235 | 206 |
Purchases from Sikorsky, cost of products and services sold | $ 25 | $ 17 | $ 21 |
Pratt and Whitney Rocketdyne [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Date | Jun. 14, 2013 | ||
UTC Power [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Date | Feb. 12, 2013 | ||
Rocketdyne, UTC Power and Hamilton Industrials [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net income from discontinued operations | $ 35 | ||
Rocketdyne and Hamilton Industrials [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net Cash Used in Discontinued Operations | $ (277) |
Discontinued Operations (Income
Discontinued Operations (Income Statement Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Net Sales | $ 4,949 | $ 7,452 | $ 6,564 |
Costs of Sales | 4,152 | 6,801 | 5,304 |
Research and development | 150 | 160 | 197 |
Selling, general and administrative | 315 | 328 | 382 |
Pension curtailment | 110 | 0 | 0 |
Other income, net | 30 | 12 | 40 |
Income from operations | 252 | 175 | 721 |
Gain (loss) on disposal | (6,042) | 0 | 33 |
Income Tax Expense | 2,684 | 20 | 234 |
Income from discontinued operations | $ 3,610 | $ 155 | $ 454 |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations (Balance Sheet Information) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||
Cash and cash equivalents | $ 0 | $ 6 | $ 12 |
Accounts receivable, net | 869 | ||
Inventory and contracts in progress, net | 2,223 | ||
Other assets, current | 45 | ||
Fixed Assets, net | 684 | ||
Goodwill | 348 | ||
Intangible assets, net | 32 | ||
Other assets | 661 | ||
Assets held for sale | 0 | 4,868 | |
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||
Short-term borrowings and long-term debt currently due | 5 | ||
Accounts payable | 717 | ||
Accrued liabilities | 1,479 | ||
Long-term Debt | 5 | ||
Future pension and postretirement benefit obligations | 2 | ||
Other long-term liabilities | 573 | ||
Liabilities held for sale | $ 0 | $ 2,781 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Antidilutive securities excluded from computation of earnings per share amount | 9,700,000 | 3,500,000 | 0 | ||||||||
Net Income (Loss) Attributable to Common Shareowners | |||||||||||
Net income from continuing operations | $ 3,996 | $ 6,066 | $ 5,265 | ||||||||
Net income from discontinued operations | 3,612 | 154 | 456 | ||||||||
Net income attributable to common shareowners | $ 3,278 | $ 1,362 | $ 1,542 | $ 1,426 | $ 1,473 | $ 1,854 | $ 1,680 | $ 1,213 | $ 7,608 | $ 6,220 | $ 5,721 |
Basic weighted average number of shares outstanding | 872,700,000 | 898,300,000 | 901,000,000 | ||||||||
Stock Awards | 10,500,000 | 13,300,000 | 14,100,000 | ||||||||
Diluted weighted average number of shares outstanding | 883,200,000 | 911,600,000 | 915,100,000 | ||||||||
Earnings Per Share of Common Stock - Basic | |||||||||||
Net income from continuing operations | $ 4.58 | $ 6.75 | $ 5.84 | ||||||||
Net income from discontinued operations | 4.14 | 0.17 | 0.51 | ||||||||
Net income attributable to common shareowners | $ 3.86 | $ 1.55 | $ 1.76 | $ 1.60 | $ 1.64 | $ 2.07 | $ 1.87 | $ 1.35 | 8.72 | 6.92 | 6.35 |
Earnings Per Share of Common Stock - Diluted | |||||||||||
Net income from continuing operations | 4.53 | 6.65 | 5.75 | ||||||||
Net income from discontinued operations | 4.09 | 0.17 | 0.50 | ||||||||
Net income attributable to common shareowners | $ 3.86 | $ 1.54 | $ 1.73 | $ 1.58 | $ 1.62 | $ 2.04 | $ 1.84 | $ 1.32 | $ 8.61 | $ 6.82 | $ 6.25 |
Commercial Aerospace Industry67
Commercial Aerospace Industry Assets and Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 |
Accounts Notes And Loans Receivable [Line Items] | |||
Unbilled Contracts Receivable | $ 2,318 | $ 1,863 | |
Commercial Aerospace [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Guarantee Obligations Maximum Exposure | 365 | 411 | |
Commercial Aerospace [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Accounts, Notes, Loans and Financing Receivable, gross | 6,143 | 5,548 | |
Products Under Lease | 537 | 564 | |
Notes and leases receivable, total committed | 566 | 424 | |
Commercial Aerospace financing and other contractual commitments | 14,600 | ||
Notes and leases receivable within one year | 97 | ||
Notes and leases receivable within two years | 102 | ||
Notes and leases receivable within three years | 26 | ||
Notes and leases receivable within four years | 40 | ||
Notes and leases receivable within five years | 34 | ||
Notes and leases receivable after five years | 267 | ||
Commercial aerospace financing commitments, total committed | 2,608 | ||
Commercial aerospace financing commitments within one year | 410 | ||
Commercial aerospace financing commitments within two years | 405 | ||
Commercial aerospace financing commitments within three years | 534 | ||
Commercial aerospace financing commitments within four years | 381 | ||
Commercial aerospace financing commitments within five years | 178 | ||
Commercial aerospace financing commitments after five years | 700 | ||
Other commercial aerospace commitments, total committed | 11,985 | ||
Other commercial aerospace commitments within one year | 821 | ||
Other commercial aerospace commitments within two years | 929 | ||
Other commercial aerospace commitments within three years | 896 | ||
Other commercial aerospace commitments within four years | 743 | ||
Other commercial aerospace commitments within five years | 728 | ||
Other commercial aerospace commitments after five years | 7,868 | ||
Collaboration partners' share, total committed | 4,093 | ||
Collaboration partners' share within one year | 344 | ||
Collaboration partners' share within two years | 381 | ||
Collaboration partners' share within three years | 462 | ||
Collaboration partners' share within four years | 302 | ||
Collaboration partners' share within five years | 193 | ||
Collaboration partners' share after five years | 2,411 | ||
Total commercial commitments, total committed | 10,500 | ||
Total commercial commitments within one year | 887 | ||
Total commercial commitments within two years | 953 | ||
Total commercial commitments within three years | 968 | ||
Total commercial commitments within four years | 822 | ||
Total commercial commitments within five years | 713 | ||
Total commercial commitments after five years | 6,157 | ||
Unbilled Contracts Receivable | 1,091 | 819 | |
Deferred Revenue | 3,502 | 3,429 | |
Allowance For Accounts Notes Receivable | 217 | 243 | |
Guarantee Obligations And Rental Commitments Current Carrying Value | $ 47 | $ 64 | |
International Aero Engines AG [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Business Acquisition Cost Of Acquired Entity, Purchase Price | $ 1,500 |
Inventories and Contracts in 68
Inventories and Contracts in Progress (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw materials | $ 2,037 | $ 1,948 |
Work-in-process | 2,422 | 2,093 |
Finished goods | 3,183 | 2,975 |
Contracts in progress | 8,668 | 8,189 |
Inventories before payments and billings | 16,310 | 15,205 |
Progress payments, secured by lien, on U.S. Government contracts Netted Against Inventory For Long Term US Government Contracts Or Programs | 239 | 117 |
Billings on contracts in progress | 7,936 | 7,446 |
Inventories and contracts in progress, net | 8,135 | 7,642 |
Inventory Valuation Reserves | $ 760 | $ 721 |
Percentage Of Inventory For Long Term Contracts Or Programs | 67.00% | 65.00% |
UTC Aerospace Systems [Member] | ||
Inventory [Line Items] | ||
Capitalized research and development costs included in inventory | $ 152 | $ 141 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Land | $ 384 | $ 392 | |
Buildings and improvements | 5,030 | 5,098 | |
Machinery, tools and equipment | 11,717 | 11,398 | |
Other, including assets under construction | 1,363 | 1,181 | |
Fixed assets | 18,494 | 18,069 | |
Accumulated depreciation | 9,762 | 9,477 | |
Fixed assets, net | 8,732 | 8,592 | |
Property Plant And Equipment [Line Items] | |||
Depreciation | $ 1,068 | $ 1,043 | $ 971 |
Land Buildings And Improvements [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Land Buildings And Improvements [Member] | Minimum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 12 years | ||
Machinery And Equipment [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Machinery And Equipment [Member] | Minimum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Liabilities [Abstract] | ||
Advances on sales contracts and service billings | $ 3,952 | $ 4,241 |
Income taxes payable | 2,498 | 305 |
Accrued salaries, wages and employee benefits | 1,543 | 1,795 |
Service and warranty accruals | 546 | 504 |
Litigation and contract matters | 482 | 496 |
Interest payable | 391 | 503 |
Accrued restructuring costs | 334 | 253 |
Accrued property, sales and use taxes | 292 | 280 |
Canadian government settlement - current portion | 241 | 0 |
Accrued workers compensation | 212 | 215 |
Other | 4,147 | 3,935 |
Accrued liabilities | $ 14,638 | $ 12,527 |
Accrued Liabilities Narrative (
Accrued Liabilities Narrative (Details) - 3 months ended Dec. 31, 2015 CAD in Millions, $ in Millions | USD ($) | CAD |
Accrued Liabilities [Abstract] | ||
Candadian Government Amendment Arrangements, Annual Payment Amount | $ 241 | CAD 327 |
Canadian Government Amendment Arrangements, Expense | 867 | |
Canadian Government Amendment Arrangements, Remaining Liability | $ 626 |
Borrowings and Lines of Credi72
Borrowings and Lines of Credit (Short-Term Borrowings) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Commercial Paper | $ 727 | $ 0 |
