Otis Worldwide Corp
For the period ended Jun 30, 2024. Filed Jul 25, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 25, 2024
OTIS$78.96-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-25.
0001781335-24-000022
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-25.
0001781335-24-000039
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 121 previous paragraphs and 125 current paragraphs.
68 unchanged; 43 reworded; 10 added; 10 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 27 previous and 29 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
UpLift costs incurred in thequarters and six months ended June 30, 2024 and 2023 are as follows:
Current report
Total UpLift costs incurred to date are $75 million, including $32 million of restructuring costs and $43 million of transformation costs.
Current report
Gross margin percentage increased 90 and 50 basis points for the quarter and six months ended June 30, 2024, respectively, when compared to the same periods in 2023, due to Service sales growing faster than New Equipment sales, the benefits from productivity and lower commodity prices, partially offset by the inflationary pressures described above.
Current report
Selling, general and administrative expenses decreased $(30) million and $(23) million for the quarter and six months ended June 30, 2024, respectively, when compared to the same periods in 2023, driven by savings resulting from UpLift, cost containment actions, favorable foreign exchange impacts, and lower credit loss reserves. Selling, general and administrative expenses was also impacted by lower restructuring costs for the quarter and higher restructuring costs for the six months ended June 30, 2024, when compared to the same periods in 2023.
Current report
The decrease in the effective tax rate for the quarter and six months ended June 30, 2024, is primarily due to the reduction in a deferred tax liability related to the mitigation of future repatriation costs and the release of a non-U.S. tax reserve recorded in the quarter ended June 30, 2024.
Current report
The organic sales decrease of (9.4)% was primarily driven by a double digit decline in China and low single-digit decline in EMEA, partially offset by approximately 10% organic sales growth in Asia Pacific and low single-digit organic sales growth in Americas.
Current report
New Equipment operating profit decreased $(9) million including foreign exchange headwinds of $(3) million. The impacts of lower volume and unfavorable regional mix were partially offset by productivity and commodity tailwinds. Operating margin increased 30 basis points.
Current report
Six Months Ended June 30, 2024
Current report
Six Months Ended June 30, 2024
Current report
For additional discussion of the litigation-related settlement costs, see Note 17 to the Condensed Consolidated Financial Statements.
Removed paragraphs (10)
Previous report
UpLift costs incurred are as follows:
Previous report
Environmental, Social and Governance ("ESG")
Previous report
There have been no, and we do not expect there to be in the near term, material impacts on our business, financial condition or results of operations as a result of compliance with legislation or regulatory rules regarding climate change, from the known physical effects of climate change or as a result of implementing our ESG initiatives. Increased regulation (including SEC and European Union requirements) and other climate change concerns, however, could subject us to additional costs and restrictions, and we are not able to predict how such regulations or concerns would affect our business, operations or financial results.
Previous report
Gross margin percentage remained relatively flat for the quarter ended March 31, 2024, when compared to the same period for 2023.
Previous report
Selling, general and administrative expenses increased $7 million for the quarter ended March 31, 2024, when compared to the same period for 2023, driven by higher restructuring costs and annual wage increases, partially offset by lower costs resulting from UpLift and favorable foreign exchange impacts.
Previous report
The decrease in the effective tax rate for the quarter ended March 31, 2024 is primarily the result of the tax impact of a reduction of our contractual indemnity obligation payable to RTX that resulted from the TMA and the excess tax benefit associated with stock option exercises in the quarter.
Previous report
Net sales
Previous report
Operating profit
Previous report
Net sales
Previous report
Operating profit
Reworded paragraphs (43)
Previous wording
For discussion of Otis’ ESG goals, see the discussion under “Environmental, Social and Governance (“ESG”)” in Item 1 in our 2023 Form 10-K.
Current wording
For discussion of Otis’ ESG goals and risks associated therewith, see the discussion under “Environmental, Social and Governance (“ESG”)” in Item 1 and under Item 1A. "Risk Factors"in our 2023 Form 10-K.
Previous wording
Announced in July 2023, UpLift is a program with the goal of transforming our operating model. UpLift will include the standardization of our processes and improvement of our supply chain procurement, among other aspects of the program, as well as restructuring actions. We expect UpLift to generate approximately $150 million in annual savings by mid-year 2025, with restructuring and other incremental costs to complete the transformation ("UpLift transformation costs") over that period of approximately the same amount.
