FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Plan period ended December 31, 1998 Commission File Number 1-812 UNITED TECHNOLOGIES CORPORATION DEFINED CONTRIBUTION RETIREMENT PLAN UNITED TECHNOLOGIES CORPORATION One Financial Plaza Hartford, Connecticut 06101
FINANCIAL STATEMENTS OF THE UNITED TECHNOLOGIES CORPORATION DEFINED CONTRIBUTION RETIREMENT PLAN REPORT OF INDEPENDENT ACCOUNTANTS To the Participants and Administrator of the United Technologies Corporation Defined Contribution Retirement 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 Defined Contribution Retirement Plan at December 31, 1998 and 1997 and the changes in net assets available for benefits for the period ended December 31, 1998, 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. /s/ PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP Hartford, Connecticut June 28, 1999
UNITED TECHNOLOGIES CORPORATION DEFINED CONTRIBUTION RETIREMENT PLAN Statement of Net Assets Available for Benefits With Fund Information December 31, 1998 Small UTC INVESCO Company International Common Total Income Equity Stock Index Equity Index Global Stock Return Fund Fund Fund Fund Fund Fund Fund Assets: Investments, at fair value: Beneficial interests in Bankers Trust Company Pyramid: Large Capitalization Equity Index Fund $ - $2,873,898 $ - $ - $ 3,244 $ - $ - Russell 2000 Equity Index Fund - - 17,390 - - - - Daily Japanese Equity Index Fund - - - 3,384 - - - Daily Non Japanese Equity Index Fund - - - 12,698 - - - Government/Corporate Fixed Income Index Fund - - - - 2,644 - - Daily International Equity Index Fund - - - - 3,211 - - United Technologies Corporation Common Stock - - - - - 422,428 - Shares of respective registered investment companies - - - - - - 9,088 Investments, at contract value or cost: Beneficial interests in investment contracts, at contract value 4,941,655 - - - - - - Temporary investments, at cost plus accrued interest - - - - - 2,106 - Total Investments 4,941,655 2,873,898 17,390 16,082 9,099 424,534 9,088 Plan receivables 3,865 - - - - 4,742 - Total Assets 4,945,520 2,873,898 17,390 16,082 9,099 429,276 9,088 Liabilities: Accrued expenses - - - - - 1,082 - Total Liabilities - - - - - 1,082 - Net Assets Available for Benefits $4,945,520 $2,873,898 $ 17,390 $ 16,082 $ 9,099 $ 428,194 $ 9,088 Units of participation 73,902 106,205 1,458 1,268 3,170 23,501 290 Unit value $ 66.92 $ 27.06 $ 11.93 $ 12.68 $ 2.87 $ 18.22 $ 31.36 The accompanying notes are an integral part of these financial statements.
UNITED TECHNOLOGIES CORPORATION DEFINED CONTRIBUTION RETIREMENT PLAN Statement of Net Assets Available for Benefits With Fund Information (Continued) December 31, 1998 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. 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 144,462 17,949 88,924 13,376 59,821 27,968 11,297 Investments, at contract value or cost: Beneficial interests in investment contracts, at contract value - - - - - - - Temporary investments, at cost plus accrued interest - - - - - - - Total Investments 144,462 17,949 88,924 13,376 59,821 27,968 11,297 Plan receivables - - - - - - - Total Assets 144,462 17,949 88,924 13,376 59,821 27,968 11,297 Liabilities: Accrued expenses - - - - - - - Total Liabilities - - - - - - - Net Assets Available for Benefits $ 144,462 $ 17,949 $ 88,924 $ 13,376 $ 59,821 $ 27,968 $ 11,297 Units of participation 3,151 875 1,566 585 2,342 473 491 Unit value $ 45.84 $ 20.52 $ 56.79 $ 22.85 $ 25.54 $ 59.14 $ 23.03 The accompanying notes are an integral part of these financial statements.
