Earnings Per Share

6 Months Ended

Mar. 31, 2016

The Company presents both basic and diluted earnings per share (EPS) amounts. Basic EPS is calculated by dividing net income attributable to Johnson Controls, Inc. by the weighted average number of common shares outstanding during the reporting period. Diluted EPS is calculated by dividing net income attributable to Johnson Controls, Inc. by the weighted average number of common shares and common equivalent shares outstanding during the reporting period that are calculated using the treasury stock method for stock options, unvested restricted stock and unvested performance share awards. The treasury stock method assumes that the Company uses the proceeds from the exercise of stock option awards to repurchase common stock at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the grantee will pay in the future, compensation cost for future service that the Company has not yet recognized and any windfall tax benefits that would be credited to capital in excess of par value when the award generates a tax deduction. If there would be a shortfall resulting in a charge to capital in excess of par value, such an amount would be a reduction of the proceeds. For unvested restricted stock and unvested performance share awards, assumed proceeds under the treasury stock method would include unamortized compensation cost and windfall tax benefits or shortfalls.

The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share (in millions):



	Three Months Ended March 31,					Six Months Ended March 31,
	2016			2015		2016			2015
Income (Loss) Available to Common Shareholders
Income (loss) from continuing operations	$	(530	)	$	452	$	(80	)	$	933
Income from discontinued operations	—			77		—			103
Basic and diluted income (loss) available to common shareholders	$	(530	)	$	529	$	(80	)	$	1,036

Weighted Average Shares Outstanding
Basic weighted average shares outstanding	648.2			654.4		648.0			657.9
Effect of dilutive securities:
Stock options, unvested restricted stock and unvested performance share awards	—			6.8		—			6.8
Diluted weighted average shares outstanding	648.2			661.2		648.0			664.7

Antidilutive Securities
Options to purchase common shares	—			0.5		—			0.4

For the three and six months ended March 31, 2016, the total number of potential dilutive shares due to stock options, unvested restricted stock and unvested performance share awards was 3.9 million and 4.5 million, respectively. However, these items were not included in the computation of diluted loss per share for the three and six months ended March 31, 2016, since to do so would decrease the loss per share.

During the three months ended March 31, 2016 and 2015, the Company declared a dividend of $0.29 and $0.26, respectively, per common share. During the six months ended March 31, 2016 and 2015, the Company declared two quarterly dividends totaling $0.58 and $0.52, respectively, per common share. The Company paid all dividends in the month subsequent to the end of each fiscal quarter.