- Q4 reported sales increased 3% versus prior year and up 2%
organically; full year reported sales up 6% and increased 8%
organically
- Q4 GAAP EPS of $0.80; Q4 Adjusted
EPS of $1.05, including a
$0.04 headwind from the cyber
incident, up 6% versus prior year; full year GAAP EPS of
$2.69; full year Adjusted EPS of
$3.50, up 17% versus prior year.
Results include a $0.04 headwind from
the cyber incident.
- Q4 Orders +9% organically year-over year; full year orders +7%
organically year-over-year
- Record backlog of $12.1 billion,
increased 9% organically year-over-year
CORK,
Ireland, Dec. 12, 2023 /PRNewswire/ -- Johnson
Controls International plc (NYSE: JCI), a global leader for smart,
healthy and sustainable buildings, today reported fiscal fourth
quarter 2023 GAAP earnings per share ("EPS") from continuing
operations of $0.80. Excluding
special items, adjusted EPS from continuing operations was
$1.05, up 6% versus the prior year
period (see attached footnotes for non-GAAP reconciliation).
Sales in the quarter of $6.9
billion increased 3% compared to the prior year on an as
reported basis and grew 2% organically. GAAP net income from
continuing operations was $549
million. Adjusted net income from continuing operations of
$719 million was up 5% versus the
prior year. Earnings before interest and taxes ("EBIT") was
$587 million and EBIT margin was
8.5%. Adjusted EBIT was $936 million
and adjusted EBIT margin was 13.6%, flat versus the prior year.
"Our fiscal 2023 results, highlighted by strong sales growth and
margin expansion, further validate that our strategy of providing
solutions that make buildings smarter, healthier, and more
sustainable continues to gain momentum," said Chairman and CEO
George Oliver. "We made significant
progress during the year advancing our service strategy, enabled by
digital, and we continue to see strong order momentum and record
backlog entering our new fiscal year."
"Our resilient backlog continues to grow as we saw strong order
growth in both our Install and Service businesses throughout the
fiscal year," said Chief Financial Officer Olivier Leonetti. "Our value proposition
continues to resonate with our customers globally and we have
plenty of runway for ongoing top line growth, margin expansion, and
improving cash flow going forward."
Income and EPS amounts attributable to Johnson Controls
ordinary shareholders
($ 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 fourth quarter of 2022.
Organic sales growth, 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
2024 first 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
Q4
|
|
GAAP
|
Adjusted
|
|
2022
|
2023
|
2022
|
2023
|
Sales
|
$6,725
|
$6,906
|
$6,725
|
$6,906
|
Segment
EBITA
|
885
|
1,105
|
1,107
|
1,105
|
EBIT
|
666
|
587
|
917
|
936
|
Net income attributable
to JCI
|
761
|
549
|
682
|
719
|
|
|
|
|
|
Diluted EPS from
continuing operations
|
$1.10
|
$0.80
|
$0.99
|
$1.05
|
|
|
|
|
|
SEGMENT RESULTS
Building Solutions North America
|
Fiscal
Q4
|
|
GAAP
|
Adjusted
|
|
2022
|
2023
|
2022
|
2023
|
Sales
|
$2,562
|
$2,778
|
$2,562
|
$2,778
|
Segment
EBITA
|
377
|
427
|
377
|
427
|
Segment EBITA Margin
%
|
14.7 %
|
15.4 %
|
14.7 %
|
15.4 %
|
Sales in the quarter of $2.8
billion increased 8% versus the prior year. Organic sales
increased 8% over the prior year with strong growth in both Service
and Install, led by another strong quarter of double-digit growth
in Applied HVAC & Controls.
Orders in the quarter, excluding M&A and adjusted for
foreign currency, increased 8% year-over-year. Backlog at the end
of the quarter of $8.3 billion
increased 10% compared to the prior year, excluding M&A and
adjusted for foreign currency.
Segment EBITA was $427 million, up
13% versus the prior year. Segment EBITA margin of 15.4% expanded
70 basis points versus the prior year led by higher margin backlog
conversion and continued strong growth in Services.
