FARMINGTON, Conn., April 26, 2017 /PRNewswire/ -- United
Technologies Corp. (NYSE: UTX) today reported first quarter 2017
results. All results in this release reflect continuing
operations unless otherwise noted.
"United Technologies is off to a great start in 2017 as all four
businesses delivered strong top line growth," said UTC Chairman and
Chief Executive Officer Gregory
Hayes.
"Our continued execution against our strategic priorities and
our investments in innovation are enabling us to meet our financial
commitments. We remain fully confident in our 2017 expectations and
our 2020 targets. Our portfolio of industry leading franchises is
well positioned to create significant and sustainable long-term
shareholder value."
First quarter GAAP EPS of $1.73
was up 32 cents (23 percent) versus
the prior year and included 25 cents
of favorable non-recurring significant items net of restructuring.
Adjusted EPS of $1.48 was up 1
percent. Sales of $13.8 billion were
up 3 percent, driven by 3 points of organic growth and 1 point of
net acquisition growth, partially offset by 1 point of adverse
foreign exchange.
Net income for the quarter was $1.4
billion, up 18 percent versus the prior year. Cash flow from
operations for the quarter was $1.0
billion (72 percent of net income attributable to common
shareholders) and capital expenditures were $325 million. Free cash flow of $668 million in the quarter was 48 percent of net
income attributable to common shareowners.
In the quarter, Otis new equipment orders increased 4 percent
versus the prior year at constant currency and grew 11 percent
excluding China. Equipment orders at UTC Climate, Controls
& Security increased by 7 percent. Commercial aftermarket
sales were up 7 percent at Pratt & Whitney and were up 12
percent at UTC Aerospace Systems.
UTC reiterated its 2017 outlook and continues to anticipate:
- Adjusted EPS of $6.30 to
$6.60*;
- Total sales of $57.5 to $59
billion, with year over year growth of 1 to 3 percent
including organic sales growth of 2 to 4 percent*;
- Free cash flow in the range of 90 to 100 percent* of net income
attributable to common shareowners;
- Share repurchases of $3.5
billion; and
- A $1 billion to $2 billion
placeholder for acquisitions.
*Note: When we provide
expectations for adjusted EPS, organic sales and free cash flow on
a forward-looking basis, a reconciliation of the differences
between the non-GAAP expectations and the corresponding GAAP
measures generally is not available without unreasonable
effort. See "Use and Definitions of Non-GAAP Financial
Measures" below for additional information.
United Technologies Corp., based in Farmington, Connecticut, provides high
technology products and services to the building and aerospace
industries. By combining a passion for science with precision
engineering, the company is creating smart, sustainable solutions
the world needs. Additional information, including a webcast, is
available at www.utc.com or
http://edge.media-server.com/m/p/twupxeuw, or to listen to the
earnings call by phone, dial (877) 280-7280 between 7:40 a.m. and 8:00 a.m. ET. To learn more
about UTC, visit the website or follow the company on Twitter:
@UTC
Use and Definitions of Non-GAAP Financial Measures
United Technologies Corporation reports its financial results in
accordance with accounting principles generally accepted in
the United States ("GAAP").
We supplement the reporting of our financial information
determined under GAAP with certain non-GAAP financial
information. The non-GAAP information presented provides
investors with additional useful information, but should not be
considered in isolation or as substitutes for the related GAAP
measures. Moreover, other companies may define non-GAAP
measures differently, which limits the usefulness of these measures
for comparisons with such other companies. We encourage
investors to review our financial statements and publicly-filed
reports in their entirety and not to rely on any single financial
measure.
Adjusted net sales, organic sales, adjusted operating profit,
adjusted net income and adjusted diluted earnings per share ("EPS")
are non-GAAP financial measures. Adjusted net sales
represents consolidated net sales from continuing operations (a
GAAP measure), excluding significant items of a non-recurring
and/or nonoperational nature (hereinafter referred to as "other
significant items"). Organic sales represents consolidated
net sales (a GAAP measure), excluding the impact of foreign
currency translation, acquisitions and divestitures completed in
the preceding twelve months and other significant items.
