- Q3 reported sales +8% versus prior year; +9% organically
- Q3 GAAP EPS of $1.53; Adjusted
EPS of $1.03, up 21% versus prior
year
- Q3 Orders +8% organically year-over year
- Record backlog of $12.0 billion,
increased 8% organically year-over-year
- Initiates fiscal Q4 and updates fiscal 2023 full year
guidance
CORK,
Ireland, Aug. 2, 2023 /PRNewswire/ -- Johnson
Controls International plc (NYSE: JCI), a global leader for smart,
healthy and sustainable buildings, today reported fiscal third
quarter 2023 GAAP earnings per share ("EPS") from continuing
operations of $1.53. Excluding
special items, adjusted EPS from continuing operations was
$1.03, up 21% versus the prior year
period (see attached footnotes for non-GAAP reconciliation).
Sales in the quarter of $7.1
billion increased 8% compared to the prior year on an as
reported basis and grew 9% organically. GAAP net income from
continuing operations was $1.05
billion. Adjusted net income from continuing operations of
$706 million was up 19% versus the
prior year. Earnings before interest and taxes ("EBIT") was
$873 million and EBIT margin was
12.2%. Adjusted EBIT was $981 million
and adjusted EBIT margin was 13.8%, improving 160 basis points
versus the prior year.
"Johnson Controls delivered strong third quarter results led by
double-digit growth in sales and orders for our Service business,"
said George Oliver, chairman and
CEO. "We remain confident in our longer cycle Building Solutions
segments supported by our healthy order pipeline and resilient
backlog. Our leading technologies position us well in making
buildings smarter, healthier, and more sustainable."
"Our third quarter results met the high end of our guidance as
we delivered robust margin expansion and strong adjusted EPS
growth," said Olivier Leonetti,
chief financial officer. "We have made great progress in improving
our margins this fiscal year and we believe there remains runway
for further margin expansion in fiscal 2024 and beyond."
Income and EPS amounts attributable to Johnson Controls
ordinary shareholders
($ millions, except per-share
amounts)
The financial highlights presented in the tables below are in
accordance with GAAP, unless otherwise indicated. All comparisons
are to the fiscal third quarter of 2022.
Organic sales growth, adjusted sales, total segment EBITA,
adjusted segment EBITA, adjusted corporate expense, EBIT, adjusted
EBIT, adjusted net income from continuing operations, adjusted EPS
from continuing operations, cash provided by operating activities
from continuing operations, excluding JC Capital, and free cash
flow are non-GAAP financial measures. For a reconciliation of
non-GAAP measures and detail of the special items, refer to the
attached footnotes.
This press release includes forward-looking statements regarding
organic revenue growth, adjusted segment EBITA margin improvement
and adjusted EPS, which are non-GAAP financial measures. These
non-GAAP financial measures are derived by excluding certain
amounts from the corresponding financial measures determined in
accordance with GAAP. The determination of the amounts excluded is
a matter of management judgment and depends upon, among other
factors, the nature of the underlying expense or income amounts
recognized in a given period and the high variability of certain
amounts, such as mark-to-market adjustments. Organic revenue growth
excludes the effect of acquisitions, divestitures and foreign
currency. We are unable to present a quantitative reconciliation of
the aforementioned forward-looking non-GAAP financial measures to
their most directly comparable forward-looking GAAP financial
measures because such information is not available, and management
cannot reliably predict the necessary components of such GAAP
measures without unreasonable effort or expense. The unavailable
information could have a significant impact on the Company's fiscal
2023 fourth quarter and full year GAAP financial results.
A slide presentation to accompany the results can be found in
the Investor Relations section of Johnson Controls' website at
http://investors.johnsoncontrols.com.
|
Fiscal
Q3
|
|
GAAP
|
Adjusted
|
|
2022
|
2023
|
2022
|
2023
|
Sales
|
$6,614
|
$7,133
|
$6,614
|
$7,133
|
Segment
EBITA
|
998
|
1,170
|
998
|
1,170
|
EBIT
|
553
|
873
|
809
|
981
|
Net income from
continuing operations
|
379
|
1,049
|
594
|
706
|
|
|
|
|
|
Diluted EPS from
continuing operations
|
$0.55
|
$1.53
|
$0.85
|
$1.03
|
SEGMENT RESULTS
Building Solutions North America
|
Fiscal
Q3
|
|
GAAP
|
Adjusted
|
|
2022
|
2023
|
2022
|
2023
|
Sales
|
$2,426
|
$2,665
|
$2,426
|
$2,665
|
Segment
EBITA
|
260
|
385
|
260
|
385
|
Segment EBITA Margin
%
|
10.7 %
|
14.4 %
|
10.7 %
|
14.4 %
|
Sales in the quarter of $2.7
billion increased 10% versus the prior year. Organic sales
increased 10% over the prior year with strong growth in both
Service and Install, led by low-teens digit growth in HVAC &
Controls and high single-digit growth in Fire & Security.
Orders in the quarter, excluding M&A and adjusted for
foreign currency, increased 5% year-over-year. Backlog at the end
of the quarter of $8.0 billion
increased 11% compared to the prior year, excluding M&A and
adjusted for foreign currency.
Segment EBITA was $385 million, up
48% versus the prior year. Segment EBITA margin of 14.4% expanded
370 basis points versus the prior year led by higher margin backlog
conversion, ongoing productivity benefits and strong growth in
Services.
Building Solutions EMEA/LA (Europe, Middle
East, Africa/Latin America)
|
Fiscal
Q3
|
|
GAAP
|
Adjusted
|
|
2022
|
2023
|
2022
|
2023
|
Sales
|
$952
|
$1,045
|
$952
|
$1,045
|
Segment
EBITA
|
83
|
90
|
83
|
90
|
Segment EBITA Margin
%
|
8.7 %
|
8.6 %
|
8.7 %
|
8.6 %
|
Sales in the quarter of $1.0
billion increased 10% versus the prior year. Organic sales
grew 9% versus the prior year, with mid-teens growth in Service and
high single-digit growth in HVAC & Controls and Fire &
Security. By region, Europe and
Latin America experienced strong
organic growth, while growth in the Middle East was more modest.
Orders in the quarter, excluding M&A and adjusted for
foreign currency, increased 10% year-over-year. Backlog at the end
of the quarter of $2.3 billion
increased 6% year-over-year, excluding M&A and adjusted for
foreign currency.
Segment EBITA was $90 million, an
increase of 8% versus the prior year. Segment EBITA margin of 8.6%
declined 10 basis points versus the prior year and showed strong
sequential improvement as higher margin backlog conversion and
productivity improved.
