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Previous: UNITED TECHNOLOGIES CORP /DE/, 11-K, 1998-06-30 |
Next: UNITED TECHNOLOGIES CORP /DE/, 11-K, 1998-06-30 |
<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, 1997
Commission File Number 1-812
UNITED TECHNOLOGIES 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 UNITED TECHNOLOGIES CORPORATION
REPRESENTED EMPLOYEE SAVINGS PLAN
REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Administrator of
the United Technologies 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 United Technologies
Corporation Represented Employee Savings Plan at December 31, 1997 and 1996, and
the changes in net assets available for benefits for the period ended December
31, 1997, 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.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The fund information in the statement of
net assets available for benefits and the statement of changes in net assets
available for benefits is presented for purposes of additional analysis rather
than to present the net assets available for plan benefits and changes in net
assets available for benefits of each fund. The fund information has been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
PRICE WATERHOUSE LLP
Hartford, Connecticut
June 26, 1998<PAGE>
<PAGE>
<TABLE>
UNITED TECHNOLOGIES CORPORATION REPRESENTED EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits With Fund Information
December 31, 1997
(Thousands of Dollars, except unit value)
<CAPTION>
Small UTC INVESCO
Company International Common Total
Income Equity Stock Index Equity Index Global Stock Return
Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value:
Beneficial interests in Bankers Trust
Company Pyramid:
Large Capitalization Equity Index Fund $ - $ 163,490 $ - $ - $ 2,830 $ - $ -
Russell 2000 Equity Index Fund - - 1,836 - - - -
Daily Japanese Equity Index Fund - - - 104 - - -
Daily Non Japanese Equity Index Fund - - - 313 - - -
Government/Corporate Fixed Income
Index Fund - - - - 2,316 - -
Daily International Equity Index Fund - - - - 2,716 - -
United Technologies Corporation Common
Stock - - - - - 41,537 -
Shares of respective registered
investment companies - - - - - - 1,074
Investments, at contract value or cost:
Beneficial interests in investment
contracts, at contract value 413,162 - - - - - -
Participant loans, at cost - - - - - - -
Temporary investments, at cost plus
accrued interest - - - - - 624 -
Total Investments 413,162 163,490 1,836 417 7,862 42,161 1,074
Plan receivables 616 195 4 2 17 172 3
Total Assets 413,778 163,685 1,840 419 7,879 42,333 1,077
Liabilities:
Accrued liabilities - - - - - 269 -
Loans payable, net - - - - - - -
Total Liabilities - - - - - 269 -
Net Assets Available for Benefits $ 413,778 $ 163,685 $ 1,840 $ 419 $ 7,879 $ 42,064 $ 1,077
Units of participation 67,062,978 7,787,073 152,037 39,785 3,310,348 3,482,194 37,006
Unit value $ 6.17 $ 21.02 $ 12.10 $ 10.53 $ 2.38 $ 12.08 $ 29.09
The accompanying notes are an integral part of these financial statements.
/TABLE
<PAGE>
<PAGE>
<TABLE>
UNITED TECHNOLOGIES CORPORATION REPRESENTED EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits With Fund Information
December 31, 1997
(Thousands of Dollars, except unit value)
<CAPTION>
Putnam
Fidelity Putnam New SoGen
Growth & Fund for Fidelity Low- PBHG Opportun- Interna-
Income Growth Fidelity Priced Stock Growth ities tional
Portfolio and Income Contrafund Fund Fund Fund Fund, Inc.
