Form 11-K
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FORM 11-K

 

 

ANNUAL REPORT PURSUANT TO SECTION 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Plan fiscal year ended December 31, 2008

Commission File Number 1-812

 

 

UNITED TECHNOLOGIES CORPORATION

REPRESENTED EMPLOYEE SAVINGS PLAN

UNITED TECHNOLOGIES CORPORATION

One Financial Plaza

Hartford, Connecticut 06103

 

 

 


Table of Contents

UNITED TECHNOLOGIES CORPORATION

REPRESENTED EMPLOYEE SAVINGS PLAN

Index to Financial Statements

December 31, 2008 and 2007

 

     Page

Report of Independent Registered Public Accounting Firm

   3

Financial Statements

  

Statements of Net Assets Available for Benefits as of December 31, 2008 and 2007

   4

Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2008

   5

Notes to Financial Statements

   6-12

Supplemental Schedule - Schedule H, Line 4i - Schedule of Assets (Held at End of Year) as of December 31, 2008

   13

Signature

   14

Exhibit Index

   15

Consent of Independent Registered Public Accounting Firm

   16

 

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FINANCIAL STATEMENTS OF THE

UNITED TECHNOLOGIES CORPORATION

REPRESENTED EMPLOYEE SAVINGS PLAN

Report of Independent Registered Public Accounting Firm

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 and the related statement of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the United Technologies Corporation Represented Employee Savings Plan (the “Plan”) at December 31, 2008 and 2007, and the changes in net assets available for benefits for the year ended December 31, 2008 in conformity with accounting principles generally accepted in the United States of America. 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 the standards of the Public Company Accounting Oversight Board (United States). Those standards 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 our opinion.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule of Assets (Held at End of Year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule 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.

 

/s/ PricewaterhouseCoopers LLP
Hartford, Connecticut
June 26, 2009

 

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UNITED TECHNOLOGIES CORPORATION

REPRESENTED EMPLOYEE SAVINGS PLAN

Statements of Net Assets Available for Benefits

(Thousands of Dollars)

 

     December 31,
2008
   December 31,
2007
 

Assets:

     

Investment in Master Trust, at fair value

   $ 1,521,399    $ 1,807,679   

Contributions receivable:

     

Participants’

     1,015      7,788   

Employer’s

     226      3,831   
               

Net assets available for benefits, at fair value

     1,522,640      1,819,298   

Adjustment from fair value to contract value for interest in Master Trust relating to fully benefit-responsive investment contracts

     104,615      (33,085
               

Net assets available for benefits

   $ 1,627,255    $ 1,786,213   
               

The accompanying notes are an integral part of these financial statements.

 

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UNITED TECHNOLOGIES CORPORATION

REPRESENTED EMPLOYEE SAVINGS PLAN

Statement of Changes in Net Assets Available for Benefits

(Thousands of Dollars)

 

     Year Ended
December 31,
2008
 

Additions to net assets attributed to:

  

Contributions:

  

Participants’

     78,631   

Employer’s

     18,468   
        

Total additions

     97,099   
        

Deductions from net assets attributed to:

  

Plan interest in net depreciation and investment loss of Master Trust

     164,290   

Distributions to participants or beneficiaries

     97,108   

Administrative expenses

     255   
        

Total deductions

     261,653   
        

Net decrease prior to transfers

     164,554   
        

Plan transfers:

  

Assets transferred into Plan

     5,608   

Assets transferred out of Plan

     (12
        

Net transfers

     5,596   
        

Net decrease

     158,958   

Net assets available for benefits, December 31, 2007

     1,786,213   
        

Net assets available for benefits, December 31, 2008

   $ 1,627,255   
        

The accompanying notes are an integral part of these financial statements.