Building Solutions Asia Pacific
|
Fiscal
Q3
|
|
GAAP
|
Adjusted
|
|
2022
|
2023
|
2022
|
2023
|
Sales
|
$665
|
$736
|
$665
|
$736
|
Segment
EBITA
|
85
|
102
|
85
|
102
|
Segment EBITA Margin
%
|
12.8 %
|
13.9 %
|
12.8 %
|
13.9 %
|
Sales in the quarter of $736
million increased 11% versus the prior year. Sales increased
16% organically versus the prior year, with high-teen growth in
Service and continued momentum in HVAC & Controls. Organic
Sales in China grew greater than
25%, with strong double-digit growth in the Service and Install
businesses, as China rebounded
from Covid-19 shutdowns in the prior year.
Orders in the quarter, excluding M&A and adjusted for
foreign currency, increased 14% year-over-year. Backlog at the end
of the quarter of $1.7 billion
increased 2% year-over-year, excluding M&A and adjusted
for foreign currency.
Segment EBITA was $102 million, up
20% versus the prior year. Segment EBITA margin of 13.9% expanded
110 basis points versus the prior year led by strong Service
performance, higher margin backlog conversion, and
productivity.
Global Products
|
Fiscal
Q3
|
|
GAAP
|
Adjusted
|
|
2022
|
2023
|
2022
|
2023
|
Sales
|
$2,571
|
$2,687
|
$2,571
|
$2,687
|
Segment
EBITA
|
570
|
593
|
570
|
593
|
Segment EBITA Margin
%
|
22.2 %
|
22.1 %
|
22.2 %
|
22.1 %
|
Sales in the quarter of $2.7
billion increased 5% versus the prior year. Organic sales
grew 6% versus the prior year driven by growth in Applied, Fire
Detection, Industrial Refrigeration, and Commercial Ducted HVAC
products.
Segment EBITA was $593 million, up
4% versus the prior year. Segment EBITA margin of 22.1% declined 10
basis points versus the prior year against a tough comparison and
further Residential weakness.
Corporate
|
Fiscal
Q3
|
|
GAAP
|
Adjusted
|
|
2022
|
2023
|
2022
|
2023
|
Corporate
Expense
|
($96)
|
($122)
|
($87)
|
($78)
|
Corporate expense was $122 million
in the quarter, an increase of 27% compared to the prior year.
Adjusted Corporate expense excludes transaction/separation costs in
both Q3 2022 and Q3 2023.
OTHER Q3 ITEMS
- Cash provided by operating activities from continuing
operations was $813 million, while
cash provided by operating activities from continuing operations,
excluding JC Capital, was $852
million. Capital expenditures were $111 million, resulting in a free cash flow from
continuing operations of $741
million.
- The Company repurchased 6.0 million shares for approximately
$366 million. Year-to-date through
June the Company repurchased 10.3 million shares for approximately
$613 million.
- The Company recorded net pre-tax mark-to-market gains of
$17 million related primarily to the
remeasurement of the Company's pension and postretirement benefit
plans and restricted asbestos investments.
- The Company recorded pre-tax restructuring and impairment costs
of $81 million
- The Company recorded a discrete period net tax benefit of
$438 million resulting from tax audit
resolutions, statute expirations and remeasurement of certain
tax-related matters.
- The Company issued €800 million senior notes due 2035.
FOURTH QUARTER GUIDANCE
The Company initiated fiscal 2023 fourth quarter guidance:
- Organic revenue growth of ~+4% year-over-year
- Adjusted segment EBITA margin improvement of ~+60 basis points
year-over-year
- Adjusted EPS before special items of ~$1.10; representing ~11% growth
year-over-year
FULL YEAR GUIDANCE
The Company updated its fiscal 2023 full year EPS guidance:
- Organic revenue growth ~+HSD year-over year (previously guided
at ~+10% growth)
- Adjusted segment EBITA margin improvement of ~+110 basis
points, year-over-year (previously guided to 100 to 120 basis point
improvement)
- Adjusted EPS before special items of ~$3.55; representing ~18% growth year-over-year
(previously guided to $3.50 to
$3.60)
CONFERENCE CALL & WEBCAST INFO
Johnson Controls will host a conference call to discuss this
quarter's results at 8:30 a.m. ET
today, which can be accessed by dialing 844-763-8274 (in
the United States) or
+1-412-717-9224 (outside the United
States), or via webcast. A slide presentation will accompany
the prepared remarks and has been posted on the investor relations
section of the Johnson Controls website at
https://investors.johnsoncontrols.com/news-and-events/events-and-presentations.
A replay will be made available approximately two hours following
the conclusion of the conference call.
About Johnson Controls
At Johnson Controls (NYSE:JCI), we transform the environments
where people live, work, learn and play. As the global leader in
smart, healthy and sustainable buildings, our mission is to
reimagine the performance of buildings to serve people, places and
the planet.
Building on a proud history of nearly 140 years of innovation,
we deliver the blueprint of the future for industries such as
healthcare, schools, data centers, airports, stadiums,
manufacturing and beyond through OpenBlue, our comprehensive
digital offering.
Today, with a global team of 100,000 experts in more than 150
countries, Johnson Controls offers the world`s largest portfolio of
building technology and software as well as service solutions from
some of the most trusted names in the industry.
Visit www.johnsoncontrols.com for more information and follow
@Johnson Controls on social platforms.
