Johnson Controls 2014 Annual Report Download - page 108

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108
ASC 280, "Segment Reporting," establishes the standards for reporting information about segments in financial statements. In
applying the criteria set forth in ASC 280, the Company has determined that it has seven reportable segments for financial reporting
purposes. The Company’s seven reportable segments are presented in the context of its three primary businesses - Building
Efficiency, Automotive Experience and Power Solutions.
Building Efficiency
Building Efficiency designs, produces, markets and installs heating, ventilating and air conditioning (HVAC) and control systems
that monitor, automate and integrate critical building segment equipment and conditions including HVAC, fire-safety and security
in commercial buildings and in various industrial applications.
• North America Systems and Service provides HVAC and controls systems, energy efficient solutions and technical
services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems to
non-residential buildings and industrials applications in the North American marketplace.
• Global Workplace Solutions provides on-site staff for complete real estate services, facility operation and management
to improve the comfort, productivity, energy efficiency and cost effectiveness of building systems around the globe.
• Asia provides HVAC and refrigeration systems and technical services to the Asian marketplace.
• Other provides HVAC and refrigeration systems and technical services to markets in Europe, the Middle East and Latin
America. Other also designs and produces heating and air conditioning solutions for residential and light commercial
applications, and markets products to the replacement and new construction markets.
Automotive Experience
Automotive Experience designs and manufactures interior systems and products for passenger cars and light trucks, including
vans, pick-up trucks and sport utility/crossover vehicles.
• Seating produces automotive seat metal structures and mechanisms, foam, trim, fabric and complete seat systems.
• Interiors produces instrument panels, floor consoles and door panels.
Power Solutions
Power Solutions services both automotive original equipment manufacturers and the battery aftermarket by providing advanced
battery technology, coupled with systems engineering, marketing and service expertise.
Management evaluates the performance of the segments based primarily on segment income, which represents income from
continuing operations before income taxes and noncontrolling interests excluding net financing charges, significant restructuring
and impairment costs, and net mark-to-market adjustments on pension and postretirement plans. General corporate and other
overhead expenses are allocated to business segments in determining segment income. As mentioned above, the previously reported
Automotive Experience Electronics segment met the criteria to be classified as a discontinued operation, and general corporate
overhead was not allocated to discontinued operations. The Company reported discontinued operations through retrospective
application to all periods presented, resulting in general corporate allocation changes between the segments in the prior periods.
Financial information relating to the Company’s reportable segments is as follows (in millions):