 

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UNITED TECHNOLOGIES CORPORATION

REPRESENTED EMPLOYEE SAVINGS PLAN

Notes to Financial Statements

NOTE 1 – DESCRIPTION OF THE PLAN

General. The United Technologies Corporation Represented Employee Savings Plan (the “Plan”) is a defined contribution savings plan administered by United Technologies Corporation (“UTC,” the “Corporation,” the “Employer,” or the “Company”). It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). Union represented employees of certain UTC subsidiaries whom are covered by collective bargaining agreements that provide for Plan participation are customarily 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 summary plan description as well as the Plan document which are available from UTC.

Trustee and Recordkeeper. The Plan trustee holds all of the Plan’s assets. State Street Bank and Trust (“Trustee”) is the Plan trustee. Fidelity Institutional Retirement Services Company (“Fidelity”) provides recordkeeping services.

Contributions and Vesting. All participants may elect, through payroll deductions, to make tax deferred contributions of between $1 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. Participants direct the investment of their contributions including Employer matching contributions into various investment options offered by the Plan through the United Technologies Corporation Employee Savings Plan Master Trust (“Master Trust”). Through the Master Trust the Plan offers 20 mutual funds, seven commingled index funds, one stable value fund, and a company stock fund as investment options to participants. The Master Trust also includes a money market fund that is primarily used for transitioning or merging plans. Participant contributions, plus actual earnings thereon, are fully vested at all times under the Plan. The Employer will contribute specified amounts to the Plan in accordance with the terms outlined in each collective bargaining agreement. 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 adjustments (“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 stable value fund through the Master Trust and may not be withdrawn until retirement or termination.

Participant Accounts. Generally, each participant’s account is credited with (a) participant’s contributions, (b) UTC’s contributions in accordance with the terms outlined in each particular bargaining agreement based on a percentage of the participant’s contribution and (c) Plan earnings and losses reduced by expense allocations. 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’ non-vested Employer contributions accounts are used to reduce future UTC contributions and/or to pay Plan expenses. For the year ended December 31, 2008, approximately $68,000 of forfeitures was used to fund UTC’s contributions.

Voting Rights. Stock held in the UTC Common Stock Fund is voted by the Trustee at shareowner meetings of UTC in accordance with the confidential instructions of the participants whose accounts are invested in this fund. All shares of Employer stock in the UTC Common Stock Fund for which the Trustee receives voting instructions from participants to whose accounts the shares are allocated are voted in accordance with those instructions. All Employer stock in the UTC Common Stock Fund for which the Trustee does not receive timely voting instructions are voted by the Trustee in accordance with the timely instructions it receives with respect to a plurality of the shares in the UTC Common Stock Fund.

Participant Loans. Certain participants are allowed to borrow up to 50 percent of their vested account balances excluding IMA and COLA amounts. Loan amounts can range from $1,000 to $50,000 and must be repaid within 5 years. The loans are collateralized by the balance in the participant’s account and bear interest at prime rate plus one percent per The Wall Street Journal, which ranged from 4.25 percent to 9.25 percent for loans outstanding at December 31, 2008. Principal and interest are paid ratably through payroll deductions.

Payment of Benefits. Generally, upon termination, benefits may be left in the Plan or paid in a lump sum to a terminating participant. 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 an investment in the UTC Common Stock Fund may be paid in shares of UTC Common Stock instead of cash. Distributions in UTC Common Stock for the year ended December 31, 2008 were approximately $1,688,000.

 

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NOTE 2 – SUMMARY OF ACCOUNTING PRINCIPLES

Basis of Accounting. The financial statements of the Plan are prepared under the accrual method of accounting.

Master Trust. The Plan’s assets are kept in the Master Trust maintained by the Trustee. Under the Master Trust agreement, the assets of certain employee savings plans of UTC are combined. Participating plans purchase units of participation in the underlying 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 or losses from the funds’ investments, other than the UTC Common Stock Fund, increase or decrease the participating plans’ unit values. UTC Common Stock Fund dividends increase the Plan’s units in that fund. Distributions to participants reduce the number of participation units held by the participating plans (see Note 4).

