Johnson Controls 10-Q 3 Feb 10 2010 Q1 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	3 Months Ended Dec. 31, 2009	Mar. 31, 2009
Document and Company Information [Abstract]
Entity Registrant Name	JOHNSON CONTROLS INC
Entity Central Index Key	0000053669
Document Type	10-Q
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		7.1
Entity Common Stock, Shares Outstanding	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Position (Unaudited) (USD $)
In Millions	Dec. 31, 2009	Sep. 30, 2009	Dec. 31, 2008
Assets
Cash and cash equivalents	$791	$761	$202
Accounts receivable - net	5,154	5,528	5,063
Inventories	1,571	1,521	1,935
Other current assets	2,160	2,016	1,517
Current assets	9,676	9,826	8,717
Property, plant and equipment - net	3,918	3,986	4,115
Goodwill	6,506	6,542	6,392
Other intangible assets - net	735	746	757
Investments in partially-owned affiliates	760	718	703
Other noncurrent assets	2,210	2,270	1,620
Total assets	23,805	24,088	22,304
Liabilities and Equity
Short-term debt	361	658	985
Current portion of long-term debt	6	140	452
Accounts payable	4,504	4,434	3,779
Accrued compensation and benefits	853	872	804
Other current liabilities	2,663	2,612	2,521
Current liabilities	8,387	8,716	8,541
Long-term debt	3,077	3,168	3,176
Postretirement health and other benefits	209	255	228
Other noncurrent liabilities	2,576	2,610	1,817
Long-term liabilities	5,862	6,033	5,221
Commitments and contingencies (Note 19)
Shareholders' equity attributable to Johnson Controls, Inc.	9,353	9,138	8,313
Noncontrolling interests	203	201	229
Total equity	9,556	9,339	8,542
Total liabilities and equity	$23,805	$24,088	$22,304

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Dec. 31, 2009		3 Months Ended Dec. 31, 2008
Net sales
Products and systems	$6,676	[1]	$5,647	[1]
Services	1,732	[1]	1,689	[1]
Net sales	8,408		7,336
Cost of sales
Products and systems	5,756		5,273
Services	1,416		1,378
Cost of sales	7,172		6,651
Gross profit	1,236		685
Selling, general and administrative expenses	(883)		(859)
Net financing charges	(35)		(56)
Equity income (loss)	53		(136)
Income (loss) before income taxes	371		(366)
Provision for income taxes	5		242
Net income (loss)	366		(608)
Income attributable to noncontrolling interests	16		0
Net income (loss) attributable to Johnson Controls, Inc.	$350		($608)
Earnings (loss) per share
Basic	0.52		-1.02
Diluted	0.52		-1.02
[1]Products and systems consist of automotive experience and power solutions products and systems and building efficiency installed systems. Services are building efficiency technical and global workplace solutions.

1_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions	3 Months Ended Dec. 31, 2009	3 Months Ended Dec. 31, 2008
Operating Activities
Net income (loss) attributable to Johnson Controls, Inc.	$350	($608)
Income attributable to noncontrolling interests	16	0
Net income (loss)	366	(608)
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
Depreciation	169	181
Amortization of intangibles	11	9
Equity in earnings of partially-owned affiliates, net of dividends received	(12)	184
Deferred income taxes	(62)	300
Impairment charges	0	110
Equity-based compensation	20	20
Other	9	15
Changes in working capital, excluding acquisitions:
Accounts receivable	352	1,128
Inventories	(56)	78
Other current assets	(87)	85
Restructuring reserves	(58)	(52)
Accounts payable and accrued liabilities	143	(1,656)
Accrued income taxes	13	(111)
Cash provided (used) by operating activities	808	(317)
Investing Activities
Capital expenditures	(177)	(268)
Sale of property, plant and equipment	19	3
Acquisition of businesses, net of cash acquired	0	(22)
Recoverable customer engineering expenditures	(22)	(22)
Changes in long-term investments	(5)	(48)
Cash used by investing activities	(185)	(357)
Financing Activities
Increase (decrease) in short-term debt - net	(284)	549
Repayment of long-term debt	(240)	(9)
Payment of cash dividends	(77)	(77)
Other	8	29
Cash provided (used) by financing activities	(593)	492
Increase (decrease) in cash and cash equivalents	$30	($182)

