RTX CORPORATION FARMINGTON, Conn., Jan. 27, 2016 /PRNewswire/ --
Adjusted results
-- 2015 Adjusted EPS of $6.30 at high end of expected range
-- Adjusted EPS up slightly excluding $0.19 unfavorable FX impact
-- Affirms 2016 expectations for Adjusted EPS of $6.30 to $6.60 on sales of
$56 billion to $58 billion
Reported (GAAP) results
-- 2015 GAAP EPS of $4.53, reflecting $0.31 in restructuring and $1.46 of
other significant non-recurring and non-operational items
-- Full year sales were $56.1 billion, down 3 percent versus prior year
primarily due to FX, with 1 point of organic sales growth
Key milestones and accomplishments
-- First Pratt & Whitney Geared Turbofan-powered A320neo entered into
revenue service
-- Won major systems contracts for signature Hudson Yards development in
New York City
-- Rebalanced portfolio by divesting Sikorsky
-- Returned $12 billion to shareowners, including share repurchase and
dividends
United Technologies Corp. (NYSE: UTX) today reported full year 2015 Adjusted EPS of $6.30. All results in this release reflect continuing operations unless otherwise noted.
"I'm pleased to report UTC's 2015 earnings reached the top end of expectations we set months ago," said UTC President and Chief Executive Officer Gregory Hayes. "Solid execution on our strategic priorities has set a strong foundation for future growth.
"In line with our 2015 strategic priorities, we took decisive actions to streamline our portfolio with the divestiture of Sikorsky and return over $12 billion to shareowners. Returning cash to shareowners continues to be a top priority and we are still targeting $22 billion of total shareowner returns through share repurchases and dividends from 2015 through 2017," Hayes said. "We also streamlined UTC's organizational structure and initiated a $1.5 billion multi-year restructuring plan to improve competitiveness.
"UTC is now more focused than ever on innovative new technologies for the aerospace and buildings industries. This week Pratt & Whitney's Geared Turbofan entered into service on the first A320neo - making aviation history by meeting all of its key performance requirements from day one," Hayes added.
Full year 2015 Adjusted EPS of $6.30 decreased 2 percent year over year, with foreign currency having an unfavorable impact of $0.19, or 3 percent. Excluding the unfavorable impact of foreign exchange rates, Adjusted EPS was up slightly year over year. GAAP earnings per share were $4.53, reflecting $0.31 in restructuring and $1.46 of net charges related to other significant non-recurring and non-operational items.
Full year sales of $56.1 billion decreased by 3 percent, as 1 point of organic sales growth was more than offset by 4 points of adverse foreign exchange. Free cash flow for the year was 126 percent of net income attributable to common shareowners, including slightly more than 25 points of benefit associated with restructuring and other significant items.
Fourth quarter Adjusted EPS of $1.53 was down 8 percent. GAAP earnings for the fourth quarter reflected a loss of $0.30 per share, including $0.16 of restructuring costs and $1.67 of net unfavorable other significant items. Sales of $14.3 billion were down 5 percent driven primarily by 4 points of unfavorable foreign exchange, with organic sales up slightly in the quarter.
Otis new equipment orders in the quarter increased 2 percent over the prior year at constant currency, and grew 11 percent excluding China. Equipment orders at UTC Climate, Controls & Security decreased by 5 percent. Commercial aftermarket sales were up 11 percent at Pratt & Whitney, and up 8 percent at UTC Aerospace Systems.
"As we enter 2016, the tough actions that we've taken, and will continue to take, put us in position to achieve our financial objectives. We remain confident in our full year 2016 Adjusted EPS expectations of $6.30 to $6.60 on sales of $56 billion to $58 billion, despite a difficult macro environment," Hayes added.
