Johnson Controls 2011 Annual Report Download - page 96

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96
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Year Ended
Year Ended
Year Ended
September 30, 2011
September 30, 2010
September 30, 2009
(in millions)
Beginning balance, September 30
$
1,262
$
1,049
$
814
Additions for tax positions related to the current year
150
253
236
Additions for tax positions of prior years
20
257
65
Reductions for tax positions of prior years
(62)
(158)
(29)
Settlements
(5)
(109)
(37)
Statute closings
(8)
(30)
-
Ending balance, September 30
$
1,357
$
1,262
$
1,049
The Company is regularly under audit by tax authorities, including major jurisdictions noted below:
Tax
Statute of
Jurisdiction
Limitations
Austria
5 years
Belgium
3 years
Brazil
5 years
Canada
5 years
China
3 to 5 years
Czech Republic
3 years
France
3 years
Germany
4 to 5 years
Italy
4 years
Japan
5 to 7 years
Mexico
5 years
Poland
5 years
Spain
4 years
United Kingdom
4 years
United States – Federal
3 years
United States – State
3 to 5 years
In the U.S., the fiscal years 2007 through 2009 are currently under exam by the Internal Revenue Service (IRS) and
fiscal years 2004 through 2006 are currently under IRS Appeals. Additionally, the Company is currently under
exam in the following major foreign jurisdictions:
Tax Jurisdiction
Tax Years Covered
Austria
2006 – 2008
Brazil
2005 – 2008
Canada
2007 – 2008
Czech Republic
2007 – 2009
France
2002 – 2010
Germany
2001 – 2009
Italy
2005 – 2009
Mexico
2003 – 2004
Poland
2007 – 2008
Spain
2006 – 2008
It is reasonably possible that certain tax examinations, appellate proceedings and/or tax litigation will conclude
within the next 12 months, the impact of which could be up to a $100 million adjustment to tax expense.
Based on published case law in a non-U.S. jurisdiction and the settlement of a tax audit during the third quarter of
fiscal 2010, the Company released net $38 million of reserves for uncertain tax positions, including interest and
penalties.