Financial Statements

Financial Statements
	3 Months Ended Dec. 31, 2009 USD / shares
Financial Statements [Abstract]
Financial Statements	1. Financial Statements In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC). These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Johnson Controls, Inc. (the Company) Annual Report on Form 10-K for the year ended September30, 2009. The results of operations for the three month period ended December31, 2009 are not necessarily indicative of results for the Companys 2010 fiscal year because of seasonal and other factors. The consolidated financial statements include the accounts of Johnson Controls, Inc. and its domestic and non-U.S subsidiaries that are consolidated in conformity with U.S. GAAP. All significant intercompany transactions have been eliminated. Investments in partially-owned affiliates are accounted for by the equity method when the Companys interest exceeds 20% and the Company does not have a controlling interest. The financial results for the three month period ended December31, 2008 include an out of period adjustment made to correct an error related to the power solutions segment. The correction of the error, which reduced segment income by $33million in the three month period ended December31, 2008, primarily originated in fiscal 2007 and 2008 and resulted in the overstatement of inventory and understatement of cost of sales in prior periods. The Company determined that the impact of the error on the originating periods was immaterial, and accordingly a restatement of prior period amounts was not considered necessary. The Company also determined the impact of correcting the error in fiscal 2009 was not material. Under certain criteria as provided for in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC)810, Consolidation, the Company may consolidate a partially-owned affiliate when it has less than a 50% ownership. In order to determine whether to consolidate a partially-owned affiliate when the Company has less than a 50% ownership, we first determine if the entity is a variable interest entity (VIE). An entity is considered to be a VIE if it has one of the following characteristics: 1) the entity is thinly capitalized; 2) residual equity holders do not control the entity; 3) equity holders are shielded from economic losses or do not participate fully in the entitys residual economics; or 4) the entity was established with non-substantive voting. If the entity meets one of these characteristics, we then determine if the Company is the primary beneficiary of the VIE. The party exposed to the majori

New Accounting Standards

New Accounting Standards
	3 Months Ended Dec. 31, 2009 USD / shares
New Accounting Standards [Abstract]
New Accounting Standards	2. New Accounting Standards In December2009, the FASB issued Accounting Standards Update (ASU)No.2009-17, Consolidations (Topic 810): Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities. ASU No.2009-17 changes how a company determines when an entity that is insufficiently capitalized or is not controlled through voting should be consolidated. The determination of whether a company is required to consolidate an entity is based on, among other things, an entitys purpose and design and a companys ability to direct the activities of the entity that most significantly impact the entitys economic performance. This statement is effective for the Company beginning in the first quarter of fiscal 2011 (October1, 2010). The Company is assessing the potential impact that the adoption of ASU No.2009-17 will have on its consolidated financial condition and results of operations. In October2009, the FASB issued ASU No.2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements a consensus of the FASB Emerging Issues Task Force. ASU No.2009-13 establishes the accounting and reporting guidance for arrangements under which a vendor will perform multiple revenue-generating activities. Specifically, this ASU addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting. This guidance will be effective for the Company beginning in the first quarter of fiscal 2011 (October1, 2010) and, when adopted, will change the Companys accounting treatment for multiple-element revenue arrangements on a prospective basis. In December2008, the FASB issued guidance on an employers disclosures about plan assets of a defined benefit pension plan. The guidance requires enhanced transparency surrounding the types of plan assets and associated risks, as well as disclosure of information about fair value measurements of plan assets. This guidance is included in ASC 715, Compensation - Retirement Benefits, and is effective for the Company for the fiscal year ending September 30, 2010. The adoption of this guidance will have no impact on the Companys consolidated financial condition and results of operations. In December2007, the FASB issued guidance changing the accounting for business combinations in a number of areas including the treatment of contingent consideration, preacquisition contingencies, transaction costs, in-process research and development and restructuring costs. In addition, under this guidance changes in an acquired entitys deferred tax assets and uncertain tax positions after the measurement period will impact income tax expense. This guidance is included in ASC 805, Business Combinations, and is effective for the Company in the first quarter of fiscal 2010 (October1, 2009). This guidance changes the Companys accounting treatment for business combinations on a prospective basis. In December2007, the FASB issued guidance changing the accounting and reporting for minority interests, which will be recharacterized as noncontrolling interests and classified as a component of equity. This ne