Other borrowings | 199 | 126 |
Total short-term borrowings | $ 926 | $ 126 |
Borrowings and Lines of Credi73
Borrowings and Lines of Credit (ST Borrowings Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | ||
Aggregate Line of Credit Facility Maximum Borrowing Capacity | $ 4,350 | |
Maximum Commercial Paper Borrowing Authority | $ 4,350 | |
Short Term Debt Weighted Average Interest Rate | 0.80% | 5.70% |
Short Term Line of Credit Facilities Remaining Borrowing Capacities | $ 1,400 | |
Line of Credit Facility [Line Items] | ||
Long Term Debt Remarketing, Proceeds | $ 1,100 | |
Long Term Debt Remarketing, Number of Shares Issued | 11.3 | |
Multicurrency Revolving Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,150 | |
Revolving Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Expiration Date | May 23, 2019 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,200 |
Borrowings and Lines of Credi74
Borrowings and Lines of Credit (Long-Term Debt) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | |||
Project financing obligations | $ 191 | $ 147 | |
Long Term Debt Remarketing, Proceeds | 1,100 | ||
Long-term Debt and Capital Lease Obligations | $ 19,320 | 17,784 | |
Long Term Debt Remarketing, Number of Shares Issued | 11.3 | ||
Total principal long-term debt | $ 19,439 | 19,490 | |
Other long-term debt (including capitalized leases)‡ | [1] | 306 | 368 |
Other long-term debt (fair market value adjustments and discounts)‡ | [1] | 60 | 85 |
Total long-term debt | 19,499 | 19,575 | |
Less: current portion | 179 | 1,791 | |
Long Term Debt Maturities Repayments Of Principal In Next Twelve Months | 179 | ||
Long Term Debt Maturities Repayments Of Principal In Year Two | 2,551 | ||
Long Term Debt Maturities Repayments Of Principal In Year Three | 1,231 | ||
Long Term Debt Maturities Repayments Of Principal In Year Four | 1,568 | ||
Long Term Debt Maturities Repayments Of Principal In Year Five | 1,476 | ||
Long Term Debt Maturities Repayments Of Principal After Year Five | $ 12,434 | ||
Multicurrency Revolving Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Expiration Date | May 23, 2019 | ||
LIBOR plus 0.500% floating rate notes due 2015 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | $ 0 | 500 | |
Debt Instrument, Maturity Year Date | 2,015 | ||
Debt Instrument, Interest Rate Terms | LIBOR plus 0.500% | ||
Notes 4.875% Due 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | $ 0 | 1,200 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | ||
Debt Instrument, Maturity Year Date | 2,015 | ||
Notes 5.375% Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [2] | $ 1,000 | 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 1.800% Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [2] | $ 1,500 | 1,500 |
Debt Instrument, Interest Rate, Stated Percentage | 1.80% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 6.800% Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 99 | 99 |
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 6.125% Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [2] | $ 1,250 | 1,250 |
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 8.875% Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | $ 271 | 271 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.875% | ||
Debt Instrument, Maturity Year Date | 2,019 | ||
Notes 4.500% Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [2] | $ 1,250 | 1,250 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 4.875% Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 171 | 171 |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 8.750% Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | $ 250 | 250 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | ||
Debt Instrument, Maturity Year Date | 2,021 | ||
Notes 3.100% Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [2] | $ 2,300 | 2,300 |
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Junior Subordinated Notes 1.550% Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | $ 0 | 1,100 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.55% | ||
Debt Instrument, Maturity Year Date | 2,022 | ||
Notes 7.100% Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 141 | 141 |
Debt Instrument, Interest Rate, Stated Percentage | 7.10% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 6.700% Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | $ 400 | 400 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | ||
Debt Instrument, Maturity Year Date | 2,028 | ||
Notes 7.500% Due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [2] | $ 550 | 550 |
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 5.400% Due 2035 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [2] | $ 600 | 600 |
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 6.050% Due 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [2] | $ 600 | 600 |
Debt Instrument, Interest Rate, Stated Percentage | 6.05% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 6.800% Due 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 134 | 134 |
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 7.000% Due 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 159 | 159 |
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 6.125% Due 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [2] | $ 1,000 | 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 5.700% Due 2040 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [2] | $ 1,000 | 1,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 4.500% Due 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [2] | $ 3,500 | 3,500 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Junior subordinated notes 1.778% due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | $ 1,100 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.778% | ||
Debt Instrument, Maturity Year Date | 2,018 | ||
Long Term Debt Remarketing, Proceeds | $ 1,100 | ||
Long Term Debt Remarketing, Number of Shares Issued | 11.3 | ||
Notes 1.250% due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [3] | $ 817 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Notes 4.150% Due 2045 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [4] | $ 850 | $ 0 |
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | ||
Debt Instrument, Maturity Year Date | 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. | ||
Revolving Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Expiration Date | May 23, 2019 | ||
[1] | Includes notes and remaining fair market value adjustments that were assumed as a part of the Goodrich acquisition on July 26, 2012. | ||
[2] | 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. | ||
[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 will be 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 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, these 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 will be 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 25 basis points. |
Borrowings and Lines of Credi75
Borrowings and Lines of Credit Borrowings and Lines of Credit (LT Debt Narrative) (Details) € in Millions, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)shares | Dec. 31, 2015EUR (€)shares | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Long Term Debt Remarketing, Proceeds | $ 1,100 | ||
Long Term Debt Remarketing, Number of Shares Issued | shares | 11.3 | 11.3 | |
Debt Percentage Bearing Variable Interest Rate | 5.00% | 5.00% | 4.00% |
Notes 4.150% Due 2045 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Issuance Date | May 4, 2015 | May 4, 2015 | |
Proceeds from Issuance of Debt | $ 850 | ||
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 | |||
Debt Instrument [Line Items] | |||
Repayment of Debt, Date | Jun. 1, 2015 | Jun. 1, 2015 | |
Repayments of Debt | $ 500 | ||
Junior Subordinated Notes 1.550% Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Remarketing of Debt Instrument, Date | May 4, 2015 | May 4, 2015 | |
Junior subordinated notes 1.778% due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Remarketing of Long Term Debt, Date Proceeds Received | Aug. 3, 2015 | Aug. 3, 2015 | |
Long Term Debt Remarketing, Proceeds | $ 1,100 | ||
Long Term Debt Remarketing, Number of Shares Issued | shares | 11.3 | 11.3 | |
Notes 1.250% due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Issuance Date | May 22, 2015 | May 22, 2015 | |
Proceeds from Issuance of Debt | € | € 750 |
Equity (Reclass and Changes in
Equity (Reclass and Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Balance at December 31 | $ (7,619) | $ (6,661) | $ (2,880) |
Other comprehensive (loss) income before reclassifications, net | (1,679) | (4,113) | |
Amounts reclassified, pretax | 1,089 | 499 | |
Income Tax Expense (Benefit) | 2,111 | 2,244 | 1,999 |
Foreign Currency Translation | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Balance at December 31 | (2,438) | (1,051) | 170 |
Other comprehensive (loss) income before reclassifications, net | (1,429) | (1,228) | |
Amounts reclassified, pretax | 42 | 7 | |
Income Tax Expense (Benefit) | 0 | 0 | |
Defined Benefit Pension and Post-retirement Plans | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Balance at December 31 | (5,135) | (5,709) | (3,267) |
Other comprehensive (loss) income before reclassifications, net | 32 | (2,708) | |
Amounts reclassified, pretax | 867 | 416 | |
Income Tax Expense (Benefit) | (325) | (150) | |
Unrealized Gains (Losses) on Available-for-Sale Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Balance at December 31 | 293 | 308 | 296 |
