Johnson Controls 2015 Annual Report Download - page 40

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40
Automotive Experience
Net Sales
for the Year Ended
September 30,
Segment Income (Loss)
for the Year Ended
September 30,
(in millions) 2014 2013 Change 2014 2013 Change
Seating $ 17,531 $ 16,285 8% $ 853 $ 686 24%
Interiors 4,501 4,176 8% (1)(19) 95%
$ 22,032 $ 20,461 8% $ 852 $ 667 28%
Net Sales:
• The increase in Seating was due to higher volumes ($1.0 billion), incremental sales related to business acquisitions ($139
million), favorable sales mix ($115 million) and the favorable impact of foreign currency translation ($44 million), partially
offset by lower volumes due to a prior year business divestiture ($53 million), and net unfavorable pricing and commercial
settlements ($25 million).
• The increase in Interiors was due to higher volumes ($346 million), net favorable pricing and commercial settlements
($79 million), and the favorable impact of foreign currency translation ($43 million), partially offset by lower volumes
related to business divestitures ($134 million) and unfavorable sales mix ($9 million).
Segment Income:
• The increase in Seating was due to higher volumes ($185 million), lower operating costs ($130 million), lower purchasing
costs ($88 million), higher equity income ($71 million), prior year distressed supplier costs ($21 million), lower
engineering expenses ($20 million), incremental operating income due to business acquisitions ($9 million) and the
favorable impact of foreign currency translation ($4 million), partially offset by prior year gains on acquisitions of partially-
owned affiliates ($106 million), higher selling, general and administrative expenses ($77 million), net unfavorable pricing
and commercial settlements ($58 million), unfavorable mix ($51 million), a prior year gain on business divestiture ($29
million), a prior year pension settlement gain ($26 million), lower operating income due to a prior year business divestiture
($9 million) and a current year pension settlement loss ($5 million).
• The increase in Interiors was due to higher volumes ($69 million), lower operating costs ($50 million), higher equity
income ($19 million), lower purchasing costs ($6 million), and lower selling, general and administrative expenses ($1
million), partially offset by a net loss on business divestitures ($86 million), lower operating income due to a business
divestiture ($15 million), unfavorable mix ($10 million), net unfavorable pricing and commercial settlements ($8 million),
a prior year pension settlement gain ($5 million), higher engineering expenses ($2 million) and a current year pension
settlement loss ($1 million).
Power Solutions
Year Ended
September 30,
(in millions) 2014 2013 Change
Net sales $ 6,632 $ 6,358 4%
Segment income 1,052 999 5%
• Net sales increased due to incremental sales related to a business acquisition ($141 million), higher sales volumes ($74
million), favorable pricing and product mix ($48 million), and the favorable impact of foreign currency translation ($30
million), partially offset by the impact of lower lead costs on pricing ($19 million).
• Segment income increased due to favorable product mix including lead acquisition costs and battery cores ($81 million),
lower operating costs ($54 million), higher volumes ($21 million), a gain on acquisition of a partially-owned affiliate
($19 million), incremental operating income related to a business acquisition ($14 million) and the favorable impact of
foreign currency translation ($3 million), partially offset by higher selling, general and administrative expenses ($53
million), prior year favorable legal settlements ($20 million), higher transportation costs ($20 million), a prior year pension
settlement gain ($20 million), a prior year change in asset retirement obligations ($17 million), a current year pension
settlement loss ($5 million) and lower equity income ($4 million).