Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
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 | $ 85,789,321,218 | ||
Entity Common Stock, Shares Outstanding | 805,861,740 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Sales: | |||
Product sales | $ 40,735 | $ 39,801 | $ 41,545 |
Service sales | 16,509 | 16,297 | 16,355 |
Net Sales | 57,244 | 56,098 | 57,900 |
Costs and Expenses: | |||
Cost of products sold | 30,325 | 29,771 | 30,367 |
Cost of services sold | 11,135 | 10,660 | 10,531 |
Research and development | 2,337 | 2,279 | 2,475 |
Selling, general and administrative | 6,060 | 5,886 | 6,172 |
Total costs and expenses | 49,857 | 48,596 | 49,545 |
Other Income | 785 | 1,238 | |
Other Expenses | 211 | ||
Operating profit | 8,172 | 7,291 | 9,593 |
Interest Expense, net | 1,039 | 824 | 881 |
Income from continuing operations before income taxes | 7,133 | 6,467 | 8,712 |
Income tax expense | 1,697 | 2,111 | 2,244 |
Net income from continuing operations | 5,436 | 4,356 | 6,468 |
Less: Noncontrolling interest in subsidiaries' earnings from continuing operations | 371 | 360 | 402 |
Income from continuing operations attributable to common shareowners | 5,065 | 3,996 | 6,066 |
Discontinued operations (Note 3): | |||
Income from operations | 1 | 252 | 175 |
Gain on disposal | 13 | 6,042 | 0 |
Income tax expense | 24 | 2,684 | 20 |
Net (loss) income from discontinued operations | (10) | 3,610 | 155 |
Less: Noncontrolling interest in subsidiaries' earnings (loss) from discontinued operations | 0 | (2) | 1 |
(Loss) Income from discontinued operations attributable to common shareowners | (10) | 3,612 | 154 |
Net income attributable to common shareowners | $ 5,055 | $ 7,608 | $ 6,220 |
Earnings Per Share of Common Stock - Basic: | |||
Net income from continuing operations attributable to common shareowners | $ 6.19 | $ 4.58 | $ 6.75 |
Net income attributable to common shareowners | 6.18 | 8.72 | 6.92 |
Earnings Per Share of Common Stock - Diluted: | |||
Net income from continuing operations attributable to common shareowners | 6.13 | 4.53 | 6.65 |
Net income attributable to common shareowners | 6.12 | 8.61 | 6.82 |
Dividends Per Share of Common Stock | $ 2.62 | $ 2.56 | $ 2.36 |
Weighted average number of shares outstanding: | |||
Basic shares | 818,200,000 | 872,700,000 | 898,300,000 |
Diluted shares | 826,100,000 | 883,200,000 | 911,600,000 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income from continuing operations | $ 5,436 | $ 4,356 | $ 6,468 |
Net (loss) income from discontinued operations | (10) | 3,610 | 155 |
Net income | 5,426 | 7,966 | 6,623 |
Foreign currency translation adjustments | |||
Foreign currency translation adjustments arising during period | (1,089) | (1,502) | (1,302) |
Reclassification adjustments for from sale of an investment in a foreign entity recognized in net income | 0 | (42) | (7) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (1,089) | (1,460) | (1,295) |
Change in pension and post-retirement benefit plans | |||
Net actuarial loss arising during period | (785) | (284) | (4,362) |
Prior service cost arising during period | 13 | 37 | 5 |
Other | 542 | 326 | 121 |
Amounts reclassified, pretax - Pension | 535 | 867 | 416 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, Portion Attributable to Parent | (279) | (872) | 3,830 |
Tax (expense) benefit | (189) | (298) | 1,388 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | (90) | (574) | 2,442 |
Unrealized gain (loss) on available-for-sale securities | |||
Unrealized holding gain arising during period | 190 | 28 | 35 |
Reclassification adjustments for gain included in Other income, net | 94 | 54 | 20 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | 96 | (26) | 15 |
Tax (expense) benefit | 36 | (11) | 3 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | 60 | (15) | 12 |
Change in unrealized cash flow hedging | |||
Unrealized cash flow hedging gain (loss) arising during period | 75 | (415) | (263) |
Loss reclassified into Product sales | (171) | (234) | (96) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Portion Attributable to Parent | 246 | (181) | (167) |
Tax (expense) benefit | 69 | (51) | (37) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | 177 | (130) | (130) |
Other comprehensive loss, net of tax | (762) | (1,031) | (3,855) |
Comprehensive income | 4,664 | 6,935 | 2,768 |
Less: Comprehensive income attributable to noncontrolling interest | 324 | 285 | 329 |
Comprehensive income atrributable to common shareowners | $ 4,340 | $ 6,650 | $ 2,439 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 7,157 | $ 7,075 |
Accounts receivable (net of allowance for doubtful accounts of $450 and $504) | 11,481 | 10,653 |
Inventories and contracts in progress, net | 8,704 | 8,135 |
Other assets, current | 1,208 | 843 |
Total Current Assets | 28,550 | 26,706 |
Customer financing assets | 1,398 | 1,018 |
Future income tax benefits | 1,809 | 1,961 |
Fixed assets, net | 9,158 | 8,732 |
Goodwill | 27,059 | 27,301 |
Intangible assets, net | 15,684 | 15,603 |
Other assets | 6,048 | 6,163 |
Total Assets | 89,706 | 87,484 |
Liabilities and Equity | ||
Short-term borrowings | 601 | 926 |
Accounts payable | 7,483 | 6,875 |
Accrued liabilities | 12,219 | 14,638 |
Long-term debt currently due | 1,603 | 179 |
Total Current Liabilities | 21,906 | 22,618 |
Long-term debt | 21,697 | 19,320 |
Future pension and postretirement benefit obligations | 5,612 | 6,022 |
Other long-term liabilities | 11,026 | 10,558 |
Total Liabilities | 60,241 | 58,518 |
Commitments and contingent liabilities (Notes 5 and 18) | ||
Redeemable noncontrolling interest | 296 | 122 |
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; 1,440,982 and 1,438,497 shares issued | 17,285 | 16,033 |
Treasury Stock— 632,281 and 600,153 common shares at average cost | 34,150 | 30,907 |
Retained earnings | 52,873 | 49,956 |
Unearned ESOP shares | 95 | 105 |
Total Accumulated other comprehensive loss | (8,334) | (7,619) |
Total Shareowners' Equity | 27,579 | 27,358 |
Noncontrolling interest | 1,590 | 1,486 |
Total Equity | 29,169 | 28,844 |
Total Liabilities and Equity | $ 89,706 | $ 87,484 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 450 | $ 504 |
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 | 1,440,982 | 1,438,497 |
Treasury Stock, shares | 632,281 | 600,153 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities of Continuing Operations: | |||
Income from continuing operations | $ 5,436 | $ 4,356 | $ 6,468 |
Adjustments to reconcile income from continuing operations to net cash flows provided by operating activities of continuing operations: | |||
Depreciation and amortization | 1,962 | 1,863 | 1,820 |
Deferred income tax provision | 398 | 662 | 403 |
Stock compensation cost | 152 | 158 | 219 |
Canadian Government Settlement | (237) | 867 | 0 |
Change in: | |||
Accounts receivable | 941 | 438 | (111) |
Inventories and contracts in progress | 719 | 766 | 636 |
Other current assets | (49) | 55 | 115 |
Accounts payable and accrued liabilities | 450 | 490 | (89) |
Global pension contributions | 303 | 147 | 517 |
Other operating activities, net | (165) | 235 | 685 |
Net Cash Provided by Operating Activities, Continuing Operations | 6,412 | 6,755 | 6,979 |
Investing Activities of Continuing Operations: | |||
Capital expenditures | 1,699 | 1,652 | 1,594 |
Increase in customer financing assets | 438 | 364 | 202 |
Decrease in customer financing assets | 217 | 117 | 331 |
Investments in businesses | 710 | 538 | 402 |
Dispositions of businesses | 211 | 200 | 344 |
Increase in collaboration intangible assets | 388 | 437 | 593 |
Receipts from settlements of derivative contracts | (249) | (160) | (93) |
Other investing activities, net | (49) | 280 | (56) |
Net cash flows used in investing activities of continuing operations | (2,509) | (2,794) | (1,967) |
Financing Activities of Continuing Operations: | |||
Issuance of long-term debt | 6,469 | 1,744 | 98 |
Repayment of long-term debt | 2,452 | 1,764 | 304 |
(Decrease) increase in short-term borrowings, net | (331) | 795 | (346) |
Proceeds from Issuance of Common Stock - Equity unit settlement | 0 | 1,100 | 0 |
Common Stock issued under employee stock plans | 13 | 41 | 187 |
Dividends paid on Common Stock | 2,069 | 2,184 | 2,048 |
Repurchase of Common Stock | 2,254 | 10,000 | 1,500 |
Other financing activities, net | (564) | (508) | (336) |
Net cash flows used in financing activities of continuing operations | (1,188) | (10,776) | (4,249) |
Discontinued Operations: | |||
Net cash (used in) provided by operating activities | (2,532) | (372) | 342 |
Net cash provided by investing activities | 6 | 9,000 | (113) |
Cash used in financing activities, discontinued operations | 0 | (9) | (12) |
Net cash flows (used in) provided by discontinued operations | (2,526) | 8,619 | 217 |
Effect of foreign exchange rate changes on cash and cash equivalents | (120) | (174) | (156) |
Net increase (decrease) in cash and cash equivalents | 69 | 1,630 | 824 |
Cash and Cash Equivalents, beginning of period | 7,120 | 5,490 | 4,666 |
Cash and Cash Equivalents, end of period | 7,189 | 7,120 | 5,490 |
Less: Cash and cash equivalents of businesses held for sale | 0 | 0 | 6 |
Less: Restricted cash, included in Other assets | 32 | 45 | 255 |
Cash and cash equivalents of continuing operations, end of year | 7,157 | 7,075 | 5,229 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid, net of amounts capitalized | 1,157 | 1,057 | 1,076 |
Income taxes paid, net of refunds | 4,096 | 2,060 | 2,024 |
Contributions of UTC Common Stock to domestic defined benefit pension plans | $ 0 | $ 250 | $ 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 | AOCI Including Portion Attributable to Noncontrolling Interest [Member] | Redeemable Noncontrolling Interest [Member] |
Increase (Decrease) In Equity [Roll Forward] | |||||||||
Shareowners' Equity | $ 14,764 | $ (20,431) | $ 40,539 | $ (126) | $ (2,880) | ||||
Noncontrolling interest | $ 1,353 | ||||||||
Total Equity | $ 33,219 | ||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Redeemable Noncontrolling Interest | $ 111 | ||||||||
Net Income - Retained Earnings | 6,220 | 6,220 | |||||||
Net Income - NCI | (403) | ||||||||
Net income | 6,623 | ||||||||
Other comprehensive income (loss), net of tax - AOCI | (3,781) | ||||||||
Other comprehensive income (loss), net of tax - NCI | 67 | (7) | |||||||
Other comprehensive income (loss), net of tax | (3,855) | $ (3,848) | |||||||
Common Stock issued under employee plans | 598 | 607 | 9 | (29) | |||||
Common Stock issued under employee plans - ESOP | 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 | |||||||
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) | |||||||
Redeemable noncontrolling interest in subsidiaries' earning | 9 | 9 | (9) | ||||||
Dividends attributable to noncontrolling interest - RNCI | (3) | ||||||||
Other - RNCI | 14 | ||||||||
Shareowners' Equity | 15,300 | (21,922) | 44,611 | (115) | (6,661) | ||||
Noncontrolling interest | 1,351 | ||||||||
Total Equity | 32,564 | ||||||||
Redeemable Noncontrolling Interest | 140 | ||||||||
Net Income - Retained Earnings | 7,608 | 7,608 | |||||||
Net Income - NCI | (358) | ||||||||
Net income | 7,966 | ||||||||
Other comprehensive income (loss), net of tax - AOCI | (958) | ||||||||
Other comprehensive income (loss), net of tax - NCI | 61 | 12 | |||||||
Other comprehensive income (loss), net of tax | (1,031) | (1,019) | |||||||
Common Stock issued - equity unit settlement | 1,100 | ||||||||
Common Stock issued under employee plans | 394 | 379 | 7 | (2) | |||||
Common Stock issued under employee plans - ESOP | 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 | |||||||
Purchase of subsidiary shares from noncontrolling interest | 17 | 12 | 5 | ||||||
Sale of subsidiary shares in noncontrolling interest | 39 | 24 | 15 | ||||||
Acquisition of noncontrolling interest | 173 | 173 | |||||||
Disposition of noncontrolling interest | 4 | 4 | |||||||
Redeemable noncontrolling interest fair value adjustment | (2) | (2) | |||||||
Redeemable noncontrolling interest in subsidiaries' earning | 4 | 4 | (4) | ||||||
Dividends attributable to noncontrolling interest - RNCI | 3 | ||||||||
Purchase of subsidiary shares from noncontrolling interest - RNCI | 9 | ||||||||
Redeemable noncontrolling interest fair value adjustment - RNCI | 2 | ||||||||
Shareowners' Equity | 27,358 | 16,033 | (30,907) | 49,956 | (105) | (7,619) | |||
Noncontrolling interest | 1,486 | 1,486 | |||||||
Total Equity | 28,844 | ||||||||
Redeemable Noncontrolling Interest | 122 | ||||||||
Net Income - Retained Earnings | 5,055 | 5,055 | |||||||
Net Income - NCI | (371) | ||||||||
Net income | 5,426 | ||||||||
Other comprehensive income (loss), net of tax - AOCI | (715) | ||||||||
Other comprehensive income (loss), net of tax - NCI | 27 | 20 | |||||||
Other comprehensive income (loss), net of tax | (762) | $ (742) | |||||||
Common Stock issued under employee plans | 281 | 262 | 9 | ||||||
Common Stock issued under employee plans - ESOP | 10 | ||||||||
Common Stock repurchased | 2,254 | (998) | 3,252 | ||||||
Dividends on Common Stock | 2,069 | 2,069 | |||||||
Dividends on ESOP Common Stock | 74 | 74 | |||||||
Dividends attributable to noncontrolling interest | 345 | 345 | |||||||
Purchase of subsidiary shares from noncontrolling interest | 9 | 8 | 1 | ||||||
Sale of subsidiary shares in noncontrolling interest | 25 | 25 | |||||||
Acquisition of noncontrolling interest | 98 | 98 | |||||||
Redeemable noncontrolling interest fair value adjustment | (1) | (1) | |||||||
Redeemable noncontrolling interest reclassification to noncontrolling interest | (12) | (12) | 12 | ||||||
Other | (7) | 6 | (1) | ||||||
Redeemable noncontrolling interest in subsidiaries' earning | 6 | 6 | (6) | ||||||
Dividends attributable to noncontrolling interest - RNCI | (2) | ||||||||
Purchase of subsidiary shares from noncontrolling interest - RNCI | 4 | ||||||||
Acquisition of noncontrolling interest - RNCI | 189 | ||||||||
Redeemable noncontrolling interest fair value adjustment - RNCI | 1 | ||||||||
Other - RNCI | (8) | ||||||||
Shareowners' Equity | 27,579 | $ 17,285 | $ (34,150) | $ 52,873 | $ (95) | $ (8,334) | |||
Noncontrolling interest | 1,590 | $ 1,590 | |||||||
Total Equity | $ 29,169 | ||||||||
Redeemable Noncontrolling Interest | $ 296 |
Consolidated Statement of Chan8
Consolidated Statement of Changes in Equity (Parenthetical) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock issued under employee plans, shares | 2.5 | 3.7 | 6.2 |
Tax benefit from Common Stock issued under employee plans | $ 64 | $ 103 | |
Common Stock repurchased, shares | 32.3 | 88.7 | 13.5 |
Stock Issued During Period, Shares, Other | 11.3 | ||
Stock Issued During Period, Shares, Employee Benefit Plan | 2.7 |
Summary of Accounting Principle
Summary of Accounting Principles | 12 Months Ended |
Dec. 31, 2016 | |
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. 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, 2016 and 2015 , the amount of such restricted cash was approximately $32 million and $45 million , respectively. Accounts Receivable. Current and long-term accounts receivable as of December 31, 2016 include retainage of $106 million and unbilled receivables of $2,786 million , which includes approximately $1,169 million of unbilled receivables under commercial aerospace long-term aftermarket contracts. 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. 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. In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 328): Measurement of Credit Losses on Financial Instruments . This ASU requires that certain financial assets, including those measured at amortized cost basis, be presented at the net amount expected to be collected, utilizing an impairment model known as the current expected credit loss model. In addition, available-for-sale debt securities will no longer use the concept of "other than temporary" when considering credit losses. Under this ASU, entities must use an allowance approach for credit losses on available-for-sale debt securities, and the allowance must be limited to the amount at which a security's fair value is below the amortized cost of the asset. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this ASU. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . This ASU modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Upon adoption, investments that do not result in consolidation and are not accounted for under the equity method generally must be carried at fair value, with changes in fair value recognized in net income. As discussed in Note 10, we have approximately $353 million of unrealized gains on these securities recorded in Accumulated other comprehensive loss in our Consolidated Balance Sheet as of December 31, 2016. To the extent currently unrealized gains or losses on these investments are not realized through sale or other actions prior to the date of adoption, these amounts would be recorded directly to retained earnings upon adoption. The provisions of this ASU are effective for years beginning after December 15, 2017. 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 $114 million and $127 million at December 31, 2016 and 2015 , 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. Within commercial aerospace, inventory costs attributable to new engine offerings are recognized based on the average cost per unit expected over the life of each contract using the units-of-delivery method of percentage of completion accounting. Under this method, costs of initial engine deliveries in excess of the projected contract per unit average cost are capitalized, and these capitalized amounts are subsequently expensed as additional engine deliveries occur for engines with costs below the projected contract per unit average cost over the life of the contract. 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, 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. We classify amortization of such payments as a reduction of sales. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. 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 50 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, 2016 and 2015 : (dollars in millions) 2016 2015 Long-term trade accounts receivable $ 926 $ 903 Notes and leases receivable 430 451 Total long-term receivables $ 1,356 $ 1,354 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 customers with an extremely strong capacity to meet financial obligations, to customers whose uncollateralized receivable is in default. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to the allowance for credit losses on long-term receivables. Based upon the customer credit ratings, approximately 13% of our long-term receivables were considered to bear high credit risk as of both December 31, 2016 and 2015 . 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 $17 million and $18 million as of December 31, 2016 and 2015 , respectively, are individually evaluated for impairment. At both December 31, 2016 and 2015 , 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. 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 that 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 unfavorable changes in aerospace contract estimates of approximately $157 million in 2016 , primarily the result of unexpected increases in estimated costs related to Pratt & Whitney long term aftermarket contracts. 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. Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers . In 2015 and 2016, the FASB issued various updates to this ASU as follows: • ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date - delays the effective date of ASU 2014-09 by one year. • ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) - clarifies how an entity should identify the unit of accounting (i.e. the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. • ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing - clarifies the guidance surrounding licensing arrangements and the identification of performance obligations. • ASU 2016-12, Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients - addresses implementation issues raised by stakeholders concerning collectability, noncash consideration, presentation of sales tax, and transition. • ASU 2016-20, Revenue from Contracts with Customers (Topic 606), Technical Corrections and Improvements - addresses loan guarantee fees, impairment testing of contract costs, provisions for losses on certain contracts, and various disclosures. ASU 2014-09 and its related amendments (collectively, the New Revenue Standard) are 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 adopting recognized through retained earnings at the date of adoption. The New Revenue Standard is expected to change the revenue recognition practices for a number of revenue streams across our businesses, although the most significant impacts will be concentrated within our aerospace units. Several businesses, which currently account for revenue on a “point-in-time basis,” will be required to use an “over time” model as they meet one or more of the mandatory criteria established in the New Revenue Standard. Revenue will be recognized based on percentage-of-completion for repair contracts within both Otis and UTC Climate, Controls & Security; certain U.S. Government aerospace contracts; and aerospace aftermarket service work performed on a time and materials basis. For these businesses, unrecognized sales and operating profits related to the satisfied portion of the performance obligations of contracts in process as of the date of adoption will be recorded through retained earnings. The ongoing effect of recording revenue on a percentage-of-completion basis within these businesses is not expected to be material. In addition to the forgoing, our aerospace businesses will also incur changes related to the timing of manufacturing cost recognition and certain engineering and development costs. In most circumstances, our commercial aerospace businesses will identify the performance obligation, or the unit of accounting, as the individual original equipment (OEM) unit; revenues and costs to manufacture each unit will be recognized upon OEM unit delivery. Under current practice, the unit of accounting is the contract, and early-contract OEM unit costs in excess of the average expected over the contact are capitalized and amortized over lower-cost units later in the contract. With the adoption of the New Revenue Standard, any deferred unit costs in excess of the contract average will be eliminated through retained earnings and will not be amortized into future earnings. As of December 31, 2016 , capitalized deferred unit costs in excess of the contract average are $233 million , which is expected to increase in 2017 prior to adoption of the New Revenue Standard. In regards to costs incurred for the engineering and development of aerospace products under contract with customers, we generally expense as incurred unless there is a contractually guaranteed right of recovery. Any customer funding received for such efforts is recognized when earned, with the corresponding costs recognized as cost of sales. Under the New Revenue Standard, customer funding of OEM product engineering and development must be deferred and recognized as revenue as the OEM products are delivered to the customer. There is currently less clarity regarding the accounting for the associated product engineering and development costs. As such, we are continuing to evaluate whether such costs should continue to be expensed or capitalized as contract fulfillment costs and subsequently amortized. For contracts that are open as of the adoption date, previously recognized customer funding will be established as a contract liability. We continue to evaluate the implications of the standard change. We intend to adopt the New Revenue Standard effective January 1, 2018 using the modified retrospective approach. 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, at December 31, 2016 we have approximately €2.95 billion of Euro-denominated long-term debt and €500 million of outstanding Euro-denominated commercial paper borrowings, which qualify 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 18 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. Product Performance Obligations. We extend |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 (Millions of Dollars) Allowances for Doubtful Accounts and Other Customer Financing Activity: 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 Provision charged to income 64 Doubtful accounts written off (net) (105 ) Other adjustments (45 ) Balance, December 31, 2016 $ 467 Future Income Tax Benefits—Valuation allowance: 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 Additions charged to income tax expense 32 Reductions credited to income tax expense (61 ) Other adjustments (17 ) Balance, December 31, 2016 $ 545 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, Disposit
Business Acquisitions, Dispositions, Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
