XBRL – Preparer’s Viewpoint John Stantial Director of Financial Reporting United Technologies Corporation

Agenda  Background  UTC Participation  Costs, Resources & Tools  Understanding the Basics  Why Participate Now?  Tapping into the Future Benefits  Items for Consideration  Conclusion & Call to Action

Background – United Technologies  $47B international conglomerate  Six principal segments:  Otis  Carrier  UTC Fire & Security  Pratt & Whitney  Hamilton Sundstrand  Sikorsky  Component of the Dow Jones Industrial Index

UTC Participation  9 th company to participate in VFP  Filed all seven quarter’s earnings releases in past two years  First company to file complete Form 10-Q including auditor’s opinion  Recently filed complete Exhibit 13 of Form 10-K including auditor’s opinion and certain other exhibits  UTC is member of the XBRL, U.S. temporary Board of Directors

Costs, Resources and Tools  Investment:  Initial required investment of $300  80 hours of effort on first filing; now down to 4  Total investment of approximately $40K and 600 hours  Tools:  Both Rivet and Fujitsu tools used  Resources:  Virtually all work done in house by existing resources; outside resources are available  Voluntary review of initial filing

Understanding the Basics  Tagging, validating & generating files  Taxonomies & Extensions  NO new information is being provided  Technical knowledge of XML is not necessarily a requirement  Focus moves from format to content  General requirements under the current SEC program

Why Participate Now?  Eliminate learning curve  Open and flexible program  Establish processes and controls  Influence the development of taxonomies, tools, processes  Potential for increased analyst/investor visibility  Begin exploring potential benefits and future opportunities  No valid reason not to!

Current 10-Q Process Flow ERP 10-Q in Word Edgar HFM ERP 10-Q in HTML 10-Q in XBRL Supplemental Data Review and Check Total Process Time: 845 Hours

Future 10-Q Process Flow ERP 10-Q in XBRL Edgar HFM XBRL Tagged ERP Supplemental Data XBRL Tagged Total Process Time: 700 Hours

The Benefits - Beyond SEC Reporting  Single source for ALL possible external reporting  Benchmarking, peer comparisons, research  Internal consistency across all locations  Enhanced control; significant reduction to manual handling/manipulation of data  Facilitation and increased reliability of ad hoc data requests

Items for Consideration  Current “chicken and egg” situation  Continued taxonomy development and use of extensions  Creation of sufficient mass  Initiatives and acceptance by agencies beyond the SEC  Attest requirements, standards and industry learning curve

Attestation  Current standards do not exist  Level and type of assurance to be required  Our auditor’s experience  Industry involvement required in advance of any mandate

Conclusion & Call to Action  There is a learning curve, however, after initial effort, time expended drops off significantly  Fastest way to learn and understand XBRL is to jump in and start tagging  Cost/resources should not be/are not an issue  Benefits become more obvious with familiarity  Critical mass is needed; difficult to “play ball” with everyone on the sidelines  Need analyst community to push on their channels  Attestation aspect needs development