Adjusted operating profit represents income from continuing
operations (a GAAP measure), excluding restructuring costs and
other significant items. Adjusted net income represents net income
from continuing operations (a GAAP measure), excluding
restructuring costs and other significant items. Adjusted diluted
EPS represents diluted earnings per share from continuing
operations (a GAAP measure), excluding restructuring costs and
other significant items. For the business segments, when
applicable, adjustments of net sales, operating profit and margins
similarly reflect continuing operations, excluding restructuring
and other significant items. Management believes that the
non-GAAP measures just mentioned are useful in providing
period-to-period comparisons of the results of the Company's
ongoing operational performance.
Free cash flow is a non-GAAP financial measure that represents
cash flow from operations (a GAAP measure) less capital
expenditures. Management believes free cash flow is a useful
measure of liquidity and an additional basis for assessing UTC's
ability to fund its activities, including the financing of
acquisitions, debt service, repurchases of UTC's common stock and
distribution of earnings to shareholders.
A reconciliation of the non-GAAP measures to the corresponding
amounts prepared in accordance with GAAP appears in the tables in
this Appendix. The tables provide additional information as
to the items and amounts that have been excluded from the adjusted
measures.
When we provide our expectation for adjusted EPS, organic sales
and free cash flow on a forward-looking basis, a reconciliation of
the differences between the non-GAAP expectations and the
corresponding GAAP measures (expected diluted EPS from continuing
operations, sales and expected cash flow from operations) generally
is not available without unreasonable effort due to potentially
high variability, complexity and low visibility as to the items
that would be excluded from the GAAP measure in the relevant future
period, such as unusual gains and losses, the ultimate outcome of
pending litigation, fluctuations in foreign currency exchange
rates, the impact and timing of potential acquisitions and
divestitures, and other structural changes or their probable
significance. The variability of the excluded items may have
a significant, and potentially unpredictable, impact on our future
GAAP results.
Cautionary Statement
This press release contains
statements which, to the extent they are not statements of
historical or present fact, constitute "forward-looking statements"
under the securities laws. From time to time, oral or written
forward-looking statements may also be included in other
information released to the public. These forward-looking
statements are intended to provide management's current
expectations or plans for our future operating and financial
performance, based on assumptions currently believed to be valid.
Forward-looking statements can be identified by the use of words
such as "believe," "expect," "expectations," "plans," "strategy,"
"prospects," "estimate," "project," "target," "anticipate," "will,"
"should," "see," "guidance," "confident" and other words of similar
meaning in connection with a discussion of future operating or
financial performance. Forward-looking statements may include,
among other things, statements relating to future sales, earnings,
cash flow, results of operations, uses of cash, share repurchases
and other measures of financial performance or potential future
plans, strategies or transactions. All forward-looking statements
involve risks, uncertainties and other factors that may cause
actual results to differ materially from those expressed or implied
in the forward-looking statements. For those statements, we claim
the protection of the safe harbor for forward-looking statements
contained in the U.S. Private Securities Litigation Reform Act of
1995. Such risks, uncertainties and other factors include, without
limitation: (1) the effect of economic conditions in the industries
and markets in which we operate in the U.S. and globally and any
changes therein, including financial market conditions,
fluctuations in commodity prices, interest rates and foreign
currency exchange rates, levels of end market demand in
construction and in both the commercial and defense segments of the
aerospace industry, levels of air travel, financial condition of
commercial airlines, the impact of weather conditions and natural
disasters and the financial condition of our customers and
suppliers; (2) challenges in the development, production, delivery,
support, performance and realization of the anticipated benefits of