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 approximately $9.1 billion in cash. Our investments in businesses in 2016 , 2015 and 2014 totaled $712 million (including debt assumed of $2 million ), $556 million (including debt assumed of $18 million ) and $530 million (including debt assumed of $128 million ), respectively. Our investments in businesses in 2016 consisted of the acquisition of a majority interest in an Italian heating products and services company by UTC Climate, Controls & Security, the acquisition of a Japanese services company by Otis and a number of small acquisitions, primarily in our commercial businesses. 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. Goodwill. The changes in the carrying amount of goodwill, by segment, in 2016 are as follows: (dollars in millions) Balance as of January 1, 2016 Goodwill resulting from business combinations Foreign currency translation and other Balance as of December 31, 2016 Otis $ 1,566 $ 60 $ (51 ) $ 1,575 UTC Climate, Controls & Security 9,458 473 (444 ) 9,487 Pratt & Whitney 1,515 — (4 ) 1,511 UTC Aerospace Systems 14,759 35 (311 ) 14,483 Total Segments 27,298 568 (810 ) 27,056 Eliminations and other 3 — — 3 Total $ 27,301 $ 568 $ (810 ) $ 27,059 Intangible Assets. Identifiable intangible assets are comprised of the following: 2016 2015 (dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Service portfolios $ 1,995 $ (1,344 ) $ 1,977 $ (1,307 ) Patents and trademarks 378 (201 ) 361 (189 ) Collaboration intangible assets 3,724 (211 ) 3,336 (86 ) Customer relationships and other 12,798 (3,480 ) 12,430 (2,988 ) 18,895 (5,236 ) 18,104 (4,570 ) Unamortized: Trademarks and other 2,025 — 2,069 — Total $ 20,920 $ (5,236 ) $ 20,173 $ (4,570 ) Customer relationship intangible assets include payments made to our customers to secure certain contractual rights. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. We amortize these intangible assets based on the underlying pattern of economic benefit, which typically results in an amortization method other than straight-line. We classify amortization of such payments as a reduction of sales. Amortization of intangible assets was $778 million , $722 million and $713 million in 2016 , 2015 and 2014 , respectively. The collaboration intangible assets are amortized based upon the economic pattern of benefits as represented by the underlying cash flows. The following is the expected amortization of intangible assets for 2017 through 2021, which reflects the pattern of economic benefit on certain aerospace intangible assets: (dollars in millions) 2017 2018 2019 2020 2021 Amortization expense $ 809 $ 865 $ 878 $ 859 $ 829 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
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 $9.1 billion in cash. Accordingly, the results of operations and the cash flows related to Sikorsky have been classified in Discontinued Operations in our Consolidated Statements of Operations, Comprehensive Income and Cash Flows for all periods presented. In 2016, we recognized approximately $13 million of additional gain on the disposal, primarily resulting from the settlement of working capital adjustments. In 2016, we recognized approximately $24 million of income tax expense, including the impacts related to filing Sikorsky's 2015 tax returns. Net cash outflows from discontinued operations of approximately $2.5 billion for the year ended December 31, 2016 were primarily due to the payment of taxes related to the 2015 gain realized on the sale of Sikorsky. The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations: Income (Expense) (dollars in millions) 2016 2015 2014 Discontinued Operations: Net Sales $ — $ 4,949 $ 7,452 Cost of Sales — (4,152 ) (6,801 ) Research and development — (150 ) (160 ) Selling, general and administrative 1 (315 ) (328 ) Pension curtailment — (110 ) — Other income, net — 30 12 Income from operations 1 252 175 Gain on disposal 13 6,042 — Income tax expense (24 ) (2,684 ) (20 ) (Loss) income from discontinued operations $ (10 ) $ 3,610 $ 155 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 and $235 million for the years ended December 31, 2015 and 2014, respectively. Purchases from Sikorsky included in cost of products and services sold were $25 million and $17 million for the years ended December 31, 2015 and 2014, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Text Block | EARNINGS PER SHARE (dollars in millions, except per share amounts; shares in millions) 2016 2015 2014 Net income attributable to common shareowners: Net income from continuing operations $ 5,065 $ 3,996 $ 6,066 Net (loss) income from discontinued operations (10 ) 3,612 154 Net income attributable to common shareowners $ 5,055 $ 7,608 $ 6,220 Basic weighted average number of shares outstanding 818.2 872.7 898.3 Stock awards 7.9 10.5 13.3 Diluted weighted average number of shares outstanding 826.1 883.2 911.6 Earnings Per Share of Common Stock—Basic: Net income from continuing operations $ 6.19 $ 4.58 $ 6.75 Net (loss) income from discontinued operations (0.01 ) 4.14 0.17 Net income attributable to common shareowners 6.18 8.72 6.92 Earnings Per Share of Common Stock—Diluted: Net income from continuing operations $ 6.13 $ 4.53 $ 6.65 Net (loss) income from discontinued operations (0.01 ) 4.09 0.17 Net income attributable to common shareowners 6.12 8.61 6.82 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 2016 , 2015 and 2014 , there were 14.5 million , 9.7 million and 3.5 million anti-dilutive stock awards excluded from the computation, respectively. |
Commercial Aerospace Industry A
Commercial Aerospace Industry Assets and Commitments | 12 Months Ended |
Dec. 31, 2016 | |
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 $7,222 million and $6,143 million at December 31, 2016 and 2015 , respectively. These include customer financing assets related to commercial aerospace industry customers, consisting of products under lease of $939 million and $537 million , and notes and leases receivable of $497 million and $566 million , at December 31, 2016 and 2015 , 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 products on new aircraft platforms, which are included in "Other commercial aerospace commitments" in the table below. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. Payments capitalized 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, 2016 were approximately $ 14.4 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, 2016 : (dollars in millions) Committed 2017 2018 2019 2020 2021 Thereafter Notes and leases receivable $ 497 $ 51 $ 24 $ 47 $ 79 $ 32 $ 264 Commercial aerospace financing commitments $ 2,358 $ 435 $ 521 $ 416 $ 354 $ 287 $ 345 Other commercial aerospace commitments 12,063 860 973 738 706 730 8,056 Collaboration partners' share (4,608 ) (386 ) (479 ) (322 ) (271 ) (250 ) (2,900 ) Total commercial commitments $ 9,813 $ 909 $ 1,015 $ 832 $ 789 $ 767 $ 5,501 In connection with our 2012 agreement to acquire Rolls-Royce's ownership and collaboration interests in IAE, additional payments are due to Rolls-Royce contingent upon each hour flown through June 2027 by the V2500-powered aircraft in service as of the acquisition date.These flight hour payments, included in "Other commercial aerospace commitments" in the table above, are being capitalized as collaboration intangible assets. 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 $348 million as of December 31, 2016 . 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 $1,169 million and $1,091 million at December 31, 2016 and 2015 , respectively, and are included in Accounts receivable and Other assets in the accompanying Consolidated Balance Sheet. Deferred revenues totaled $4,288 million and $3,502 million at December 31, 2016 and 2015 , respectively, and are included in Accrued liabilities and Other long-term liabilities in the accompanying Consolidated Balance Sheet. Reserves related to aerospace notes and leases receivable were $16 million and $17 million at December 31, 2016 and 2015 , respectively. Reserves related to aerospace receivables and other financing assets were $157 million and $200 million at December 31, 2016 and 2015 , respectively. Reserves related to financing commitments and guarantees were $36 million and $47 million at December 31, 2016 and 2015 , respectively. In addition, 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 $213 million and $193 million in 2016 and 2015 , respectively. Expected consumption of the contractual obligations is as follows: $251 million in 2017, $248 million in 2018, $222 million in 2019, $149 million in 2020, $83 million in 2021 and $250 million thereafter. |
Inventories and Contracts in Pr
Inventories and Contracts in Progress | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories and Contracts in Progress | INVENTORIES & CONTRACTS IN PROGRESS (dollars in millions) 2016 2015 Raw materials $ 2,040 $ 2,037 Work-in-process 2,787 2,422 Finished goods 3,305 3,183 Contracts in progress 9,395 8,668 17,527 16,310 Less: Progress payments, secured by lien, on U.S. Government contracts (130 ) (239 ) Billings on contracts in progress (8,693 ) (7,936 ) $ 8,704 $ 8,135 Raw materials, work-in-process and finished goods are net of valuation reserves of $877 million and $760 million as of December 31, 2016 and 2015 , 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. Inventories also include capitalized contract development costs related to certain aerospace programs at UTC Aerospace Systems. As of December 31, 2016 and 2015 , these capitalized costs were $140 million and $152 million , respectively, which are being liquidated as production units are delivered to the customer. In addition, within commercial aerospace, inventory costs attributable to new engine offerings are recognized based on the average cost per unit expected over the life of each contract using the units-of-delivery method of percentage of completion accounting. Under this method, costs of initial engine deliveries in excess of the projected contract per unit average cost are capitalized, and these capitalized amounts are subsequently expensed as additional engine deliveries occur for engines with costs below the projected contract per unit average cost over the life of the contract. As of December 31, 2016 and 2015 , inventories included $233 million and $13 million , respectively, of such capitalized amounts. Our sales contracts in many cases are long-term contracts expected to be performed over periods exceeding twelve months. At December 31, 2016 and 2015 , approximately 68% and 67% respectively, of total inventories and contracts in progress have been acquired or manufactured under such long-term contracts, with approximately 41% scheduled for delivery within the succeeding twelve months for both 2016 and 2015. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | FIXED ASSETS (dollars in millions) Estimated 2016 2015 Land $ 392 $ 384 Buildings and improvements 12-40 years 5,180 5,030 Machinery, tools and equipment 3-20 years 12,471 11,717 Other, including assets under construction 1,426 1,363 19,469 18,494 Accumulated depreciation (10,311 ) (9,762 ) $ 9,158 $ 8,732 Depreciation expense was $1,105 million in 2016 , $1,068 million in 2015 and $1,043 million in 2014 . |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES (dollars in millions) 2016 2015 Advances on sales contracts and service billings $ 4,217 $ 3,952 Accrued salaries, wages and employee benefits 1,608 1,543 Service and warranty accruals 555 546 Litigation and contract matters 488 482 Interest payable 395 391 Income taxes payable 382 2,498 Accrued property, sales and use taxes 289 292 Canadian government settlement - current portion 245 241 Insurance accruals 217 204 Accrued restructuring costs 210 334 Accrued workers compensation 208 212 Other 3,405 3,943 $ 12,219 $ 14,638 Income taxes payable as of December 31, 2015 includes taxes payable related to the gain on the sale of Sikorsky, which were substantially paid in 2016. The Canadian government has historically provided research and development support under certain Pratt & Whitney Canada programs, where 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 $245 million at December 2016) 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 2017, with the remaining provision of approximately $477 million and $626 million included in Other long-term liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2016 and 2015, respectively. |
Borrowings and Lines of Credit
Borrowings and Lines of Credit | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings and Lines of Credit | BORROWINGS AND LINES OF CREDIT (dollars in millions) 2016 2015 Short-term borrowings: Commercial paper $ 522 $ 727 Other borrowings 79 199 Total short-term borrowings $ 601 $ 926 At December 31, 2016 , 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 August 2021 . As of December 31, 2016 , 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, 2016 , our maximum commercial paper borrowing limit was $4.35 billion . Commercial paper borrowings at December 31, 2016 reflect approximately €500 million ($522 million) of Euro-denominated commercial paper. 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. At December 31, 2016 , approximately $1.5 billion was available under short-term lines of credit with local banks at our various domestic and international subsidiaries. The weighted-average interest rates applicable to short-term borrowings and total debt were as follows: 2016 2015 Average interest expense rate - average outstanding borrowings during the year: Short-term borrowings 1.3 % 0.6 % Total debt 4.1 % 4.1 % Average interest expense rate - outstanding borrowings as of December 31: Short-term borrowings 0.6 % 0.8 % Total debt 3.7 % 4.4 % Long-term debt consisted of the following as of December 31: (dollars in millions) 2016 2015 5.375% notes due 2017 1 — 1,000 1.800% notes due 2017 1 1,500 1,500 EURIBOR plus 0.80% floating rate notes due 2018 (€750 million principal value) 2 783 — 1.778% junior subordinated notes due 2018 1,100 1,100 6.800% notes due 2018 99 99 LIBOR plus 0.350% floating rate notes due 2019 3 350 — 1.500% notes due 2019 1 650 — 6.125% notes due 2019 1 — 1,250 8.875% notes due 2019 271 271 4.500% notes due 2020 1 1,250 1,250 4.875% notes due 2020 171 171 1.950% notes due 2021 1 750 — 1.125% notes due 2021 (€950 million principal value) 4 992 — 8.750% notes due 2021 250 250 3.100% notes due 2022 1 2,300 2,300 1.250% notes due 2023 (€750 million principal value) 4 783 817 1.875% notes due 2026 (€500 million principal value) 4 522 — 2.650% notes due 2026 1 1,150 — 7.100% notes due 2027 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 134 134 7.000% notes due 2038 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 1 850 850 3.750% notes due 2046 1 1,100 — Project financing obligations 155 191 Other (including capitalized leases) 189 306 Total principal long-term debt 23,299 19,439 Other (fair market value adjustments, discounts and debt issuance costs) 1 60 Total long-term debt 23,300 19,499 Less: current portion 1,603 179 Long-term debt, net of current portion $ 21,697 $ 19,320 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 The three-month EURIBOR rate as of December 30, 2016 was approximately -0.319%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. 3 The three-month LIBOR rate as of December 30, 2016 was approximately 0.998%. 4 We may redeem these notes, in whole or in part, at our option at any time. If redeemed earlier than three months prior to the stated maturity date, 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 15-30 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. On December 1, 2016 , we redeemed all outstanding 5.375% notes due in 2017, representing $1.0 billion in aggregate principal, and all outstanding 6.125% notes due in 2019, representing $1.25 billion in aggregate principal, under our redemption notice issued on November 1, 2016. A combined net extinguishment loss of approximately $164 million was recognized within Interest expense, net in the accompanying Consolidated Statement of Operations. On November 1, 2016 , we issued $650 million aggregate principal amount of 1.500% notes due 2019 , $750 million aggregate principal amount of 1.950% notes due 2021 , $1,150 million aggregate principal amount of 2.650% notes due 2026 , $1,100 million aggregate principal amount of 3.750% notes due 2046 and $350 million aggregate principal amount of floating rate notes due 2019 . We used the net proceeds received from these issuances to fund the redemption price of the 5.375% notes due 2017 and the 6.125% notes due 2019, to fund the repayment of commercial paper, and for other general corporate purposes. On February 22, 2016 , we issued €950 million aggregate principal amount of 1.125% notes due 2021 , €500 million aggregate principal amount of 1.875% notes due 2026 and €750 million aggregate principal amount of floating rate notes due 2018 . The net proceeds from these debt issuances were used for general corporate purposes. 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 7% and 5% at December 31, 2016 and 2015 , respectively. Interest rates on our commercial paper borrowings are considered variable due to their short-term duration and high-frequency of turnover. The average maturity of our long-term debt at December 31, 2016 is approximately ten years . The schedule of principal payments required on long-term debt for the next five years and thereafter is: (dollars in millions) 2017 $ 1,603 2018 2,012 2019 1,299 2020 1,460 2021 2,034 Thereafter 14,891 Total $ 23,299 On April 29, 2016, we renewed our universal shelf registration statement filed with the Securities and Exchange Commission (SEC) for an indeterminate amount of equity and debt securities for future issuance, subject to our internal limitations on the amount of equity and debt to be issued under this shelf registration statement. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | EQUITY On November 11, 2015, we entered into ASR agreements to repurchase an aggregate of $6.0 billion of our common stock utilizing the net after-tax proceeds from the sale of Sikorsky. Under the terms of the ASR agreements, we made the aggregate payments 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. In 2016, the shares associated with the remaining portion of the aggregate purchase were settled upon final delivery to us of approximately 10.1 million additional shares of common stock. Including the remaining shares settled in 2016, the final price under the November 11, 2015 ASR was $96.74 per share. 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. Including the remaining shares settled on July 31, 2015, the final price under the ASR was $116.11 per share. 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, 2016 and 2015 is provided below: (dollars in millions) Foreign Currency Translation Defined Benefit Pension and Postretirement Plans Unrealized Gains (Losses) on Available-for- Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income 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 ) Other comprehensive (loss) income before reclassifications, net (1,042 ) (247 ) 119 54 (1,116 ) Amounts reclassified, pre-tax — 535 (94 ) 171 612 Tax (benefit) expense reclassified — (198 ) 35 (48 ) (211 ) Balance at December 31, 2016 $ (3,480 ) $ (5,045 ) $ 353 $ (162 ) $ (8,334 ) 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 (decrease) increase in Net income attributable to common shareowners would have been $(8) million , $12 million and $(71) million for the years ended December 31, 2016, 2015 and 2014, respectively, had they been recorded through net income. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 United States $ 2,534 $ 2,782 $ 4,165 Foreign 4,599 3,685 4,547 $ 7,133 $ 6,467 $ 8,712 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 $ 31 billion as of December 31, 2016 . 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, 2016, 2015 and 2014 consisted of the following components: (dollars in millions) 2016 2015 2014 Current: United States: Federal $ 30 $ 328 $ 319 State (21 ) (37 ) 38 Foreign 1,290 1,158 1,484 1,299 1,449 1,841 Future: United States: Federal 318 712 421 State 134 109 (23 ) Foreign (54 ) (159 ) 5 398 662 403 Income tax expense $ 1,697 $ 2,111 $ 2,244 Attributable to items credited (charged) to equity $ (299 ) $ (114 ) $ 1,535 Reconciliation of Effective Income Tax Rate. Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows: 2016 2015 2014 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % Tax on international activities (8.1 )% (2.0 )% (3.3 )% Tax audit settlements (2.9 )% — (4.3 )% Other (0.2 )% (0.4 )% (1.6 )% Effective income tax rate 23.8 % 32.6 % 25.8 % The 2016 effective tax rate reflects $206 million of favorable adjustments related to the conclusion of the review by the Examination Division of the Internal Revenue Service of both the UTC 2011 and 2012 tax years and the Goodrich Corporation 2011 and 2012 tax years through the date of its acquisition as well as the absence of 2015 items described below. In addition, at the end of 2016 France enacted a tax law change reducing its corporate income tax rate which resulted in a tax benefit of $25 million . The 2015 effective tax rate reflects an unfavorable tax adjustment of $274 million related to the repatriation of certain foreign earnings, the majority of which were 2015 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 favorable tax adjustments of $371 million related to the conclusion of the examination of UTC's 2009 - 2010 tax years, the resolution of disputed tax matters with the Appeals Division of the IRS for UTC's 2006 - 2008 tax years, the conclusion of the State of Connecticut's review of UTC's 2010 - 2012 tax years and the conclusion of the Canada Revenue Agency's examination of the company's research credits claimed in 2006 - 2012. Also included was a favorable tax adjustment of $ 175 million associated with management’s decision to repatriate additional high taxed dividends from the current year. These were 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. 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. 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 temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2016 and 2015 are as follows: (dollars in millions) 2016 2015 Future income tax benefits: Insurance and employee benefits $ 2,382 $ 2,650 Other asset basis differences 1,098 1,199 Other liability basis differences 1,403 1,543 Tax loss carryforwards 494 528 Tax credit carryforwards 873 872 Valuation allowances (545 ) (591 ) $ 5,705 $ 6,201 Future income taxes payable: Other asset basis differences $ 5,376 $ 5,324 Other items, net 364 531 $ 5,740 $ 5,855 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. Tax Credit and Loss Carryforwards. At December 31, 2016 , 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: 2017-2021 $ 12 $ 317 2022-2026 13 187 2027-2036 219 363 Indefinite 629 1,780 Total $ 873 $ 2,647 Unrecognized Tax Benefits. At December 31, 2016 , we had gross tax-effected unrecognized tax benefits of $1,086 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, 2016, 2015 and 2014 is as follows: (dollars in millions) 2016 2015 2014 Balance at January 1 $ 1,169 $ 1,089 $ 1,223 Additions for tax positions related to the current year 69 206 164 Additions for tax positions of prior years 167 99 435 Reductions for tax positions of prior years (61 ) (101 ) (47 ) Settlements (258 ) (124 ) (686 ) Balance at December 31 $ 1,086 $ 1,169 $ 1,089 Gross interest expense related to unrecognized tax benefits $ 41 $ 39 $ 180 Total accrued interest balance at December 31 $ 185 $ 176 $ 292 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, Mexico, Netherlands, Poland, Singapore, South Korea, Spain, Switzerland, and 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 2005. During the quarter ended December 31, 2016, the Company recognized a noncash gain of approximately $ 172 million , including a pre-tax interest adjustment of $ 22 million , as a result of the closure of the audit by the Examination Division of the Internal Revenue Service (IRS) of UTC tax years 2011 and 2012. The IRS has notified the Company of its intention to begin an audit of tax year 2014 during the first quarter of 2017. During the quarter ended September 30, 2016, the Company recognized a noncash gain of approximately $ 58 million , primarily tax, as a result of the closure of the audit by the Examination Division of the IRS of Goodrich Corporation tax years 2011 and 2012 through the date of acquisition by UTC. 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. 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 $50 million to a net decrease of $495 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 18 "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, 2016 | |
