Johnson Controls 2015 Annual Report Download - page 45

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• In March 2015, the Company retired $125 million in principal amount, plus accrued interest, of its 7.7% fixed rate notes
that matured in March 2015.
• In January 2015, the Company entered into a one-year, $90 million, committed revolving credit facility scheduled to mature
in January 2016. The Company drew on the full credit facility during the quarter ended March 31, 2015. Proceeds from
the revolving credit facility were used for general corporate purposes. The $90 million was repaid in September 2015.
• In September 2014, the Company retired a $500 million, floating rate term loan plus accrued interest that matured in
September 2014. The Company also retired a $150 million, floating rate term loan plus accrued interest initially scheduled
to mature in January 2015.
• In June 2014, the Company issued $300 million aggregate principal amount of 1.4% senior unsecured fixed rate notes due
in November 2017, $500 million aggregate principal amount of 3.625% senior unsecured fixed rate notes due in June 2024,
$450 million aggregate principal amount of 4.625% senior unsecured fixed rate notes due in July 2044 and $450 million
aggregate principal amount of 4.95% senior unsecured fixed rate notes due in July 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 December 2013, the Company entered into a five-year, 220 million euro, floating rate credit facility scheduled to mature
in fiscal 2018. 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.
• The Company also selectively makes use of short-term credit lines. The Company estimates that, as of September 30, 2015,
it could borrow up to $2.0 billion based on average borrowing levels during the quarter on committed credit lines.
• The Company believes its capital resources and liquidity position at September 30, 2015 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 2016 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, 2015. 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. In general, the Company currently does not foresee a need to repatriate these funds.
However, in fiscal 2015, the Company did provide income tax expense related to the repatriation of earnings of certain
non-U.S. subsidiaries in connection with the GWS and Automotive Experience Interiors divestitures. In addition, the
Company needs to complete the final steps of repatriation of the cash proceeds from these transactions and, as a result,
the Company provided deferred taxes of $136 million for the income tax expense that would be triggered upon repatriation
of this cash. Except as noted, the Company’s intent is for its foreign 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 financing activities for at least the next twelve months and thereafter for the foreseeable
future. In addition, the Company expects existing foreign cash, cash equivalents, short-term investments and cash flows
from operations to continue to be sufficient to fund the Company’s foreign operating activities and cash commitments for
investing activities, such as material capital expenditures, for at least the next twelve months and for the foreseeable future.
Should the Company require more capital in the U.S. than is generated by operations domestically, the Company will elect