EX-12 2 a2014-03x3110xqexhibit12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 2014-03-31 10-Q Exhibit 12


Exhibit 12
UNITED TECHNOLOGIES CORPORATION
AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
 
 
Quarter Ended March 31,
(Dollars in millions)
 
2014
 
2013
Fixed Charges:
 
 
 
 
Interest expense 1 
 
$
243

 
$
256

Interest capitalized
 
6

 
6

One-third of rents 2 
 
38

 
37

Total fixed charges
 
$
287

 
$
299

Earnings:
 
 
 
 
Income from continuing operations before income taxes
 
$
1,873

 
$
1,770

Fixed charges per above
 
287

 
299

Less: capitalized interest
 
(6
)
 
(6
)
 
 
281

 
293

Amortization of interest capitalized
 
3

 
3

Total earnings
 
$
2,157

 
$
2,066

Ratio of earnings to fixed charges
 
7.52

 
6.91


1 
Pursuant to the guidance in the Income Taxes Topic of the FASB ASC, interest related to unrecognized tax benefits recorded was approximately $10 million and $8 million for the quarters ended March 31, 2014 and 2013, respectively. The ratio of earnings to fixed charges would have been 7.79 and 7.10 for the quarters ended March 31, 2014 and 2013, respectively, if such interest were excluded from the calculation.
2 
Reasonable approximation of the interest factor.