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 $318 million , $356 million and $330 million for 2016 , 2015 and 2014 , 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 may choose to have their ESOP dividends reinvested or distributed in cash. 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, 2016 , 27.8 million common shares had been allocated to employees, leaving 11.7 million unallocated common shares in the ESOP Trust, with an approximate fair value of $1.3 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 largest plans are generally closed to new participants. Our plans use a December 31 measurement date consistent with our fiscal year. (dollars in millions) 2016 2015 Change in Benefit Obligation: Beginning balance $ 35,428 $ 37,853 Service cost 383 493 Interest cost 1,183 1,399 Actuarial loss (gain) 1,831 (1,716 ) Total benefits paid (1,660 ) (1,796 ) Net settlement, curtailment and special termination benefits (1,566 ) (55 ) Plan amendments 17 39 Other (693 ) (789 ) Ending balance $ 34,923 $ 35,428 Change in Plan Assets: Beginning balance $ 31,011 $ 32,738 Actual return on plan assets 3,202 265 Employer contributions 384 520 Benefits paid (1,660 ) (1,796 ) Settlements (1,632 ) (59 ) Other (750 ) (657 ) Ending balance $ 30,555 $ 31,011 Funded Status: Fair value of plan assets $ 30,555 $ 31,011 Benefit obligations (34,923 ) (35,428 ) Funded status of plan $ (4,368 ) $ (4,417 ) Amounts Recognized in the Consolidated Balance Sheet Consist of: Noncurrent assets $ 451 $ 742 Current liability (72 ) (71 ) Noncurrent liability (4,747 ) (5,088 ) Net amount recognized $ (4,368 ) $ (4,417 ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial loss $ 7,941 $ 8,224 Prior service credit (6 ) (57 ) Net amount recognized $ 7,935 $ 8,167 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 resulted in a net decrease in the service and interest components of our annual net periodic pension cost of approximately $215 million for 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 materially affect the measurement of our total benefit obligations. As part of our long-term strategy to de-risk our defined benefit pension plans, we entered into an agreement to purchase a group annuity contract to transfer approximately $768 million of our outstanding pension benefit obligations related to certain U.S. retirees or beneficiaries, which was finalized on October 12, 2016. We also offered certain former U.S. employees or beneficiaries (generally all former U.S. participants not yet in receipt of their vested pension benefits) an option to take a one-time lump-sum distribution in lieu of future monthly pension payments, which reduced our pension benefit obligations by approximately $935 million . These transactions reduced the assets of our defined benefit pension plans by approximately $1.5 billion . As a result of these transactions, we recognized a one-time pre-tax pension settlement charge of approximately $423 million in the fourth quarter of 2016. 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. As approved in 2016, effective January 1, 2017, a voluntary lump-sum option is available for the frozen final average earnings benefits of certain U.S. salaried employees upon termination of employment after 2016. This option provides participants with the choice of electing to receive a lump-sum payment in lieu of receiving a future monthly pension benefit. This plan change reduced the projected benefit obligation by $170 million . 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 settled our obligation to those participants who accepted the offer. The program provided 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 75% 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. Benefits for service after December 31, 2014 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. Certain foreign plans, which comprise approximately 24% 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 made $100 million of cash contributions to our domestic defined benefit pension plans and made $203 million of cash contributions to our foreign defined benefit pension plans in 2016 . In 2015 , 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. Information for pension plans with accumulated benefit obligations in excess of plan assets: (dollars in millions) 2016 2015 Projected benefit obligation $ 32,732 $ 30,915 Accumulated benefit obligation 32,095 30,362 Fair value of plan assets 27,943 25,827 The accumulated benefit obligation for all defined benefit pension plans was $34.2 billion and $34.6 billion at December 31, 2016 and 2015 , respectively. The components of the net periodic pension cost are as follows: (dollars in millions) 2016 2015 2014 Pension Benefits: Service cost $ 383 $ 493 $ 487 Interest cost 1,183 1,399 1,517 Expected return on plan assets (2,202 ) (2,264 ) (2,215 ) Amortization of prior service credit (33 ) (11 ) (8 ) Recognized actuarial net loss 572 882 429 Net settlement, curtailment and special termination benefits loss 498 150 13 Net periodic pension cost - employer $ 401 $ 649 $ 223 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. In addition, total net periodic pension cost includes approximately $98 million and $96 million related to, and recorded in, discontinued operations for the years ended December 31, 2015 and 2014, respectively. Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2016 are as follows: (dollars in millions) Current year actuarial loss $ 831 Amortization of actuarial loss (572 ) Current year prior service cost 17 Amortization of prior service credit 33 Net settlement and curtailment loss (436 ) Other (105 ) Total recognized in other comprehensive loss $ (232 ) Net recognized in net periodic pension cost and other comprehensive loss $ 169 The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in 2017 is as follows: (dollars in millions) Net actuarial loss $ 571 Prior service credit (36 ) $ 535 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 2016 2015 2016 2015 2014 Discount rate PBO 3.8 % 4.1 % 4.1 % 3.8 % 4.7 % Interest cost 1 — — 3.4 % — — Service cost 1 — — 3.8 % — — Salary scale 4.1 % 4.2 % 4.2 % 4.2 % 4.2 % Expected return on plan assets — — 7.3 % 7.6 % 7.6 % Note 1 The 2016 discount rates used to measure the service cost and interest cost applies to our significant plans. The PBO discount rate is used for the service cost and interest cost measurements for non-significant plans. 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 providing the liquidity and asset levels needed to meet current and future benefit payments while maintaining a prudent degree of portfolio diversification considering interest rate risk and market volatility. 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 11% 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, 2016 and 2015 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 $ 4,682 $ 3 $ — $ — $ 4,685 Global Equity Commingled Funds 1 — 367 — — 367 Enhanced Global Equities 2 168 1,494 — — 1,662 Global Equity Funds at net asset value 8 — — — 7,090 7,090 Private Equities 3,8 — — 122 1,239 1,361 Fixed Income Securities Governments 260 54 — — 314 Corporate Bonds — 7,637 — — 7,637 Fixed Income Securities 8 — — — 2,788 2,788 Real Estate 4,8 — 17 1,285 513 1,815 Other 5,8 — 289 — 1,819 2,108 Cash & Cash Equivalents 6,8 100 75 — 121 296 Subtotal $ 5,210 $ 9,936 $ 1,407 $ 13,570 30,123 Other Assets & Liabilities 7 432 Total at December 31, 2016 $ 30,555 Public Equities Global Equities $ 5,884 $ — $ — $ — $ 5,884 Global Equity Commingled Funds 1 — 779 — — 779 Enhanced Global Equities 2 237 616 — — 853 Global Equity 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 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 1% and 3% of total plan assets at December 31, 2016 and 2015 , respectively. 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, 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 Realized gains 46 19 65 Unrealized gains relating to instruments still held in the reporting period 5 18 23 Purchases, sales, and settlements, net (111 ) 83 (28 ) Balance, December 31, 2016 $ 122 $ 1,285 $ 1,407 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 2021, we may elect to make discretionary contributions in 2017. We expect to make total contributions of approximately $300 million to our global defined benefit pension plans in 2017, including discretionary contributions of approximately $150 million to our domestic defined benefit pension plans. 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: $1,930 million in 2017, $1,847 million in 2018, $1,896 million in 2019, $1,948 million in 2020, $1,994 million in 2021, and $10,545 million from 2022 through 2026. 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 87% of the benefit obligation. The postretirement plans are unfunded. (dollars in millions) 2016 2015 Change in Benefit Obligation: Beginning balance $ 890 $ 952 Service cost 3 3 Interest cost 34 34 Actuarial gain (48 ) — Total benefits paid (97 ) (104 ) Other 23 5 Ending balance $ 805 $ 890 Change in Plan Assets: Beginning balance $ — $ — Employer contributions 80 84 Benefits paid (97 ) (104 ) Other 17 20 Ending balance $ — $ — Funded Status: Fair value of plan assets $ — $ — Benefit obligations (805 ) (890 ) Funded status of plan $ (805 ) $ (890 ) Amounts Recognized in the Consolidated Balance Sheet Consist of: Current liability $ (78 ) $ (84 ) Noncurrent liability (727 ) (806 ) Net amount recognized $ (805 ) $ (890 ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial gain $ (152 ) $ (109 ) Prior service credit (5 ) (1 ) Net amount recognized $ (157 ) $ (110 ) The components of net periodic benefit cost are as follows: (dollars in millions) 2016 2015 2014 Other Postretirement Benefits: Service cost $ 3 $ 3 $ 3 Interest cost 34 34 41 Amortization of prior service credit — — (1 ) Recognized actuarial net gain (4 ) (4 ) (4 ) Net settlement and curtailment gain — (1 ) — Net periodic other postretirement benefit cost $ 33 $ 32 $ 39 Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2016 are as follows: (dollars in millions) Current year actuarial gain $ (46 ) Current year prior service credit (4 ) Amortization of actuarial net gain 4 Other (1 ) Total recognized in other comprehensive loss $ (47 ) Net recognized in net periodic other postretirement benefit cost and other comprehensive loss $ (14 ) The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2017 include actuarial net gains of $10 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 2016 2015 2016 2015 2014 Discount rate 3.8 % 4.0 % 4.0 % 3.8 % 4.4 % Assumed health care cost trend rates are as follows: 2016 2015 Health care cost trend rate assumed for next year 6.5 % 6.5 % 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 2022 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: 2016 One-Percentage-Point (dollars in millions) Increase Decrease Effect on total service and interest cost $ 3 $ (2 ) Effect on postretirement benefit obligation 46 (39 ) 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: $78 million in 2017, $75 million in 2018, $70 million in 2019, $65 million in 2020, $60 million in 2021, and $242 million from 2022 through 2026. 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 2016 and 2015 is for the plan's year-end at June 30, 2015 , and June 30, 2014 , 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 2016 2015 Pending/ Implemented 2016 2015 2014 Surcharge Imposed Expiration Date of Collective-Bargaining Agreement National Elevator Industry Pension Plan 23-2694291 Green Green No $ 100 $ 88 $ 79 No July 8, 2017 Other funds 31 32 34 $ 131 $ 120 $ 113 For the plan years ended June 30, 2015 and 2014, 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, 2016. 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 $17 million , $15 million and $14 million for 2016, 2015 and 2014, 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 last amended on February 5, 2016. 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, 2016 , approximately 38 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. 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) 2016 2015 2014 Continuing operations $ 152 $ 158 $ 219 Discontinued operations 1 17 21 Total compensation cost recognized $ 153 $ 175 $ 240 The associated future income tax benefit recognized was $49 million , $57 million and $80 million for the years ended December 31, 2016, 2015 and 2014 , respectively. For the years ended December 31, 2016, 2015 and 2014 , the amount of cash received from the exercise of stock options was $17 million , $41 million and $187 million , respectively, with an associated tax benefit realized of $69 million , $89 million and $125 million , respectively. In addition, for the years ended December 31, 2016, 2015 and 2014 , the associated tax benefit realized from the vesting of performance share units and other restricted awards was $17 million , $48 million and $49 million , respectively. Also, as described in Note 1 "Summary of Accounting Principles," during 2016, we early adopted the provisions of ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." Please refer to Note 1 for additional information regarding the impact of the early adoption on the 2016 financial statements. As part of that adoption, we elected to apply the prospective transition method and therefore, did not revise prior years' disclosure. As such, for the years ended December 31, 2015 and 2014, based on existing guidance prior to the issuance of ASU 2016-09, $64 million and $103 million , respectively, of certain tax benefits have been reported as operating cash outflows with corresponding cash inflows from financing activities. At December 31, 2016 , there was $157 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 3.1 years. A summary of the transactions under all long-term incentive plans for the year ended December 31, 2016 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, 2015 1,879 $ 86.19 38,111 $ 83.58 2,170 $ 101.78 1,467 Granted 397 95.57 4,740 95.40 687 95.29 698 Exercised / earned (239 ) 71.57 (5,760 ) 69.19 (372 ) 84.03 (339 ) Cancelled / Other (14 ) 92.02 (678 ) 95.03 (518 ) 85.92 207 December 31, 2016 2,023 $ 89.72 36,413 $ 87.18 1,967 $ 107.05 2,033 * 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 2016, 2015 and 2014 was $14.02 , $18.69 and $28.36 , respectively. The weighted-average grant date fair value of performance share units, which vest upon achieving certain performance metrics, granted during 2016, 2015 and 2014 was $91.63 , $120.36 and $125.41 , respectively. The total fair value of awards vested during the years ended December 31, 2016, 2015 and 2014 was $165 million , $247 million and $226 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, 2016, 2015 and 2014 was $214 million , $281 million and $425 million , respectively. The total intrinsic value (which is the stock price at vesting) of performance share units and other restricted awards vested was $61 million , $151 million and $154 million during the years ended December 31, 2016, 2015 and 2014 , 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, 2016 : 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 38,314 $ 86.58 $ 917 5.4 years 25,574 $ 77.64 $ 824 4.2 years Performance Share Units/Restricted Stock 2,376 — 260 2.8 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, 2016, 2015 and 2014 . Lattice-based option models incorporate ranges of assumptions for inputs, those ranges are as follows: 2016 2015 2014 Expected volatility 20% 20% - 23% 22% - 26% Weighted-average volatility 20 % 21 % 26 % Expected term (in years) 6.5 6.0 - 6.8 7.6 - 8.0 Expected dividend yield 2.7 % 2.2 % 2.2 % Ris |
Restructuring and Other Costs
Restructuring and Other Costs | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING COSTS During 2016 , we recorded net pre-tax restructuring costs totaling $290 million for new and ongoing restructuring actions. We recorded charges in the segments as follows: (dollars in millions) Otis $ 59 UTC Climate, Controls & Security 65 Pratt & Whitney 111 UTC Aerospace Systems 49 Eliminations and other 6 Total $ 290 Restructuring charges incurred in 2016 primarily relate to actions initiated during 2016 and 2015 , and were recorded as follows: (dollars in millions) Cost of sales $ 187 Selling, general & administrative 78 Other expense 25 Total 290 2016 Actions. During 2016 , we recorded net pre-tax restructuring costs totaling $242 million for restructuring actions initiated in 2016 , consisting of $149 million in cost of sales, $67 million in selling, general and administrative expenses, and $26 million in other expense. The 2016 actions relate to ongoing cost reduction efforts, including workforce reductions, consolidation of field operations, and costs to exit legacy programs. We are targeting to complete in 2017 and 2018 the majority of the remaining workforce and all facility related cost reduction actions initiated in 2016 . 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 2016 restructuring actions: (dollars in millions) Severance Facility Exit, Lease Termination & Other Costs Total Net pre-tax restructuring costs $ 166 $ 76 $ 242 Utilization and foreign exchange (103 ) (30 ) (133 ) Balance at December 31, 2016 $ 63 $ 46 $ 109 The following table summarizes expected, incurred and remaining costs for the 2016 restructuring actions by segment: (dollars in millions) Expected Costs Cost Incurred During 2016 Remaining Costs at December 31, 2016 Otis $ 57 $ (48 ) $ 9 UTC Climate, Controls & Security 87 (45 ) 42 Pratt & Whitney 118 (118 ) — UTC Aerospace Systems 92 (31 ) 61 Total $ 354 $ (242 ) $ 112 2015 Actions. During 2016 , we recorded net pre-tax restructuring costs totaling $40 million for restructuring actions initiated in 2015 , consisting of $36 million in cost of sales and $4 million in selling, general and administrative expenses. The 2015 actions relate to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. 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 and Other Costs Total Restructuring accruals at January 1, 2016 $ 183 $ 23 $ 206 Net pre-tax restructuring costs 17 23 40 Utilization and foreign exchange (158 ) (22 ) (180 ) Balance at December 31, 2016 $ 42 $ 24 $ 66 The following table summarizes expected, incurred and remaining costs for the 2015 programs by segment: (dollars in millions) Expected Costs Costs Incurred During 2015 (Costs Incurred) Reversals During 2016 Remaining Costs at December 31, 2016 Otis $ 51 $ (35 ) $ (14 ) $ 2 UTC Climate, Controls & Security 139 (83 ) (24 ) 32 Pratt & Whitney 62 (82 ) 20 — UTC Aerospace Systems 129 (105 ) (16 ) 8 Eliminations and other 27 (21 ) (6 ) — Total $ 408 $ (326 ) $ (40 ) $ 42 During 2016, we had reversals of previously accrued restructuring reserves for 2015 programs of approximately $65 million , which includes a Pratt & Whitney business that was sold in the third quarter of 2016 after originally being scheduled for closure, and a UTC Climate, Controls & Security facility that will remain operational after originally being scheduled for closure. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments Disclosure [Text Block] | NOTE 14: 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 $ 18.3 billion and $ 15.6 billion at December 31, 2016 and 2015 , 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, 2016 and 2015 which consist solely of foreign exchange contracts: Asset Derivatives Liability Derivatives (dollars in millions) 2016 2015 2016 2015 Derivatives designated as hedging instruments $ 15 $ 4 $ 196 $ 428 Derivatives not designated as hedging instruments 155 97 158 105 As discussed in Note 9, at December 31, 2016 we have approximately €2.95 billion of Euro-denominated long-term debt and €500 million of outstanding Euro-denominated commercial paper borrowings, which qualify as a net investment hedge against our investments in European businesses. As of December 31, 2016, 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) 2016 2015 Gain (loss) recorded in Accumulated other comprehensive loss $ 75 $ (415 ) Loss reclassified from Accumulated other comprehensive loss into Product sales (effective portion) $ 171 $ 234 Assuming current market conditions continue, a $ 59 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, 2016 , all derivative contracts accounted for as cash flow hedges mature by November 2022 . The effect on the Consolidated Statement of Operations of foreign exchange contracts not designated as hedging instruments was as follows: Year Ended December 31, (dollars in millions) 2016 2015 Gain recognized in Other income, net $ 56 $ 63 We received $249 million , $160 million , and $93 million from settlements of derivative contracts during the years ended December 31, 2016, 2015 and 2014 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS In accordance with the provisions of ASC 820, the following tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and non-recurring basis in our Consolidated Balance Sheet as of December 31, 2016 and 2015 : 2016 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 987 $ 987 $ — $ — Derivative assets 170 — 170 — Derivative liabilities (354 ) — (354 ) — 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 ) — During 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. 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, 2016 , there were no significant transfers in and out of Level 1 and Level 2. As of December 31, 2016 , 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, 2016 and 2015 : December 31, 2016 December 31, 2015 (dollars in millions) Carrying Fair Carrying Fair Long-term receivables $ 127 $ 121 $ 122 $ 107 Customer financing notes receivable 437 420 403 403 Short-term borrowings (600 ) (600 ) (926 ) (926 ) Long-term debt (excluding capitalized leases) (23,280 ) (25,110 ) (19,476 ) (21,198 ) Long-term liabilities (457 ) (427 ) (458 ) (419 ) 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, 2016 : (dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 121 $ — $ 121 $ — Customer financing notes receivable 420 — 420 — Short-term borrowings (600 ) — (522 ) (78 ) Long-term debt (excluding capitalized leases) (25,110 ) — (24,906 ) (204 ) Long-term liabilities (427 ) — (427 ) — |
Variable Interest Entities (Not
Variable Interest Entities (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | VARIABLE INTEREST ENTITIES In 2012, Pratt & Whitney, Rolls-Royce plc (Rolls-Royce), MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC), 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. Additionally, Pratt & Whitney, JAEC and MTU are participants in International Aero Engines, LLC (IAE LLC), whose business purpose is to coordinate the design, development, manufacturing and product support for the PW1100G-JM engine for the Airbus A320neo aircraft and the PW1400G-JM engine for the Irkut MC21 aircraft. Pratt & Whitney holds a 59% net interest in the collaboration and a 59% ownership interest in IAE LLC. IAE and IAE LLC retain limited equity with the primary economics of the programs passed to the participants. As such, we have determined that IAE and IAE LLC are variable interest entities with Pratt & Whitney the primary beneficiary. IAE and IAE LLC have, therefore, been consolidated. The carrying amounts and classification of assets and liabilities for variable interest entities in our Consolidated Balance Sheet as of December 31, 2016 and 2015 are as follows: (dollars in millions) 2016 2015 Current assets $ 2,722 $ 1,920 Noncurrent assets 1,334 1,102 Total assets $ 4,056 $ 3,022 Current liabilities $ 2,422 $ 1,931 Noncurrent liabilities 1,636 1,355 Total liabilities $ 4,058 $ 3,286 |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES We extend a variety of financial guarantees to third parties. As of December 31, 2016 and 2015 , the following financial guarantees were outstanding: December 31, 2016 December 31, 2015 (dollars in millions) Maximum Carrying Maximum Carrying Commercial aerospace financing arrangements (see Note 5) $ 348 $ 14 $ 365 $ 12 Credit facilities and debt obligations (expire 2017 to 2028) 270 15 241 — Performance guarantees 55 4 55 3 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 at December 31, 2016 and 2015 . For additional information regarding the environmental indemnifications, see Note 18. 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, 2016 and 2015 are as follows: (dollars in millions) 2016 2015 Balance as of January 1 $ 1,212 $ 1,264 Warranties and performance guarantees issued 246 291 Settlements made (240 ) (259 ) Other (19 ) (84 ) Balance as of December 31 $ 1,199 $ 1,212 |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
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 $2,094 million at December 31, 2016 under long-term non-cancelable operating leases are payable as follows: $462 million in 2017, $354 million in 2018, $286 million in 2019, $209 million in 2020, $145 million in 2021 and $638 million thereafter. Rent expense was $386 million in 2016, $386 million in 2015 and $434 million in 2014. 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, including but not limited to investigatory, remediation, operating and maintenance costs and performance guaranties, 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, 2016 and 2015 , we had $829 million and $837 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, in some cases, continue to negotiate and/or litigate. 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. Cost Accounting Standards Claim As previously disclosed, in December 2013, a Divisional Administrative Contracting Officer of the United States Defense Contract Management Agency asserted a claim against Pratt & Whitney to recover overpayments of approximately $177 million plus interest (approximately $63 million through December 31, 2016). 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 $225 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 $123 million). On August 3, 2012, we filed suit in the local German Tax Court (Berlin-Brandenburg). In March 2016, the local German Tax Court dismissed our suit, and we have appealed this decision to the German Federal Tax Court (FTC). In 2015, UTC made tax and interest payments to German tax authorities of €275 million (approximately $300 million) in order to avoid additional interest accruals pending final resolution of this matter. In the meantime, we continue vigorously to litigate this matter. Asbestos Matters As previously disclosed, 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. Our estimated total liability to resolve all pending and unasserted potential future asbestos claims through 2059 is approximately $374 million and is principally recorded in Other long-term liabilities on our Consolidated Balance Sheet as of December 31, 2016. This amount is on a pre-tax basis, not discounted, and excludes the Company’s legal fees to defend the asbestos claims (which will continue to be expensed by the Company as they are incurred). In addition, the Company has an insurance recovery receivable for probable asbestos related recoveries of approximately $124 million , which is included primarily in Other assets on our Consolidated Balance Sheet as of December 31, 2016. The amounts recorded by UTC for asbestos-related liabilities and insurance recoveries 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 outcomes or resolution of such claims, the average cost of resolution of each new claim, the amount of insurance available, allocation methodologies, the contractual terms with each insurer with whom we have reached settlements, 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, legal rulings that may be made by state and federal courts, and the passage of state or federal legislation. At the end of each year, the Company will evaluate all of these factors and, with input from an outside actuarial expert, make any necessary adjustments to both our estimated asbestos liabilities and insurance recoveries. Other. As described in Note 17 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 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, 2016 | |
