ANNUAL REPORT 2018 MAKING POLITICS OUR BUSINESS ANNUAL REPORT 2018 MAKING POLITICS OUR BUSINESS

TABLE OF CONTENTS

Message from the UTC PAC Chairman, Tim McBride 2 Why UTC PAC? 3 UTC PAC Financial Statement 3 Candidate Selection Criteria 3 UTC PAC Match Program 4 UTC PAC Contributions 2018 5-6 Letter from PAC Director 7 Dear Colleague:

Thanks to the generous support of the members of the UTC PAC. UTC PAC’s mission is to support the election of candidates for federal office who share our views on key policy issues affecting our businesses. Your support is instrumental in helping build and maintain strong relationships with Members of Congress. A myriad of policies and laws affect our company, our employees and our customers, and it is important that we use all of our tools to make our voice heard. Thanks to the relationships we have developed through UTC PAC, we are better advocates for UTC business units on defense, aerospace, energy, environment, tax and trade matters. We are committed to keeping you informed about UTC PAC’s activities and

TIM McBRIDE how we use the resources you have given us. Highlighted in this annual report Senior Vice President, are our legislative accomplishments, status of our PAC Match program and a Global Government list of the candidates we supported in 2018. Relations &

UTC PAC Chairman If you are a contributor to UTC PAC, I would like to sincerely thank you for your support and commitment. If you are not, I invite you to review this report and make an informed decision about joining your colleagues in UTC PAC.

Sincerely,

Tim McBride UTC PAC Chairman

2018 ANNUAL REPORT :: 2 UTC PAC FINANCIAL STATEMENT OPENING BALANCE (1/1/2018 - 12/31/2018) $ 264,271.68 Why UTC PAC?

Income Our federal government makes decisions that directly affect the productivity and profitability of U.S. Contributions from Individuals $ 509,815.25 private enterprise here and around the world. In fact, decisions of policymakers can have a profound Refunds of Contributions to Federal Candidates $ 8,000.00 impact on the future of many companies, including ours.

TOTAL ($ 517,815.25) At UTC, our ability to deliver innovations and technologies for our global customers is also impacted by government policy decisions. We are committed to advocating public policy solutions that are critical to Expenses continuously improving all of our businesses. For this reason, UTC actively participates in the political Contributions to Federal Candidates $ 522,500.00 process and sponsors UTC PAC to ensure that we have a voice in those decisions. Contributions to Federal PACS $ 31,000.00 Contributions to National Party Committees $60,000.00 Political advocacy is as important to the future of our company as our well-executed business strategies, Other Disbursements $ 50,000.00 and we believe it also creates a more informed group of policymakers in the process. In the electoral process, UTC, like all corporations, is prohibited from making direct contributions to federal candidate TOTAL ($ 663,500.00) campaigns. Loans $ 0.00 ENDING BALANCE (12/31/18) $ 118,586.93 HOW WE USE UTC PAC UTC’s diversification leverages a large footprint on many issues that are spread over many congressional districts.

In addition to serving on committees of jurisdiction Below are some of the committees of jurisdiction where UTC focuses its efforts and a brief explanation of UTC PAC also takes into account the following criteria: some of the important issues of relevance to UTC.

:: the candidate’s views and voting records on :: Senate Finance Committee, House Ways & Means Committee issues critical to UTC’s success; – Tax reform is a top issue important to UTC’s competitiveness

:: the presence of UTC facilities in the candidate’s :: Senate and House Armed Services Committee, Senate and House Appropriations Committees district; – With 14% of UTC’s current net sales being military aerospace, these committees are integral to our Washington efforts

:: positions of leadership in Congress; and :: Senate Energy and Natural Resources Committee, House Energy and Commerce Committee

:: the strength of the candidate and the impact that – Energy efficiency legislation is a major market driver for many UTC companies a UTC contribution will have on the race. :: Senate Commerce, Science and Transportation Committee and House Transportation and Infrastructure Committee – These committees have jurisdiction over many of UTC’s commercial aviation and space interests

2018 ANNUAL REPORT :: 3 UTC PAC MATCH PROGRAM

The UTC PAC Match is a great way to support the Corporation while also supporting the charity of your choice. Contributing to the PAC helps ensure that the voice of the company is heard by federal office holders. The match provides assistance to the charity of your choice, assisting our individual communities and helping achieve two objectives simultaneously.