Other comprehensive (loss) income before reclassifications, net | 16 | 28 | |
Amounts reclassified, pretax | (54) | (20) | |
Income Tax Expense (Benefit) | 23 | 4 | |
Unrealized Hedging (Losses) Gains | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Balance at December 31 | (339) | (209) | $ (79) |
Other comprehensive (loss) income before reclassifications, net | (298) | (205) | |
Amounts reclassified, pretax | 234 | 96 | |
Income Tax Expense (Benefit) | (66) | (21) | |
Accumulated Other Comprehensive (Loss) Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Income Tax Expense (Benefit) | $ (368) | $ (167) |
Equity (Changes in Noncontrolli
Equity (Changes in Noncontrolling Interests) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Net [Abstract] | |||
Increase in common stock for sale of subsidiary shares | $ 12 | ||
Decrease in common stock for purchase of subsidiary shares | $ 71 | $ 49 |
Equity (Accelerated Share Repur
Equity (Accelerated Share Repurchase) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accelerated Share Repurchases [Line Items] | |||
Treasury Stock, Value, Acquired, Cost Method | $ 10,000,000,000 | $ 1,500,000,000 | $ 1,200,000,000 |
March 13, 2015 [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
ASR Agreement Amount | $ 2,650,000,000 | ||
March 13, 2015 [Member] | Initial delivery, shares of Common Stock [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury Stock, Shares, Acquired | 18,600,000 | ||
March 13, 2015 [Member] | Final delivery, shares of Common Stock [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury Stock, Shares, Acquired | 4,200,000 | ||
November 11, 2015 [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
ASR Agreement Amount | $ 6,000,000,000 | ||
Accelerated Share Repurchases, Initial Price Paid Per Share | $ 98.26 | ||
ASR amount included in APIC to be reclassified to treasury stock | $ 900,000,000 | ||
November 11, 2015 [Member] | Initial delivery, shares of Common Stock [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury Stock, Shares, Acquired | 51,900,000 | ||
November 11, 2015 [Member] | Accelerated Stock Repurchase [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
Treasury Stock, Value, Acquired, Cost Method | $ 5,100,000,000 |
Equity (Remarketing) (Details)
Equity (Remarketing) (Details) shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
Debt Instrument [Line Items] | |
Long Term Debt Remarketing, Proceeds | $ | $ 1,100 |
Long Term Debt Remarketing, Number of Shares Issued | shares | 11.3 |
Junior subordinated notes 1.778% due 2018 [Member] | |
Debt Instrument [Line Items] | |
Long Term Debt Remarketing, Proceeds | $ | $ 1,100 |
Long Term Debt Remarketing, Number of Shares Issued | shares | 11.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | |||
Income, United States | $ 2,782 | $ 4,165 | $ 3,065 |
Income, Foreign | 3,685 | 4,547 | 4,589 |
Income from continuing operations before income taxes | 6,467 | 8,712 | 7,654 |
Undistributed Earnings of Foreign Subsidiaries | 29,000 | ||
Current Tax Provision, Federal | 328 | 319 | 390 |
Current Tax Provision, State | (37) | 38 | 18 |
Current Tax Provision, Foreign | 1,158 | 1,484 | 1,323 |
Current Income Tax Expense Benefit | 1,449 | 1,841 | 1,731 |
Future Tax Provision, Federal | 712 | 421 | 292 |
Future Tax Provision, State | 109 | (23) | 44 |
Future Tax Provision, Foreign | (159) | 5 | (68) |
Deferred income tax provision | 662 | 403 | 268 |
Income tax expense | 2,111 | 2,244 | 1,999 |
Attributable to items credited (charged) to equity and goodwill | $ (114) | $ 1,535 | $ (1,661) |
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
Tax on international activities | (2.00%) | (3.30%) | (6.20%) |
Tax audit settlements | 0.00% | (4.30%) | (0.50%) |
Other | (0.40%) | (1.60%) | (2.20%) |
Effective income tax rate | 32.60% | 25.80% | 26.10% |
Tax Adjustments Settlements And Unusual Provisions | $ 35 | ||
Income Tax Credits and Adjustments | $ 68 | 24 | |
Foreign Earnings Repatriation [Member] | |||
Income Tax Contingency [Line Items] | |||
Other Information Pertaining To Income Taxes, Monetary | 274 | ||
2006 - 2008 Tax Years [Member] | |||
Income Tax Contingency [Line Items] | |||
Other Information Pertaining To Income Taxes, Monetary | $ 84 | ||
2009 - 2010 Tax Years [Member] | |||
Income Tax Contingency [Line Items] | |||
Other Information Pertaining To Income Taxes, Monetary | 213 | ||
2010 - 2012 Tax Years [Member] | |||
Income Tax Contingency [Line Items] | |||
Other Information Pertaining To Income Taxes, Monetary | 40 | ||
Canada Revenue Agency’s Examination Research Credit 2006-2012 [Member] | |||
Income Tax Contingency [Line Items] | |||
Other Information Pertaining To Income Taxes, Monetary | 34 | ||
Dividend Repatriation [Member] | |||
Income Tax Contingency [Line Items] | |||
Other Information Pertaining To Income Taxes, Monetary | 175 | ||
1998 Reorganization Otis Germany [Member] | |||
Income Tax Contingency [Line Items] | |||
Other Information Pertaining To Income Taxes, Monetary | $ 265 | ||
American Taxpayer Relief Act of 2012 [Member] | |||
Income Tax Contingency [Line Items] | |||
Other Information Pertaining To Income Taxes, Monetary | $ 95 | ||
2015 Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Other Information Pertaining To Income Taxes, Monetary | $ 45 |
Income Taxes (Tax Carryforwards
Income Taxes (Tax Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Tax Credit Carryforward [Line Items] | ||
Future Benefits, Insurance and employee benefits | $ 2,650 | $ 3,033 |
Future Benefits, Other asset basis differences | 1,199 | 369 |
Future Benefits, Other liability basis differences | 1,543 | 1,039 |
Future Benefits, Tax loss carryforwards | 528 | 660 |
Future Benefits, Tax credit carryforwards | 872 | 963 |
Future Benefits, Valuation allowances | (591) | (612) |
Deferred Tax Assets, Net of Valuation Allowance | 6,201 | 5,452 |
Deferred Tax Liabilities Other Asset Basis Difference | 5,324 | 4,584 |
Deferred Tax Liabilities, Other | 531 | (124) |
Deferred Tax Liabilities, net of valuation allowances | 5,855 | $ 4,460 |
Operating Loss Carryforwards | 2,901 | |
Tax Credit Carryforward Amount | 871 | |
Expiration Period Current To Five Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 274 | |
Tax Credit Carryforward Amount | 3 | |
Expiration Period Six To Ten Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 127 | |
Tax Credit Carryforward Amount | 4 | |
Expiration Period Eleven To Twenty Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 573 | |
Tax Credit Carryforward Amount | 196 | |
Expiration Period Indefinite [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 1,927 | |
Tax Credit Carryforward Amount | $ 668 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Examination [Line Items] | |||
Balance at January 1 | $ 1,089 | $ 1,223 | $ 1,073 |
Additions for tax positions related to the current year | 206 | 164 | 113 |
Additions for tax positions of prior years | 99 | 435 | 211 |
Reductions for tax positions of prior years | 101 | 47 | 41 |
Settlements | 124 | 686 | 133 |
Balance at December 31 | 1,169 | 1,089 | 1,223 |
Gross interest expense related to unrecognized tax benefits | 39 | 180 | 51 |
Total accrued interest balance at December 31 | 176 | 292 | 262 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible Estimated Range of Change, Upper Bound | 490 | ||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible Estimated Range Of Change, Lower Bound | $ 25 | ||
Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions, Uncertain Timing | 87 | ||
Estimated Tax Settlement Interest Gain (Loss) Noncash, Range, Lower Limit | 220 | ||
Resolution of disputed Goodrich tax matters Tax Years 2001-2002 [Member] | |||
Income Tax Examination [Line Items] | |||
Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities | 25 | ||
Tax Settlement Interest Gain (Loss) Noncash | 12 | ||
Resolution of disputed Goodrich tax matters Tax Years 2009-2010 [Member] | |||
Income Tax Examination [Line Items] | |||
Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities | 24 | ||
Tax Settlement Interest Gain (Loss) Noncash | 2 | ||
Resolution of disputed tax matters Tax Years through 2005 [Member] | |||
Income Tax Examination [Line Items] | |||
Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities | $ 34 | ||
Resolution of various tax audit, appeal & litigation activity [Member] | |||
Income Tax Examination [Line Items] | |||
Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities | 508 | ||
Tax Settlement Interest Gain (Loss) Noncash | $ 132 |
Employee Benefit Plans (Employe
Employee Benefit Plans (Employee Savings Plans) (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Benefit Plans [Abstract] | |||
Defined Contribution Plan, Cost Recognized | $ 356 | $ 330 | $ 335 |
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 29.2 | ||
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | 12.9 | ||
Employee Stock Ownership Plan (ESOP), Deferred Shares, Fair Value | $ 1,200 |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Plan Assets | $ 32,738 | ||||
Ending Balance, Plan Assets | 31,011 | $ 32,738 | |||
Noncurrent liability | $ 6,022 | $ 6,681 | |||
Current year actuarial loss | (284) | (4,362) | $ 3,987 | ||
Current year prior service cost/credit | 37 | 5 | 225 | ||
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Beginning Balance, Benefit Obligation | 37,853 | 33,026 | |||
Service cost | 493 | 487 | |||
Interest cost | 1,399 | 1,517 | |||
