SEGMENT FINANCIAL DATA
Our operations for the periods presented herein are classified into five 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.
Otis products include elevators, escalators, moving walkways and service sold to customers in the commercial and residential property industries around the world.
UTC Climate, Controls & Security products and related services include HVAC and refrigeration systems, building controls and automation, fire and special hazard suppression systems and equipment, security monitoring and rapid response systems, provided to a diversified international customer base principally in the industrial, commercial and residential property and commercial transportation sectors.
Pratt & Whitney products include commercial, military, business jet and general aviation aircraft engines, parts and services, industrial gas turbines, 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 and produces land-based power generation equipment.
Effective July 1, 2012, the auxiliary power unit business (APU) of the UTC Aerospace Systems business segment was transferred to the Pratt & Whitney business segment. The APU business designs and manufactures a variety of products for commercial and military aircraft. Annual sales for the APU business are approximately $600 million. The reclassification has been made prospectively; prior year results have not been restated for the transfer of the business.
UTC Aerospace Systems provides aerospace products and aftermarket services for commercial, military, business jet and general aviation customers worldwide. Products include electric power generation, management and distribution systems, flight control systems, engine control systems, intelligence, surveillance and reconnaissance systems, engine components, environmental control systems, fire protection and detection systems, propeller systems, aircraft nacelles, and interior, actuation, landing and electronic systems.
Sikorsky products include military and commercial helicopters, aftermarket helicopter and aircraft parts and services.
We have reported our financial and operational results for the periods presented herein under the five principal segments noted above, consistent with how we have reviewed our business operations for decision-making purposes, resource allocation and performance assessment during 2013.
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) | | 2013 | | 2012 | | 2011 | | 2013 | | 2012 | | 2011 |
Otis | | $ | 12,484 |
| | $ | 12,056 |
| | $ | 12,437 |
| | $ | 2,590 |
| | $ | 2,512 |
| | $ | 2,815 |
|
UTC Climate, Controls & Security | | 16,809 |
| | 17,090 |
| | 18,864 |
| | 2,590 |
| | 2,425 |
| | 2,212 |
|
Pratt & Whitney | | 14,501 |
| | 13,964 |
| | 12,711 |
| | 1,876 |
| | 1,589 |
| | 1,867 |
|
UTC Aerospace Systems | | 13,347 |
| | 8,334 |
| | 4,760 |
| | 2,018 |
| | 944 |
| | 759 |
|
Sikorsky | | 6,253 |
| | 6,791 |
| | 7,355 |
| | 594 |
| | 712 |
| | 840 |
|
Total segment | | 63,394 |
| | 58,235 |
| | 56,127 |
| | 9,668 |
| | 8,182 |
| | 8,493 |
|
Eliminations and other | | (768 | ) | | (527 | ) | | (373 | ) | | 22 |
| | (72 | ) | | (228 | ) |
General corporate expenses | | — |
| | — |
| | — |
| | (481 | ) | | (426 | ) | | (419 | ) |