UNITED TECHNOLOGIES CORPORATION DEFINED CONTRIBUTION RETIREMENT PLAN Statement of Net Assets Available for Benefits With Fund Information (Continued) December 31, 1998 Templeton Templeton Developing Foreign Markets Fund A Trust A Total Assets: Investments, at fair value: Beneficial interests in Bankers Trust Company Pyramid: Large Capitalization Equity Index Fund $ - $ - $ 2,877,142 Russell 2000 Equity Index Fund - - 17,390 Daily Japanese Equity Index Fund - - 3,384 Daily Non Japanese Equity Index Fund - - 12,698 Government/Corporate Fixed Income Index Fund - - 2,644 Daily International Equity Index Fund - - 3,211 United Technologies Corporation Common Stock - - 422,428 Shares of respective registered investment companies 29,140 6,257 408,282 Investments, at contract value or cost: Beneficial interests in investment contracts, at contract value - - 4,941,655 Temporary investments, at cost plus accrued interest - - 2,106 Total Investments 29,140 6,257 8,690,940 Plan receivables - - 8,607 Total Assets 29,140 6,257 8,699,547 Liabilities: Accrued expenses - - 1,082 Total Liabilities - - 1,082 Net Assets Available for Benefits $ 29,140 $ 6,257 $ 8,698,465 Units of participation 3,473 607 Unit value $ 8.39 $ 10.30 The accompanying notes are an integral part of these financial statements.
UNITED TECHNOLOGIES CORPORATION DEFINED CONTRIBUTION RETIREMENT PLAN Statement of Net Assets Available for Benefits With Fund Information December 31, 1997 Small UTC INVESCO Company International Common Total Income Equity Stock Index Equity Index Global Stock Return Fund Fund Fund Fund Fund Fund Fund Assets: Investments, at fair value: Beneficial interests in Bankers Trust Company Pyramid: Large Capitalization Equity Index Fund $ - $2,300,279 $ - $ - $ 3,135 $ - $ - Russell 2000 Equity Index Fund - - 19,401 - - - - Daily Japanese Equity Index Fund - - - 3,871 - - - Daily Non Japanese Equity Index Fund - - - 11,614 - - - Government/Corporate Fixed Income Index Fund - - - - 2,566 - - Daily International Equity Index Fund - - - - 3,009 - - United Technologies Corporation Common Stock - - - - - 278,575 - Shares of respective registered investment companies - - - - - - 7,389 Investments, at contract value or cost: Beneficial interests in investment contracts, at contract value 4,831,402 - - - - - - Temporary investments, at cost plus accrued interest - - - - - 4,183 - Total Investments 4,831,402 2,300,279 19,401 15,485 8,710 282,758 7,389 Plan receivables 8,175 1,731 23 2 50 1,087 5 Total Assets 4,839,577 2,302,010 19,424 15,487 8,760 283,845 7,394 Liabilities: Accrued expenses - - - - - 1,800 - Total Liabilities - - - - - 1,800 - Net Assets Available for Benefits $4,839,577 $2,302,010 $ 19,424 $ 15,487 $ 8,760 $ 282,045 $ 7,394 Units of participation 78,437 109,515 1,605 1,471 3,681 23,348 254 Unit value $ 61.70 $ 21.02 $ 12.10 $ 10.53 $ 2.38 $ 12.08 $ 29.09 The accompanying notes are an integral part of these financial statements.
UNITED TECHNOLOGIES CORPORATION DEFINED CONTRIBUTION RETIREMENT PLAN Statement of Net Assets Available for Benefits With Fund Information (Continued) December 31, 1997 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. 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 127,199 16,760 51,632 18,826 126,959 65,644 10,830 Investments, at contract value or cost: Beneficial interests in investment contracts, at contract value - - - - - - - Temporary investments, at cost plus accrued interest - - - - - - - Total Investments 127,199 16,760 51,632 18,826 126,959 65,644 10,830 Plan receivables 261 65 65 - 117 68 12 Total Assets 127,460 16,825 51,697 18,826 127,076 65,712 10,842 Liabilities: Accrued expenses - - - - - - - Total Liabilities - - - - - - - Net Assets Available for Benefits $ 127,460 $ 16,825 $ 51,697 $ 18,826 $ 127,076 $ 65,712 $ 10,842 Units of participation 3,345 860 1,109 749 5,005 1,338 426 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.
