Johnson Controls 2015 Annual Report Download - page 38

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38
In the third quarter of fiscal 2013, the Company resolved certain Mexican tax issues, which resulted in a $61 million benefit to
income tax expense.
Impacts of Tax Legislation and Change in Statutory Tax Rates
The "look-through rule," under subpart F of the U.S. Internal Revenue Code, expired for the Company on September 30, 2014 but
was extended retroactively to the beginning of the Company's 2015 fiscal year. The "look-through rule" provides an exception to
the U.S. taxation of certain income generated by foreign subsidiaries. The "look-through rule" previously expired for the Company
on September 30, 2012 but was extended in January 2013 retroactive to the beginning of the Company's 2013 fiscal year.
As a result of changes to Mexican tax law in the first quarter of fiscal 2014, the Company recorded a benefit to income tax expense
of $25 million. Tax legislation was also adopted in various other jurisdictions during the fiscal year ended September 30, 2014.
These law changes did not have a material impact on the Company's consolidated financial statements.
As a result of foreign law changes during the second quarter of fiscal 2013, the Company increased its total reserve for uncertain
tax positions, resulting in income tax expense of $17 million.
Income (Loss) From Discontinued Operations, Net of Tax
Year Ended
September 30,
(in millions) 2014 2013 Change
Income (loss) from discontinued operations,
net of tax $ (166) $ 203 *
* Measure not meaningful
Refer to Note 3, "Discontinued Operations," of the notes to consolidated financial statements for further information.
Income Attributable to Noncontrolling Interests
Year Ended
September 30,
(in millions) 2014 2013 Change
Income from continuing operations attributable
to noncontrolling interests $ 105 $ 102 3%
Income from discontinued operations
attributable to noncontrolling interests 23 17 35%
The increase in income from continuing operations attributable to noncontrolling interests for fiscal 2014 was primarily due to
higher income at certain Automotive Experience partially-owned affiliates, partially offset by lower income at certain Power
Solutions partially-owned affiliates and the effects of an increase in ownership percentage in a Power Solutions partially-owned
affiliate.
Refer to Note 3, "Discontinued Operations," of the notes to consolidated financial statements for further information regarding
the Company's discontinued operations.
Net Income Attributable to Johnson Controls, Inc.
Year Ended
September 30,
(in millions) 2014 2013 Change
Net income attributable to Johnson Controls, Inc. $ 1,215 $ 1,178 3%
The increase in net income attributable to Johnson Controls, Inc. was primarily due to lower restructuring and impairment costs,
a decrease in the income tax provision and higher gross profit, partially offset by higher selling, general and administrative expenses,
and a loss from discontinued operations. Fiscal 2014 diluted earnings per share attributable to Johnson Controls, Inc. was $1.80
compared to $1.71 in fiscal 2013.