Current wording
Announced in July 2023, UpLift is a program with the goal of transforming our operating model. UpLift will include the standardization of our processes and improvement of our supply chain procurement, among other aspects of the program, as well as restructuring actions. We expect UpLift to generate approximately $175 million in annual savings by mid-year 2025, with restructuring and other incremental costs to complete the transformation ("UpLift transformation costs") over that period of approximately the same amount.
Previous wording
UpLift transformation costs of $28 million have been incurred since the beginning of the program. These costs are primarily consulting and incremental personnel costs, and are recorded in Other income (expense), net in the Condensed Consolidated Statements of Operations.
Current wording
UpLift restructuring costs are primarily severance costs, and are recorded primarily in Selling, general and administrative in the Condensed Consolidated Statements of Operations. UpLift transformation costs are primarily consulting and incremental personnel costs, and are recorded in Other income (expense), net in the Condensed Consolidated Statements of Operations.
Previous wording
UpLift restructuring action costs of $26 million have been incurred since the beginning of the program, primarily during the fourth quarter of 2023. UpLift restructuring action costs are primarily severance costs, and are recorded in Selling, general and administrative in the Condensed Consolidated Statements of Operations. For further details, refer to the discussion on restructuring costs in the "Results of Operations," as well as Note 12 to the Condensed Consolidated Financial Statements.
Current wording
For further details, refer to the discussion on restructuring costs in the "Results of Operations," as well as Note 12 to the Condensed Consolidated Financial Statements.
Previous wording
Global macroeconomic developments have impacted, and continue to impact, aspects of the Company's operations and overall financial performance during the quarters ended March 31, 2024 and 2023. These macroeconomic developments include, among others, inflationary pressures, higher interest rates and tighter credit conditions. These macroeconomic trends could continue to impact our business, including impacts to overall financial performance during the remainder of 2024, as a result of the following, among other things:
Current wording
Global macroeconomic developments have impacted, and continue to impact, aspects of the Company's operations and overall financial performance during the quarters and six months ended June 30, 2024 and 2023. These macroeconomic developments include, among others, inflationary pressures, higher interest rates and tighter credit conditions. These macroeconomic trends could continue to impact our business, including impacts to overall financial performance during the remainder of 2024, as a result of the following, among other things:
Previous wording
To the extent possible, we continue to operate our business in Ukraine, which represented less than 1% of our revenue and operating profit for the quarter ended March 31, 2024 and year ended December 31, 2023.
Current wording
To the extent possible, we continue to operate our business in Ukraine, which represented less than 1% of our revenue and operating profit for the six months ended June 30, 2024 and year ended December 31, 2023.
Previous wording
We cannot predict how the events described above will evolve. If the events continue for a significant period of time or expand to other countries, and depending on the ultimate outcomes of these conflicts, which remain uncertain, they could heighten certain risks disclosed in Item 1A "Risk Factors" in our 2023 Form 10-K, including but not limited to, adverse effects on macroeconomic conditions, including increased inflation, constraints on the availability of commodities, supply chain disruption and decreased business spending; cyber-incidents; disruptions to our or our business partners’ global technology infrastructure, including through cyber-attack or cyber-intrusion; adverse changes in international trade policies and relations; claims, litigation and regulatory enforcement; our ability to implement and execute our business strategy; terrorist activities; our exposure to foreign currency fluctuations; reputational risk; and constraints, volatility, or disruption in the capital markets, any of which could have a material adverse effect on our business, results of operations, cash flows and financial condition.
Current wording
We cannot predict how the events described above will evolve. Depending on the ultimate outcomes of these conflicts, which remain uncertain, they could heighten certain risks disclosed in Item 1A "Risk Factors" in our 2023 Form 10-K, including but not limited to, adverse effects on macroeconomic conditions, including increased inflation, constraints on the availability of commodities, supply chain disruption and decreased business spending; cyber-incidents; disruptions to our or our business partners’ global technology infrastructure, including through cyber-attack or cyber-intrusion; adverse changes in international trade policies and relations; claims, litigation and regulatory enforcement; our ability to implement and execute our business strategy; terrorist activities; our exposure to foreign currency fluctuations; reputational risk; and constraints, volatility, or disruption in the capital markets, any of which could have a material adverse effect on our business, results of operations, cash flows and financial condition.