advanced technologies and new products and services; (3) future
levels of indebtedness and capital spending and research and
development spending; (4) future availability of credit and factors
that may affect such availability, including credit market
conditions and our capital structure; (5) the timing and scope of
future repurchases of our common stock, which may be suspended at
any time due to market conditions and the level of other investing
activities and uses of cash; (6) delays and disruption in delivery
of materials and services from suppliers; (7) company and customer-
directed cost reduction efforts and restructuring costs and savings
and other consequences thereof; (8) the scope, nature, impact or
timing of acquisition and divestiture activity, including among
other things integration of acquired businesses into our existing
businesses and realization of synergies and opportunities for
growth and innovation; (9) new business opportunities; (10) our
ability to realize the intended benefits of organizational changes;
(11) the anticipated benefits of diversification and balance of
operations across product lines, regions and industries; (12) the
outcome of legal proceedings, investigations and other
contingencies; (13) pension plan assumptions and future
contributions; (14) the impact of the negotiation of collective
bargaining agreements and labor disputes; (15) the effect of
changes in political conditions in the U.S. and other countries in
which we operate, including the effect of changes in U.S. trade
policies or the U.K.'s pending withdrawal from the EU, on general
market conditions, global trade policies and currency exchange
rates in the near term and beyond; and (16) the effect of changes
in tax, environmental, regulatory (including among other things
import/export) and other laws and regulations in the U.S. and other
countries in which we operate. For additional
information identifying factors that may cause actual results to
vary materially from those stated in forward-looking statements,
see our reports on Forms 10-K, 10-Q and 8-K filed with or furnished
to the SEC from time to time. Any forward-looking statement speaks
only as of the date on which it is made, and we assume no
obligation to update or revise such statement, whether as a result
of new information, future events or otherwise, except as required
by applicable law.
UTC-IR
United
Technologies Corporation
|
Condensed
Consolidated Statement of Operations
|
|
|
|
Quarter Ended
March 31,
|
|
|
(Unaudited)
|
(Millions, except per
share amounts)
|
2017
|
|
2016
|
Net
Sales
|
$
|
13,815
|
|
|
$
|
13,357
|
|
Costs and
Expenses:
|
|
|
|
|
Cost of products and
services sold
|
10,077
|
|
|
9,654
|
|
|
Research and
development
|
577
|
|
|
541
|
|
|
Selling, general and
administrative
|
1,482
|
|
|
1,363
|
|
|
Total Costs and
Expenses
|
12,136
|
|
|
11,558
|
|
Other income,
net
|
588
|
|
|
146
|
|
Operating
profit
|
2,267
|
|
|
1,945
|
|
|
Interest expense,
net
|
213
|
|
|
223
|
|
Income from
continuing operations before income taxes
|
2,054
|
|
|
1,722
|
|
|
Income tax
expense
|
586
|
|
|
469
|
|
Income from
continuing operations
|
1,468
|
|
|
1,253
|
|
|
Less: Noncontrolling
interest in subsidiaries' earnings from continuing
operations
|
82
|
|
|
81
|
|
Income from
continuing operations attributable to common shareowners
|
1,386
|
|
|
1,172
|
|
Discontinued
operations:
|
|
|
|
|
Gain on
disposal
|
—
|
|
|
18
|
|
|
Income tax
expense
|
—
|
|
|
(7)
|
|
Income from
discontinued operations attributable to common
shareowners
|
—
|
|
|
11
|
|
Net income
attributable to common shareowners
|
$
|
1,386
|
|
|
$
|
1,183
|
|
Earnings Per Share
of Common Stock - Basic:
|
|
|
|
|
From continuing
operations attributable to common shareowners
|
$
|
1.75
|
|
|
$
|
1.42
|
|
|
From discontinued
operations attributable to common shareowners
|
—
|
|
|
0.01
|
|
|
Total attributable to
common shareowners
|
$
|
1.75
|
|
|
$
|
1.43
|
|
Earnings Per Share
of Common Stock - Diluted:
|
|
|
|
|
From continuing
operations attributable to common shareowners
|
$
|
1.73
|
|
|
$
|
1.41
|
|
|
From discontinued
operations attributable to common shareowners
|
—
|
|
|
0.01
|
|
|
Total attributable to
common shareowners
|
$
|
1.73
|
|
|
$
|
1.42
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
Basic
shares
|
794
|
|
|
825
|
|
|
Diluted
shares
|
802
|
|
|
831
|
|
|
As described on the following pages, consolidated results for
the quarters ended March 31, 2017 and
2016 include restructuring costs and significant non-recurring and
non-operational items. See discussion above, "Use and Definitions
of Non-GAAP Financial Measures," regarding consideration of such
costs and items when evaluating the underlying financial
performance.