Acquisition of Businesses

Acquisition of Businesses
	3 Months Ended Dec. 31, 2009 USD / shares
Acquisition of Businesses [Abstract]
Acquisition of Businesses	3. Acquisition of Businesses During the first quarter of fiscal 2010, the Company made no acquisitions. In the first quarter of fiscal 2009, the Company completed one acquisition for a purchase price of $27 million, of which $22million was paid as of December31, 2008. The acquisition was not material to the Companys consolidated financial statements. In connection with the acquisition, the Company recorded goodwill of $24million.

Percentage of Completion Contra

Percentage of Completion Contracts
	3 Months Ended Dec. 31, 2009 USD / shares
Percentage of Completion Contracts [Abstract]
Percentage of Completion Contracts	4. Percentage-of-Completion Contracts The building efficiency business records certain long-term contracts under the percentage-of-completion method of accounting. Under this method, sales and gross profit are recognized as work is performed based on the relationship between actual costs incurred and total estimated costs at completion. The Company records costs and earnings in excess of billings on uncompleted contracts within accounts receivable net and billings in excess of costs and earnings on uncompleted contracts within other current liabilities in the condensed consolidated statements of financial position. Amounts included within accounts receivable - net related to these contracts were $588million, $579million and $613million at December 31, 2009, September30, 2009 and December31, 2008, respectively. Amounts included within other current liabilities were $636million, $601million and $625million at December31, 2009, September30, 2009 and December31, 2008, respectively.

Inventories

Inventories
	3 Months Ended Dec. 31, 2009 USD / shares
Inventories [Abstract]
Inventories	5. Inventories Inventories consisted of the following (in millions): December 31, September 30, December 31, 2009 2009 2008 Raw materials and supplies $ 749 $ 712 $ 838 Work-in-process 223 225 271 Finished goods 689 674 910 FIFO inventories 1,661 1,611 2,019 LIFO reserve (90 ) (90 ) (84 ) Inventories $ 1,571 $ 1,521 $ 1,935

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	3 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Other Intangible Assets [Abstract]
Goodwill and Other Intangible Assets	6. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill in each of the Companys reporting segments for the nine month period ended September30, 2009 and the three month period ended December31, 2009 were as follows (in millions): Currency December 31, Business Translation September 30, 2008 Acquisitions and Other 2009 Building efficiency North America systems $ 515 $ $ 10 $ 525 North America service 657 11 668 North America unitary products 481 9 490 Global workplace solutions 178 (4 ) 174 Europe 418 (10 ) 408 Rest of world 532 55 587 Automotive experience North America 1,354 21 1 1,376 Europe 1,155 2 54 1,211 Asia 214 9 223 Power solutions 888 (8 ) 880 Total $ 6,392 $ 23 $ 127 $ 6,542 Currency September 30, Business Translation December 31, 2009 Acquisitions and Other 2009 Building efficiency North America systems $ 525 $ $ $ 525 North America service 668 668 North America unitary products 490 490 Global workplace solutions 174 174 Europe 408 (5 ) 403 Rest of world 587 (8 ) 579 Automotive experience North America 1,376 2 1,378 Europe 1,211 (12 ) 1,199 Asia 223 (9 ) 214 Power solutions 880 (4 ) 876 Total $ 6,542 $ $ (36 ) $ 6,506 The Companys other intangible assets, primarily from business acquisitions, are valued based on independent appraisals and consisted of (in millions): December 31, 2009 September 30, 2009 December 31, 2008 Gross Gross Gross Carrying Accumulated Carrying Accumulated Carrying Accumulated Amount Amortization Net Amount Amortization Net Amount Amortization Net Amortized intangible assets Patented technology $ 307 $ (196 ) $ 111 $ 308 $ (190 ) $ 118 $ 298 $ (170 ) $ 128 Unpatented technology 24 (12 ) 12 24 (12 ) 12 23 (10 ) 13 Customer relationships 344 (58 ) 286 345 (56 ) 289 343 (45 ) 298 Miscellaneous 45 (16 ) 29 43 (13 ) 30 33 (12 ) 21 Total amortized