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 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 2016 . 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) 2016 2015 2014 2016 2015 2014 Otis $ 11,893 $ 11,980 $ 12,982 $ 2,147 $ 2,338 $ 2,640 UTC Climate, Controls & Security 16,851 16,707 16,823 2,956 2,936 2,782 Pratt & Whitney 14,894 14,082 14,508 1,545 861 2,000 UTC Aerospace Systems 14,465 14,094 14,215 2,298 1,888 2,355 Total segment 58,103 56,863 58,528 8,946 8,023 9,777 Eliminations and other (859 ) (765 ) (628 ) (368 ) (268 ) 304 General corporate expenses — — — (406 ) (464 ) (488 ) Consolidated $ 57,244 $ 56,098 $ 57,900 $ 8,172 $ 7,291 $ 9,593 Total Assets Capital Expenditures Depreciation & Amortization (dollars in millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Otis $ 8,867 $ 8,846 $ 9,313 $ 94 $ 83 $ 87 $ 171 $ 176 $ 209 UTC Climate, Controls & Security 21,787 21,287 21,217 340 261 228 354 337 349 Pratt & Whitney 22,971 20,336 18,143 725 692 692 550 476 390 UTC Aerospace Systems 34,093 34,736 35,034 452 537 533 807 796 807 Total segment 87,718 85,205 83,707 1,611 1,573 1,540 1,882 1,785 1,755 Eliminations and other 1,988 2,279 2,631 88 79 54 80 78 65 Consolidated $ 89,706 $ 87,484 $ 86,338 $ 1,699 $ 1,652 $ 1,594 $ 1,962 $ 1,863 $ 1,820 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) 2016 2015 2014 2016 2015 2014 2016 2015 2014 United States Operations $ 32,335 $ 30,989 $ 30,814 $ 4,566 $ 4,391 $ 5,067 $ 4,822 $ 4,517 $ 4,211 International Operations Europe 11,151 10,945 12,587 1,933 1,882 2,238 1,538 1,525 1,577 Asia Pacific 8,260 8,425 8,746 1,484 1,641 1,712 999 994 995 Other 5,479 5,584 5,511 963 109 760 1,325 1,273 1,379 Eliminations and other 19 155 242 (774 ) (732 ) (184 ) 474 423 430 Consolidated $ 57,244 $ 56,098 $ 57,900 $ 8,172 $ 7,291 $ 9,593 $ 9,158 $ 8,732 $ 8,592 Sales from U.S. operations include export sales as follows: (dollars in millions) 2016 2015 2014 Europe $ 5,065 $ 4,366 $ 4,137 Asia Pacific 3,449 2,902 3,469 Other 2,313 2,473 2,670 $ 10,827 $ 9,741 $ 10,276 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) 2016 2015 2014 Pratt & Whitney $ 3,187 $ 2,945 $ 3,126 UTC Aerospace Systems 2,301 2,409 2,459 Other 138 276 294 $ 5,626 $ 5,630 $ 5,879 Net sales by Sikorsky under prime contracts and subcontracts to the U.S. Government of approximately $3.1 billion and $3.8 billion have been reclassified to Discontinued Operations in our Consolidated Statement of Operations for the years ended December 31, 2015 and 2014, respectively. Net sales to Airbus, primarily related to Pratt & Whitney and UTC Aerospace Systems products, were approximately $7,688 million , $7,624 million and $7,757 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data - Unaudited | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information [Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) 2016 Quarters 2015 Quarters (dollars in millions, except per share amounts) First Second Third Fourth First Second Third Fourth Net Sales $ 13,357 $ 14,874 $ 14,354 $ 14,659 $ 13,320 $ 14,690 $ 13,788 $ 14,300 Gross margin 3,703 4,133 4,012 3,936 3,814 4,218 3,988 3,647 Net income attributable to common shareowners 1,183 1,379 1,480 1,013 1,426 1,542 1,362 3,278 Earnings per share of Common Stock: Basic - net income $ 1.43 $ 1.67 $ 1.80 $ 1.26 $ 1.60 $ 1.76 $ 1.55 $ 3.86 Diluted - net income $ 1.42 $ 1.65 $ 1.78 $ 1.25 $ 1.58 $ 1.73 $ 1.54 $ 3.86 COMPARATIVE STOCK DATA (UNAUDITED) 2016 2015 (common stock) High Low Dividend High Low Dividend First quarter $ 100.25 $ 84.66 $ 0.64 $ 124.11 $ 111.52 $ 0.64 Second quarter $ 105.89 $ 97.21 $ 0.66 $ 119.14 $ 110.93 $ 0.64 Third quarter $ 109.69 $ 100.10 $ 0.66 $ 111.58 $ 86.82 $ 0.64 Fourth quarter $ 110.98 $ 98.67 $ 0.66 $ 100.80 $ 88.36 $ 0.64 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 19,126 registered shareholders at January 31, 2017 . |
Performance Graph - Unaudited
Performance Graph - Unaudited | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 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, 2011 . COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN December 2011 2012 2013 2014 2015 2016 United Technologies Corporation $ 100.00 $ 115.10 $ 163.30 $ 168.50 $ 144.23 $ 168.81 S&P 500 Index $ 100.00 $ 116.00 $ 153.57 $ 174.60 $ 177.01 $ 198.18 Dow Jones Industrial Average $ 100.00 $ 110.24 $ 142.93 $ 157.28 $ 157.61 $ 183.61 |
Summary of Accounting Princip31
Summary of Accounting Principles (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
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, 2016 and 2015 , the amount of such restricted cash was approximately $32 million and $45 million , respectively |
Accounts Receivable Policy [Text Block] | Accounts Receivable. Current and long-term accounts receivable as of December 31, 2016 include retainage of $106 million and unbilled receivables of $2,786 million , which includes approximately $1,169 million of unbilled receivables under commercial aerospace long-term aftermarket contracts. 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. 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 $114 million and $127 million at December 31, 2016 and 2015 , 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. Within commercial aerospace, inventory costs attributable to new engine offerings are recognized based on the average cost per unit expected over the life of each contract using the units-of-delivery method of percentage of completion accounting. Under this method, costs of initial engine deliveries in excess of the projected contract per unit average cost are capitalized, and these capitalized amounts are subsequently expensed as additional engine deliveries occur for engines with costs below the projected contract per unit average cost over the life of the contract. |
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, 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. We classify amortization of such payments as a reduction of sales. Such payments are capitalized when there are distinct rights obtained and there are sufficient incremental cash flows to support the recoverability of the assets established. Otherwise, the applicable portion of the payments are expensed. 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 50 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, 2016 and 2015 : (dollars in millions) 2016 2015 Long-term trade accounts receivable $ 926 $ 903 Notes and leases receivable 430 451 Total long-term receivables $ 1,356 $ 1,354 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 customers with an extremely strong capacity to meet financial obligations, to customers whose uncollateralized receivable is in default. There can be no assurance that actual results will not differ from estimates or that consideration of these factors in the future will not result in an increase or decrease to the allowance for credit losses on long-term receivables. Based upon the customer credit ratings, approximately 13% of our long-term receivables were considered to bear high credit risk as of both December 31, 2016 and 2015 . 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 $17 million and $18 million as of December 31, 2016 and 2015 , respectively, are individually evaluated for impairment. At both December 31, 2016 and 2015 , 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 that 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 unfavorable changes in aerospace contract estimates of approximately $157 million in 2016 , primarily the result of unexpected increases in estimated costs related to Pratt & Whitney long term aftermarket contracts. 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, at December 31, 2016 we have approximately €2.95 billion of Euro-denominated long-term debt and €500 million of outstanding Euro-denominated commercial paper borrowings, which qualify 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. See Note 18 for additional details on the environmental remediation activities. |
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 17 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, 2016 , 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) 2016 2015 2014 Collaborator share of sales: Cost of products sold $ 1,700 $ 1,547 $ 1,778 Cost of services sold 675 652 354 Collaborator share of program costs (reimbursement of expenses incurred): Cost of products sold (108 ) (104 ) (103 ) Research and development (184 ) (248 ) (122 ) Selling, general and administrative (5 ) (5 ) (4 ) |
Business Acquisitions, Dispos32
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Schedule of Goodwill [Table Text Block] | (dollars in millions) Balance as of January 1, 2016 Goodwill resulting from business combinations Foreign currency translation and other Balance as of December 31, 2016 Otis $ 1,566 $ 60 $ (51 ) $ 1,575 UTC Climate, Controls & Security 9,458 473 (444 ) 9,487 Pratt & Whitney 1,515 — (4 ) 1,511 UTC Aerospace Systems 14,759 35 (311 ) 14,483 Total Segments 27,298 568 (810 ) 27,056 Eliminations and other 3 — — 3 Total $ 27,301 $ 568 $ (810 ) $ 27,059 |
Intangible Assets Disclosure [Table Text Block] | 2016 2015 (dollars in millions) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized: Service portfolios $ 1,995 $ (1,344 ) $ 1,977 $ (1,307 ) Patents and trademarks 378 (201 ) 361 (189 ) Collaboration intangible assets 3,724 (211 ) 3,336 (86 ) Customer relationships and other 12,798 (3,480 ) 12,430 (2,988 ) 18,895 (5,236 ) 18,104 (4,570 ) Unamortized: Trademarks and other 2,025 — 2,069 — Total $ 20,920 $ (5,236 ) $ 20,173 $ (4,570 ) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (dollars in millions) 2017 2018 2019 2020 2021 Amortization expense $ 809 $ 865 $ 878 $ 859 $ 829 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement [Table Text Block] | The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations: Income (Expense) (dollars in millions) 2016 2015 2014 Discontinued Operations: Net Sales $ — $ 4,949 $ 7,452 Cost of Sales — (4,152 ) (6,801 ) Research and development — (150 ) (160 ) Selling, general and administrative 1 (315 ) (328 ) Pension curtailment — (110 ) — Other income, net — 30 12 Income from operations 1 252 175 Gain on disposal 13 6,042 — Income tax expense (24 ) (2,684 ) (20 ) (Loss) income from discontinued operations $ (10 ) $ 3,610 $ 155 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 Net income attributable to common shareowners: Net income from continuing operations $ 5,065 $ 3,996 $ 6,066 Net (loss) income from discontinued operations (10 ) 3,612 154 Net income attributable to common shareowners $ 5,055 $ 7,608 $ 6,220 Basic weighted average number of shares outstanding 818.2 872.7 898.3 Stock awards 7.9 10.5 13.3 Diluted weighted average number of shares outstanding 826.1 883.2 911.6 Earnings Per Share of Common Stock—Basic: Net income from continuing operations $ 6.19 $ 4.58 $ 6.75 Net (loss) income from discontinued operations (0.01 ) 4.14 0.17 Net income attributable to common shareowners 6.18 8.72 6.92 Earnings Per Share of Common Stock—Diluted: Net income from continuing operations $ 6.13 $ 4.53 $ 6.65 Net (loss) income from discontinued operations (0.01 ) 4.09 0.17 Net income attributable to common shareowners 6.12 8.61 6.82 |
Commercial Aerospace Industry35
Commercial Aerospace Industry Assets and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 : (dollars in millions) Committed 2017 2018 2019 2020 2021 Thereafter Notes and leases receivable $ 497 $ 51 $ 24 $ 47 $ 79 $ 32 $ 264 Commercial aerospace financing commitments $ 2,358 $ 435 $ 521 $ 416 $ 354 $ 287 $ 345 Other commercial aerospace commitments 12,063 860 973 738 706 730 8,056 Collaboration partners' share (4,608 ) (386 ) (479 ) (322 ) (271 ) (250 ) (2,900 ) Total commercial commitments $ 9,813 $ 909 $ 1,015 $ 832 $ 789 $ 767 $ 5,501 |
Inventories and Contracts in 36
Inventories and Contracts in Progress (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Table [Table Text Block] | (dollars in millions) 2016 2015 Raw materials $ 2,040 $ 2,037 Work-in-process 2,787 2,422 Finished goods 3,305 3,183 Contracts in progress 9,395 8,668 17,527 16,310 Less: Progress payments, secured by lien, on U.S. Government contracts (130 ) (239 ) Billings on contracts in progress (8,693 ) (7,936 ) $ 8,704 $ 8,135 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets [Text Block] | (dollars in millions) Estimated 2016 2015 Land $ 392 $ 384 Buildings and improvements 12-40 years 5,180 5,030 Machinery, tools and equipment 3-20 years 12,471 11,717 Other, including assets under construction 1,426 1,363 19,469 18,494 Accumulated depreciation (10,311 ) (9,762 ) $ 9,158 $ 8,732 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities Table [Text Block] | (dollars in millions) 2016 2015 Advances on sales contracts and service billings $ 4,217 $ 3,952 Accrued salaries, wages and employee benefits 1,608 1,543 Service and warranty accruals 555 546 Litigation and contract matters 488 482 Interest payable 395 391 Income taxes payable 382 2,498 Accrued property, sales and use taxes 289 292 Canadian government settlement - current portion 245 241 Insurance accruals 217 204 Accrued restructuring costs 210 334 Accrued workers compensation 208 212 Other 3,405 3,943 $ 12,219 $ 14,638 |
Borrowings and Lines of Credit
Borrowings and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Table Text Block] | (dollars in millions) 2016 2015 Short-term borrowings: Commercial paper $ 522 $ 727 Other borrowings 79 199 Total short-term borrowings $ 601 $ 926 |
Schedule of Weighted-average interest rates [Table Text Block] | The weighted-average interest rates applicable to short-term borrowings and total debt were as follows: 2016 2015 Average interest expense rate - average outstanding borrowings during the year: Short-term borrowings 1.3 % 0.6 % Total debt 4.1 % 4.1 % Average interest expense rate - outstanding borrowings as of December 31: Short-term borrowings 0.6 % 0.8 % Total debt 3.7 % 4.4 % |
Long-term Debt [Table Text Block] | (dollars in millions) 2016 2015 5.375% notes due 2017 1 — 1,000 1.800% notes due 2017 1 1,500 1,500 EURIBOR plus 0.80% floating rate notes due 2018 (€750 million principal value) 2 783 — 1.778% junior subordinated notes due 2018 1,100 1,100 6.800% notes due 2018 99 99 LIBOR plus 0.350% floating rate notes due 2019 3 350 — 1.500% notes due 2019 1 650 — 6.125% notes due 2019 1 — 1,250 8.875% notes due 2019 271 271 4.500% notes due 2020 1 1,250 1,250 4.875% notes due 2020 171 171 1.950% notes due 2021 1 750 — 1.125% notes due 2021 (€950 million principal value) 4 992 — 8.750% notes due 2021 250 250 3.100% notes due 2022 1 2,300 2,300 1.250% notes due 2023 (€750 million principal value) 4 783 817 1.875% notes due 2026 (€500 million principal value) 4 522 — 2.650% notes due 2026 1 1,150 — 7.100% notes due 2027 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 134 134 7.000% notes due 2038 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 1 850 850 3.750% notes due 2046 1 1,100 — Project financing obligations 155 191 Other (including capitalized leases) 189 306 Total principal long-term debt 23,299 19,439 Other (fair market value adjustments, discounts and debt issuance costs) 1 60 Total long-term debt 23,300 19,499 Less: current portion 1,603 179 Long-term debt, net of current portion $ 21,697 $ 19,320 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 The three-month EURIBOR rate as of December 30, 2016 was approximately -0.319%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. 3 The three-month LIBOR rate as of December 30, 2016 was approximately 0.998%. 4 We may redeem these notes, in whole or in part, at our option at any time. If redeemed earlier than three months prior to the stated maturity date, 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 15-30 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. |
Schedule of Principal Payments on Long-term Debt [Table Text Block] | (dollars in millions) 2017 $ 1,603 2018 2,012 2019 1,299 2020 1,460 2021 2,034 Thereafter 14,891 Total $ 23,299 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [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, 2016 and 2015 is provided below: (dollars in millions) Foreign Currency Translation Defined Benefit Pension and Postretirement Plans Unrealized Gains (Losses) on Available-for- Sale Securities Unrealized Hedging (Losses) Gains Accumulated Other Comprehensive (Loss) Income 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 ) Other comprehensive (loss) income before reclassifications, net (1,042 ) (247 ) 119 54 (1,116 ) Amounts reclassified, pre-tax — 535 (94 ) 171 612 Tax (benefit) expense reclassified — (198 ) 35 (48 ) (211 ) Balance at December 31, 2016 $ (3,480 ) $ (5,045 ) $ 353 $ (162 ) $ (8,334 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 United States $ 2,534 $ 2,782 $ 4,165 Foreign 4,599 3,685 4,547 $ 7,133 $ 6,467 $ 8,712 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax expense (benefit) for the years ended December 31, 2016, 2015 and 2014 consisted of the following components: (dollars in millions) 2016 2015 2014 Current: United States: Federal $ 30 $ 328 $ 319 State (21 ) (37 ) 38 Foreign 1,290 1,158 1,484 1,299 1,449 1,841 Future: United States: Federal 318 712 421 State 134 109 (23 ) Foreign (54 ) (159 ) 5 398 662 403 Income tax expense $ 1,697 $ 2,111 $ 2,244 Attributable to items credited (charged) to equity $ (299 ) $ (114 ) $ 1,535 |
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: 2016 2015 2014 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % Tax on international activities (8.1 )% (2.0 )% (3.3 )% Tax audit settlements (2.9 )% — (4.3 )% Other (0.2 )% (0.4 )% (1.6 )% Effective income tax rate 23.8 % 32.6 % 25.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2016 and 2015 are as follows: (dollars in millions) 2016 2015 Future income tax benefits: Insurance and employee benefits $ 2,382 $ 2,650 Other asset basis differences 1,098 1,199 Other liability basis differences 1,403 1,543 Tax loss carryforwards 494 528 Tax credit carryforwards 873 872 Valuation allowances (545 ) (591 ) $ 5,705 $ 6,201 Future income taxes payable: Other asset basis differences $ 5,376 $ 5,324 Other items, net 364 531 $ 5,740 $ 5,855 |
Summary Of Tax Credit Carryforwards [Table Text Block] | At December 31, 2016 , 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: 2017-2021 $ 12 $ 317 2022-2026 13 187 2027-2036 219 363 Indefinite 629 1,780 Total $ 873 $ 2,647 |
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, 2016, 2015 and 2014 is as follows: (dollars in millions) 2016 2015 2014 Balance at January 1 $ 1,169 $ 1,089 $ 1,223 Additions for tax positions related to the current year 69 206 164 Additions for tax positions of prior years 167 99 435 Reductions for tax positions of prior years (61 ) (101 ) (47 ) Settlements (258 ) (124 ) (686 ) Balance at December 31 $ 1,086 $ 1,169 $ 1,089 Gross interest expense related to unrecognized tax benefits $ 41 $ 39 $ 180 Total accrued interest balance at December 31 $ 185 $ 176 $ 292 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
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 2016 2015 Pending/ Implemented 2016 2015 2014 Surcharge Imposed Expiration Date of Collective-Bargaining Agreement National Elevator Industry Pension Plan 23-2694291 Green Green No $ 100 $ 88 $ 79 No July 8, 2017 Other funds 31 32 34 $ 131 $ 120 $ 113 |
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) 2016 2015 2014 Continuing operations $ 152 $ 158 $ 219 Discontinued operations 1 17 21 Total compensation cost recognized $ 153 $ 175 $ 240 |
Schedule of Stock Options Roll Forward [Table Text Block] | A summary of the transactions under all long-term incentive plans for the year ended December 31, 2016 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, 2015 1,879 $ 86.19 38,111 $ 83.58 2,170 $ 101.78 1,467 Granted 397 95.57 4,740 95.40 687 95.29 698 Exercised / earned (239 ) 71.57 (5,760 ) 69.19 (372 ) 84.03 (339 ) Cancelled / Other (14 ) 92.02 (678 ) 95.03 (518 ) 85.92 207 December 31, 2016 2,023 $ 89.72 36,413 $ 87.18 1,967 $ 107.05 2,033 * weighted-average exercise price ** weighted-average grant stock price |
Disclosure Of Share Based Compensation Arrangements By Share Based Payment Award Text Block | 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, 2016 : 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 38,314 $ 86.58 $ 917 5.4 years 25,574 $ 77.64 $ 824 4.2 years Performance Share Units/Restricted Stock 2,376 — 260 2.8 years * weighted-average exercise price per share ** weighted-average contractual remaining term in years |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table indicates the assumptions used in estimating fair value for the years ended December 31, 2016, 2015 and 2014 . Lattice-based option models incorporate ranges of assumptions for inputs, those ranges are as follows: 2016 2015 2014 Expected volatility 20% 20% - 23% 22% - 26% Weighted-average volatility 20 % 21 % 26 % Expected term (in years) 6.5 6.0 - 6.8 7.6 - 8.0 Expected dividend yield 2.7 % 2.2 % 2.2 % Risk-free rate 0.2% - 2.6% 0.0% - 2.2% 0.0% - 3.1% |
Pension Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Text Block] | (dollars in millions) 2016 2015 Change in Benefit Obligation: Beginning balance $ 35,428 $ 37,853 Service cost 383 493 Interest cost 1,183 1,399 Actuarial loss (gain) 1,831 (1,716 ) Total benefits paid (1,660 ) (1,796 ) Net settlement, curtailment and special termination benefits (1,566 ) (55 ) Plan amendments 17 39 Other (693 ) (789 ) Ending balance $ 34,923 $ 35,428 Change in Plan Assets: Beginning balance $ 31,011 $ 32,738 Actual return on plan assets 3,202 265 Employer contributions 384 520 Benefits paid (1,660 ) (1,796 ) Settlements (1,632 ) (59 ) Other (750 ) (657 ) Ending balance $ 30,555 $ 31,011 Funded Status: Fair value of plan assets $ 30,555 $ 31,011 Benefit obligations (34,923 ) (35,428 ) Funded status of plan $ (4,368 ) $ (4,417 ) Amounts Recognized in the Consolidated Balance Sheet Consist of: Noncurrent assets $ 451 $ 742 Current liability (72 ) (71 ) Noncurrent liability (4,747 ) (5,088 ) Net amount recognized $ (4,368 ) $ (4,417 ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial loss $ 7,941 $ 8,224 Prior service credit (6 ) (57 ) Net amount recognized $ 7,935 $ 8,167 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | Information for pension plans with accumulated benefit obligations in excess of plan assets: (dollars in millions) 2016 2015 Projected benefit obligation $ 32,732 $ 30,915 Accumulated benefit obligation 32,095 30,362 Fair value of plan assets 27,943 25,827 |
Schedule of Net Benefit Costs [Table Text Block] | The components of the net periodic pension cost are as follows: (dollars in millions) 2016 2015 2014 Pension Benefits: Service cost $ 383 $ 493 $ 487 Interest cost 1,183 1,399 1,517 Expected return on plan assets (2,202 ) (2,264 ) (2,215 ) Amortization of prior service credit (33 ) (11 ) (8 ) Recognized actuarial net loss 572 882 429 Net settlement, curtailment and special termination benefits loss 498 150 13 Net periodic pension cost - employer $ 401 $ 649 $ 223 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2016 are as follows: (dollars in millions) Current year actuarial loss $ 831 Amortization of actuarial loss (572 ) Current year prior service cost 17 Amortization of prior service credit 33 Net settlement and curtailment loss (436 ) Other (105 ) Total recognized in other comprehensive loss $ (232 ) Net recognized in net periodic pension cost and other comprehensive loss $ 169 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in 2017 is as follows: (dollars in millions) Net actuarial loss $ 571 Prior service credit (36 ) $ 535 |
Schedule of Assumptions Used [Table Text Block] | 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 2016 2015 2016 2015 2014 Discount rate PBO 3.8 % 4.1 % 4.1 % 3.8 % 4.7 % Interest cost 1 — — 3.4 % — — Service cost 1 — — 3.8 % — — Salary scale 4.1 % 4.2 % 4.2 % 4.2 % 4.2 % Expected return on plan assets — — 7.3 % 7.6 % 7.6 % Note 1 The 2016 discount rates used to measure the service cost and interest cost applies to our significant plans. The PBO discount rate is used for the service cost and interest cost measurements for non-significant plans. |
