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 eight reportable segments for financial reporting purposes. The Company’s eight reportable segments are presented in the context of its three primary businesses - Buildings, Automotive Experience and Power Solutions.

Buildings

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.

Tyco

Tyco designs, sells, installs, services and monitors integrated electronic security systems and integrated fire detection and suppression systems for commercial, industrial, retail, small business, institutional and governmental customers. The Tyco business also designs, manufactures and sells fire protection, security and life safety products, including intrusion security, anti-theft devices, breathing apparatus and access control and video management systems, for commercial, industrial, retail, residential, small business, institutional and governmental customers worldwide.

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 EBIT, 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 the reportable segments in determining segment EBIT.

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



	Year Ended September 30,
	2016		2015		2014
Net Sales
Buildings
Building Efficiency
Systems and Service North America	$	4,292	$	4,184	$	4,098
Products North America	2,488		2,450		1,807
Asia	4,830		1,985		2,077
Rest of World	1,766		1,891		2,103
	13,376		10,510		10,085
Tyco	808		—		—
	14,184		10,510		10,085
Automotive Experience
Seating	16,355		16,539		17,531
Interiors	482		3,540		4,501
	16,837		20,079		22,032
Power Solutions	6,653		6,590		6,632

Total net sales	$	37,674	$	37,179	$	38,749



	Year Ended September 30,
	2016			2015			2014
Segment EBIT
Buildings
Building Efficiency
Systems and Service North America (1)	$	412		$	375		$	354
Products North America (2)	173			306			238
Asia (3)	431			191			270
Rest of World (4)	20			51			(45		)
	1,036			923			817
Tyco (5)	(17		)	—			—
	1,019			923			817
Automotive Experience
Seating (6)	676			928			853
Interiors (7)	75			254			(1		)
	751			1,182			852
Power Solutions (8)	1,253			1,153			1,052

Total segment EBIT	$	3,023		$	3,258		$	2,721

Net financing charges	(314		)	(288		)	(244		)
Restructuring and impairment costs	(620		)	(397		)	(324		)
Net mark-to-market adjustments on pension and postretirement plans	(503		)	(422		)	(237		)

Income from continuing operations before income taxes	$	1,586		$	2,151		$	1,916



	September 30,
	2016		2015		2014
Assets
Buildings
Building Efficiency
Systems and Service North America	$	2,338	$	2,332	$	2,341
Products North America	4,236		4,193		4,157
Asia	3,668		1,387		1,418
Rest of World	1,416		1,471		1,642
	11,658		9,383		9,558
Tyco (9)	28,097		—		—
	39,755		9,383		9,558
Automotive Experience
Seating	8,888		8,611		8,969
Interiors (9)	1,264		1,265		321
	10,152		9,876		9,290
Power Solutions	6,859		6,590		6,888
Assets held for sale	174		55		2,787
Unallocated	6,313		3,718		4,289

Total	$	63,253	$	29,622	$	32,812



	Year Ended September 30,
	2016		2015		2014
Depreciation/Amortization
Buildings
Building Efficiency
Systems and Service North America	$	38	$	32	$	32
Products North America	116		119		79
Asia	107		27		24
Rest of World	19		19		25
	280		197		160
Tyco	53		—		—
	333		197		160
Automotive Experience
Seating	355		345		328
Interiors	13		21		128
	368		366		456
Power Solutions	252		297		315
Discontinued Operations	—		—		24

Total	$	953	$	860	$	955



	Year Ended September 30,
	2016		2015		2014
Capital Expenditures
Buildings
Building Efficiency
Systems and Service North America	$	15	$	22	$	27
Products North America	217		160		123
Global Workplace Solutions	—		16		16
Asia	119		32		39
Rest of World	25		38		34
	376		268		239
Tyco	22		—		—
	398		268		239
Automotive Experience
Seating	444		437		420
Interiors	3		121		181
Electronics	—		—		31
	447		558		632
Power Solutions	404		309		328

Total	$	1,249	$	1,135	$	1,199


(1)	Building Efficiency - Systems and Service North America segment EBIT for the years ended September 30, 2016, 2015 and 2014 excludes $2 million, $3 million and $12 million, respectively, of restructuring and impairment costs.


(2)	Building Efficiency - Products North America segment EBIT for the years ended September 30, 2016, 2015 and 2014 excludes $9 million, $11 million and $7 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2016, 2015 and 2014, Products North America segment EBIT includes $10 million, $9 million and $7 million, respectively, of equity income.


(3)	Building Efficiency - Asia segment EBIT for the years ended September 30, 2016, 2015 and 2014 excludes $26 million,$11 million and $4 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2016 and 2014, Asia segment EBIT includes $100 million and $21 million, respectively, of equity income.


(4)	Building Efficiency - Rest of World segment EBIT for the years ended September 30, 2016, 2015 and 2014 excludes $16 million, $13 million and $119 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2016, 2015 and 2014, Rest of World segment EBIT includes $15 million, $14 million and $7 million, respectively, of equity income.


(5)	Tyco segment EBIT for the year ended September 30, 2016 excludes $85 million of restructuring and impairment costs. For the year ended September 30, 2016, Tyco segment EBIT includes $1 million of equity income.


(6)	Automotive Experience - Seating segment EBIT for the years ended September 30, 2016, 2015 and 2014 excludes $284 million, $182 million and $29 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2016, 2015 and 2014, Seating segment EBIT includes $289 million, $264 million and $250 million, respectively, of equity income.


(7)	Automotive Experience - Interiors segment EBIT for the years ended September 30, 2016 and 2014 excludes $17 million and $130 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2016, 2015 and 2014, Interiors segment EBIT includes $68 million, $31 million and $35 million, respectively, of equity income.


(8)	Power Solutions segment EBIT for the years ended September 30, 2016, 2015 and 2014 excludes $66 million, $11 million and $16 million, respectively, of restructuring and impairment costs. For the years ended September 30, 2016, 2015 and 2014, Power Solutions segment EBIT includes $48 million, $57 million and $75 million, respectively, of equity income.


(9)	Current year and prior year amounts exclude assets held for sale. Refer to Note 4, "Discontinued Operations," of the notes to consolidated financial statements for further information regarding the Company's disposal groups classified as held for sale.

The Company has significant sales to the automotive industry. In fiscal years 2016, 2015 and 2014, 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,
	2016		2015		2014
Net Sales
United States	$	16,214	$	16,841	$	16,596
Germany	3,331		3,375		3,853
Japan	2,262		753		1,064
Mexico	1,637		1,933		2,001
Other European countries	6,860		7,320		8,913
Other foreign	7,370		6,957		6,322

Total	$	37,674	$	37,179	$	38,749

Long-Lived Assets (Year-end)
United States	$	3,500	$	2,681	$	2,762
Germany	650		680		910
Japan	253		74		77
Mexico	708		594		567
Other European countries	1,284		1,006		1,064
Other foreign	1,477		835		934

Total	$	7,872	$	5,870	$	6,314

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.