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value:
Beneficial interests in Bankers Trust
Company Pyramid:
Large Capitalization Equity Index Fund $ - $ - $ - $ - $ - $ - $ -
Russell 2000 Equity Index Fund - - - - - - -
Daily Japanese Equity Index Fund - - - - - - -
Daily Non Japanese Equity Index Fund - - - - - - -
Government/Corporate Fixed Income
Index Fund - - - - - - -
Daily International Equity Index Fund - - - - - - -
United Technologies Corporation Common
Stock - - - - - - -
Shares of respective registered
investment companies 9,817 3,804 4,213 3,104 5,227 4,153 724
Investments, at contract value or cost:
Beneficial interests in investment
contracts, at contract value - - - - - - -
Participant loans, at cost - - - - - - -
Temporary investments, at cost plus
accrued interest - - - - - - -
Total Investments 9,817 3,804 4,213 3,104 5,227 4,153 724
Plan receivables 24 9 11 7 15 13 2
Total Assets 9,841 3,813 4,224 3,111 5,242 4,166 726
Liabilities:
Accrued liabilities - - - - - - -
Loans payable, net - - - - - - -
Total Liabilities - - - - - - -
Net Assets Available for Benefits $ 9,841 $ 3,813 $ 4,224 $ 3,111 $ 5,242 $ 4,166 $ 726
Units of participation 258,277 194,964 90,579 123,791 206,464 84,824 28,567
Unit value $ 38.10 $ 19.56 $ 46.63 $ 25.13 $ 25.39 $ 49.10 $ 25.45
The accompanying notes are an integral part of these financial statements.
/TABLE
<PAGE>
<PAGE>
<TABLE>
UNITED TECHNOLOGIES CORPORATION REPRESENTED EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits With Fund Information
December 31, 1997
(Thousands of Dollars, except unit value)
<CAPTION>
Templeton
Templeton Developing
Foreign Markets
Fund I Trust I Loan Fund Total
<S> <C> <C> <C> <C>
Assets:
Investments, at fair value:
Beneficial interests in Bankers Trust
Company Pyramid:
Large Capitalization Equity Index Fund $ - $ - $ - $ 166,320
Russell 2000 Equity Index Fund - - - 1,836
Daily Japanese Equity Index Fund - - - 104
Daily Non Japanese Equity Index Fund - - - 313
Government/Corporate Fixed Income
Index Fund - - - 2,316
Daily International Equity Index Fund - - - 2,716
United Technologies Corporation Common
Stock - - - 41,537
Shares of respective registered
investment companies 1,577 721 - 34,414
Investments, at contract value or cost:
Beneficial interests in investment
contracts, at contract value - - - 413,162
Participant loans, at cost - - 15,663 15,663
Temporary investments, at cost plus
accrued interest - - - 624
Total Investments 1,577 721 15,663 679,005
Plan receivables 5 2 - 1,097
Total Assets 1,582 723 15,663 680,102
Liabilities:
Accrued liabilities - - - 269
Loans payable, net - - - -
Total Liabilities - - - 269
Net Assets Available for Benefits $ 1,582 $ 723 $ 15,663 $ 679,833
Units of participation 158,995 55,923 15,663,000
Unit value $ 9.95 $ 12.94 $ 1.00
The accompanying notes are an integral part of these financial statements.
/TABLE
<PAGE>
<PAGE>
<TABLE>
UNITED TECHNOLOGIES CORPORATION REPRESENTED EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits With Fund Information
December 31, 1996
(Thousands of Dollars, except unit value)
<CAPTION>
Income Equity UTC Common
Fund Fund Stock Fund Global Fund Loan Fund Total
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value:
Beneficial interests in Bankers Trust
Company Pyramid:
Government/Corporate Fixed Income
Index Fund $ - $ - $ - $ 2,686 $ - $ 2,686
Large Capitalization Equity Index Fund - 121,763 - 3,135 - 124,898
Daily International Equity Index Fund - - - 3,558 - 3,558
United Technologies Corporation Common
Stock - - 28,987 - - 28,987
Investments, at contract value or cost:
Beneficial interests in investment
contracts, at contract value 413,873 - - - - 413,873
Participant loans, at cost - - - - 11,411 11,411
Temporary investments, at cost plus
accrued interest 17 - 3 - - 20
Total Investments 413,890 121,763 28,990 9,379 11,411 585,433
Plan receivables 1,013 276 137 42 77 1,545
Total Assets 414,903 122,039 29,127 9,421 11,488 586,978
Liabilities:
Accrued liabilities - 73 7 38 2 120
Loans payable, net (75) (76) 41 (14) 27 (97)
Total Liabilities (75) (3) 48 24 29 23
Net Assets Available for Benefits $ 414,978 $ 122,042 $ 29,079 $ 9,397 $ 11,459 $ 586,955
Units of participation 72,672,216 7,746,597 2,684,290 4,546,961 11,459,000
Unit value $ 5.71 $ 15.75 $ 10.83 $ 2.07 $ 1.00
The accompanying notes are an integral part of these financial statements.
