United Technologies 2012 Annual Report Download - page 97

Notes to Consolidated Financial Statements 2012 ANNUAL REPORT 95
Other. Except as otherwise noted, we do not believe that
resolution of any of the above matters will have a material adverse
effect upon our competitive position, results of operations, cash
flows or financial condition.
As described in Note 16 to the Consolidated Financial
Statements, we extend performance and operating cost guarantees
beyond our normal warranty and service policies for extended peri-
ods 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 have accrued for environmental investigatory,
remediation, operating and maintenance costs, performance guar-
antees and other litigation and claims based on our estimate of the
probable outcome of these matters. While it is possible that the
outcome of these matters may differ from the recorded liability, we
believe that resolution of these matters will not have a material
impact on our competitive position, results of operations, cash
flows or financial condition.
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 con-
tingencies 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.
We are also subject to a number of routine lawsuits, inves-
tigations and claims (some of which involve substantial amounts)
arising out of the ordinary course of our business. We do not
believe that these matters will have a material adverse effect upon
our competitive position, results of operations, cash flows or finan-
cial condition.
NOTE 19: 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 prod-
ucts and services.
Otis products include elevators, escalators, moving walk-
ways and service sold to customers in the commercial and resi-
dential 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, pro-
vided 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 serv-
ices, 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 trans-
ferred 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 approx-
imately $600 million. The reclassification has been made pro-
spectively; 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 elec-
tronic systems.
Sikorsky products include military and commercial heli-
copters, 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 2012.