Johnson Controls 2014 Annual Report Download - page 33

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33
incremental sales related to a business acquisition ($276 million), higher volumes in unitary products ($44 million) and
other businesses ($9 million), and the favorable impact of foreign currency translation ($6 million).
Segment Income:
• The decrease in North America Systems and Service was due to unfavorable mix and margin rates ($116 million), lower
volumes ($26 million), a prior year pension settlement gain ($12 million), net unfavorable current year contract related
charges ($9 million), the unfavorable impact of foreign currency translation ($3 million) and a current year pension
settlement loss ($3 million), partially offset by lower selling, general and administrative expenses ($118 million).
• The decrease in Global Workplace Solutions was due to the indemnification of certain costs associated with a previously
divested business ($25 million), a prior year pension curtailment gain resulting from a lost contract net of other contract
losses ($24 million), a prior year pension settlement gain ($14 million), lower volumes ($13 million) and a current year
pension settlement loss ($4 million), partially offset by lower selling, general and administrative expenses ($46 million),
and favorable margin rates ($16 million).
• The increase in Asia was due to higher volumes ($29 million), favorable margin rates ($19 million) and a gain on acquisition
of partially-owned affiliates ($19 million), partially offset by the unfavorable impact of foreign currency translation ($7
million), and higher selling, general and administrative expenses ($1 million).
• The decrease in Other was due to net unfavorable current year contract related charges in the Middle East ($50 million),
lower volumes ($40 million), acquisition related costs ($27 million), lower equity income ($12 million) and a prior year
pension settlement gain ($2 million), partially offset by lower selling, general and administrative expenses ($27 million),
a prior year loss on business divestiture including transaction costs ($22 million), incremental operating income due to
a business acquisition ($20 million), favorable margin rates ($8 million), net unfavorable prior year contract related
charges ($7 million) and higher operating income related to a prior year business divestiture ($3 million).
Automotive Experience
Net Sales
for the Year Ended
September 30,
Segment Income (Loss)
for the Year Ended
September 30,
(in millions) 2014 2013 Change 2014 2013 Change
Seating $ 17,531 $ 16,285 8% $ 880 $ 710 24%
Interiors 4,501 4,176 8% 6 (12) *
$ 22,032 $ 20,461 8% $ 886 $ 698 27%
* Measure not meaningful
Net Sales:
• The increase in Seating was due to higher volumes ($1.0 billion), incremental sales related to business acquisitions ($139
million), favorable sales mix ($115 million) and the favorable impact of foreign currency translation ($44 million), partially
offset by lower volumes due to a prior year business divestiture ($53 million), and net unfavorable pricing and commercial
settlements ($25 million).
• The increase in Interiors was due to higher volumes ($346 million), net favorable pricing and commercial settlements
($79 million), and the favorable impact of foreign currency translation ($43 million), partially offset by lower volumes
related to business divestitures ($134 million) and unfavorable sales mix ($9 million).
Segment Income:
• The increase in Seating was due to higher volumes ($185 million), lower operating costs ($130 million), lower purchasing
costs ($88 million), higher equity income ($71 million), prior year distressed supplier costs ($21 million), lower
engineering expenses ($20 million), incremental operating income due to business acquisitions ($9 million) and the
favorable impact of foreign currency translation ($4 million), partially offset by prior year gains on acquisitions of partially-
owned affiliates ($106 million), higher selling, general and administrative expenses ($80 million), net unfavorable pricing
and commercial settlements ($58 million), unfavorable mix ($51 million), a prior year gain on business divestiture ($29