UTC continues to anticipate 2016 free cash flow in the range of 90 to 100 percent of net income attributable to common shareowners. The company also continues to expect share repurchase of $3 billion in 2016, beyond the repurchases that will be completed in 2016 under the previously announced $6 billion accelerated share repurchase program. UTC continues to assume a $1 billion to $2 billion placeholder for acquisitions in 2016.
United Technologies Corp., based in Farmington, Connecticut, provides high technology products and services to the building and aerospace industries. Additional information, including a webcast, is available on the Internet at http://www.utc.com. To learn more about UTC, visit the website or follow the company on Twitter: @UTC
Use of Non-GAAP Financial Measures
Adjusted EPS, adjusted segment margins and free cash flow are non-GAAP financial measures that are used in UTC's financial press releases and webcasts. A reconciliation of these non-GAAP measures to the corresponding amounts prepared in accordance with generally accepted accounting principles (GAAP) is included in the tables to this press release.
Adjusted EPS and adjusted segment margin reflect continuing operations, excluding restructuring costs and other significant items of a non-recurring and/or non-operational nature (often referred to in this press release as "other significant items"). Management believes Adjusted EPS and adjusted segment margin are both useful in providing period to period comparisons of the results of the Company's operational performance. The tables attached to this press release provide additional information as to the items and amounts that have been excluded from Adjusted EPS and adjusted segment margin.
Free cash flow represents cash flow from operations less capital expenditures. Management believes free cash flow provides a relevant measure of liquidity and a useful basis for assessing UTC's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of the Company's Common Stock and distribution of earnings to shareowners.
When we provide our expectations for Adjusted EPS and/or free cash flow on a forward-looking basis, the closest corresponding GAAP measures (expected EPS from continuing operations and expected cash flow from operations) and a reconciliation of the differences between the non-GAAP expectation and the corresponding GAAP measure generally are not available (except as otherwise indicated) 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. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.
Adjusted EPS, adjusted segment margins and free cash flow should not be considered in isolation or as substitutes for analysis of the Company's results as reported under GAAP. Other companies may calculate adjusted EPS, adjusted segment margins and free cash flow differently than the Company does, limiting the usefulness of those measures for comparisons with such other companies.
Cautionary Statement
This press release includes statements that constitute "forward-looking statements" under the securities laws. Forward-looking statements often contain words such as "believe," "expect," "plans," "project," "target," "anticipate," "will," "should," "see," "guidance," "confident" and similar terms. Forward-looking statements may include, among other things, statements relating to future and estimated sales, earnings, cash flow, charges, expenditures, share repurchases, acquisitions and divestitures, orders, foreign exchange rate assumptions and other measures of financial performance. All forward-looking statements involve risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties include, without limitation, the effect of economic conditions in the markets in which we operate, including financial market conditions, fluctuation in commodity prices, interest rates and foreign currency exchange rates; future levels of research and development spending; levels of end market demand in construction and in the aerospace industry; levels of air travel; financial condition of commercial airlines; the impact of government budget and funding decisions on the economy; changes in government procurement priorities and funding; weather conditions and natural disasters; delays and disruption in delivery of materials and services from suppliers; company and customer directed cost reduction efforts and restructuring costs and consequences thereof; the impact of acquisitions, dispositions, joint ventures and similar transactions; the development and production of new products and services; the impact of diversification across product lines, regions and industries; the impact of legal proceedings, investigations and other contingencies; pension plan assumptions and future contributions; the effect of changes in tax, environmental and other laws and regulations and political conditions; and other factors beyond our control. The level and timing of discretionary share repurchases (those outside the company's current accelerated share repurchase program) depend upon market conditions, the level of other investing activities and uses of cash, and discretionary share repurchases may be suspended at any time. The forward-looking statements speak only as of the date of this press release and we undertake no obligation to update or revise any forward-looking statements as of a later date. 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 the SEC from time to time, including, but not limited to, the information included in UTC's Forms 10-K and 10-Q under the headings "Business," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Legal Proceedings" and in the notes to the financial statements included in UTC's Forms 10-K and 10-Q.