Building Solutions EMEA/LA (Europe, Middle
East, Africa/Latin America)
|
Fiscal
Q4
|
|
GAAP
|
Adjusted
|
|
2022
|
2023
|
2022
|
2023
|
Sales
|
$976
|
$1,045
|
$976
|
$1,045
|
Segment
EBITA
|
92
|
82
|
92
|
82
|
Segment EBITA Margin
%
|
9.4 %
|
7.8 %
|
9.4 %
|
7.8 %
|
Sales in the quarter of $1.0
billion increased 7% versus the prior year. Organic sales
grew 3% versus the prior year led by growth in Applied HVAC &
Controls and Fire & Security. Service grew mid-teens in the
quarter.
Orders in the quarter, excluding M&A and adjusted for
foreign currency, increased 16% year-over-year. Backlog at the
end of the quarter of $2.3 billion
increased 10% year-over-year, excluding M&A and adjusted for
foreign currency.
Segment EBITA of $82 million,
declined 11% versus the prior year. Segment EBITA margin of 7.8%
declined 160 basis points versus the prior year as lower margin
backlog was converted, in addition to ongoing pension
headwinds.
Building Solutions Asia Pacific
|
Fiscal
Q4
|
|
GAAP
|
Adjusted
|
|
2022
|
2023
|
2022
|
2023
|
Sales
|
$751
|
$697
|
$751
|
$697
|
Segment
EBITA
|
105
|
94
|
105
|
94
|
Segment EBITA Margin
%
|
14.0 %
|
13.5 %
|
14.0 %
|
13.5 %
|
Sales in the quarter of $697
million declined 7% versus the prior year. Organic sales
declined 6% versus the prior year as the Install business has been
negatively impacted by weakness in China partially offset by double-digit growth
in Service.
Orders in the quarter, excluding M&A and adjusted for
foreign currency, increased 3% year-over-year. Backlog at the
end of the quarter of $1.5 billion
decreased 2% year-over-year, excluding M&A and adjusted for
foreign currency.
Segment EBITA was $94 million,
down 11% versus the prior year. Segment EBITA margin of 13.5%
declined 50 basis points versus the prior year owing primarily to
weakness in the China Install business.
Global Products
|
Fiscal
Q4
|
|
GAAP
|
Adjusted
|
|
2022
|
2023
|
2022
|
2023
|
Sales
|
$2,436
|
$2,386
|
$2,436
|
$2,386
|
Segment
EBITA
|
311
|
502
|
533
|
502
|
Segment EBITA Margin
%
|
12.8 %
|
21.0 %
|
21.9 %
|
21.0 %
|
Sales in the quarter of $2.4
billion declined 2% versus the prior year. Organic sales
were down 2% versus the prior year as high single-digit growth in
Commercial HVAC was not enough to offset declines in global
Residential sales.
Adjusted segment EBITA was $502
million, down 6% versus the prior year. Adjusted segment
EBITA margin of 21.0% declined 85 basis points versus the prior
year as the result of lower manufacturing absorption and mix.
Segment EBITA in Q4 2022 includes the unfavorable impact of certain
environmental remediation and related reserve adjustments.
Corporate
|
Fiscal
Q4
|
|
GAAP
|
Adjusted
|
|
2022
|
2023
|
2022
|
2023
|
Corporate
Expense
|
($143)
|
($70)
|
($89)
|
($49)
|
Corporate expense was $70 million
in the quarter, a decrease of 51% compared to the prior year.
Adjusted Corporate expense excludes transaction/separation costs in
both Q4 2022 and Q4 2023.
OTHER Q4 ITEMS
- Cash provided by operating activities from continuing
operations was $1,390 million, while
cash provided by operating activities from continuing operations,
excluding JC Capital, was $1,446
million. Capital expenditures were $173 million, resulting in a free cash flow from
continuing operations of $1,273
million.
- The Company repurchased 0.2 million shares for approximately
$12 million. During fiscal year 2023,
the Company repurchased 10.5 million shares for approximately
$625 million.
- The Company completed a $105
million cash tender offer for a portion of its outstanding
5.125% Senior Notes due 2045.
- The Company recorded net pre-tax mark-to-market losses of
$108 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 $220 million.
- The Company recorded a discrete period net tax benefit of
$121 million related to favorable
valuation allowance adjustments on certain deferred tax
assets.
