Johnson Controls 2015 Annual Report Download - page 75

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75
The changes in the carrying amount of the Company’s total product warranty liability, including extended warranties for which
deferred revenue is recorded, for the fiscal years ended September 30, 2015 and 2014 were as follows (in millions):
Year Ended
September 30,
2015 2014
Balance at beginning of period $ 319 $ 256
Accruals for warranties issued during the period 280 279
Accruals from acquisitions and divestitures — 3
Accruals related to pre-existing warranties (including changes in estimates) (11) 2
Settlements made (in cash or in kind) during the period (282)(218)
Currency translation (6)(3)
Balance at end of period $ 300 $ 319
8. LEASES
Certain administrative and production facilities and equipment are leased under long-term agreements. Most leases contain renewal
options for varying periods, and certain leases include options to purchase the leased property during or at the end of the lease
term. Leases generally require the Company to pay for insurance, taxes and maintenance of the property. Leased capital assets
included in net property, plant and equipment, primarily buildings and improvements, were $46 million and $55 million at
September 30, 2015 and 2014, respectively.
Other facilities and equipment are leased under arrangements that are accounted for as operating leases. Total rental expense for
the fiscal years ended September 30, 2015, 2014 and 2013 was $413 million, $459 million and $470 million, respectively.
Future minimum capital and operating lease payments and the related present value of capital lease payments at September 30,
2015 were as follows (in millions):
Capital
Leases Operating
Leases
2016 $ 9 $ 209
2017 8 146
2018 15 95
2019 5 66
2020 5 47
After 2020 15 65
Total minimum lease payments 57 $ 628
Interest (9)
Present value of net minimum lease payments $ 48
9. DEBT AND FINANCING ARRANGEMENTS
Short-term debt consisted of the following (in millions):
September 30,
2015 2014
Bank borrowings and commercial paper $ 52 $ 183
Weighted average interest rate on short-term debt outstanding 7.2% 3.8%
The Company has a $2.5 billion committed five-year credit facility scheduled to mature in August 2018. The facility is used to
support the Company’s outstanding commercial paper. There were no draws on the committed credit facility during the fiscal years
ended September 30, 2015 and 2014. Average outstanding commercial paper for the fiscal year ended September 30, 2015 was
$1,537 million, and there was none outstanding at September 30, 2015. Average outstanding commercial paper for the fiscal year
ended September 30, 2014 was $1,252 million, and there was none outstanding at September 30, 2014.