Fully Benefit-Responsive Investment Contracts. The Plan is required to report fully responsive investment contracts at fair value. However, contract value is the relevant measurement attribute for fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The Plan invests in investment contracts through the Master Trust. The statement of net assets available for benefits presents the fair value of the investment in the Master Trust as well as the adjustment of the investment in the Master Trust from fair value to contract value relating to these investment contracts. The statement of changes in net assets available for benefits is prepared on a contract value basis.

Investment Valuation and Income Recognition. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Shares held in mutual funds are traded on a national exchange and are valued at the closing prices as of the last business day of each period presented.

Commingled funds represent investments held in institutional funds and are valued at the net asset values per share as of the valuation date. The commingled funds are made up of a variety of index funds. The underlying holdings of the commingled funds are primarily marketable equity and fixed income securities.

The Master Trust invests in a stable value fund that invests in managed separate account guaranteed investment contracts (“GICs”) and synthetic GICs with financial institutions. Managed separate account GICs are investment contracts invested in insurance company separate accounts established for the sole benefit of UTC stable value fund participants. The assets are wrapped by the financially responsible insurance company. The Plan participates in the underlying experience of the separate account via future periodic rate resets, which once set, are guaranteed by the insurance company. The wrap contract provides assurance that future adjustments to the crediting rate cannot result in a crediting rate less than zero. A synthetic GIC consists of a portfolio of underlying assets owned by the Master Trust and a wrap contract issued by a financially responsible third party, typically an insurance company. Synthetic GICs provide for a variable crediting rate which resets periodically. The wrap contract provides assurance that future adjustments to the crediting rate cannot result in a crediting rate less than zero. Individual assets comprising the synthetic GICs are valued at representative quoted market prices, if available. As of December 31, 2008 the fair value of the wrap contracts for the GICs were determined using a discounted cash flow method which considers recent rebids as determined by recognized dealers, discount rate and duration of the underlying portfolio. As of December 31, 2008 and 2007 the value of the wrap contracts was $4.1 million and $0, respectively.

As fully benefit-responsive investment contracts, the stable value fund’s investments are also stated at contract value (the amount available to pay benefits). Contract value includes contributions plus earnings, less Plan withdrawals and expenses. There are no reserves against contract value for credit risk.

UTC stock is stated at fair value determined using the closing sales price for UTC stock as of the valuation date.

Participant loans are valued at amortized cost, which approximates fair value.

Purchases and sales of securities are recorded on a trade-date basis. Dividends are recorded on the ex-dividend date.

Note 5 provides additional disclosures with respect to fair value.

 

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Plan Expenses. Plan administrative expenses, including Plan trustee and recordkeeper fees were paid directly by the Employer in 2008. All other administrative, investment management fees and other investment expenses were paid out of Plan assets during 2008.

Payment of Benefits. Benefit payments to participants or beneficiaries are recorded upon distribution.

Use of Estimates. The preparation of the Plan’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of net assets available for benefits at the dates of the financial statements, and changes therein during the reporting period and, when applicable, disclosures of contingent assets and liabilities at the dates of the financial statements. Actual results could differ from those estimates.

Risks and Uncertainties. Through the Master Trust, the Plan provides for various investment options in any combination of stocks, bonds, mutual funds and other investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit. These risks can be adversely impacted by shifts in the market’s perception of the issuers, changes in interest rates, and global economic conditions. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term would materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

NOTE 3 – INVESTMENT CONTRACTS WITH INSURANCE COMPANIES

Through the Master Trust, the Plan invests in a stable value fund that invests in managed separate account GICs and synthetic GICs with financial institutions. Managed separate account GICs are investment contracts invested in insurance company separate accounts established for the sole benefit of the UTC stable value fund participants. The assets are wrapped by the financially responsible insurance company. The Plan participates in the underlying experience of the separate account via future periodic rate resets guaranteed by the insurance company. A synthetic GIC consists of a portfolio of underlying assets owned by the Master Trust, and a wrap contract issued by a financially responsible third party, typically an insurance company. Synthetic GICs provide for a variable crediting rate which resets periodically. The wrap contracts provide assurance that future adjustments to the crediting rate cannot result in a crediting rate less than zero. Under these contracts, each insurance company guarantees repayment in full of the principal amount 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 crediting rate is primarily based on the current yield-to-maturity of the covered investments, plus or minus amortization of the difference between the market value and contract value of the covered investments over the duration of the covered investments at the time of computation. There are no reserves against contract value for credit risk.

