EX-12 2 a2016-03x3110xqexhibit12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12
UNITED TECHNOLOGIES CORPORATION
AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
 
 
Quarter Ended March 31,
(Dollars in millions)
 
2016
 
2015
Fixed Charges:
 
 
 
 
Interest expense 1 
 
$
241

 
$
239

Interest capitalized
 
9

 
8

One-third of rents 2 
 
32

 
32

Total fixed charges
 
$
282

 
$
279

Earnings:
 
 
 
 
Income from continuing operations before income taxes
 
$
1,722

 
$
1,965

Fixed charges per above
 
282

 
279

Less: capitalized interest
 
(9
)
 
(8
)
 
 
273

 
271

Amortization of interest capitalized
 
2

 
3

Total earnings
 
$
1,997

 
$
2,239

Ratio of earnings to fixed charges
 
7.08

 
8.03

1 
Pursuant to the guidance in the Income Taxes Topic of the Financial Accounting Standards Board Accounting Standards Codification, interest related to unrecognized tax benefits recorded was approximately $10 million and $11 million for the three months ended March 31, 2016 and 2015, respectively. The ratio of earnings to fixed charges would have been 7.34 and 8.35 for the three months ended March 31, 2016 and 2015, respectively, if such interest were excluded from the calculation.
2 
Reasonable approximation of the interest factor.