Segment Information

6 Months Ended

Mar. 31, 2016

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Segment Information

Segment Information

Effective October 1, 2015, the Company reorganized the reportable segments within its Building Efficiency business to align with its new management reporting structure and business activities. Prior to this reorganization, Building Efficiency was comprised of three reportable segments for financial reporting purposes: North America Systems and Service, Asia and Other. As a result of this change, Building Efficiency is now comprised of four reportable segments for financial reporting purposes: Systems and Service North America, Products North America, Asia and Rest of World. Historical information has been revised to reflect the new Building Efficiency reportable segments.

A summary of the significant Building Efficiency reportable segment changes is as follows:

• The North America Unitary Products business, Air Distribution Technologies business and refrigeration systems business, as well as heating, ventilating and air conditioning (HVAC) products installed for Navy and Marine customers, previously included in the "Other" segment, are now part of a new reportable segment named "Products North America."

• The building controls parts business in North America, previously included in the "North America Systems and Service" segment, is now part of the "Products North America" segment.

• The remainder of the "Other" segment has been renamed "Rest of World."

• Certain reportable segment allocation methodologies have been refined for centralized costs such as engineering and headquarters.

ASC 280, "Segment Reporting," establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in ASC 280, the Company has determined that it has seven reportable segments for financial reporting purposes. The Company’s seven reportable segments are presented in the context of its three primary businesses – Building Efficiency, Automotive Experience and Power Solutions.

Building Efficiency

Building Efficiency designs, produces, markets and installs HVAC and control systems that monitor, automate and integrate critical building segment equipment and conditions including HVAC, fire-safety and security in commercial buildings and in various industrial applications.

• Systems and Service North America provides products and services to non-residential building and industrial applications in the North American marketplace. The products and services include HVAC and controls systems, energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems.

• Products North America designs and produces heating and air conditioning solutions for residential and light commercial applications, and also markets products and refrigeration systems to the replacement and new construction markets in the North American marketplace. Products North America also includes HVAC products installed for Navy and Marine customers globally.

• Asia provides HVAC, controls and refrigeration systems and technical services to the Asian marketplace. Asia also includes the Johnson Controls-Hitachi Air Conditioning joint venture, which was formed October 1, 2015.

• Rest of World provides HVAC, controls and refrigeration systems and technical services to markets in Europe, the Middle East and Latin America.

Automotive Experience

Automotive Experience designs and manufactures interior systems and products for passenger cars and light trucks, including vans, pick-up trucks and sport utility/crossover vehicles.

• Seating produces automotive seat metal structures and mechanisms, foam, trim, fabric and complete seat systems.

• Interiors produces instrument panels, floor consoles and door panels.

Power Solutions

Power Solutions services both automotive original equipment manufacturers and the battery aftermarket by providing advanced battery technology, coupled with systems engineering, marketing and service expertise.

Management evaluates the performance of the segments based primarily on segment income, which represents income from continuing operations before income taxes and noncontrolling interests excluding net financing charges, significant restructuring and impairment costs, and net mark-to-market adjustments on pension and postretirement plans. General corporate and other overhead expenses are allocated to segments in determining segment income.

Financial information relating to the Company’s reportable segments is as follows (in millions):

	Net Sales
	Three Months Ended March 31,				Six Months Ended March 31,
	2016		2015		2016		2015
Building Efficiency
Systems and Service North America	$	1,034	$	959	$	2,018	$	1,916
Products North America	546		545		1,103		1,103
Asia	1,162		428		2,154		929
Rest of World	408		445		831		926
	3,150		2,377		6,106		4,874
Automotive Experience
Seating	4,177		4,141		8,263		8,276
Interiors	121		1,092		268		2,240
	4,298		5,233		8,531		10,516
Power Solutions	1,583		1,588		3,323		3,432
Total net sales	$	9,031	$	9,198	$	17,960	$	18,822

	Segment Income (Loss)
	Three Months Ended March 31,						Six Months Ended March 31,
	2016			2015			2016			2015
Building Efficiency
Systems and Service North America	$	88		$	84		$	181		$	148
Products North America	27			49			44			93
Asia	102			26			164			75
Rest of World	4			7			(1		)	7
	221			166			388			323
Automotive Experience
Seating	184			229			350			430
Interiors	33			21			45			54
	217			250			395			484
Power Solutions	264			264			606			579
Total segment income	$	702		$	680		$	1,389		$	1,386
Restructuring and impairment costs	(229		)	—			(229		)	—
Net financing charges	(74		)	(69		)	(142		)	(140		)
Income from continuing operations before income taxes	$	399		$	611		$	1,018		$	1,246