Johnson Controls 2014 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2014 Johnson Controls annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 122

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122

44
Cash Flows
Year Ended September 30,
(in millions) 2014 2013
Cash provided by operating activities $ 2,395 $ 2,686
Cash used by investing activities (2,593)(580)
Cash used by financing activities (412)(1,214)
Capital expenditures (1,199)(1,377)
• The decrease in cash provided by operating activities was primarily due to unfavorable changes in accounts payable and
accrued liabilities, unfavorable changes in inventories, higher income tax payments and higher pension and postretirement
contributions, partially offset by favorable changes in accounts receivable.
• The increase in cash used by investing activities was primarily due to cash paid for the ADT acquisition and lower cash
received from business divestitures, partially offset by lower capital expenditures.
• The decrease in cash used by financing activities was primarily due to an increase in long-term debt incurred to finance
the acquisition of ADT, partially offset by current year stock repurchases and higher debt repayments. Refer to Note 9,
"Debt and Financing Arrangements," of the notes to consolidated financial statements for further discussion on debt
issuances and debt levels.
• The decrease in capital expenditures in the current year is primarily related to prior year capacity expansion and vertical
integration efforts in the Power Solutions business.
Capitalization
September 30,
2014 September 30,
2013(in millions) Change
Short-term debt $ 183 $ 119
Current portion of long-term debt 140 819
Long-term debt 6,357 4,560
Total debt $ 6,680 $ 5,498 21%
Shareholders’ equity attributable to Johnson Controls, Inc. 11,311 12,314 -8%
Total capitalization $ 17,991 $ 17,812 1%
Total debt as a % of total capitalization 37% 31%
• The Company believes the percentage of total debt to total capitalization is useful to understanding the Company’s financial
condition as it provides a review of the extent to which the Company relies on external debt financing for its funding and
is a measure of risk to its shareholders.
• At September 30, 2014, a 100 million euro revolving credit facility, two 50 million euro revolving credit facilities, and a
37 million euro revolving credit facility expired. The Company entered into a new 100 million euro revolving credit facility
scheduled to expire in August 2015 and two new 50 million euro credit facilities scheduled to expire in August and September
2015, respectively. The Company also entered into a new 37 million euro credit facility scheduled to expire in September
2015. There were no draws on the facilities in fiscal 2014.
• At September 30, 2014, a $50 million revolving credit facility expired. The Company entered into a new $50 million
revolving credit facility scheduled to expire in September 2015. There were no draws on this facility during fiscal 2014.
• In September 2014, the Company retired a $500 million, floating rate term loan plus accrued interest that matured in
September 2014. The Company also retired a $150 million, floating rate term loan plus accrued interest initially scheduled
to mature in January 2015.
• In June 2014, the Company issued $300 million aggregate principal amount of 1.4% senior unsecured fixed rate notes due
in fiscal 2018, $500 million aggregate principal amount of 3.625% senior unsecured fixed rate notes due in fiscal 2024,