Johnson Controls 2014 Annual Report Download - page 99

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99
(1) Fiscal 2014 includes $617 million of plan assets and $626 million of projected benefit obligations transferred to assets
and liabilities held for sale on the consolidated statement of financial position for non-U.S. plans. The prepaid benefit
cost and accrued benefit liability transferred are $24 million and $33 million, respectively. The plan assets transferred
are comprised of $553 million of Level 1 investments and $64 million of Level 2 investments. The Level 1 investments,
by asset category, are cash, equity securities, fixed income securities, real estate and commodities in the amounts of $11
million, $110 million, $356 million, $70 million and $6 million, respectively. The Level 2 investments are hedge fund
investments. The weighted average discount rate and rate of compensation increase assumptions at September 30, 2014
are 2.30% and 2.10%, respectively.
Fiscal 2013 includes $14 million of projected benefit obligations transferred to liabilities held for sale on the consolidated
statement of financial position for non-U.S. plans.
Refer to Note 3, "Discontinued Operations," of the notes to consolidated financial statements for further information
regarding the Company's disposal groups classified as held for sale.
(2) Plan assets and obligations are determined based on a September 30 measurement date at September 30, 2014 and 2013.
(3) The Company considers the expected benefit payments on a plan-by-plan basis when setting assumed discount rates. As
a result, the Company uses different discount rates for each plan depending on the plan jurisdiction, the demographics of
participants and the expected timing of benefit payments. For the U.S. pension and postretirement plans, the Company
uses a discount rate provided by an independent third party calculated based on an appropriate mix of high quality bonds.
For the non-U.S. pension and postretirement plans, the Company consistently uses the relevant country specific benchmark
indices for determining the various discount rates.
Accumulated Other Comprehensive Income
The amounts in accumulated other comprehensive income on the consolidated statement of financial position, exclusive of tax
impacts, that have not yet been recognized as components of net periodic benefit cost at September 30, 2014 are as follows (in
millions):
Pension
Benefits Postretirement
Benefits
Accumulated other comprehensive loss (income)
Net transition obligation $ 1 $ —
Net prior service credit (7)(3)
Total $(6) $ (3)
The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost
over the next fiscal year are shown below (in millions):
Pension
Benefits Postretirement
Benefits
Amortization of:
Net transition obligation $ — $ —
Net prior service cost credit (1)(1)
Total $(1) $ (1)