8-KOther EventsExhibits & Filings

RTX Corp 8-K Report, Corporate Update (May 6, 2005)

Filed May 6, 2005For Securities:RTX

Summary

United Technologies Corporation (UTC) filed this Form 8-K on May 6, 2005, primarily to present restated historical financial information. This restatement is a consequence of UTC's decision to early adopt Statement of Financial Accounting Standards (SFAS) No. 123(R), 'Share-Based Payment,' which mandates the recognition of stock option costs at fair value. The company is applying a modified retrospective approach, requiring adjustments to prior periods as if SFAS 123(R) had been adopted from January 1, 1995. In addition to the stock-based compensation accounting changes, UTC is also restating prior periods to reflect a reclassification of interest income from segment revenues and operating profit to 'Eliminations and other' for improved comparability. The filing also notes a 2-for-1 common stock split in the form of a stock dividend approved by the Board of Directors subsequent to the first quarter of 2005, with pro forma financial information presented to reflect its impact. The purpose of this 8-K is to enable UTC to file registration statements, including shelf registration statements, to support its future capital needs.

Key Highlights

  • 1RTX Corp (UTC) is filing restated historical financial data to reflect the early adoption of SFAS 123(R) on share-based payments.
  • 2The adoption of SFAS 123(R) requires stock option costs to be measured at fair value and recognized over the vesting period.
  • 3A modified retrospective approach is being used for SFAS 123(R) adoption, impacting periods prior to January 1, 2005.
  • 4Interest income has been reclassified from segment revenues and operating profit to 'Eliminations and other' in prior periods for comparability.
  • 5A 2-for-1 common stock split (in the form of a stock dividend) was approved by the Board of Directors post-Q1 2005.
  • 6Pro forma financial information is included to illustrate the impact of the stock dividend.
  • 7This filing is intended to facilitate the filing of registration statements for future capital needs.

Frequently Asked Questions

RTX Corp is filing this Form 8-K to provide restated historical financial information. This restatement is primarily to reflect the company's early adoption of SFAS 123(R), 'Share-Based Payment,' and a reclassification of interest income. This is necessary to meet SEC requirements for filing registration statements and to ensure financial comparability.

SFAS 123(R) is a standard that changes how companies account for share-based payments, such as stock options. It requires these awards to be valued at their fair value on the grant date and expensed over their vesting period. RTX Corp is adopting this standard early, which necessitates restating prior financial periods to reflect these new expense recognition rules, potentially impacting reported earnings.

RTX Corp reclassified interest income from its segment revenues and operating profit to a category called 'Eliminations and other.' This change was made for enhanced comparability of its financial results across different periods and segments. Prior periods have been restated to reflect this reclassification.

Yes, a 2-for-1 common stock split in the form of a stock dividend was approved by the Board of Directors subsequent to the first quarter of 2005. The filing includes pro forma financial information in the notes to the consolidated financial statements that show the effects of this stock dividend as if it had occurred at the beginning of all periods presented, allowing for a comparable view of per-share data.