Otis Worldwide Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Otis Worldwide Corp has submitted its 2023 10-K annual report detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Otis Worldwide Corp (OTIS) filed a Annual Report (10-K) with the SEC on February 2, 2024. Otis Worldwide Corp filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. Key financial data points such as revenue, net income, and EPS are expected to be detailed within the report. The company's business address is One Carrier Place, Farmington, CT 06032. Otis Worldwide Corp is incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking Otis Worldwide Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Otis's financial health, operational performance, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess the company's value and future prospects. The detailed financial statements and risk factor disclosures within the report are essential for understanding the company's market position, potential challenges, and compliance with regulatory requirements.

Risk Assessment

Risk Level: medium — Otis Worldwide Corp shows moderate risk based on this filing. The filing is a standard 10-K, which inherently contains detailed financial and operational information, but without specific performance metrics or forward-looking statements highlighted in the header, the immediate risk assessment is moderate.

Analyst Insight

Review the full 10-K filing to analyze Otis Worldwide Corp's detailed financial performance, segment revenues, and identified risk factors for the fiscal year 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (The end date of the reporting period)
• 2024-02-02 — Filing Date (The date the 10-K was filed)
• 001-39221 — SEC File Number (The SEC's file number for Otis Worldwide Corp)

Key Players & Entities

• Otis Worldwide Corp (company) — Filer of the 10-K report
• Farmington, CT (location) — City in the business address
• Delaware (location) — State of incorporation
• 1934 Act (regulation) — SEC Act under which the filing is made

FAQ

Industry Context

Otis Worldwide Corp operates in the building equipment sector, primarily focusing on elevators and escalators.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and management.

What Investors Should Do

1. Analyze the revenue breakdown by segment (e.g., Products, Services) for FY2023.
2. Examine the company's financial statements, including balance sheets, income statements, and cash flow statements.
3. Review the risk factors section for any new or evolving risks impacting Otis Worldwide Corp.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-02: Filing Date — Date Otis Worldwide Corp submitted its 10-K report.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year 2023, following previous filings for earlier periods.

Key Financial Figures

• $0.01 — nge on which registered Common Stock ($0.01 par value) OTIS New York Stock Exchange
• $144 million — ch and development ("R&D") expense wa s $144 million and 1.0% as a percentage of net sales.
• $57 m — in digital and strategic initiatives of $57 million, which in combination with R&D ex

Filing Documents

• otis-20231231.htm (10-K) — 2806KB
• exhibit472023-12x3110xk.htm (EX-4.7) — 236KB
• exhibit10232023-12x3110xk.htm (EX-10.23) — 9KB
• exhibit10362023-12x3110xk.htm (EX-10.36) — 23KB
• exhibit10372023-12x3110xk.htm (EX-10.37) — 69KB
• exhibit10382023-12x3110xk.htm (EX-10.38) — 96KB
• exhibit10392023-12x3110xk.htm (EX-10.39) — 40KB
• exhibit212023-12x3110xk.htm (EX-21) — 28KB
• exhibit222023-12x3110xk.htm (EX-22) — 2KB
• exhibit232023-12x3110xk.htm (EX-23) — 3KB
• exhibit242023-12x3110xk.htm (EX-24) — 44KB
• exhibit3112023-12x3110xk.htm (EX-31.1) — 10KB
• exhibit3122023-12x3110xk.htm (EX-31.2) — 10KB
• exhibit3132023-12x3110xk.htm (EX-31.3) — 11KB
• exhibit322023-12x3110xk.htm (EX-32) — 9KB
• exhibit972023-12x3110xk.htm (EX-97) — 56KB
• image_0a.jpg (GRAPHIC) — 21KB
• image_0b.jpg (GRAPHIC) — 6KB
• image_0c.jpg (GRAPHIC) — 5KB
• image_1a.jpg (GRAPHIC) — 0KB
• image_1b.jpg (GRAPHIC) — 25KB
• image_4.jpg (GRAPHIC) — 9KB
• otis-20231231_g1.jpg (GRAPHIC) — 4KB
• otis-20231231_g2.jpg (GRAPHIC) — 28KB
• 0001781335-24-000013.txt (&nbsp;) — 15894KB
• otis-20231231.xsd (EX-101.SCH) — 84KB
• otis-20231231_cal.xml (EX-101.CAL) — 130KB
• otis-20231231_def.xml (EX-101.DEF) — 484KB
• otis-20231231_lab.xml (EX-101.LAB) — 1132KB
• otis-20231231_pre.xml (EX-101.PRE) — 784KB
• otis-20231231_htm.xml (XML) — 2789KB

Business

Item 1. Business 1 Cautionary Note Concerning Factors That May Affect Future Results 9

Risk Factors

Item 1A. Risk Factors 10

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 21

Cybersecurity

Item 1C. Cybersecurity 21

Properties

Item 2. Properties 23

Legal Proceedings

Item 3. Legal Proceedings 23

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 23 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer of Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer of Purchases of Equity Securities 24

[Reserved]

Item 6. [Reserved] 25

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 44

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 46

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 93

Controls and Procedures

Item 9A. Controls and Procedures 93

Other Information

Item 9B. Other Information 93

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 93 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 93

Executive Compensation

Item 11. Executive Compensation 95

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 95

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 96

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 96 PART IV

Exhibits and Financial Statement Schedule

Item 15. Exhibits and Financial Statement Schedule 97

Form 10-K Summary

Item 16. Form 10-K Summary 101

SIGNATURES

SIGNATURES 102 Table of Contents Otis Worldwide Corporation's and its subsidiaries' names, abbreviations thereof, logos, and product and service designators are all either the registered or unregistered trademarks or tradenames of Otis Worldwide Corporation and its subsidiaries. Names, abbreviations of names, logos, and product and service designators of other companies are either the registered or unregistered trademarks or tradenames of their respective owners. As used herein, the terms "we", "us", "our", "the Company" or "Otis", unless the context otherwise requires, mean Otis Worldwide Corporation and its subsidiaries. References to Internet websites in this Form 10-K are provided for convenience only. Information available through these websites is not incorporated by reference into this Form 10-K. PART I

Business

Item 1. Business Our Company Otis is t he world's leading elevator and escalator manufacturing, installation and service company. We serve customers in ov er 200 countries and territories around t he world. Otis has global scale and local focus, with more than 1,400 branc hes and offices, and a direct physical presence in more than 70 co untries. The following description of our busin ess should be read in conjunction with Item 7 in this Form 10-K, including the information contained therein under the heading "Business Overview." Description of Business by Segment Our Company is organized into two segments, New Equipment and Service, which, for the year ended December 31, 2023, contributed 41% and 59% of our net sales, and 15% and 85% of our s egment operating profit, respectively. Our international operations represented appro ximately 72% of our net sales for the year ended December 31, 2023. New Equipment Through our New Equipment segment, we design, manufacture, sell and install a wide range of passenger and freight elevators, as well as escalators and moving walkways for residential, commercial and infrastructure projects. Our New Equipment customers include real estate and building developers and general contractors who develop and/or design buildings for residential, commercial, retail or mixed-use activity. We also sell New Equipment to government agencies, particularly, to support infrastructure projects, such as airports, railways or metros. We generally sell directly to our customers through our New Equipment sales personnel. Due to the nature of the customer base in China and certain other geographies, our direct sales force is augmented by agents and distributors. Given the breadth of our customer base and the large number of customers to whom we deliver new equipment on an annual basis, we are not dependent on any single customer and do not have any contracts material to Otis as a whole with any single customer. The same is true for our

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View this 10-K filing on SEC EDGAR