<PAGE>
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-812
UNITED TECHNOLOGIES CORPORATION
DEFINED CONTRIBUTION RETIREMENT PLAN
(Full title of the plan)
UNITED TECHNOLOGIES CORPORATION
United Technologies Building
One Financial Plaza
Hartford, Connecticut 06101
(Name of issuer of the securities held pursuant to
the plan and the address of its principal executive office)<PAGE>
<PAGE>
FINANCIAL STATEMENTS OF THE UNITED TECHNOLOGIES CORPORATION
DEFINED CONTRIBUTION RETIREMENT PLAN
REPORT OF INDEPENDENT ACCOUNTANTS
To the Pension Administration
and Investment Committee of
United Technologies Corporation
and Members of the United Technologies Corporation
Defined Contribution Retirement Plan
In our opinion, the accompanying statements of financial condition and the
related statement of income and changes in plan equity present fairly, in all
material respects, the financial position of the United Technologies Corporation
Defined Contribution Retirement Plan at November 30, 1994 and 1993, and the
results of its operations and the changes in its plan equity for the year ended
November 30, 1994, in conformity with generally accepted accounting principles.
These financial statements are the responsibility of the Plan Administrator; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
generally accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
Hartford, Connecticut
May 25, 1995<PAGE>
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<TABLE>
UNITED TECHNOLOGIES CORPORATION
DEFINED CONTRIBUTION RETIREMENT PLAN
Statement of Financial Condition
November 30, 1994
<CAPTION>
Funds
Income Fund Equity Fund Combined
<S> <C> <C> <C>
Assets:
Investments:
Beneficial interests in contracts issued by insurance
companies, at cost plus accrued interest $ 4,828,656 $ - $ 4,828,656
Beneficial interests in Bankers Trust Company Pyramid
Equity Index Fund, at market - 948,103 948,103
Temporary investments, at cost plus accrued interest 17 9 26
Total Investments 4,828,673 948,112 5,776,785
Contributions and fund transfers receivable 63,430 6,470 69,900
Total Assets 4,892,103 954,582 5,846,685
Less - Liabilities:
Contributions payable 33,115 8,247 41,362
Total Liabilities 33,115 8,247 41,362
Plan Equity $ 4,858,988 $ 946,335 $ 5,805,323
Units of participation 987,599 103,425
Unit value $ 4.92 $ 9.15
(See accompanying Notes to Financial Statements)
</TABLE>
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<TABLE>
UNITED TECHNOLOGIES CORPORATION
DEFINED CONTRIBUTION RETIREMENT PLAN
Statement of Financial Condition
November 30, 1993
<CAPTION>
Funds
Income Fund Equity Fund Combined
<S> <C> <C> <C>
Assets:
Investments:
Beneficial interests in contracts issued by insurance
companies, at cost plus accrued interest $ 4,018,232 $ - $ 4,018,232
Beneficial interests in Bankers Trust Company Pyramid
Equity Index Fund, at market - 800,984 800,984
Temporary investments, at cost plus accrued interest 93 9 102
Total Investments 4,018,325 800,993 4,819,318
Contributions and fund transfers receivable - 6,760 6,760
Total Assets 4,018,325 807,753 4,826,078
Less - Liabilities:
Contributions payable 33,738 - 33,738
Total Liabilities 33,738 - 33,738
Plan Equity $ 3,984,587 $ 807,753 $ 4,792,340
Units of participation 871,285 89,385
Unit value $ 4.57 $ 9.04
(See accompanying Notes to Financial Statements)
</TABLE>
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<TABLE>
UNITED TECHNOLOGIES CORPORATION
DEFINED CONTRIBUTION RETIREMENT PLAN
Statement of Income and Changes in Plan Equity
Plan Year Ended November 30, 1994
<CAPTION>
Funds
Income Fund Equity Fund Combined
<S> <C> <C> <C>
Contributions:
Members $ 311,647 $ 77,096 $ 388,743
Employer 549,269 122,097 671,366
Total Contributions 860,916 199,193 1,060,109
Investment Income:
Interest 316,978 20 316,998
Total Investment Income 316,978 20 316,998
Unrealized depreciation of investments - (328,676) (328,676)
Gain on sale of investments - 338,228 338,228
Deduct:
Cash distributions to members 306,712 55,765 362,477
Earned and unapplied forfeitures 11,199 - 11,199
Total Deductions 317,911 55,765 373,676
Inter-fund and inter-plan transfers 14,418 (14,418) -
Net Increase in Plan Equity 874,401 138,582 1,012,983
Plan Equity November 30, 1993 3,984,587 807,753 4,792,340
Plan Equity November 30, 1994 $ 4,858,988 $ 946,335 $ 5,805,323
(See accompanying Notes to Financial Statements)
</TABLE>
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UNITED TECHNOLOGIES CORPORATION
DEFINED CONTRIBUTION RETIREMENT PLAN
Notes to Financial Statements
NOTE 1 - DESCRIPTION OF THE PLAN
The United Technologies Corporation Defined Contribution Retirement Plan (the
Plan) is a defined contribution savings and money purchase plan sponsored by
United Technologies Corporation (United). The Plan became effective December 1,
1984. Membership in the Plan is offered to eligible employees of United and
certain of its subsidiaries.
