<PAGE>
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Plan period ended December 31, 1995
Commission File Number 1-812
CARRIER CORPORATION
REPRESENTED EMPLOYEE SAVINGS PLAN
(Full title of the plan)
UNITED TECHNOLOGIES CORPORATION
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 CARRIER CORPORATION
REPRESENTED EMPLOYEE SAVINGS PLAN
REPORT OF INDEPENDENT ACCOUNTANTS
To United Technologies Corporation
and Participants of the Carrier Corporation
Represented Employee Savings Plan
In our opinion, the accompanying statements of net assets available for benefits
with fund information and the related statement of changes in net assets
available for benefits with fund information present fairly, in all material
respects, the net assets available for benefits of the Carrier Corporation
Represented Employee Savings Plan at December 31, 1995 and November 30, 1995,
and the changes in net assets available for benefits for the period ended
December 31, 1995, in conformity with generally accepted accounting principles.
These financial statements are the responsibility of the Plan's management; 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 24, 1996<PAGE>
<PAGE>
<TABLE>
CARRIER CORPORATION REPRESENTED EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits With Fund Information
December 31, 1995
(Thousands of Dollars, except unit value)
<CAPTION>
UTC Funds
Income Fund Equity Fund Stock Fund Global Fund Loan Fund Combined
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments:
Beneficial interests in contracts
issued by insurance companies, at cost
plus accrued interest $ 31,777 $ - $ - $ - $ - $ 31,777
Beneficial interests in Bankers Trust
Company Pyramid Fixed Income Index
Fund, at market - - - 44 - 44
Beneficial interests in Bankers Trust
Company Pyramid Equity Index Fund, at
market - 8,454 - 56 - 8,510
Beneficial interests in Bankers Trust
Company Pyramid International
Securities Index Fund, at market - - - 52 - 52
United Technologies Corporation Common
Stock, at market - - 1,929 - - 1,929
Participant loans, at cost - - - - 267 267
Temporary investments, at cost plus
accrued interest 1 - 47 - - 48
Total Investments 31,778 8,454 1,976 152 267 42,627
Contributions and fund transfers
receivable - 74 36 19 3 132
Total Assets 31,778 8,528 2,012 171 270 42,759
Less - Liabilities:
Contributions and fund transfers
payable 321 14 - - - 335
Loans Payable, net 7 - (1) - (8) (2)
Accrued investment purchases - - - 2 - 2
Total Liabilities 328 14 (1) 2 (8) 335
Net Assets Available for Benefits $ 31,450 $ 8,514 $ 2,013 $ 169 $ 278 $ 42,424
Units of participation 5,924,141 665,730 264,094 90,592 278,000
Unit value $ 5.31 $ 12.79 $ 7.62 $ 1.86 $ 1.00
</TABLE>
(See accompanying Notes to Financial Statements)
<PAGE>
<PAGE>
<TABLE>
CARRIER CORPORATION REPRESENTED EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits With Fund Information
November 30, 1995
(Thousands of Dollars, except unit value)
<CAPTION>
UTC Funds
Income Fund Equity Fund Stock Fund Global Fund Loan Fund Combined
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments:
Beneficial interests in contracts
issued by insurance companies, at cost
plus accrued interest $ 31,862 $ - $ - $ - $ - $ 31,862
Beneficial interests in Bankers Trust
Company Pyramid Fixed Income Index
Fund, at market - - - 29 - 29
Beneficial interests in Bankers Trust
Company Pyramid Equity Index Fund, at
market - 7,783 - 35 - 7,818
Beneficial interests in Bankers Trust
Company Pyramid International
Securities Index Fund, at market - - - 33 - 33
United Technologies Corporation Common
Stock, at market plus accrued
dividends ($10) - - 1,847 - - 1,847
Participant loans, at cost - - - - 261 261
Temporary investments, at cost plus
accrued interest 1 - 26 - - 27
Total Investments 31,863 7,783 1,873 97 261 41,877
Contributions and fund transfers
receivable - 444 51 46 1 542
Total Assets 31,863 8,227 1,924 143 262 42,419
Less - Liabilities:
