Johnson Controls 2015 Annual Report Download - page 34

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34
Automotive Experience
Net Sales
for the Year Ended
September 30,
Segment Income (Loss)
for the Year Ended
September 30,
(in millions) 2015 2014 Change 2015 2014 Change
Seating $ 16,539 $ 17,531 -6% $ 928 $ 853 9%
Interiors 3,540 4,501 -21% 254 (1) *
$ 20,079 $ 22,032 -9% $ 1,182 $ 852 39%
* Measure not meaningful
Net Sales:
• The decrease in Seating was due to the unfavorable impact of foreign currency translation ($1.4 billion), partially offset
by higher volumes ($280 million), incremental sales related to a business acquisition ($57 million), and net favorable
pricing and commercial settlements ($51 million).
• The decrease in Interiors was due to the deconsolidation of the majority of the Interiors business on July 2, 2015 ($924
million), lower volumes related to a prior year business divestiture ($248 million), the unfavorable impact of foreign
currency translation ($229 million) and unfavorable sales mix ($138 million), partially offset by higher volumes ($506
million), net favorable pricing and commercial settlements ($45 million), and incremental sales related to business
acquisitions ($27 million).
Segment Income:
• The increase in Seating was due to net favorable pricing and commercial settlements ($65 million), lower purchasing
costs ($64 million), higher volumes ($56 million), lower selling, general and administrative expenses ($30 million), lower
engineering expenses ($29 million), higher equity income ($20 million), a gain on a business divestiture ($10 million),
incremental operating income related to a business acquisition ($7 million) and a prior year pension settlement loss ($5
million), partially offset by higher operating costs ($117 million), the unfavorable impact of foreign currency translation
($47 million), unfavorable mix ($31 million) and current year separation costs ($16 million).
• The increase in Interiors was due to a net gain on a business divestiture ($145 million), a prior year net loss on business
divestitures ($86 million), higher volumes ($67 million), lower operating costs ($23 million), lower selling, general and
administrative expenses ($16 million), lower purchasing costs ($6 million), lower engineering expenses ($5 million),
higher equity income ($3 million), incremental operating income related to business acquisitions ($3 million) and a prior
year pension settlement loss ($1 million), partially offset by current year transaction and integration costs ($38 million),
unfavorable mix ($27 million), lower operating income related to a current year business divestiture ($19 million), net
unfavorable pricing and commercial settlements ($12 million), and the unfavorable impact of foreign currency translation
($4 million).
Power Solutions
Year Ended
September 30,
(in millions) 2015 2014 Change
Net sales $ 6,590 $ 6,632 -1%
Segment income 1,153 1,052 10%
• Net sales decreased due to the unfavorable impact of foreign currency translation ($450 million), partially offset by higher
sales volumes ($291 million), and favorable pricing and product mix ($117 million).
• Segment income increased due to higher volumes ($90 million), lower operating costs ($79 million), favorable pricing
and product mix ($16 million), a prior year pension settlement loss ($5 million) and higher equity income ($2 million),
partially offset by the unfavorable impact of foreign currency translation ($52 million), higher selling, general and
administrative expenses ($20 million), and a prior year gain on acquisition of a partially-owned affiliate ($19 million).