Product Warranties

Product Warranties
	3 Months Ended Dec. 31, 2009 USD / shares
Product Warranties [Abstract]
Product Warranties	7. Product Warranties The Company offers warranties to its customers depending upon the specific product and terms of the customer purchase agreement. A typical warranty program requires that the Company replace defective products within a specified time period from the date of sale. The Company records an estimate for future warranty-related costs based on actual historical return rates and other known factors. Based on analysis of return rates and other factors, the adequacy of the Companys warranty provisions are adjusted as necessary. While the Companys warranty costs have historically been within its calculated estimates, the Company monitors its warranty activity and adjusts its reserve estimates when it is probable that future warranty costs will be different than those estimates. During the fourth quarter of fiscal 2009, the building efficiency North America unitary products segment increased its warranty reserve by $29million as a result of the Companys periodic warranty review process and analysis of return rates. The Companys product warranty liability is recorded in the consolidated statement of financial position in other current liabilities if the warranty is less than one year and in other noncurrent liabilities if the warranty extends longer than one year. The changes in the carrying amount of the Companys total product warranty liability for the three months ended December31, 2009 and 2008 were as follows (in millions): 2009 2008 Balance as of September 30 $ 344 $ 204 Accruals for warranties issued during the period 66 47 Accruals from acquisitions Accruals related to pre-existing warranties (including changes in estimates) Settlements made (in cash or in kind) during the period (77 ) (55 ) Currency translation (5 ) Balance as of December 31 $ 333 $ 191

Restructuring Costs

Restructuring Costs
	3 Months Ended Dec. 31, 2009 USD / shares
Restructuring Costs [Abstract]
Restructuring Costs	8. Restructuring Costs To better align the Companys cost structure with global automotive market conditions, the Company committed to a restructuring plan (2009 Plan) in the second quarter of fiscal 2009 and recorded a $230million restructuring charge. The restructuring charge relates to cost reduction initiatives in the Companys automotive experience, building efficiency and power solutions businesses and includes workforce reductions and plant consolidations. The Company expects to substantially complete the 2009 Plan by the end of 2010. The automotive-related restructuring actions target excess manufacturing capacity resulting from lower industry production in the European, North American and Japanese automotive markets. The restructuring actions in building efficiency are primarily in Europe where the Company is centralizing certain functions and rebalancing its resources to target the geographic markets with the greatest potential growth. Power solutions actions are focused on optimizing its manufacturing capacity as a result of lower overall demand for original equipment batteries resulting from lower vehicle production levels. Since the announcement of the 2009 Plan in March2009, the Company has experienced lower employee severance and termination benefit cash payouts than previously calculated for automotive experience Europe of approximately $43million, of which $15million was identified in the quarter ended December31, 2009, due to favorable severance negotiations and the decision to not close one of the previously planned plants in response to increased customer demand. In response to the depressed automotive industry in Europe, the Company has committed to the closure of one additional plant in Europe since the announcement of its 2009 Plan. The underspend of the initial 2009 Plan reserves will be utilized for this plant consolidation which is expected to occur in late fiscal 2010 and for additional costs to be incurred as part of power solutions and automotive experience Europes original cost reduction initiatives. The planned workforce reductions disclosed for the 2009 Plan have been updated for the Companys revised actions. The 2009 Plan includes workforce reductions of approximately 6,300 employees (2,900 for automotive experience North America, 1,700 for automotive experience Europe, 600 for automotive experience Asia, 200 for building efficiency North America, 400 for building efficiency Europe, 200 for building efficiency rest of world, and 300 for power solutions). Restructuring charges associated with employee severance and termination benefits are paid over the severance period granted to each employee and on a lump sum basis when required in accordance with individual severance agreements. As of December31, 2009, approximately 5,000 of the employees have been separated from the Company pursuant to the 2009 Plan. In addition, the 2009 Plan includes 9 plant closures (3 for automotive experience North America, 1 for automotive experience Europe, 3 for automotive experience Asia, 1 for building efficiency rest of world, and 1 for power solutions). As of December31, 2009, 6 of the 9

Research and Development

Research and Development
	3 Months Ended Dec. 31, 2009 USD / shares
Research and Development [Abstract]
Research and Development	9. Research and Development Expenditures for research activities relating to product development and improvement are charged against income as incurred and included within selling, general and administrative expenses in the consolidated statement of income. A portion of the costs associated with these activities is reimbursed by customers. Such expenditures amounted to $87million and $97 million for the three months ended December31, 2009 and 2008, respectively. These expenditures are net of customer reimbursements of $86million and $87million for the three months ended December31, 2009 and 2008, respectively.