Consolidated | | $ | 62,626 |
| | $ | 57,708 |
| | $ | 55,754 |
| | $ | 9,209 |
| | $ | 7,684 |
| | $ | 7,846 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total Assets | | Capital Expenditures | | Depreciation & Amortization |
(dollars in millions) | | 2013 | | 2012 | | 2011 | | 2013 | | 2012 | | 2011 | | 2013 | | 2012 | | 2011 |
Otis | | $ | 9,354 |
| | $ | 8,866 |
| | $ | 8,717 |
| | $ | 122 |
| | $ | 141 |
| | $ | 75 |
| | $ | 209 |
| | $ | 220 |
| | $ | 223 |
|
UTC Climate, Controls & Security | | 21,543 |
| | 22,253 |
| | 21,630 |
| | 266 |
| | 265 |
| | 305 |
| | 380 |
| | 418 |
| | 432 |
|
Pratt & Whitney | | 17,062 |
| | 15,938 |
| | 10,705 |
| | 617 |
| | 462 |
| | 290 |
| | 319 |
| | 324 |
| | 332 |
|
UTC Aerospace Systems | | 35,461 |
| | 35,589 |
| | 8,593 |
| | 510 |
| | 367 |
| | 163 |
| | 761 |
| | 412 |
| | 172 |
|
Sikorsky | | 5,762 |
| | 4,975 |
| | 4,628 |
| | 119 |
| | 94 |
| | 92 |
| | 85 |
| | 85 |
| | 84 |
|
Total segment | | 89,182 |
| | 87,621 |
| | 54,273 |
| | 1,634 |
| | 1,329 |
| | 925 |
| | 1,754 |
| | 1,459 |
| | 1,243 |
|
Eliminations and other | | 1,412 |
| | 1,788 |
| | 7,179 |
| | 54 |
| | 60 |
| | 4 |
| | 67 |
| | 65 |
| | 20 |
|
Consolidated | | $ | 90,594 |
| | $ | 89,409 |
| | $ | 61,452 |
| | $ | 1,688 |
| | $ | 1,389 |
| | $ | 929 |
| | $ | 1,821 |
| | $ | 1,524 |
| | $ | 1,263 |
|
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) | | 2013 | | 2012 | | 2011 | | 2013 | | 2012 | | 2011 | | 2013 | | 2012 | | 2011 |
United States Operations | | $ | 35,994 |
| | $ | 32,175 |
| | $ | 28,993 |
| | $ | 4,780 |
| | $ | 3,663 |
| | $ | 4,264 |
| | $ | 4,483 |
| | $ | 4,311 |
| | $ | 2,974 |
|
International Operations | | | | | | | | | | | | | | | | | | |
Europe | | 12,652 |
| | 11,823 |
| | 12,344 |
| | 2,419 |
| | 2,100 |
| | 2,089 |
| | 1,796 |
| | 1,804 |
| | 1,210 |
|
Asia Pacific | | 8,696 |
| | 8,733 |
| | 9,016 |
| | 1,773 |
| | 1,648 |
| | 1,429 |
| | 957 |
| | 947 |
| | 883 |
|
Other | | 5,274 |
| | 4,964 |
| | 5,376 |
| | 696 |
| | 772 |
| | 711 |
| | 1,203 |
| | 1,122 |
| | 760 |
|
Eliminations and other | | 10 |
| | 13 |
| | 25 |
| | (459 | ) | | (499 | ) | | (647 | ) | | 427 |
| | 334 |
| | 374 |
|
Consolidated | | $ | 62,626 |
| | $ | 57,708 |
| | $ | 55,754 |
| | $ | 9,209 |
| | $ | 7,684 |
| | $ | 7,846 |
| | $ | 8,866 |
| | $ | 8,518 |
| | $ | 6,201 |
|
Sales from U.S. operations include export sales as follows:
|
| | | | | | | | | | | | |
(dollars in millions) | | 2013 | | 2012 | | 2011 |
Europe | | $ | 4,489 |
| | $ | 3,117 |
| | $ | 2,284 |
|
Asia Pacific | | 4,517 |
| | 2,998 |
| | 2,448 |
|
Other | | 3,165 |
| | 3,086 |
| | 2,989 |
|
| | $ | 12,171 |
| | $ | 9,201 |
| | $ | 7,721 |
|
Major Customers. Net Sales include sales under prime contracts and subcontracts to the U.S. Government, primarily related to Pratt & Whitney, UTC Aerospace Systems and Sikorsky products, as follows:
|
| | | | | | | | | | | | |
(dollars in millions) | | 2013 | | 2012 | | 2011 |
Pratt & Whitney | | $ | 3,559 |
| | $ | 3,718 |
| | $ | 2,995 |
|
UTC Aerospace Systems | | 2,530 |
| | 1,742 |
| | 1,021 |
|
Sikorsky | | 3,648 |
| | 4,512 |
| | 4,967 |
|
Other | | 142 |
| | 126 |
| | 125 |
|
| | $ | 9,879 |
| | $ | 10,098 |
| | $ | 9,108 |
|
