EX-12 3 d297440dex12.htm EX-12 EX-12

EXHIBIT 12

JOHNSON CONTROLS, INC.

RATIO OF EARNINGS TO FIXED CHARGES

The following table shows Johnson Controls, Inc.’s ratio of earnings to fixed charges for each of its last five fiscal years and the quarter ended December 31, 2011:

 

     Year Ended September 30,     Quarter Ended  
     2007     2008     2009     2010     2011     December 31, 2011  

(Dollars in millions)

            

Net income (loss) attributable to Johnson Controls, Inc.

   $ 1,295      $ 979      $ (338   $ 1,491      $ 1,624      $ 410   

Provision for income taxes

     300        321        32        197        370        104   

Income (loss) attributable to noncontrolling interests

     12        24        (12     75        117        35   

(Income) loss from equity affiliates

     (89     (116     77        (254     (298     (120

Distributed income of equity affiliates

     89        101        158        212        194        18   

Amortization of previously capitalized interest

     9        10        11        11        10        2   

Fixed charges less capitalized interest

     378        409        492        302        331        87   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings

   $ 1,994      $ 1,728      $ 420      $ 2,034      $ 2,348      $ 536   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges:

            

Interest incurred and amortization of debt expense

   $ 284      $ 291      $ 375      $ 193      $ 224      $ 65   

Estimated portion of interest in rent expense

     112        133        134        130        141        36   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges

   $ 396      $ 424      $ 509      $ 323      $ 365      $ 101   

Less: Interest capitalized during the period

     (18     (15     (17     (21     (34     (14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges less capitalized interest

   $ 378      $ 409      $ 492      $ 302      $ 331      $ 87   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

     5.0        4.1        *        6.3        6.4        5.3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* The ratio coverage for the year ended September 30, 2009 was less than 1:1. Johnson Controls, Inc. would have needed to generate additional earnings of $89 million to achieve a coverage ratio of 1:1.

For the purposes of computing this ratio, “earnings” consist of net income attributable to Johnson Controls, Inc. from continuing operations before income taxes, income attributable to noncontrolling interests and income from equity affiliates plus (a) amortization of previously capitalized interest, (b) distributed income from equity affiliates and (c) fixed charges, minus interest capitalized during the period. “Fixed charges” consist of (i) interest incurred and amortization of debt expense plus (ii) the portion of rent expense representative of the interest factor.