JOHNSON CONTROLS
CONTACTS:
|
|
|
|
INVESTOR
CONTACTS:
|
MEDIA CONTACT:
|
|
|
Jim Lucas
|
Danielle Canzanella
|
Direct: +1
651.391.3182
|
Direct: +1
203.499.8297
|
Email: jim.lucas@jci.com
|
Email:
danielle.canzanella@jci.com
|
|
|
Michael
Gates
|
|
Direct: +1
414.524.5785
|
|
Email:
michael.j.gates@jci.com
|
|
Johnson Controls International plc
Cautionary Statement Regarding Forward-Looking
Statements
Johnson Controls International plc has made statements in this
communication that are forward-looking and therefore are subject to
risks and uncertainties. All statements in this document other than
statements of historical fact are, or could be, "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. In this communication, statements regarding
Johnson Controls future financial position, sales, costs, earnings,
cash flows, other measures of results of operations, synergies and
integration opportunities, capital expenditures, debt levels and
market outlook are forward-looking statements. Words such as "may,"
"will," "expect," "intend," "estimate," "anticipate," "believe,"
"should," "forecast," "project" or "plan" and terms of similar
meaning are also generally intended to identify forward-looking
statements. However, the absence of these words does not mean that
a statement is not forward-looking. Johnson Controls cautions that
these statements are subject to numerous important risks,
uncertainties, assumptions and other factors, some of which are
beyond its control, that could cause its actual results to differ
materially from those expressed or implied by such forward-looking
statements, including, among others, risks related to: Johnson
Controls ability to manage general economic, business and capital
market conditions, including recessions and other economic
downturns, the ability to manage macroeconomic and geopolitical
volatility, including global price inflation, shortages impacting
the availability of raw materials and component products and the
conflict between Russia and
Ukraine; the ability to develop or
acquire new products and technologies that achieve market
acceptance and meet applicable quality and regulatory requirements;
the ability to innovate and adapt to emerging technologies, ideas
and trends in the marketplace; the strength of the U.S. or other
economies; fluctuations in currency exchange rates; changes or
uncertainty in laws, regulations, rates, policies or
interpretations that impact Johnson Controls business operations or
tax status; changes to laws or policies governing foreign trade,
including economic sanctions, increased tariffs or trade
restrictions; maintaining the capacity, reliability and security of
Johnson Controls enterprise information technology infrastructure;
the ability to manage the lifecycle cybersecurity risk in the
development, deployment and operation of Johnson Controls digital
platforms and services; the outcome of litigation and governmental
proceedings; the risk of infringement or expiration of intellectual
property rights; Johnson Controls ability to manage the impacts of
natural disasters, climate change, pandemics and outbreaks of
contagious diseases and other adverse public health developments,
such as the COVID-19 pandemic; the ability of Johnson Controls to
drive organizational improvement; any delay or inability of Johnson
Controls to realize the expected benefits and synergies of recent
portfolio transactions; the ability to hire and retain senior
management and other key personnel; the tax treatment of recent
portfolio transactions; significant transaction costs and/or
unknown liabilities associated with such transactions; labor
shortages, work stoppages, union negotiations, labor disputes and
other matters associated with the labor force; and the cancellation
of or changes to commercial arrangements. A detailed discussion of
risks related to Johnson Controls business is included in the
section entitled "Risk Factors" in Johnson Controls Annual Report
on Form 10-K for the 2022 fiscal year filed with the SEC on
November 15, 2022, which is available
at www.sec.gov and www.johnsoncontrols.com under the "Investors"
tab. The description of certain of these risks is supplemented in
Item 1A of Part II of Johnson Controls subsequently filed Quarterly
Reports on Form 10-Q. Shareholders, potential investors and others
should consider these factors in evaluating the forward-looking
statements and should not place undue reliance on such statements.
The forward-looking statements included in this communication are
made only as of the date of this document, unless otherwise
specified, and, except as required by law, Johnson Controls assumes
no obligation, and disclaims any obligation, to update such
statements to reflect events or circumstances occurring after the
date of this communication.
Non-GAAP Financial Information
This press release
contains financial information regarding adjusted earnings per
share, which is a non-GAAP performance measure. The adjusting items
include restructuring and impairment costs, net mark-to-market
adjustments, Silent-Aire other nonrecurring items, certain
transaction/separation costs, Silent-Aire earn-out adjustment,
charges attributable to the suspension of operations in
Russia, warehouse fire loss, and
discrete tax items. Financial information regarding organic sales
growth, adjusted sales, EBIT, EBIT margin, adjusted EBIT, adjusted
EBIT margin, total segment EBITA, adjusted segment EBITA, adjusted
segment EBITA margin, adjusted Corporate expense, cash provided by
operating activities from continuing operations, excluding JC
Capital, free cash flow, free cash flow conversion and adjusted net
income from continuing operations are also presented, which are
non-GAAP performance measures. Management believes that, when
considered together with unadjusted amounts, these non-GAAP
measures are useful to investors in understanding
period-over-period operating results and business trends of Johnson
Controls. Management may also use these metrics as guides in
forecasting, budgeting and long-term planning processes and for
compensation purposes. These metrics should be considered in
addition to, and not as replacements for, the most comparable GAAP
measure. For further information on the calculation of the non-GAAP
measures and a reconciliation of these non-GAAP measures, refer to
the attached footnotes.
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
|
(in millions, except
per share data; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30,
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
Net sales
|
$
7,133
|
|
|
$
6,614
|
Cost of
sales
|
4,702
|
|
|
4,414
|
|
Gross profit
|
2,431
|
|
|
2,200
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(1,555)
|
|
|
(1,589)
|
Restructuring and
impairment costs
|
(81)
|
|
|
(121)
|
Net financing
charges
|
(80)
|
|
|
(49)
|
Equity
income
|
78
|
|
|
63
|
|
|
|
|
|
|
Income before income
taxes
|
793
|
|
|
504
|
|
|
|
|
|
|
Income tax provision
(benefit)
|
(329)
|
|
|
61
|
|
|
|
|
|
|
Net income
|
1,122
|
|
|
443
|
|
|
|
|
|
|
Income attributable to
