Johnson Controls 2013 Annual Report Download - page 73

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73
plans and estimates management is using to operate the underlying business, there is significant judgment in determining the
expected future cash flows attributable to the Interiors business. The impairment charge is a non-cash expense that was recorded
within restructuring and impairment costs on the consolidated statement of income and did not adversely affect the Company's
debt position, cash flow, liquidity or compliance with financial covenants.
The Company’s other intangible assets, primarily from business acquisitions valued based on independent appraisals, consisted
of (in millions):
September 30, 2013 September 30, 2012
Gross
Carrying
Amount Accumulated
Amortization Net
Gross
Carrying
Amount Accumulated
Amortization Net
Amortized intangible assets
Patented technology $ 92 $ (53) $ 39 $ 188 $ (113) $ 75
Customer relationships 537 (138) 399 517 (117) 400
Miscellaneous 336 (91) 245 204 (47) 157
Total amortized intangible assets 965 (282) 683 909 (277) 632
Unamortized intangible assets
Trademarks 316 — 316 315 — 315
Total intangible assets $ 1,281 $ (282) $ 999 $ 1,224 $ (277) $ 947
Amortization of other intangible assets for the fiscal years ended September 30, 2013, 2012 and 2011 was $75 million, $56 million
and $53 million, respectively. Excluding the impact of any future acquisitions, the Company anticipates amortization for fiscal
2014, 2015, 2016, 2017 and 2018 will be approximately $73 million, $73 million, $67 million, $62 million and $57 million,
respectively.
7. PRODUCT WARRANTIES
The Company offers warranties to its customers depending upon the specific product and terms of the customer purchase agreement.
A typical warranty program requires that the Company replace defective products within a specified time period from the date of
sale. The Company records an estimate for future warranty-related costs based on actual historical return rates and other known
factors. Based on analysis of return rates and other factors, the Company’s warranty provisions are adjusted as necessary. The
Company monitors its warranty activity and adjusts its reserve estimates when it is probable that future warranty costs will be
different than those estimates.
The Company’s product warranty liability is recorded in the consolidated statements of financial position in other current liabilities
if the warranty is less than one year and in other noncurrent liabilities if the warranty extends longer than one year.
The changes in the carrying amount of the Company’s total product warranty liability, including extended warranties for which
deferred revenue is recorded, for the fiscal years ended September 30, 2013 and 2012 were as follows (in millions):
Year Ended
September 30,
2013 2012
Balance at beginning of period $ 278 $ 301
Accruals for warranties issued during the period 272 224
Accruals from acquisitions and divestitures (1) (5)(1)
Accruals related to pre-existing warranties (including changes in estimates) (14)(21)
Settlements made (in cash or in kind) during the period (275)(221)
Currency translation —(4)
Balance at end of period $ 256 $ 278
(1) Fiscal 2013 includes $2 million of product warranties transferred to liabilities held for sale on the consolidated statement of
financial position. Refer to Note 3, "Assets and Liabilities Held for Sale," of the notes to consolidated financial statements for
further information regarding the Company's disposal groups classified as held for sale.