JOHNSON CONTROLS INC | 2013 | FY | 3

EQUITY AND NONCONTROLLING INTERESTS

The following schedules present changes in consolidated equity attributable to Johnson Controls, Inc. and noncontrolling interests (in millions):
 
Equity Attributable to Johnson Controls, Inc.
 
Equity Attributable to Noncontrolling Interests
 
Total Equity
At September 30, 2010 (revised)
$
10,183

 
$
106

 
$
10,289

Total comprehensive income:
 
 
 
 
 
Net income
1,415

 
53

 
1,468

Foreign currency translation adjustments
(109
)
 
(1
)
 
(110
)
Realized and unrealized losses on derivatives
(47
)
 
—

 
(47
)
Unrealized gains on marketable common stock
3

 
—

 
3

Pension and postretirement plans
4

 
—

 
4

Other comprehensive loss
(149
)
 
(1
)
 
(150
)
Comprehensive income
1,266

 
52

 
1,318

Other changes in equity:
 
 
 
 
 
Cash dividends - common stock ($0.64 per share)
(435
)
 
—

 
(435
)
Dividends attributable to noncontrolling interests
—

 
(32
)
 
(32
)
Redemption value adjustment attributable to redeemable noncontrolling interests
(32
)
 
—

 
(32
)
Change in noncontrolling interest share
—

 
12

 
12

Other, including options exercised
172

 
—

 
172

At September 30, 2011
11,154

 
138

 
11,292

Total comprehensive income:
 
 
 
 
 
Net income
1,184

 
58

 
1,242

Foreign currency translation adjustments
(221
)
 
—

 
(221
)
Realized and unrealized gains on derivatives
39

 
—

 
39

Unrealized losses on marketable common stock
(1
)
 
—

 
(1
)
Pension and postretirement plans
(8
)
 
—

 
(8
)
Other comprehensive loss
(191
)
 
—

 
(191
)
Comprehensive income
993

 
58

 
1,051

Other changes in equity:
 
 
 
 
 
Cash dividends - common stock ($0.72 per share)
(492
)
 
—

 
(492
)
Dividends attributable to noncontrolling interests
—

 
(48
)
 
(48
)
Redemption value adjustment attributable to redeemable noncontrolling interests
(35
)
 
—

 
(35
)
Repurchases of common stock
(102
)
 
—

 
(102
)
Other, including options exercised
107

 
—

 
107

At September 30, 2012
11,625

 
148

 
11,773

Total comprehensive income:
 
 
 
 
 
Net income
1,178

 
71

 
1,249

Foreign currency translation adjustments
(21
)
 
—

 
(21
)
Realized and unrealized losses on derivatives
(5
)
 
—

 
(5
)
Unrealized gains on marketable common stock
2

 
—

 
2

Pension and postretirement plans
(16
)
 
—

 
(16
)
Other comprehensive loss
(40
)
 
—

 
(40
)
Comprehensive income
1,138

 
71

 
1,209

Other changes in equity:
 
 
 
 
 
Cash dividends - common stock ($0.76 per share)
(520
)
 
—

 
(520
)
Dividends attributable to noncontrolling interests
—

 
(39
)
 
(39
)
Redemption value adjustment attributable to redeemable noncontrolling interests
59

 
—

 
59

Repurchases of common stock
(350
)
 
—

 
(350
)
Change in noncontrolling interest share
—

 
80

 
80

Other, including options exercised
362

 
—

 
362

At September 30, 2013
$
12,314

 
$
260

 
$
12,574


The Company consolidates certain subsidiaries in which the noncontrolling interest party has within their control the right to require the Company to redeem all or a portion of its interest in the subsidiary. The redeemable noncontrolling interests are reported at their estimated redemption value. Any adjustment to the redemption value impacts retained earnings but does not impact net income. Redeemable noncontrolling interests which are redeemable only upon future events, the occurrence of which is not currently probable, are recorded at carrying value.

The following schedules present changes in the redeemable noncontrolling interests (in millions):
 
Year Ended September 30, 2013
 
Year Ended September 30, 2012
 
Year Ended September 30, 2011
Beginning balance, September 30
$
253

 
$
260

 
$
196

Net income
48

 
69

 
64

Foreign currency translation adjustments
1

 
(1
)
 
—

Change in noncontrolling interest share
(63
)
 
(95
)
 
(21
)
Dividends
(23
)
 
(15
)
 
(11
)
Redemption value adjustment
(59
)
 
35

 
32

Ending balance, September 30
$
157

 
$
253

 
$
260


 
The following schedules present changes in accumulated other comprehensive income (AOCI) attributable to Johnson Controls, Inc. (in millions, net of tax):
 
Year Ended
September 30, 2013
 
Year Ended
September 30, 2012
 
Year Ended
September 30, 2011
 
 
 
 
 
 
Foreign currency translation adjustments
 
 
 
 
 
Balance at beginning of period
$
413

 
$
634

 
$
743

Aggregate adjustment for the period (net of tax effect of $19, $(15) and $(3))
(21
)
 
(221
)
 
(109
)
Balance at end of period
392

 
413

 
634

 
 
 
 
 
 
Realized and unrealized gains (losses) on derivatives
 
 
 
 
 
Balance at beginning of period
12

 
(27
)
 
20

Current period changes in fair value (net of tax effect of $(2), $9 and $(17))
(2
)
 
14

 
(28
)
Reclassification to income (net of tax effect of $(2), $17 and $(13)) *
(3
)
 
25

 
(19
)
Balance at end of period
7

 
12

 
(27
)
 
 
 
 
 
 
Unrealized gains (losses) on marketable common stock
 
 
 
 
 
Balance at beginning of period
5

 
6

 
3

Current period changes in fair value (net of tax effect of $0, $(3) and $0)
2

 
(15
)
 
3

Reclassifications to income (net of tax effect of $0) **
—

 
14

 
—

Balance at end of period
7

 
5

 
6

 
 
 
 
 
 
Pension and postretirement plans
 
 
 
 
 
Balance at beginning of period
28

 
36

 
32

Reclassification to income (net of tax effect of $(9), $(7) and $(1)) ***
(18
)
 
(10
)
 
(2
)
Other changes (net of tax effect of $0)
2

 
2

 
6

Balance at end of period
12

 
28

 
36

 
 
 
 
 
 
Accumulated other comprehensive income, end of period
$
418

 
$
458

 
$
649


* Refer to Note 10, "Derivative Instruments and Hedging Activities," of the notes to consolidated financial statements for disclosure of the line items on the consolidated statements of income affected by reclassifications from AOCI into income related to derivatives.

** Refer to Note 11, "Fair Value Measurements," of the notes to consolidated financial statements for disclosure of the line item on the consolidated statements of income affected by reclassifications from AOCI into income related to marketable common stock.

*** Refer to Note 15, "Retirement Plans," of the notes to consolidated financial statements for disclosure of the components of the Company's net periodic benefit costs associated with its defined benefit pension and postretirement plans. For the year ended September 30, 2013, the income reclassified from AOCI into income for pension and postretirement plans was split approximately evenly between cost of sales and selling, general and administrative expenses on the consolidated statement of income. For the year ended September 30, 2012, the reclassified income was primarily recorded in cost of sales. For the year ended September 30, 2011, approximately $8 million of reclassified income was recorded in cost of sales, and approximately $6 million of reclassified expense was recorded in selling, general and administrative expenses.

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