The employer makes contributions with respect to each member of an amount up to
3.5 percent of the member's compensation. In addition, certain members may
elect to contribute, through payroll deductions, between 1 and 9 percent of
their total compensation with up to the first 4 percent of each member's
contribution being matched 50 percent by the employer. Member contributions are
fully vested at all times under the Plan. Generally, employer contributions
become fully vested after two years of Plan participation.
All employee contributions are credited to a member account maintained by the
Plan Administrator. Contributions are invested, pursuant to each member's
direction, in one or more of the following funds: the Income Fund, the Equity
Fund, the UTC Stock Fund and the Global Fund, where permitted. Members may
elect to have 100 percent of their contributions invested in one investment fund
or may allocate the contributions in any whole percentage (effective January 1,
1994) among the funds. Prior to January 1, 1994, allocations were made in
multiples of 25%. Members are permitted to transfer their accounts between
investment funds once per quarter in any whole percentage (effective January 1,
1994). Prior to January 1, 1994, transfers between investment funds were
generally permitted in multiples of 10 percent.
The Income Fund is invested in contracts issued by five insurance companies
designated by the Pension Investment Committee. Under these contracts, each
insurance company guarantees repayment in full of the principal amount invested
plus interest credited at a fixed rate for a specified period. Interest is
credited to each contract based on an annual interest rate set each year by the
individual insurance carriers. This rate, which differs among contracts, takes
into account any difference between prior year credited interest and the actual
amount of investment earnings allocable to the contract in accordance with the
established allocation procedures of the insurance carrier. The weighted
average rate set for the 1994 calendar year was 7.5 percent.
The Equity Fund may be invested in common or capital stock of corporations,
bonds or securities convertible into such stocks, or shares of any federally
registered mutual fund or similar type of investment fund, including investment
in any commingled trust fund managed by the Trustee, Bankers Trust Company,
which is invested primarily in similar types of equity securities. During 1994
and 1993, the Equity Fund was invested principally in the Trustee's BT Pyramid
Equity Index Fund, which is a portfolio of common stocks replicating the
Standard & Poor's Composite Index of 500 stocks. Interest and dividends earned
by this investment are reinvested and increase market value.<PAGE>
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The Global Fund will be invested in almost equal proportion in three different
funds managed by the Trustee: the BT Pyramid International Securities Index
Fund, the BT Pyramid Fixed Income Index Fund and the BT Pyramid Equity Index
Fund (as described above). The International Securities Index Fund invests in
four other international index funds managed by the Trustee. The Fixed Income
Index Fund invests primarily in obligations of the U.S. Government and its
agencies and other publicly traded, high-grade domestic debt instruments.
Interest and dividends earned by these investments are reinvested and increase
market value.
Forfeitures of employer contributions are used to reduce employer contributions;
earned and unapplied forfeitures will be applied against future employer
contributions and are shown separately in the Statement of Income and Changes in
Plan Equity.
Members who transfer to a new location of United which is covered by a different
savings plan have the option of transferring their account balances in
accordance with the provisions of the new savings plan, including available
investment funds.
Number of participants in the Plan at year end were as follows:
<TABLE><CAPTION>
November 30,
1994 1993
<S> <C> <C>
Income Fund 961 652
Equity Fund 336 289
UTC Stock Fund - -
Global Fund - -
</TABLE>
The participants above may have investments in more than one of the investment
funds.
NOTE 2 - SUMMARY OF ACCOUNTING PRINCIPLES
United has entered into a master trust agreement with the Trustee. Under this
agreement, certain employee savings plans of United and its subsidiaries combine
their trust fund investments in the Master Trust. Participating plans purchase
units of participation in the investment funds based on their monthly
contribution to such funds and the unit value of the applicable investment fund
at the end of the month. The value of a unit in each fund is determined at the
end of each month by dividing the sum of uninvested cash, accrued income and the
current market value of investments by the total number of outstanding units in
such funds. The plans receive income from the funds' investments which increase
the unit values. Distributions reduce the number of participation units held by
the plans.
The investments of the Income Fund are valued at cost plus accrued interest.
The investments of the Equity Fund, the UTC Stock Fund, and the Global Fund are
valued at market as determined by the Trustee by reference to published market
data.
