Exhibit 12
UNITED TECHNOLOGIES CORPORATION
AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Six Months Ended June 30, | ||||||||
| (Dollars in millions) | 2016 | 2015 | ||||||
| Fixed Charges: | ||||||||
Interest expense 1 | $ | 489 | $ | 484 | ||||
| Interest capitalized | 16 | 14 | ||||||
One-third of rents 2 | 64 | 65 | ||||||
| Total fixed charges | $ | 569 | $ | 563 | ||||
| Earnings: | ||||||||
| Income from continuing operations before income taxes | $ | 3,834 | $ | 4,163 | ||||
| Fixed charges per above | 569 | 563 | ||||||
| Less: capitalized interest | (16 | ) | (14 | ) | ||||
| 553 | 549 | |||||||
| Amortization of interest capitalized | 4 | 6 | ||||||
| Total earnings | $ | 4,391 | $ | 4,718 | ||||
| Ratio of earnings to fixed charges | 7.72 | 8.38 | ||||||
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 $20 million for each of the six months ended June 30, 2016 and 2015. The ratio of earnings to fixed charges would have been 8.00 and 8.69 for the six months ended June 30, 2016 and 2015, respectively, if such interest were excluded from the calculation. |
2 | Reasonable approximation of the interest factor. |