Johnson Controls 2015 Annual Report Download - page 71

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71
There were no amounts related to the Automotive Experience Electronics business classified as discontinued operations for the
fiscal year ended September 30, 2015. The following table summarizes the results of the Automotive Experience Electronics
business, classified as discontinued operations for the fiscal years ended September 30, 2014 and 2013 (in millions):
Year Ended September 30,
2014 2013
Net sales $ 1,027 $ 1,320
Income (loss) from discontinued operations before income taxes (8) 578
Provision for income taxes on discontinued operations 202 472
Income from discontinued operations attributable to
noncontrolling interests, net of tax 8 5
Income (loss) from discontinued operations, net of tax $(218) $ 101
For the year ended September 30, 2014, the discontinued operations before income taxes included divestiture-related losses of
$80 million comprised of asset and investment impairment charges of $43 million, transaction costs of $27 million and severance
obligations of $10 million. For the year ended September 30, 2013, the discontinued operations before income taxes included a
$476 million gain on divestiture of the HomeLink® product line net of transaction costs, and $28 million of restructuring costs.
For the year ended September 30, 2014, the Company's effective tax rate for discontinued operations was different than the U.S.
federal statutory rate primarily due to a second quarter discrete non-cash tax charge of $180 million related to the repatriation of
foreign cash associated with the divestiture of the Electronics business and unbenefited foreign losses. For the year ended September
30, 2013, the Company's effective tax rate for discontinued operations was different than the U.S. federal statutory rate primarily
due to the tax consequences of the sale of the HomeLink® product line, the change in our assertion over reinvestment of foreign
undistributed earnings and unbenefited foreign losses.
Assets and Liabilities Held for Sale
The Company has determined that certain of its businesses met the criteria to be classified as held for sale. In April 2015, the
Company signed an agreement formally establishing the previously announced automotive interiors joint venture with Yanfeng
Automotive Trim Systems. The formation of the joint venture closed on July 2, 2015. The assets and liabilities to be contributed
to the joint venture were classified as held for sale beginning in the third quarter of fiscal 2014. At March 31, 2015, the Company
determined certain product lines of the Automotive Experience Interiors segment which will not be contributed to the
aforementioned automotive interiors joint venture also met the criteria to be classified as held for sale. As a result, a majority of
the Automotive Experience Interiors business met the criteria to be classified as held for sale.
At September 30, 2015, $55 million of assets and $42 million of liabilities related to certain product lines of the Automotive
Experience Interiors segment which were not contributed to the automotive interiors joint venture were classified as held for sale.
This divestiture could result in a gain or loss on sale to the extent the ultimate selling price differs from the carrying value of the
net assets recorded. The Interiors businesses classified as held for sale do not meet the criteria to be classified as a discontinued
operation at September 30, 2015 primarily due to the Company's continuing involvement in these operations following the
divestiture.