Johnson Controls 2012 Annual Report Download - page 105

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105
Summarized balance sheet data as of September 30 is as follows (in millions):
2012
2011
Current assets
$
3,339
$
3,000
Noncurrent assets
1,648
1,120
Total assets
4,987
4,120
Current liabilities
$
2,501
$
2,188
Noncurrent liabilities
553
378
Shareholders' equity
1,933
1,554
Total liabilities and shareholders' equity
4,987
4,120
Summarized income statement data for the years ended September 30 is as follows (in millions):
2012
2011
2010
Net sales
$
9,261
$
8,468
$
7,378
Gross profit
1,423
1,154
1,086
Net income attributable to the entity
664
526
477
20. COMMITMENTS AND CONTINGENCIES
The Company accrues for potential environmental liabilities in a manner consistent with accounting principles
generally accepted in the United States; that is, when it is probable a liability has been incurred and the amount of
the liability is reasonably estimable. Reserves for environmental liabilities totaled $25 million and $30 million at
September 30, 2012 and 2011, respectively. The Company reviews the status of its environmental sites on a
quarterly basis and adjusts its reserves accordingly. Such potential liabilities accrued by the Company do not take
into consideration possible recoveries of future insurance proceeds. They do, however, take into account the likely
share other parties will bear at remediation sites. It is difficult to estimate the Company's ultimate level of liability at
many remediation sites due to the large number of other parties that may be involved, the complexity of determining
the relative liability among those parties, the uncertainty as to the nature and scope of the investigations and
remediation to be conducted, the uncertainty in the application of law and risk assessment, the various choices and
costs associated with diverse technologies that may be used in corrective actions at the sites, and the often quite
lengthy periods over which eventual remediation may occur. Nevertheless, the Company does not currently believe
that any claims, penalties or costs in connection with known environmental matters will have a material adverse
effect on the Company's financial position, results of operations or cash flows. In addition, the Company has
identified asset retirement obligations for environmental matters that are expected to be addressed at the retirement,
disposal, removal or abandonment of existing owned facilities, primarily in the Power Solutions business. At
September 30, 2012 and 2011, the Company recorded conditional asset retirement obligations of $76 million and
$91 million, respectively.
The Company is involved in a number of product liability and various other casualty lawsuits incident to the
operation of its businesses. The Company maintains insurance coverages and records estimated costs for claims and
suits of this nature. It is management's opinion that none of these will have a material adverse effect on the
Company's financial position, results of operations or cash flows. Costs related to such matters were not material to
the periods presented.