noncontrolling interests
|
73
|
|
|
64
|
|
|
|
|
|
|
Net income attributable
to JCI
|
$
1,049
|
|
|
$
379
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
1.53
|
|
|
$
0.55
|
|
|
|
|
|
|
Diluted weighted
average shares
|
686.2
|
|
|
694.9
|
Shares outstanding at
period end
|
680.3
|
|
|
688.8
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
|
(in millions, except
per share data; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June
30,
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
Net sales
|
$
19,887
|
|
|
$
18,574
|
Cost of
sales
|
13,124
|
|
|
12,526
|
|
Gross profit
|
6,763
|
|
|
6,048
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(4,705)
|
|
|
(4,412)
|
Restructuring and
impairment costs
|
(844)
|
|
|
(554)
|
Net financing
charges
|
(218)
|
|
|
(153)
|
Equity
income
|
190
|
|
|
175
|
|
|
|
|
|
|
Income before income
taxes
|
1,186
|
|
|
1,104
|
|
|
|
|
|
|
Income tax provision
(benefit)
|
(266)
|
|
|
190
|
|
|
|
|
|
|
Net income
|
1,452
|
|
|
914
|
|
|
|
|
|
|
Income attributable to
noncontrolling interests
|
152
|
|
|
143
|
|
|
|
|
|
|
Net income attributable
to JCI
|
$
1,300
|
|
|
$
771
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
1.89
|
|
|
$
1.10
|
|
|
|
|
|
|
Diluted weighted
average shares
|
688.8
|
|
|
702.4
|
Shares outstanding at
period end
|
680.3
|
|
|
688.8
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
September
30,
|
|
|
|
2023
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
1,057
|
|
$
2,031
|
|
Accounts receivable -
net
|
6,540
|
|
5,727
|
|
Inventories
|
|
3,092
|
|
2,665
|
|
Other current
assets
|
1,317
|
|
1,262
|
|
|
Current
assets
|
12,006
|
|
11,685
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
3,187
|
|
3,131
|
|
Goodwill
|
|
17,644
|
|
17,350
|
|
Other intangible assets
- net
|
4,831
|
|
5,155
|
|
Investments in
partially-owned affiliates
|
988
|
|
963
|
|
Other noncurrent
assets
|
4,124
|
|
3,874
|
|
|
Total assets
|
$
42,780
|
|
$
42,158
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
1,267
|
|
$
1,534
|
|
Accounts payable and
accrued expenses
|
5,250
|
|
5,371
|
|
Other current
liabilities
|
4,611
|
|
4,334
|
|
|
Current
liabilities
|
11,128
|
|
11,239
|
|
|
|
|
|
|
|
Long-term
debt
|
|
8,497
|
|
7,426
|
|
Other noncurrent
liabilities
|
5,692
|
|
6,091
|
|
Shareholders' equity
attributable to JCI
|
16,324
|
|
16,268
|
|
Noncontrolling
interests
|
1,139
|
|
1,134
|
|
|
Total liabilities and
equity
|
$
42,780
|
|
$
42,158
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30,
|
|
|
|
|
|
|
2023
|
|
|
2022
|
Operating
Activities
|
|
|
|
|
Net income attributable
to JCI
|
$
1,049
|
|
|
$
379
|
Income attributable to
noncontrolling interests
|
73
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
1,122
|
|
|
443
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to cash provided (used) by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
212
|
|
|
201
|
|
|
Pension and
postretirement benefit expense (income)
|
(20)
|
|
|
59
|
|
|
Pension and
postretirement contributions
|
(12)
|
|
|
(7)
|
|
|
Equity in earnings of
partially-owned affiliates, net of dividends received
|
28
|
|
|
(45)
|
|
|
Deferred income
taxes
|
(102)
|
|
|
(144)
|
|
|
Non-cash restructuring
and impairment costs
|
10
|
|
|
69
|
|
|
Other - net
|
14
|
|
|
39
|
|
|
Changes in assets and
liabilities, excluding acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(307)
|
|
|
(331)
|
|
|
|
|
Inventories
|
110
|
|
|
(142)
|
|
|
|
|
Other assets
|
(45)
|
|
|
(70)
|
|
|
|
|
Restructuring
reserves
|
50
|
|
|
17
|
|
|
|
|
Accounts payable and
accrued liabilities
|
28
|
|
|
299
|
|
|
|
|
Accrued income
taxes
|
(275)
|
|
|
99
|
|
|
|
|
|
Cash provided by
operating activities from continuing operations
|
813
|
|
|
487
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital
expenditures
|
(111)
|
|
|
(170)
|
Acquisition of
businesses, net of cash acquired
|
(171)
|
|
|
(112)
|
Other - net
|
|
20
|
|
|
26
|
|
|
|
|
|
Cash used by investing
activities from continuing operations
|
(262)
|
|
|
(256)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Increase (decrease) in
short and long-term debt - net
|
(681)
|
|
|
175
|
Stock repurchases and
retirements
|
(366)
|
|
|
(392)
|
Payment of cash
dividends
|
(248)
|
|
|
(244)
|
Dividends paid to
noncontrolling interests
|
(77)
|
|
|
(3)
|
Other - net
|
|
(1)
|
|
|
49
|
|
|
|
|
|
Cash used by financing
activities from continuing operations
|
(1,373)
|
|
|
(415)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(75)
|
|
|
(95)
|
Decrease in cash, cash
equivalents and restricted cash
|
$
(897)
|
|
|
$
(279)
|
|
|
|
|
|
|
|
|
|
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended June
30,
|
|
|
|
|
|
|
2023
|
|
|
2022
|
Operating
Activities
|
|
|
|
|
Net income attributable
to JCI
|
$
1,300
|
|
|
$
771
|
Income attributable to
noncontrolling interests
|
152
|
|
|
143
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
1,452
|
|
|
914
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to cash provided (used) by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
621
|
|
|
633
|
|
|
Pension and
postretirement benefit expense (income)
|
(23)
|
|
|
8
|
|
|
Pension and
postretirement contributions
|
(38)
|
|
|
(83)
|
|
|
Equity in earnings of
partially-owned affiliates, net of dividends received
|
(27)
|
|
|
(25)
|
|
|
Deferred income
taxes
|
(270)
|
|
|
(241)
|
|
|
Non-cash restructuring
and impairment costs
|
701
|
|
|
430
|
|
|
Other - net
|
(12)
|
|
|
32
|
|
|
Changes in assets and
liabilities, excluding acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(667)
|
|
|
(637)
|
|
|
|
|
Inventories
|
(383)
|
|
|
(761)
|
|
|
|
|
Other assets
|
(214)
|
|
|
(276)
|
|
|
|
|
Restructuring
reserves
|
33
|
|
|
(2)
|
|
|
|
|
Accounts payable and
accrued liabilities
|
(127)
|
|
|
788
|
|
|
|
|
Accrued income
taxes
|
(215)
|
|
|
31
|
|
|
|
|
|
Cash provided by
operating activities from continuing operations
|
831
|
|
|
811
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital
expenditures
|
(366)
|
|
|
(430)
|
Acquisition of
businesses, net of cash acquired
|
(260)
|
|
|
(236)
|
Other - net
|
|
50
|
|
|
78
|
|
|
|
|
|
Cash used by investing
activities from continuing operations
|
(576)
|
|
|
(588)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Increase in short and
long-term debt - net
|
387
|
|
|
2,234
|
Stock repurchases and
retirements
|
(613)
|
|
|
(1,427)
|
Payment of cash
dividends
|
(729)
|
|
|
(674)
|
Dividends paid to
noncontrolling interests
|
(149)
|
|
|
(121)
|
Other - net
|
|
(7)
|
|
|
17
|
|
|
|
|
|
Cash provided (used) by
financing activities from continuing operations
|
(1,111)
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations - Cash used by
operating activities
|
-
|
|
|
(4)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(67)
|
|
|
(49)
|
Increase (decrease) in
cash, cash equivalents and restricted cash
|
$
(923)
|
|
|
$
199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES
|
|
1. Financial
Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company evaluates
the performance of its business units primarily on segment earnings
