Johnson Controls 2013 Annual Report Download - page 68

68
December 31, 2014, with early adoption permitted. The significance of this guidance for the Company is dependent on any future
derecognition events involving the Company's foreign entities.
In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified
Out of Accumulated Other Comprehensive Income." ASU No. 2013-02 requires companies to provide information about the
amounts reclassified out of accumulated other comprehensive income by component. Additionally, companies are required to
disclose these reclassifications by each respective line item on the statements of income. ASU No. 2013-02 is effective for the
Company for the quarter ended December 31, 2013, though the Company has early adopted as permitted. The adoption of this
guidance had no impact on the Company's consolidated financial condition or results of operations. Refer to Note 14, "Equity and
Noncontrolling Interests," of the notes to consolidated financial statements for disclosures regarding other comprehensive income.
In July 2012, the FASB issued ASU No. 2012-02, “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived
Intangible Assets for Impairment.” ASU No. 2012-02 provides companies an option first to assess qualitative factors to determine
whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset
is impaired. If, as a result of the qualitative assessment, it is determined that it is not more likely than not that the indefinite-lived
intangible asset is impaired, then the Company is not required to take further action. ASU No. 2012-02 is effective for the Company
for impairment tests of indefinite-lived intangible assets performed in the current fiscal year. The adoption of this guidance had
no impact on the Company’s consolidated financial condition or results of operations.
In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and
Liabilities.” ASU No. 2011-11 requires additional quantitative and qualitative disclosures of gross and net information regarding
financial instruments and derivative instruments that are offset or eligible for offset in the consolidated statement of financial
position. ASU No. 2011-11 will be effective for the Company for the quarter ending December 31, 2013. The adoption of this
guidance will have no impact on the Company’s consolidated financial condition or results of operations.
In September 2011, the FASB issued ASU No. 2011-08, “Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for
Impairment.” ASU No. 2011-08 provides companies an option to perform a qualitative assessment to determine whether further
goodwill impairment testing is necessary. If, as a result of the qualitative assessment, it is determined that it is more likely than
not that a reporting unit’s fair value is less than its carrying amount, the two-step quantitative impairment test is required. Otherwise,
no further testing is required. ASU No. 2011-08 is effective for the Company for goodwill impairment tests performed in the
current fiscal year. The adoption of this guidance had no impact on the Company’s consolidated financial condition or results of
operations.
In June 2011, the FASB issued ASU No. 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income.”
ASU No. 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of
shareholders’ equity. All non-owner changes in shareholders’ equity instead must be presented either in a single continuous statement
of comprehensive income or in two separate but consecutive statements. ASU No. 2011-05 was effective for the Company for the
quarter ended December 31, 2012. The adoption of this guidance had no impact on the Company’s consolidated financial condition
or results of operations. Refer to the consolidated statements of comprehensive income (loss) and Note 14, “Equity and
Noncontrolling Interests,” of the notes to consolidated financial statements for disclosures regarding other comprehensive income.
2. ACQUISITIONS AND DIVESTITURES
During fiscal 2013, the Company completed three acquisitions for a combined purchase price, net of cash acquired, of $123 million,
all of which was paid as of September 30, 2013. The acquisitions in the aggregate were not material to the Company's consolidated
financial statements. In connection with the acquisitions, the Company recorded goodwill of $266 million. The purchase price
allocations may be subsequently adjusted to reflect final valuation studies. Two of the acquisitions increased the Company's
ownership from a noncontrolling to controlling interest. As a result, the Company recorded a combined non-cash gain of $106
million in Automotive Experience Seating equity income to adjust the Company's existing equity investments to fair value.
During the fourth quarter of fiscal 2013, the Company completed its divestiture of its Automotive Experience Electronics'
HomeLink® product line to Gentex Corporation. The selling price was $701 million, all of which was received as of September
30, 2013. In connection with the HomeLink® product line divestiture, the Company recorded a gain, net of transaction costs, of
$476 million and reduced goodwill by $177 million in the Automotive Experience Electronics segment. The continuing process
to sell the remainder of the Automotive Experience Electronics business is progressing, and the business is classified as held for
sale in the consolidated statement of financial position as of September 30, 2013. Refer to Note 3, "Assets and Liabilities Held for
Sale," of the notes to consolidated financial statements for further disclosure related to the Company's assets and liabilities held
for sale.