See accompanying Notes to Condensed Consolidated Financial
Statements.
United
Technologies Corporation
|
Segment Net Sales
and Operating Profit
|
|
|
Quarter Ended
March 31,
|
|
(Unaudited)
|
(Millions)
|
2017
|
|
2016
|
Net
Sales
|
|
|
|
Otis
|
$
|
2,804
|
|
|
$
|
2,715
|
|
UTC Climate, Controls
& Security
|
3,892
|
|
|
3,728
|
|
Pratt &
Whitney
|
3,758
|
|
|
3,588
|
|
UTC Aerospace
Systems
|
3,611
|
|
|
3,505
|
|
Segment
Sales
|
14,065
|
|
|
13,536
|
|
Eliminations and
other
|
(250)
|
|
|
(179)
|
|
Consolidated Net
Sales
|
$
|
13,815
|
|
|
$
|
13,357
|
|
|
|
|
|
Operating
Profit
|
|
|
|
Otis
|
$
|
452
|
|
|
$
|
466
|
|
UTC Climate, Controls
& Security
|
963
|
|
|
606
|
|
Pratt &
Whitney
|
393
|
|
|
410
|
|
UTC Aerospace
Systems
|
576
|
|
|
538
|
|
Segment Operating
Profit
|
2,384
|
|
|
2,020
|
|
Eliminations and
other
|
(13)
|
|
|
16
|
|
General corporate
expenses
|
(104)
|
|
|
(91)
|
|
Consolidated
Operating Profit
|
$
|
2,267
|
|
|
$
|
1,945
|
|
|
Segment Operating
Profit Margin
|
|
Otis
|
16.1
|
%
|
|
17.2
|
%
|
UTC Climate, Controls
& Security
|
24.7
|
%
|
|
16.3
|
%
|
Pratt &
Whitney
|
10.5
|
%
|
|
11.4
|
%
|
UTC Aerospace
Systems
|
16.0
|
%
|
|
15.3
|
%
|
Segment Operating
Profit Margin
|
16.9
|
%
|
|
14.9
|
%
|
As described on the following pages, consolidated results for
the quarters ended March 31, 2017 and
2016 include restructuring costs and significant non-recurring and
non-operational items. See discussion above, "Use and Definitions
of Non-GAAP Financial Measures," regarding consideration of such
costs and items when evaluating the underlying financial
performance.
United
Technologies Corporation
|
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
|
|
|
Quarter Ended
March 31,
|
|
(Unaudited)
|
In Millions - Income
(Expense)
|
2017
|
|
2016
|
Income from
continuing operations attributable to common
shareowners
|
$
|
1,386
|
|
|
$
|
1,172
|
|
Restructuring
Costs included in Operating Profit:
|
|
|
|
Otis
|
(5)
|
|
|
(15)
|
|
UTC Climate, Controls
& Security
|
(23)
|
|
|
(28)
|
|
Pratt &
Whitney
|
—
|
|
|
(5)
|
|
UTC Aerospace
Systems
|
(23)
|
|
|
(13)
|
|
Eliminations and
other
|
(1)
|
|
|
(1)
|
|
|
(52)
|
|
|
(62)
|
|
Significant
non-recurring and non-operational items included in Operating
Profit:
|
|
|
|
UTC Climate, Controls
& Security
|
|
|
|
Gain on sale of
investments in Watsco, Inc.