Contributions and fund transfers
payable 854 41 9 - - 904
Loans Payable, net 5 - - - (5) -
Total Liabilities 859 41 9 - (5) 904
Net Assets Available for Benefits $ 31,004 $ 8,186 $ 1,915 $ 143 $ 267 $ 41,515
Units of participation 5,875,220 651,583 254,165 78,717 267,000
Unit value $ 5.28 $ 12.56 $ 7.54 $ 1.82 $ 1.00
</TABLE>
(See accompanying Notes to Financial Statements)
<PAGE>
<PAGE>
<TABLE>
CARRIER CORPORATION REPRESENTED EMPLOYEE SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits With Fund Information
Period Ended December 31, 1995
(Thousands of Dollars)
<CAPTION>
UTC Funds
Income Fund Equity Fund Stock Fund Global Fund Loan Fund Combined
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $ 353 $ 105 $ 32 $ 4 $ - $ 494
Employer 125 35 10 2 - 172
Total Contributions 478 140 42 6 - 666
Investment Income:
Interest 185 - - - 2 187
Dividends - - - - - -
Total Investment Income 185 - - - 2 187
Repayments on loans 5 2 1 - (8) -
Unrealized appreciation of investments - 146 22 3 - 171
Deduct:
Cash distributions to participants 84 28 3 - - 115
Loans to participants 15 2 - - (17) -
Total Deductions 99 30 3 - (17) 115
Inter-fund and inter-plan transfers (123) 70 36 17 - -
Net Increase in Net Assets Available
for Benefits 446 328 98 26 11 909
Net Assets Available for Benefits
November 30, 1995 31,004 8,186 1,915 143 267 41,515
Net Assets Available for Benefits
December 31, 1995 $ 31,450 $ 8,514 $ 2,013 $ 169 $ 278 $ 42,424
</TABLE>
(See accompanying Notes to Financial Statements)
<PAGE>
<PAGE>
CARRIER CORPORATION REPRESENTED EMPLOYEE SAVINGS PLAN
Notes to Financial Statements
NOTE 1 - DESCRIPTION OF THE PLAN
The Carrier Corporation Represented Employee Savings Plan (the Plan) is a
defined contribution savings plan sponsored by Carrier Corporation (Carrier), a
subsidiary of United Technologies Corporation (UTC). The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
Union represented employees of Carrier are eligible to participate in the Plan
if the employees have completed at least one year of service and their
employment is covered by a collective bargaining agreement that provides that
such employees may participate in the Plan. Below is a brief description of the
Plan. More complete information is provided in the plan document which is
available from UTC.
Effective December 1, 1995, the Plan year end was changed to the twelve month
period ending December 31. The short period beginning December 1, 1995 and
ending December 31, 1995 is covered by this report.
Participants may elect, through payroll deductions, to make after-tax
contributions of between $2 per week and a maximum amount as permitted by the
relevant collective bargaining agreement. Certain participants, depending on
their collective bargaining agreement, may also make tax-deferred contributions.
Participant contributions are fully vested at all times under the Plan. The
employer will make contributions with respect to each participant generally
equal in amount to 50 percent of the participant's contributions, up to
specified limits. Generally, employer contributions become fully vested after
two years of Plan participation.
All participant contributions are credited to a participant account maintained
by UTC. Contributions are invested, pursuant to each participant'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. Participants may elect to
have 100 percent of their contributions invested in one investment fund or may
allocate the contributions in any whole percentage among the funds. Participants
are permitted to transfer their accounts between investment funds once per
quarter in any whole percentage.
The Income Fund is invested in contracts issued by five insurance companies.
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 companies. 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 company. The weighted average rate set for the 1995 calendar year was
7.25 percent.
