Johnson Controls 2012 Annual Report Download - page 4

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4
segments are presented in the context of its three primary businesses - Building Efficiency, Automotive Experience
and Power Solutions.
Refer to Note 18, "Segment Information,‖ of the notes to consolidated financial statements for financial information
about business segments.
For the purpose of the following discussion of the Company's businesses, the five Building Efficiency reportable
segments and the three Automotive Experience reportable segments are presented together due to their similar
customers and the similar nature of their products, production processes and distribution channels.
Products/Systems and Services
Building Efficiency
Building Efficiency is a global leader in delivering integrated control systems, mechanical equipment, services and
solutions designed to improve the comfort, safety and energy efficiency of non-residential buildings and residential
properties with operations in 59 countries. Revenues come from facilities management, technical services and the
replacement and upgrade of HVAC controls and mechanical equipment in the existing buildings market, where the
Company’s large base of current customers leads to repeat business, as well as with installing controls and
equipment during the construction of new buildings. Customer relationships often span entire building lifecycles.
Building Efficiency sells its control systems, mechanical equipment and services primarily through the Company’s
extensive global network of sales and service offices. Some building controls and mechanical systems are sold to
distributors of air-conditioning, refrigeration and commercial heating systems throughout the world. Approximately
43% of Building Efficiency’s sales are derived from HVAC products and installed control systems for construction
and retrofit markets, including 13% of total sales related to new commercial construction. Approximately 57% of its
sales originate from its service offerings. In fiscal 2012, Building Efficiency accounted for 35% of the Company’s
consolidated net sales.
The Company’s systems include York® chillers, industrial refrigeration products, air handlers and other HVAC
mechanical equipment that provide heating and cooling in non-residential buildings. The Metasys® control system
monitors and integrates HVAC equipment with other critical building systems to maximize comfort while reducing
energy and operating costs. As the largest global supplier of HVAC technical services, Building Efficiency staffs,
optimizes and repairs building systems made by the Company and its competitors. The Company offers a wide
range of solutions such as performance contracting under which guaranteed energy savings are used by the customer
to fund project costs over a number of years. In addition, the Global Workplace Solutions segment provides full-
time on-site operations staff and real estate and energy consulting services to help customers, especially multi-
national companies, reduce costs and improve the performance of their facility portfolios. The Company’s on-site
staff typically performs tasks related to the comfort and reliability of the facility, and manages subcontractors for
functions such as foodservice, cleaning, maintenance and landscaping. The Company also produces air conditioning
and heating equipment for the residential market.
Automotive Experience
Automotive Experience designs and manufactures interior products and systems for passenger cars and light trucks,
including vans, pick-up trucks and sport/crossover utility vehicles. The business produces automotive interior
systems for original equipment manufacturers (OEMs) and operates approximately 240 wholly- and majority-owned
manufacturing or assembly plants, with operations in 33 countries worldwide. Additionally, the business has
partially-owned affiliates in Asia, Europe, North America and South America.
Automotive Experience products and systems include complete seating systems and components; cockpit systems,
including instrument panels and clusters, information displays and body controllers; overhead systems, including
headliners and electronic convenience features; floor consoles; and door systems. In fiscal 2012, Automotive
Experience accounted for 51% of the Company’s consolidated net sales.
The business operates assembly plants that supply automotive OEMs with complete seats on a "just-in-time/in-
sequence" basis. Seats are assembled to specific order and delivered on a predetermined schedule directly to an
automotive assembly line. Certain of the business’s other automotive interior systems are also supplied on a ―just-in-
time/in-sequence‖ basis. Foam, metal and plastic seating components, seat covers, seat mechanisms and other
components are shipped to these plants from the business’s production facilities or outside suppliers.