|
379
|
|
|
—
|
|
Eliminations and
other
|
|
|
|
Gain on sale of
available-for-sale security
|
1
|
|
|
—
|
|
|
380
|
|
|
—
|
|
Total impact on
Consolidated Operating Profit
|
328
|
|
|
(62)
|
|
Tax effect of
restructuring and significant non-recurring and non-operational
items
above
|
(124)
|
|
|
20
|
|
Less: Impact on Net
Income from Continuing Operations Attributable to Common
Shareowners
|
204
|
|
|
(42)
|
|
Adjusted income
from continuing operations attributable to common
shareowners
|
$
|
1,182
|
|
$
|
1,214
|
|
|
|
|
|
Diluted Earnings
Per Share from Continuing Operations
|
$
|
1.73
|
|
|
$
|
1.41
|
|
Impact on Diluted
Earnings Per Share from Continuing Operations
|
0.25
|
|
|
(0.05)
|
|
Adjusted Diluted
Earnings Per Share from Continuing Operations
|
$
|
1.48
|
|
|
$
|
1.46
|
|
United
Technologies Corporation
|
Segment Net Sales
and Operating Profit Adjusted for Restructuring Costs
and
|
Significant
Non-recurring and Non-operational Items (as reflected on the
previous page)
|
|
|
Quarter Ended
March 31,
|
|
(Unaudited)
|
(Millions)
|
2017
|
|
2016
|
Net
Sales
|
|
|
|
Otis
|
$
|
2,804
|
|
|
$
|
2,715
|
|
UTC Climate, Controls
& Security
|
3,892
|
|
|
3,728
|
|
Pratt &
Whitney
|
3,758
|
|
|
3,588
|
|
UTC Aerospace
Systems
|
3,611
|
|
|
3,505
|
|
Segment
Sales
|
14,065
|
|
|
13,536
|
|
Eliminations and
other
|
(250)
|
|
|
(179)
|
|
Consolidated Net
Sales
|
$
|
13,815
|
|
|
$
|
13,357
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
|
|
Otis
|
$
|
457
|
|
|
$
|
481
|
|
UTC Climate, Controls
& Security
|
607
|
|
|
634
|
|
Pratt &
Whitney
|
393
|
|
|
415
|
|
UTC Aerospace
Systems
|
599
|
|
|
551
|
|
Segment Operating
Profit
|
2,056
|
|
|
2,081
|
|
Eliminations and
other
|
(14)
|
|
|
17
|
|
General corporate
expenses
|
(103)
|
|
|
(91)
|
|
Adjusted
Consolidated Operating Profit
|
$
|
1,939
|
|
|
$
|
2,007
|
|
|
|
Adjusted Segment
Operating Profit Margin
|
|
Otis
|
16.3
|
%
|
|
17.7
|
%
|
UTC Climate, Controls
& Security
|
15.6
|
%
|
|
17.0
|
%
|
Pratt &
Whitney
|
10.5
|
%
|
|
11.6
|
%
|
UTC Aerospace
Systems
|
16.6
|
%
|
|
15.7
|
%
|
Adjusted Segment
Operating Profit Margin
|
14.6
|
%
|
|
15.4
|
%
|
United
Technologies Corporation
|
Components of
Changes in Net Sales
|
|
Quarter Ended
March 31, 2017 Compared with Quarter Ended March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Factors
Contributing to Total % Change in Net Sales
|
|
|
Organic
|
|
FX
Translation
|
|
Acquisitions /
Divestitures, net
|
|
Other
|
|
Total
|
Otis
|
|
3%
|
|
(1)%
|
|
—
|
|
1%
|
|
3%
|
UTC Climate, Controls
& Security
|
|
2%
|
|
(2)%
|
|
4%
|
|
—
|
|
4%
|
Pratt &
Whitney
|
|
4%
|
|
1%
|
|
—
|
|
—
|
|
5%
|
UTC Aerospace
Systems
|
|
5%
|
|
(1)%
|
|
(1)%
|
|
—
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
3%
|
|
(1)%
|
|
1%
|
|
—
|
|
3%
|
United