FIRST QUARTER GUIDANCE
The Company initiated fiscal 2024 first quarter guidance:
- Organic revenue ~flat year-over-year
- Adjusted segment EBITA margin of ~13.0%
- Adjusted EPS before special items of ~$0.48 to $0.50
FULL YEAR GUIDANCE
The Company initiated fiscal 2024 full year EPS guidance:
- Organic revenue growth up ~MSD year-over year
- Adjusted segment EBITA margin improvement of ~25+ basis points,
year-over-year
- Adjusted EPS before special items of ~$3.65 to $3.80
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 develop or acquire new products and
technologies that achieve market acceptance and meet applicable
quality and regulatory requirements; the ability to manage general
economic, business and capital market conditions, including the
impact of recessions, economic downturns and global price
inflation; fluctuations in the cost and availability of public and
private financing for its customers; the ability to innovate and
adapt to emerging technologies, ideas and trends in the
marketplace, including the incorporation of technologies such as
artificial intelligence; the ability to manage macroeconomic and
geopolitical volatility, including shortages impacting the
availability of raw materials and component products and the
conflicts between Russia and
Ukraine and Israel and Hamas; managing the risks and
impacts of potential and actual security breaches, cyberattacks,
privacy breaches or data breaches, including business, service, or
operational disruptions, the unauthorized access to or disclosure
of data, financial loss, reputational damage, increased response
and remediation costs, legal, and regulatory proceedings or other
unfavorable outcomes; maintaining and improving 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; changes to laws or
policies governing foreign trade, including economic sanctions,
tariffs, foreign exchange and capital controls, import/export
controls or other trade restrictions; fluctuations in currency
exchange rates; changes or uncertainty in laws, regulations, rates,
policies, or interpretations that impact Johnson Controls business
operations or tax status; the ability to adapt to global climate
change, climate change regulation and successfully meet Johnson
Controls public sustainability commitments; the outcome of
litigation and governmental proceedings; the risk of infringement
or expiration of intellectual property rights; Johnson Controls
ability to manage disruptions caused by catastrophic or
geopolitical events, such as natural disasters, armed conflict,
political change, climate change, pandemics and outbreaks of
contagious diseases and other adverse public health developments;
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, 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,
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
September 30,
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
Net sales
|
$
6,906
|
|
|
$
6,725
|
Cost of
sales
|
4,698
|
|
|
4,430
|
|
Gross profit
|
2,208
|
|
|
2,295
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(1,476)
|
|
|
(1,533)
|
Restructuring and
impairment costs
|
(220)
|
|
|
(167)
|
Net financing
charges
|
(63)
|
|
|
(60)
|
Equity
income
|
75
|
|
|
71
|
|
|
|
|
|
|
Income before income
taxes
|
524
|
|
|
606
|
|
|
|
|
|
|
Income tax
benefit
|
(57)
|
|
|
(203)
|
|
|
|
|
|
|
Net income
|
581
|
|
|
809
|
|
|
|
|
|
|
Income attributable to
noncontrolling interests
|
32
|
|
|
48
|
|
|
|
|
|
|
Net income attributable
to JCI
|
$
549
|
|
|
$
761
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
0.80
|
|
|
$
1.10
|
|
|
|
|
|
|
Diluted weighted
average shares
|
683.3
|
|
|
691.2
|
Shares outstanding at
period end
|
680.4
|
|
|
688.7
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(in millions, except
per share data; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
September 30,
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
Net sales
|
$
26,793
|
|
|
$
25,299
|
Cost of
sales
|
17,822
|
|
|
16,956
|
|
Gross profit
|
8,971
|
|
|
8,343
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(6,181)
