Product Warranty Accrual

Entity Registrant Name JOHNSON CONTROLS INC
CIK 0000053669
Accession number 0000053669-14-000041
Link to XBRL instance http://www.sec.gov/Archives/edgar/data/53669/000005366914000041/jci-20140930.xml
Fiscal year end --09-30
Fiscal year focus 2014
Fiscal period focus FY
Current balance sheet date 2014-09-30
Current year-to-date income statement start date 2013-10-01

Commentary As expected.

Level 3 (Disclosure) Text Block concept us-gaap:ProductWarrantyDisclosureTextBlock
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 Company’s warranty provisions are adjusted as necessary. 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.

The Company’s product warranty liability is recorded in the consolidated statements 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 Company’s total product warranty liability, including extended warranties for which deferred revenue is recorded, for the fiscal years ended September 30, 2014 and 2013 were as follows (in millions):
 
Year Ended
September 30,
 
2014
 
2013
Balance at beginning of period
$
256

 
$
278

Accruals for warranties issued during the period
279

 
272

Accruals from acquisitions and divestitures
3

 
(5
)
Accruals related to pre-existing warranties (including changes in estimates)
2

 
(14
)
Settlements made (in cash or in kind) during the period
(218
)
 
(275
)
Currency translation
(3
)
 

Balance at end of period
$
319

 
$
256


Level 4 Details Key Concepts

Description Fact value US GAAP XBRL Concept
Current 319,000,000
Noncurrent 0
Total 319,000,000 us-gaap:ProductWarrantyAccrual
CHECK 0

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