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Segment Financial Data
12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Segment Financial Data
SEGMENT FINANCIAL DATA
Our operations for the periods presented herein are classified into four 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 products and services.
As discussed in Note 3, on November 6, 2015, we completed the sale of Sikorsky to Lockheed Martin Corp. The tables below exclude amounts attributable to Sikorsky, which have been reclassified to Discontinued Operations in the accompanying Consolidated Statement of Operations.
Otis products include elevators, escalators, moving walkways and service sold to customers in the commercial and residential 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, provided 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 services 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.
UTC Aerospace Systems provides aerospace products and aftermarket services for commercial, military, business jet and general aviation customers worldwide. Products include electric power generation, power management and distribution systems, air data and flight sensing and management systems, engine control systems, electric systems, intelligence, surveillance and reconnaissance systems, engine components, environmental control systems, fire and ice detection and protection systems, propeller systems, aircraft aerostructures including engine nacelles, thrust reversers, and mounting pylons, interior and exterior aircraft lighting, aircraft seating and cargo systems, actuation systems, landing systems, including landing gears, wheels and brakes, and space products and subsystems. Aftermarket services include spare parts, overhaul and repair, engineering and technical support and fleet management solutions.
We have reported our financial and operational results for the periods presented herein under the four principal segments noted above, consistent with how we have reviewed our business operations for decision-making purposes, resource allocation and performance assessment during 2017.
Segment Information. Total sales by segment include intersegment sales, which are generally made at prices approximating those that the selling entity is able to obtain on external sales. Segment information for the years ended December 31 is as follows:
 
 
Net Sales
 
Operating Profits
(dollars in millions)
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Otis
 
$
12,341

 
$
11,893

 
$
11,980

 
$
2,021

 
$
2,147

 
$
2,338

UTC Climate, Controls & Security
 
17,812

 
16,851

 
16,707

 
3,300

 
2,956

 
2,936

Pratt & Whitney
 
16,160

 
14,894

 
14,082

 
1,460

 
1,545

 
861

UTC Aerospace Systems
 
14,691

 
14,465

 
14,094

 
2,370

 
2,298

 
1,888

Total segment
 
61,004

 
58,103

 
56,863

 
9,151

 
8,946

 
8,023

Eliminations and other
 
(1,167
)
 
(859
)
 
(765
)
 
(38
)
 
(368
)
 
(268
)
General corporate expenses
 

 

 

 
(441
)
 
(406
)
 
(464
)
Consolidated
 
$
59,837

 
$
57,244

 
$
56,098

 
$
8,672

 
$
8,172

 
$
7,291


 
 
Total Assets
 
Capital Expenditures
 
Depreciation & Amortization
(dollars in millions)
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Otis
 
$
9,421

 
$
8,867

 
$
8,846

 
$
133

 
$
94

 
$
83

 
$
177

 
$
171

 
$
176

UTC Climate, Controls & Security
 
22,657

 
21,787

 
21,287

 
326

 
340

 
261

 
372

 
354

 
337

Pratt & Whitney
 
26,768

 
22,971

 
20,336

 
923

 
725

 
692

 
672

 
550

 
476

UTC Aerospace Systems
 
34,567

 
34,093

 
34,736

 
527

 
452

 
537

 
823

 
807

 
796

Total segment
 
93,413

 
87,718

 
85,205

 
1,909

 
1,611

 
1,573

 
2,044

 
1,882

 
1,785

Eliminations and other
 
3,507

 
1,988

 
2,279

 
105

 
88

 
79

 
96

 
80

 
78

Consolidated
 
$
96,920

 
$
89,706

 
$
87,484

 
$
2,014

 
$
1,699

 
$
1,652

 
$
2,140

 
$
1,962

 
$
1,863


Geographic External Sales and Operating Profit. Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. U.S. external sales include export sales to commercial customers outside the U.S. and sales to the U.S. Government, commercial and affiliated customers, which are known to be for resale to customers outside the U.S. Long-lived assets are net fixed assets attributed to the specific geographic regions. 
 
 
External Net Sales
 
Operating Profits
 
Long-Lived Assets
(dollars in millions)
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
United States Operations
 
$
33,912

 
$
32,335

 
$
30,989

 
$
4,528

 
$
4,566

 
$
4,391

 
$
5,323

 
$
4,822

 
$
4,517

International Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Europe
 
11,879

 
11,151

 
10,945

 
2,058

 
1,933

 
1,882

 
1,817

 
1,538

 
1,525

Asia Pacific
 
8,770

 
8,260

 
8,425

 
1,488

 
1,484

 
1,641

 
1,113

 
999

 
994

Other
 
5,262

 
5,479

 
5,584

 
1,077

 
963

 
109

 
1,389

 
1,325

 
1,273

Eliminations and other
 
14

 
19

 
155

 
(479
)
 
(774
)
 
(732
)
 
544

 
474

 
423

Consolidated
 
$
59,837

 
$
57,244

 
$
56,098

 
$
8,672

 
$
8,172

 
$
7,291

 
$
10,186

 
$
9,158

 
$
8,732


Sales from U.S. operations include export sales as follows: 
(dollars in millions)
 
2017
 
2016
 
2015
Europe
 
$
5,273

 
$
5,065

 
$
4,366

Asia Pacific
 
3,634

 
3,449

 
2,902

Other
 
2,217

 
2,313

 
2,473

 
 
$
11,124

 
$
10,827

 
$
9,741


Major Customers. Net Sales include sales under prime contracts and subcontracts to the U.S. Government, primarily related to Pratt & Whitney and UTC Aerospace Systems products, as follows:
(dollars in millions)
 
2017
 
2016
 
2015
Pratt & Whitney
 
$
3,347

 
$
3,187

 
$
2,945

UTC Aerospace Systems
 
2,299

 
2,301

 
2,409

Other
 
152

 
138

 
276

 
 
$
5,798

 
$
5,626

 
$
5,630


Net sales by Sikorsky under prime contracts and subcontracts to the U.S. Government of approximately $3.1 billion have been reclassified to Discontinued Operations in our Consolidated Statement of Operations for the year ended December 31, 2015.
Net sales to Airbus, primarily related to Pratt & Whitney and UTC Aerospace Systems products, were approximately $8,908 million, $7,688 million and $7,624 million for the years ended December 31, 2017, 2016 and 2015, respectively.