|
|
|
(5,945)
|
Restructuring and
impairment costs
|
(1,064)
|
|
|
(721)
|
Net financing
charges
|
(281)
|
|
|
(213)
|
Equity
income
|
265
|
|
|
246
|
|
|
|
|
|
|
Income before income
taxes
|
1,710
|
|
|
1,710
|
|
|
|
|
|
|
Income tax
benefit
|
(323)
|
|
|
(13)
|
|
|
|
|
|
|
Net income
|
2,033
|
|
|
1,723
|
|
|
|
|
|
|
Income attributable to
noncontrolling interests
|
184
|
|
|
191
|
|
|
|
|
|
|
Net income attributable
to JCI
|
$
1,849
|
|
|
$
1,532
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
2.69
|
|
|
$
2.19
|
|
|
|
|
|
|
Diluted weighted
average shares
|
687.4
|
|
|
699.6
|
Shares outstanding at
period end
|
680.4
|
|
|
688.7
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2023
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
835
|
|
$
2,031
|
|
Accounts receivable -
net
|
6,006
|
|
5,727
|
|
Inventories
|
|
2,776
|
|
2,665
|
|
Other current
assets
|
1,120
|
|
1,262
|
|
|
Current
assets
|
10,737
|
|
11,685
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
3,136
|
|
3,131
|
|
Goodwill
|
|
17,936
|
|
17,350
|
|
Other intangible assets
- net
|
4,888
|
|
5,155
|
|
Investments in
partially-owned affiliates
|
1,056
|
|
963
|
|
Other noncurrent
assets
|
4,489
|
|
3,874
|
|
|
Total assets
|
$
42,242
|
|
$
42,158
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
1,030
|
|
$
1,534
|
|
Accounts payable and
accrued expenses
|
5,226
|
|
5,371
|
|
Other current
liabilities
|
4,828
|
|
4,334
|
|
|
Current
liabilities
|
11,084
|
|
11,239
|
|
|
|
|
|
|
|
Long-term
debt
|
|
7,818
|
|
7,426
|
|
Other noncurrent
liabilities
|
5,646
|
|
6,091
|
|
Shareholders' equity
attributable to JCI
|
16,545
|
|
16,268
|
|
Noncontrolling
interests
|
1,149
|
|
1,134
|
|
|
Total liabilities and
equity
|
$
42,242
|
|
$
42,158
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
2023
|
|
|
2022
|
Operating
Activities
|
|
|
|
|
Net income attributable
to JCI
|
$
549
|
|
|
$
761
|
Income attributable to
noncontrolling interests
|
32
|
|
|
48
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
581
|
|
|
809
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to cash provided (used) by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
227
|
|
|
197
|
|
|
Pension and
postretirement benefit expense (income)
|
84
|
|
|
(224)
|
|
|
Pension and
postretirement contributions
|
(19)
|
|
|
(13)
|
|
|
Equity in earnings of
partially-owned affiliates, net of dividends received
|
(71)
|
|
|
55
|
|
|
Deferred income
taxes
|
(406)
|
|
|
100
|
|
|
Non-cash restructuring
and impairment costs
|
126
|
|
|
125
|
|
|
Other - net
|
-
|
|
|
12
|
|
|
Changes in assets and
liabilities, excluding acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
499
|
|
|
210
|
|
|
|
|
Inventories
|
302
|
|
|
(12)
|
|
|
|
|
Other assets
|
(2)
|
|
|
(86)
|
|
|
|
|
Restructuring
reserves
|
26
|
|
|
(5)
|
|
|
|
|
Accounts payable and
accrued liabilities
|
(93)
|
|
|
482
|
|
|
|
|
Accrued income
taxes
|
136
|
|
|
(471)
|
|
|
|
|
|
Cash provided by
operating activities from continuing operations
|
1,390
|
|
|
1,179
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital
expenditures
|
(173)
|
|
|
(162)
|
Acquisition of
businesses, net of cash acquired
|
(466)
|
|
|
(33)
|
Other - net
|
|
31
|
|
|
90
|
|
|
|
|
|
Cash used by investing
activities from continuing operations
|
(608)
|
|
|
(105)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Decrease in short and
long-term debt - net
|
(820)
|
|
|
(268)
|
Stock repurchases and
retirements
|
(12)
|
|
|
(14)
|
Payment of cash
dividends
|
(251)
|
|
|
(242)
|
Other - net
|
|
20
|
|
|
(21)
|
|
|
|
|
|
Cash used by financing
activities from continuing operations
|
(1,063)
|
|
|
(545)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
62
|
|
|
(4)
|
Increase (decrease)
in cash, cash equivalents and restricted cash
|
$
(219)
|
|
|
$
525
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
September 30,
|
|
|
|
|
|
|
2023
|
|
|
2022
|
Operating
Activities
|
|
|
|
|
Net income attributable
to JCI
|
$
1,849
|
|
|
$
1,532
|
Income attributable to
noncontrolling interests