Income Taxes

Income Taxes
	3 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	10. Income Taxes The more significant components of the Companys income tax provision from continuing operations for the three months ended December31, 2009 and 2008 are as follows (in millions): Three Months Ended December 31, 2009 Tax rate 2008 Tax rate Income taxes at annual effective rate $ 67 18.0 % $ (88 ) 24.0 % Discrete period items: Valuation allowance adjustments (93 ) 300 Uncertain tax positions 31 Impairment charges 30 Provision for income taxes $ 5 1.3 % $ 242 -66.1 % Effective Tax Rate In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances known at each interim period. On a quarterly basis, the actual effective tax rate is adjusted, as appropriate, based upon changed facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and each interim period thereafter. In the current fiscal quarter, the Companys estimated annual effective income tax rate of 18% is lower than the prior year rate of 24% during the three months ended December31, 2008, primarily due to change in the geographic split of income and global tax planning initiatives. Valuation Allowance Adjustment The Company reviews its deferred tax asset valuation allowances on a quarterly basis, or whenever events or changes in circumstances indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with any other positive or negative evidence. Since future financial results may differ from previous estimates, periodic adjustments to the Companys valuation allowances may be necessary. In the first quarter of fiscal 2010, the Company determined that it is more likely than not that a portion of the deferred tax assets in Brazil would be utilized. Therefore, the Company released $69million of valuation allowances. This is comprised of a $93million decrease in income tax expense offset by a $24million reduction in cumulative translation adjustments. In the first quarter of fiscal 2009, as a result of the rapid deterioration in the economic environment, several jurisdictions incurred unexpected losses in the first quarter that resulted in cumulative losses over the prior three years. As a result, and after considering tax planning initiatives and other positive and negative evidence, the Company determined that it was more likely than not that the deferred tax assets would not be utilized in several jurisdictions including France, Mexico, Spain and the United Kingdom. Therefore, the Company recorded a $300million valuation allowance as income tax expense. To the extent the Company improves its underlying operating results in these jurisdictions, these valuation allowan

Retirement Plans

Retirement Plans
	3 Months Ended Dec. 31, 2009 USD / shares
Retirement Plans [Abstract]
Retirement Plans	11. Retirement Plans The components of the Companys net periodic benefit costs associated with its defined benefit pension plans and other postretirement health and other benefits are shown in the tables below in accordance with ASC 715, Compensation Retirement Benefits (in millions): Pension Plans U.S. Plans Non-U.S. Plans Three Months Three Months Ended December 31, Ended December 31, 2009 2008 2009 2008 Service cost $ 17 $ 17 $ 9 $ 8 Interest cost 38 40 18 16 Expected return on plan assets (45 ) (45 ) (16 ) (13 ) Amortization of net actuarial loss 7 1 3 1 Net periodic benefit cost $ 17 $ 13 $ 14 $ 12 Postretirement Health and Other Benefits Three Months Ended December 31, 2009 2008 Service cost $ 1 $ 1 Interest cost 3 5 Amortization of net actuarial gain (1 ) Amortization of prior service credit (4 ) (2 ) Net periodic benefit cost $ $ 3

Debt And Financing Arrangements

Debt And Financing Arrangements
	3 Months Ended Dec. 31, 2009 USD / shares
Debt And Financing Arrangements [Abstract]
Debt And Financing Arrangements	12. Debt and Financing Arrangements During the quarter ended December31, 2009, the Company retired approximately $13million in principal amount of its fixed rate bonds that was scheduled to mature on January15, 2011. Additionally, the Company repurchased 1,685 bonds ($1,685,000 par value) of its 6.5% convertible senior notes maturing September30, 2012. The Company used cash to fund the repurchases. During the quarter ended December31, 2009, the Company retired its 12billion yen, three year, floating rate loan agreement that matured. Additionally, the Company retired its 7 billion yen, three year, floating rate loan agreement that was scheduled to mature on January 18, 2011. The Company used cash to repay the notes.