The Equity Fund may be invested in common or capital stocks 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 Bankers Trust Company (BT), the Trustee,
which is invested primarily in similar types of equity securities. During 1995,
the Equity Fund was invested principally in the 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 the Equity Fund
are reinvested and increase market value.<PAGE>
<PAGE>
The UTC Stock Fund consists principally of 20,335 and 19,593 shares of UTC
Common Stock at December 31 and November 30, 1995, respectively.
The Global Fund is 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 BT Pyramid International Securities Index Fund invests in
four other international index funds managed by the Trustee. The BT Pyramid
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.
Certain participants with at least two years of plan participation are allowed
to borrow up to 50 percent of their account balances. Loan amounts can range
from $1,000 to $50,000 and must be repaid in 5 years or less with interest.
Forfeitures of employer contributions are used to reduce employer contributions;
earned but unapplied forfeitures will be applied against future employer
contributions and are shown separately in the Statement of Changes in Net Assets
Available for Benefits With Fund Information.
Participants who transfer to a new location of UTC 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. Transfer of balances to the new savings plan will be governed
by the terms of the collective bargaining agreements.
The number of participants in the Plan at year end was as follows:
<TABLE><CAPTION>
December 31, November 30,
1995 1995
<S> <C> <C>
Income Fund 4,199 4,197
Equity Fund 1,708 1,696
UTC Stock Fund 599 587
Global Fund 67 59
</TABLE>
The participants above may have investments in more than one of the investment
funds.
NOTE 2 - SUMMARY OF ACCOUNTING PRINCIPLES
UTC has entered into a master trust agreement with the Trustee. Under this
agreement, certain employee savings plans of UTC 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 to participants reduce the number of
participation units held by the plans.
The financial statements of the Plan are prepared under the accrual method of
accounting. Benefits are recorded when paid.<PAGE>
<PAGE>
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
1995 plan year were paid by the employer.
The Plan is not subject to federal income tax as the Plan and its related trust
are considered by UTC to satisfy the qualification and exemption requirements of
Section 401(a) and 501(a) of the Internal Revenue Code. UTC has received a
favorable determination letter (dated November 4, 1986) from the Internal
Revenue Service (IRS) indicating that the Plan qualifies under Sections 401(a)
and 501(a) of the Code. UTC has applied 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
UTC, participants (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 Income Fund
and the portion allocable to the Plan:
<TABLE><CAPTION>
(Thousands of Dollars) December 31, November 30,
1995 1995
<S> <C> <C>
CIGNA $ 1,566,944 $ 1,576,306
Aetna 494,944 503,447
Travelers 432,342 437,101
Prudential 219,677 223,870
Metropolitan Life 587,847 578,573
$ 3,301,754 $ 3,319,297
Amount of the contracts allocable to the Plan $ 31,777 $ 31,862
</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. There were no gains recognized by the Master Trust funds for the one
month period ended December 31, 1995.<PAGE>
<PAGE>
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>
(Thousands of Dollars) December 31, 1995 November 30, 1995
Dollars Units Dollars Units
<S> <C> <C> <C> <C>
Income Fund $ 330 62,217 $ 257 48,622
Equity Fund 72 5,627 56 4,467
UTC Stock Fund 8 1,052 4 525
Global Fund 1 296 - -
</TABLE>
These amounts are reflected as liabilities in the Plan's Form 5500.
NOTE 6 - PLAN TERMINATION
Although it has not expressed any intent to do so, UTC has the right under the
Plan to discontinue its contributions at any time and to terminate the Plan
subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100 percent vested in their accounts.<PAGE>
<PAGE>
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.
CARRIER CORPORATION
REPRESENTED EMPLOYEE SAVINGS PLAN
Dated: June 7, 1996 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. 33-11255) of United Technologies Corporation of our
report dated May 24, 1996 appearing in the Carrier Corporation Represented
Employee Savings Plan's Annual Report on Form 11-K for the period ended December
31, 1995.
PRICE WATERHOUSE LLP
Hartford, Connecticut
June 7, 1996<PAGE>