Actuarial gain (loss) | (1,716) | 5,277 | |||
Total benefits paid | 1,796 | 1,939 | |||
Net settlement and curtailment gain | 55 | 1 | |||
Plan amendments | 39 | 5 | |||
Other | (789) | (519) | |||
Ending Balance, Benefit Obligation | 35,428 | 37,853 | 33,026 | ||
Beginning Balance, Plan Assets | 32,738 | 31,355 | |||
Actual return on plan assets | 265 | 3,140 | |||
Employer Contributions | 520 | 615 | |||
Benefits paid from plan assets | 1,796 | 1,939 | |||
Settlements | 59 | 0 | |||
Other | 657 | 433 | |||
Ending Balance, Plan Assets | 31,011 | 32,738 | 31,355 | ||
Benefit obligations | 37,853 | 33,026 | 33,026 | 35,428 | 37,853 |
Funded status of plan | (4,417) | (5,115) | |||
Noncurrent assets | 742 | 681 | |||
Current liability | 71 | 104 | |||
Noncurrent liability | 5,088 | 5,692 | |||
Net amount recognized | (4,417) | (5,115) | |||
Net actuarial loss | (8,224) | (9,068) | |||
Prior service credit | (57) | (27) | |||
Net amount recognized | 8,167 | 9,041 | |||
Projected benefit obligation | 30,915 | 34,261 | |||
Accumulated benefit obligation | 30,362 | 33,495 | |||
Fair value of plan assets | $ 25,827 | $ 28,478 | |||
Service Cost | 493 | 487 | 569 | ||
Interest cost | 1,399 | 1,517 | 1,373 | ||
Expected return on plan assets | 2,264 | 2,215 | 2,107 | ||
Amortization of prior service credit | (11) | (8) | (34) | ||
Recognized actuarial net loss | (882) | (429) | (954) | ||
Net settlement and curtailment loss | (150) | (13) | (1) | ||
Net periodic pension cost | 649 | $ 223 | $ 756 | ||
Current year actuarial loss | (283) | ||||
Amortization of actuarial loss | (882) | ||||
Current year prior service cost/credit | 39 | ||||
Amortization of prior service credit | (11) | ||||
Net settlement and curtailment loss | (145) | ||||
Other | (180) | ||||
Total recognized in other comprehensive loss | (874) | ||||
Net recognized in net periodic pension cost and other comprehensive loss | (225) | ||||
Net actuarial loss | (540) | ||||
Prior service credit | (32) | ||||
Total amount to be amortized from AOCI to NPPC | $ 508 | ||||
Discount rate, benefit obligation | 4.10% | 3.80% | |||
Salary scale, benefit obligation | 4.20% | 4.20% | |||
Expected return on plan assets, benefit obligation | 0.00% | 0.00% | |||
Discount rate, net cost | 3.80% | 4.70% | 4.00% | ||
Salary scale, net cost | 4.20% | 4.20% | 4.20% | ||
Expected return on plan assets, net cost | 7.60% | 7.60% | 7.70% |
Employee Benefit Plans (Pensi85
Employee Benefit Plans (Pension Plans) (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Domestic Defined Benefit Plan Stock Contributions By Employer | $ 250,000,000 | $ 0 | $ 0 | ||
Defined Benefit Plan, Accumulated Benefit Obligation | 34,600,000,000 | 36,900,000,000 | |||
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Impact of change in estimation of NPPC | 215,000,000 | ||||
Mortality Table RP-2014 Adoption Impact | 1,100,000,000 | ||||
Pension Payout Program, Voluntary Lump-Sum Value | 50,000 | ||||
Pension Payout Program, Total Amount Settled | $ 147,000,000 | 311,000,000 | |||
Percentage Of Projected Benefit Obligation Comprised Of Domestic Plan Benefits | 76.00% | ||||
Projected Benefit Obligation Reduction Due To Plan Change | $ 623,000,000 | ||||
Reduction in projected benefit obligation due to plan change in 2003 related to Goodrich acquisition | $ 204,000,000 | ||||
Percentage Of Projected Benefit Obligation Comprised Of Foreign Plan Benefits | 22.00% | ||||
Domestic Defined Benefit Plan Stock Contributions By Employer | $ 250,000,000 | ||||
Domestic Defined Benefit Plan Cash Contributions By Employer | 200,000,000 | ||||
Foreign Defined Benefit Plan Cash Contributions By Employer | 147,000,000 | 317,000,000 | |||
Discontinued Operations Defined Benefit Plan Recognized Net Gain Loss Due to Settlements and Curtailments | 109,000,000 | 1,000,000 | (23,000,000) | ||
Defined Benefit Plan, Net Periodic Benefit Cost, Discontinued Operations | $ 98,000,000 | $ 96,000,000 | $ 86,000,000 | ||
Range Of Growth Seeking Assets In Company's Overall Investment Strategy | 55% to 65% | ||||
Range Of Income Generating Assets In Company's Overall Investment Strategy | 35% to 45% | ||||
Percentage Of Enhanced Equity Assets In Global Equity Portfolio | 10.00% | ||||
Pecentage Of Interest Rate Sensitivity Of Pension Plan Liabilities Fixed Income Portfolio Designed To Hedge | 35% to 45% | ||||
Defined Benefit Plan Common Stock Funded Percentage | 3.00% | 3.00% | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 175,000,000 | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 2,041,000,000 | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 1,871,000,000 | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 1,935,000,000 | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 1,997,000,000 | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 2,058,000,000 | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 10,996,000,000 |
Employee Benefit Plans (Pensi86
Employee Benefit Plans (Pension Plans) (Fair Value Tables) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | $ 32,738 | |||
Ending Balance, Plan Assets | 31,011 | $ 32,738 | ||
Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 6,879 | |||
Ending Balance, Plan Assets | 6,486 | 6,879 | ||
Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 9,925 | |||
Ending Balance, Plan Assets | 8,964 | 9,925 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 1,120 | 1,135 | ||
Realized gains (losses) | (1) | |||
Unrealized gains relating to instruments still held in the reporting period | 147 | 67 | ||
Purchases, sales and settlements, net | 81 | (82) | ||
Ending Balance, Plan Assets | 1,347 | 1,120 | ||
Global Equities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 5,966 | |||
Ending Balance, Plan Assets | 5,884 | 5,966 | ||
Global Equities [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 5,964 | |||
Ending Balance, Plan Assets | 5,884 | 5,964 | ||
Global Equities [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 2 | |||
Ending Balance, Plan Assets | 0 | 2 | ||
Global Equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | ||
Global Equity Commingled Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [1] | 1,055 | ||
Ending Balance, Plan Assets | [1] | 779 | 1,055 | |
Global Equity Commingled Funds [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [1] | 0 | ||
Ending Balance, Plan Assets | [1] | 0 | 0 | |
Global Equity Commingled Funds [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [1] | 1,055 | ||
Ending Balance, Plan Assets | [1] | 779 | 1,055 | |
Global Equity Commingled Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [1] | 0 | ||
Ending Balance, Plan Assets | [1] | 0 | 0 | |
Enhanced Global Equities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [2] | 1,484 | ||
Ending Balance, Plan Assets | [2] | 853 | 1,484 | |
Enhanced Global Equities [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [2] | 292 | ||
Ending Balance, Plan Assets | [2] | 237 | 292 | |
Enhanced Global Equities [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [2] | 1,192 | ||
Ending Balance, Plan Assets | [2] | 616 | 1,192 | |
Enhanced Global Equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [2] | 0 | ||
Ending Balance, Plan Assets | [2] | 0 | 0 | |
Global Equity Funds at net asset value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3] | 6,505 | ||
Ending Balance, Plan Assets | [3] | 6,475 | 6,505 | |
Global Equity Funds at net asset value [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3] | 0 | ||
Ending Balance, Plan Assets | [3] | 0 | 0 | |
Global Equity Funds at net asset value [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3] | 0 | ||
Ending Balance, Plan Assets | [3] | 0 | 0 | |
Global Equity Funds at net asset value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3] | 0 | ||
Ending Balance, Plan Assets | [3] | 0 | 0 | |
Private Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[4] | 1,400 | ||
Ending Balance, Plan Assets | [3],[4] | 1,517 | 1,400 | |
Private Equities | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[4] | 0 | ||
Ending Balance, Plan Assets | [3],[4] | 0 | 0 | |
Private Equities | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[4] | 0 | ||
Ending Balance, Plan Assets | [3],[4] | 0 | 0 | |
Private Equities | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 145 | [3],[4] | 90 | |
Realized gains (losses) | 3 | |||
Unrealized gains relating to instruments still held in the reporting period | 42 | 1 | ||
Purchases, sales and settlements, net | (8) | 54 | ||
Ending Balance, Plan Assets | [3],[4] | 182 | 145 | |
Governments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 471 | |||
Ending Balance, Plan Assets | 418 | 471 | ||
Governments [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 419 | |||
Ending Balance, Plan Assets | 365 | 419 | ||
Governments [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 52 | |||
Ending Balance, Plan Assets | 53 | 52 | ||
Governments [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | ||
Corporate Bonds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 7,136 | |||
Ending Balance, Plan Assets | 7,013 | 7,136 | ||
Corporate Bonds [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 4 | |||
Ending Balance, Plan Assets | 0 | 4 | ||
Corporate Bonds [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 7,132 | |||
Ending Balance, Plan Assets | 7,013 | 7,132 | ||
Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | ||
Fixed Income Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3] | 3,661 | ||