UTC-IR
United Technologies Corporation
Condensed Consolidated Statement of Operations
Quarter Ended December 31, Year Ended December 31,
(Unaudited) (Unaudited)
---------- ----------
(Millions, except per share amounts) 2015 2014 2015 2014
---- ---- ---- ----
Net Sales $14,300 $14,980 $56,098 $57,900
Costs and Expenses:
Cost of products and services sold 10,653 10,731 40,431 40,898
Research and development 611 624 2,279 2,475
Selling, general and administrative 1,625 1,620 5,886 6,172
-----
Total Costs and Expenses 12,889 12,975 48,596 49,545
Other (expense) income, net (1,019) 275 (211) 1,238
------ --- ---- -----
Operating profit 392 2,280 7,291 9,593
Interest expense, net 206 266 824 881
---
Income from continuing operations before income taxes 186 2,014 6,467 8,712
Income tax expense 363 634 2,111 2,244
---
(Loss) income from continuing operations (177) 1,380 4,356 6,468
Less: Noncontrolling interest in subsidiaries' earnings 79 102 360 402
from continuing operations
---
(Loss) income from continuing operations attributable to (256) 1,278 3,996 6,066
common shareowners
Discontinued operations:
(Loss) income from operations (32) 291 252 175
Gain on disposal 6,108 - 6,042 -
Income tax expense (2,544) (96) (2,684) (20)
-------
Income from discontinued operations 3,532 195 3,610 155
Less: Noncontrolling interest in subsidiaries' earnings (2) - (2) 1
from discontinued operations
---
Income from discontinued operations attributable to 3,534 195 3,612 154
common shareowners
Net income attributable to common shareowners $3,278 $1,473 $7,608 $6,220
====== ====== ====== ======
Earnings Per Share of Common Stock - Basic:
From continuing operations attributable to common shareowners $(0.30) $1.43 $4.58 $6.75
From discontinued operations attributable to common shareowners 4.16 0.22 4.14 0.17
Earnings Per Share of Common Stock - Diluted:
From continuing operations attributable to common shareowners $(0.30) $1.41 $4.53 $6.65
From discontinued operations attributable to common shareowners 4.16 0.22 4.09 0.17
Weighted Average Number of Shares Outstanding:
Basic shares 850 895 873 898
Diluted shares 850 907 883 912
As described on the following pages, consolidated results for the quarters and years ended December 31, 2015 and 2014 include restructuring costs and significant non-recurring and non-operational items that management believes should be considered 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 December 31, Year Ended December 31,
(Unaudited) (Unaudited)
---------- ----------
(Millions) 2015 2014 2015 2014
---- ---- ---- ----
Net Sales
Otis $3,094 $3,336 $11,980 $12,982
UTC Climate, Controls & Security 4,122 4,192 16,707 16,823
Pratt & Whitney 3,839 4,023 14,082 14,508
UTC Aerospace Systems 3,457 3,594 14,094 14,215
Segment Sales 14,512 15,145 56,863 58,528
Eliminations and other (212) (165) (765) (628)
Consolidated Net Sales $14,300 $14,980 $56,098 $57,900
======= ======= ======= =======
Operating Profit
Otis $542 $674 $2,338 $2,640
UTC Climate, Controls & Security 613 623 2,936 2,782
Pratt & Whitney (464) 547 861 2,000
UTC Aerospace Systems 167 588 1,888 2,355
--- --- ----- -----
Segment Operating Profit 858 2,432 8,023 9,777
Eliminations and other (333) (19) (268) 304
General corporate expenses (133) (133) (464) (488)
Consolidated Operating Profit $392 $2,280 $7,291 $9,593
==== ====== ====== ======
Segment Operating Profit Margin
Otis 17.5% 20.2% 19.5% 20.3%
UTC Climate, Controls & Security 14.9% 14.9% 17.6% 16.5%
Pratt & Whitney (12.1)% 13.6% 6.1% 13.8%
UTC Aerospace Systems 4.8% 16.4% 13.4% 16.6%
--- ---- ---- ----
Segment Operating Profit Margin 5.9% 16.1% 14.1% 16.7%
As described on the following pages, consolidated results for the quarters and years ended December 31, 2015 and 2014 include restructuring costs and significant non-recurring and non-operational items that management believes should be considered when evaluating the
underlying financial performance.