One of the many benefits of supporting UTC PAC is the PAC Match program.PAC Match allows you to match your PAC contribution dollar for dollar to the charity of your choice. This benefit allows us all to support two important ventures with one contribution and the more UTC PAC grows, the more we are able to maximize the PAC Match program in your communities. UTC PAC Match Contributed In 2018, UTC employees contributed $497,467.26 to support over 700 charities $497,467.26 to 700 Charities through the PAC Match Program. Your contribution can be matched to any 501(c)(3) whether it is a place of worship, in 2018 homeless shelter, college or university or a program in your community. It’s your choice, and our way of thanking you for giving to UTC PAC. For more information on the UTC PAC Match program or to select your charity of choice for 2019, simply visit the UTC PAC website (accessed via Employee Self Top Charities Supported Service (ESS)). United Way American Cancer Society American Red Cross Top charities supported St. Jude Children’s Research Hospital Wounded Warrior Project Boy Scouts of America American Heart Association Greater Hartford Legal Aid Society Habitat for Humanity International Alzheimers Disease & Related Disorders Association Leukemia & Lymphoma Society

2018 ANNUAL REPORT :: 4 2018 UTC PAC Contributions — OVERALL CONTRIBUTIONS

CANDIDATE AMOUNT CANDIDATE AMOUNT CANDIDATE AMOUNT CANDIDATE AMOUNT $4,000.00 James Clybum $1,500.00 $3,000.00 Amy Klobuchar $4,000.00 Rick Allen $1,000.00 Thomas Cole $4,000.00 $1,500.00 Steve Knight $2,000.00 Donald Bacon $1,500.00 Christopher Collins $1,000.00 $5,000.00 Ann Kuster $2,000.00 James Banks $1,500.00 Doug Collins $2,000.00 Samuel Graves $4,500.00 $4,000.00 $3,000.00 Barbara Comstock $5,000.00 Tom Graves $4,000.00 Darin LaHood $5,500.00 Michael Bishop $2,500.00 Kevin Cramer $1,000.00 Karen Handel $1,000.00 $3,500.00 $5,000.00 Joseph Crowley $3,000.00 $1,000.00 Jim Langevin $2,500.00 Rod Blum $1,000.00 $1,000.00 Martin Heinrich $2,500.00 $3,500.00 $1,000.00 John Culberson $2,500.00 Heidi Heitkamp $4,000.00 John Larson $6,500.00 $5,000.00 Carlos Curbelo $3,500.00 Dean Heller $6,500.00 $2,500.00 Susan Brooks $1,000.00 $2,500.00 $2,000.00 $1,000.00 Anthony Brown $1,500.00 Rodney Davis $2,500.00 $6,500.00 Jason Lewis $1,500.00 Sherrod Brown $4,000.00 Peter DeFazio $1,500.00 Mazie Hirono $2,000.00 David Loebsack $2,500.00 $5,500.00 Rosa DeLauro $7,500.00 George Holding $4,500.00 $2,500.00 $5,000.00 $1,000.00 $5,000.00 $1,000.00 G.K. Butterfield $1,000.00 Jeff Denham $2,500.00 Richard Hudson $3,000.00 Mia Love $2,500.00 Bradley Byrne $3,500.00 Mario Diaz-Balart $7,500.00 Randy Hultgren $2,000.00 $2,000.00 $2,000.00 $1,000.00 Cindy Hyde-Smith $2,000.00 Ben Lujan $1,500.00 $1,000.00 $2,000.00 Jim Inhofe $1,500.00 Joe Manchin $3,000.00 Benjamin Cardin $4,000.00 $1,000.00 E.B. Johnson $2,000.00 $2,500.00 Thomas Carper $5,000.00 Dianne Feinstein $1,500.00 Mike Johnson $1,000.00 $2,000.00 $1,000.00 A. Drew Ferguson $3,000.00 Dave Joyce $1,500.00 Kevin McCarthy $3,500.00 John Carter $1,500.00 Deb Fischer $4,000.00 Tim Kaine $3,500.00 Claire McCaskill $3,500.00 $1,000.00 $4,000.00 Mike Kelly $1,000.00 Michael McCaul $3,500.00 Bob Casey $4,000.00 Bill Flores $2,000.00 Joseph Kennedy $3,000.00 Betty McCollum $3,000.00 $1,000.00 $2,000.00 $4,000.00 A. Donald McEachin $1,500.00 Joaquin Castro $1,000.00 $3,000.00 $1,000.00 Patrick McHenry $5,500.00 Elizabeth Cheney $3,000.00 $2,500.00 Angus King $2,000.00 David McKinley $1,500.00 $3,000.00 Michael Gallagher $1,500.00 $5,000.00 Cathy McMorris Rodgers $5,500.00

