Johnson Controls 2013 Annual Report Download - page 32

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32
Segment Income:
• The increase in Seating was due to gains on acquisitions of partially-owned affiliates ($106 million), higher volumes ($76
million), lower purchasing costs ($54 million), a gain on business divestiture ($29 million), a pension settlement gain
($21 million), the prior year negative impact of the flooding in Thailand and related events ($6 million), and incremental
operating income due to a business acquisition ($4 million), partially offset by net unfavorable pricing and commercial
settlements ($63 million), higher selling, general and administrative expenses ($59 million), unfavorable mix ($42 million),
higher operating costs ($29 million), distressed supplier costs ($21 million), higher engineering and launch costs ($17
million), lower equity income including a prior year equity interest gain ($14 million), litigation charges ($10 million),
the unfavorable impact of foreign currency translation ($7 million) and lower operating income due to a business divestiture
($5 million).
• The increase in Interiors was due to net favorable pricing and commercial settlements ($49 million), lower operating costs
($16 million), higher volumes ($7 million), favorable mix ($6 million), a pension settlement gain ($4 million) and the
favorable impact of foreign currency translation ($2 million), partially offset by higher engineering and launch costs ($28
million), higher selling, general and administrative expenses ($25 million), higher purchasing costs ($17 million),
distressed supplier costs ($2 million) and lower equity income ($1 million).
• The increase in Electronics was due to a gain on the divestiture of the HomeLink® product line net of transaction costs
($476 million), lower purchasing costs ($32 million), higher volumes ($2 million) and higher equity income ($1 million),
partially offset by net unfavorable pricing and commercial settlements ($23 million), higher engineering costs ($17
million), higher selling, general and administrative expenses ($6 million), higher operating costs ($5 million) and the
unfavorable impact of foreign currency translation ($4 million).
Power Solutions
Year Ended
September 30,
(in millions) 2013 2012 Change
Net sales $ 6,358 $ 5,906 8%
Segment income 1,006 784 28%
• Net sales increased due to favorable pricing and product mix ($223 million), higher sales volumes ($172 million) and the
impact of higher lead costs on pricing ($64 million), partially offset by the unfavorable impact of foreign currency
translation ($7 million).
• Segment income increased due to favorable product mix including lead acquisition costs and battery cores ($187 million),
higher volumes ($29 million), favorable legal settlements ($20 million), a pension settlement gain ($16 million), a prior
year impairment of an equity investment ($14 million), change in asset retirement obligations ($7 million) and higher
equity income ($2 million), partially offset by a prior year gain on redemption of a warrant for an existing partially-owned
affiliate ($25 million), higher selling, general and administrative expenses ($14 million), a prior year gain on acquisition
of a partially-owned affiliate ($9 million), higher net operating and transportation costs ($4 million), and the unfavorable
impact of foreign currency translation ($1 million).