Schedule of Allocation of Plan Assets [Table Text Block] | The fair values of pension plan assets at December 31, 2016 and 2015 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 $ 4,682 $ 3 $ — $ — $ 4,685 Global Equity Commingled Funds 1 — 367 — — 367 Enhanced Global Equities 2 168 1,494 — — 1,662 Global Equity Funds at net asset value 8 — — — 7,090 7,090 Private Equities 3,8 — — 122 1,239 1,361 Fixed Income Securities Governments 260 54 — — 314 Corporate Bonds — 7,637 — — 7,637 Fixed Income Securities 8 — — — 2,788 2,788 Real Estate 4,8 — 17 1,285 513 1,815 Other 5,8 — 289 — 1,819 2,108 Cash & Cash Equivalents 6,8 100 75 — 121 296 Subtotal $ 5,210 $ 9,936 $ 1,407 $ 13,570 30,123 Other Assets & Liabilities 7 432 Total at December 31, 2016 $ 30,555 Public Equities Global Equities $ 5,884 $ — $ — $ — $ 5,884 Global Equity Commingled Funds 1 — 779 — — 779 Enhanced Global Equities 2 237 616 — — 853 Global Equity 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 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. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | 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, 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 Realized gains 46 19 65 Unrealized gains relating to instruments still held in the reporting period 5 18 23 Purchases, sales, and settlements, net (111 ) 83 (28 ) Balance, December 31, 2016 $ 122 $ 1,285 $ 1,407 |
Other Postretirement Benefit Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Text Block] | (dollars in millions) 2016 2015 Change in Benefit Obligation: Beginning balance $ 890 $ 952 Service cost 3 3 Interest cost 34 34 Actuarial gain (48 ) — Total benefits paid (97 ) (104 ) Other 23 5 Ending balance $ 805 $ 890 Change in Plan Assets: Beginning balance $ — $ — Employer contributions 80 84 Benefits paid (97 ) (104 ) Other 17 20 Ending balance $ — $ — Funded Status: Fair value of plan assets $ — $ — Benefit obligations (805 ) (890 ) Funded status of plan $ (805 ) $ (890 ) Amounts Recognized in the Consolidated Balance Sheet Consist of: Current liability $ (78 ) $ (84 ) Noncurrent liability (727 ) (806 ) Net amount recognized $ (805 ) $ (890 ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Net actuarial gain $ (152 ) $ (109 ) Prior service credit (5 ) (1 ) Net amount recognized $ (157 ) $ (110 ) |
Schedule of Net Benefit Costs [Table Text Block] | The components of net periodic benefit cost are as follows: (dollars in millions) 2016 2015 2014 Other Postretirement Benefits: Service cost $ 3 $ 3 $ 3 Interest cost 34 34 41 Amortization of prior service credit — — (1 ) Recognized actuarial net gain (4 ) (4 ) (4 ) Net settlement and curtailment gain — (1 ) — Net periodic other postretirement benefit cost $ 33 $ 32 $ 39 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Other changes in plan assets and benefit obligations recognized in other comprehensive loss in 2016 are as follows: (dollars in millions) Current year actuarial gain $ (46 ) Current year prior service credit (4 ) Amortization of actuarial net gain 4 Other (1 ) Total recognized in other comprehensive loss $ (47 ) Net recognized in net periodic other postretirement benefit cost and other comprehensive loss $ (14 ) |
Schedule of Assumptions Used [Table Text Block] | 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 2016 2015 2016 2015 2014 Discount rate 3.8 % 4.0 % 4.0 % 3.8 % 4.4 % |
Schedule of Health Care Cost Trend Rates [Table Text Block] | Assumed health care cost trend rates are as follows: 2016 2015 Health care cost trend rate assumed for next year 6.5 % 6.5 % 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 2022 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | A one-percentage-point change in assumed health care cost trend rates would have the following effects: 2016 One-Percentage-Point (dollars in millions) Increase Decrease Effect on total service and interest cost $ 3 $ (2 ) Effect on postretirement benefit obligation 46 (39 ) |
Restructuring and Other Costs (
Restructuring and Other Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Related Costs [Table Text Block] | We recorded charges in the segments as follows: (dollars in millions) Otis $ 59 UTC Climate, Controls & Security 65 Pratt & Whitney 111 UTC Aerospace Systems 49 Eliminations and other 6 Total $ 290 Restructuring charges incurred in 2016 primarily relate to actions initiated during 2016 and 2015 , and were recorded as follows: (dollars in millions) Cost of sales $ 187 Selling, general & administrative 78 Other expense 25 Total 290 |
Current Year Actions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
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 2016 restructuring actions: (dollars in millions) Severance Facility Exit, Lease Termination & Other Costs Total Net pre-tax restructuring costs $ 166 $ 76 $ 242 Utilization and foreign exchange (103 ) (30 ) (133 ) Balance at December 31, 2016 $ 63 $ 46 $ 109 |
Schedule of Restructuring and Related Costs [Table Text Block] | The following table summarizes expected, incurred and remaining costs for the 2016 restructuring actions by segment: (dollars in millions) Expected Costs Cost Incurred During 2016 Remaining Costs at December 31, 2016 Otis $ 57 $ (48 ) $ 9 UTC Climate, Controls & Security 87 (45 ) 42 Pratt & Whitney 118 (118 ) — UTC Aerospace Systems 92 (31 ) 61 Total $ 354 $ (242 ) $ 112 |
Prior Year Actions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
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 2015 restructuring actions: (dollars in millions) Severance Facility Exit, Lease Termination and Other Costs Total Restructuring accruals at January 1, 2016 $ 183 $ 23 $ 206 Net pre-tax restructuring costs 17 23 40 Utilization and foreign exchange (158 ) (22 ) (180 ) Balance at December 31, 2016 $ 42 $ 24 $ 66 |
Schedule of Restructuring and Related Costs [Table Text Block] | The following table summarizes expected, incurred and remaining costs for the 2015 programs by segment: (dollars in millions) Expected Costs Costs Incurred During 2015 (Costs Incurred) Reversals During 2016 Remaining Costs at December 31, 2016 Otis $ 51 $ (35 ) $ (14 ) $ 2 UTC Climate, Controls & Security 139 (83 ) (24 ) 32 Pratt & Whitney 62 (82 ) 20 — UTC Aerospace Systems 129 (105 ) (16 ) 8 Eliminations and other 27 (21 ) (6 ) — Total $ 408 $ (326 ) $ (40 ) $ 42 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 which consist solely of foreign exchange contracts: Asset Derivatives Liability Derivatives (dollars in millions) 2016 2015 2016 2015 Derivatives designated as hedging instruments $ 15 $ 4 $ 196 $ 428 Derivatives not designated as hedging instruments 155 97 158 105 |
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) 2016 2015 Gain (loss) recorded in Accumulated other comprehensive loss $ 75 $ (415 ) Loss reclassified from Accumulated other comprehensive loss into Product sales (effective portion) $ 171 $ 234 |
Other Operating Income (Expense) [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | The effect on the Consolidated Statement of Operations of foreign exchange contracts not designated as hedging instruments was as follows: Year Ended December 31, (dollars in millions) 2016 2015 Gain recognized in Other income, net $ 56 $ 63 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | tables provide the valuation hierarchy classification of assets and liabilities that are carried at fair value and measured on a recurring and non-recurring basis in our Consolidated Balance Sheet as of December 31, 2016 and 2015 : 2016 (dollars in millions) Total Level 1 Level 2 Level 3 Recurring fair value measurements: Available-for-sale securities $ 987 $ 987 $ — $ — Derivative assets 170 — 170 — Derivative liabilities (354 ) — (354 ) — 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 ) — |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table provides carrying amounts and fair values of financial instruments that are not carried at fair value at December 31, 2016 and 2015 : December 31, 2016 December 31, 2015 (dollars in millions) Carrying Fair Carrying Fair Long-term receivables $ 127 $ 121 $ 122 $ 107 Customer financing notes receivable 437 420 403 403 Short-term borrowings (600 ) (600 ) (926 ) (926 ) Long-term debt (excluding capitalized leases) (23,280 ) (25,110 ) (19,476 ) (21,198 ) Long-term liabilities (457 ) (427 ) (458 ) (419 ) 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, 2016 : (dollars in millions) Total Level 1 Level 2 Level 3 Long-term receivables $ 121 $ — $ 121 $ — Customer financing notes receivable 420 — 420 — Short-term borrowings (600 ) — (522 ) (78 ) Long-term debt (excluding capitalized leases) (25,110 ) — (24,906 ) (204 ) Long-term liabilities (427 ) — (427 ) — |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities [Table Text Block] | The carrying amounts and classification of assets and liabilities for variable interest entities in our Consolidated Balance Sheet as of December 31, 2016 and 2015 are as follows: (dollars in millions) 2016 2015 Current assets $ 2,722 $ 1,920 Noncurrent assets 1,334 1,102 Total assets $ 4,056 $ 3,022 Current liabilities $ 2,422 $ 1,931 Noncurrent liabilities 1,636 1,355 Total liabilities $ 4,058 $ 3,286 |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations [Table Text Block] | As of December 31, 2016 and 2015 , the following financial guarantees were outstanding: December 31, 2016 December 31, 2015 (dollars in millions) Maximum Carrying Maximum Carrying Commercial aerospace financing arrangements (see Note 5) $ 348 $ 14 $ 365 $ 12 Credit facilities and debt obligations (expire 2017 to 2028) 270 15 241 — Performance guarantees 55 4 55 3 |
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, 2016 and 2015 are as follows: (dollars in millions) 2016 2015 Balance as of January 1 $ 1,212 $ 1,264 Warranties and performance guarantees issued 246 291 Settlements made (240 ) (259 ) Other (19 ) (84 ) Balance as of December 31 $ 1,199 $ 1,212 |
Segment Financial Data (Tables)
Segment Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment [Table Text Block] | Net Sales Operating Profits (dollars in millions) 2016 2015 2014 2016 2015 2014 Otis $ 11,893 $ 11,980 $ 12,982 $ 2,147 $ 2,338 $ 2,640 UTC Climate, Controls & Security 16,851 16,707 16,823 2,956 2,936 2,782 Pratt & Whitney 14,894 14,082 14,508 1,545 861 2,000 UTC Aerospace Systems 14,465 14,094 14,215 2,298 1,888 2,355 Total segment 58,103 56,863 58,528 8,946 8,023 9,777 Eliminations and other (859 ) (765 ) (628 ) (368 ) (268 ) 304 General corporate expenses — — — (406 ) (464 ) (488 ) Consolidated $ 57,244 $ 56,098 $ 57,900 $ 8,172 $ 7,291 $ 9,593 Total Assets Capital Expenditures Depreciation & Amortization (dollars in millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Otis $ 8,867 $ 8,846 $ 9,313 $ 94 $ 83 $ 87 $ 171 $ 176 $ 209 UTC Climate, Controls & Security 21,787 21,287 21,217 340 261 228 354 337 349 Pratt & Whitney 22,971 20,336 18,143 725 692 692 550 476 390 UTC Aerospace Systems 34,093 34,736 35,034 452 537 533 807 796 807 Total segment 87,718 85,205 83,707 1,611 1,573 1,540 1,882 1,785 1,755 Eliminations and other 1,988 2,279 2,631 88 79 54 80 78 65 Consolidated $ 89,706 $ 87,484 $ 86,338 $ 1,699 $ 1,652 $ 1,594 $ 1,962 $ 1,863 $ 1,820 |
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) 2016 2015 2014 2016 2015 2014 2016 2015 2014 United States Operations $ 32,335 $ 30,989 $ 30,814 $ 4,566 $ 4,391 $ 5,067 $ 4,822 $ 4,517 $ 4,211 International Operations Europe 11,151 10,945 12,587 1,933 1,882 2,238 1,538 1,525 1,577 Asia Pacific 8,260 8,425 8,746 1,484 1,641 1,712 999 994 995 Other 5,479 5,584 5,511 963 109 760 1,325 1,273 1,379 Eliminations and other 19 155 242 (774 ) (732 ) (184 ) 474 423 430 Consolidated $ 57,244 $ 56,098 $ 57,900 $ 8,172 $ 7,291 $ 9,593 $ 9,158 $ 8,732 $ 8,592 |
Schedule Of Revenue By Major Customers By Reporting Segments [Table Text Block] | (dollars in millions) 2016 2015 2014 Pratt & Whitney $ 3,187 $ 2,945 $ 3,126 UTC Aerospace Systems 2,301 2,409 2,459 Other 138 276 294 $ 5,626 $ 5,630 $ 5,879 |
Revenue from External Customers by Geographic Areas [Table Text Block] | (dollars in millions) 2016 2015 2014 Europe $ 5,065 $ 4,366 $ 4,137 Asia Pacific 3,449 2,902 3,469 Other 2,313 2,473 2,670 $ 10,827 $ 9,741 $ 10,276 |
Selected Quarterly Financial 49
Selected Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule Of Quarterly Financial Information [Table Text Block] | COMPARATIVE STOCK DATA (UNAUDITED) 2016 2015 (common stock) High Low Dividend High Low Dividend First quarter $ 100.25 $ 84.66 $ 0.64 $ 124.11 $ 111.52 $ 0.64 Second quarter $ 105.89 $ 97.21 $ 0.66 $ 119.14 $ 110.93 $ 0.64 Third quarter $ 109.69 $ 100.10 $ 0.66 $ 111.58 $ 86.82 $ 0.64 Fourth quarter $ 110.98 $ 98.67 $ 0.66 $ 100.80 $ 88.36 $ 0.64 SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) 2016 Quarters 2015 Quarters (dollars in millions, except per share amounts) First Second Third Fourth First Second Third Fourth Net Sales $ 13,357 $ 14,874 $ 14,354 $ 14,659 $ 13,320 $ 14,690 $ 13,788 $ 14,300 Gross margin 3,703 4,133 4,012 3,936 3,814 4,218 3,988 3,647 Net income attributable to common shareowners 1,183 1,379 1,480 1,013 1,426 1,542 1,362 3,278 Earnings per share of Common Stock: Basic - net income $ 1.43 $ 1.67 $ 1.80 $ 1.26 $ 1.60 $ 1.76 $ 1.55 $ 3.86 Diluted - net income $ 1.42 $ 1.65 $ 1.78 $ 1.25 $ 1.58 $ 1.73 $ 1.54 $ 3.86 |
Performance Graph - Unaudited (
Performance Graph - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Performance Graph [Abstract] | |
Cumulative Total Shareholder Return [Table Text Block] | COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN December 2011 2012 2013 2014 2015 2016 United Technologies Corporation $ 100.00 $ 115.10 $ 163.30 $ 168.50 $ 144.23 $ 168.81 S&P 500 Index $ 100.00 $ 116.00 $ 153.57 $ 174.60 $ 177.01 $ 198.18 Dow Jones Industrial Average $ 100.00 $ 110.24 $ 142.93 $ 157.28 $ 157.61 $ 183.61 |
Schedule II - Valuation and Q51
Schedule II - Valuation and Qualifying Accounts [Schedule] Valuation and Qualifying Accounts [Details] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts and Other Customer Financing Activity [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance December 31 | $ 467 | $ 553 | $ 494 | $ 538 |
Provision charged to income | 64 | 137 | 93 | |
Doubtful accounts written off (net) | 105 | 59 | 91 | |
Other adjustments | (45) | (19) | (46) | |
Future Income Tax Benefits - Valuation Allowance [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance December 31 | 545 | 591 | 612 | $ 942 |
Other adjustments | (17) | (29) | (366) | |
Additions charged to income tax expense | 32 | 42 | 91 | |
Reductions credited to income tax expense | $ 61 | 41 | $ 55 | |
Additions charged to goodwill, due to acquisitions | $ 7 |
Summary of Accounting Princip52
Summary of Accounting Principles (Details) € in Millions, $ in Millions | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Accounting Policies [Abstract] | ||||
Restricted Cash And Cash Equivalents | $ 32 | $ 45 | $ 255 | |
Unbilled Contracts Receivable | 2,786 | 2,318 | ||
Contract Receivable Retainage | 106 | 141 | ||
Excess Of Replacement Or Current Costs Over Stated LIFO Value | 114 | 127 | ||
Hedging Liabilities, Noncurrent | € | € 2,950 | |||
Hedging Liabilities, Current | € | € 500 | |||
Commercial Aerospace [Member] | ||||
Accounting Policies [Abstract] | ||||
Unbilled Contracts Receivable | $ 1,169 | $ 1,091 |
Summary of Accounting Princip53
Summary of Accounting Principles Summary of Accounting Principles (Marketable Securities) (Details) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Unrealized gains on available for sale securities | $ 353 |
ASU 2016-13 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 328): Measurement of Credit Losses on Financial Instruments. This ASU requires that certain financial assets, including those measured at amortized cost basis, be presented at the net amount expected to be collected, utilizing an impairment model known as the current expected credit loss model. In addition, available-for-sale debt securities will no longer use the concept of "other than temporary" when considering credit losses. Under this ASU, entities must use an allowance approach for credit losses on available-for-sale debt securities, and the allowance must be limited to the amount at which a security's fair value is below the amortized cost of the asset. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this ASU. |
ASU 2016-01 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Upon adoption, investments that do not result in consolidation and are not accounted for under the equity method generally must be carried at fair value, with changes in fair value recognized in net income. As discussed in Note 10, we have approximately $353 million of unrealized gains on these securities recorded in Accumulated other comprehensive loss in our Consolidated Balance Sheet as of December 31, 2016. To the extent currently unrealized gains or losses on these investments are not realized through sale or other actions prior to the date of adoption, these amounts would be recorded directly to retained earnings upon adoption. The provisions of this ASU are effective for years beginning after December 15, 2017. |
Summary of Accounting Princip54
Summary of Accounting Principles (Indefinite Lived Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
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 | 50 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 Princip55
Summary of Accounting Principles (Long-Term Receivables) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Long Term Receivable | $ 1,356 | $ 1,354 |
Percentage Long Term Receivables High Credit Risk | 13.00% | |
Financing Receivable, Reserve for Credit Losses and Exposure, Individually Evaluated For Impairment | $ 17 | 18 |
Long-term Trade Accounts Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Long Term Receivable | 926 | 903 |
Notes and Leases Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Long Term Receivable | $ 430 | $ 451 |
Summary of Accounting Princip56
Summary of Accounting Principles (Revenue Recognition) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase (Decrease) in Operating Profit Due to Contract Reestimates | $ (157) | |
Inventory Costs in Excess of Average Cost Per Unit | $ 233 | $ 13 |
ASU 2015-14 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date - delays the effective date of ASU 2014-09 by one year. | |
ASU 2016-08 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) - clarifies how an entity should identify the unit of accounting (i.e. the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. | |
ASU 2016-10 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing - clarifies the guidance surrounding licensing arrangements and the identification of performance obligations. | |
ASU 2016-12 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | ASU 2016-12, Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients - addresses implementation issues raised by stakeholders concerning collectability, noncash consideration, presentation of sales tax, and transition. | |
ASU 2016-20 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | ASU 2016-20, Revenue from Contracts with Customers (Topic 606), Technical Corrections and Improvements - addresses loan guarantee fees, impairment testing of contract costs, provisions for losses on certain contracts, and various disclosures. | |
ASU 2014-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Description | Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. ASU 2014-09 and its related amendments (collectively, the New Revenue Standard) are 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 adopting recognized through retained earnings at the date of adoption. The New Revenue Standard is expected to change the revenue recognition practices for a number of revenue streams across our businesses, although the most significant impacts will be concentrated within our aerospace units. Several businesses, which currently account for revenue on a “point-in-time basis,” will be required to use an “over time” model as they meet one or more of the mandatory criteria established in the New Revenue Standard. Revenue will be recognized based on percentage-of-completion for repair contracts within both Otis and UTC Climate, Controls & Security; certain U.S. Government aerospace contracts; and aerospace aftermarket service work performed on a time and materials basis. For these businesses, unrecognized sales and operating profits related to the satisfied portion of the performance obligations of contracts in process as of the date of adoption will be recorded through retained earnings. The ongoing effect of recording revenue on a percentage-of-completion basis within these businesses is not expected to be material. In addition to the forgoing, our aerospace businesses will also incur changes related to the timing of manufacturing cost recognition and certain engineering and development costs. In most circumstances, our commercial aerospace businesses will identify the performance obligation, or the unit of accounting, as the individual original equipment (OEM) unit; revenues and costs to manufacture each unit will be recognized upon OEM unit delivery. Under current practice the unit of accounting is the contract and early-contract OEM unit costs in excess of the average expected over the contact are capitalized and amortized over lower-cost units later in the contract. With the adoption of the New Revenue Standard, any deferred unit costs in excess of the contract average will be eliminated through retained earnings and will not be amortized into future earnings. As of December 31, 2016, capitalized deferred unit costs in excess of the contract average are $233 million, which is expected to increase in 2017 prior to adoption of the New Revenue Standard. In regards to costs incurred for the engineering and development of aerospace products under contract with customers, we generally expense as incurred unless there is a contractually guaranteed right of recovery. Any customer funding received for such efforts is recognized when earned, with the corresponding costs recognized as cost of sales. Under the New Revenue Standard, customer funding of OEM product engineering and development must be deferred and recognized as revenue as the OEM products are delivered to the customer. There is currently less clarity regarding the accounting for the associated product engineering and development costs. As such, we are continuing to evaluate whether such costs should continue to be expensed or capitalized as contract fulfillment costs and subsequently amortized. For contracts that are open as of the adoption date, previously recognized customer funding will be established as a contract liability. We continue to evaluate the implications of the standard change. We intend to adopt the New Revenue Standard effective January 1, 2018 using the modified retrospective approach. |
Summary of Accounting Princip57
Summary of Accounting Principles (Collaborative Arrangements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 Products Sold [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborator Share Of Sales | $ 1,700 | $ 1,547 | $ 1,778 |
Collaborator Share Of Program Costs | 108 | 104 | 103 |
Cost of Services Sold [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborator Share Of Sales | 675 | 652 | 354 |
Research and Development [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborator Share Of Program Costs | 184 | 248 | 122 |
Selling General and Administrative [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaborator Share Of Program Costs | $ 5 | $ 5 | $ 4 |
Summary of Accounting Princip58
Summary of Accounting Principles Accounting Pronouncements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
ASU 2016-16 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This ASU requires the income tax consequences of an intra-entity transfer of an asset, other than inventory, to be recognized when the transfer occurs. Two common examples of assets included in the scope of this update are intellectual property and property, plant, and equipment. The provisions of this ASU are effective for years beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of this ASU. |
ASU 2016-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU is intended to reduce diversity in practice in presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues, including requirements that 1) cash payments for debt prepayment or debt extinguishment costs be classified as cash outflows for financing activities; and 2) for cash receipts and payments that have aspects of more than one class of cash flows, each separately identifiable source or use within the cash receipts and payments should be classified on the basis of their underlying nature in financing, investing, or operating activities. Cash flow amounts for all periods presented have been updated to comply with the retrospective transition method, required by these ASUs upon adoption. As discussed in Note 9, for the year ended December 31, 2016, approximately $164 million in debt extinguishment costs have been classified as financing cash outflows in accordance with these updates. Additionally, cash flows provided by operating activities of continuing operations, attributable to changes in inventories and contracts in progress, and cash flows used in investing activities of continuing operations attributable to increases in customer financing assets for the year ended December 31, 2015 increased by approximately $78 million as a result of the required retrospective transition method of these updates. Other updates made as a result of adoption of these ASUs had an immaterial impact to the Consolidated Statement of Cash Flows. |
ASU 2016-18 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This ASU requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The provisions of ASU 2016-15 and ASU 2016-18 are effective for years beginning after December 15, 2017, with early adoption permitted. We have elected to early adopt the requirements of these ASUs effective December 31, 2016. |