Previous wording
The factors contributing to the total percentage change year-over-year in total Net sales for the quarter ended March 31, 2024 are as follows:
Current wording
The factors contributing to the total percentage change year-over-year in total Net sales for the quarter and six months ended June 30, 2024 are as follows:
Previous wording
The Organic volume increase of 3.8% for the quarter ended March 31, 2024 was driven by an increase in organic sales of 6.5% in Service, partially offset by a decrease of (0.5)% in New Equipment organic sales.
Current wording
The Organic volume decrease of (1.2)% for the quarter ended June 30, 2024 was driven by a decrease of (9.4)% in New Equipment, partially offset by an increase of 5.1% in Service. The Organic volume increase of 1.2% for the six months ended June 30, 2024 was driven by an increase of 5.8% in Service, partially offset by a decrease of (5.4)% in New Equipment.
Previous wording
The factors contributing to the percentage change year-over-year for the quarter ended March 31, 2024 in total cost of products and services sold are as follows:
Current wording
The factors contributing to the percentage change year-over-year for the quarter and six months ended June 30, 2024 in total cost of products and services sold are as follows:
Previous wording
The organic increasein Total cost of products and services sold for the quarter ended March 31, 2024 was primarily driven by the organic sales increases noted above. Inflationary pressures, including annual wage increases, were mitigated by productivity and lower commodity prices, primarily steel.
Current wording
The organic decreasein total cost of products and services sold for the quarter and six months ended June 30, 2024 was primarily driven by the organic sales changes noted above. Productivity and lower commodity prices, primarily steel were partially offset by inflationary pressures, including annual wage increases.
Previous wording
Research and development was relatively flat for the quarter ended March 31, 2024, when compared to the same period for 2023.
Current wording
Research and development was relatively flat for the quarter and six months ended June 30, 2024, when compared to the same periods in 2023.
Previous wording
Selling, general and administrative expenses as a percentage of Net sales decreased (20) basis points for the quarter ended March 31, 2024, compared to the same period in 2023.
Current wording
Selling, general and administrative expenses as a percentage of Net sales decreased (40) basis points and (30) basis points for the quarter and six months ended June 30, 2024, respectively, when compared to the same periods in 2023.
Previous wording
There were $1 million of UpLift restructuring action costs for the quarter ended March 31, 2024. We also incurred $12 million of UpLift transformation costs in the quarter ended March 31, 2024, primarily consulting and incremental personnel costs, which are recorded in Other income (expense), net in the Condensed Consolidated Statements of Operations.
Current wording
There were $7 million of UpLift restructuring costs for the six months ended June 30, 2024. We also incurred $27 million of UpLift transformation costs in the six months ended June 30, 2024, primarily consulting and incremental personnel costs, which are recorded in Other income (expense), net in the Condensed Consolidated Statements of Operations.
Previous wording
Other restructuring action costs were $19 million for the quarter ended March 31, 2024 and included $9 million of costs related to 2024 actions and $10 million of costs related to 2023 actions.
Current wording
Other restructuring costs were $24 million for the six months ended June 30, 2024 and included $12 million of costs related to 2024 actions and $12 million of costs related to 2023 actions.
Previous wording
Most of the expected charges will require cash payments, which we have funded and expect to continue to fund with cash generated from operations. The table below presents approximate cash outflows related to the restructuring actions during the quarter ended March 31, 2024, and the expected cash payments to complete the actions announced:
Current wording
Most of the expected charges will require cash payments, which we have funded and expect to continue to fund with cash generated from operations. The table below presents approximate cash outflows related to the restructuring actions during the six months ended June 30, 2024, and the expected cash payments to complete the actions announced:
Previous wording
The approved UpLift restructuring actions are expected to generate approximately $50 million in annual recurring savings by 2025, primarily in Selling, general and administrative expenses, and of which approximately $8 million was realized during the quarter ended March 31, 2024.
Current wording
The approved UpLift restructuring actions are expected to generate approximately $58 million in annual recurring savings by 2025, primarily in Selling, general and administrative expenses, and of which approximately $16 million was realized during the six months ended June 30, 2024.
Previous wording
For other restructuring actions, we generally expect to achieve annual recurring savings within the two-year period subsequent to initiating the actions, including $10 million for the 2024 actions and $42 million for the 2023 actions, of which approximately $11 million was realized for the 2024 and 2023 actions during the quarter ended March 31, 2024.