United Technologies Corporation
Reconciliation of Reported to Adjusted Results
Quarter Ended December 31, Year Ended December 31,
(Unaudited) (Unaudited)
---------- ----------
In Millions - Income (Expense) 2015 2014 2015 2014
---- ---- ---- ----
Net Sales $14,300 $14,980 $56,098 $57,900
------- ------- ------- -------
Significant non-recurring and non-operational items
included in Net Sales:
Pratt & Whitney - charge resulting from customer (142) - (142) -
contract negotiations
UTC Aerospace Systems - charge resulting from customer contract negotiations (210) - (210) -
---- --- ---- ---
Adjusted Net Sales $14,652 $14,980 $56,450 $57,900
======= ======= ======= =======
(Loss) income from continuing operations attributable $(256) $1,278 $3,996 $6,066
to common shareowners
Restructuring Costs included in Operating Profit:
Otis (19) (34) (51) (87)
UTC Climate, Controls & Security (41) (34) (108) (116)
Pratt & Whitney (68) (9) (105) (64)
UTC Aerospace Systems (47) (46) (111) (82)
Eliminations and other (16) (5) (21) (5)
--- ---
(191) (128) (396) (354)
---- ---- ---- ----
Significant non-recurring and non-operational items included in Operating Profit:
UTC Climate, Controls & Security (5) - 121 30
Pratt & Whitney (947) - (947) 1
UTC Aerospace Systems (356) - (356) -
Eliminations and other (264) - (264) 220
---- --- ---- ---
(1,572) - (1,446) 251
------ --- ------ ---
Total impact on Consolidated Operating Profit (1,763) (128) (1,842) (103)
Significant non-recurring and non-operational items included in Interest Expense, Net - (55) - (11)
Tax effect of restructuring and significant non-recurring 551 32 617 7
and non-operational items above
Significant non-recurring and non-operational items included in Income Tax Expense (342) (87) (342) 284
---- --- ---- ---
Less: Impact on Net Income from Continuing (1,554) (238) (1,567) 177
Operations Attributable to Common Shareowners
Adjusted income from continuing operations attributable to common shareowners $1,298 $1,516 $5,563 $5,889
====== ====== ====== ======
Diluted Earnings Per Share from Continuing Operations $(0.30) $1.41 $4.53 $6.65
Impact on Diluted Earnings Per Share from Continuing Operations (1.83) (0.26) (1.77) 0.19
----- ----- ----- ----
Adjusted Diluted Earnings Per Share from Continuing Operations $1.53 $1.67 $6.30 $6.46
===== ===== ===== =====
Details of the significant non-recurring and non-operational items included within operating profit for the quarters and year ended December 31, 2015 and 2014 above are as follows:
Quarter Ended December 31, Year Ended December 31,
(Unaudited) (Unaudited)
---------- ----------
In Millions - Income (Expense) 2015 2014 2015 2014
---- ---- ---- ----
Significant non-recurring and non-operational items
included in Operating Profit:
UTC Climate, Controls & Security
Gain on fair value adjustment on acquisition of $ - $ - $126 $ -
controlling interest in a joint venture
Net gain from ongoing portfolio transformation - - - 30
Acquisition and integration costs related to current (5) - (5) -
period acquisitions
Pratt & Whitney
Charge related to a research and development support (867) - (867) -
agreement with the Canadian government
Charge resulting from customer contract negotiations (80) - (80) -
Net gain on fair value adjustment related to a business acquisition - - - 83
Adjustment to fair value of a joint venture investment - - - (60)
Charge for impairment of assets related to a joint - - - (22)
venture investment
UTC Aerospace Systems
Charge resulting from customer contract negotiations (295) - (295) -
Charge for impairment of assets held for sale (61) - (61) -
Eliminations & other
Charge for pending and future asbestos-related claims (237) - (237) -
(Charge) gain from agreement with a state taxing authority for monetization of tax credits (27) - (27) 220