Technologies Corporation
|
Condensed
Consolidated Balance Sheet
|
|
|
March
31,
|
|
December 31,
|
|
2017
|
|
2016
|
(Millions)
|
(Unaudited)
|
|
(Unaudited)
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
7,156
|
|
|
$
|
7,157
|
|
Accounts receivable,
net
|
11,840
|
|
|
11,481
|
|
Inventories and
contracts in progress, net
|
9,386
|
|
|
8,704
|
|
Other assets,
current
|
923
|
|
|
1,208
|
|
Total Current
Assets
|
29,305
|
|
|
28,550
|
|
Fixed assets,
net
|
9,255
|
|
|
9,158
|
|
Goodwill
|
27,273
|
|
|
27,059
|
|
Intangible assets,
net
|
15,780
|
|
|
15,684
|
|
Other
assets
|
8,760
|
|
|
9,255
|
|
Total
Assets
|
$
|
90,373
|
|
|
$
|
89,706
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term
debt
|
$
|
3,684
|
|
|
$
|
2,204
|
|
Accounts
payable
|
7,520
|
|
|
7,483
|
|
Accrued
liabilities
|
12,522
|
|
|
12,219
|
|
Total Current
Liabilities
|
23,726
|
|
|
21,906
|
|
Long-term
debt
|
20,898
|
|
|
21,697
|
|
Other long-term
liabilities
|
16,170
|
|
|
16,638
|
|
Total
Liabilities
|
60,794
|
|
|
60,241
|
|
Redeemable
noncontrolling interest
|
307
|
|
|
296
|
|
Shareowners'
Equity:
|
|
|
|
Common
Stock
|
17,266
|
|
|
17,190
|
|
Treasury
Stock
|
(35,080)
|
|
|
(34,150)
|
|
Retained
earnings
|
53,741
|
|
|
52,873
|
|
Accumulated other
comprehensive loss
|
(8,333)
|
|
|
(8,334)
|
|
Total Shareowners'
Equity
|
27,594
|
|
|
27,579
|
|
Noncontrolling
interest
|
1,678
|
|
|
1,590
|
|
Total
Equity
|
29,272
|
|
|
29,169
|
|
Total Liabilities
and Equity
|
$
|
90,373
|
|
|
$
|
89,706
|
|
|
|
Debt
Ratios:
|
|
Debt to total
capitalization
|
46
|
%
|
|
45
|
%
|
Net debt to net
capitalization
|
37
|
%
|
|
36
|
%
|
See accompanying Notes to Condensed Consolidated Financial
Statements.
United
Technologies Corporation
|
Condensed
Consolidated Statement of Cash Flows
|
|
|
Quarter Ended
March 31,
|
|
(Unaudited)
|
(Millions)
|
2017
|
|
2016
|
Operating
Activities of Continuing Operations:
|
|
|
|
Net income from
continuing operations
|
$
|
1,468
|
|
|
$
|
1,253
|
|
Adjustments to
reconcile net income from continuing operations to net cash flows
provided by
operating activities of continuing operations:
|
|
|
|
Depreciation and
amortization
|
512
|
|
|
466
|
|
Deferred income tax
provision
|
109
|
|
|
145
|
|
Stock compensation
cost
|
47
|
|
|
48
|
|
Change in working
capital
|
(475)
|
|
|
(631)
|
|
Global pension
contributions
|
(46)
|
|
|
(75)
|
|
Canadian government
settlement
|
(246)
|
|
|
(237)
|
|
Other operating
activities, net
|
(376)
|
|
|
(171)
|
|
Net cash
flows provided by operating activities of continuing
operations
|
993
|
|
|
798
|
|
Investing
Activities of Continuing Operations:
|
|
|
|
Capital
expenditures
|
(325)
|
|
|
(286)
|
|
Acquisitions and
dispositions of businesses, net
|
(100)
|
|
|
(63)
|
|
Proceeds from sale of
investments in Watsco, Inc.