Ending Balance, Plan Assets | [3] | 2,992 | 3,661 | |
Fixed Income Securities [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3] | 0 | ||
Ending Balance, Plan Assets | [3] | 0 | 0 | |
Fixed Income Securities [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3] | 0 | ||
Ending Balance, Plan Assets | [3] | 0 | 0 | |
Fixed Income Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3] | 0 | ||
Ending Balance, Plan Assets | [3] | 0 | 0 | |
Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[5] | 1,925 | ||
Ending Balance, Plan Assets | [3],[5] | 2,254 | 1,925 | |
Real Estate [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[5] | 0 | ||
Ending Balance, Plan Assets | [3],[5] | 0 | 0 | |
Real Estate [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[5] | 12 | ||
Ending Balance, Plan Assets | [3],[5] | 10 | 12 | |
Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 975 | [3],[5] | 1,045 | |
Realized gains (losses) | (4) | |||
Unrealized gains relating to instruments still held in the reporting period | 105 | 66 | ||
Purchases, sales and settlements, net | 89 | (136) | ||
Ending Balance, Plan Assets | [3],[5] | 1,165 | 975 | |
Other [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[6] | 2,245 | ||
Ending Balance, Plan Assets | [3],[6] | 2,040 | 2,245 | |
Other [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[6] | 0 | ||
Ending Balance, Plan Assets | [3],[6] | 0 | 0 | |
Other [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[6] | 349 | ||
Ending Balance, Plan Assets | [3],[6] | 334 | 349 | |
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[6] | 0 | ||
Ending Balance, Plan Assets | [3],[6] | 0 | 0 | |
Cash & Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[7] | 447 | ||
Ending Balance, Plan Assets | [3],[7] | 493 | 447 | |
Cash & Cash Equivalents [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[7] | 200 | ||
Ending Balance, Plan Assets | [3],[7] | 0 | 200 | |
Cash & Cash Equivalents [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[7] | 131 | ||
Ending Balance, Plan Assets | [3],[7] | 159 | 131 | |
Cash & Cash Equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[7] | 0 | ||
Ending Balance, Plan Assets | [3],[7] | 0 | 0 | |
Subtotal [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 32,295 | |||
Ending Balance, Plan Assets | 30,718 | 32,295 | ||
Other Assets & Liabilities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [8] | 443 | ||
Ending Balance, Plan Assets | [8] | 293 | 443 | |
Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 14,371 | |||
Ending Balance, Plan Assets | 13,921 | 14,371 | ||
Not Subject to Leveling [Member] | Global Equities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | ||
Not Subject to Leveling [Member] | Global Equity Commingled Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [1] | 0 | ||
Ending Balance, Plan Assets | [1] | 0 | 0 | |
Not Subject to Leveling [Member] | Enhanced Global Equities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [2] | 0 | ||
Ending Balance, Plan Assets | [2] | 0 | 0 | |
Not Subject to Leveling [Member] | Global Equity Funds at net asset value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3] | 6,505 | ||
Ending Balance, Plan Assets | [3] | 6,475 | 6,505 | |
Not Subject to Leveling [Member] | Private Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[4] | 1,255 | ||
Ending Balance, Plan Assets | [3],[4] | 1,335 | 1,255 | |
Not Subject to Leveling [Member] | Governments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | ||
Not Subject to Leveling [Member] | Corporate Bonds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | ||
Not Subject to Leveling [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3] | 3,661 | ||
Ending Balance, Plan Assets | [3] | 2,992 | 3,661 | |
Not Subject to Leveling [Member] | Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[5] | 938 | ||
Ending Balance, Plan Assets | [3],[5] | 1,079 | 938 | |
Not Subject to Leveling [Member] | Other [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[6] | 1,896 | ||
Ending Balance, Plan Assets | [3],[6] | 1,706 | 1,896 | |
Not Subject to Leveling [Member] | Cash & Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[7] | 116 | ||
Ending Balance, Plan Assets | [3],[7] | $ 334 | $ 116 | |
[1] | Represents commingled funds that invest primarily in common stocks. | |||
[2] | Represents enhanced equity separate account and commingled fund portfolios. A portion of the portfolio may include long-short market neutral and relative value strategies that invest in publicly traded, equity and fixed income securities, as well as derivatives of equity and fixed income securities and foreign currency. | |||
[3] | In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets. | |||
[4] | Represents limited partner investments with general partners that primarily invest in debt and equity. | |||
[5] | Represents investments in real estate including commingled funds and directly held properties. | |||
[6] | Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities. | |||
[7] | Represents short-term commercial paper, bonds and other cash or cash-like instruments. | |||
[8] | Represents trust receivables and payables that are not leveled. |
Employee Benefit Plans (Postret
Employee Benefit Plans (Postretirement Benefit Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Beginning Balance, Plan Assets | $ 32,738 | ||||
Ending Balance, Plan Assets | 31,011 | $ 32,738 | |||
Noncurrent liability | $ 6,022 | $ 6,681 | |||
Current year actuarial loss | (284) | (4,362) | $ 3,987 | ||
Current year prior service cost/credit | 37 | 5 | 225 | ||
Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Beginning Balance, Benefit Obligation | 952 | 987 | |||
Service cost | 3 | 3 | |||
Interest cost | 34 | 41 | |||
Actuarial loss | 0 | 7 | |||
Total benefits paid | 104 | 107 | |||
Other | 5 | 21 | |||
Ending Balance, Benefit Obligation | 890 | 952 | 987 | ||
Beginning Balance, Plan Assets | 0 | 0 | |||
Employer Contributions | 84 | 85 | |||
Benefits paid from plan assets | 104 | 107 | |||
Other | 20 | 22 | |||
Ending Balance, Plan Assets | 0 | 0 | 0 | ||
Benefit obligations | 952 | 987 | 987 | 890 | 952 |
Funded status of plan | (890) | (952) | |||
Current liability | 84 | 89 | |||
Noncurrent liability | 806 | 863 | |||
Net amount recognized | (890) | (952) | |||
Net actuarial gain | 109 | 113 | |||
Prior service (credit) cost | (1) | 1 | |||
Net amount recognized | $ (110) | $ (112) | |||
Service Cost | 3 | 3 | 3 | ||
Interest cost | 34 | 41 | 38 | ||
Amortization of prior service credit | 0 | (1) | (10) | ||
Recognized actuarial net gain | 4 | 4 | 4 | ||
Net settlement and curtailment gain | 1 | 0 | 0 | ||
Net periodic pension cost | 32 | $ 39 | $ 27 | ||
Current year actuarial loss | (1) | ||||
Current year prior service cost/credit | (2) | ||||
Amortization of actuarial net gain | 4 | ||||
Other | (1) | ||||
Total recognized in other comprehensive loss | 2 | ||||
Net recognized in net periodic other postretirement benefit cost and other comprehensive loss | $ 34 | ||||
Discount rate, benefit obligation | 4.00% | 3.80% | |||
Discount rate, net cost | 3.80% | 4.40% | 3.60% | ||
Health care cost trend rate assumed for next year | 6.50% | 7.00% | |||
Rate that the cost trend rate gradually declines to | 5.00% | 5.00% | |||
Year that the rate reaches the rate it is assumed to remain at | 2,022 | 2,019 | |||
Effect on total service and interest cost, increase | $ 2 | ||||
Effect on total service and interest cost, decrease | 2 | ||||
Effect on postretirement benefit obligation, increase | 57 | ||||
Effect on postretirement benefit obligation, decrease | $ 48 |
Employee Benefit Plans (Postr88
Employee Benefit Plans (Postretirement Benefit Plans) (Narrative) (Details) - Other Postretirement Benefit Plan [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage Of Projected Benefit Obligation Comprised Of Domestic Plan Benefits | 89.00% |
Defined Benefit Plan, Future Amortization of Gain (Loss) | $ 3 |
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) | 1 |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 84 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 82 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 77 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 72 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 67 |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 276 |
Employee Benefit Plans (Multiem
Employee Benefit Plans (Multiemployer Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Multiemployer Plans [Line Items] | |||
Multiemployer Plans General Nature | The risks of participating in these multiemployer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. Lastly, if we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans a withdrawal liability based on the underfunded status of the plan. | ||
Multiemployer Plans Period Contributions | $ 120 | $ 113 | $ 105 |
Multiemployer Plans Period Contributions Other Than Pensions | $ 15 | $ 14 | 12 |
National Elevator Industry Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Entity Tax Identification Number | 232,694,291 | ||
Multiemployer Plans Certified Zone Status | Green | Green | |
Multiemployer Plans Funding Improvement Plan And Rehabilitation Plan | No | ||
Multiemployer Plans Period Contributions | $ 88 | $ 79 | 71 |
Multiemployer Plans Surcharge | No | ||
Multiemployer Plans Collective Bargaining Arrangement Expiration Date | Jul. 8, 2017 | ||
Multiemployer Plans, Period Contributions, Significance of Contributions | 1 | 1 | |
