Summary
This 10-K filing for United Technologies Corporation (UTC), filed in February 2015, covers the fiscal year ended December 31, 2014. The company operates through five primary segments: Otis (elevators and escalators), UTC Climate, Controls & Security, Pratt & Whitney (aircraft engines), UTC Aerospace Systems, and Sikorsky (helicopters). A significant portion of UTC's sales (61% in 2014) are international, highlighting its global reach. The report details the company's diverse product and service offerings across building systems and aerospace industries, emphasizing its role as a provider of high-technology solutions. Investors should note the company's ongoing efforts in research and development, with significant expenditures in both internal R&D and contract-funded projects. The filing also addresses various risks and uncertainties, including those related to global economic conditions, industry-specific cycles in construction and aerospace, government contracting, currency fluctuations, supply chain dependencies, and ongoing legal proceedings, particularly concerning export control violations and government contracts. The company's business strategy involves both internal development and strategic acquisitions.
Financial Highlights
53 data points| Revenue | $57.90B |
| Cost of Revenue | $30.37B |
| Gross Profit | $27.53B |
| R&D Expenses | $2.48B |
| SG&A Expenses | $6.17B |
| Operating Expenses | $49.55B |
| Operating Income | $9.59B |
| Interest Expense | $881.00M |
| Net Income | $6.22B |
| EPS (Basic) | $6.92 |
| EPS (Diluted) | $6.82 |
| Shares Outstanding (Basic) | 898.30M |
| Shares Outstanding (Diluted) | 911.60M |
Key Highlights
- 1The company operates through five key segments: Otis, UTC Climate, Controls & Security, Pratt & Whitney, UTC Aerospace Systems, and Sikorsky, serving both building systems and aerospace industries.
- 2International sales accounted for a substantial 61% of consolidated sales in 2014, underscoring the company's global operational footprint.
- 3UTC invested $2.6 billion in internal research and development in 2014, representing 4.0% of total sales, indicating a strong focus on innovation.
- 4The aerospace businesses (Pratt & Whitney and UTC Aerospace Systems) represented approximately 55% of consolidated sales in 2014, highlighting their significant contribution to revenue.
- 5The filing discloses ongoing legal proceedings and investigations, including a $55 million civil penalty related to export control violations and ongoing scrutiny of government contracts.
- 6Backlog for Pratt & Whitney was substantial at $50.2 billion as of December 31, 2014, with a significant portion expected to convert to sales in 2015.
- 7The company is actively repurchasing its shares, with 3.86 million shares repurchased in the quarter ended December 31, 2014.