ASU 2016-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which amends the accounting for employee share-based payment transactions to require recognition of the tax effects resulting from the settlement of stock-based awards as income tax expense or benefit in the income statement in the reporting period in which they occur. The ASU also requires that all tax-related cash flows resulting from share-based payments, including the excess tax benefits related to the settlement of stock-based awards, be classified as cash flows from operating activities, and that cash paid by directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows. In addition, the ASU also allows companies to make an accounting policy election to either estimate the number of awards that are expected to vest, consistent with current U.S. GAAP, or account for forfeitures when they occur. The new standard is effective for annual reporting periods beginning after December 15, 2016 with early adoption permitted. We elected to early adopt the requirements of the amended standard in the third quarter of 2016 and are therefore required to report the impacts as though adopted on January 1, 2016. Accordingly, we recognized additional income tax benefits of approximately $22 million for the year ended December 31, 2016. In addition, we recognized the additional income tax benefits and cash paid by directly withholding shares for tax withholding purposes of approximately $19 million for the year ended December 31, 2016 as an increase in net cash flows provided by operating activities of continuing operations, and an increase in net cash flows used in financing activities of continuing operations. There is no change to our accounting policy with respect to estimation of forfeitures. |
ASU 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Description | In February 2016, the FASB issued ASU 2016- 02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statement of Operations. In addition, this standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as financing. If the lessor doesn’t convey risks and rewards or control, the lease is treated as operating. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases and lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are still evaluating the impact of our pending adoption of the new standard on our consolidated financial statements, we expect that upon adoption we will recognize ROU assets and lease liabilities and that the amounts could be material. We do not expect the ASU to have a material impact on our cash flows or results of operations. |
ASU 2016-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ (22) |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (19) |
ASU 2016-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (78) |
Business Acquisitions, Dispos59
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Acquisition Cost Of Acquired Entities and Interest in Affiliates | $ 712 | $ 556 | $ 530 |
Noncash Or Part Noncash Acquisition Debt Assumed | $ 2 | $ 18 | $ 128 |
Sikorsky [Member] | |||
Business Acquisition [Line Items] | |||
Disposal Date | Nov. 6, 2015 | ||
Proceeds from Divestiture of Businesses | $ 9,100 |
Business Acquisitions, Dispos60
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Goodwill | $ 27,059 | $ 27,301 |
Goodwill resulting from business combinations | 568 | |
Goodwill, foreign currency translation and other | (810) | |
Otis [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,575 | 1,566 |
Goodwill resulting from business combinations | 60 | |
Goodwill, foreign currency translation and other | (51) | |
UTC Climate, Controls and Security [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 9,487 | 9,458 |
Goodwill resulting from business combinations | 473 | |
Goodwill, foreign currency translation and other | (444) | |
Pratt and Whitney [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,511 | 1,515 |
Goodwill resulting from business combinations | 0 | |
Goodwill, foreign currency translation and other | (4) | |
UTC Aerospace Systems [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 14,483 | 14,759 |
Goodwill resulting from business combinations | 35 | |
Goodwill, foreign currency translation and other | (311) | |
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 | 27,056 | $ 27,298 |
Goodwill resulting from business combinations | 568 | |
Goodwill, foreign currency translation and other | $ (810) |
Business Acquisitions, Dispos61
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Trademarks and other | $ 2,025 | $ 2,069 |
Total | 20,920 | 20,173 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 18,895 | 18,104 |
Accumulated Amortization | 5,236 | 4,570 |
Service Portfolios [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 1,995 | 1,977 |
Accumulated Amortization | 1,344 | 1,307 |
Patents and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 378 | 361 |
Accumulated Amortization | 201 | 189 |
Collaboration [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,724 | 3,336 |
Accumulated Amortization | 211 | 86 |
Customer Relationships and Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 12,798 | 12,430 |
Accumulated Amortization | $ 3,480 | $ 2,988 |
Business Acquisitions, Dispos62
Business Acquisitions, Dispositions, Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Amortization Expense, Year 1 | $ 809 | ||
Amortization Expense, Year 2 | 865 | ||
Amortization Expense, Year 3 | 878 | ||
Amortization Expense, Year 4 | 859 | ||
Amortization Expense, Year 5 | 829 | ||
Amortization of Intangible Assets | $ 778 | $ 722 | $ 713 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (Loss) from Divestiture of Business | $ 13 | $ 6,042 | $ 0 |
Income tax expense | 24 | 2,684 | 20 |
Net cash flows (used in) provided by discontinued operations | (2,526) | $ 8,619 | 217 |
Sikorsky [Member] | |||
Income Statement by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Date | Nov. 6, 2015 | ||
Proceeds from Divestiture of Businesses | $ 9,100 | ||
Gain (Loss) from Divestiture of Business | 13 | ||
Income tax expense | 24 | ||
Net cash flows (used in) provided by discontinued operations | $ 2,500 | ||
Net sales to Sikorsky | 138 | 235 | |
Purchases from Sikorsky, cost of products and services sold | $ 25 | $ 17 |
Discontinued Operations (Income
Discontinued Operations (Income Statement Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Net Sales | $ 0 | $ 4,949 | $ 7,452 |
Costs of Sales | 0 | 4,152 | 6,801 |
Research and development | 0 | 150 | 160 |
Selling, general and administrative | (1) | 315 | 328 |
Pension curtailment | 0 | 110 | 0 |
Other income, net | 0 | 30 | 12 |
Income from operations | 1 | 252 | 175 |
Gain on disposal | 13 | 6,042 | 0 |
Income Tax Expense | 24 | 2,684 | 20 |
Net (loss) income from discontinued operations | $ (10) | $ 3,610 | $ 155 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Antidilutive securities excluded from computation of earnings per share amount | 14,500,000 | 9,700,000 | 3,500,000 | ||||||||
Net Income (Loss) Attributable to Common Shareowners | |||||||||||
Net income from continuing operations | $ 5,065 | $ 3,996 | $ 6,066 | ||||||||
Net (loss) income from discontinued operations | (10) | 3,612 | 154 | ||||||||
Net income attributable to common shareowners | $ 1,013 | $ 1,480 | $ 1,379 | $ 1,183 | $ 3,278 | $ 1,362 | $ 1,542 | $ 1,426 | $ 5,055 | $ 7,608 | $ 6,220 |
Basic weighted average number of shares outstanding | 818,200,000 | 872,700,000 | 898,300,000 | ||||||||
Stock Awards | 7,900,000 | 10,500,000 | 13,300,000 | ||||||||
Diluted weighted average number of shares outstanding | 826,100,000 | 883,200,000 | 911,600,000 | ||||||||
Earnings Per Share of Common Stock - Basic | |||||||||||
Net income from continuing operations | $ 6.19 | $ 4.58 | $ 6.75 | ||||||||
Net (loss) income from discontinued operations | (0.01) | 4.14 | 0.17 | ||||||||
Net income attributable to common shareowners | $ 1.26 | $ 1.80 | $ 1.67 | $ 1.43 | $ 3.86 | $ 1.55 | $ 1.76 | $ 1.60 | 6.18 | 8.72 | 6.92 |
Earnings Per Share of Common Stock - Diluted | |||||||||||
Net income from continuing operations | 6.13 | 4.53 | 6.65 | ||||||||
Net (loss) income from discontinued operations | (0.01) | 4.09 | 0.17 | ||||||||
Net income attributable to common shareowners | $ 1.25 | $ 1.78 | $ 1.65 | $ 1.42 | $ 3.86 | $ 1.54 | $ 1.73 | $ 1.58 | $ 6.12 | $ 8.61 | $ 6.82 |
Commercial Aerospace Industry66
Commercial Aerospace Industry Assets and Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Unbilled Contracts Receivable | $ 2,786 | $ 2,318 |
Commercial Aerospace [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Guarantee Obligations Maximum Exposure | 348 | 365 |
Commercial Aerospace [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts, Notes, Loans and Financing Receivable, gross | 7,222 | 6,143 |
Products Under Lease | 939 | 537 |
Notes and leases receivable, total committed | 497 | 566 |
Commercial Aerospace financing and other contractual commitments | 14,400 | |
Notes and leases receivable within one year | 51 | |
Notes and leases receivable within two years | 24 | |
Notes and leases receivable within three years | 47 | |
Notes and leases receivable within four years | 79 | |
Notes and leases receivable within five years | 32 | |
Notes and leases receivable after five years | 264 | |
Commercial aerospace financing commitments, total committed | 2,358 | |
Commercial aerospace financing commitments within one year | 435 | |
Commercial aerospace financing commitments within two years | 521 | |
Commercial aerospace financing commitments within three years | 416 | |
Commercial aerospace financing commitments within four years | 354 | |
Commercial aerospace financing commitments within five years | 287 | |
Commercial aerospace financing commitments after five years | 345 | |
Other commercial aerospace commitments, total committed | 12,063 | |
Other commercial aerospace commitments within one year | 860 | |
Other commercial aerospace commitments within two years | 973 | |
Other commercial aerospace commitments within three years | 738 | |
Other commercial aerospace commitments within four years | 706 | |
Other commercial aerospace commitments within five years | 730 | |
Other commercial aerospace commitments after five years | 8,056 | |
Collaboration partners' share, total committed | 4,608 | |
Collaboration partners' share within one year | 386 | |
Collaboration partners' share within two years | 479 | |
Collaboration partners' share within three years | 322 | |
Collaboration partners' share within four years | 271 | |
Collaboration partners' share within five years | 250 | |
Collaboration partners' share after five years | 2,900 | |
Total commercial commitments, total committed | 9,813 | |
Total commercial commitments within one year | 909 | |
Total commercial commitments within two years | 1,015 | |
Total commercial commitments within three years | 832 | |
Total commercial commitments within four years | 789 | |
Total commercial commitments within five years | 767 | |
Total commercial commitments after five years | 5,501 | |
Unbilled Contracts Receivable | 1,169 | 1,091 |
Deferred Revenue | 4,288 | 3,502 |
Notes and Leases Receivable Allowance | 16 | 17 |
Allowance for Receivables and Other Financing Assets | 157 | 200 |
Financing Commitments and Guarantees Reserve | 36 | 47 |
Goodrich Corporation [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Contractual Obligation | 2,200 | |
Contractual Obligation, Consumed in Current Year | 213 | $ 193 |
Contractual Obligation, Due in Next Fiscal Year | 251 | |
Contractual Obligation, Due in Second Year | 248 | |
Contractual Obligation, Due in Third Year | 222 | |
Contractual Obligation, Due in Fourth Year | 149 | |
Contractual Obligation, Due in Fifth Year | 83 | |
Contractual Obligation, Due after Fifth Year | $ 250 |
Inventories and Contracts in 67
Inventories and Contracts in Progress (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Inventory Costs in Excess of Average Cost Per Unit | $ 233 | $ 13 |
Raw materials | 2,040 | 2,037 |
Work-in-process | 2,787 | 2,422 |
Finished goods | 3,305 | 3,183 |
Contracts in progress | 9,395 | 8,668 |
Inventories before payments and billings | 17,527 | 16,310 |
Progress payments, secured by lien, on U.S. Government contracts | 130 | 239 |
Billings on contracts in progress | 8,693 | 7,936 |
Inventories and contracts in progress, net | 8,704 | 8,135 |
Inventory Valuation Reserves | $ 877 | $ 760 |
Percentage Of Inventory For Long Term Contracts Or Programs | 68.00% | 67.00% |
Percentage Of Inventory For Long Term Contracts Scheduled For Delivery Within Succeeding 12 Months | 41.00% | 41.00% |
UTC Aerospace Systems [Member] | ||
Inventory [Line Items] | ||
Capitalized Contract Development Costs | $ 140 | $ 152 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Land | $ 392 | $ 384 | |
Buildings and improvements | 5,180 | 5,030 | |
Machinery, tools and equipment | 12,471 | 11,717 | |
Other, including assets under construction | 1,426 | 1,363 | |
Fixed assets | 19,469 | 18,494 | |
Accumulated depreciation | 10,311 | 9,762 | |
Fixed assets, net | 9,158 | 8,732 | |
Property Plant And Equipment [Line Items] | |||
Depreciation | $ 1,105 | $ 1,068 | $ 1,043 |
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, 2016 | Dec. 31, 2015 |
Accrued Liabilities [Abstract] | ||
Advances on sales contracts and service billings | $ 4,217 | $ 3,952 |
Accrued salaries, wages and employee benefits | 1,608 | 1,543 |
Service and warranty accruals | 555 | 546 |
Litigation and contract matters | 488 | 482 |
Interest payable | 395 | 391 |
Income taxes payable | 382 | 2,498 |
Accrued property, sales and use taxes | 289 | 292 |
Canadian government settlement - current portion | 245 | 241 |
Insurance accruals | 217 | 204 |
Accrued restructuring costs | 210 | 334 |
Accrued workers compensation | 208 | 212 |
Other | 3,405 | 3,943 |
Accrued liabilities | $ 12,219 | $ 14,638 |
Accrued Liabilities Narrative (
Accrued Liabilities Narrative (Details) CAD in Millions, $ in Millions | 3 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016CAD | |
Accrued Liabilities [Abstract] | |||
Candadian Government Amendment Arrangements, Annual Payment Amount | $ 245 | CAD 327 | |
Canadian Government Amendment Arrangements, Expense | $ 867 | ||
Canadian Government Amendment Arrangements, Remaining Liability | $ 626 | $ 477 |
Borrowings and Lines of Credi71
Borrowings and Lines of Credit (Short-Term Borrowings) (Details) € in Millions, $ in Millions | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |||
Hedging Liabilities, Current | € | € 500 | ||
Commercial Paper | $ 522 | $ 727 | |
Other borrowings | 79 | 199 | |
Total short-term borrowings | $ 601 | $ 926 |
Borrowings and Lines of Credi72
Borrowings and Lines of Credit (ST Borrowings Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Maximum Commercial Paper Borrowing Authority | $ 4,350 | |
Short Term Line of Credit Facilities Remaining Borrowing Capacities | $ 1,500 | |
Short Term Debt Weighted Average Interest Rate, Avg Outstanding | 1.30% | 0.60% |
Total Debt Weighted Average Interest Rate, Avg Outstanding | 4.10% | 4.10% |
Short Term Debt Weighted Average Interest Rate, Outstanding | 0.60% | 0.80% |
Total Debt Weighted Average Interest Rate, Outstanding | 3.70% | 4.40% |
Line of Credit Facility [Line Items] | ||
Aggregate Line of Credit Facility Maximum Borrowing Capacity | $ 4,350 | |
Multicurrency Revolving Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Expiration Date | Aug. 5, 2021 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,150 | |
Long-term Line of Credit | $ 0 | |
Revolving Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Expiration Date | Aug. 5, 2021 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,200 | |
Long-term Line of Credit | $ 0 |
Borrowings and Lines of Credi73
Borrowings and Lines of Credit (Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||
Project financing obligations | $ 155 | $ 191 | |
Total principal long-term debt | 23,299 | 19,439 | |
Other debt (including capitalized leases) | 189 | 306 | |
Other (fair market value adjustments, discounts and debt issuance costs) | 1 | 60 | |
Total long-term debt | 23,300 | 19,499 | |
Less: current portion | 1,603 | 179 | |
Long-term debt, net of current portion | 21,697 | 19,320 | |
Long Term Debt Maturities Repayments Of Principal In Next Twelve Months | 1,603 | ||
Long Term Debt Maturities Repayments Of Principal In Year Two | 2,012 | ||
Long Term Debt Maturities Repayments Of Principal In Year Three | 1,299 | ||
Long Term Debt Maturities Repayments Of Principal In Year Four | 1,460 | ||
Long Term Debt Maturities Repayments Of Principal In Year Five | 2,034 | ||
Long Term Debt Maturities Repayments Of Principal After Year Five | 14,891 | ||
Notes 5.375% Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 0 | 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 | [1] | $ 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. | ||
EURIBOR plus 0.800% floating rate notes due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [2] | $ 783 | 0 |
Debt Instrument, Maturity Year Date | 2,018 | ||
Debt Instrument, Call Feature | The three-month EURIBOR rate as of December 30, 2016 was approximately 0.319%. 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. | ||
Junior subordinated notes 1.778% due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | $ 1,100 | 1,100 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.778% | ||
Debt Instrument, Maturity Year Date | 2,018 | ||
Notes 6.800% Due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | $ 99 | 99 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | ||
Debt Instrument, Maturity Year Date | 2,018 | ||
LIBOR plus 0.350% floating rate notes due 2019 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [3] | $ 350 | 0 |
Debt Instrument, Maturity Year Date | 2,019 | ||
Debt Instrument, Call Feature | The three-month LIBOR rate as of December 30, 2016 was approximately 0.998%. | ||
Notes 1.500% Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 650 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||
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 6.125% Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 0 | 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 | [1] | $ 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 | $ 171 | 171 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | ||
Debt Instrument, Maturity Year Date | 2,020 | ||
Notes 1.950% Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 750 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 1.95% | ||
Debt Instrument, Maturity Year Date | 2,021 | ||
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 1.125% Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [4] | $ 992 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 1.125% | ||
Debt Instrument, Maturity Year Date | 2,021 | ||
Debt Instrument, Call Feature | We may redeem these notes, in whole or in part, at our option at any time. If redeemed earlier than three months prior to the stated maturity date, 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 15-30 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 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 | [1] | $ 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. | ||
Notes 1.250% due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [4] | $ 783 | 817 |
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 earlier than three months prior to the stated maturity date, 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 15-30 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 2.650% Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 1,150 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | ||
Debt Instrument, Maturity Year Date | 2,026 | ||
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 1.875% Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [4] | $ 522 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 1.875% | ||
Debt Instrument, Maturity Year Date | 2,026 | ||
Debt Instrument, Call Feature | We may redeem these notes, in whole or in part, at our option at any time. If redeemed earlier than three months prior to the stated maturity date, 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 15-30 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 7.100% Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | $ 141 | 141 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.10% | ||
Debt Instrument, Maturity Year Date | 2,027 | ||
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 | [1] | $ 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 | [1] | $ 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 | [1] | $ 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 | $ 134 | 134 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.80% | ||
Debt Instrument, Maturity Year Date | 2,036 | ||
Notes 7.000% Due 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | $ 159 | 159 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||
Debt Instrument, Maturity Year Date | 2,038 | ||
Notes 6.125% Due 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 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 | [1] | $ 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 | [1] | $ 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. | ||
Notes 4.150% Due 2045 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 850 | 850 |
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. | ||
Notes 3.750% Due 2046 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Carrying Amount | [1] | $ 1,100 | $ 0 |
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | ||
Debt Instrument, Maturity Year Date | 2,046 | ||
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. | ||
[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] | The three-month EURIBOR rate as of December 30, 2016 was approximately -0.319%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation. | ||
[3] | The three-month LIBOR rate as of December 30, 2016 was approximately 0.998%. | ||
[4] | We may redeem these notes, in whole or in part, at our option at any time. If redeemed earlier than three months prior to the stated maturity date, 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 15-30 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. |
Borrowings and Lines of Credi74
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, 2016USD ($)shares | Dec. 31, 2016EUR (€)shares | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Debt Percentage Bearing Variable Interest Rate | 7.00% | 7.00% | 5.00% |
Gain (Loss) on Extinguishment of Debt | $ 164 | ||
Average Years of Maturity of Long Term Debt | ten years | ten years | |
Notes 1.125% Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Issuance Date | Feb. 22, 2016 | Feb. 22, 2016 | |
Proceeds from Issuance of Debt | € | € 950 | ||
Debt Instrument, Maturity Year Date | 2,021 | 2,021 | |
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 | ||
Debt Instrument, Maturity Year Date | 2,045 | 2,045 | |
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 0.350% floating rate notes due 2019 | |||
Debt Instrument [Line Items] | |||
Repayment of Debt, Date | Jun. 1, 2015 | Jun. 1, 2015 | |
Repayments of Debt | $ 500 | ||
Debt Instrument, Issuance Date | Nov. 1, 2016 | Nov. 1, 2016 | |
Proceeds from Issuance of Debt | $ 350 | ||
Debt Instrument, Maturity Year Date | 2,019 | 2,019 | |
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 | |
Debt Instrument, Maturity Year Date | 2,018 | 2,018 | |
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 | ||
Debt Instrument, Maturity Year Date | 2,023 | 2,023 | |
EURIBOR plus 0.800% floating rate notes due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Issuance Date | Feb. 22, 2016 | Feb. 22, 2016 | |
Proceeds from Issuance of Debt | € | € 750 | ||
Debt Instrument, Maturity Year Date | 2,018 | 2,018 | |
Notes 1.875% Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Issuance Date | Feb. 22, 2016 | Feb. 22, 2016 | |
Proceeds from Issuance of Debt | € | € 500 | ||
Debt Instrument, Maturity Year Date | 2,026 | 2,026 | |
Notes 1.500% Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Issuance Date | Nov. 1, 2016 | Nov. 1, 2016 | |
Proceeds from Issuance of Debt | $ 650 | ||
Debt Instrument, Maturity Year Date | 2,019 | 2,019 | |
Notes 1.950% Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Issuance Date | Nov. 1, 2016 | Nov. 1, 2016 | |
Proceeds from Issuance of Debt | $ 750 | ||
Debt Instrument, Maturity Year Date | 2,021 | 2,021 | |
Notes 2.650% Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Issuance Date | Nov. 1, 2016 | Nov. 1, 2016 | |
Proceeds from Issuance of Debt | $ 1,150 | ||
Debt Instrument, Maturity Year Date | 2,026 | 2,026 | |
Notes 3.750% Due 2046 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Issuance Date | Nov. 1, 2016 | Nov. 1, 2016 | |
Proceeds from Issuance of Debt | $ 1,100 | ||
Debt Instrument, Maturity Year Date | 2,046 | 2,046 | |
Notes 5.375% Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Repayment of Debt, Date | Dec. 1, 2016 | Dec. 1, 2016 | |
Repayments of Debt | $ 1,000 | ||
Debt Instrument, Maturity Year Date | 2,017 | 2,017 | |
Notes 6.125% Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Repayment of Debt, Date | Dec. 1, 2016 | Dec. 1, 2016 | |
Repayments of Debt | $ 1,250 | ||
Debt Instrument, Maturity Year Date | 2,019 | 2,019 |
Equity (Accelerated Share Repur
Equity (Accelerated Share Repurchase) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accelerated Share Repurchases [Line Items] | |||
Stock Repurchased During Period, Shares | 32.3 | 88.7 | 13.5 |
Stock Issued During Period, Value, Other | $ 1,100 | ||
Stock Issued During Period, Shares, Other | 11.3 | ||
March 13, 2015 ASR [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