Other Funds [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plans Period Contributions | $ 32 | $ 34 | $ 34 |
Employee Benefit Plans (Stock B
Employee Benefit Plans (Stock Based Compensation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost of Share Based Payments | $ 175 | $ 240 | $ 275 | |
Expected Volatility, Minimum | 20.00% | 22.00% | 26.00% | |
Expected Volatility, Maximum | 23.00% | 26.00% | 27.00% | |
Weighted-average volatility | 21.00% | 26.00% | 27.00% | |
Expected dividends | 2.20% | 2.20% | 2.60% | |
Risk-free rate, minimum | 0.00% | 0.00% | 0.10% | |
Risk-free rate, maximum | 2.20% | 3.10% | 1.90% | |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 9 months 18 days | 8 years | 7 years 7 months 6 days | |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years | 7 years 7 months 6 days | 7 years 3 months 18 days | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
December 31, 2014, Shares | 2,288 | |||
Granted, Shares | 312 | |||
Exercised/earned, Shares | 648 | |||
Cancelled, Shares | 73 | |||
December 31, 2015, Shares | 1,879 | 2,288 | ||
December 31, 2014, Average Price | [1] | $ 73.76 | ||
Granted, Average Price | [1] | 110.78 | ||
Exercised/Earned, Average Price | [1] | 56.10 | ||
Cancelled, Average Price | [1] | 68.69 | ||
December 31, 2015, Average Price | [1] | $ 86.19 | $ 73.76 | |
Stock Options/Stock Appreciation Rights SARS [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Awards Vested and Expected to Vest, Awards | 40,000 | |||
Equity Awards Vested and Expected to Vest, Average Price | [2] | $ 82.95 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 675 | |||
Equity Awards Vested and Expected to Vest, Remaining Term | 5 years 4 months 24 days | |||
Equity Awards That Are Exercisable, Awards | 26,000 | |||
Equity Awards That Are Exercisable, Average Price | [2] | $ 72.74 | ||
Equity Awards That Are Exercisable, Aggregate Intrinsic Value | $ 621 | |||
Equity Awards That Are Exercisable, Remaining Term | 4 years 1 month 6 days | |||
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
December 31, 2014, Shares | 38,404 | |||
Granted, Shares | 5,411 | |||
Exercised/earned, Shares | 4,975 | |||
Cancelled, Shares | 729 | |||
December 31, 2015, Shares | 38,111 | 38,404 | ||
December 31, 2014, Average Price | [1] | $ 77.48 | ||
Granted, Average Price | [1] | 111.15 | ||
Exercised/Earned, Average Price | [1] | 64.56 | ||
Cancelled, Average Price | [1] | 96.67 | ||
December 31, 2015, Average Price | [1] | $ 83.58 | $ 77.48 | |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
December 31, 2014, Shares | 2,532 | |||
Granted, Shares | 693 | |||
Exercised/earned, Shares | 884 | |||
Cancelled, Shares | 171 | |||
December 31, 2015, Shares | 2,170 | 2,532 | ||
December 31, 2014, Average Price | [3] | $ 87.65 | ||
Granted, Average Price | [3] | 115.08 | ||
Exercised/Earned, Average Price | [3] | 74.71 | ||
Cancelled, Average Price | [3] | 86.60 | ||
December 31, 2015, Average Price | [3] | $ 101.78 | $ 87.65 | |
Other Incentives [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
December 31, 2014, Shares | 1,495 | |||
Granted, Shares | 574 | |||
Exercised/earned, Shares | 487 | |||
Cancelled, Shares | 115 | |||
December 31, 2015, Shares | 1,467 | 1,495 | ||
Performance Share Units/Other Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Awards Vested and Expected to Vest, Awards | 2,000 | |||
Equity Awards Vested and Expected to Vest, Average Price | [2] | $ 0 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 204 | |||
Equity Awards Vested and Expected to Vest, Remaining Term | 1 year 8 months 12 days | |||
Continuing Operations [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost of Share Based Payments | $ 158 | $ 219 | $ 250 | |
Discontinued Operations, Disposed of by Sale [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost of Share Based Payments | $ 17 | $ 21 | $ 25 | |
[1] | weighted-average exercise price | |||
[2] | weighted-average exercise price per share | |||
[3] | weighted-average grant stock price |
Employee Benefit Plans (Stock91
Employee Benefit Plans (Stock Based Compensation) (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 149 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 46 | ||
Expected Range Of Shares Awarded Annually Under Long Term Incentive Plan | 1.0% to 1.5% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Description and Terms | In general, unvested UTC awards held by Sikorsky employees accelerated as of the sale date and an increase in the post-termination exercise period was allowed. | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 57 | $ 80 | $ 97 |
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | 41 | 187 | 378 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 89 | 125 | 194 |
Employee Service Share Based Compensation Tax Benefit Realized From Vesting Of Performance Share Units | 48 | 49 | 26 |
Employee Service Share Based Compensation Cash Flow Tax Benefit Reported | 64 | 103 | 115 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 163 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Vested In Period Total Fair Value | $ 247 | $ 226 | $ 219 |
Stock Options/Stock Appreciation Rights SARS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 18.69 | $ 28.36 | $ 19.91 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 281 | $ 425 | $ 608 |
Performance Share Units/Other Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Options and Other Restricted Awards Exercised In Period Total Intrinsic Value | $ 151 | $ 154 | $ 75 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 120.36 | $ 125.41 | $ 91.71 |
Discontinued Operations, Disposed of by Sale [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | $ 2 |
Restructuring and Other Costs92
Restructuring and Other Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | $ 396 | |
Restructuring Costs recorded within discontinued operations | 139 | |
Total restructuring costs | 535 | |
Disposal Group, Including Discontinued Operation, Recognized Net (Gain) Loss Due to Curtailments | 109 | |
Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 326 | |
Utilization and foreign exchange | 120 | |
Restructuring Reserve Ending Balance | 206 | |
Restructuring and Related Cost, Incurred Cost | 326 | |
Restructuring and Related Cost, Expected Cost | 543 | |
Restructuring And Related Cost Expected Remaining | 217 | |
Current Year Actions [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 289 | |
Utilization and foreign exchange | 106 | |
Restructuring Reserve Ending Balance | 183 | |
Current Year Actions [Member] | Facility Exit, Lease Termination & Other Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 37 | |
Utilization and foreign exchange | 14 | |
Restructuring Reserve Ending Balance | 23 | |
Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 73 | |
Restructuring Reserve Beginning Balance | 165 | |
Utilization and foreign exchange | 144 | |
Restructuring Reserve Ending Balance | 94 | $ 165 |
Restructuring and Related Cost, Incurred Cost | 73 | 325 |
Restructuring and Related Cost, Expected Cost | 446 | |
Restructuring And Related Cost Expected Remaining | 48 | |
Prior Year Actions [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 52 | |
Restructuring Reserve Beginning Balance | 156 | |
Utilization and foreign exchange | 116 | |
Restructuring Reserve Ending Balance | 92 | 156 |
Prior Year Actions [Member] | Facility Exit, Lease Termination & Other Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 21 | |
Restructuring Reserve Beginning Balance | 9 | |
Utilization and foreign exchange | 28 | |
Restructuring Reserve Ending Balance | 2 | 9 |
Otis [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 51 | |
Otis [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 35 | |
Restructuring and Related Cost, Expected Cost | 51 | |
Restructuring And Related Cost Expected Remaining | 16 | |
Otis [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 16 | 98 |
Restructuring and Related Cost, Expected Cost | 121 | |
Restructuring And Related Cost Expected Remaining | 7 | |
UTC Climate, Controls and Security [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 108 | |
UTC Climate, Controls and Security [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 83 | |
Restructuring and Related Cost, Expected Cost | 207 | |
Restructuring And Related Cost Expected Remaining | 124 | |
UTC Climate, Controls and Security [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 31 | 86 |
Restructuring and Related Cost, Expected Cost | 123 | |
Restructuring And Related Cost Expected Remaining | 6 | |
Pratt and Whitney [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 105 | |
Pratt and Whitney [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 82 | |
Restructuring and Related Cost, Expected Cost | 83 | |
Restructuring And Related Cost Expected Remaining | 1 | |
Pratt and Whitney [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 24 | 64 |
Restructuring and Related Cost, Expected Cost | 117 | |
Restructuring And Related Cost Expected Remaining | 29 | |
UTC Aerospace Systems [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 111 | |
UTC Aerospace Systems [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 105 | |
Restructuring and Related Cost, Expected Cost | 181 | |
Restructuring And Related Cost Expected Remaining | 76 | |
UTC Aerospace Systems [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 2 | 72 |
Restructuring and Related Cost, Expected Cost | 80 | |
