1 EXHIBIT 12 JOHNSON CONTROLS, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (dollars in millions) For the Year Ended September 30, 1996 ------------------ Net Income $234.7 Provision for income taxes 181.6 Minority interest in earnings of consolidated subsidiaries 26.5 Undistributed earnings of partially-owned affiliates (2.3) Amortization of previously capitalized interest 3.8 ------ 444.3 Fixed charges: Interest incurred and amortization of debt expense 87.2 Estimated portion of rent expense 34.3 ------ Fixed charges 121.5 Less: Interest capitalized during period (7.5) ------ 114.0 ------ Earnings $558.3 ====== Ratio of earnings to fixed charges 4.6 ====== For the purpose of computing this ratio, "earnings" consist of (a) income from continuing operations before income taxes (adjusted for undistributed earnings of recognized losses of partially-owned affiliates, minority interest in earnings or losses of consolidated subsidiaries, and amortization of previously capitalized interest), plus (b) fixed charges, minus (c) interest capitalized during the period. "Fixed charges" consist of (a) interest incurred and amortization of debt expense plus (b) the portion of rent expense representative of the interest factor. 97