$(1,572) $ - $(1,446) $251
======= === === ======= ====
Details of the significant non-recurring and non-operational items included within interest and income tax of continuing operations for the quarters and year ended December 31, 2015 and 2014 above are as follows:
Quarter Ended December 31, Year Ended December 31,
(Unaudited) (Unaudited)
---------- ----------
In Millions - Income (Expense) 2015 2014 2015 2014
Significant non-recurring and non-operational items
included in Interest Expense, Net
Unfavorable pre-tax interest accruals related to the $ - $(143) $ - $(143)
ongoing dispute with German tax authorities
Favorable pre-tax interest adjustments, primarily related - 88 - 88
to Goodrich Corporation's 2000 to 2010 tax years
Favorable pre-tax interest adjustments, primarily related - - - 44
to the Company's 2006 - 2008 and 2009 - 2010 tax
years
$ - $(55) $ - $(11)
=== === ==== === === ====
Significant non-recurring and non-operational items
included in Income Tax Expense
Unfavorable income tax accruals related to the $(274) $ - $(274) $ -
repatriation of foreign earnings
Unfavorable income tax accruals related to changes in (68) - (68) -
tax laws
Unfavorable income tax accruals related to the ongoing - (267) - (267)
dispute with German tax authorities
Favorable tax adjustment primarily associated with - 180 - 180
management's decision to repatriate additional high
taxed dividends
Favorable income tax adjustments related to the - - - 371
Company's 2006 - 2008 and 2009 - 2010 tax years, and
settlement of state income taxes related to the disposition of the
Hamilton Sundstrand Industrials
businesses
$(342) $(87) $(342) $284
===== ==== ===== ====
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 three pages)
Quarter Ended December 31, Year Ended December 31,
(Unaudited) (Unaudited)
---------- ----------
(Millions) 2015 2014 2015 2014
---- ---- ---- ----
Adjusted Net Sales
Otis $3,094 $3,336 $11,980 $12,982
UTC Climate, Controls & Security 4,122 4,192 16,707 16,823
Pratt & Whitney 3,981 4,023 14,224 14,508
UTC Aerospace Systems 3,667 3,594 14,304 14,215
----- ----- ------ ------
Segment Sales 14,864 15,145 57,215 58,528
Eliminations and other (212) (165) (765) (628)
---- ---- ---- ----
Adjusted Consolidated Net Sales $14,652 $14,980 $56,450 $57,900
======= ======= ======= =======
Adjusted Operating Profit
Otis $561 $708 $2,389 $2,727
UTC Climate, Controls & Security 659 657 2,923 2,868
Pratt & Whitney 551 556 1,913 2,063
UTC Aerospace Systems 570 634 2,355 2,437
--- --- ----- -----
Segment Operating Profit 2,341 2,555 9,580 10,095
Eliminations and other (58) (18) 8 85
General corporate expenses (128) (129) (455) (484)
Adjusted Consolidated Operating Profit $2,155 $2,408 $9,133 $9,696
====== ====== ====== ======
Adjusted Segment Operating Profit Margin
Otis 18.1% 21.2% 19.9% 21.0%
UTC Climate, Controls & Security 16.0% 15.7% 17.5% 17.0%
Pratt & Whitney 13.8% 13.8% 13.4% 14.2%
UTC Aerospace Systems 15.5% 17.6% 16.5% 17.1%
---- ---- ---- ----
Adjusted Segment Operating Profit Margin 15.7% 16.9% 16.7% 17.2%
United Technologies Corporation
Condensed Consolidated Balance Sheet
December 31, December 31,
2015 2014
(Millions) (Unaudited) (Unaudited)
---------- ----------
Assets
------
Cash and cash equivalents $7,075 $5,229
Accounts receivable, net 10,653 10,448
Inventories and contracts in
progress, net 8,135 7,642
Other assets, current 843 3,296
Assets held for sale - 4,868
--- -----
Total Current Assets 26,706 31,483
Fixed assets, net 8,732 8,592
Goodwill 27,301 27,448
Intangible assets, net 15,603 15,528
Other assets 9,142 8,155
----- -----
Total Assets $87,484 $91,206
======= =======
Liabilities and Equity
----------------------
Short-term debt $1,105 $1,917
Accounts payable 6,875 6,250