Restructuring And Related Cost Expected Remaining | 6 | |
Eliminations and other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 21 | |
Eliminations and other [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 21 | |
Restructuring and Related Cost, Expected Cost | 21 | |
Restructuring And Related Cost Expected Remaining | 0 | |
Eliminations and other [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 0 | $ 5 |
Restructuring and Related Cost, Expected Cost | 5 | |
Restructuring And Related Cost Expected Remaining | 0 | |
Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 185 | |
Cost of Sales [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 148 | |
Cost of Sales [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 43 | |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 211 | |
Selling, General and Administrative Expenses [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | 178 | |
Selling, General and Administrative Expenses [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs recorded within continuing operations | $ 30 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Four Quarter Rolling Average Of Notional Amount Of Foreign Exchange Contracts Hedging Foreign Currency Transactions | $ 15,600 | $ 13,900 | |
Gain on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 63 | $ 53 | |
Notes 1.250% due 2023 [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Debt Instrument, Issuance Date | May 22, 2015 | May 22, 2015 | |
Proceeds from Issuance of Debt | € | € 750 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Asset Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as hedging instruments - assets | $ 4 | $ 3 |
Derivatives not designated as hedging instruments - assets | 97 | 139 |
Liability Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as hedging instruments - liabilities | 428 | 248 |
Derivatives not designated as hedging instruments - liabilities | $ 105 | $ 71 |
Financial Instruments (Impact f
Financial Instruments (Impact from Foreign Exchange Derivative Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Loss recorded in Accumulated other comprehensive loss | $ (415) | $ (263) |
Loss reclassified from Accumulated other comprehensive loss into Product sales (effective portion) | 234 | $ 96 |
Foreign Currency Cash Flow Hedge Loss to be Reclassified During Next 12 Months | $ 225 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 951 | $ 961 |
Derivative Assets | 101 | 142 |
Derivative liabilities | 533 | 319 |
Business Dispositions | 3 | |
Gain (Loss) on Disposition of Business | 23 | |
Recurring fair value measurements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 951 | 961 |
Derivative Assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring fair value measurements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Derivative Assets | 101 | 142 |
Derivative liabilities | 533 | 319 |
Recurring fair value measurements | Level 3 | ||
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 |
Nonrecurring fair value measurements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Dispositions | 0 | |
Nonrecurring fair value measurements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Dispositions | 3 | |
Nonrecurring fair value measurements | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Dispositions | 0 | |
Pratt and Whitney [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) on Disposition of Business | 48 | |
UTC Climate, Controls and Security [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) on Disposition of Business | 126 | 30 |
UTC Aerospace Systems [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Method Investment, Other than Temporary Impairment | $ 61 | |
Sikorsky [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) on Disposition of Business | $ 28 |
Fair Value Measurements (Fair97
Fair Value Measurements (Fair Value Techniques) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | $ 224 | $ 214 |
Customer Financing Notes Receivable | 403 | 262 |
Short-Term Borrowings | 926 | 126 |
Long-term debt (excluding capitalized leases) | 19,476 | 19,623 |
Long-term liabilities | 458 | 80 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 209 | 204 |
Customer Financing Notes Receivable | 403 | 260 |
Short-Term Borrowings | 926 | 126 |
Long-term debt (excluding capitalized leases) | 21,198 | 22,244 |
Long-term liabilities | 419 | $ 74 |
Level 1 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [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 | |
Level 2 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 209 | |
Customer Financing Notes Receivable | 403 | |
Short-Term Borrowings | 727 | |
Long-term debt (excluding capitalized leases) | 20,845 | |
Long-term liabilities | 419 | |
Level 3 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 0 | |
Customer Financing Notes Receivable | 0 | |
Short-Term Borrowings | 199 | |
Long-term debt (excluding capitalized leases) | 353 | |
Long-term liabilities | $ 0 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Guarantee Obligations [Line Items] | ||
Environmental, health and safety, tax employment matters | $ 171 | $ 186 |
Balance as of January 1 | 1,264 | 1,324 |
Warranties and performance guarantees issued | 291 | 302 |
Settlements made | 259 | 322 |
Other | (84) | (40) |
Balance as of December 31 | 1,212 | 1,264 |
Credit Facilities And Debt Obligations Unconsolidated Subsidiaries (expire 2015 to 2034) | ||
Guarantee Obligations [Line Items] | ||
Maximum Potential Payment | 241 | 211 |
Carrying Amount of Liability | 0 | 15 |
Commercial aerospace financing arrangements (see Note 5) | ||
Guarantee Obligations [Line Items] | ||
Maximum Potential Payment | 365 | 411 |
Carrying Amount of Liability | 12 | 18 |
Performance Guarantee | ||
Guarantee Obligations [Line Items] | ||
Maximum Potential Payment | 55 | 136 |
Carrying Amount of Liability | $ 3 | $ 0 |
Contingent Liabilities (Details
Contingent Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases Future Minimum Payments Due | $ 2,183 | ||
Operating Leases Future Minimum Payments Due Current | 529 | ||
Operating Leases Future Minimum Payments Due In Two Years | 391 | ||
Operating Leases Future Minimum Payments Due In Three Years | 285 | ||
Operating Leases Future Minimum Payments Due In Four Years | 207 | ||
Operating Leases Future Minimum Payments Due In Five Years | 133 | ||
Operating Leases Future Minimum Payments Due Thereafter | 638 | ||
Rent Expense | 386 | $ 434 | $ 429 |
Accrual For Environmental Loss Contingencies | $ 837 | $ 863 | |
Department of Justice Lawsuit Against Pratt and Whitney [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Lawsuit Filing Date | 1,999 | ||
Loss Contingency, Damages Sought, Value | $ 624 | ||
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 (District Court), 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 Period Of Occurrence | fiscal years 1985 through 1990 | ||
Loss Contingency Damages Awarded Value ,Not Including Interest | $ 473 | ||
Loss Contingency, Settlement Agreement, Date | 6/17/2013 | ||
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 $7,090,000, 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 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 District Court to decide in the first instance whether the government should have another opportunity to prove that it suffered any actual damages. | ||
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) the civil penalty 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 Awarded, Value | $ 664 | ||
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. | ||
German Tax Office Against Otis [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Lawsuit Filing Date | 8/3/2012 | ||
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 $235 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 $129 million). | ||
Loss Contingency Damages Sought | €215 million (approximately $235 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, Interest | €118 million (approximately $129 million) | ||
Loss Contingency, Management's Assessment and Process | While we continue to litigate the matter at the local German Tax Court, UTC made tax and interest payments to German tax authorities of €275 million (approximately $300 million) through December 31, 2015 to avoid additional interest accruals pending final resolution of this matter. | ||
U.S. Defense Contract Management Claim against Pratt & Whitney | |||
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 | $ 211,000,000 | ||
Loss Contingency Actions Taken By Defendant | On March 18, 2014, Pratt & Whitney filed an appeal to the Armed Services Board of Contract Appeals. Pratt & Whitney’s appeal is still pending and we continue to believe the government’s claim is without merit. | ||
Asbestos Matter [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Allegations | During the fourth quarter of 2015, we recorded a liability for the contingencies associated with pending and unasserted future asbestos claims because the aggregate amounts involved are now reasonably estimable due to the definitization of the insurance coverage for existing and potential future asbestos claims through the negotiation and establishment of settlement agreements during 2015 as well as the stabilization of company and industry experience. Over the past few years, we have been engaged in disputes with insurance carriers, particularly those having issued excess general liability insurance from the mid-1950s through the mid-1980s, regarding the extent of coverage available for asbestos-related personal injury claims. We commenced two separate insurance coverage litigations against excess insurers - one lawsuit in Ohio on behalf of Goodrich Corporation and the other in New York on behalf of Carrier Corporation. The level of activity in the insurance coverage lawsuits increased significantly in 2015, causing us to intensify our on-going review of our history and experience with asbestos-related claims. | ||