ASR Aggregate Purchase Price | $ 2,650 | ||
Accelerated Share Repurchases, Cash or Stock Settlement | 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. Including the remaining shares settled on July 31, 2015, the final price under the ASR was $116.11 per share. | ||
Stock Repurchased During Period, Shares | 18.6 | ||
November 11, 2015 ASR [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
ASR Aggregate Purchase Price | $ 6,000 | ||
Accelerated Share Repurchases, Cash or Stock Settlement | 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. Under the terms of the ASR agreements, we made the aggregate payments 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. In 2016, the shares associated with the remaining portion of the aggregate purchase were settled upon final delivery to us of approximately 10.1 million additional shares of common stock. Including the remaining shares associated with the six tranches settled in 2016, the final price under the November 11, 2015 ASR was $96.74 per share. | ||
Stock Repurchased During Period, Shares | 10.1 | 51.9 | |
Accelerated Share Repurchases, Final Price Paid Per Share | $ 96.74 | ||
July 31, 2015 settlement of ASR [Member] | |||
Accelerated Share Repurchases [Line Items] | |||
Stock Repurchased During Period, Shares | 4.2 | ||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 116.11 |
Equity (Summary of Changes in A
Equity (Summary of Changes in AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (8,334) | $ (7,619) | $ (6,661) |
Other comprehensive (loss) income, net - Foreign Currency Translation | (1,089) | (1,502) | (1,302) |
Amounts reclassified, pretax - Foreign Currency Translation | 0 | (42) | (7) |
Tax reclassified - Foreign Currency Translation | 0 | 0 | |
Other comprehensive (loss) income before reclassifications, net - Pension | 247 | (32) | |
Amounts reclassified, pretax - Pension | 535 | 867 | 416 |
Tax reclassified - Pension | 198 | 325 | |
Other comprehensive (loss) income before reclassifications, net - AFS Securities | 119 | 16 | |
Amounts reclassified, pretax - AFS Securities | 94 | 54 | 20 |
Tax reclassified - AFS Securities | 35 | 23 | |
Other comprehensive (loss) income before reclassifications, net - Unrealized Hedging (Losses) Gains | 54 | (298) | |
Amounts reclassified, pretax - Unrealized Hedging (Losses) Gains | (171) | (234) | (96) |
Tax reclassified - Unrealized Hedging (Losses) Gains | (48) | (66) | |
Other comprehensive (loss) income before reclassifications, net | (1,116) | (1,679) | |
Amounts reclassified, pretax | (612) | (1,089) | |
Tax reclassified | (211) | (368) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (3,480) | (2,438) | (1,051) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (5,045) | (5,135) | (5,709) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 353 | 293 | 308 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (162) | (339) | $ (209) |
Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive (loss) income, net - Foreign Currency Translation | $ (1,042) | $ (1,429) |
Equity (Changes in Noncontrolli
Equity (Changes in Noncontrolling Interests) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Parent [Member] | |||
Subsidiary or Equity Method Investee [Line Items] | |||
(Purchase) / sale of subsidiary shares from noncontrolling interest | $ 8 | $ (12) | $ 71 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Income, United States | $ 2,534 | $ 2,782 | $ 4,165 |
Income, Foreign | 4,599 | 3,685 | 4,547 |
Income from continuing operations before income taxes | 7,133 | 6,467 | 8,712 |
Undistributed Earnings of Foreign Subsidiaries | 31,000 | ||
Current Tax Provision, Federal | 30 | 328 | 319 |
Current Tax Provision, State | (21) | (37) | 38 |
Current Tax Provision, Foreign | 1,290 | 1,158 | 1,484 |
Current Income Tax Expense Benefit | 1,299 | 1,449 | 1,841 |
Future Tax Provision, Federal | 318 | 712 | 421 |
Future Tax Provision, State | 134 | 109 | (23) |
Future Tax Provision, Foreign | (54) | (159) | 5 |
Deferred income tax provision | 398 | 662 | 403 |
Income tax expense | 1,697 | 2,111 | 2,244 |
Attributable to items credited (charged) to equity and goodwill | $ (299) | $ (114) | $ 1,535 |
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
Tax on international activities | (8.10%) | (2.00%) | (3.30%) |
Tax audit settlements | (2.90%) | 0.00% | (4.30%) |
Other | (0.20%) | (0.40%) | (1.60%) |
Effective income tax rate | 23.80% | 32.60% | 25.80% |
Tax Adjustments Settlements And Unusual Provisions | $ 371 | ||
Income Tax Credits and Adjustments | $ 68 | ||
2011 - 2012 Tax Years [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax Adjustments Settlements And Unusual Provisions | $ 206 | ||
French Tax Law Change [Member] | |||
Income Tax Contingency [Line Items] | |||
Income Tax Credits and Adjustments | $ 25 | ||
Foreign Earnings Repatriation [Member] | |||
Income Tax Contingency [Line Items] | |||
Other Information Pertaining To Income Taxes, Monetary | 274 | ||
2015 Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Other Information Pertaining To Income Taxes, Monetary | $ 45 | ||
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 |
Income Taxes (Tax Carryforwards
Income Taxes (Tax Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Tax Credit Carryforward [Line Items] | ||
Insurance and employee benefits | $ 2,382 | $ 2,650 |
Other asset basis differences | 1,098 | 1,199 |
Other liability basis differences | 1,403 | 1,543 |
Tax loss carryforwards | 494 | 528 |
Tax credit carryforwards | 873 | 872 |
Valuation allowances | 545 | 591 |
Future Income Tax Benefits | 5,705 | 6,201 |
Other Asset Basis Differences | 5,376 | 5,324 |
Other items, net | 364 | 531 |
Future Income Taxes Payable | 5,740 | $ 5,855 |
Tax Credit Carryforwards | 873 | |
Tax Loss Carryforwards | 2,647 | |
Expiration Period Current To Five Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforwards | 12 | |
Tax Loss Carryforwards | 317 | |
Expiration Period Six To Ten Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforwards | 13 | |
Tax Loss Carryforwards | 187 | |
Expiration Period Eleven To Twenty Years [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforwards | 219 | |
Tax Loss Carryforwards | 363 | |
Expiration Period Indefinite [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforwards | 629 | |
Tax Loss Carryforwards | $ 1,780 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Examination [Line Items] | |||||
Estimated Tax Settlement Interest Gain (Loss) Noncash, Range, Lower Limit | $ 220 | ||||
Change in Unrecognized Tax Benefits Is Reasonably Possible Estimated Range of Change, Lower Bound | $ 50 | $ 50 | |||
Change in Unrecognized Tax Benefits Is Reasonably Possible Estimated Range of Change, Upper Bound | 495 | 495 | |||
Balance at January 1 | 1,169 | $ 1,089 | 1,223 | ||
Additions for tax positions related to the current year | 69 | 206 | 164 | ||
Additions for tax positions of prior years | 167 | 99 | 435 | ||
Reductions for tax positions of prior years | 61 | 101 | 47 | ||
Settlements | 258 | 124 | 686 | ||
Balance at December 31 | 1,086 | 1,086 | 1,169 | 1,089 | |
Gross interest expense related to unrecognized tax benefits | 41 | 39 | 180 | ||
Total accrued interest balance at December 31 | 185 | $ 185 | $ 176 | 292 | |
Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions, Uncertain Timing | 87 | ||||
Closure of IRS audit of UTC Tax Years 2011-2012 [Member] | |||||
Income Tax Examination [Line Items] | |||||
Tax Settlement Gain (Loss) Noncash | 172 | ||||
Tax Settlement Interest Gain (Loss) Noncash | $ 22 | ||||
Closure of IRS audit of Goodrich Corporation Tax Years 2011-2012 | |||||
Income Tax Examination [Line Items] | |||||
Tax Settlement Gain (Loss) Noncash | $ 58 | ||||
Resolution of various tax audit, appeal & litigation activity [Member] | |||||
Income Tax Examination [Line Items] | |||||
Tax Settlement Gain (Loss) Noncash | 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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Contributions to employer sponsored defined contribution plans | $ 318 | $ 356 | $ 330 |
Employee Stock Ownership Plan (ESOP), Plan Description | 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 may choose to have their ESOP dividends reinvested or distributed in cash. Common stock allocated to ESOP participants is included in the average number of common shares outstanding for both basic and diluted earnings per share. | ||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 27.8 | ||
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | 11.7 | ||
Employee Stock Ownership Plan (ESOP), Deferred Shares, Fair Value | $ 1,300 |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension and Postretirement Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension Contributions | $ 303 | $ 147 | $ 517 | |||
Other | 542 | 326 | 121 | |||
Beginning Balance, Plan Assets | 31,011 | |||||
Ending Balance, Plan Assets | 30,555 | 31,011 | ||||
Noncurrent liability | $ 5,612 | $ 6,022 | ||||
Current year actuarial loss (gain) | (785) | (284) | (4,362) | |||
Current year prior service cost/credit | 13 | 37 | 5 | |||
Amortization of prior service credit | 535 | 867 | 416 | |||
Other Postretirement Benefit Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Beginning Balance, Benefit Obligation | 890 | 952 | ||||
Service Cost | 3 | 3 | 3 | |||
Interest cost | 34 | 34 | 41 | |||
Actuarial loss (gain) | (48) | 0 | ||||
Total benefits paid | 97 | 104 | ||||
Other | 23 | 5 | ||||
Ending Balance, Benefit Obligation | 805 | 890 | 952 | |||
Beginning Balance, Plan Assets | 0 | 0 | ||||
Employer Contributions | 80 | 84 | ||||
Other | 17 | 20 | ||||
Ending Balance, Plan Assets | 0 | 0 | 0 | |||
Benefit obligations | 890 | 952 | 952 | 805 | 890 | |
Funded status of plan | (805) | (890) | ||||
Current liability | 78 | 84 | ||||
Noncurrent liability | 727 | 806 | ||||
Net amount recognized | (805) | (890) | ||||
Net actuarial loss | 152 | 109 | ||||
Prior service credit | (5) | (1) | ||||
Net amount recognized | $ (157) | $ (110) | ||||
Amortization of prior service credit | 0 | 0 | (1) | |||
Recognized actuarial net (gain) loss - in net periodic cost | 4 | 4 | 4 | |||
Net settlement, curtailment and special termination benefits loss | 0 | 1 | 0 | |||
Impact of change in estimation of NPPC | 33 | $ 32 | $ 39 | |||
Current year actuarial loss (gain) | (46) | |||||
Amortization of actuarial (loss) gain | 4 | |||||
Current year prior service cost/credit | (4) | |||||
Other | (1) | |||||
Total recognized in other comprehensive loss | (47) | |||||
Net recognized in net periodic pension cost and other comprehensive loss | (14) | |||||
Net actuarial loss/gain | 10 | |||||
Prior service credit | $ (1) | |||||
Discount rate, benefit obligation | 3.80% | 4.00% | ||||
Discount rate, net cost | 4.00% | 3.80% | 4.40% | |||
Health care cost trend rate assumed for next year | 6.50% | 6.50% | ||||
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 | 2,022 | ||||
Effect on total service and interest cost - increase | $ 3 | |||||
Effect on postretirement benefit obligation - increase | 46 | |||||
Effect on total service and interest cost - decrease | 2 | |||||
Effect on postretirement benefit obligation - decrease | 39 | |||||
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Beginning Balance, Benefit Obligation | 35,428 | $ 37,853 | ||||
Service Cost | 383 | 493 | $ 487 | |||
Interest cost | 1,183 | 1,399 | 1,517 | |||
Actuarial loss (gain) | 1,831 | (1,716) | ||||
Total benefits paid | 1,660 | 1,796 | ||||
Net settlement, curtailment, and special termination benefits | (1,566) | (55) | ||||
Plan amendments | 17 | 39 | ||||
Other | (693) | (789) | ||||
Ending Balance, Benefit Obligation | 34,923 | 35,428 | 37,853 | |||
Beginning Balance, Plan Assets | 31,011 | 32,738 | ||||
Actual return on plan assets | 3,202 | 265 | ||||
Employer Contributions | 384 | 520 | ||||
Settlements | 1,632 | 59 | ||||
Other | 750 | 657 | ||||
Ending Balance, Plan Assets | 30,555 | 31,011 | 32,738 | |||
Benefit obligations | 35,428 | 37,853 | 37,853 | $ 34,923 | $ 35,428 | |
Funded status of plan | (4,368) | (4,417) | ||||
Noncurrent assets | 451 | 742 | ||||
Current liability | 72 | 71 | ||||
Noncurrent liability | 4,747 | 5,088 | ||||
Net amount recognized | (4,368) | (4,417) | ||||
Net actuarial loss | (7,941) | (8,224) | ||||
Prior service credit | (6) | (57) | ||||
Net amount recognized | 7,935 | 8,167 | ||||
Projected benefit obligation | 32,732 | 30,915 | ||||
Accumulated benefit obligation | 32,095 | 30,362 | ||||
Fair value of plan assets | $ 27,943 | $ 25,827 | ||||
Expected return on plan assets | 2,202 | 2,264 | 2,215 | |||
Amortization of prior service credit | (33) | (11) | (8) | |||
Recognized actuarial net (gain) loss - in net periodic cost | 572 | 882 | 429 | |||
Net settlement, curtailment and special termination benefits loss | (498) | (150) | (13) | |||
Impact of change in estimation of NPPC | 401 | $ 649 | $ 223 | |||
Current year actuarial loss (gain) | 831 | |||||
Amortization of actuarial (loss) gain | (572) | |||||
Current year prior service cost/credit | 17 | |||||
Amortization of prior service credit | (33) | |||||
Net settlement and curtailment loss | (436) | |||||
Other | (105) | |||||
Total recognized in other comprehensive loss | (232) | |||||
Net recognized in net periodic pension cost and other comprehensive loss | 169 | |||||
Net actuarial loss/gain | (571) | |||||
Prior service credit | (36) | |||||
Total amount to be amortized from AOCI to NPPC | $ 535 | |||||
Salary scale, benefit obligation | 4.10% | 4.20% | ||||
Expected return on plan assets, benefit obligation | 0.00% | 0.00% | ||||
Salary scale, net cost | 4.20% | 4.20% | 4.20% | |||
Expected return on plan assets, net cost | 7.30% | 7.60% | 7.60% | |||
PBO [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate, benefit obligation | 3.80% | 4.10% | ||||
Discount rate, net cost | 4.10% | 3.80% | 4.70% | |||
Interest cost [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate, benefit obligation | 0.00% | 0.00% | ||||
Discount rate, net cost | 3.40% | 0.00% | 0.00% | |||
Service cost [Member] | Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate, benefit obligation | 0.00% | 0.00% | ||||
Discount rate, net cost | 3.80% | 0.00% | 0.00% | |||
Real Estate [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Beginning Balance, Plan Assets | [1],[2] | $ 2,254 | ||||
Ending Balance, Plan Assets | [1],[2] | 1,815 | $ 2,254 | |||
Private Equity Funds [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Beginning Balance, Plan Assets | [1],[3] | 1,517 | ||||
Ending Balance, Plan Assets | [1],[3] | $ 1,361 | $ 1,517 | |||
[1] | 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. | |||||
[2] | Represents investments in real estate including commingled funds and directly held properties. | |||||
[3] | Represents limited partner investments with general partners that primarily invest in debt and equity. |
Employee Benefit Plans (Pensi83
Employee Benefit Plans (Pension Plans) (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Other Changes | $ 542,000,000 | $ 326,000,000 | $ 121,000,000 | |
Pension Contributions | 303,000,000 | 147,000,000 | 517,000,000 | |
Domestic Defined Benefit Plan Stock Contributions By Employer | 0 | 250,000,000 | 0 | |
Defined Benefit Plan, Accumulated Benefit Obligation | $ 34,200,000,000 | $ 34,200,000,000 | 34,600,000,000 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Explanation of Significant Change in Benefit Obligation or Plan Assets Not Apparent from Other Required Disclosures | As part of our long-term strategy to de-risk our defined benefit pension plans, we entered into an agreement to purchase a group annuity contract to transfer approximately $768 million of our outstanding pension benefit obligations related to certain U.S. retirees or beneficiaries, which was finalized on October 12, 2016. We also offered certain former U.S. employees or beneficiaries (generally all former U.S. participants not yet in receipt of their vested pension benefits) an option to take a one-time lump-sum distribution in lieu of future monthly pension payments, which reduced our pension benefit obligations by approximately $935 million. These transactions reduced the assets of our defined benefit pension plans by approximately $1.5 billion. As a result of these transactions, we recognized a one-time pre-tax pension settlement charge of approximately $423 million in the fourth quarter of 2016. | |||
Defined Benefit Plan, Other Changes | $ (693,000,000) | (789,000,000) | ||
Defined Benefit Plan, Effect of Plan Amendment on Accumulated Benefit Obligation | $ 170,000,000 | $ 170,000,000 | ||
Defined Benefit Plan, Effect of Plan Amendment on Accumulated Benefit Obligation | As approved in 2016, effective January 1, 2017, a voluntary lump-sum option is available for the frozen final average earnings benefits of certain U.S. salaried employees upon termination of employment after 2016. This option provides participants with the choice of electing to receive a lump-sum payment in lieu of receiving a future monthly pension benefit. This plan change reduced the projected benefit obligation by $170 million. | |||
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 | 75.00% | 75.00% | ||
Percentage Of Projected Benefit Obligation Comprised Of Foreign Plan Benefits | 24.00% | 24.00% | ||
Defined Benefit Plan, Net Periodic Benefit Cost | $ 401,000,000 | $ 649,000,000 | 223,000,000 | |
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 | 11.00% | 11.00% | ||
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 | 1.00% | 3.00% | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 300,000,000 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $ 1,930,000,000 | 1,930,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 1,847,000,000 | 1,847,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 1,896,000,000 | 1,896,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 1,948,000,000 | 1,948,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 1,994,000,000 | 1,994,000,000 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 10,545,000,000 | 10,545,000,000 | ||
Domestic defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension Contributions | 100,000,000 | |||
Domestic Defined Benefit Plan Stock Contributions By Employer | $ 250,000,000 | |||
Discretionary employer contributions to defined benefit pension plans in the next 12 months | 150,000,000 | |||
Foreign defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension Contributions | 203,000,000 | 147,000,000 | ||
Pension de-risking actions [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Other Changes | 1,500,000,000 | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ (423,000,000) | |||
Purchase of Annuity Contract [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Other Changes | 768,000,000 | |||
Lump Sum Payments [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Other Changes | $ 935,000,000 | |||
Change in Assumptions for Pension Plans [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Change in Accounting Estimate, Description | 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 resulted in a net decrease in the service and interest components of our annual net periodic pension cost of approximately $215 million for 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 materially affect the measurement of our total benefit obligations. | |||
Impact of change in estimation of NPPC | $ (215,000,000) | |||
Discontinued Operations [Member] | Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | (109,000,000) | (1,000,000) | ||
Defined Benefit Plan, Net Periodic Benefit Cost | $ 98,000,000 | $ 96,000,000 |
Employee Benefit Plans (Pensi84
Employee Benefit Plans (Pension Plans) (Fair Value Tables) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | $ 31,011 | |||
Ending Balance, Plan Assets | 30,555 | $ 31,011 | ||
Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 13,921 | |||
Ending Balance, Plan Assets | 13,570 | 13,921 | ||
Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 6,486 | |||
Ending Balance, Plan Assets | 5,210 | 6,486 | ||
Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 8,964 | |||
Ending Balance, Plan Assets | 9,936 | 8,964 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 1,347 | 1,120 | ||
Realized gains (losses) | 65 | (1) | ||
Unrealized gains relating to instruments still held in the reporting period | 23 | 147 | ||
Purchases, sales and settlements, net | (28) | 81 | ||
Ending Balance, Plan Assets | 1,407 | 1,347 | ||
Global Equities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 5,884 | |||
Ending Balance, Plan Assets | 4,685 | 5,884 | ||
Global Equities [Member] | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | ||
Global Equities [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 5,884 | |||
Ending Balance, Plan Assets | 4,682 | 5,884 | ||
Global Equities [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 0 | |||
Ending Balance, Plan Assets | 3 | 0 | ||
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] | 779 | ||
Ending Balance, Plan Assets | [1] | 367 | 779 | |
Global Equity Commingled Funds [Member] | Not Subject to Leveling [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] | 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] | 779 | ||
Ending Balance, Plan Assets | [1] | 367 | 779 | |
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] | 853 | ||
Ending Balance, Plan Assets | [2] | 1,662 | 853 | |
Enhanced Global Equities [Member] | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [2] | 0 | ||
Ending Balance, Plan Assets | [2] | 0 | 0 | |
Enhanced Global Equities [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [2] | 237 | ||
Ending Balance, Plan Assets | [2] | 168 | 237 | |
Enhanced Global Equities [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [2] | 616 | ||
Ending Balance, Plan Assets | [2] | 1,494 | 616 | |
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] | 6,475 | ||
Ending Balance, Plan Assets | [3] | 7,090 | 6,475 | |
Global Equity Funds at net asset value [Member] | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3] | 6,475 | ||
Ending Balance, Plan Assets | [3] | 7,090 | 6,475 | |
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] | 1,517 | ||
Ending Balance, Plan Assets | [3],[4] | 1,361 | 1,517 | |
Private Equities | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[4] | 1,335 | ||
Ending Balance, Plan Assets | [3],[4] | 1,239 | 1,335 | |
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 | 182 | [3],[4] | 145 | |
Realized gains (losses) | 46 | 3 | ||
Unrealized gains relating to instruments still held in the reporting period | 5 | 42 | ||
Purchases, sales and settlements, net | (111) | (8) | ||
Ending Balance, Plan Assets | [3],[4] | 122 | 182 | |
Governments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 418 | |||
Ending Balance, Plan Assets | 314 | 418 | ||
Governments [Member] | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | ||
Governments [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 365 | |||
Ending Balance, Plan Assets | 260 | 365 | ||
Governments [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 53 | |||
Ending Balance, Plan Assets | 54 | 53 | ||
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 | 7,013 | |||
Ending Balance, Plan Assets | 7,637 | 7,013 | ||
Corporate Bonds [Member] | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | ||
Corporate Bonds [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 0 | |||
Ending Balance, Plan Assets | 0 | 0 | ||
Corporate Bonds [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 7,013 | |||
Ending Balance, Plan Assets | 7,637 | 7,013 | ||
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] | 2,992 | ||
Ending Balance, Plan Assets | [3] | 2,788 | 2,992 | |
Fixed Income Securities [Member] | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3] | 2,992 | ||
Ending Balance, Plan Assets | [3] | 2,788 | 2,992 | |
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] | 2,254 | ||
Ending Balance, Plan Assets | [3],[5] | 1,815 | 2,254 | |
Real Estate [Member] | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[5] | 1,079 | ||
Ending Balance, Plan Assets | [3],[5] | 513 | 1,079 | |
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] | 10 | ||
Ending Balance, Plan Assets | [3],[5] | 17 | 10 | |
Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | 1,165 | [3],[5] | 975 | |
Realized gains (losses) | 19 | (4) | ||
Unrealized gains relating to instruments still held in the reporting period | 18 | 105 | ||
Purchases, sales and settlements, net | 83 | 89 | ||
Ending Balance, Plan Assets | [3],[5] | 1,285 | 1,165 | |
Other [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[6] | 2,040 | ||
Ending Balance, Plan Assets | [3],[6] | 2,108 | 2,040 | |
Other [Member] | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[6] | 1,706 | ||
Ending Balance, Plan Assets | [3],[6] | 1,819 | 1,706 | |
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] | 334 | ||
Ending Balance, Plan Assets | [3],[6] | 289 | 334 | |
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] | 493 | ||
Ending Balance, Plan Assets | [3],[7] | 296 | 493 | |
Cash & Cash Equivalents [Member] | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[7] | 334 | ||
Ending Balance, Plan Assets | [3],[7] | 121 | 334 | |
Cash & Cash Equivalents [Member] | Quoted price in active markets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[7] | 0 | ||
Ending Balance, Plan Assets | [3],[7] | 100 | 0 | |
Cash & Cash Equivalents [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [3],[7] | 159 | ||
Ending Balance, Plan Assets | [3],[7] | 75 | 159 | |
