EX-12 3 a2017-12x3110xkexhibit12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Exhibit 12
UNITED TECHNOLOGIES CORPORATION
AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

| Full year
(dollars in millions) | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Fixed Charges: |  |  |  |  |  |  |  |  |
Interest expense 1 | $ | 1,017 |  |  | $ | 1,161 |  |  | $ | 945 |  |  | $ | 1,099 |  |  | $ | 1,032 |
Interest capitalized | 33 |  |  | 34 |  |  | 27 |  |  | 25 |  |  | 22 |
One-third of rents 2 | 137 |  |  | 129 |  |  | 129 |  |  | 145 |  |  | 142 |
Total fixed charges | $ | 1,187 |  |  | $ | 1,324 |  |  | $ | 1,101 |  |  | $ | 1,269 |  |  | $ | 1,196 |
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes | $ | 7,763 |  |  | $ | 7,133 |  |  | $ | 6,467 |  |  | $ | 8,712 |  |  | $ | 7,654 |
Fixed charges per above | 1,187 |  |  | 1,324 |  |  | 1,101 |  |  | 1,269 |  |  | 1,196 |
Less: capitalized interest | (33 | ) |  | (34 | ) |  | (27 | ) |  | (25 | ) |  | (22 | )
| 1,154 |  |  | 1,290 |  |  | 1,074 |  |  | 1,244 |  |  | 1,174 |
Amortization of interest capitalized | 10 |  |  | 9 |  |  | 12 |  |  | 12 |  |  | 11 |
Total earnings | $ | 8,927 |  |  | $ | 8,432 |  |  | $ | 7,553 |  |  | $ | 9,968 |  |  | $ | 8,839 |
Ratio of earnings to fixed charges | 7.52 |  |  | 6.37 |  |  | 6.86 |  |  | 7.86 |  |  | 7.39 |

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 $34 million, $41 million, $34 million, $179 million and $50 million for the years 2017, 2016, 2015, 2014 and 2013, respectively. The ratio of earnings to fixed charges would have been 7.31, 6.18, 6.65, 6.88 and 7.09 for the years 2017, 2016, 2015, 2014 and 2013, respectively, if such interest were excluded from the calculation.

2 | Reasonable approximation of the interest factor.