Earnings Per Share

Earnings Per Share
	3 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	13. Earnings Per Share The Company presents both basic and diluted earnings per share (EPS)amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted EPS is calculated by dividing net income 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. The treasury stock method assumes that the Company uses the proceeds from the exercise of 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 additional paid-in capital when the award generates a tax deduction. If there would be a shortfall resulting in a charge to additional paid-in capital, such an amount would be a reduction of the proceeds. The Companys outstanding equity units due 2042 and 6.5% convertible senior notes due 2012 are reflected in diluted earnings per share using the if-converted method. Under this method, if dilutive, the common stock is assumed issued as of the beginning of the reporting period and included in calculating diluted earnings per share. In addition, if dilutive, interest expense, net of tax, related to the outstanding equity units and convertible senior notes is added back to the numerator in calculating diluted earnings per share. The following table reconciles the numerators and denominators used to calculate basic and diluted earnings per share (in millions): Three Months Ended December 31, 2009 2008 Income Available to Common Shareholders Basic income (loss)available to common shareholders $ 350 $ (608 ) Interest expense, net of tax 2 Diluted income (loss)available to common shareholders $ 352 $ (608 ) Weighted Average Shares Outstanding Basic weighted average shares outstanding 670.6 593.5 Effect of dilutive securities: Stock options 5.8 Equity units 4.5 Convertible senior notes 0.1 Diluted weighted average shares outstanding 681.0 593.5 Antidilutive Securities Options to purchase common shares 2.3 For the three months ended December31, 2008, the total weighted average of potential dilutive shares due to stock options was 1.5million. However, these options were not included in the computation of diluted net loss per common share for the three months ended December31, 2008, since to do so would decrease the loss per share. During each of the three months ended December31, 2009 and 2008, the Company declared a quarterly dividend of $0.13 per common share. The Company paid all dividends in the month subsequent to the en

Equity Attributable to Johnson

Equity Attributable to Johnson Controls, Inc. and Noncontrolling Interests
	3 Months Ended Dec. 31, 2009 USD / shares
Equity Attributable to Johnson Controls, Inc. and Noncontrolling Interests [Abstract]
Equity Attributable to Johnson Controls, Inc. and Noncontrolling Interests	14. Equity Attributable to Johnson Controls, Inc. and Noncontrolling Interests In December2007, the FASB issued guidance changing the accounting and reporting for minority interests, which are recharacterized as noncontrolling interests and classified as a component of equity. In addition, the guidance changes the presentation and accounting for noncontrolling interests, and requires that equity presented in the consolidated financial statements include amounts attributable to Johnson Controls, Inc. shareholders and the noncontrolling interests. This guidance is included in ASC 810, Consolidation, and is effective for the Company October1, 2009. The following schedule presents changes in consolidated equity attributable to Johnson Controls, Inc. and the noncontrolling interests (in millions): Fiscal 2010 Fiscal 2009 Equity Equity Equity Equity Attributable to Attributable to Attributable to Attributable to Johnson Noncontrolling Total Johnson Noncontrolling Total Controls, Inc. Interests Equity Controls, Inc. Interests Equity Beginning balance, October 1 $ 9,138 $ 201 $ 9,339 $ 9,424 $ 236 $ 9,660 Total comprehensive income (loss): Net income (loss) 350 16 366 (608 ) (608 ) Foreign currency translation adjustments (107 ) (1 ) (108 ) (398 ) (5 ) (403 ) Realized and unrealized gains (losses) on derivatives 3 3 (38 ) (38 ) Employee retirement plans 30 30 Other comprehensive loss (74 ) (1 ) (75 ) (436 ) (5 ) (441 ) Comprehensive income (loss) 276 15 291 (1,044 ) (5 ) (1,049 ) Other changes in equity: Cash dividends Cash dividends common stock ($0.13 per share) (87 ) (87 ) (76 ) (76 ) Dividends attributable to noncontrolling interests (13 ) (13 ) (2 ) (2 ) Other, including options exercised 26 26 9 9 Ending balance, December 31 $ 9,353 $ 203 $ 9,556 $ 8,313 $ 229 $ 8,542