Current wording
For other restructuring actions, we generally expect to achieve annual recurring savings within the two-year period subsequent to initiating the actions, including $12 million for the 2024 actions and $43 million for the 2023 actions, split evenly in Cost of Products and Services Sold and in Selling, general and administrative expenses. Approximately $20 million of savings was realized for the 2024 and 2023 actions during the six months ended June 30, 2024.
Previous wording
The change in Other Income (Expense), Net, of $7 million for the quarter ended March 31, 2024, compared to the same period in 2023, was primarily driven by the reduction of our contractual indemnity obligation payable to RTX that resulted from the TMA and other reserve adjustments, partially offset by UpLift transformation costs of $12 million and unfavorable foreign currency mark-to-market adjustments in the quarter ended March 31, 2024.
Current wording
The changes in Other income (expense), net, of $(33) million and $(26) million for the quarter and six months ended June 30, 2024, respectively, compared to the same periods in 2023, were primarily driven by UpLift transformation costs of $15 million and $27 million, respectively, $18 million of non-recurring litigation-related settlement costs and foreign currency mark-to-market adjustments. The six months ended June 30, 2024 was also impacted by other reserve adjustments and the reduction of our indemnity payable to RTX that resulted from the TMA, when compared to the same period in 2023.
Previous wording
Interest expense (income), net increased $11 million for thequarter ended March 31, 2024, compared to the same period in 2023, primarily driven by higher interest expense related to the $750 million unsecured, unsubordinated debt issued in August 2023.
Current wording
Interest expense (income), net decrease of $(10) million and increase of $1 million for the quarter and six months ended June 30, 2024, respectively, compared to the same periods in 2023, were primarily driven by interest reserve adjustments related to non-recurring tax items, offset by higher interest expense related to the $750 million unsecured, unsubordinated debt issued in August 2023.
Previous wording
The average interest rate on our long-term debt for thequarters ended March 31, 2024 and 2023, was 2.5% and 2.0%, respectively. For additional discussion of borrowings, see Note 7 to the Condensed Consolidated Financial Statements.
Current wording
The average interest rate on our long-term debt for the quarters and six months ended June 30, 2024 and 2023, was 2.5% and 2.0%, respectively. For additional discussion of borrowings, see Note 7 to the Condensed Consolidated Financial Statements.
Previous wording
Noncontrolling interest in subsidiaries' earnings were relatively flat for the quarter ended March 31, 2024, compared to the same period in 2023. Ownership interest in the underlying non-wholly owned subsidiaries has remained generally consistent year-over-year.
Current wording
Noncontrolling interest in subsidiaries' earnings were relatively flat for the quarter and six months ended June 30, 2024, compared to the same periods in 2023. Ownership interest in the underlying non-wholly owned subsidiaries has remained generally consistent year-over-year. For a discussion of our acquisition of the noncontrolling shares of our subsidiary in Japan during the second quarter of 2024, see Note 1 to the Condensed Consolidated Financial Statements.
Previous wording
Net income attributable to Otis Worldwide Corporation increased for thequarter ended March 31, 2024, compared to the same period in 2023, due to higher operating profit (including the impact of foreign exchange rates) and a lower effective tax rate, partially offset by higher interest expense.
Current wording
Net income attributable to Otis Worldwide Corporation increased for the quarter ended June 30, 2024, compared to the same period in 2023, due to a lower effective tax rate and lower interest expense, partially offset by lower operating profit (including the impact of foreign exchange rates).
Previous wording
Summary performance for New Equipment for the quarters ended March 31, 2024 and 2023 was as follows:
Current wording
Summary performance for New Equipment for the quarters and six months ended June 30, 2024 and 2023 was as follows:
Previous wording
Summary analysis of the Net sales change for New Equipment for the quarter ended March 31, 2024 compared with the quarter ended March 31, 2023 was as follows:
Current wording
Summary analysis of the Net sales change for New Equipment for the quarter and six months ended June 30, 2024 compared with the quarter and six months ended June 30, 2023 was as follows:
Previous wording
The organic sales decrease of (0.5)% was driven by a decline in China, partially offset by mid-teens organic sales growth in Americas and low single-digit organic sales growth in EMEA and Asia Pacific.
Current wording
The organic sales decrease of (5.4)% was driven by a double digit decline in China, partially offset by high single-digit organic sales growth in Americas and mid single-digit organic sales growth in Asia Pacific.
