EX-12 4 d286821dex12.htm STATEMENT RE: COMPUTATION OF RATIOS STATEMENT RE: COMPUTATION OF RATIOS

Exhibit 12

UNITED TECHNOLOGIES CORPORATION

AND SUBSIDIARIES

STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Full year  

(Dollars in millions)

   2011     2010     2009     2008     2007  

Fixed Charges:

          

Interest expense1 

    $ 673     $ 750     $ 705     $ 689     $ 666  

Interest capitalized

     20       17       18       19       16  

One-third of rents2 

      151       148       154       168       146  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

   $ 844     $ 915     $ 877     $ 876     $ 828  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings:

          

Income before income taxes

   $ 7,605     $ 6,538     $ 5,760     $ 6,936     $ 6,384  

Fixed charges per above

     844       915       877       876       828  

Less: capitalized interest

     (20 )      (17 )      (18 )      (19 )      (16 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     824       898       859       857       812  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Amortization of interest capitalized

     17       17       17       9       8  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total earnings

   $ 8,446     $ 7,453     $ 6,636     $ 7,802     $ 7,204  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

     10.01       8.15       7.57       8.91       8.70  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

1 

Pursuant to the guidance in the Income Taxes Topic of the FASB ASC, interest related to unrecognized tax benefits recorded was approximately $23 million, $27 million, $21 million, $39 million and $56 million for the years 2011, 2010, 2009, 2008 and 2007, respectively. The ratio of earnings to fixed charges would have been 10.29, 8.39, 7.75, 9.32 and 9.33 for the years 2011, 2010, 2009, 2008 and 2007, respectively, if such interest were excluded from the calculation.

2 

Reasonable approximation of the interest factor.