Accrued liabilities 14,638 12,527
Liabilities held for sale - 2,781
--- -----
Total Current Liabilities 22,618 23,475
Long-term debt 19,320 17,784
Other long-term liabilities 16,580 17,243
------ ------
Total Liabilities 58,518 58,502
------ ------
Redeemable noncontrolling
interest 122 140
Shareowners' Equity:
Common Stock 15,928 15,185
Treasury Stock (30,907) (21,922)
Retained earnings 49,956 44,611
Accumulated other comprehensive
loss (7,619) (6,661)
------ ------
Total Shareowners' Equity 27,358 31,213
Noncontrolling interest 1,486 1,351
----- -----
Total Equity 28,844 32,564
Total Liabilities and Equity $87,484 $91,206
======= =======
Debt Ratios:
Debt to total capitalization 41% 38%
Net debt to net capitalization 32% 31%
See accompanying Notes to Condensed Consolidated Financial Statements.
United Technologies Corporation
Condensed Consolidated Statement of Cash Flows
Quarter Ended Year Ended
December 31, December 31,
(Unaudited) (Unaudited)
---------- ----------
(Millions) 2015 2014 2015 2014
---- ---- ---- ----
Operating Activities of Continuing Operations:
(Loss) income from continuing operations $(177) $1,380 $4,356 $6,468
Adjustments to reconcile (loss) income from continuing operations to net
cash flows provided by operating activities of continuing operations:
Depreciation and amortization 462 468 1,863 1,820
Deferred income tax provision 218 172 662 403
Stock compensation cost 50 32 158 219
Canadian government settlement 867 - 867 -
Change in working capital 841 140 (847) (729)
Global pension contributions (54) (313) (147) (517)
Other operating activities, net 447 93 (214) (670)
Net cash flows provided by operating activities of continuing operations 2,654 1,972 6,698 6,994
----- ----- ----- -----
Investing Activities of Continuing Operations:
Capital expenditures (608) (531) (1,652) (1,594)
Acquisitions and dispositions of businesses, net (181) 76 (338) (58)
Increase in collaboration intangible assets (106) (134) (437) (593)
Receipts (payments) from settlements of derivative contracts 13 (60) 160 93
Other investing activities, net (229) (151) (260) (40)
---- ----
Net cash flows used in investing activities of continuing operations (1,111) (800) (2,527) (2,192)
------ ---- ------ ------
Financing Activities of Continuing Operations:
(Repayment) issuance of long-term debt, net (24) 15 (20) (206)
(Decrease) increase in short-term borrowings, net (2,096) (209) 795 (346)
Proceeds from Common Stock issuance - equity unit remarketing - - 1,100 -
Dividends paid on Common Stock (541) (510) (2,184) (2,048)
Repurchase of Common Stock (6,000) (405) (10,000) (1,500)
Other financing activities, net (254) (65) (467) (147)
Net cash flows used in financing activities of continuing operations (8,915) (1,174) (10,776) (4,247)
------ ------ ------- ------
Discontinued Operations:
Net cash (used in) provided by operating activities (73) 339 (372) 342
Net cash provided by (used in) investing activities 9,066 (29) 9,000 (113)
Net cash used in financing activities (8) (11) (9) (12)
--- --- --- ---
Net cash flows provided by discontinued operations 8,985 299 8,619 217
----- --- ----- ---
Effect of foreign exchange rate changes on cash and cash equivalents (31) (97) (174) (156)
--- --- ---- ----
Net increase in cash and cash equivalents 1,582 200 1,840 616
Cash and cash equivalents, beginning of period 5,493 5,035 5,235 4,619
----- ----- ----- -----
Cash and cash equivalents of continuing operations, end of period 7,075 5,235 7,075 5,235
Less: Cash and cash equivalents of assets held for sale - 6 - 6
--- --- --- ---
Cash and cash equivalents of continuing operations, end of period $7,075 $5,229 $7,075 $5,229
====== ====== ====== ======
See accompanying Notes to Condensed Consolidated Financial Statements.
