Johnson Controls 2013 Annual Report Download - page 42

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42
Cash Flows
Year Ended September 30,
(in millions) 2013 2012
Cash provided by operating activities $ 2,686 $ 1,559
Cash used by investing activities (580)(1,792)
Cash provided (used) by financing activities (1,214) 207
Capital expenditures (1,377)(1,831)
• The increase in cash provided by operating activities was primarily due to favorable changes in accrued liabilities, accrued
income taxes, other assets and restructuring reserves; and lower pension and postretirement contributions; partially offset
by unfavorable changes in inventories and accounts receivable.
• The decrease in cash used by investing activities was primarily due to cash received for business divestitures and lower
capital expenditures, partially offset by higher cash paid for acquisitions of businesses.
• The increase in cash used by financing activities was primarily due to a prior year $1.1 billion bond issuance, higher
repayments of debt and an increase in stock repurchases, partially offset by higher proceeds from the exercise of stock
options. Refer to Note 9, “Debt and Financing Arrangements,” of the notes to consolidated financial statements for further
discussion on debt issuances and debt levels.
• The decrease in capital expenditures in the current year is primarily related to capacity increases and vertical integration
efforts in the prior year in the Power Solutions business, and a reduction in program spending for new customer launches
in the Automotive Experience business.
Capitalization
September 30,
2013 September 30,
2012(in millions) Change
Short-term debt $ 119 $ 323
Current portion of long-term debt 819 424
Long-term debt 4,560 5,321
Total debt $ 5,498 $ 6,068 -9%
Shareholders’ equity attributable to Johnson Controls, Inc. 12,314 11,625 6%
Total capitalization $ 17,812 $ 17,693 1%
Total debt as a % of total capitalization 31% 34%
• The Company believes the percentage of total debt to total capitalization is useful to understanding the Company’s financial
condition as it provides a review of the extent to which the Company relies on external debt financing for its funding and
is a measure of risk to its shareholders.
• At September 30, 2013 and 2012, the Company had committed bilateral euro denominated credit facilities totaling
237 million euro. Additionally, at September 30, 2013 and 2012, the Company had committed bilateral U.S. dollar
denominated revolving credit facilities totaling $185 million. Each of these facilities is scheduled to expire in fiscal 2014.
There were no draws on any of the revolving credit facilities for the respective periods.
• In November 2011, the Company issued $400 million aggregate principal amount of 2.6% senior unsecured fixed rate
notes due in fiscal 2017, $450 million aggregate principal amount of 3.75% senior unsecured fixed rate notes due in fiscal
2022 and $250 million aggregate principal amount of 5.25% senior unsecured fixed rate notes due in fiscal 2042. Aggregate
net proceeds of $1.1 billion from the issues were used for general corporate purposes, including the retirement of short-
term debt and contributions to the Company’s pension and postretirement plans.
• In December 2011, the Company entered into a five-year, 75 million euro, floating rate credit facility scheduled to mature
in February 2017. The Company drew on the credit facility during the second quarter of fiscal 2012. Proceeds from the
facility were used for general corporate purposes.