Johnson Controls 2015 Annual Report Download - page 44

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44
Cash Flows
Year Ended September 30,
(in millions) 2015 2014
Cash provided by operating activities $ 1,600 $ 2,395
Cash provided (used) by investing activities 470 (2,593)
Cash used by financing activities (1,821)(412)
Capital expenditures (1,135)(1,199)
• The decrease in cash provided by operating activities was primarily due to higher income tax payments associated with
tax audit settlements and transactions, unfavorable changes in accounts receivable and higher pension contributions,
partially offset by favorable changes in inventories.
• The increase in cash provided by investing activities was primarily due to cash received for the GWS divestitures in the
current year and cash paid for the ADT acquisition in the prior year.
• The increase in cash used by financing activities was primarily due to the prior year long-term debt incurred to finance the
acquisition of ADT and higher current year stock repurchases, partially offset by lower debt repayments.
• The decrease in capital expenditures in the current year is primarily related to a reduction in program spending for new
customer launches in the Automotive Experience business.
Capitalization
September 30,
2015 September 30,
2014(in millions) Change
Short-term debt $ 52 $ 183
Current portion of long-term debt 813 140
Long-term debt 5,745 6,357
Total debt $ 6,610 $ 6,680 -1%
Shareholders’ equity attributable to Johnson Controls, Inc. 10,376 11,311 -8%
Total capitalization $ 16,986 $ 17,991 -6%
Total debt as a % of total capitalization 39% 37%
• The Company believes the percentage of total debt to total capitalization is useful to understanding the Company’s financial
condition as it provides a review of the extent to which the Company relies on external debt financing for its funding and
is a measure of risk to its shareholders.
• At September 30, 2015 and 2014, the Company had committed bilateral euro denominated revolving credit facilities totaling
237 million euro. Additionally, at September 30, 2015 and 2014, the Company had committed bilateral U.S. dollar
denominated revolving credit facilities totaling $135 million and $185 million, respectively. In December 2014, the
Company terminated a $50 million committed revolving credit facility initially scheduled to mature in September 2015.
As of September 30, 2015, facilities in the amount of 237 million euro and $135 million are scheduled to expire in fiscal
2016. There were no draws on any of these revolving facilities in fiscal 2015.
• In September 2015, the Company retired, at maturity, $500 million, $150 million and $100 million floating rate term loans
plus accrued interest that were entered into during fiscal 2015.
• In June 2015, the Company entered into a five-year, 37 billion yen floating rate syndicated term loan scheduled to mature
in June 2020. Proceeds from the syndicated term loan were used for general corporate purposes.
• In May 2015, the Company made a partial repayment of 32 million euro in principal amount, plus accrued interest, of its
70 million euro floating rate credit facility scheduled to mature in November 2017.