Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2013

Carrying Amounts and Classification of Assets and Liabilities for Consolidated VIE's

The carrying amounts and classification of assets (none of which are restricted) and liabilities included in the Company’s consolidated statements of financial position for the consolidated VIEs are as follows (in millions):



	September 30,
	2013		2012
Current assets	$	273	$	199
Noncurrent assets	139		144
Total assets	$	412	$	343

Current liabilities	$	212	$	172
Noncurrent liabilities	39		25
Total liabilities	$	251	$	197

Impact of all Retrospective Adjustments Made to Financial Statements

The impact of all adjustments made to the consolidated financial statements presented is summarized in the following table (in millions, except per share data):



	2013
	Previous Method			As Reported			Effect of Change
Consolidated Statement of Income
Cost of sales
Products and systems	$	29,207		$	29,196		$	(11	)
Gross profit	6,767			6,778			11
Income before income taxes	2,454			2,465			11
Provision for income taxes	1,164			1,168			4
Net income	1,290			1,297			7
Net income attributable to Johnson Controls, Inc.	1,171			1,178			7
Earnings per share
Basic	1.71			1.72			0.01
Diluted	1.70			1.71			0.01

Consolidated Statement of Comprehensive Income (Loss)
Net income	$	1,290		$	1,297		$	7
Total comprehensive income	1,251			1,258			7

Consolidated Statement of Financial Position
Inventories	$	2,198		$	2,325		$	127
Other current assets	2,358			2,308			(50		)
Retained earnings	9,251			9,328			77

Consolidated Statement of Cash Flows
Cash provided by operating activities
Net income attributable to Johnson Controls, Inc.	$	1,171		$	1,178		$	7
Net income	1,290			1,297			7
Deferred income taxes	269			273			4
Inventories	(86		)	(97		)	(11		)

Consolidated Statement of Shareholders’ Equity Attributable to Johnson Controls, Inc.
Retained earnings at September 30, 2012	$	8,541		$	8,611		$	70
Retained earnings at September 30, 2013	9,251			9,328			77



	2012
	Previously Reported			Revised			Effect of Change
Consolidated Statement of Income
Cost of sales
Products and systems	$	28,839		$	28,909		$	70
Gross profit	6,218			6,148			(70		)
Income before income taxes	1,590			1,520			(70		)
Provision for income taxes	237			209			(28		)
Net income	1,353			1,311			(42		)
Net income attributable to Johnson Controls, Inc.	1,226			1,184			(42		)
Earnings per share
Basic	1.80			1.74			(0.06		)
Diluted	1.78			1.72			(0.06		)

Consolidated Statement of Comprehensive Income (Loss)
Net income	$	1,353		$	1,311		$	(42	)
Total comprehensive income	1,161			1,119			(42		)

Consolidated Statement of Financial Position
Inventories	$	2,227		$	2,343		$	116
Other current assets	2,873			2,827			(46		)
Retained earnings	8,541			8,611			70

Consolidated Statement of Cash Flows
Cash provided by operating activities
Net income attributable to Johnson Controls, Inc.	$	1,226		$	1,184		$	(42	)
Net income	1,353			1,311			(42		)
Deferred income taxes	(206		)	(234		)	(28		)
Inventories	39			109			70

Consolidated Statement of Shareholders’ Equity Attributable to Johnson Controls, Inc.
Retained earnings at September 30, 2011	$	7,838		$	7,950		$	112
Retained earnings at September 30, 2012	8,541			8,611			70



	2011
	Previously Reported			Revised			Effect of Change
Consolidated Statement of Income
Cost of sales
Products and systems	$	27,675		$	27,674		$	(1	)
Gross profit	6,058			6,059			1
Income before income taxes	1,789			1,790			1
Provision for income taxes	257			258			1
Net income	1,532			1,532			—
Net income attributable to Johnson Controls, Inc.	1,415			1,415			—
Earnings per share
Basic	2.09			2.09			—
Diluted	2.06			2.06			—

Consolidated Statement of Comprehensive Income (Loss)
Net income	$	1,532		$	1,532		$	—
Total comprehensive income	1,382			1,382			—

Consolidated Statement of Cash Flows
Cash provided by operating activities
Net income attributable to Johnson Controls, Inc.	$	1,415		$	1,415		$	—
Net income	1,532			1,532			—
Deferred income taxes	(257		)	(256		)	1
Inventories	(387		)	(388		)	(1		)

Consolidated Statement of Shareholders’ Equity Attributable to Johnson Controls, Inc.
Retained earnings at September 30, 2010	$	6,890		$	7,002		$	112
Retained earnings at September 30, 2011	7,838			7,950			112

- Definition

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 01

-Paragraph b

-Subparagraph 6

-Article 10

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 270

-SubTopic 10

-Section 45

-Paragraph 13

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-Topic 270

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-Publisher FASB

-Name Accounting Standards Codification

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-Publisher FASB

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-Publisher FASB

-Name Accounting Standards Codification

-Glossary Direct Effects of a Change in Accounting Principle

-URI http://asc.fasb.org/extlink&oid=6510796

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Indirect Effects of a Change in Accounting Principle

-URI http://asc.fasb.org/extlink&oid=6515603

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-Publisher FASB

-Name Accounting Standards Codification

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-URI http://asc.fasb.org/extlink&oid=6503790

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-SubTopic 10

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-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22583-107794

+ Details

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References+ Details