Johnson Controls 2013 Annual Report Download - page 102

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102
None of these changes had a material impact on the Company’s consolidated financial condition, results of operations or cash
flows.
Continuing Operations
Components of the provision for income taxes on continuing operations were as follows (in millions):
Year Ended September 30,
2013 2012 2011
Current
Federal $ 327 $ 118 $ 56
State 41 12 —
Foreign 527 313 458
895 443 514
Deferred
Federal 462 94 95
State 14 18 (9)
Foreign (203)(346)(342)
273 (234)(256)
Provision for income taxes $ 1,168 $ 209 $ 258
Consolidated domestic income from continuing operations before income taxes and noncontrolling interests for the fiscal years
ended September 30, 2013, 2012 and 2011 was income of $2,335 million, $1,061 million and $1,013 million, respectively.
Consolidated foreign income from continuing operations before income taxes and noncontrolling interests for the fiscal years
ended September 30, 2013, 2012 and 2011 was income of $130 million, $459 million and $777 million, respectively.
Income taxes paid for the fiscal years ended September 30, 2013, 2012 and 2011were $531 million, $496 million and $384 million,
respectively.
The Company has not provided additional U.S. income taxes on approximately $7.6 billion of undistributed earnings of consolidated
foreign subsidiaries included in shareholders’ equity attributable to Johnson Controls, Inc. Such earnings could become taxable
upon the sale or liquidation of these foreign subsidiaries or upon dividend repatriation. The Company’s intent is for such earnings
to be reinvested by the subsidiaries or to be repatriated only when it would be tax effective through the utilization of foreign tax
credits. It is not practicable to estimate the amount of unrecognized withholding taxes and deferred tax liability on such earnings.
In the fourth quarter of fiscal 2013, the Company provided income tax expense on the foreign undistributed earnings of the non-
U.S. subsidiaries primarily related to the Electronics business, which resulted in $210 million of incremental tax expense. Refer
to “Capitalization” within the “Liquidity and Capital Resources” section of Item 7 for discussion of domestic and foreign cash
projections.
Deferred taxes were classified in the consolidated statements of financial position as follows (in millions):
September 30,
2013 2012
Other current assets $ 567 $ 518
Other noncurrent assets 1,349 1,783
Other current liabilities (4)(10)
Other noncurrent liabilities (58)(95)
Net deferred tax asset $ 1,854 $ 2,196