Johnson Controls 2015 Annual Report Download - page 113

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113
JOHNSON CONTROLS, INC. AND SUBSIDIARIES
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
(In millions)
Year Ended September 30, 2015 2014 2013
Accounts Receivable - Allowance for Doubtful Accounts
Balance at beginning of period $ 72 $ 68 $ 78
Provision charged to costs and expenses 41 50 68
Reserve adjustments (15)(22)(50)
Accounts charged off (16)(19)(27)
Acquisition of businesses 1 1 1
Divestiture of businesses — — (1)
Currency translation (1)(1) —
Transfers to held for sale — (5)(1)
Balance at end of period $ 82 $ 72 $ 68
Deferred Tax Assets - Valuation Allowance
Balance at beginning of period $ 1,285 $ 1,172 $ 766
Allowance provision for new operating and other loss
carryforwards 23 121 165
Allowance provision (benefit) adjustments (52)(8) 250
Transfers to held for sale — — (9)
Balance at end of period $ 1,256 $ 1,285 $ 1,172
ITEM 9 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
ITEM 9A CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has
evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under
the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. Based
on such evaluations, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of
such period, the Company’s disclosure controls and procedures are effective in recording, processing, summarizing, and reporting,
on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange
Act, and that information is accumulated and communicated to the Company’s management, including the Company’s Chief
Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Management’s Report on Internal Control Over Financial Reporting
The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as
such term is defined in Exchange Act Rule 13a-15(f). The Company’s management, with the participation of the Company’s Chief
Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s internal control over financial
reporting based on the framework in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on this evaluation, the Company’s management has concluded that, as of
September 30, 2015, the Company’s internal control over financial reporting was effective.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to risk that controls may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.