Johnson Controls 2014 Annual Report Download - page 45

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45
$450 million aggregate principal amount of 4.625% senior unsecured fixed rate notes due in fiscal 2044 and $450 million
aggregate principal amount of 4.95% senior unsecured fixed rate notes due in fiscal 2064. Aggregate net proceeds of $1.7
billion from the issuance were used to finance the acquisition of ADT and for other general corporate purposes. Refer to
Note 2, "Acquisitions and Divestitures," of the notes to consolidated financial statements for further information regarding
the ADT acquisition.
• In March 2014, the Company entered into a nine-month, $150 million, floating rate term loan scheduled to mature in
December 2014. Proceeds from the term loan were used for general corporate purposes. The loan was repaid during the
quarter ended June 30, 2014.
• In March 2014, the Company retired $450 million in principal amount, plus accrued interest, of its 1.75% fixed rate notes
that matured March 2014.
• In February 2014, the Company retired $350 million in principal amount, plus accrued interest, of its floating rate notes
that matured February 2014.
• In January 2014, the Company entered into a one-year, $150 million, floating rate term loan scheduled to mature in January
2015. Proceeds from the term loan were used for general corporate purposes. The loan was repaid during the quarter ended
September 2014.
• In November 2013 and December 2013, a $35 million and $100 million committed revolving credit facility expired,
respectively. The Company entered into a new $35 million committed revolving credit facility scheduled to expire in
November 2014 and a new $100 million committed revolving credit facility scheduled to expire in December 2014. As of
September 30, 2014, there were no draws on either facility.
• In December 2013, the Company entered into a five-year, 220 million euro, floating rate credit facility scheduled to mature
in fiscal 2019. The Company drew on the full credit facility during the quarter ended December 31, 2013. Proceeds from
the facility were used for general corporate purposes.
• In September 2013, the Company retired $300 million in principal amount, plus accrued interest, of its 4.875% fixed rate
notes that matured September 2013.
• In August 2013, the Company made a partial repayment of 43 million euro, plus accrued interest, of its 100 million euro
floating rate credit facility scheduled to mature in February 2017.
• In November 2012, the Company entered into a five-year, 70 million euro, floating rate credit facility scheduled to mature
in November 2017. The Company drew on the credit facility during the quarter ended December 31, 2012. Proceeds from
the facility were used for general corporate purposes.
• In November 2012, the Company retired $100 million in principal amount, plus accrued interest, of its 5.8% fixed rate
notes that matured November 2012.
• The Company also selectively makes use of short-term credit lines. The Company estimates that, as of September 30,
2014, it could borrow up to $1.8 billion on committed credit lines.
• The Company believes its capital resources and liquidity position at September 30, 2014 are adequate to meet projected
needs. The Company believes requirements for working capital, capital expenditures, dividends, stock repurchases,
minimum pension contributions, debt maturities and any potential acquisitions in fiscal 2015 will continue to be funded
from operations, supplemented by short- and long-term borrowings, if required. The Company currently manages its short-
term debt position in the U.S. and euro commercial paper markets and bank loan markets. In the event the Company is
unable to issue commercial paper, it would have the ability to draw on its $2.5 billion revolving credit facility, which
matures in August 2018. There were no draws on the revolving credit facility as of September 30, 2014. As such, the
Company believes it has sufficient financial resources to fund operations and meet its obligations for the foreseeable future.
• The Company earns a significant amount of its operating income outside the U.S., which is deemed to be permanently
reinvested in foreign jurisdictions. The Company currently does not intend nor foresee a need to repatriate these funds.
The Company’s intent is for such earnings to be reinvested by the subsidiaries or to be repatriated only when it would be
tax effective through the utilization of foreign tax credits. The Company expects existing domestic cash and liquidity to
continue to be sufficient to fund the Company’s domestic operating activities and cash commitments for investing and