/TABLE
<PAGE>
<PAGE>
<TABLE>
UNITED TECHNOLOGIES CORPORATION REPRESENTED EMPLOYEE SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits With Fund Information
Period Ended December 31, 1997
(Thousands of Dollars)
<CAPTION>
Small UTC INVESCO
Company International Common Total
Income Equity Stock Index Equity Index Global Stock Return
Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment Income:
Net appreciation (depreciation) in fair
value of investments $ - $ 39,732 $ 133 $ 20 $ 1,171 $ 2,663 $ 91
Interest 31,101 37 - 1 - 4 -
Dividends - - - - - - 38
Total Investment Income 31,101 39,769 133 21 1,171 2,667 129
Contributions:
Participants' 23,058 7,780 95 53 777 3,279 74
Employer's 7,253 1,966 22 13 234 824 18
Total Contributions 30,311 9,746 117 66 1,011 4,103 92
Repayments on loans 3,920 1,452 7 7 174 610 10
Deductions from net assets attributed to:
Distributions to participants 25,606 6,982 12 8 259 1,696 8
Loans to participants 6,370 2,158 19 9 175 836 6
Administrative expenses 39 5 - - 1 1 -
Total Deductions 32,015 9,145 31 17 435 2,533 14
Net increase / (decrease) prior to
transfers 33,317 41,822 226 77 1,921 4,847 217
Inter-fund transfers (34,489) (130) 1,614 342 (3,439) 8,172 860
Assets transferred out of Plan (28) (49) - - - (34) -
Net increase / (decrease) (1,200) 41,643 1,840 419 (1,518) 12,985 1,077
Net Assets Available for Benefits
December 31, 1996 414,978 122,042 - - 9,397 29,079 -
Net Assets Available for Benefits
December 31, 1997 $ 413,778 $ 163,685 $ 1,840 $ 419 $ 7,879 $ 42,064 $ 1,077
The accompanying notes are an integral part of these financial statements.
/TABLE
<PAGE>
<PAGE>
<TABLE>
UNITED TECHNOLOGIES CORPORATION REPRESENTED EMPLOYEE SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits With Fund Information
Period Ended December 31, 1997
(Thousands of Dollars)
<CAPTION>
Putnam
Fidelity Putnam New SoGen
Growth & Fund Fidelity Low- PBHG Opportun- Interna-
Income for Growth Fidelity Priced Stock Growth ities tional
Portfolio and Income Contrafund Fund Fund Fund Fund, Inc.
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment Income:
Net appreciation (depreciation) in fair
value of investments $ 887 $ (66) $ 165 $ 180 $ 190 $ 440 $ (41)
Interest - - - - - - -
Dividends 378 418 348 170 (5) 89 72
Total Investment Income 1,265 352 513 350 185 529 31
Contributions:
Participants' 715 312 362 192 673 418 98
Employer's 174 80 91 47 161 98 27
Total Contributions 889 392 453 239 834 516 125
Repayments on loans 87 39 70 18 101 49 10
Deductions from net assets attributed to:
Distributions to participants 149 47 33 22 106 41 3
Loans to participants 76 36 87 21 82 54 12
Administrative expenses - - - 3 - - -
Total Deductions 225 83 120 46 188 95 15
Net increase / (decrease) prior to
transfers 2,016 700 916 561 932 999 151
Inter-fund transfers 7,825 3,113 3,308 2,550 4,310 3,167 575
Assets transferred out of Plan - - - - - - -
Net increase / (decrease) 9,841 3,813 4,224 3,111 5,242 4,166 726
Net Assets Available for Benefits
December 31, 1996 - - - - - - -
Net Assets Available for Benefits
December 31, 1997 $ 9,841 $ 3,813 $ 4,224 $ 3,111 $ 5,242 $ 4,166 $ 726
The accompanying notes are an integral part of these financial statements.