Previous wording
New Equipment operating profit increased $2 million including foreign exchange headwinds of $(4) million. Favorable price, productivity and commodity tailwinds more than offset lower volume and regional mix headwinds. Operating margin increased 20 basis points.
Current wording
New Equipment operating profit decreased $(7) million including foreign exchange headwinds of $(7) million. Favorable price, productivity and commodity tailwinds were offset by the impacts of lower volume and unfavorable regional mix. Operating margin increased 20 basis points.
Previous wording
Summary performance for Service for thequarters ended March 31, 2024 and 2023 was as follows:
Current wording
Summary performance for Service for thequarters and six months ended June 30, 2024 and 2023 was as follows:
Previous wording
Summary analysis of Service Net sales change for the quarter ended March 31, 2024 compared with the quarter ended March 31, 2023 was as follows:
Current wording
Summary analysis of Service Net sales change for the quarter and six months ended June 30, 2024 compared with the quarter and six months ended June 30, 2023 was as follows:
Previous wording
The organic sales increase of 6.5% is due to organic sales increases in maintenance and repair of 5.8% and in modernization of 9.7%.
Current wording
The organic sales increase of 5.1% is due to organic sales increases in maintenance and repair of 4.9% and in modernization of 5.8%.
Previous wording
Service operating profit increased $44 million including foreign exchange headwinds of ($3) million. Higher volume, improved pricing on maintenance contracts and productivity were partially offset by inflationary pressures including annual wage increases. Operating margin increased 70 basis points.
Current wording
Service operating profit increased $39 million including foreign exchange headwinds of ($12) million. Higher volume, improved pricing on maintenance contracts and productivity were partially offset by inflationary pressures, including annual wage increases. Operating margin increased 110 basis points.
Previous wording
General corporate expenses and other for thequarter ended March 31, 2024 increased $3 million, compared to the same period in 2023, primarily due to the impact of foreign currency mark-to-market adjustments. UpLift and costs related to the program began in the third quarter of 2023. Additionally, higher other restructuring action costs were mostly offset by the reduction of our contractual indemnity obligation payable to RTX that resulted from the TMA.
Current wording
General corporate expenses and other for thequarter and six months ended June 30, 2024 increased $7 million and $10 million, respectively, compared to the same quarters in 2023, primarily due to the impact of foreign currency mark-to-market adjustments. UpLift and costs related to the program began in the third quarter of 2023. Additionally, other restructuring costs and litigation-related settlement costs were partially offset by the reduction of our indemnity payable to RTX that resulted from the TMA.
Previous wording
As of March 31, 2024, we had cash and cash equivalents of approximately $900 million, of which approximately 95% was held by the Company's foreign subsidiaries. We manage our worldwide cash requirements by reviewing available funds among the many subsidiaries through which we conduct our business and the cost-effectiveness with which those funds can be accessed. On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions and divestitures or other legal obligations. As of March 31, 2024 and December 31, 2023, the amount of such restricted cash was approximately $3 million and $6 million, respectively.
Current wording
As of June 30, 2024, we had cash and cash equivalents of $942 million, of which approximately 96% was held by the Company's foreign subsidiaries. We manage our worldwide cash requirements by reviewing available funds among the many subsidiaries through which we conduct our business and the cost-effectiveness with which those funds can be accessed. On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions and divestitures or other legal obligations. As of June 30, 2024 and December 31, 2023, the amount of such restricted cash was approximately $9 million and $6 million, respectively.
Previous wording
There was no commercial paper outstanding as of March 31, 2024. For additional discussion of borrowings, see Note 7 to the Condensed Consolidated Financial Statements.
Current wording
There was $320 million of commercial paper outstanding as of June 30, 2024. For additional discussion of borrowings, see Note 7 to the Condensed Consolidated Financial Statements.
Previous wording
On December 1, 2022, our Board of Directors approved a share repurchase program for up to $2.0 billion of Common Stock, of which approximately $900 million was remaining as of March 31, 2024. Under this program, shares may be purchased on the open market, in privately negotiated transactions, under accelerated share repurchase programs or under plans complying with rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.
Current wording
On December 1, 2022, our Board of Directors approved a share repurchase program for up to $2.0 billion of Common Stock, of which approximately $600 million was remaining as of June 30, 2024. Under this program, shares may be purchased on the open market, in privately negotiated transactions, under accelerated share repurchase programs or under plans complying with rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.