before interest, taxes and amortization (EBITA), which represents
income before income taxes and noncontrolling interests, excluding
general corporate expenses, intangible asset amortization, net
mark-to-market adjustments related to restricted asbestos
investments and pension and postretirement plans, restructuring and
impairment costs and net financing charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions;
unaudited)
|
|
|
Three Months Ended June
30,
|
|
Nine Months Ended June
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
Adjusted
Non-GAAP
|
|
Actual
|
|
Adjusted
Non-GAAP
|
|
Actual
|
|
Adjusted
Non-GAAP
|
|
Actual
|
|
Adjusted
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Solutions
North America
|
|
|
$
385
|
|
$
385
|
|
$
260
|
|
$
260
|
|
$
967
|
|
$
967
|
|
$
745
|
|
$
745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
|
|
90
|
|
90
|
|
83
|
|
83
|
|
234
|
|
234
|
|
266
|
|
277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
|
|
102
|
|
102
|
|
85
|
|
85
|
|
249
|
|
249
|
|
227
|
|
227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
Products
|
|
|
593
|
|
593
|
|
570
|
|
570
|
|
1,463
|
|
1,473
|
|
1,283
|
|
1,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA
|
|
|
1,170
|
|
1,170
|
|
998
|
|
998
|
|
2,913
|
|
2,923
|
|
2,521
|
|
2,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses
(2)
|
|
|
(122)
|
|
(78)
|
|
(96)
|
|
(87)
|
|
(362)
|
|
(261)
|
|
(226)
|
|
(217)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets (3)
|
|
|
(111)
|
|
(111)
|
|
(102)
|
|
(102)
|
|
(319)
|
|
(319)
|
|
(326)
|
|
(313)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net mark-to-market
gains (losses) (4)
|
|
|
17
|
|
-
|
|
(126)
|
|
-
|
|
16
|
|
-
|
|
(158)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
impairment costs (5)
|
|
|
(81)
|
|
-
|
|
(121)
|
|
-
|
|
(844)
|
|
-
|
|
(554)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (6)
|
|
|
873
|
|
981
|
|
553
|
|
809
|
|
1,404
|
|
2,343
|
|
1,257
|
|
1,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT margin (6)
|
|
|
12.2 %
|
|
13.8 %
|
|
8.4 %
|
|
12.2 %
|
|
7.1 %
|
|
11.8 %
|
|
6.8 %
|
|
10.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net financing
charges
|
|
|
(80)
|
|
(80)
|
|
(49)
|
|
(49)
|
|
(218)
|
|
(218)
|
|
(153)
|
|
(153)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
793
|
|
901
|
|
504
|
|
760
|
|
1,186
|
|
2,125
|
|
1,104
|
|
1,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(provision) (7)
|
|
|
329
|
|
(122)
|
|
(61)
|
|
(102)
|
|
266
|
|
(287)
|
|
(190)
|
|
(243)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
1,122
|
|
779
|
|
443
|
|
658
|
|
1,452
|
|
1,838
|
|
914
|
|
1,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income attributable to
noncontrolling interests (8)
|
|
|
(73)
|
|
(73)
|
|
(64)
|
|
(64)
|
|
(152)
|
|
(152)
|
|
(143)
|
|
(148)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to JCI
|
|
|
$ 1,049
|
|
$
706
|
|
$
379
|
|
$
594
|
|
$
1,300
|
|
$
1,686
|
|
$
771
|
|
$
1,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Company's press
release contains financial information regarding total segment
EBITA, adjusted segment EBITA and adjusted segment EBITA margins,
which are non-GAAP performance measures. The Company's definition
of adjusted segment EBITA excludes other non-recurring items that
are not considered to be directly related to the underlying
operating performance of its businesses. Management believes these
non-GAAP measures are useful to investors in understanding the
ongoing operations and business trends of the
Company.
|
|
|
A reconciliation of
segment EBITA to net income is shown earlier within this footnote.
For the three months ended June 30, 2023 and 2022, there were no
items excluded from the calculation of adjusted segment EBITA. The
following is the nine months ended June 30, 2023 and 2022
reconciliation of segment EBITA and segment EBITA margin as
reported to adjusted segment EBITA and adjusted segment EBITA
margin (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Building
Solutions
North America
|
|
Building
Solutions
EMEA/LA
|
|
Building
Solutions
Asia Pacific
|
|
Total
Building
Solutions
|
|
Global
Products
|
|
Consolidated
JCI plc
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA as
reported
|
$ 967
|
|
$
745
|
|
$
234
|
|
$
266
|
|
$
249
|
|
$
227
|
|
$
1,450
|
|
$ 1,238
|
|
$
1,463
|
|
$ 1,283
|
|
$
2,913
|
|
$
2,521
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA margin as
reported (9)
|
12.8 %
|
|
10.9 %
|
|
7.7 %
|
|
9.3 %
|
|
12.2 %
|
|
11.6 %
|
|
11.5 %
|
|
10.6 %
|
|
20.2 %
|
|
18.5 %
|
|
14.6 %
|
|
13.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silent-Aire earn-out
adjustment
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(30)
|
|
(43)
|
|
(30)
|
|
(43)
|
|
|
|
|
|
|
|
|
|
|
Warehouse fire
loss
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
40
|
|
-
|
|
40
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Charges attributable to
the suspension of operations in Russia
|
-
|
|
-
|
|
-
|
|
11
|
|
-
|
|
-
|
|
-
|
|
11
|
|
-
|
|
-
|
|
-
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment
EBITA
|
$ 967
|
|
$
745
|
|
$
234
|
|
$
277
|
|
$
249
|
|
$
227
|
|
$
1,450
|
|
$ 1,249
|
|
$
1,473
|
|
$ 1,240
|
|
$
2,923
|
|
$
2,489
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment EBITA
margin (9)
|
12.8 %
|
|
10.9 %
|
|
7.7 %
|
|
9.7 %
|
|
12.2 %
|
|
11.6 %
|
|
11.5 %
|
|
10.7 %
|
|
20.4 %
|
|
17.9 %
|
|
14.7 %
|
|
13.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Adjusted Corporate
expenses for the three and nine months ended June 30, 2023 excludes
certain transaction/separation costs of $44 million and $101
million, respectively. Adjusted Corporate expenses for the three
and nine months ended June 30, 2022 excludes $9 million of
transaction/separation costs.
|
|
|
(3) Adjusted
amortization of intangible assets for the nine months ended June
30, 2022 excludes nonrecurring intangible asset amortization
related to Silent-Aire purchase accounting of $13
million.
|
|
|
(4) Adjusted results
for the three and nine months ended June 30, 2023 exclude net
mark-to-market gains on restricted asbestos investments and pension
and postretirement plans of $17 million and $16 million,
respectively. The three and nine months ended June 30, 2022 exclude
net mark-to-market losses on restricted asbestos investments and
pension and postretirement plans of $126 million and $158 million,
respectively.
|
|
|
(5) Adjusted results
for the three and nine months ended June 30, 2023 exclude
restructuring and impairment costs of $81 million and $844 million,
respectively. The restructuring actions and impairment costs for
the three and nine months ended June 30, 2023 are related primarily
to workforce reductions, impairment of goodwill attributable to the
Company's Silent-Aire reporting unit, impairment of assets
associated with businesses previously classified as held for sale
and other asset impairments. Adjusted results for the three and
nine months ended June 30, 2022 exclude restructuring and
impairment costs of $121 million and $554 million, respectively.
