Johnson Controls 2012 Annual Report Download - page 71

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71
7. 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 $96 million and $68 million at September 30, 2012 and 2011, 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, 2012, 2011 and 2010 was $454 million, $424 million and $389
million, respectively.
Future minimum capital and operating lease payments and the related present value of capital lease payments at
September 30, 2012 were as follows (in millions):
Capital
Operating
Leases
Leases
2013
$
14
$
315
2014
16
234
2015
12
168
2016
7
105
2017
7
69
After 2017
43
87
Total minimum lease payments
99
$
978
Interest
(19)
Present value of net minimum lease payments
$
80
8. DEBT AND FINANCING ARRANGEMENTS
Short-term debt consisted of the following (in millions):
September 30,
2012
2011
Bank borrowings and commercial paper
$
323
$
596
Weighted average interest rate on short-term
debt outstanding
2.5%
2.4%
During the quarter ended March 31, 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. There were
no draws on the committed credit facilities during the fiscal years ended September 30, 2012 and 2011. 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. Average outstanding commercial paper for the fiscal year ended September
30, 2011 was $955 million, and $409 million was outstanding at September 30, 2011.