|
184
|
|
|
191
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
2,033
|
|
|
1,723
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income to cash provided (used) by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
848
|
|
|
830
|
|
|
Pension and
postretirement benefit expense (income)
|
61
|
|
|
(216)
|
|
|
Pension and
postretirement contributions
|
(57)
|
|
|
(96)
|
|
|
Equity in earnings of
partially-owned affiliates, net of dividends received
|
(98)
|
|
|
30
|
|
|
Deferred income
taxes
|
(676)
|
|
|
(141)
|
|
|
Non-cash restructuring
and impairment costs
|
827
|
|
|
555
|
|
|
Other - net
|
(12)
|
|
|
44
|
|
|
Changes in assets and
liabilities, excluding acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(168)
|
|
|
(427)
|
|
|
|
|
Inventories
|
(81)
|
|
|
(773)
|
|
|
|
|
Other assets
|
(216)
|
|
|
(362)
|
|
|
|
|
Restructuring
reserves
|
59
|
|
|
(7)
|
|
|
|
|
Accounts payable and
accrued liabilities
|
(222)
|
|
|
1,270
|
|
|
|
|
Accrued income
taxes
|
(77)
|
|
|
(440)
|
|
|
|
|
|
Cash provided by
operating activities from continuing operations
|
2,221
|
|
|
1,990
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital
expenditures
|
(539)
|
|
|
(592)
|
Acquisition of
businesses, net of cash acquired
|
(726)
|
|
|
(269)
|
Other - net
|
|
81
|
|
|
168
|
|
|
|
|
|
Cash used by investing
activities from continuing operations
|
(1,184)
|
|
|
(693)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Increase (decrease) in
short and long-term debt - net
|
(433)
|
|
|
1,966
|
Stock repurchases and
retirements
|
(625)
|
|
|
(1,441)
|
Payment of cash
dividends
|
(980)
|
|
|
(916)
|
Dividends paid to
noncontrolling interests
|
(149)
|
|
|
(121)
|
Other - net
|
|
13
|
|
|
(4)
|
|
|
|
|
|
Cash used by financing
activities from continuing operations
|
(2,174)
|
|
|
(516)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations - Cash used by
operating activities
|
-
|
|
|
(4)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(5)
|
|
|
(53)
|
Increase (decrease)
in cash, cash equivalents and restricted cash
|
$
(1,142)
|
|
|
$
724
|
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
September 30,
|
|
Twelve Months Ended
September 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
|
|
|
$
427
|
|
$
427
|
|
$
377
|
|
$
377
|
|
$
1,394
|
|
$
1,394
|
|
$ 1,122
|
|
$
1,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
|
|
82
|
|
82
|
|
92
|
|
92
|
|
316
|
|
316
|
|
358
|
|
369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
|
|
94
|
|
94
|
|
105
|
|
105
|
|
343
|
|
343
|
|
332
|
|
332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
Products
|
|
|
502
|
|
502
|
|
311
|
|
533
|
|
1,965
|
|
1,975
|
|
1,594
|
|
1,773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA
|
|
|
1,105
|
|
1,105
|
|
885
|
|
1,107
|
|
4,018
|
|
4,028
|
|
3,406
|
|
3,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses
(2)
|
|
|
(70)
|
|
(49)
|
|
(143)
|
|
(89)
|
|
(432)
|
|
(310)
|
|
(369)
|
|
(306)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets (3)
|
|
|
(120)
|
|
(120)
|
|
(101)
|
|
(101)
|
|
(439)
|
|
(439)
|
|
(427)
|
|
(414)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net mark-to-market
gains (losses) (4)
|
|
|
(108)
|
|
-
|
|
192
|
|
-
|
|
(92)
|
|
-
|
|
34
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
impairment costs (5)
|
|
|
(220)
|
|
-
|
|
(167)
|
|
-
|
|
(1,064)
|
|
-
|
|
(721)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (6)
|
|
|
587
|
|
936
|
|
666
|
|
917
|
|
1,991
|
|
3,279
|
|
1,923
|
|
2,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT margin (6)
|
|
|
8.5 %
|
|
13.6 %
|
|
9.9 %
|
|
13.6 %
|
|
7.4 %
|
|
12.2 %
|
|
7.6 %
|
|
11.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net financing
charges
|
|
|
(63)
|
|
(63)
|
|
(60)
|
|
(60)
|
|
(281)
|
|
(281)
|
|
(213)
|
|
(213)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
524
|
|
873
|
|
606
|
|
857
|
|
1,710
|
|
2,998
|
|
1,710
|
|
2,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(provision) (7)
|
|
|
57
|
|
(118)
|
|
203
|
|
(116)
|
|
323
|
|
(405)
|
|
13
|
|