The restructuring actions and impairment costs for the three and
nine months ended June 30, 2022 are related primarily to the
impairment of assets associated with a business classified or
previously classified as held for sale, workforce reductions and
other asset impairments.
|
|
|
(6) Management defines
earnings before interest and taxes (EBIT) as income before net
financing charges, income taxes and noncontrolling interests. EBIT
margin is defined as EBIT divided by net sales. EBIT and EBIT
margin are non-GAAP performance measures. Management believes these
non-GAAP measures are useful to investors in understanding the
ongoing operations and business trends of the Company. A
reconciliation of EBIT to net income is shown earlier within this
footnote.
|
|
|
(7) Adjusted income tax
provision for the three months ended June 30, 2023 excludes net tax
benefits related to adjustments to reserves for uncertain tax
positions of $438 million and the net tax effect of other pre-tax
adjusting items of $13 million. Adjusted income tax provision for
the nine months ended June 30, 2023 excludes net tax benefits
related to adjustments to reserves for uncertain tax positions of
$438 million and the net tax effect of other pre-tax adjusting
items of $115 million. Adjusted income tax provision for the three
and nine months ended June 30, 2022 excludes the net tax benefit of
pre-tax adjusting items of $41 million and $53 million,
respectively.
|
|
|
(8) Adjusted income
from continuing operations attributable to noncontrolling interests
for the nine months ended June 30, 2022 excludes $5 million impact
from restructuring and impairment costs.
|
|
|
(9) Segment EBITA
margin is defined as segment EBITA divided by segment net sales, as
disclosed in the Company's press release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's press
release and earnings presentation include forward-looking
statements regarding organic revenue growth, adjusted segment EBITA
margin improvement, free cash flow and adjusted EPS, which are
non-GAAP financial measures. These non-GAAP financial measures are
derived by excluding certain amounts from the corresponding
financial measures determined in accordance with GAAP. The
determination of the amounts excluded is a matter of management
judgment and depends upon, among other factors, the nature of the
underlying expense or income amounts recognized in a given period
and the high variability of certain amounts, such as mark-to-market
adjustments. Organic revenue growth excludes the effect of
acquisitions, divestitures and foreign currency. We are unable to
present a quantitative reconciliation of the aforementioned
forward-looking non-GAAP financial measures to their most directly
comparable forward-looking GAAP financial measures because such
information is not available, and management cannot reliably
predict the necessary components of such GAAP measures without
unreasonable effort or expense. The unavailable information could
have a significant impact on the Company's fiscal 2023 fourth
quarter and full year GAAP financial results.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.
Diluted Earnings Per Share Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's press
release contains financial information regarding adjusted earnings
per share, which is a non-GAAP performance measure. The adjusting
items shown in the table below are excluded because these items are
not considered to be directly related to the underlying operating
performance of the Company. Management believes this non-GAAP
measure is useful to investors in understanding the ongoing
operations and business trends of the Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of
diluted earnings per share as reported to adjusted diluted earnings
per share for the respective periods is shown below
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable
to JCI plc
|
|
Net Income
Attributable
to JCI plc
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share as
reported for JCI plc
|
$ 1.53
|
|
$
0.55
|
|
$
1.89
|
|
$
1.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
mark-to-market adjustments
|
(0.02)
|
|
0.18
|
|
(0.02)
|
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax
impact
|
0.01
|
|
(0.05)
|
|
-
|
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
and impairment costs
|
0.12
|
|
0.17
|
|
1.23
|
|
0.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax
impact
|
(0.02)
|
|
(0.02)
|
|
(0.14)
|
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NCI impact of
restructuring and impairment costs
|
-
|
|
-
|
|
-
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silent-Aire
other nonrecurring costs
|
-
|
|
-
|
|
-
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction/separation costs
|
0.06
|
|
0.01
|
|
0.15
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax
impact
|
(0.01)
|
|
-
|
|
(0.01)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silent-Aire
earn-out adjustment
|
-
|
|
-
|
|
(0.04)
|
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warehouse fire
loss
|
-
|
|
-
|
|
0.06
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax
impact
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges
attributable to the suspension of operations in Russia
|
-
|
|
-
|
|
-
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discrete tax
items
|
(0.64)
|
|
0.01
|
|
(0.64)
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share for JCI plc*
|
$ 1.03
|
|
$
0.85
|
|
$
2.45
|
|
$
2.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* May not sum due to
rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
reconciles the denominators used to calculate basic and diluted
earnings per share for JCI plc (in millions;
unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding for JCI plc
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
shares outstanding
|
683.3
|
|
692.2
|
|
685.7
|
|
698.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options,
unvested restricted stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
unvested performance share awards
|
2.9
|
|
2.7
|
|
3.1
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
686.2
|
|
694.9
|
|
688.8
|
|
702.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.
Organic Growth Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
change in net sales for the three months ended June 30, 2023 versus
the three months ended June 30, 2022, including organic growth, are
shown below (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Net Sales for the
Three Months Ended
June 30, 2022
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
-
Foreign Currency
|
|
Adjusted Base Net
Sales for the
Three Months Ended
June 30, 2022
|
|
Acquisitions
|
|
Organic