/TABLE
<PAGE>
<PAGE>
<TABLE>
UNITED TECHNOLOGIES CORPORATION REPRESENTED EMPLOYEE SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits With Fund Information
Period Ended December 31, 1997
(Thousands of Dollars)
<CAPTION>
Templeton
Templeton Developing
Foreign Markets
Fund I Trust I Loan Fund Total
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment Income:
Net appreciation (depreciation) in fair
value of investments $ (144) $ (244) $ - $ 45,177
Interest - - 1,086 32,229
Dividends 164 54 - 1,726
Total Investment Income 20 (190) 1,086 79,132
Contributions:
Participants' 151 80 - 38,117
Employer's 39 19 - 11,066
Total Contributions 190 99 - 49,183
Repayments on loans 17 11 (6,582) -
Deductions from net assets attributed to:
Distributions to participants 18 16 263 35,269
Loans to participants 25 5 (9,971) -
Administrative expenses - - - 49
Total Deductions 43 21 (9,708) 35,318
Net increase / (decrease) prior to
transfers 184 (101) 4,212 92,997
Inter-fund transfers 1,398 824 - -
Assets transferred out of Plan - - (8) (119)
Net increase / (decrease) 1,582 723 4,204 92,878
Net Assets Available for Benefits
December 31, 1996 - - 11,459 586,955
Net Assets Available for Benefits
December 31, 1997 $ 1,582 $ 723 $ 15,663 $ 679,833
The accompanying notes are an integral part of these financial statements.
/TABLE
<PAGE>
<PAGE>
UNITED TECHNOLOGIES CORPORATION
REPRESENTED EMPLOYEE SAVINGS PLAN
Notes to Financial Statements
NOTE 1 - DESCRIPTION OF THE PLAN
General. The United Technologies Corporation (UTC) Represented Employee Savings
Plan (the Plan) is a defined contribution savings plan administered by UTC. It
is subject to the provisions of the Employee Retirement Income Security Act of
1974 (ERISA). Union represented employees of UTC, covered by collective
bargaining agreements that provide for Plan participation, are eligible to
participate in the Plan after completing at least one year of service. The
following is a brief description of the Plan. For more complete information,
participants should refer to the plan document which is available from UTC.
Contributions and Vesting. All participants may elect, through payroll
deductions, to make tax deferred contributions of between $2 per week and the
maximum amount permitted by the relevant collective bargaining agreement.
Certain participants, depending on their collective bargaining agreement, may
also make after-tax contributions. Participant contributions, plus actual
earnings thereon, are fully vested at all times under the Plan. The employer
will match 50 percent of the participant's contributions, up to specified
limits. Generally, employer contributions, plus actual earnings thereon, become
fully vested after two years of Plan participation.
Certain participants may also make limited tax-deferred or after-tax
contributions to an individual medical account (IMA) or tax-deferred
contributions for cost of living adjustment (COLA), where permitted. The
employer will match 75 percent of the participant's IMA contribution. All
contributions to an IMA will be invested 100 percent in the Income Fund and may
not be withdrawn until retirement or termination.
Participant Accounts. Each participant's account is credited with the
participant's contributions and allocations of (a) UTC's contributions based on
a percentage of the participant's contribution and (b) Plan earnings based on
account balances. The benefit to which a participant is entitled is the
benefit that can be provided from the participant's vested account. Forfeited
balances of terminated participants' nonvested amounts are used to reduce future
UTC contributions. For the period ended December 31, 1997, approximately $7,100
of forfeitures were used to fund UTC's contributions.
Trustee and Recordkeeper. All of the Plan's assets are held by Bankers Trust
Company, the Plan Trustee. As of January 1, 1997, Fidelity Institutional
Retirement Services Company assumed the participant account recordkeeping
responsibilities.
