Johnson Controls 2013 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2013 Johnson Controls annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 117

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117

38
($20 million), net fiscal 2011 warranty accrual adjustment due to favorable experience ($14 million), lower income due
to fiscal 2012 divestitures ($10 million) and the unfavorable impact of foreign currency translation ($1 million).
Automotive Experience
Net Sales
for the Year Ended
September 30,
Segment Income (Loss)
for the Year Ended
September 30,
(in millions) 2012 2011 Change 2012 2011 Change
Seating $ 15,854 $ 14,656 8% $ 694 $ 641 8%
Interiors 4,129 4,119 0% (20)(5) *
Electronics 1,351 1,290 5% 129 144 -10%
$ 21,334 $ 20,065 6% $ 803 $ 780 3%
* Measure not meaningful
Net Sales:
• The increase in Seating was primarily due to higher volumes to major OEM customers including the fiscal 2011 negative
impact of the Japan earthquake and related events ($1.2 billion), and incremental sales due to business acquisitions ($802
million), partially offset by the unfavorable impact of foreign currency translation ($584 million), net unfavorable pricing
and commercial settlements ($155 million), and the negative impact of the flooding in Thailand and related events ($25
million).
• The increase in Interiors was primarily due to higher volumes to major OEM customers including the fiscal 2011 negative
impact of the Japan earthquake and related events ($147 million), partially offset by the unfavorable impact of foreign
currency translation ($117 million) and net unfavorable pricing and commercial settlements ($20 million).
• The increase in Electronics was primarily due to higher volumes to major OEM customers including the fiscal 2011
negative impact of the Japan earthquake and related events ($73 million), and incremental sales due to a fiscal 2011
business acquisition ($66 million), partially offset by the unfavorable impact of foreign currency translation ($63 million)
and net unfavorable pricing and commercial settlements ($15 million).
Segment Income:
• The increase in Seating was primarily due to higher volumes including the fiscal 2011 negative impact of the earthquake
in Japan and related events ($246 million), lower purchasing costs ($78 million), fiscal 2011 costs related to business
acquisitions ($64 million), incremental operating income of fiscal 2011 acquisitions ($59 million), lower engineering
expenses ($13 million), higher equity income ($3 million) and the favorable impact of foreign currency translation ($2
million), partially offset by higher operating costs ($195 million), net unfavorable commercial settlements and pricing
($167 million), higher selling, general and administrative expenses ($44 million), and the negative impact of the flooding
in Thailand and related events ($6 million).
• The decrease in Interiors was primarily due to higher operating costs ($35 million), and net unfavorable commercial
settlements and pricing ($31 million), partially offset by lower purchasing costs ($32 million), lower selling, general and
administrative expenses ($9 million), higher equity income ($9 million) and lower engineering expenses ($1 million).
• The decrease in Electronics was primarily due to net unfavorable commercial settlements and pricing ($15 million), higher
operating costs ($13 million), higher selling, general and administrative expenses ($11 million), and lower equity income
($11 million), partially offset by higher volumes including the fiscal 2011 negative impact of the earthquake in Japan and
related events ($14 million), lower engineering expenses ($9 million), lower purchasing costs ($6 million), incremental
operating income of a fiscal 2011 acquisition ($5 million) and the favorable impact of foreign currency translation ($1
million).