Growth
|
|
Net Sales for the
Three Months Ended
June 30, 2023
|
|
|
|
|
|
|
Building Solutions
North America
|
$
2,426
|
|
$
-
|
|
-
|
|
$
(12)
|
|
-
|
|
$
2,414
|
|
$
5
|
|
-
|
|
$ 246
|
|
10 %
|
|
$
2,665
|
|
10 %
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
952
|
|
(4)
|
|
-
|
|
(2)
|
|
-
|
|
946
|
|
10
|
|
1 %
|
|
89
|
|
9 %
|
|
1,045
|
|
10 %
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
665
|
|
-
|
|
-
|
|
(35)
|
|
-5 %
|
|
630
|
|
8
|
|
1 %
|
|
98
|
|
16 %
|
|
736
|
|
11 %
|
|
|
|
|
|
|
Total Building Solutions
|
4,043
|
|
(4)
|
|
-
|
|
(49)
|
|
-1 %
|
|
3,990
|
|
23
|
|
1 %
|
|
433
|
|
11 %
|
|
4,446
|
|
10 %
|
|
|
|
|
|
|
Global
Products
|
2,571
|
|
-
|
|
-
|
|
(51)
|
|
-2 %
|
|
2,520
|
|
5
|
|
-
|
|
162
|
|
6 %
|
|
2,687
|
|
5 %
|
|
|
|
|
|
|
Total net sales
|
$
6,614
|
|
$
(4)
|
|
-
|
|
$
(100)
|
|
-2 %
|
|
$
6,510
|
|
$
28
|
|
-
|
|
$ 595
|
|
9 %
|
|
$
7,133
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
change in net sales for the nine months ended June 30, 2023 versus
the nine months ended June 30, 2022, including organic growth, are
shown below (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Net Sales for the
Nine Months Ended
June 30, 2022
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
-
Foreign Currency
|
|
Adjusted Base Net
Sales for the
Nine Months Ended
June 30, 2022
|
|
Acquisitions
|
|
Organic
Growth
|
|
Net Sales for the
Nine Months Ended
June 30, 2023
|
|
|
|
|
|
|
Building Solutions
North America
|
$
6,805
|
|
$
-
|
|
-
|
|
$
(41)
|
|
-1 %
|
|
$
6,764
|
|
$
17
|
|
-
|
|
$ 771
|
|
11 %
|
|
$
7,552
|
|
11 %
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
2,869
|
|
(27)
|
|
-1 %
|
|
(141)
|
|
-5 %
|
|
2,701
|
|
54
|
|
2 %
|
|
296
|
|
11 %
|
|
3,051
|
|
6 %
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
1,963
|
|
-
|
|
-
|
|
(147)
|
|
-7 %
|
|
1,816
|
|
8
|
|
-
|
|
225
|
|
12 %
|
|
2,049
|
|
4 %
|
|
|
|
|
|
|
Total Building Solutions
|
11,637
|
|
(27)
|
|
-
|
|
(329)
|
|
-3 %
|
|
11,281
|
|
79
|
|
1 %
|
|
1,292
|
|
11 %
|
|
12,652
|
|
9 %
|
|
|
|
|
|
|
Global
Products
|
6,937
|
|
-
|
|
-
|
|
(269)
|
|
-4 %
|
|
6,668
|
|
5
|
|
-
|
|
562
|
|
8 %
|
|
7,235
|
|
4 %
|
|
|
|
|
|
|
Total net sales
|
$
18,574
|
|
$
(27)
|
|
-
|
|
$
(598)
|
|
-3 %
|
|
$
17,949
|
|
$
84
|
|
-
|
|
$
1,854
|
|
10 %
|
|
$
19,887
|
|
7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
change in total service revenue for the three months ended June 30,
2023 versus the three months ended June 30, 2022, including organic
growth, are shown below (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Service Revenue
for the
Three Months Ended
June 30, 2022
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
-
Foreign Currency
|
|
Adjusted Base
Service
Revenue for the
Three Months Ended
June 30, 2022
|
|
Acquisitions
|
|
Organic
Growth
|
|
Service Revenue
for the
Three Months Ended
June 30, 2023
|
|
|
|
|
|
|
Building Solutions
North America
|
$
945
|
|
$
-
|
|
-
|
|
$
(4)
|
|
-
|
|
$
941
|
|
$
5
|
|
1 %
|
|
$
83
|
|
9 %
|
|
$
1,029
|
|
9 %
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
415
|
|
-
|
|
-
|
|
(7)
|
|
-2 %
|
|
408
|
|
3
|
|
1 %
|
|
63
|
|
15 %
|
|
474
|
|
14 %
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
172
|
|
-
|
|
-
|
|
(7)
|
|
-4 %
|
|
165
|
|
3
|
|
2 %
|
|
31
|
|
19 %
|
|
199
|
|
16 %
|
|
|
|
|
|
|
Total Building Solutions
|
1,532
|
|
-
|
|
-
|
|
(18)
|
|
-1 %
|
|
1,514
|
|
11
|
|
1 %
|
|
177
|
|
12 %
|
|
1,702
|
|
11 %
|
|
|
|
|
|
|
Global
Products
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
Total service revenue
|
$
1,532
|
|
$
-
|
|
-
|
|
$
(18)
|
|
-1 %
|
|
$
1,514
|
|
$
11
|
|
1 %
|
|
$ 177
|
|
12 %
|
|
$
1,702
|
|
11 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
change in total service revenue for the nine months ended June 30,
2023 versus the nine months ended June 30, 2022, including organic
growth, are shown below (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Service Revenue
for the
Nine Months Ended
June 30, 2022
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
-
Foreign Currency
|
|
Adjusted Base
Service
Revenue for the
Nine Months Ended
June 30, 2022
|
|
Acquisitions
|
|
Organic
Growth
|
|
Service Revenue
for the
Nine Months Ended
June 30, 2023
|
|
|
|
|
|
|
Building Solutions
North America
|
$
2,682
|
|
$
-
|
|
-
|
|
$
(15)
|
|
-1 %
|
|
$
2,667
|
|
$
17
|
|
1 %
|
|
$ 227
|
|
9 %
|
|
$
2,911
|
|
9 %
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
1,252
|
|
(12)
|
|
-1 %
|
|
(72)
|
|
-6 %
|
|
1,168
|
|
10
|
|
1 %
|
|
168
|
|
14 %
|
|
1,346
|
|
8 %
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
521
|
|
-
|
|
-
|
|
(36)
|
|
-7 %
|
|
485
|
|
3
|
|
1 %
|
|
72
|
|
15 %
|
|
560
|
|
7 %
|
|
|
|
|
|
|
Total Building Solutions
|
4,455
|
|
(12)
|
|
-
|
|
(123)
|
|
-3 %
|
|
4,320
|
|
30
|
|
1 %
|
|
467
|
|
11 %
|
|
4,817
|
|
8 %
|
|
|
|
|
|
|
Global
Products
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
Total service revenue
|
$
4,455
|
|
$
(12)
|
|
-
|
|
$
(123)
|
|
-3 %
|
|
$
4,320
|
|
$
30
|
|
1 %
|
|
$ 467
|
|
11 %
|
|
$
4,817
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
change in total install revenue for the three months ended June 30,
2023 versus the three months ended June 30, 2022, including organic
growth, are shown below (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Install Revenue
for the
Three Months Ended
June 30, 2022
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
-
Foreign Currency
|
|
Adjusted Base Install
Revenue for the
Three Months Ended
June 30, 2022
|
|
Acquisitions
|
|
Organic
Growth
|
|
Install Revenue
for the
Three Months Ended
June 30, 2023
|
|
|
|
|
|
|
Building Solutions
North America
|
$
1,481
|
|
$
-
|
|
-
|
|
$
(8)
|
|
-1 %
|
|
$
1,473
|
|
$
-
|
|
-
|
|
$ 163
|
|
11 %
|
|
$
1,636
|
|
10 %
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
537
|
|
(3)
|
|
-1 %
|
|
5
|
|
1 %
|
|
539
|
|
7
|
|
1 %
|
|
25
|
|
5 %
|
|
571
|
|
6 %
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
493
|
|
-
|
|
-
|
|
(28)
|
|
-6 %
|
|
465
|
|
5
|
|
1 %
|
|
67
|
|
14 %
|
|
537
|
|
9 %
|
|
|
|
|
|
|
Total Building Solutions
|
2,511
|
|
(3)
|
|
-
|
|
(31)
|
|
-1 %
|
|
2,477
|
|
12
|
|
-
|
|
255
|
|
10 %
|
|
2,744
|
|
9 %
|
|
|
|
|
|
|
Global
Products
|
2,571
|
|
-
|
|
-
|
|
(51)
|
|
-2 %
|
|
2,520
|
|
5
|
|
-
|
|
162
|
|
6 %
|
|
2,687
|
|
5 %
|
|
|
|
|
|
|
Total install revenue
|
$
5,082
|
|
$
(3)
|
|
-
|
|
$
(82)
|
|
-2 %
|
|
$
4,997
|
|
$
17
|
|
-
|
|
$ 417
|
|
8 %
|
|
$
5,431
|
|
7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. Free Cash
Flow Conversion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's press
release contains financial information regarding free cash flow and
free cash flow conversion, which are non-GAAP performance measures.