Previous wording
The year-over-year decrease in net cash provided by operating activities was primarily driven by working capital balances during the periods, including an increase in Accounts receivables, net in the quarter ended March 31, 2024 compared to a decrease the same period in 2023, due to the timing of billings.
Current wording
The year-over-year decrease in net cash provided by operating activities was primarily driven by working capital balances during the periods, including a decrease in Accounts payable in the six months ended June 30, 2024 compared to an increase the same period in 2023 due to the timing of payments to suppliers, as well as the timing of income tax payments and the related income tax expense in the six months ended June 30, 2024 compared to the same period in 2023. Additionally, Separation-related and UpLift-related net payments were approximately $49 million and $35 million, respectively, in the six months ended June 30, 2024, compared to Separation-related payments of approximately $25 million in the same period in 2023.
Previous wording
During the quarter ended March 31, 2024, net cash provided by operating activities was $171 million. The primary drivers of the inflow related to $374 million of net income and changes in Contract assets and liabilities, net, due to the timing of billings on contracts compared to the progression on current contracts. These were partially offset by a decrease in Accounts payable due to the timing of payments to suppliers, an increase in Accounts receivable, net, due to the timing of billings, and a decrease in Accrued liabilities due to the timing of payments, including employee-related benefits, interest and income taxes.
Current wording
During the six months ended June 30, 2024, net cash provided by operating activities was $479 million. The primary drivers of the inflow related to $824 million of net income and changes in Contract assets and liabilities, net, due to the timing of billings on contracts compared to the progression on current contracts. These were partially offset by an increase in Accounts receivable, net, due to the timing of billings and collections, a decrease in Accrued liabilities and an increase in Other current assets due to the timing of payments, including employee-related benefits, income taxes and supplier payments.
Previous wording
During the quarter ended March 31, 2023, net cash provided by operating activities was $278 million. The primary drivers of the inflow related to $352 million of net income and changes in Contract assets and liabilities, net, due to the timing of billings on contracts compared to the progression on current contracts. These were partially offset by a decrease in Accounts payable due to the timing of payments to suppliers and a decrease in Accrued liabilities due to the timing of payments, including employee-related benefits and interest.
Current wording
During the six months ended June 30, 2023, net cash provided by operating activities was $724 million. The primary drivers of the inflow related to $759 million of net income and changes in Contract assets and liabilities, net, due to the timing of billings on contracts compared to the progression on current contracts. These were partially offset by an increase in Accounts receivable, net, due to the timing of billings.
Previous wording
During the quarter ended March 31, 2024, net cash used in investing activities was $79 million. The primary drivers of the outflow related to $31 million of capital expenditures, $30 million of acquisitions of businesses and intangible assets and $21 million of net cash payments from the settlement of derivative instruments.
Current wording
During the six months ended June 30, 2024, net cash used in investing activities was $97 million. The primary drivers of the outflow related to $55 million of capital expenditures, $40 million of acquisitions of businesses and intangible assets and $4 million of net cash payments from the settlement of derivative instruments.
Previous wording
During the quarter ended March 31, 2023, net cash used in investing activities was $21 million. The primary drivers of the outflow were $25 million of capital expenditures and $16 million of acquisitions of businesses and intangible assets, partially offset by $17 million of net cash receipts from the settlement of derivative instruments.
Current wording
During the six months ended June 30, 2023, net cash used in investing activities was $91 million. The primary drivers of the outflow were $62 million of capital expenditures, $20 million of acquisitions of businesses and intangible assets and $13 million of net cash payments from the settlement of derivative instruments.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Net income attributable to Otis Worldwide Corporation increased for the six months ended June 30, 2024, compared to the same period in 2023, due to higher operating profit (including the impact of foreign exchange rates) and lower effective tax rate.
Current report — wording carried from elsewhere
Summary performance for our operating segments, reconciled to total operating profit, for the six months ended June 30, 2024 and 2023 was as follows:
Current report — wording carried from elsewhere
The organic sales increase of 5.8% is due to organic sales increases in maintenance and repair of 5.4% and in modernization of 7.7%.
Current report — wording carried from elsewhere
Service operating profit increased $83 million including foreign exchange headwinds of ($15) million. Higher volume, improved pricing on maintenance contracts and productivity were partially offset by inflationary pressures, including annual wage increases. Operating margin increased 100 basis points.