Certain events could limit the ability of the Plan to transact at contract value with the issuer. Such events include the following: (i) certain amendments to the Plan documents that adversely impact the stable value fund; (ii) introduction of an investment option that competes with the stable value fund; (iii) certain Plan sponsor events (e.g. a significant divestiture) that cause a significant withdrawal from the Plan; (iv) the failure of the trust to qualify for exemption from federal income taxes; or, (v) material breach of contract provisions. UTC does not believe that the occurrence of any such event, which would limit the Plan’s ability to transact at contract value with participants, is probable. Certain events enable issuers to terminate their contracts with UTC and settle at an amount other than contract value. Under each contract, the Plan has the option to address and cure any such event within a specified period of time. UTC does not believe that the occurrence of any such event is probable.

The average yield of the GICs based on actual earnings was approximately (5.8) % and 5.7% for the years ended December 31, 2008 and 2007, respectively. The average yield of the GICs based on interest rate credited to participants was approximately 6.25% and 6.35% for the years ended December 31, 2008 and 2007, respectively.

NOTE 4 – INVESTMENT IN MASTER TRUST

UTC has entered into a Master Trust agreement with the Trustee. Under this agreement, certain savings plans of UTC combine their trust fund investments in the Master Trust.

Participating plans purchase units of participation in the investment funds based on their contribution to such funds in addition to income or loss the investment funds may earn or sustain, less distributions made to the plans’ participants. The Plan’s interest in the net assets of the Master Trust was approximately 12 percent at December 31, 2008 and approximately 10 percent at December 31, 2007.

 

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The following is a summary of the financial information and data for the Master Trust and the portion attributable to the Plan:

United Technologies Corporation Employee Savings Plan

Master Trust Statements of Net Assets

(Thousands of Dollars)

 

     December 31,  
     2008     2007  
     Allocated     Unallocated     Total     Allocated     Unallocated     Total  

Assets:

            

Short-term investments

   $ 58,120      $ —        $ 58,120      $ 87,228      $ —        $ 87,228   

Investments:

            

Mutual funds

     1,136,736        —          1,136,736        1,866,720        —          1,866,720   

Commingled index funds

     1,167,437        —          1,167,437        1,941,499        —          1,941,499   

Common stock

     3,213,008        1,286,351        4,499,359        4,423,478        1,997,303        6,420,781   

Stable value fund investment contracts

     6,396,864        —          6,396,864        6,871,315        —          6,871,315   

Participant notes receivable

     129,182        —          129,182        125,299        —          125,299   
                                                

Subtotal

     12,101,347        1,286,351        13,387,698        15,315,539        1,997,303        17,312,842   

ESOP receivables

     —          172,960        172,960        —          181,986        181,986   

Interest and dividend receivable

     7,443        —          7,443        972        —          972   
                                                

Total assets

     12,108,790        1,459,311        13,568,101        15,316,511        2,179,289        17,495,800   
                                                

Liabilities:

            

Accrued liabilities

     (3,714     —          (3,714     (549     —          (549

Accrued ESOP interest

     —          (1,111     (1,111     —          (1,188     (1,188

ESOP debt

     —          (32,700     (32,700     —          (65,300     (65,300

Notes payable to UTC

     —          (300,433     (300,433     —          (295,833     (295,833
                                                

Total liabilities

     (3,714     (334,244     (337,958     (549     (362,321     (362,870
                                                

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

     665,214        —          665,214        (216,527     —          (216,527

Net assets

   $ 12,770,290      $ 1,125,067      $ 13,895,357      $ 15,099,435      $ 1,816,968      $ 16,916,403   
                                                