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	3 Months Ended Dec. 31, 2009 USD / shares
Derivative Instruments and Hedging Activities [Abstract]
Derivative Instruments and Hedging Activities	15. Derivative Instruments and Hedging Activities In March2008, the FASB issued guidance enhancing required disclosures regarding derivatives and hedging activities, including how an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for and affect an entitys financial position, financial performance and cash flows. This guidance is included in ASC 815, Derivatives and Hedging, and was effective for the Company beginning in the second quarter of fiscal 2009 and is applied prospectively. The Company selectively uses derivative instruments to reduce market risk associated with changes in foreign currency, commodities, stock-based compensation liabilities and interest rates. Under Company policy, the use of derivatives is restricted to those intended for hedging purposes; the use of any derivative instrument for speculative purposes is strictly prohibited. A description of each type of derivative utilized by the Company to manage risk is included in the following paragraphs. In addition, refer to Note 16, Fair Value Measurements, for information related to the fair value measurements and valuation methods utilized by the Company for each derivative type. The Company has global operations and participates in the foreign exchange markets to minimize its risk of loss from fluctuations in foreign currency exchange rates. The Company primarily uses foreign currency exchange contracts to hedge certain of its foreign exchange rate exposures. The Company hedges 70% to 90% of the nominal amount of each of its known foreign exchange transactional exposures. The Company has entered into foreign currency denominated debt obligations to selectively hedge portions of its net investment in Japan. The currency effects of the debt obligations are reflected in the accumulated other comprehensive income (AOCI)account within shareholders equity attributable to Johnson Controls, Inc. where they offset gains and losses recorded on the Companys net investment in Japan. As of December31, 2009, the Company had 18billion yen of foreign denominated debt outstanding designated as net investment hedges in the Companys net investment in Japan. The Company uses commodity contracts in the financial derivatives market in cases where commodity price risk cannot be naturally offset or hedged through supply base fixed price contracts. Commodity risks are systematically managed pursuant to policy guidelines. As cash flow hedges, the effective portion of the hedge gains or losses due to changes in fair value are initially recorded as a component of AOCI and are subsequently reclassified into earnings when the hedged transactions, typically sales or costs related to sales, occur and affect earnings. Any ineffective portion of the hedge is reflected in the consolidated statement of income. The maturities of the commodity contracts coincide with the expected purchase of the commodities. As of December31, 2009, the Company had the following outstanding commodity hedge contracts that hedge forecasted purchases: Volume Outstanding Commodity Units As of Decem

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Dec. 31, 2009 USD / shares
Fair Value Measurements [Abstract]
Fair Value Measurements	16. Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-level fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions. ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Recurring Fair Value Measurements The following table presents the Companys fair value hierarchy for those assets and liabilities measured at fair value on a quarterly basis as of December31, 2009 and 2008 (in millions): Fair Value Measurements Using: Quoted Prices in Active Significant Other Observable Significant Unobservable Total as of Markets Inputs Inputs December 31, 2009 (Level 1) (Level 2) (Level 3) Assets Foreign currency exchange derivatives $ 65 $ 65 $ $ Commodity derivatives 11 11 Interest rate swaps 16 16 Equity swap 86 86 Total $ 178 $ 151 $ 27 $ Liabilities Foreign currency exchange derivatives $ 67 $ 67 $ $ Fixed rate debt swapped to floating 706 706 Foreign currency denominated debt 195 195 Total $ 968 $ 262 $ 706 $ Fair Value Measurements Using: Quoted Prices in Active Significant Other Significant Unobservable Total as of Markets Observable Inputs Inputs December 31, 2008 (Level 1) (Level 2) (Level 3) Assets Cross-currency interest rate swap $ 31 $ $ 31 $ Equity swap 1 1 Total $ 32 $ 1 $ 31 $ Liabilities Foreign currency exchange derivatives $ 19 $ 19 $ $ Commodity derivatives 84 84 Interest rate swaps and related debt 495 495 Foreign currency denominated debt 1,165 1,