Investment Options. On January 1, 1997, investment options increased to sixteen
from the previous four. Participants may elect to allocate their contributions
in any whole percentage among the following funds. Participants are permitted
to transfer their accounts between investment funds daily in any whole
percentage or whole dollar amount. The investment funds are as follows:
. The Income Fund invests in contracts issued by five insurance companies. See
Note 3.
. The Equity Fund invests in a portfolio of common stocks replicating the
Standard & Poor's Composite Index of 500 stocks (S&P 500).
. The Small Company Stock Index Fund invests in a portfolio of common stocks
replicating the Russell 2000 Index.
<PAGE>
<PAGE>
. The International Equity Index Fund invests in the equities of a mix of stock
markets outside the U.S.
. The Global Fund invests in both U.S. and foreign investments to replicate the
performance, in approximately equal portions, of three indices: the S&P 500,
the EAFE Index (an international stock index of large companies in Europe,
Australia and the Far East), and the Lehman Brothers Government/Corporate
Index.
. The UTC Common Stock Fund consists principally of 570,464 and 437,548 shares
of UTC Common Stock at December 31, 1997 and 1996, respectively.
. The INVESCO Total Return Fund invests in shares of a registered investment
company that principally invests in both equity and fixed or variable income
securities to achieve a moderate total return from capital appreciation and
current income.
. The Fidelity Growth & Income Portfolio invests in shares of a registered
investment company that principally invests in U.S. and foreign equity
securities that pay current dividends and show potential earnings growth.
. The Putnam Fund for Growth and Income invests in shares of a registered
investment company that principally invests in equity securities of companies
that pay regular dividends to shareowners.
. The Fidelity Contrafund invests in shares of a registered investment company
that principally invests in equity securities of U.S. and foreign companies
believed to be undervalued or out of favor.
. The Fidelity Low-Priced Stock Fund invests in shares of a registered
investment company that principally invests in equity securities of companies
believed to be undervalued, overlooked or out of favor, which are generally
priced at $35 or less.
. The PBHG Growth Fund invests in shares of a registered investment company
that principally invests in equity securities of companies believed to have
an outlook for strong earnings growth.
. The Putnam New Opportunities Fund invests in shares of a registered
investment company that principally invests in equity securities of companies
in certain emerging industry groups.
. The SoGen International Fund, Inc. invests in shares of a registered
investment company that invests in U.S. and foreign equity, fixed income and
gold-related securities and cash.
. The Templeton Foreign Fund I invests in shares of a registered investment
company that principally invests in equity securities of companies in
developed and developing countries outside the U.S.
. The Templeton Developing Markets Trust I invests in shares of a registered
investment company that principally invests in equity securities of companies
in developing countries.
Participant Loans. Certain participants with at least two years of plan
participation are allowed to borrow up to 50 percent of their vested account
balances excluding IMA and COLA. Loan amounts can range from $1,000 to
$50,000 and must be repaid within 5 years. The loans are secured by the balance
in the participant's account and bear interest at Bankers Trust's prime rate
plus one percent. Principal and interest are paid ratably through payroll
deductions.<PAGE>
<PAGE>
Payment of Benefits. Generally, benefits are paid in a lump sum to terminating
participants. Participants terminating due to retirement may elect to receive
benefits in installments over two to twenty years. At the participant's
election, the portion of a lump sum distribution attributable to the UTC Common
Stock Fund may be paid in shares of UTC Common Stock instead of cash.
Distributions in common stock for the period ended December 31, 1997 were
approximately $136,000.
Other. Participants who transfer to a new UTC location with a different savings
plan have the option of transferring their account balances in accordance with
the provisions of the new savings plan.
NOTE 2 - SUMMARY OF ACCOUNTING PRINCIPLES
Basis of Accounting. The financial statements of the Plan are prepared under
the accrual method of accounting. Benefits are recorded when paid.
Master Trust. The Plan's assets are kept in a Master Trust maintained by the
Trustee. Under the Master Trust agreement, the assets of certain employee
savings plans of UTC and its subsidiaries are combined. Participating Plans
purchase units of participation in the investment funds based on their
contribution to such funds and the unit value of the applicable investment fund
at the end of the trading day in which a transaction occurs. The unit value of
each fund is determined at the close of each day by dividing the sum of
uninvested cash, accrued income and the current value of investments by the
total number of outstanding units in such funds. Income from the funds'
investments increases the Plans' unit values. Distributions to participants
reduce the number of participation units held by the Plans.
