Johnson Controls 2013 Annual Report Download - page 97

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97
Net Periodic Benefit Cost
The table that follows contains the components of net periodic benefit cost (in millions):
Pension Benefits
Postretirement Benefits U.S. Plans Non-U.S. Plans
Year ended September 30, 2013 2012 2011 2013 2012 2011 2013 2012 2011
Components of Net Periodic
Benefit Cost (Credit):
Service cost $ 90 $ 69 $ 66 $ 38 $ 41 $ 34 $ 5 $ 5 $ 5
Interest cost 151 150 145 64 73 70 11 13 13
Expected return on plan assets (232) (214) (203) (71)(75)(75)(13)(11) —
Net actuarial (gain) loss (433) 432 336 48 30 43 (20)(15) 5
Amortization of prior service
cost (credit) 1 1 1 (1)(1) 2 (17)(17)(17)
Curtailment gain — — — (26)(2)(19) — — —
Settlement (gain) loss (69) — — (1) — 4 — — —
Net periodic benefit cost
(credit) $ (492) $ 438 $ 345 $ 51 $ 66 $ 59 $ (34) $ (25) $ 6
Expense Assumptions:
Discount rate 4.15% 5.25% 5.50% 3.40% 4.00% 4.00% 4.15% 5.25% 5.50%
Expected return on plan assets 8.00% 8.50% 8.50% 4.55% 5.15% 5.50% 5.80% 6.30% NA
Rate of compensation increase 3.25% 3.30% 3.20% 2.45% 2.45% 3.00% NA NA NA
16. SIGNIFICANT RESTRUCTURING AND IMPAIRMENT COSTS
To better align its resources with its growth strategies and reduce the cost structure of its global operations to address the softness
in certain underlying markets, the Company committed to a significant restructuring plan in fiscal 2012 and recorded $297 million
of significant restructuring and impairment costs, of which $52 million was recorded in the third quarter and $245 million in the
fourth quarter of fiscal 2012. As a continuation of its restructuring plan announced in fiscal 2012, the Company recorded $985
million of significant restructuring and impairment costs in fiscal 2013, of which $84 million was recorded in the second quarter,
$143 million in the third quarter and $758 million in the fourth quarter of fiscal 2013. The restructuring actions related to cost
reduction initiatives in the Company’s Automotive Experience, Building Efficiency and Power Solutions businesses and included
workforce reductions, plant closures, and asset and goodwill impairments. The restructuring actions are expected to be substantially
complete by the end of fiscal 2014.
The following table summarizes the changes in the Company’s restructuring reserve, included within other current liabilities in
the consolidated statements of financial position (in millions):
Employee
Severance
and
Termination
Benefits
Long-
Lived Asset
Impairments Goodwill
Impairment Other Currency
Translation Total
Original Reserve $ 237 $ 39 $ — $ 21 $ — 297
Utilized—cash (16) — — (6) — (22)
Utilized—noncash —(39) — (8) — (47)
Balance at September 30, 2012 $ 221 $ — $ — $ 7 $ — $ 228
Additional restructuring and
impairment costs 392 156 430 7 — 985
Utilized—cash (141) — — (7) — (148)
Utilized—noncash — (156)(430)(4) 2 (588)
Transfer to liabilities held for sale (31) — — — — (31)
Balance at September 30, 2013 $ 441 $ — $ — $ 3 $ 2 $ 446