We also present below free cash flow conversion from the GAAP
measure of net income attributable to JCI. Effective January 1,
2023, the Company has excluded the impact of its financing entity,
JC Capital, from the calculation of free cash flow. Management
believes this provides a more true representation of the Company's
operational ability to convert cash, without the contrary impact
from financing activities. The impact on interim and annual periods
prior to January 1, 2023 was not material. JC Capital cash flows
that are excluded from the calculation of free cash flow primarily
include activity associated with finance/notes receivables and
inventory and/or capital expenditures related to lease
arrangements. JC Capital net income that is excluded is primarily
related to interest income on the finance/notes receivable and
profit recognized on arrangements with sales-type lease
components.
Free cash flow is defined as cash provided (used) by operating
activities, excluding JC Capital, less capital expenditures,
excluding JC Capital. Free cash flow conversion from net income is
defined as free cash flow divided by net income attributable to
JCI. Free cash flow conversion is defined as free cash flow divided
by adjusted net income attributable to JCI, excluding JC Capital.
Management believes these non-GAAP measures are useful to investors
in understanding the strength of the Company and its ability to
generate cash. These non-GAAP measures can also be used to evaluate
our ability to generate cash flow from operations and the impact
that this cash flow has on our liquidity.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is the
three and nine months ended June 30, 2023 and 2022 calculation of
free cash flow (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
June 30,
2023
|
|
June 30,
2022
|
|
June 30,
2023
|
|
June 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities from continuing
operations
|
$
813
|
|
$
487
|
|
$
831
|
|
$
811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: JC Capital cash
used by operating activities
from continuing operations
|
(39)
|
|
-
|
|
(81)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities from continuing
operations, excluding JC Capital
|
$
852
|
|
$
487
|
|
$
912
|
|
$
811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
(111)
|
|
$
(170)
|
|
$
(366)
|
|
$
(430)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: JC Capital
capital expenditures
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures,
excluding JC Capital
|
$
(111)
|
|
$
(170)
|
|
$
(366)
|
|
$
(430)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
$
741
|
|
$
317
|
|
$
546
|
|
$
381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is the
nine months ended June 30, 2023 and 2022 calculation of free cash
flow conversion from net income and free cash flow conversion
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
June 30,
2023
|
|
June 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to JCI
|
$
1,300
|
|
$
771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
conversion from net income
|
42 %
|
|
49 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to JCI
|
$
1,686
|
|
$
1,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: JC Capital net
income
|
12
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to JCI, excluding JC Capital
|
$
1,674
|
|
$
1,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
conversion
|
33 %
|
|
27 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5. Debt Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's earnings
presentation provides financial information regarding net debt to
adjusted EBITDA, which is a non-GAAP performance measure. We also
present below net debt to income before income taxes. The Company
believes these ratios are useful to understanding the Company's
financial condition as they provide an overview of the extent to
which the Company relies on external debt financing for its funding
and are a measure of risk to its shareholders. The following is the
June 30, 2023, March 31, 2023, and June 30, 2022 calculation of net
debt to income before income taxes and net debt to adjusted EBITDA
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
1,267
|
|
$
2,659
|
|
$
2,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
8,497
|
|
7,832
|
|
7,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
9,764
|
|
10,491
|
|
9,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: cash and cash
equivalents
|
1,057
|
|
1,975
|
|
1,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
debt
|
$
8,707
|
|
$
8,516
|
|
$
7,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Last twelve months
income before income taxes
|
$
1,792
|
|
$
1,503
|
|
$
1,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net debt to
income before income taxes
|
4.9x
|
|
5.7x
|
|
4.2x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Last twelve months
adjusted EBITDA
|
$
4,078
|
|
$
3,895
|
|
$
3,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net debt to
adjusted EBITDA
|
2.1x
|
|
2.2x
|
|
2.2x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is the
last twelve months ended June 30, 2023, March 31, 2023, and June
30, 2022 reconciliation of income from continuing operations to
adjusted EBIT and adjusted EBITDA, which are non-GAAP performance
measures (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Last Twelve
Months
Ended
June 30, 2023
|
|
Last Twelve
Months
Ended
March 31, 2023
|
|
Last Twelve
Months
Ended
June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
2,261
|
|
$
1,582
|
|
$
1,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit)
|
(469)
|
|
(79)
|
|
680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net financing
charges
|
278
|
|
247
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
2,070
|
|
1,750
|
|
2,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
mark-to-market adjustments
|
(208)
|
|
(65)
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and impairment costs
|
1,011
|
|
1,051
|
|
621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental remediation and related reserves
adjustment
|
255
|
|
255
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silent-Aire other nonrecurring costs
|
|
|
-
|
|
|
|
-
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silent-Aire earn-out adjustment
|
|
|
(30)
|
|
|
|
(30)
|
|
|
|
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges
attributable to the suspension of operations in Russia
|
-
|
|
-
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warehouse
fire loss
|
|
|
40
|
|
|
|
40
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction/separation costs
|
|
|
122
|
|
|
|
87
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
(1)
|
3,260
|
|
3,088
|
|
2,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
818
|
|
807
|
|
831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
$
4,078
|
|
$
3,895
|
|
$
3,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Company's
definition of adjusted EBIT and adjusted EBITDA excludes special
items that are not considered to be directly related to the
underlying operating performance of its businesses. Management
believes this non-GAAP measure is useful to investors in
understanding the ongoing operations and business trends of the
Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6. Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's effective
tax rate from continuing operations before consideration of net
mark-to-market adjustments, restructuring and impairment costs,
Silent-Aire nonrecurring intangible asset amortization and purchase
accounting, charges attributable to the suspension of operations in
Russia, discrete tax items, certain transaction/separation costs
and warehouse fire loss for the three and nine months ending June
30, 2023 and June 30, 2022 is approximately 13.5%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/johnson-controls-reports-strong-revenue-and-eps-growth-in-q3-updates-fy23-guidance-301891167.html
SOURCE Johnson Controls International plc