Segment Information

12 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

SEGMENT INFORMATION

18. SEGMENT INFORMATION

Effective October 1, 2010, the building efficiency business of the Company reorganized its management reporting structure to reflect its current business activities.

Prior to this reorganization, building efficiency was comprised of six reportable segments for financial reporting purposes (North America systems, North America service, North America unitary products, global workplace solutions, Europe and rest of world). As a result of this change, building efficiency is now comprised of five reportable segments for financial reporting purposes (North America systems, North America service, global workplace solutions, Asia and other).

A summary of the significant building efficiency reportable segment changes is as follows:

• The systems and services businesses in Asia, previously included in the rest of world segment, are now part of a new reportable segment named “Asia.”

• The former Europe segment is now included in the former rest of world segment, which has been renamed “other.”

• The former North America unitary products segment is now included in the other segment.

The Company’s financial statements reflect the new building efficiency reportable segment structure and certain building efficiency cost allocation methodology changes. The changes in allocation methodology more specifically allocate engineering and other building efficiency costs to the reportable segments. Prior year building efficiency reportable segment information has been revised to conform to this presentation.

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 nine reportable segments for financial reporting purposes. The Company’s nine 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 heating, ventilating and air conditioning (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.

• North America systems designs, produces, markets and installs mechanical equipment that provides heating and cooling in North American non-residential buildings and industrial applications as well as control systems that integrate the operation of this equipment with other critical building systems.

• North America service provides technical services including inspection, scheduled maintenance, repair and replacement of mechanical and control systems in North America, as well as the retrofit and service components of performance contracts and other solutions.

• Global workplace solutions provides on-site staff for complete real estate services, facility operation and management to improve the comfort, productivity, energy efficiency and cost effectiveness of building systems around the globe.

• Asia provides HVAC and refrigeration systems and technical services to the Asian marketplace.

• Other provides HVAC and refrigeration systems and technical services to markets in Europe, the Middle East and Latin America. Other also designs and produces heating and air conditioning solutions for residential and light commercial applications and markets products to the replacement and new construction markets.

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 in North America, Europe and Asia. Automotive experience systems and products include complete seating systems and components; cockpit systems, including instrument panels and clusters, information displays and body controllers; overhead systems, including headliners and electronic convenience features; floor consoles; and door systems.

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, debt conversion costs and significant restructuring costs. General corporate and other overhead expenses are allocated to business segments in determining segment income. Financial information relating to the Company’s reportable segments is as follows (in millions):

	Year Ended September 30,
	2011		2010		2009
Net Sales
Building efficiency
North America systems	$	2,343	$	2,142	$	2,222
North America service		2,305		2,127		2,168
Global workplace solutions		4,153		3,288		2,832
Asia		1,840		1,422		1,293
Other		4,252		3,823		3,978
		14,893		12,802		12,493
Automotive experience
North America		7,431		6,765		4,631
Europe		10,267		8,019		6,287
Asia		2,367		1,826		1,098
		20,065		16,610		12,016
Power solutions		5,875		4,893		3,988
Total net sales	$	40,833	$	34,305	$	28,497

	Year Ended September 30,
	2011			2010			2009
Segment Income (Loss)
Building efficiency
North America systems	$	239		$	206		$	259
North America service (1)		113			117			188
Global workplace solutions (2)		16			40			58
Asia (3)		249			178			170
Other (4)		99			132			(278	)
		716			673			397
Automotive experience
North America (5)		404			379			(333	)
Europe (6)		114			105			(212	)
Asia (7)		243			107			4
		761			591			(541	)
Power solutions (8)		808			669			406
Total segment income	$	2,285		$	1,933		$	262
Net financing charges		(174	)		(170	)		(239	)
Debt conversion costs		—			—			(111	)
Restructuring costs		—			—			(230	)
Income (loss) before income taxes	$	2,111		$	1,763		$	(318	)