Net assets of the Master Trust attributable to the Plan

   $ 1,626,014      $ —        $ 1,626,014      $ 1,774,594      $ —        $ 1,774,594   
                                                

 

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United Technologies Corporation Employee Savings Plan

Master Trust Statement of Changes in Net Assets

(Thousands of Dollars)

 

     Year Ended December 31, 2008  
     Allocated     Unallocated     Total  

Additions:

      

Interest and dividend income

   $ 162,967      $ 35,600      $ 198,567   

Transfers in from participating plans for purchase of units

     490,032        20,263        510,295   

Allocation of 1,716,000 ESOP shares, at market

     113,306        —          113,306   
                        

Total additions

     766,305        55,863        822,168   

Deductions:

      

Net depreciation on fair value of investments

     (2,361,888     (611,622     (2,973,510

Transfers out on behalf of participating plans for distributions

     (759,309     —          (759,309

Allocation of 1,716,000 ESOP shares, at market

     —          (113,306     (113,306

Master Trust administrative and interest expenses

     (1,936     (22,836     (24,772
                        

Total deductions

     (3,123,133     (747,764     (3,870,897
                        

Net decrease prior to transfers

     (2,356,828     (691,901     (3,048,729
                        

Plan transfers:

      

Assets transferred in

     27,721        —          27,721   

Assets transferred out

     (38     —          (38
                        

Net plan transfers

     27,683        —          27,683   
                        

Decrease in net assets

     (2,329,145     (691,901     (3,021,046

Net assets:

      

Beginning of year

     15,099,435        1,816,968        16,916,403   
                        

End of year

   $ 12,770,290      $ 1,125,067      $ 13,895,357   
                        

During 2008, the Master Trust investments (including gains and losses on investments bought and sold, as well as held during the year) depreciated in value as follows:

 

(thousands of dollars)

      

ESOP fund

   $ (1,503,251

Common stock

     (438,955

Mutual funds

     (681,403

Commingled index funds

     (769,813

Stable value fund investment contracts*

     419,912   
        
   $ (2,973,510
        

 

* Appreciation is presented at contract value.

 

(thousands of dollars)    Year Ended
December 31, 2008
 

Amounts pertaining to Plan:

  

Plan interest in net depreciation and investment loss of Master Trust

   $ (164,290
        

Contributions received (cash basis)

   $ 107,476   
        

Net assets transferred into Plan

   $ 5,596   
        

Distributions to participants or beneficiaries

   $ (97,108
        

Administrative expenses

   $ (255
        

NOTE 5 – FAIR VALUE OF INVESTMENTS

Effective January 1, 2008, the Master Trust adopted Statement of Financial Accounting Standard No. 157, “Fair Value Measurements” (FAS 157) for its investments. FAS 157 defines fair value, expands disclosure requirements around fair value and specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Master Trust’s market assumptions. These two types of inputs create the following fair value hierarchy:

Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets.

 

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Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

When quoted prices in active markets for identical assets are available, these quoted market prices are used to determine the fair value of investments and classify these assets as Level 1. In other cases where a quoted market price for identical assets in an active market is either not available or not observable, the fair values are estimated using valuation methodologies based on available and observable market information or by using a matrix pricing model. These financial assets would then be classified as a Level 2. If quoted market prices are not available, fair value is determined using an analysis of each investment’s financial performance and cash flow projections. In these instances, financial assets will be classified based upon the lowest level of input that is significant to the valuation. Therefore, financial assets may be classified in Level 3 even though there may be some significant inputs that may be readily available.

