Johnson Controls 2013 Annual Report Download - page 6

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6
America Service, Other and Asia segments, partially offset by an increase in the North America Systems segment. The backlog
does not include amounts associated with contracts in the Global Workplace Solutions business because such contracts are typically
multi-year service awards, nor does it include unitary products within the Other segment. The backlog amount outstanding at any
given time is not necessarily indicative of the amount of revenue to be earned in the upcoming fiscal year.
Raw Materials
Raw materials used by the businesses in connection with their operations, including lead, steel, tin, aluminum, urethane chemicals,
copper, sulfuric acid and polypropylene, were readily available during the year, and the Company expects such availability to
continue. In fiscal 2014, commodity prices could fluctuate throughout the year and could significantly affect the results of operations.
Intellectual Property
Generally, the Company seeks statutory protection for strategic or financially important intellectual property developed in
connection with its business. Certain intellectual property, where appropriate, is protected by contracts, licenses, confidentiality
or other agreements.
The Company owns numerous U.S. and non-U.S. patents (and their respective counterparts), the more important of which cover
those technologies and inventions embodied in current products or which are used in the manufacture of those products. While
the Company believes patents are important to its business operations and in the aggregate constitute a valuable asset, no single
patent, or group of patents, is critical to the success of the business. The Company, from time to time, grants licenses under its
patents and technology and receives licenses under patents and technology of others.
The Company’s trademarks, certain of which are material to its business, are registered or otherwise legally protected in the U.S.
and many non-U.S. countries where products and services of the Company are sold. The Company, from time to time, becomes
involved in trademark licensing transactions.
Most works of authorship produced for the Company, such as computer programs, catalogs and sales literature, carry appropriate
notices indicating the Company’s claim to copyright protection under U.S. law and appropriate international treaties.
Environmental, Health and Safety Matters
Laws addressing the protection of the environment (environmental laws) and workers’ safety and health (worker safety laws)
govern the Company’s ongoing global operations. They generally provide for civil and criminal penalties, as well as injunctive
and remedial relief, for noncompliance or require remediation of sites where Company-related materials have been released into
the environment.
The Company has expended substantial resources globally, both financial and managerial, to comply with environmental laws and
worker safety laws and maintains procedures designed to foster and ensure compliance. Certain of the Company’s businesses are,
or have been, engaged in the handling or use of substances that may impact workplace health and safety or the environment. The
Company is committed to protecting its workers and the environment against the risks associated with these substances.
The Company’s operations and facilities have been, and in the future may become, the subject of formal or informal enforcement
actions or proceedings for noncompliance with environmental laws and worker safety laws or for the remediation of Company-
related substances released into the environment. Such matters typically are resolved by negotiation with regulatory authorities
that result in commitments to compliance, abatement or remediation programs and, in some cases, payment of penalties. Historically,
neither such commitments nor such penalties have been material. (See Item 3, “Legal Proceedings,” of this report for a discussion
of the Company’s potential environmental liabilities.)
Environmental Capital Expenditures
The Company’s ongoing environmental compliance program often results in capital expenditures. Environmental considerations
are a part of all significant capital expenditure decisions; however, expenditures in fiscal 2013 related solely to environmental
compliance were not material. It is management’s opinion that the amount of any future capital expenditures related solely to
environmental compliance will not have a material adverse effect on the Company’s financial results or competitive position in
any one year.