Loss Contingency, Management's Assessment and Process | In particular, we have been working extensively with outside counsel and actuarial experts to calculate past asbestos-related losses in order to demonstrate exhaustion of primary layers of insurance and prove past damages, as well as to show that future asbestos-related losses would likely trigger excess insurance policies. We recently reached binding settlement agreements with all of the Goodrich excess insurers, and reached a settlement with the largest block of available solvent excess insurance coverage issued to Carrier Corporation. As a result of these settlements in the coverage litigations, pursuant to each of which we will annually absorb uninsured asbestos claims costs, and with the assistance of an outside actuarial expert, we are now able to make a reasonable estimate of the probable range of the total liability for pending and unasserted future asbestos related claims. This determination was based not only on our analysis of our own asbestos claims history for the last five years and our contractual insurance coverage litigations, but also on broader nationwide asbestos trend data, including: a substantial drop in non-malignant asbestos claims; an increasing focus on malignancy claims, primarily those involving mesothelioma, a cancer that now has an historical and fairly predictable future annual incidence rate; and a substantial decrease in average annual claim filings. We have estimated and recorded our total liability to resolve all pending and unasserted potential future claims through 2059 to be $376 million. This amount is on a pre-tax basis, not discounted, and excludes the Company’s defense fees (which will continue to be expensed by the Company as they are incurred). In addition, during the fourth quarter of 2015 the Company recorded a $106 million insurance recovery receivable for probable asbestos related recoveries. In calculating this amount, the Company used the estimated asbestos liability for pending and projected future claims and considered the amount of insurance available, allocation methodologies, solvency ratings, creditworthiness, and the contractual terms with each insurer. As a result, we recorded a noncash pretax charge to earnings of $237 million in the fourth quarter of 2015. | ||
Insurance Settlements Receivable | $ 106 | ||
Liabilities Subject to Compromise, Asbestos Obligations | $ 237 |
Segment Financial Data (By Segm
Segment Financial Data (By Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | $ 7,291 | $ 9,593 | $ 8,549 | ||||||||
Total Assets | $ 87,484 | $ 91,206 | 87,484 | 91,206 | |||||||
Assets excluding Assets Held for Sale | 86,338 | 86,338 | 85,029 | ||||||||
Capital Expenditures | 1,652 | 1,594 | 1,569 | ||||||||
Depreciation & Amortization | 1,863 | 1,820 | 1,735 | ||||||||
Major Customers, U.S. Government Sales | 5,630 | 5,879 | 6,342 | ||||||||
Net Sales | 14,300 | $ 13,788 | $ 14,690 | $ 13,320 | 14,980 | $ 14,613 | $ 14,868 | $ 13,439 | 56,098 | 57,900 | 56,600 |
Major Customers, Airbus Sales | $ 7,624 | 7,757 | 6,171 | ||||||||
Sikorsky [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Disposal Date | Nov. 6, 2015 | ||||||||||
Major Customers, U.S. Government Sales | $ 3,100 | 3,800 | 3,600 | ||||||||
UTC Aerospace Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 1,888 | 2,355 | 2,018 | ||||||||
Total Assets | 34,736 | 35,034 | 34,736 | 35,034 | 35,461 | ||||||
Capital Expenditures | 537 | 533 | 510 | ||||||||
Depreciation & Amortization | 796 | 807 | 761 | ||||||||
Major Customers, U.S. Government Sales | 2,409 | 2,459 | 2,530 | ||||||||
Net Sales | 14,094 | 14,215 | 13,347 | ||||||||
Total Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 8,023 | 9,777 | 9,074 | ||||||||
Total Assets | 85,205 | 83,707 | 85,205 | 83,707 | 83,420 | ||||||
Capital Expenditures | 1,573 | 1,540 | 1,515 | ||||||||
Depreciation & Amortization | 1,785 | 1,755 | 1,669 | ||||||||
Net Sales | 56,863 | 58,528 | 57,141 | ||||||||
Eliminations and other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | (268) | 304 | (44) | ||||||||
Total Assets | 2,279 | 2,631 | 2,279 | 2,631 | 1,609 | ||||||
Capital Expenditures | 79 | 54 | 54 | ||||||||
Depreciation & Amortization | 78 | 65 | 66 | ||||||||
Net Sales | (765) | (628) | (541) | ||||||||
General corporate expenses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | (464) | (488) | (481) | ||||||||
Net Sales | 0 | 0 | 0 | ||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Major Customers, U.S. Government Sales | 276 | 294 | 253 | ||||||||
Otis [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 2,338 | 2,640 | 2,590 | ||||||||
Total Assets | 8,846 | 9,313 | 8,846 | 9,313 | 9,354 | ||||||
Capital Expenditures | 83 | 87 | 122 | ||||||||
Depreciation & Amortization | 176 | 209 | 209 | ||||||||
Net Sales | 11,980 | 12,982 | 12,484 | ||||||||
UTC Climate, Controls and Security [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 2,936 | 2,782 | 2,590 | ||||||||
Total Assets | 21,287 | 21,217 | 21,287 | 21,217 | 21,543 | ||||||
Capital Expenditures | 261 | 228 | 266 | ||||||||
Depreciation & Amortization | 337 | 349 | 380 | ||||||||
Net Sales | 16,707 | 16,823 | 16,809 | ||||||||
Pratt and Whitney [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 861 | 2,000 | 1,876 | ||||||||
Total Assets | $ 20,336 | $ 18,143 | 20,336 | 18,143 | 17,062 | ||||||
Capital Expenditures | 692 | 692 | 617 | ||||||||
Depreciation & Amortization | 476 | 390 | 319 | ||||||||
Major Customers, U.S. Government Sales | 2,945 | 3,126 | 3,559 | ||||||||
Net Sales | $ 14,082 | $ 14,508 | $ 14,501 |
Segment Financial Data (By Geog
Segment Financial Data (By Geographic Region) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
External Net Sales by Geography | 56,098 | 57,900 | 56,600 |
United States Export Sales | $ 9,741 | $ 10,276 | $ 10,459 |
Operating profit by Geography | $ 7,291 | $ 9,593 | $ 8,549 |
Long-Lived Assets by Geography | 8,732 | 8,592 | 8,198 |
United States Operations | |||
External Net Sales by Geography | 30,989 | 30,814 | 29,901 |
Operating profit by Geography | $ 4,391 | $ 5,067 | $ 4,272 |
Long-Lived Assets by Geography | 4,517 | 4,211 | 3,918 |
Europe [Member] | |||
External Net Sales by Geography | 10,945 | 12,587 | 12,589 |
United States Export Sales | $ 4,366 | $ 4,137 | $ 3,931 |
Operating profit by Geography | $ 1,882 | $ 2,238 | $ 2,333 |
Long-Lived Assets by Geography | 1,525 | 1,577 | 1,715 |
Asia Pacific [Member] | |||
External Net Sales by Geography | 8,425 | 8,746 | 8,626 |
United States Export Sales | $ 2,902 | $ 3,469 | $ 3,963 |
Operating profit by Geography | $ 1,641 | $ 1,712 | $ 1,770 |
Long-Lived Assets by Geography | 994 | 995 | 939 |
Other | |||
External Net Sales by Geography | 5,584 | 5,511 | 5,269 |
United States Export Sales | $ 2,473 | $ 2,670 | $ 2,565 |
Operating profit by Geography | $ 109 | $ 760 | $ 699 |
Long-Lived Assets by Geography | 1,273 | 1,379 | 1,199 |
Eliminations and other | |||
External Net Sales by Geography | 155 | 242 | 215 |
Operating profit by Geography | $ (732) | $ (184) | $ (525) |
Long-Lived Assets by Geography | 423 | 430 | 427 |
Selected Quarterly Financial102
Selected Quarterly Financial Data - Unaudited (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Sep. 30, 2014USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Mar. 31, 2014USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares | Jan. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | ||||||||||||
Net Sales | $ | $ 14,300 | $ 13,788 | $ 14,690 | $ 13,320 | $ 14,980 | $ 14,613 | $ 14,868 | $ 13,439 | $ 56,098 | $ 57,900 | $ 56,600 | |
Gross margin | $ | 3,647 | 3,988 | 4,218 | 3,814 | 4,249 | 4,448 | 4,448 | 3,857 | ||||
Net income attributable to common shareowners | $ | $ 3,278 | $ 1,362 | $ 1,542 | $ 1,426 | $ 1,473 | $ 1,854 | $ 1,680 | $ 1,213 | $ 7,608 | $ 6,220 | $ 5,721 | |
Earnings Per Share of Common Stock - Basic and Diluted: | ||||||||||||
Basic - net income | $ 3.86 | $ 1.55 | $ 1.76 | $ 1.60 | $ 1.64 | $ 2.07 | $ 1.87 | $ 1.35 | $ 8.72 | $ 6.92 | $ 6.35 | |
Diluted - net income | 3.86 | 1.54 | 1.73 | 1.58 | 1.62 | 2.04 | 1.84 | 1.32 | 8.61 | 6.82 | 6.25 | |
Common Stock Price - High | 100.80 | 111.58 | 119.14 | 124.11 | 117.24 | 115.93 | 120.09 | 118.31 | ||||
Common Stock Price - Low | 88.36 | 86.82 | 110.93 | 111.52 | 99.17 | 103.79 | 113.10 | 107.91 | ||||
Dividend | $ 0.640 | $ 0.640 | $ 0.640 | $ 0.640 | $ 0.590 | $ 0.590 | $ 0.590 | $ 0.590 | $ 2.560 | $ 2.360 | $ 2.195 | |
Registered Shareholders Total | 20,097 |
Performance Graph - Unaudite103
Performance Graph - Unaudited (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
United Technologies Corporation | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | $ 155.18 | $ 137.06 | $ 160.13 | $ 109.38 | $ 95.03 | $ 100 |
S&P 500 Index | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | 156.82 | 180.75 | 178.29 | 118.45 | 102.11 | 100 |
Dow Jones Industrial Average | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | $ 154.91 | $ 170.83 | $ 170.46 | $ 119.48 | $ 108.38 | $ 100 |