At December 31, 1997, the Plan's interest in the Master Trust comprised
98,736,805 units of the 1,012,560,383 total units of participation, or 9.75%. At
December 31, 1996, the Plan's interest in the Master Trust comprised 99,109,064
units of the total 1,062,864,802 units of participation, or 9.33%.
Investment Valuation. The Income Fund's investment contracts are stated at
contract value which represents contributions plus earnings, less Plan
withdrawals. All other funds are stated at fair value, as determined by the
Trustee, typically by reference to published market data.
Plan Expenses. Plan administrative expenses, including Trustee and recordkeeper
fees were paid directly by the employer in 1997. The employer also paid certain
investment management fees for the Bankers Trust managed funds. All other
administrative and investment expenses were paid out of Plan assets.
Use of Estimates. The preparation of financial statements requires UTC to make
estimates and assumptions that affect the reported amounts in the financial
statements. Actual results could differ from those estimates.
NOTE 3 - INVESTMENT CONTRACTS
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 interest rates earned for 1997 and 1996 were 8.1% and
7.5%, respectively. The following is a summary of the investment contracts
held in the Income Fund and the portion allocable to the Plan:<PAGE>
<PAGE>
<TABLE>
<CAPTION>
(Thousands of Dollars) December 31, December 31,
1997 1996
<S> <C> <C>
CIGNA $ 1,456,404 $ 1,512,307
Aetna 437,582 457,815
Travelers 367,509 388,845
Prudential 231,133 236,966
Metropolitan Life 780,096 782,764
$ 3,272,724 $ 3,378,697
Amount of the contracts allocable to the Plan $ 413,162 $ 413,873
</TABLE>
NOTE 4 - 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.
NOTE 5 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following are reconciliations of net assets available for benefits and
benefits paid from the financial statements to the Form 5500:
<TABLE>
<CAPTION>
(Thousands of Dollars) December 31,
1997 1996
<S> <C> <C>
Net assets available for benefits
per the financial statements $ 679,833 $ 586,955
Amounts allocated to participant
withdrawals - (5,348)
Net assets available for benefits
per Form 5500 $ 679,833 $ 581,607
</TABLE>
<TABLE>
Year Ended
December 31,
1997
<S> <C>
Benefits paid to participants per the
financial statements $ 35,269
Add: Amounts allocated to participant
withdrawals at December 31, 1997 -
Less: Amounts allocated to participant
withdrawals at December 31, 1996 (5,348)
Benefits paid to participants per Form
5500 $ 29,921
Amounts allocated to participant withdrawals are recorded on Form 5500 for
benefit claims that have been processed and approved for payment prior to
December 31 but not yet paid as of that date.
NOTE 6 - TAX STATUS
The Internal Revenue Service has determined and informed UTC by letter dated
February 8, 1996 that the Plan and related trust are designed in accordance
with applicable sections of the Internal Revenue Code (IRC). The Plan has been
amended since receiving the determination letters. However, the Plan
administrator and tax counsel believe that the Plan is designed and currently
being operated in compliance with the applicable requirements of the IRC.<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.
UNITED TECHNOLOGIES CORPORATION
REPRESENTED EMPLOYEE SAVINGS PLAN
Dated: June 26, 1998 By: /s/ Daniel P. O'Connell
Daniel P. O'Connell
Corporate Director, Employee Benefits and Human
Resources Systems
United Technologies Corporation<PAGE>
<PAGE>
</TABLE>
<PAGE>
Exhibit 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-26580) of United Technologies Corporation of our
report dated June 26, 1998 appearing in the United Technologies Corporation
Represented Employee Savings Plan's Annual Report on Form 11-K for the year
ended December 31, 1997.
PRICE WATERHOUSE LLP
Hartford, Connecticut
June 26, 1998<PAGE>
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