Johnson Controls 2014 Annual Report Download - page 39

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39
net of transaction costs, higher equity income and lower income attributable to noncontrolling interests. Fiscal 2013 diluted earnings
per share attributable to Johnson Controls, Inc. was $1.71 compared to $1.72 in fiscal 2012.
Segment Analysis
Management evaluates the performance of its business units based primarily on segment income, which is defined as 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.
Building Efficiency
Net Sales
for the Year Ended
September 30,
Segment Income
for the Year Ended
September 30,
(in millions) 2013 2012 Change 2013 2012 Change
North America Systems and Service $ 4,492 $ 4,534 -1% $ 506 $ 449 13%
Global Workplace Solutions 4,265 4,294 -1% 113 51 *
Asia 2,022 1,987 2% 277 266 4%
Other 3,812 3,900 -2% 88 140 -37%
$ 14,591 $ 14,715 -1% $ 984 $ 906 9%
* Measure not meaningful
Net Sales:
• The decrease in North America Systems and Service was due to a reduction in truck-based volumes ($46 million), lower
volumes of equipment and controls systems ($25 million), and the unfavorable impact of foreign currency translation ($3
million), partially offset by higher energy solutions volumes ($32 million).
• The decrease in Global Workplace Solutions was due to a net decrease in services to new and existing customers ($109
million) and the unfavorable impact of foreign currency translation ($26 million), partially offset by incremental sales
from a business acquisition ($106 million).
• The increase in Asia was due to higher volumes of equipment and controls ($47 million), and higher service volumes
($30 million), partially offset by the unfavorable impact of foreign currency translation ($42 million).
• The decrease in Other was due to fiscal 2012 divestitures ($67 million), lower volumes in the Middle East ($64 million)
and Europe ($54 million), and the unfavorable impact of foreign currency translation ($18 million), partially offset by
higher volumes in unitary products ($66 million), Latin America ($23 million) and other businesses ($26 million).
Segment Income:
• The increase in North America Systems and Service was due to favorable mix and margin rates ($87 million), a pension
settlement gain ($12 million) and a fiscal 2012 loss on business divestitures ($3 million), partially offset by higher selling,
general and administrative expenses ($24 million), and lower volumes ($21 million).
• The increase in Global Workplace Solutions was due to favorable margin rates ($47 million), a pension curtailment gain
resulting from a lost contract net of other contract costs ($24 million), a pension settlement gain ($14 million), incremental
operating income from a business acquisition ($3 million), higher equity income ($1 million) and the favorable impact
of foreign currency translation ($1 million), partially offset by lower volumes ($14 million), and higher selling, general
and administrative expenses ($14 million).
• The increase in Asia was due to favorable margin rates ($32 million) and higher volumes ($19 million), partially offset
by higher selling, general and administrative expenses ($34 million), the unfavorable impact of foreign currency translation
($5 million) and lower equity income ($1 million).
• The decrease in Other was due to fiscal 2012 gains on business divestitures net of transaction costs ($43 million), a fiscal
2013 loss on business divestiture including transaction costs ($22 million), higher selling, general and administrative
expenses ($21 million), lower operating income due to fiscal 2012 divestitures ($11 million), contract related charges ($7