|
596
|
|
|
—
|
|
Increase in
collaboration intangible assets
|
(101)
|
|
|
(98)
|
|
(Payments) receipts
from settlements of derivative contracts
|
(113)
|
|
|
42
|
|
Other investing
activities, net
|
(96)
|
|
|
(88)
|
|
Net cash
flows used in investing activities of continuing
operations
|
(139)
|
|
|
(493)
|
|
Financing
Activities of Continuing Operations:
|
|
|
|
(Repayment) issuance
of long-term debt, net
|
(27)
|
|
|
2,324
|
|
Increase in
short-term borrowings, net
|
567
|
|
|
306
|
|
Dividends paid on
Common Stock
|
(505)
|
|
|
(509)
|
|
Repurchase of Common
Stock
|
(933)
|
|
|
—
|
|
Other financing
activities, net
|
(31)
|
|
|
(91)
|
|
Net cash
flows (used in) provided by financing activities of continuing
operations
|
(929)
|
|
|
2,030
|
|
Discontinued
Operations:
|
|
|
|
Net cash
flows used in operating activities of discontinued
operations
|
—
|
|
|
(2,227)
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
69
|
|
|
17
|
|
Net
(decrease) increase in cash, cash equivalents and restricted
cash
|
(6)
|
|
|
125
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
7,189
|
|
|
7,120
|
|
Cash, cash
equivalents and restricted cash, end of period
|
7,183
|
|
|
7,245
|
|
Less: Restricted
cash, included in Other assets
|
27
|
|
|
30
|
|
Cash and cash
equivalents, end of period
|
$
|
7,156
|
|
|
$
|
7,215
|
|
See accompanying Notes to Condensed Consolidated Financial
Statements.
United
Technologies Corporation
|
Free Cash Flow
Reconciliation
|
|
|
Quarter Ended
March 31,
|
|
(Unaudited)
|
(Millions)
|
2017
|
|
2016
|
|
|
|
|
|
|
Net income
attributable to common shareowners from continuing
operations
|
$
|
1,386
|
|
|
$
|
1,172
|
|
Net cash flows
provided by operating activities of continuing
operations
|
$
|
993
|
|
|
$
|
798
|
|
Net cash flows
provided by operating activities of continuing operations as a
percentage of net income attributable to common shareowners from
continuing
operations
|
|
72
|
%
|
|
|
68
|
%
|
Capital
expenditures
|
(325)
|
|
|
(286)
|
|
Capital expenditures
as a percentage of net income attributable to common
shareowners from continuing operations
|
|
(23)
|
%
|
|
|
(24)
|
%
|
Free cash flow from
continuing operations
|
$
|
668
|
|
|
$
|
512
|
|
Free cash flow from
continuing operations as a percentage of net income
attributable to common shareowners from continuing
operations
|
|
48
|
%
|
|
|
44
|
%
|
Notes to Condensed Consolidated Financial Statements
Certain reclassifications have been made to the prior year
amounts to conform to the current year presentation. As previously
disclosed in our 2016 Form 10-K, in 2016 we early adopted
Accounting Standards Update (ASU) 2016-09, Compensation - Stock
Compensation (Topic 718): Improvements to Employee Share-Based
Payment Accounting, ASU 2016-15, Statement of Cash Flows
(Topic 230): Classification of Certain Cash Receipts and Cash
Payments and ASU 2016-18, Statement of Cash Flows (Topic
230): Restricted Cash. Amounts previously reported for
the quarter ended March 31, 2016 have
been restated as required upon adoption of these ASUs. These
restatements had an immaterial impact to the Condensed Consolidated
Financial Statements as of March 31,
2016 and for the quarter then ended.
Debt to total capitalization equals total debt divided by total
debt plus equity. Net debt to net capitalization equals total
debt less cash and cash equivalents divided by total debt plus
equity less cash and cash equivalents.
Contact:
|
Maureen
Fitzgerald
|
|
(860)
728-7907
|
|
maureen.fitzgerald@utc.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/utc-reports-first-quarter-2017-results-300445827.html
SOURCE United Technologies Corp.