EX-12 3 a2017-12x3110xkexhibit12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12
UNITED TECHNOLOGIES CORPORATION
AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
 
Full year 
(dollars in millions) 
2017
 
2016
 
2015
 
2014
 
2013
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense 1
$
1,017

 
$
1,161

 
$
945

 
$
1,099

 
$
1,032

Interest capitalized
33

 
34

 
27

 
25

 
22

One-third of rents 2
137

 
129

 
129

 
145

 
142

Total fixed charges
$
1,187

 
$
1,324

 
$
1,101

 
$
1,269

 
$
1,196

Earnings:
 

 
 

 
 

 
 

 
 

Income from continuing operations before income taxes
$
7,763

 
$
7,133

 
$
6,467

 
$
8,712

 
$
7,654

Fixed charges per above
1,187

 
1,324

 
1,101

 
1,269

 
1,196

Less: capitalized interest
(33
)
 
(34
)
 
(27
)
 
(25
)
 
(22
)
 
1,154

 
1,290

 
1,074

 
1,244

 
1,174

Amortization of interest capitalized
10

 
9

 
12

 
12

 
11

Total earnings
$
8,927

 
$
8,432

 
$
7,553

 
$
9,968

 
$
8,839

Ratio of earnings to fixed charges
7.52

 
6.37

 
6.86

 
7.86

 
7.39

 
1 
Pursuant to the guidance in the Income Taxes Topic of the Financial Accounting Standards Board Accounting Standards Codification, interest related to unrecognized tax benefits recorded was approximately $34 million, $41 million, $34 million, $179 million and $50 million for the years 2017, 2016, 2015, 2014 and 2013, respectively. The ratio of earnings to fixed charges would have been 7.31, 6.18, 6.65, 6.88 and 7.09 for the years 2017, 2016, 2015, 2014 and 2013, respectively, if such interest were excluded from the calculation.
2 
Reasonable approximation of the interest factor.