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets
	3 Months Ended Dec. 31, 2009 USD / shares
Impairment of Long-Lived Assets [Abstract]
Impairment of Long-Lived Assets	17. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC 360-10-15, Impairment or Disposal of Long-Lived Assets. ASC 360-10-15 requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted cash flows do not indicate the carrying amount of the asset group is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals. At December31, 2009, the Company concluded it did not have any triggering events requiring assessment of impairment of its long-lived assets. At December31, 2008, in conjunction with the preparation of its financial statements, the Company concluded it had a triggering event requiring assessment of impairment of its long-lived assets due to the significant declines in North American and European automotive sales volumes. As a result, the Company reviewed its long-lived assets for impairment and recorded a $110million impairment charge within cost of sales in the first quarter of fiscal 2009, of which $77million related to the North America automotive experience segment and $33million related to the Europe automotive experience segment. The Company reviews its equity investments for impairment whenever there is a loss in value of an investment which is other than a temporary decline. The Company conducts its equity investment impairment analyses in accordance with ASC 323, Investments-Equity Method and Joint Ventures. ASC 323 requires the Company to record an impairment charge for a decrease in value of an investment when the decline in the investment is considered to be other than temporary. At December31, 2008, in conjunction with the preparation of its financial statements, the Company concluded it had a triggering event requiring assessment of impairment of its equity investment in a 48%-owned joint venture with U.S. Airconditioning Distributors, Inc. (U.S. Air) due to the significant decline in North American residential housing construction starts, which had significantly impacted the financial results of the equity investment. The Company reviewed its equity investment in U.S. Air for impairment and as a result, recorded a $152million impairment charge within equity income (loss)for the building efficiency North America unitary products segment in the first quarter of fiscal 2009. The U.S. Air investment balance included in the condensed consolidated statement of financial position at December31, 2009 was $57 million. The Company does not anticipate future impairment of this investment as, based on its current forecasts, a further decline in value that is other than temporary is not considered reasonably likely to occur.

Segment Information

Segment Information
	3 Months Ended Dec. 31, 2009 USD / shares
Segment Information [Abstract]
Segment Information	18. Segment Information 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 ten reportable segments for financial reporting purposes. Certain segments are aggregated or combined based on materiality within building efficiency rest of world and power solutions in accordance with the standard. The Companys ten 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. 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. North America unitary products designs and produces heating and air conditioning solutions for residential and light commercial applications and markets products to the replacement and new construction markets. 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. Europe provides HVAC and refrigeration systems and technical services to the European marketplace. Rest of world provides HVAC and refrigeration systems and technical services to markets in Asia, 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 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

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies [Abstract]
Commitments and Contingencies	19. Commitments and Contingencies The Company accrues for potential environmental losses in a manner consistent with U.S. GAAP; that is, when it is probable a loss has been incurred and the amount of the loss is reasonably estimable. The Company reviews the status of its environmental sites on a quarterly basis and adjusts its reserves accordingly. Such potential liabilities accrued by the Company do not take into consideration possible recoveries of future insurance proceeds. They do, however, take into account the likely share other parties will bear at remediation sites. It is difficult to estimate the Companys ultimate level of liability at many remediation sites due to the large number of other parties that may be involved, the complexity of determining the relative liability among those parties, the uncertainty as to the nature and scope of the investigations and remediation to be conducted, the uncertainty in the application of law and risk assessment, the various choices and costs associated with diverse technologies that may be used in corrective actions at the sites, and the often quite lengthy periods over which eventual remediation may occur. Nevertheless, the Company has no reason to believe at the present time that any claims, penalties or costs in connection with known environmental matters will have a material adverse effect on the Companys financial position, results of operations or cash flows. The Company is involved in a number of product liability and various other suits incident to the operation of its businesses. Insurance coverages are maintained and estimated costs are recorded for claims and suits of this nature. It is managements opinion that none of these will have a material adverse effect on the Companys financial position, results of operations or cash flows. Costs related to such matters were not material to the periods presented.

Subsequent Events

Subsequent Events
	3 Months Ended Dec. 31, 2009 USD / shares
Subsequent Events [Abstract]
Subsequent Events	20. Subsequent Events ASC 855, Subsequent Events, requires disclosure of the date through which subsequent events have been evaluated, as well as whether the date is the date the financial statements were issued or the date the financial statements were available to be issued. The Company has evaluated subsequent events through February3, 2010, the date the financial statements were issued. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures.