Johnson Controls 2013 Annual Report Download - page 34

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34
Gain on Business Divestitures - Net
Year Ended
September 30,
(in millions) 2012 2011 Change
Gain on business divestitures - net $ 40 $ — *
* Measure not meaningful
The increase in the gains on business divestitures net of transaction costs was due to fiscal 2012 divestitures in the Building
Efficiency business. There were no business divestitures in fiscal 2011.
Refer to Note 2, “Acquisitions and Divestitures,” of the notes to consolidated financial statements for further disclosure related to
the Company’s business divestitures.
Restructuring and Impairment Costs
Year Ended
September 30,
(in millions) 2012 2011 Change
Restructuring and impairment costs $ 297 $ — *
* Measure not meaningful
To better align its resources with its growth strategies and reduce the cost structure of its global operations to address the softness
in certain underlying markets, the Company committed to a significant restructuring plan in fiscal 2012 and recorded $297 million
of significant restructuring and impairment costs, of which $52 million was recorded in the third quarter and $245 million in the
fourth quarter of fiscal 2012. The restructuring charge related to cost reduction initiatives in the Company's Automotive Experience,
Building Efficiency and Power Solutions businesses and included workforce reductions and plant closures. The restructuring
actions are expected to be substantially complete by the end of fiscal 2014.
Refer to Note 16, “Significant Restructuring and Impairment Costs,” of the notes to consolidated financial statements for further
disclosure related to the Company's restructuring plans.
Net Financing Charges
Year Ended
September 30,
(in millions) 2012 2011 Change
Net financing charges $ 233 $ 174 34%
The increase in net financing charges was primarily due to higher debt levels in fiscal 2012 as compared to fiscal 2011.
Equity Income
Year Ended
September 30,
(in millions) 2012 2011 Change
Equity income $ 340 $ 298 14%
The increase in equity income was primarily due to a gain on redemption of a warrant for an existing partially-owned affiliate and
a gain on a fiscal 2012 acquisition of a partially-owned affiliate in the Power Solutions business, partially offset by a gain on a
fiscal 2011 acquisition of a partially-owned affiliate net of acquisition costs and related purchase accounting adjustments and a
partially-owned equity affiliate's restatement of prior period income in the Power Solutions business. The remaining increase in
equity income was primarily due to higher earnings at certain Building Efficiency partially-owned affiliates. Refer to the segment
analysis below within Item 7 for a discussion of segment income by segment.