More info, this time from the UTC Q3 2012 SEC Filing that was published yesterday... the portion highlighted below is slightly more negative in tone than it was in the Q2 report.
26 October 2012:
As previously reported, Sikorsky is developing the CH-148 derivative of the H-92 helicopter, a military variant of the S-92 helicopter, for the Canadian government. The CH-148 is being developed under a fixed-price contract that provides for the development and production of 28 helicopters, and related logistical support through March 2028. The current contract value is estimated to be $4.5 billion, and is subject to changes in underlying variables such as future flight hours as well as fluctuations in foreign currency exchange rates. Sikorsky and the Canadian government have a number of open disputes relating to the contract, including responsibility for delay of delivery of the fully configured and tested aircraft beyond the current contract delivery schedule and other disputes relating to development, production and logistical support. Sikorsky is prepared to deliver aircraft in 2012 in a configuration that will require additional hardware and further software testing and upgrades before full mission capability can be achieved. Sikorsky intends to continue discussions with the Canadian government to resolve the open disputes, however, it is increasingly unlikely that the parties will reach a contractual solution that allows for delivery of these aircraft or revenue recognition in 2012. As discussions continue, the inability to achieve a satisfactory contractual solution could lead to a further negative financial impact on the program in the future.