Johnson Controls 2015 Annual Report Download - page 36

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36
transaction-related costs. Foreign currency translation was consistent year over year. Refer to the segment analysis below within
Item 7 for a discussion of segment income by segment.
Restructuring and Impairment Costs
Year Ended
September 30,
(in millions) 2014 2013 Change
Restructuring and impairment costs $ 324 $ 903 -64%
Refer to Note 16, "Significant Restructuring and Impairment Costs," of the notes to consolidated financial statements for further
disclosure related to the Company's restructuring plans.
Net Financing Charges
Year Ended
September 30,
(in millions) 2014 2013 Change
Net financing charges $ 244 $ 247 -1%
Net financing charges decreased slightly in fiscal 2014 as compared to fiscal 2013 primarily due to lower interest expense as a
result of lower interest rates, partially offset by higher average borrowing levels.
Equity Income
Year Ended
September 30,
(in millions) 2014 2013 Change
Equity income $ 395 $ 399 -1%
The decrease in equity income was primarily due to prior year gains on acquisitions of a partially-owned affiliates in the Automotive
Experience business ($106 million) and lower current year income at certain Power Solutions and Building Efficiency partially-
owned affiliates, partially offset by higher current year income at certain Automotive Experience partially-owned affiliates and
gains on acquisitions of partially-owned affiliates in the Power Solutions business ($19 million) and Building Efficiency business
($19 million). Refer to the segment analysis below within Item 7 for a discussion of segment income by segment.
Income Tax Provision
Year Ended
September 30,
(in millions) 2014 2013 Change
Income tax provision $ 407 $ 674 -40%
The effective rate is below the U.S. statutory rate for fiscal 2014 primarily due to the benefits of continuing global tax planning
initiatives and income in certain non-U.S. jurisdictions with a tax rate lower than the U.S. statutory tax rate partially offset by the
tax consequences of business divestitures, significant restructuring and impairment costs, and valuation allowance adjustments.
The effective rate is above the U.S. statutory rate for fiscal 2013 primarily due to the tax consequences of significant restructuring
and impairment costs, and valuation allowance and uncertain tax position adjustments, partially offset by favorable tax audit
resolutions, the benefits of continuing global tax planning initiatives and income in certain non-U.S. jurisdictions with a tax rate
lower than the U.S. statutory tax rate. Refer to Note 18, "Income Taxes," of the notes to consolidated financial statements for
further details.
Valuation Allowances
The Company reviews the realizability of its deferred tax asset valuation allowances on a quarterly basis, or whenever events or
changes in circumstances indicate that a review is required. In determining the requirement for a valuation allowance, the historical