Johnson Controls 2010 Annual Report Download - page 38

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38
Interest Refund Claim
In the second quarter of fiscal 2009, the Company filed a claim for refund with the Internal Revenue Service related
to interest computations of prior tax payments and refunds. The refund claim resulted in a tax provision decrease of
$6 million.
Impacts of Tax Legislation and Change in Statutory Tax Rates
In fiscal 2009, the Company obtained High Tech Enterprise status from the Chinese Tax Bureaus for various
Chinese subsidiaries. This status allows the entities to benefit from a 15% tax rate.
In February 2009, Wisconsin enacted numerous changes to Wisconsin income tax law as part of the Budget
Stimulus and Repair Bill, Wisconsin Act 2. These changes became effective in the Company's tax year ended
September 30, 2010. The major changes included an adoption of corporate unitary combined reporting and an
expansion of the related entity expense add back provisions. These Wisconsin tax law changes did not have a
material impact on the Company’s consolidated financial condition, results of operations or cash flows.
Various other tax legislation was adopted in the twelve months ended September 30, 2009. None of these changes
had a material impact on the Company’s consolidated financial condition, results of operations or cash flows.
Income Attributable to Noncontrolling Interests
Year Ended
September 30,
(in millions)
2009
2008
Change
Income (loss) attributable to
noncontrolling interests
$
(12)
$
24
*
* Measure not meaningful
The decrease in income attributable to noncontrolling interests was primarily due to losses at a power solutions
joint venture and certain automotive experience joint ventures in North America because of the decline in the
global automotive industry.
Net Income Attributable to Johnson Controls, Inc.
Year Ended
September 30,
(in millions)
2009
2008
Change
Net income (loss) attributable to
Johnson Controls, Inc.
$
(338)
$
979
*
* Measure not meaningful
Net loss attributable to Johnson Controls, Inc. for fiscal 2009 was $338 million, $1.3 billion less than prior
year’s net income attributable to Johnson Controls, Inc. of $979 million, primarily due to lower volumes mainly
in the automotive experience business, lead costs not recovered through pricing, first quarter impairment
charges recorded on an equity investment in the North American unitary products group in building efficiency
and certain fixed assets in the automotive experience North America and Europe segments, a second quarter
restructuring charge, fourth quarter debt conversion costs, fourth quarter incremental warranty charges recorded
in the building efficiency North American unitary products segment, and the unfavorable impact of foreign
currency translation, partially offset by lower SG&A costs, a decrease in the provision for income taxes and loss
attributable to noncontrolling interests. Fiscal 2009 diluted loss per share was $0.57 compared to the prior
year’s diluted earnings per share of $1.63.