Johnson Controls 2012 Annual Report Download - page 42

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42
million and $50 million, respectively. There were no draws on any of the revolving facilities for the respective
periods. As of September 30, 2012, facilities for $185 million and 137 million euro are scheduled to expire in
fiscal 2013, and a facility for 100 million euro is scheduled to expire in fiscal 2014.
In November 2010, the Company repaid debt of $82 million which was acquired as part of an acquisition in the
first quarter of fiscal 2011. The Company used cash to repay the debt.
In January 2011, the Company retired $654 million in principal amount, plus accrued interest, of its 5.25%
fixed rate notes that matured on January 15, 2011. The Company used cash to fund the payment.
In February 2011, the Company issued $350 million aggregate principal amount of floating rate senior
unsecured notes due in fiscal 2014, $450 million aggregate principal amount of 1.75% senior unsecured fixed
rate notes due in fiscal 2014, $500 million aggregate principal amount of 4.25% senior unsecured fixed rate
notes due in fiscal 2021 and $300 million aggregate principal amount of 5.7% senior unsecured fixed rate notes
due in fiscal 2041. Aggregate net proceeds of $1.6 billion from the issues were used for general corporate
purposes including the retirement of short-term debt.
In February 2011, the Company entered into a six-year, 100 million euro, floating rate loan scheduled to mature
in February 2017. Proceeds from the facility were used for general corporate purposes.
In February 2011, the Company replaced its $2.05 billion committed five-year credit facility, scheduled to
mature in December 2011, with a $2.5 billion committed four-year credit facility scheduled to mature in
February 2015. The facility is used to support the Company’s outstanding commercial paper. At September 30,
2012, there were no draws on the facility.
In April 2011, a total of 157,820 equity units, which had a purchase contract settlement date of March 31, 2012,
were early exercised. As a result, the Company issued 766,673 shares of Johnson Controls, Inc. common stock
and approximately $8 million of 11.5% notes due 2042.
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.
In March 2012, the Company remarketed $46 million aggregate principal amount of 11.5% subordinated notes
due in fiscal 2042, on behalf of holders of Corporate Units and holders of separate notes, by issuing $46 million
aggregate principal amount of 2.355% senior notes due on March 31, 2017.
The Company also selectively makes use of short-term credit lines. The Company estimates that, as of
September 30, 2012, it could borrow up to $1.9 billion at its current debt ratings on committed credit lines.
The Company believes its capital resources and liquidity position at September 30, 2012 are adequate to meet
projected needs. The Company believes requirements for working capital, capital expenditures, dividends,
minimum pension contributions, debt maturities, announced acquisitions and any potential acquisitions in fiscal
2013 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 February 2015. There were no draws on
the revolving credit facility as of September 30, 2012. 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 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