UNITED TECHNOLOGIES CORPORATION DEFINED CONTRIBUTION RETIREMENT PLAN Statement of Net Assets Available for Benefits With Fund Information (Continued) December 31, 1997 Templeton Templeton Developing Foreign Markets Fund A Trust A Total Assets: Investments, at fair value: Beneficial interests in Bankers Trust Company Pyramid: Large Capitalization Equity Index Fund $ - $ - $ 2,303,414 Russell 2000 Equity Index Fund - - 19,401 Daily Japanese Equity Index Fund - - 3,871 Daily Non Japanese Equity Index Fund - - 11,614 Government/Corporate Fixed Income Index Fund - - 2,566 Daily International Equity Index Fund - - 3,009 United Technologies Corporation Common Stock - - 278,575 Shares of respective registered investment companies 32,842 12,530 470,611 Investments, at contract value or cost: Beneficial interests in investment contracts, at contract value - - 4,831,402 Temporary investments, at cost plus accrued interest - - 4,183 Total Investments 32,842 12,530 7,928,646 Plan receivables 12 - 11,673 Total Assets 32,854 12,530 7,940,319 Liabilities: Accrued liabilities - - 1,800 Total Liabilities - - 1,800 Net Assets Available for Benefits $ 32,854 $ 12,530 $ 7,938,519 Units of participation 3,302 968 Unit value $ 9.95 $ 12.94 The accompanying notes are an integral part of these financial statements.
UNITED TECHNOLOGIES CORPORATION DEFINED CONTRIBUTION RETIREMENT PLAN Statement of Changes in Net Assets Available for Benefits With Fund Information Period Ended December 31, 1998 Small UTC INVESCO Company International Common Total Income Equity Stock Index Equity Index Global Stock Return Fund Fund Fund Fund Fund Fund Fund Additions to net assets attributed to: Investment Income: Net appreciation / (depreciation) in fair value of investments $ - $ 658,642 $ (308) $ 2,780 $ 1,673 $ 145,871 $ 630 Interest 399,481 - - - - - - Dividends - - - - - - 452 Total Investment Income 399,481 658,642 (308) 2,780 1,673 145,871 1,082 Contributions: Participants' - - - - - - - Employer's 7,634 368 52 52 - 59 - Total Contributions 7,634 368 52 52 - 59 - Deductions from net assets attributed to: Distributions to participants 380,069 86,446 146 487 1,334 17,260 - Total Deductions 380,069 86,446 146 487 1,334 17,260 - Net increase / (decrease) prior to transfers 27,046 572,564 (402) 2,345 339 128,670 1,082 Inter-fund transfers 78,897 (676) (1,632) (1,750) - 17,479 612 Net increase / (decrease) 105,943 571,888 (2,034) 595 339 146,149 1,694 Net Assets Available for Benefits December 31, 1997 4,839,577 2,302,010 19,424 15,487 8,760 282,045 7,394 Net Assets Available for Benefits December 31, 1998 $4,945,520 $2,873,898 $ 17,390 $ 16,082 $ 9,099 $ 428,194 $ 9,088 The accompanying notes are an integral part of these financial statements.
