Johnson Controls 2012 Annual Report Download - page 73

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73
During the quarter ended March 31, 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.
During the quarter ended December 31, 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 issuances were used
for general corporate purposes, including the retirement of short-term debt and contributions to the Company’s
pension and postretirement plans.
During the quarter ended December 31, 2011, the Company entered into two committed, one-year revolving credit
facilities totaling $135 million in aggregate. There were no draws on either facility during fiscal 2012.
During the quarter ended December 31, 2011, the Company entered into a five-year, 75 million euro, floating rate
credit facility scheduled to mature in fiscal 2017. The Company drew on the credit facility during the quarter ended
March 31, 2012. Proceeds from the facility were used for general corporate purposes.
During the quarter ended September 30, 2011, the Company had four euro-denominated revolving credit facilities
totaling 223 million euro with 50 million euro expiring in July 2012, two 37 million euro facilities expiring in
September 2012 and 100 million euro expiring in August 2014. Additionally, the Company had a $50 million
revolving credit facility expiring in September 2012. At September 30, 2011, there were no draws on the revolving
credit facilities.
During the quarter ended June 30, 2011, a 150 million euro revolving credit facility and a 50 million euro revolving
credit facility matured.
During the quarter ended June 30, 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.
During the quarter ended March 31, 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.
During the quarter ended March 31, 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.
During the quarter ended March 31, 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.
During the quarter ended March 31, 2011, the Company retired its $100 million committed revolving facility prior
to its scheduled maturity date of December 2011. There were no draws on the facility.
During the quarter ended December 31, 2010, the Company repaid debt of $82 million which was acquired as part
of an acquisition in the same quarter. The Company used cash to repay the debt.
9. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The Company selectively uses derivative instruments to reduce market risk associated with changes in foreign
currency, commodities, stock-based compensation liabilities and interest rates. Under Company policy, the use of
derivatives is restricted to those intended for hedging purposes; the use of any derivative instrument for speculative
purposes is strictly prohibited. A description of each type of derivative utilized by the Company to manage risk is
included in the following paragraphs. In addition, refer to Note 10, ―Fair Value Measurements,‖ of the notes to
consolidated financial statements for information related to the fair value measurements and valuation methods
utilized by the Company for each derivative type.