United Technologies Corporation
Free Cash Flow Reconciliation
Year Ended December 31,
(Unaudited)
----------
(Millions) 2015 2014
---- ----
Net income attributable to common shareowners from continuing operations $3,996 $6,066
====== ======
Net cash flows provided by operating activities of continuing operations $6,698 $6,994
Net cash flows provided by operating activities of continuing operations as a 168% 115%
percentage of net income attributable to common shareowners from continuing
operations
Capital expenditures (1,652) (1,594)
------ ------
Capital expenditures as a percentage of net income attributable to common shareowners from continuing operations (41)% (26)%
---- ----
Free cash flow from continuing operations $5,046 $5,400
====== ======
Free cash flow from continuing operations as a percentage of net income attributable to common shareowners from continuing operations 126% 89%
=== ===
Notes to Condensed Consolidated Financial
Statements
(1) Adjusted Net Sales, Adjusted
Operating Profit and Adjusted EPS
are non-GAAP financial measures.
Adjusted Net Sales represents Net
Sales excluding significant items
of a non-recurring and non-
operational nature. Adjusted
Operating Profit represents
operating profit excluding
restructuring costs and other
significant items of a non-
recurring and non-operational
nature. Adjusted EPS represents
diluted earnings per share from
continuing operations, excluding
restructuring costs and other
significant items of a non-
recurring and non-operational
nature. Management believes
Adjusted Net Sales, Adjusted
Operating Profit and Adjusted EPS
are useful in providing period to
period comparisons of the results
of the Company's ongoing
operational performance. A
reconciliation of these non-GAAP
measures to the corresponding
amounts prepared in accordance
with generally accepted accounting
principles is included in the
tables above.
(2) 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.
(3) Organic sales growth is a non-GAAP
financial measure that represents
the total reported increase within
the Corporation's ongoing
businesses less the impact of
foreign currency translation,
acquisitions and divestitures
completed in the preceding twelve
months and significant non-
recurring and non-operational
items.
(4) Free cash flow is a non-GAAP
financial measure that represents
cash flow from operations less
capital expenditures. Management
believes free cash flow provides 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 net cash flow
provided by operating activities,
prepared in accordance with
generally accepted accounting
principles, to free cash flow is
provided above.
(5) Adjusted Net Sales, Adjusted
Operating Profit, Adjusted EPS and
free cash flow should not be
considered in isolation or as
substitutes for analysis of the
Company's results as reported
under GAAP. Other companies may
calculate Adjusted Net Sales,
Adjusted Operating Profit,
Adjusted EPS and free cash flow
differently than the Company does,
limiting the usefulness of those
measures for comparisons with
other companies.
Contact: John Moran
(860) 728-7062
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/utc-reports-full-year-2015-results-affirms-2016-outlook-300210387.html
SOURCE United Technologies Corp.