The following table provides the investments carried at fair value measured on a recurring basis as of December 31, 2008:

 

(thousands of dollars)

   Quoted Prices
Level 1
    Significant Other
Observable Inputs
Level 2
    Significant
Unobservable Inputs
Level 3
   Total

Mutual funds

   $ 1,136,736      $ —        $ —      $ 1,136,736

Commingled index funds

     —          1,167,437        —        1,167,437

Common stock

     4,499,359        —          —        4,499,359

Stable value fund investment contracts:

         

Synthetic GIC - equities

     115,249     59,355     —        174,604

Synthetic GIC - fixed income

     422,731     3,473,323     —        3,896,054

Traditional (separate account) GIC

     —          2,380,385        —        2,380,385

Wrap contracts

     —          —          4,124      4,124
                             

Total investment contracts

     537,980        5,913,063        4,124      6,455,167

Participant loans

     —          —          129,182      129,182
                             

Total

   $ 6,174,075      $ 7,080,500      $ 133,306    $ 13,387,881
                             

 

* These amounts do not include receivables due to or payables due from the fund.

The changes in the balances of the Level 3 investments for the year ended December 31, 2008 were as follows:

 

(thousands of dollars)

   Participant Loans    Wrap Contracts    Total

Balance, beginning of year

   $ 125,299    $ —      $ 125,299

Unrealized gain/(loss)

     —        4,124      4,124

Transfers in / (out)

     —        —        —  

Net loan withdrawals

     3,883      —        3,883
                    

Balance, end of year

   $ 129,182    $ 4,124    $ 133,306

NOTE 6 – RELATED-PARTY TRANSACTIONS

Fidelity and the Trustee manage certain Plan investment options. These transactions qualify as exempt party-in-interest transactions.

The Master Trust holds common shares of UTC, the Plan sponsor, and these qualify as exempt party-in-interest transactions.

 

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The Plan invests in the UTC Common Stock Fund (the “Fund”), which is comprised of a short-term investment fund component and shares of common stock of UTC. The unit values of the Fund are recorded and maintained by Fidelity. During the year ended December 31, 2008, the Plan purchased units of the Fund in the approximate amount of $127,444,000 including dividends and interest of approximately $5,313,000, sold units of the Fund in the approximate amount of $107,799,000, and had net depreciation on the Fund in the approximate amount of $89,266,000. The total value of the Plan’s interest in the Fund was $231,836,000 and $301,457,000 at December 31, 2008 and 2007, respectively.

NOTE 7 – 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 8 – RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500

Fully benefit-responsive GICs are recorded on the Form 5500 at contract value while in the Plan’s financial statements these investments are presented at fair value with an adjustment to contract value.

NOTE 9 – TAX STATUS

The Internal Revenue Service has determined and informed UTC by letter dated April 28, 2003 that the Plan is designed in accordance with applicable sections of the Internal Revenue Code (“IRC”). The Plan has been amended since receiving the determination letter. However, the Plan administrator believes that the Plan is designed and currently being operated in compliance with the applicable requirements of the IRC.

 

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UNITED TECHNOLOGIES CORPORATION REPRESENTED EMPLOYEE SAVINGS PLAN

SUPPLEMENTAL SCHEDULE

Schedule H, Line 4i—Schedule of Assets (Held at End of Year)

December 31, 2008

 

(a)

  

(b)

Identity of issuer, borrower, lessor or

similar party

  

(c)

Description of investment, including
maturity date, rate of interest, collateral,

par or maturity value

   (d)
Cost value
   (e)
Current value

*

   Plan Participants    Participant loans receivable collateralized by participant balances, interest ranging from 4.25 percent to 9.25 percent, terms ranging from 1 to 5 years    —      $ 38,299,179
                 

 

* Indicates an identified person known to be a party-in-interest to the Plan.

 

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SIGNATURE

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, 2009

  By:  

/s/ Natalie Morris

    Natalie Morris
   

Director, Employee Benefits and Human Resources Systems

United Technologies Corporation

 

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EXHIBIT INDEX

(23) Consent of Independent Registered Public Accounting Firm *

 

* Submitted electronically herewith.

 

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