The expenses of operating the Plan are payable out of the funds held under the
Plan, unless the employer elects to pay such expenses. The expenses for the
1994 plan year were paid by the employer.<PAGE>
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The Plan is not subject to federal income tax as the Plan and its related trust
are considered by United to satisfy the qualification and exemption requirements
of Sections 401(a) and 501(a) of the Internal Revenue Code. United has received
a favorable determination letter from the Internal Revenue Service (IRS), dated
in 1986, to the effect that the Plan, as amended in 1986, qualifies under
Sections 401(a) and 501(a) of the Code. United intends to apply for a new
determination letter from the IRS indicating that the Plan, as amended since the
date of the most recent IRS determination letter, continues to be exempt from
federal income taxes under Sections 401(a) and 501(a) of the Code. Under these
sections, contributions by United, employees (at their election) and related
earnings will be tax deferred until such amounts are distributed. It is
expected, given the lack of substantive plan amendments, that a favorable
determination will be issued from the IRS, and accordingly, no provision is made
for federal income taxes.
NOTE 3 - INSURANCE CONTRACTS
The following is a summary of the insurance contracts held in the Master Trust
Income Fund and the portion allocable to the Plan:
<TABLE><CAPTION>
November 30,
(Thousands of Dollars) 1994 1993
<S> <C> <C>
CIGNA $ 1,505,766 $ 1,409,243
Aetna 529,588 543,882
Travelers 449,496 455,988
Prudential 237,500 249,747
Metropolitan Life 437,048 328,543
$ 3,159,398 $ 2,987,403
Amount of the contracts allocable to the Plan $ 4,829 $ 4,018
</TABLE>
NOTE 4 - GAIN ON SALE OF INVESTMENTS
The Trustee uses the average cost method in determining the cost of securities
for purposes of calculating the gain or loss on the sale of securities. Gains
and losses of the Master Trust funds are allocated to the participating plans
based upon participation units at the month-end valuation date following the
sale. The gains recognized by the Master Trust funds and amounts allocable to
the Plan, for the Plan year November 30, 1994, are as follows:
<TABLE><CAPTION>
(Thousands of Dollars) Equity Fund
<S> <C>
Proceeds from sale of securities $ 397,600
Cost basis of securities sold 253,925
Gain on sale $ 143,675
Amount of the gain allocable to the Plan $ 338
/TABLE
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NOTE 5 - REQUESTED DISTRIBUTIONS
The following is a summary of distributions requested by participants which had
not yet been paid at the respective plan year end:
<TABLE><CAPTION>
November 30, November 30,
1994 1993
Dollars Units Dollars Units
<S> <C> <C> <C> <C>
Income Fund $ 12,489 2,538 $ 57,107 12,487
Equity Fund 3,144 344 7,072 783
UTC Stock Fund - - - -
Global Fund - - - -
</TABLE>
These amounts are reflected as liabilities in the Plan's Form 5500.
NOTE 6 - FUNDING POLICY
The Corporation funds its obligation to the plan on a monthly basis. At
November 30, 1994, the minimum funding requirements under ERISA have been met.
NOTE 7 - PLAN AMENDMENTS
Effective January 1, 1994, the Plan permits transfers between investment funds
in any whole percentage. Prior to January 1, 1994, transfers between investment
accounts were generally made through increments of 10%.
Effective January 1, 1994, the Plan permits future allocation of investment fund
contributions in any whole percentage. Prior to January 1, 1994, investment
allocations were made in 25% increments.
Effective January 1, 1994, the Plan permits participants to receive an
installment distribution upon attaining age 55 with five years of service.
Prior to January 1, 1994, the Plan rules required age 55 with a minimum of 10
years of service.
On October 1, 1994, the Plan was amended to offer two additional investment
choices to eligible employees of certain subsidiaries of United. In addition to
the two funds previously available, the Plan now allows such participants to
invest in the Global Fund and the UTC Stock Fund. Contributions to these funds
began effective April 1, 1995.<PAGE>
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SIGNATURES
The Plan (or other persons who administer the employee benefit plan), pursuant
to the requirements of the Securities Exchange Act of 1934, has duly caused
this annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
UNITED TECHNOLOGIES CORPORATION
DEFINED CONTRIBUTION RETIREMENT PLAN
Dated: May 25, 1995 By: /s/ Daniel P. O'Connell
Daniel P. O'Connell
Corporate Director, Employee Benefits and Human
Resources Systems
United Technologies Corporation<PAGE>
<PAGE>
Exhibit 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-58937) of United Technologies Corporation of our
report dated May 25, 1995 appearing in the United Technologies Corporation
Defined Contribution Retirement Plan's Annual Report on Form 11-K for the year
ended November 30, 1994.
PRICE WATERHOUSE LLP
Hartford, Connecticut
May 25, 1995<PAGE>