UNITED TECHNOLOGIES CORPORATION DEFINED CONTRIBUTION RETIREMENT PLAN Statement of Changes in Net Assets Available for Benefits With Fund Information (Continued) Period Ended December 31, 1998 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. Additions to net assets attributed to: Investment Income: Net appreciation / (depreciation) in fair value of investments $ 26,122 $ 901 $ 11,428 $ (742) $ 658 $ 8,886 $ (1,140) Interest - - - - - - - Dividends 7,050 1,652 6,528 1,144 - 910 1,095 Total Investment Income 33,172 2,553 17,956 402 658 9,796 (45) Contributions: Participants' - - - - - - - Employer's 328 189 - - - 190 - Total Contributions 328 189 - - - 190 - Deductions from net assets attributed to: Distributions to participants 13,288 1,405 1,016 6,556 4,398 7,119 - Total Deductions 13,288 1,405 1,016 6,556 4,398 7,119 - Net increase / (decrease) prior to transfers 20,212 1,337 16,940 (6,154) (3,740) 2,867 (45) Inter-fund transfers (3,210) (213) 20,287 704 (63,515) (40,611) 500 Net increase / (decrease) 17,002 1,124 37,227 (5,450) (67,255) (37,744) 455 Net Assets Available for Benefits December 31, 1997 127,460 16,825 51,697 18,826 127,076 65,712 10,842 Net Assets Available for Benefits December 31, 1998 $ 144,462 $ 17,949 $ 88,924 $ 13,376 $ 59,821 $ 27,968 $ 11,297 The accompanying notes are an integral part of these financial statements.
UNITED TECHNOLOGIES CORPORATION DEFINED CONTRIBUTION RETIREMENT PLAN Statement of Changes in Net Assets Available for Benefits With Fund Information (Continued) Period Ended December 31, 1998 Templeton Templeton Developing Foreign Markets Fund A Trust A Total Additions to net assets attributed to: Investment Income: Net appreciation / (depreciation) in fair value of investments $ (4,656) $ (1,772) $ 848,973 Interest - - 399,481 Dividends 3,156 157 22,144 Total Investment Income (1,500) (1,615) 1,270,598 Contributions: Participants' - - - Employer's - - 8,872 Total Contributions - - 8,872 Deductions from net assets attributed to: Distributions to participants - - 519,524 Total Deductions - - 519,524 Net increase / (decrease) prior to transfers (1,500) (1,615) 759,946 Inter-fund transfers (2,214) (4,658) - Net increase / (decrease) (3,714) (6,273) 759,946 Net Assets Available for Benefits December 31, 1997 32,854 12,530 7,938,519 Net Assets Available for Benefits December 31, 1998 $ 29,140 $ 6,257 $ 8,698,465 The accompanying notes are an integral part of these financial statements.
UNITED TECHNOLOGIES CORPORATION DEFINED CONTRIBUTION RETIREMENT PLAN Notes to Financial Statements NOTE 1 - DESCRIPTION OF THE PLAN General. The United Technologies Corporation (UTC) Defined Contribution Retirement Plan (the Plan) is a defined contribution savings and money purchase plan administered by UTC. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Eligible employees of UTC and certain of its subsidiaries may participate after completing one year of service. As described in Note 6, all active Plan participants became participants of the UTC Savings Plan for Hourly Management-Represented Employees in 1998. 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. The employer made contributions for each participant for up to 3.5 percent of the participant's compensation through July of the Plan year. No participant contributions were made during 1998. See Note 6. Participant contributions, plus actual earnings thereon, are fully vested at all times under the Plan. Generally, employer contributions, plus actual earnings thereon, become fully vested after two years of Plan participation. 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, 1998, no forfeitures were used to fund employer contributions. Trustee and Recordkeeper. All of the Plan's assets are held by Bankers Trust Company, the Plan Trustee. Fidelity Institutional Retirement Services Company performs participant account recordkeeping responsibilities. Investment Options. 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. In December of 1997, UTC approved a reverse unit split of the units of participation and the unit value of the Income Fund effective as of January 1, 1998. As a result, the units of participation and the unit value was decreased and increased, respectively, by a factor of ten. All units of participation and unit value amounts presented herein have been restated to reflect the reverse unit split. . 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. . 