	September 30,
	2011		2010		2009
Assets
Building efficiency
North America systems	$	1,300	$	1,354	$	1,301
North America service		1,581		1,511		1,481
Global workplace solutions		1,228		1,012		860
Asia		1,247		1,236		1,014
Other		4,115		3,925		3,833
		9,471		9,038		8,489
Automotive experience
North America		3,863		3,392		3,259
Europe		7,348		5,390		5,386
Asia		1,587		1,345		1,087
		12,798		10,127		9,732
Power solutions		6,638		5,478		4,278
Unallocated		769		1,100		1,589
Total	$	29,676	$	25,743	$	24,088

	Year Ended September 30,
	2011		2010		2009
Depreciation/Amortization
Building efficiency
North America systems	$	10	$	11	$	9
North America service		25		23		19
Global workplace solutions		18		16		13
Asia		15		15		14
Other		69		73		79
		137		138		134
Automotive experience
North America		138		147		198
Europe		254		213		220
Asia		27		31		32
		419		391		450
Power solutions		175		162		161
Total	$	731	$	691	$	745

	Year Ended September 30,
	2011		2010		2009
Capital Expenditures
Building efficiency
North America systems	$	6	$	14	$	12
North America service		17		32		55
Global workplace solutions		32		17		9
Asia		22		13		12
Other		91		43		44
		168		119		132
Automotive experience
North America		210		123		104
Europe		383		225		235
Asia		45		38		30
		638		386		369
Power solutions		519		272		146
Total	$	1,325	$	777	$	647

(1)	Building efficiency — North America service segment income for the year ended September 30, 2011 includes $2 million of equity income.
(2)	Building efficiency — Global workplace solutions segment income for the year ended September 30, 2009 excludes $1 million of restructuring costs.
(3)	Building efficiency — Asia segment income for the year ended September 30, 2009 excludes $2 million of restructuring costs. For the years ended September 30, 2011, 2010 and 2009, Asia segment income includes $3 million, $2 million and $1 million, respectively, of equity income.
(4)	Building efficiency — Other segment income for the year ended September 30, 2009 excludes $21 million of restructuring costs. For the years ended September 30, 2011, 2010 and 2009, other segment income includes $17 million, $2 million and ($153) million, respectively, of equity income (loss).
(5)	Automotive experience — North America segment income for the year ended September 30, 2009 excludes $47 million of restructuring costs. For the years ended September 30, 2011, 2010 and 2009, North America segment income includes $20 million, $14 million and ($14) million, respectively, of equity income (loss).
(6)	Automotive experience — Europe segment income for the year ended September 30, 2009 excludes $86 million of restructuring costs. For the years ended September 30, 2011, 2010 and 2009, Europe segment income includes $7 million, $7 million and ($3) million, respectively, of equity income (loss).
(7)	Automotive experience — Asia segment income for the year ended September 30, 2009 excludes $23 million of restructuring costs. For the years ended September 30, 2011, 2010 and 2009, Asia segment income includes $187 million, $132 million and $70 million, respectively, of equity income.
(8)	Power solutions segment income for the year ended September 30, 2009 excludes $50 million of restructuring costs. For the years ended September 30, 2011, 2010 and 2009, power solutions segment income includes $62 million, $97 million and $22 million, respectively, of equity income.

The Company has significant sales to the automotive industry. In fiscal years 2011, 2010 and 2009, no customer exceeded 10% of consolidated net sales.

Geographic Segments

Financial information relating to the Company’s operations by geographic area is as follows (in millions):

	Year Ended September 30,
	2011		2010		2009
Net Sales
United States	$	14,367	$	12,892	$	11,099
Germany		4,590		3,542		2,877
Mexico		1,869		1,428		952
Other European countries		10,212		8,338		7,330
Other foreign		9,795		8,105		6,239
Total	$	40,833	$	34,305	$	28,497
Long-Lived Assets (Year-end)
United States	$	2,116	$	1,573	$	1,535
Germany		864		388		438
Mexico		540		464		403
Other European countries		1,356		1,071		1,118
Other foreign		740		600		492
Total	$	5,616	$	4,096	$	3,986

Net sales attributed to geographic locations are based on the location of the assets producing the sales. Long-lived assets by geographic location consist of net property, plant and equipment.