Johnson Controls 2013 Annual Report Download - page 74

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74
8. LEASES
Certain administrative and production facilities and equipment are leased under long-term agreements. Most leases contain renewal
options for varying periods, and certain leases include options to purchase the leased property during or at the end of the lease
term. Leases generally require the Company to pay for insurance, taxes and maintenance of the property. Leased capital assets
included in net property, plant and equipment, primarily buildings and improvements, were $79 million and $96 million at
September 30, 2013 and 2012, respectively.
Other facilities and equipment are leased under arrangements that are accounted for as operating leases. Total rental expense for
the fiscal years ended September 30, 2013, 2012 and 2011 was $470 million, $454 million and $424 million, respectively.
Future minimum capital and operating lease payments and the related present value of capital lease payments at September 30,
2013 were as follows (in millions):
Capital
Leases Operating
Leases
2014 $ 13 $ 300
2015 11 244
2016 8 138
2017 7 95
2018 14 60
After 2018 25 71
Total minimum lease payments 78 $ 908
Interest (13)
Present value of net minimum lease payments $ 65
9. DEBT AND FINANCING ARRANGEMENTS
Short-term debt consisted of the following (in millions):
September 30,
2013 2012
Bank borrowings and commercial paper $ 119 $ 323
Weighted average interest rate on short-term debt outstanding 4.6% 2.5%
During fiscal 2013, the Company replaced its $2.5 billion committed four-year credit facility, scheduled to mature in February
2015, with a $2.5 billion committed five-year credit facility scheduled to mature in August 2018. The facility is used to support
the Company’s outstanding commercial paper. There were no draws on the committed credit facilities during the fiscal years ended
September 30, 2013 and 2012. Average outstanding commercial paper for the fiscal year ended September 30, 2013 was $1,123
million, and there was none outstanding at September 30, 2013. Average outstanding commercial paper for the fiscal year ended
September 30, 2012 was $1,287 million, and $186 million was outstanding at September 30, 2012.