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 3,884 and 3,826 shares of UTC Common Stock at December 31, 1998 and 1997, respectively. On April 30, 1999, the Board of Directors of UTC declared a 2 for 1 stock split in the form of a stock dividend payable May 17, 1999 to shareowners of record at the close of business on May 7, 1999. The share amounts reflected herein do not reflect the stock split. . The INVESCO Total Return Fund, a registered investment company, 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, a registered investment company, 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, a registered investment company, principally invests in equity securities of companies that pay regular dividends to shareowners. . The Fidelity Contrafund, a registered investment company, 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, a registered investment company, 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, a registered investment company, principally invests in equity securities of companies believed to have an outlook for strong earnings growth. . The Putnam New Opportunities Fund, a registered investment company, principally invests in equity securities of companies in certain emerging industry groups. . The SoGen International Fund, Inc., a registered investment company, invests in U.S. and foreign equity, fixed income and gold-related securities and cash. . The Templeton Foreign Fund A (formerly the Templeton Foreign Fund I), a registered investment company, principally invests in equity securities of companies in developed and developing countries outside the U.S. . The Templeton Developing Markets Trust A (formerly the Templeton Developing Markets Trust I), a registered investment company, principally invests in equity securities of companies in developing countries. Payment of Benefits. Generally, benefits are paid in a lump sum to a terminating participant. A participant 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. There were no distributions in UTC Common Stock for the period ended December 31, 1998. NOTE 2 - SUMMARY OF ACCOUNTING PRINCIPLES Basis of Accounting. The financial statements of the Plan are prepared under the accrual method of accounting, except for benefits which 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, 1998, the Plan's interest in the Master Trust comprised 223,357 units of the 522,172,913 total units of participation, or 0.04%. At December 31, 1997, the Plan's interest in the Master Trust comprised 235,413 units of the total 534,787,672 units of participation, or 0.04%. 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 recordkeeping fees, were paid directly by the employer in 1998. The employer also paid certain investment management fees for the Bankers Trust managed funds. There were no other administrative and investment expenses paid out of Plan assets during 1998. 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 1998 and 1997 were 8.5% and 8.1%, respectively. The following is a summary of the investment contracts held in the Income Fund and the portion allocable to the Plan: December 31, December 31, 1998 1997 CIGNA $ 1,590,214,600 $ 1,456,403,738 Aetna 471,765,293 437,582,101 Travelers 398,145,628 367,508,974 Prudential 252,192,024 231,133,416 Metropolitan Life 1,019,271,695 780,096,192 $ 3,731,589,240 $ 3,272,724,421 Amount of the contracts allocable to the Plan $ 4,941,655 4,831,402 NOTE 4 - FUNDING POLICY The Corporation funds its obligation to the Plan on a monthly basis. At December 31, 1998, the minimum funding requirements under ERISA have been met. NOTE 5 - PLAN TERMINATION Although it has not expressed any intent to do so, UTC has the right under the Plan 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 6 - FROZEN PLAN During 1998, all active Plan participants became participants of the UTC Savings Plan for Hourly Management-Represented Employees. Previously accumulated participant balances will remain in the Plan. No additional contributions will be made to the Plan. Participants will continue to be able to direct or withdraw their remaining investment balances in accordance with Plan provisions. NOTE 7 - TAX STATUS The Internal Revenue Service has determined and informed UTC by letter dated April 22, 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.
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: June 28, 1999 By: /s/ Daniel P. O'Connell Daniel P. O'Connell Corporate Director, Employee Benefits and Human Resources Systems United Technologies Corporation
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 June 28, 1999 appearing in the United Technologies Corporation Defined Contribution Retirement Plan's Annual Report on Form 11-K for the year ended December 31, 1998. /s/ PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP Hartford, Connecticut June 28, 1999