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 | 30,718 | |||
Ending Balance, Plan Assets | 30,123 | 30,718 | ||
Other Assets & Liabilities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Beginning Balance, Plan Assets | [8] | 293 | ||
Ending Balance, Plan Assets | [8] | $ 432 | $ 293 | |
[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) (Narrative) (Details) - Other Postretirement Benefit Plan [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage Of Projected Benefit Obligation Comprised Of Domestic Plan Benefits | 87.00% |
Future Amortization of Gain | $ 10 |
Future amortization of prior service credit | (1) |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 78 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 75 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 70 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 65 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 60 |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 242 |
Employee Benefit Plans (Multiem
Employee Benefit Plans (Multiemployer Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | $ 131 | $ 120 | $ 113 |
Multiemployer Plans Period Contributions Other Than Pensions | $ 17 | $ 15 | 14 |
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 | $ 100 | $ 88 | 79 |
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 | $ 31 | $ 32 | $ 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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost of Share Based Payments | $ 153 | $ 175 | $ 240 | |
Expected Volatility | 20.00% | |||
Expected Volatility, Minimum | 20.00% | 22.00% | ||
Expected Volatility, Maximum | 23.00% | 26.00% | ||
Expected term (in years) | 6 years 6 months | |||
Weighted-average volatility | 20.00% | 21.00% | 26.00% | |
Expected dividend yield | 2.70% | 2.20% | 2.20% | |
Risk-free rate, minimum | 0.20% | 0.00% | 0.00% | |
Risk-free rate, maximum | 2.60% | 2.20% | 3.10% | |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 9 months | 8 years | ||
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 | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
December 31, 2015, Shares | 1,879 | |||
Granted, Shares | 397 | |||
Exercised/earned, Shares | 239 | |||
Cancelled, Shares | 14 | |||
December 31, 2016, Shares | 2,023 | 1,879 | ||
December 31, 2015, Average Price | [1] | $ 86.19 | ||
Granted, Average Price | [1] | 95.57 | ||
Exercised/Earned, Average Price | [1] | 71.57 | ||
Cancelled, Average Price | [1] | 92.02 | ||
December 31, 2016, Average Price | [1] | $ 89.72 | $ 86.19 | |
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
December 31, 2015, Shares | 38,111 | |||
Granted, Shares | 4,740 | |||
Exercised/earned, Shares | 5,760 | |||
Cancelled, Shares | 678 | |||
December 31, 2016, Shares | 36,413 | 38,111 | ||
December 31, 2015, Average Price | [1] | $ 83.58 | ||
Granted, Average Price | [1] | 95.40 | ||
Exercised/Earned, Average Price | [1] | 69.19 | ||
Cancelled, Average Price | [1] | 95.03 | ||
December 31, 2016, Average Price | [1] | $ 87.18 | $ 83.58 | |
Performance Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
December 31, 2015, Shares | 2,170 | |||
Granted, Shares | 687 | |||
Exercised/earned, Shares | 372 | |||
Cancelled, Shares | 518 | |||
December 31, 2016, Shares | 1,967 | 2,170 | ||
December 31, 2015, Average Price | [2] | $ 101.78 | ||
Granted, Average Price | [2] | 95.29 | ||
Exercised/Earned, Average Price | [2] | 84.03 | ||
Cancelled, Average Price | [2] | 85.92 | ||
December 31, 2016, Average Price | [2] | $ 107.05 | $ 101.78 | |
Other Incentive Shares/Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
December 31, 2015, Shares | 1,467 | |||
Granted, Shares | 698 | |||
Exercised/earned, Shares | 339 | |||
Cancelled, Shares | 207 | |||
December 31, 2016, Shares | 2,033 | 1,467 | ||
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 | 38,314 | |||
Equity Awards Vested and Expected to Vest, Average Price | [3] | $ 86.58 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 917 | |||
Equity Awards Vested and Expected to Vest, Remaining Term | 5 years 4 months 24 days | |||
Equity Awards That Are Exercisable, Awards | 25,574 | |||
Equity Awards That Are Exercisable, Average Price | [3] | $ 77.64 | ||
Equity Awards That Are Exercisable, Aggregate Intrinsic Value | $ 824 | |||
Equity Awards That Are Exercisable, Remaining Term | 4 years 2 months 12 days | |||
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 | 2,376 | |||
Equity Awards Vested and Expected to Vest, Average Price | [3] | $ 0 | ||
Equity Awards Vested and Expected to Vest, Average Intrinsic Value | $ 260 | |||
Equity Awards Vested and Expected to Vest, Remaining Term | 2 years 9 months 18 days | |||
Continuing operations [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost of Share Based Payments | $ 152 | $ 158 | $ 219 | |
Discontinued operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost of Share Based Payments | $ 1 | $ 17 | $ 21 | |
[1] | weighted-average exercise price | |||
[2] | weighted-average grant stock price | |||
[3] | weighted-average exercise price per share |
Employee Benefit Plans (Stock88
Employee Benefit Plans (Stock Based Compensation) (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 38 | ||
Expected Range Of Shares Awarded Annually Under Long Term Incentive Plan | 1.0% to 1.5% | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 49 | $ 57 | $ 80 |
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | 17 | 41 | 187 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 69 | 89 | 125 |
Employee Service Share Based Compensation Tax Benefit Realized From Vesting Of Performance Share Units | 17 | 48 | 49 |
Employee Service Share Based Compensation Cash Flow Tax Benefit Reported | 64 | 103 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 157 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Vested In Period Total Fair Value | $ 165 | $ 247 | $ 226 |
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 | $ 14.02 | $ 18.69 | $ 28.36 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 214 | $ 281 | $ 425 |
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 | $ 61 | $ 151 | $ 154 |
Performance Share Units [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 | $ 91.63 | $ 120.36 | $ 125.41 |
Restructuring and Other Costs89
Restructuring and Other Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 290 | |
Net pre-tax restructuring costs (reversals) | 65 | |
Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 187 | |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 78 | |
Other Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 25 | |
Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 242 | |
Restructuring Reserve | 109 | |
Net pre-tax restructuring costs (reversals) | 242 | |
Utilization and foreign exchange | 133 | |
Expected Costs | 354 | |
Remaining Costs | 112 | |
Current Year Actions [Member] | Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 149 | |
Current Year Actions [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 67 | |
Current Year Actions [Member] | Other Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 26 | |
Current Year Actions [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 63 | |
Net pre-tax restructuring costs (reversals) | 166 | |
Utilization and foreign exchange | 103 | |
Current Year Actions [Member] | Facility Exit, Lease Termination and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 46 | |
Net pre-tax restructuring costs (reversals) | 76 | |
Utilization and foreign exchange | 30 | |
Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 40 | |
Restructuring Reserve | 66 | $ 206 |
Net pre-tax restructuring costs (reversals) | 40 | 326 |
Utilization and foreign exchange | 180 | |
Expected Costs | 408 | |
Remaining Costs | 42 | |
Prior Year Actions [Member] | Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 36 | |
Prior Year Actions [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 4 | |
Prior Year Actions [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 17 | |
Restructuring Reserve | 42 | 183 |
Utilization and foreign exchange | 158 | |
Prior Year Actions [Member] | Facility Exit, Lease Termination and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 23 | |
Restructuring Reserve | 24 | 23 |
Utilization and foreign exchange | 22 | |
Otis [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 59 | |
Otis [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 48 | |
Expected Costs | 57 | |
Remaining Costs | 9 | |
Otis [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 14 | 35 |
Expected Costs | 51 | |
Remaining Costs | 2 | |
UTC Climate, Controls and Security [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 65 | |
UTC Climate, Controls and Security [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 45 | |
Expected Costs | 87 | |
Remaining Costs | 42 | |
UTC Climate, Controls and Security [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 24 | 83 |
Expected Costs | 139 | |
Remaining Costs | 32 | |
Pratt and Whitney [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 111 | |
Pratt and Whitney [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 118 | |
Expected Costs | 118 | |
Remaining Costs | 0 | |
Pratt and Whitney [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | (20) | 82 |
Expected Costs | 62 | |
Remaining Costs | 0 | |
UTC Aerospace Systems [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 49 | |
UTC Aerospace Systems [Member] | Current Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 31 | |
Expected Costs | 92 | |
Remaining Costs | 61 | |
UTC Aerospace Systems [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 16 | 105 |
Expected Costs | 129 | |
Remaining Costs | 8 | |
Eliminations and other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 6 | |
Eliminations and other [Member] | Prior Year Actions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Net pre-tax restructuring costs (reversals) | 6 | $ 21 |
Expected Costs | 27 | |
Remaining Costs | $ 0 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016EUR (€) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Four Quarter Rolling Average Of Notional Amount Of Foreign Exchange Contracts Hedging Foreign Currency Transactions | $ 18,300 | $ 15,600 | ||
Derivatives designated as hedging instruments - assets | 15 | 4 | ||
Derivatives not designated as hedging instruments - assets | 155 | 97 | ||
Derivatives designated as hedging instruments - liabilities | 196 | 428 | ||
Derivatives not designated as hedging instruments - liabilities | 158 | 105 | ||
Hedging Liabilities, Noncurrent | € | € 2,950 | |||
Hedging Liabilities, Current | € | € 500 | |||
Loss recorded in Accumulated other comprehensive loss | 75 | (415) | ||
Loss reclassified from Accumulated other comprehensive loss into Product sales (effective portion) | 171 | 234 | ||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 59 | |||
Maximum Length of Time, Foreign Currency Cash Flow Hedge | 5 years 11 months 23 days | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 56 | 63 | ||
Payments for (Proceeds from) Derivative Instrument, Investing Activities | $ (249) | $ (160) | $ (93) |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Hierarchy) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 951 | $ 987 |
Derivative Assets | 101 | 170 |
Derivative liabilities | 533 | 354 |
Recurring fair value measurements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 951 | 987 |
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 | 170 |
Derivative liabilities | 533 | 354 |
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 |
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 | |
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 |
Fair Value Measurements (Fair92
Fair Value Measurements (Fair Value Techniques) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | $ 127 | $ 122 |
Customer Financing Notes Receivable | 437 | 403 |
Short-Term Borrowings | 600 | 926 |
Long-term debt (excluding capitalized leases) | 23,280 | 19,476 |
Long-term liabilities | 457 | 458 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 121 | 107 |
Customer Financing Notes Receivable | 420 | 403 |
Short-Term Borrowings | 600 | 926 |
Long-term debt (excluding capitalized leases) | 25,110 | 21,198 |
Long-term liabilities | 427 | $ 419 |
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 | 121 | |
Customer Financing Notes Receivable | 420 | |
Short-Term Borrowings | 522 | |
Long-term debt (excluding capitalized leases) | 24,906 | |
Long-term liabilities | 427 | |
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 | 78 | |
Long-term debt (excluding capitalized leases) | 204 | |
Long-term liabilities | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | ||
Total Assets | $ 4,056 | $ 3,022 |
Total Liabilities | 4,058 | 3,286 |
Current Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 2,722 | 1,920 |
Noncurrent Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 1,334 | 1,102 |
Current Liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Liabilities | 2,422 | 1,931 |
Noncurrent Liabilities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Liabilities | $ 1,636 | $ 1,355 |
International Aero Engines AG [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Methodology | In 2012, Pratt & Whitney, Rolls-Royce plc (Rolls-Royce), MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC), 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. | |
Variable Interest Entity, Ownership Percentage | 49.50% | |
International Aero Engines LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Methodology | Additionally, Pratt & Whitney, JAEC and MTU are participants in International Aero Engines, LLC (IAE LLC), whose business purpose is to coordinate the design, development, manufacturing and product support for the PW1100G-JM engine for the Airbus A320neo aircraft and the PW1400G-JM engine for the Irkut MC21 aircraft. Pratt & Whitney holds a 59% net interest in the collaboration and a 59% ownership interest in IAE LLC. IAE and IAE LLC retain limited equity with the primary economics of the programs passed to the participants. | |
Variable Interest Entity, Ownership Percentage | 59.00% |
Guarantees (Details)
Guarantees (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Guarantee Obligations [Line Items] | ||
Environmental, health and safety, tax and employment matters | $ 171,000,000 | $ 171,000,000 |
Balance as of January 1 | 1,212,000,000 | 1,264,000,000 |
Warranties and performance guarantees issued | 246,000,000 | 291,000,000 |
Settlements made | 240,000,000 | 259,000,000 |
Other | (19,000,000) | (84,000,000) |
Balance as of December 31 | 1,199,000,000 | 1,212,000,000 |
Credit Facilities And Debt Obligations (expire 2017 to 2028) | ||
Guarantee Obligations [Line Items] | ||
Maximum Potential Payment | 270,000,000 | 241,000,000 |
Carrying Amount of Liability | 15,000,000 | 0 |
Commercial aerospace financing arrangements (see Note 5) | ||
Guarantee Obligations [Line Items] | ||
Maximum Potential Payment | 348,000,000 | 365,000,000 |
Carrying Amount of Liability | 14,000,000 | 12,000,000 |
Performance Guarantees | ||
Guarantee Obligations [Line Items] | ||
Maximum Potential Payment | 55,000,000 | 55,000,000 |
Carrying Amount of Liability | $ 4,000,000 | $ 3,000,000 |
Contingent Liabilities (Details
Contingent Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases Future Minimum Payments Due | $ 2,094 | ||
Operating Leases Future Minimum Payments Due Current | 462 | ||
Operating Leases Future Minimum Payments Due In Two Years | 354 | ||
Operating Leases Future Minimum Payments Due In Three Years | 286 | ||
Operating Leases Future Minimum Payments Due In Four Years | 209 | ||
Operating Leases Future Minimum Payments Due In Five Years | 145 | ||
Operating Leases Future Minimum Payments Due Thereafter | 638 | ||
Rent Expense | 386 | $ 386 | $ 434 |
Accrual For Environmental Loss Contingencies | $ 829 | $ 837 | |
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 $225 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 $123 million). On August 3, 2012, we filed suit in the local German Tax Court (Berlin-Brandenburg). In March 2016, the local German Tax Court dismissed our suit, and we have appealed this decision to the German Federal Tax Court (FTC). | ||
Loss Contingency Damages Sought | €215 million (approximately $225 million) | ||
Loss Contingency Actions Taken By Defendant | In 2015, UTC made tax and interest payments to German tax authorities of €275 million (approximately $300 million) in order to avoid additional interest accruals pending final resolution of this matter. In the meantime, we continue vigorously to litigate this matter. | ||
Loss Contingency, Interest | €118 million (approximately $123 million) | ||
Loss Contingency, Interest Paid | €275 million (approximately $300 million) | ||
U.S. Defense Contract Management Claim against Pratt & Whitney | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Lawsuit Filing Date | December 24, 2013 | ||
Loss Contingency Allegations | As previously disclosed, in December 2013, a Divisional Administrative Contracting Officer of the United States Defense Contract Management Agency asserted a claim against Pratt & Whitney to recover overpayments of approximately $177 million plus interest (approximately $63 million through December 31, 2016). 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 | $177 million | ||
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. | ||
Loss Contingency, Interest | $63 million | ||
Asbestos Matter [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Allegations | As previously disclosed, 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. | ||
Loss Contingency, Management's Assessment and Process | Our estimated total liability to resolve all pending and unasserted potential future asbestos claims through 2059 is $374.3 million and is principally recorded in Other long-term liabilities on our Consolidated Balance Sheet as of December 31, 2016. This amount is on a pre-tax basis, not discounted, and excludes the Company’s legal fees to defend the asbestos claims (which will continue to be expensed by the Company as they are incurred). In addition, the Company has an insurance recovery receivable for probable asbestos related recoveries of approximately $123.7 million, which is included primarily in Other assets on our Consolidated Balance Sheet as of December 31, 2016. The amounts recorded by UTC for asbestos-related liabilities and insurance recoveries 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 outcomes or resolution of such claims, the average cost of resolution of each new claim, the amount of insurance available, allocation methodologies, the contractual terms with each insurer with whom we have reached settlements, 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, legal rulings that may be made by state and federal courts, and the passage of state or federal legislation. At the end of each year, the Company will evaluate all of these factors and, with input from an outside actuarial expert, make any necessary adjustments to both our estimated asbestos liabilities and insurance recoveries. | ||
Loss Contingency, Estimate of Possible Loss | $ 374 | ||
Loss Contingency, Receivable | $ 124 |
Segment Financial Data (By Segm
Segment Financial Data (By Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | $ 8,172 | $ 7,291 | $ 9,593 | ||||||||
Total Assets | $ 89,706 | $ 87,484 | 89,706 | 87,484 | |||||||
Assets excluding Assets Held for Sale | 86,338 | ||||||||||
Capital Expenditures | 1,699 | 1,652 | 1,594 | ||||||||
Depreciation & Amortization | 1,962 | 1,863 | 1,820 | ||||||||
Major Customers, U.S. Government Sales | 5,626 | 5,630 | 5,879 | ||||||||
Net Sales | 14,659 | $ 14,354 | $ 14,874 | $ 13,357 | 14,300 | $ 13,788 | $ 14,690 | $ 13,320 | 57,244 | 56,098 | 57,900 |
Major Customers, Airbus Sales | 7,688 | $ 7,624 | 7,757 | ||||||||
Sikorsky [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Disposal Date | Nov. 6, 2015 | ||||||||||
Major Customers, U.S. Government Sales | $ 3,100 | 3,800 | |||||||||
UTC Aerospace Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 2,298 | 1,888 | 2,355 | ||||||||
Total Assets | 34,093 | 34,736 | 34,093 | 34,736 | 35,034 | ||||||
Capital Expenditures | 452 | 537 | 533 | ||||||||
Depreciation & Amortization | 807 | 796 | 807 | ||||||||
Major Customers, U.S. Government Sales | 2,301 | 2,409 | 2,459 | ||||||||
Net Sales | 14,465 | 14,094 | 14,215 | ||||||||
Total Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 8,946 | 8,023 | 9,777 | ||||||||
Total Assets | 87,718 | 85,205 | 87,718 | 85,205 | 83,707 | ||||||
Capital Expenditures | 1,611 | 1,573 | 1,540 | ||||||||
Depreciation & Amortization | 1,882 | 1,785 | 1,755 | ||||||||
Net Sales | 58,103 | 56,863 | 58,528 | ||||||||
Eliminations and other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | (368) | (268) | 304 | ||||||||
Total Assets | 1,988 | 2,279 | 1,988 | 2,279 | 2,631 | ||||||
Capital Expenditures | 88 | 79 | 54 | ||||||||
Depreciation & Amortization | 80 | 78 | 65 | ||||||||
Net Sales | (859) | (765) | (628) | ||||||||
General corporate expenses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | (406) | (464) | (488) | ||||||||
Net Sales | 0 | 0 | 0 | ||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Major Customers, U.S. Government Sales | 138 | 276 | 294 | ||||||||
Otis [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 2,147 | 2,338 | 2,640 | ||||||||
Total Assets | 8,867 | 8,846 | 8,867 | 8,846 | 9,313 | ||||||
Capital Expenditures | 94 | 83 | 87 | ||||||||
Depreciation & Amortization | 171 | 176 | 209 | ||||||||
Net Sales | 11,893 | 11,980 | 12,982 | ||||||||
UTC Climate, Controls and Security [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 2,956 | 2,936 | 2,782 | ||||||||
Total Assets | 21,787 | 21,287 | 21,787 | 21,287 | 21,217 | ||||||
Capital Expenditures | 340 | 261 | 228 | ||||||||
Depreciation & Amortization | 354 | 337 | 349 | ||||||||
Net Sales | 16,851 | 16,707 | 16,823 | ||||||||
Pratt and Whitney [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit | 1,545 | 861 | 2,000 | ||||||||
Total Assets | $ 22,971 | $ 20,336 | 22,971 | 20,336 | 18,143 | ||||||
Capital Expenditures | 725 | 692 | 692 | ||||||||
Depreciation & Amortization | 550 | 476 | 390 | ||||||||
Major Customers, U.S. Government Sales | 3,187 | 2,945 | 3,126 | ||||||||
Net Sales | $ 14,894 | $ 14,082 | $ 14,508 |
Segment Financial Data (By Geog
Segment Financial Data (By Geographic Region) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
External Net Sales by Geography | 57,244 | 56,098 | 57,900 |
United States Export Sales | $ 10,827 | $ 9,741 | $ 10,276 |
Operating profit by Geography | $ 8,172 | $ 7,291 | $ 9,593 |
Long-Lived Assets by Geography | 9,158 | 8,732 | 8,592 |
United States Operations | |||
External Net Sales by Geography | 32,335 | 30,989 | 30,814 |
Operating profit by Geography | $ 4,566 | $ 4,391 | $ 5,067 |
Long-Lived Assets by Geography | 4,822 | 4,517 | 4,211 |
Europe [Member] | |||
External Net Sales by Geography | 11,151 | 10,945 | 12,587 |
United States Export Sales | $ 5,065 | $ 4,366 | $ 4,137 |
Operating profit by Geography | $ 1,933 | $ 1,882 | $ 2,238 |
Long-Lived Assets by Geography | 1,538 | 1,525 | 1,577 |
Asia Pacific [Member] | |||
External Net Sales by Geography | 8,260 | 8,425 | 8,746 |
United States Export Sales | $ 3,449 | $ 2,902 | $ 3,469 |
Operating profit by Geography | $ 1,484 | $ 1,641 | $ 1,712 |
Long-Lived Assets by Geography | 999 | 994 | 995 |
Other | |||
External Net Sales by Geography | 5,479 | 5,584 | 5,511 |
United States Export Sales | $ 2,313 | $ 2,473 | $ 2,670 |
Operating profit by Geography | $ 963 | $ 109 | $ 760 |
Long-Lived Assets by Geography | 1,325 | 1,273 | 1,379 |
Eliminations and other | |||
External Net Sales by Geography | 19 | 155 | 242 |
Operating profit by Geography | $ (774) | $ (732) | $ (184) |
Long-Lived Assets by Geography | 474 | 423 | 430 |
Selected Quarterly Financial 98
Selected Quarterly Financial Data - Unaudited (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Jan. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | ||||||||||||
Net Sales | $ | $ 14,659 | $ 14,354 | $ 14,874 | $ 13,357 | $ 14,300 | $ 13,788 | $ 14,690 | $ 13,320 | $ 57,244 | $ 56,098 | $ 57,900 | |
Gross margin | $ | 3,936 | 4,012 | 4,133 | 3,703 | 3,647 | 3,988 | 4,218 | 3,814 | ||||
Net income attributable to common shareowners | $ | $ 1,013 | $ 1,480 | $ 1,379 | $ 1,183 | $ 3,278 | $ 1,362 | $ 1,542 | $ 1,426 | $ 5,055 | $ 7,608 | $ 6,220 | |
Earnings Per Share of Common Stock - Basic and Diluted: | ||||||||||||
Basic - net income | $ 1.26 | $ 1.80 | $ 1.67 | $ 1.43 | $ 3.86 | $ 1.55 | $ 1.76 | $ 1.60 | $ 6.18 | $ 8.72 | $ 6.92 | |
Diluted - net income | 1.25 | 1.78 | 1.65 | 1.42 | 3.86 | 1.54 | 1.73 | 1.58 | 6.12 | 8.61 | 6.82 | |
Common Stock Price - High | 110.98 | 109.69 | 105.89 | 100.25 | 100.80 | 111.58 | 119.14 | 124.11 | ||||
Common Stock Price - Low | 98.67 | 100.10 | 97.21 | 84.66 | 88.36 | 86.82 | 110.93 | 111.52 | ||||
Dividend | $ 0.66 | $ 0.66 | $ 0.66 | $ 0.64 | $ 0.64 | $ 0.64 | $ 0.64 | $ 0.64 | $ 2.62 | $ 2.56 | $ 2.36 | |
Registered Shareholders Total | 19,126 |
Performance Graph - Unaudited99
Performance Graph - Unaudited (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
United Technologies Corporation | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | $ 168.81 | $ 144.23 | $ 168.50 | $ 163.30 | $ 115.10 | $ 100 |
S&P 500 Index | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | 198.18 | 177.01 | 174.60 | 153.57 | 116 | 100 |
Dow Jones Industrial Average | ||||||
Performance Graph [Line Items] | ||||||
December, Graph Details | $ 183.61 | $ 157.61 | $ 157.28 | $ 142.93 | $ 110.24 | $ 100 |