2018 ANNUAL REPORT :: 5 CANDIDATE AMOUNT CANDIDATE AMOUNT CANDIDATE AMOUNT LEADERSHIP PAC AMOUNT $2,000.00 Paul Ryan $2,500.00 $2,500.00 ALAMO PAC $1,000.00 Robert Menendez $2,500.00 Linda Sanchez $2,500.00 $1,000.00 American Action Network $50,000.00 $3,000.00 Steve Scallise $3,000.00 Peter Visclosky $5,500.00 Bluegrass Committee $2,500.00 BUDDY PAC $2,500.00 Chris Murphy $1,500.00 $2,500.00 Greg Walden $1,500.00 Democratic Congressional $15,000.00 $1,000.00 Bradley Schneider $1,000.00 Mark Walker $2,000.00 Campaign Committee $1,000.00 $2,500.00 $2,500.00 Democratic Senatorial Campaign $15,000.00 Committee $10,000.00 Austin Scott $2,500.00 Mimi Walters $2,000.00 Green Mountain PAC $1,000.00 $5,000.00 Rick Scott $5,000.00 $3,500.00 IMPACT $5,000.00 Pete Olson $2,000.00 Tim Scott $1,500.00 $1,000.00 Jobs, Opportunity, and New Ideas $2,500.00 $2,500.00 Jose Serrano $2,000.00 Roger Wicker $5,000.00 PAC (JONI PAC) Narragansett Bay PAC $2,500.00 $3,500.00 $1,000.00 $1,000.00 National Republican Congressional $15,000.00 Erik Paulsen $3,000.00 $1,000.00 Joe Wilson $2,000.00 Committee $5,000.00 John Shimkus $3,000.00 Robert Wittman $2,500.00 National Republican Sentorial $15,000.00 Committee Scott Peters $4,000.00 $5,000.00 Rob Woodall $500.00 NUTMEG PAC $1,500.00 $3,000.00 Adrian Smith $2,500.00 $2,000.00 One Georgia PAC $2,500.00 Bruce Poliquin $2,000.00 $2,500.00 Kevin Yoder $2,000.00 Pelican PAC $2,500.00 Michael Quigley $1,000.00 Tina Smith $2,000.00 David Young $3,500.00 PORT PAC $5,000.00 Jack Reed $1,500.00 Debbie Stabenow $5,000.00 TOTAL $522,500.00 Project West PAC $1,000.00 Together Holding Our Majority $2,500.00 $4,000.00 $1,500.00 (THOM PAC) $2,000.00 Thomas Suozzi $2,000.00 TOTAL $141,000.00 $1,000.00 $2,000.00 Cedric Richmond $3,000.00 $2,000.00 Martha Roby $6,500.00 Mike Thompson $2,500.00 $2,500.00 Mac Thornberry $6,000.00 Mike Rogers $4,000.00 Scott Tipton $2,000.00 Peter Roskam $4,000.00 $1,000.00 $2,000.00 $1,000.00 Steve Russell $1,500.00 Michael Turner $4,000.00 John Rutherford $3,000.00 Frederick Upton $5,000.00

2018 ANNUAL REPORT :: 6 LETTER FROM THE F E D E R A L C O N T R I B U T I O N L I M I T S UTC PAC may contribute up to a maximum of:

:: $5,000 per election to a federal candidate’s campaign PAC DIRECTOR committee. That means $5,000 may be given for the candidate’s primary and $5,000 for the general for a total of Each year UTC PAC releases an annual report to make sure that all PAC eligible employees at United $10,000 per election cycle.

Technologies have access to the activities of UTC PAC. Transparency is a vital part of UTC PAC’s :: $15,000 per calendar year to a national party committee, mission as UTC PAC is only possible with the voluntary contributions that individuals like you provide. such as the Democratic and Republican national, senatorial

and congressional campaign committees. UTC PAC’s mission is to ensure that candidates who understand our company and the issues we face in our many industries are elected to office. UTC PAC is an important tool in our efforts as :: $5,000 per year to an incumbent’s leadership PAC a company in Washington DC. A strong and robust UTC PAC is imperative to ensure that UTC is Leadership PACs may be sponsored by Members of represented to the fullest. Congress to support other candidates from their political party in order to position themselves for future leadership Thank you for taking the time to read this years’ annual report. I hope you found it informative and spots or committee chairmanships. These are separate from helpful. To learn more about UTC PAC and other useful information about voting and elections, a Member’s campaign committee. please visit the UTC PAC website accessible through Employee Self Service (ESS). Once logged in, the link to the UTC PAC website can be found under the “employee giving” tab.

Krister Holladay, PAC Director, Government Relations United Technologies Coporation 202-336-7424 [email protected]

Contributions to UTC PAC are not deductible for federal income tax purposes. Contributions to UTC PAC are completely voluntary. You may choose not to contribute without reprisal. Contributions to UTC PAC are used for political purposes.

2018 ANNUAL REPORT :: 7