eXtensible Business Reporting Language

September 23, 2013

2

XBRL

Who is UTC?

UTC quarterly close process

UTC’s XBRL experience and project approach to date

The facts versus the misconceptions

“What’s in it for me?”

The basics

The benefits

Conclusion

Agenda

3

XBRLWho is UTC?

4

XBRLWho is UTC?

5

XBRLWho is UTC?

6

XBRLUTC 2012 Segment Sales

Otis

CCS

Pratt & Whitney

UTAS

Sikorsky

14%

12%21%

29%24%

7

XBRL

United States40%

Europe26%

Asia Pacific20%

Other14%

2012 consolidated net sales = $57.7 billion

UTC 2012 Sales by Geography

8

XBRLProduct Diversity

Military Aerospace & Space

Commercial Aerospace

Commercial & Industrial Aftermarket

Original Equipment Manufacturing

21%

51%

28%

43% 57%

Net sales by type and as a percent of total net sales

9

Government Accounting

Information Distribution

Accounting & Reporting Guidance

Holding Company Activity

XBRLRoad to the quarterly close

7/1/13 10/26/13

Day 1 up to CARS

CARS Day

CARS +1 thru

+3

Post CARS +3

9/30/13

Business Process

Improvement

Acquisition / Divestiture

Activity

Information Technology

Technical Accounting Support for Segments

SBS Services

Ongoing Business Activity

10

XBRLFinancial reporting process timeline

Pre-Close preparation•New accounting standards•Analyze transactions•Support Businesses•Maintain Financial Manual•Provide Guidance•Update deliverables•Prepare Close calendar

Analysis & Review• Cash flow• Balance sheet analysis• Income statement analysis• Disclosure Committee prep• Geographic data

CARS Day• Business Units transfer data to UTC• CFO Meeting• Income Statement • EPS• One Timers• FX Impact• Restructuring

Pre Qtr end Day 1 up to CARS CARS Day CARS +1 thru +3 Post CARS +3

10Q Filing

Audit Committee Mailing / Teleconference

DisclosureCommittee – SEC Requirement

EarningsRelease

Business UnitClose Period

10/9/13

10/25/13

10/22/13

10/21/13

10/17/13

10

11

XBRLSuppliers to customers

Customers

ExternalReporting

UTC Consolidation

Business Unit Consolidation

Base Unit Data(~ 7,000 HFM Entities, & ~3,000 HFM Users)

Shareowners

Disclosure Committee

CEOCFO

Investor Relations

Shareowners

12

XBRL

• Participant in SEC’s Voluntary Filers Program (VFP)

• First to furnish complete quarterly & annual financial financials

• First company to subject furnishings to audit

• Member of XBRL, U.S. temporary Board of Directors, Domain, Communications & Taxonomy Steering Committees, Assurance Task Force and VFP Working Group

• Case studies, white papers, roundtables, articles & CiFIR participation

• First to file financials with US GAAP taxonomy

UTC’s XBRL experience

13

XBRL

• No knowledge of/experience with XBRL when began

• All efforts done in-house by financial reporting group; no involvement of Legal or IT

• Inexpensive to get started; quick learning curve

• Started with manageable effort; continued to build knowledge off of prior experience

• Built internal processes from beginning

• Anxious to move application of process beyond SEC reporting

• Used available resources liberally

UTC’s XBRL approach

14

XBRL

• Costly?

• Technical/IT project?

• Significant commitment of time and resources?

• Easy to do?

• Resources available?

• Process & tools robust?

• Is there really a market demand?

• Doesn’t this just benefit the regulators?

Facts versus misconceptions

No

No

No

Yes

Yes

Yes

Yes

No

15

XBRL

• Consistency, accuracy, efficiency

• Enhanced ability to benchmark, analyze, validate, compare and access data

• Potential for significant reduction to manual effort

• Systemic access to data in multiple systems and applications

• Common source for multiple reporting requirements

• Inexpensive solution that does not require major system implementations

What’s in it for me?

16

XBRL

Taxonomy A collection of standardized, machine readable tags

Tags Electronic identifiers (“barcodes”) that provide information about a piece of financial information

Must “extend” or customize when standard tag does not exist

Tags and taxonomies

“Bar Coding” for business information

17

XBRL

4,819

UTC

Asset - Balance Sheet

Cash

U.S. Dollars

In millions

Debit balance

As of December 31, 2012

FASB ASC 305

Tags and taxonomies

18

XBRLXBRL Cloud

19

XBRLInternal benefits

ERP

10-Q in Word

Edgar

HFMERP

ERP

10-Q in HTML

10-Q in XBRL

Supplemental Data

Review and Check

Review and Check

Total Process Time:

~ 845 Hours

XBRLInternal benefits

ERP

Edgar

HFMERP

ERP

Supplemental Data

Total Process Time: ~ 700 Hours

WebFilings

10-Q in HTML,

XBRL, PDF

20

XBRLOther benefits: benchmarking & research

UTC Form 10-K GE Form 10-K Boeing Form 10-K

Honeywell Form 10-KLockheed Form 10-K

21

XBRLOther benefits: government reporting

22

XBRL

23

Past as prelude to the future

1970’s

• SEC forms filed in hard copy

• Company filings only available in hard copy

1983

• EDGAR System development begins

1984

• EDGAR filing pilot program launched

1992

• Voluntary EDGAR filing program opened

1993

• SEC begins requiring direct EDGAR filing

• Filings via direct transmission, diskette, or magnetic tape

1996

• All domestic registrants required to file via EDGAR