(359)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
581
|
|
755
|
|
809
|
|
741
|
|
2,033
|
|
2,593
|
|
1,723
|
|
2,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income attributable to
noncontrolling interests (8)
|
|
|
(32)
|
|
(36)
|
|
(48)
|
|
(59)
|
|
(184)
|
|
(188)
|
|
(191)
|
|
(207)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to JCI
|
|
|
$
549
|
|
$
719
|
|
$
761
|
|
$
682
|
|
$
1,849
|
|
$
2,405
|
|
$ 1,532
|
|
$
2,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
The following is the three months ended September 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
|
$ 427
|
|
$
377
|
|
$
82
|
|
$
92
|
|
$
94
|
|
$
105
|
|
$
603
|
|
$
574
|
|
$
502
|
|
$
311
|
|
$
1,105
|
|
$
885
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA margin as
reported (9)
|
15.4 %
|
|
14.7 %
|
|
7.8 %
|
|
9.4 %
|
|
13.5 %
|
|
14.0 %
|
|
13.3 %
|
|
13.4 %
|
|
21.0 %
|
|
12.8 %
|
|
16.0 %
|
|
13.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental
remediation and related reserves adjustment
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
222
|
|
-
|
|
222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment
EBITA
|
$ 427
|
|
$
377
|
|
$
82
|
|
$
92
|
|
$
94
|
|
$
105
|
|
$
603
|
|
$
574
|
|
$
502
|
|
$
533
|
|
$
1,105
|
|
$
1,107
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment EBITA
margin (9)
|
15.4 %
|
|
14.7 %
|
|
7.8 %
|
|
9.4 %
|
|
13.5 %
|
|
14.0 %
|
|
13.3 %
|
|
13.4 %
|
|
21.0 %
|
|
21.9 %
|
|
16.0 %
|
|
16.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of
segment EBITA to net income is shown earlier within this footnote.
The following is the twelve months ended September 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
|
$
1,394
|
|
$ 1,122
|
|
$
316
|
|
$
358
|
|
$
343
|
|
$
332
|
|
$
2,053
|
|
$ 1,812
|
|
$
1,965
|
|
$ 1,594
|
|
$
4,018
|
|
$
3,406
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA margin as
reported (9)
|
13.5 %
|
|
12.0 %
|
|
7.7 %
|
|
9.3 %
|
|
12.5 %
|
|
12.2 %
|
|
12.0 %
|
|
11.4 %
|
|
20.4 %
|
|
17.0 %
|
|
15.0 %
|
|
13.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silent-Aire earn-out
adjustment
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(30)
|
|
(43)
|
|
(30)
|
|
(43)
|
|
|
|
|
|
|
|
|
|
|
Warehouse fire
loss
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
40
|
|
-
|
|
40
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Environmental
remediation and related reserves adjustment
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
222
|
|
-
|
|
222
|
|
|
|
|
|
|
|
|
|
|
Charges attributable to
the suspension of operations in Russia
|
-
|
|
-
|
|
-
|
|
11
|
|
-
|
|
-
|
|
-
|
|
11
|
|
-
|
|
-
|
|
-
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment
EBITA
|
$
1,394
|
|
$ 1,122
|
|
$
316
|
|
$
369
|
|
$
343
|
|
$
332
|
|
$
2,053
|
|
$ 1,823
|
|
$
1,975
|
|
$ 1,773
|
|
$
4,028
|
|
$
3,596
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment EBITA
margin (9)
|
13.5 %
|
|
12.0 %
|
|
7.7 %
|
|
9.6 %
|
|
12.5 %
|
|
12.2 %
|
|
12.0 %
|
|
11.4 %
|
|
20.5 %
|
|
18.9 %
|
|
15.0 %
|
|
14.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Adjusted Corporate
expenses for the three and twelve months ended September 30, 2023
excludes certain transaction/separation costs of $21 million and
$122 million, respectively. Adjusted Corporate expenses for the
three months ended September 30, 2022 excludes $33 million of an
environmental remediation and related reserves adjustment and
transaction/separation costs of $21 million. Adjusted Corporate
expenses for the twelve months ended September 30, 2022 excludes
$33 million of an environmental remediation and related reserves
adjustment and transaction/separation costs of $30
million.
|
|
|
(3) Adjusted
amortization of intangible assets for the twelve months ended
September 30, 2022 excludes nonrecurring intangible asset
amortization related to Silent-Aire purchase accounting of $13
million.
|
|
|
(4) Adjusted results
for the three and twelve months ended September 30, 2023 exclude
net mark-to-market losses on restricted asbestos investments and
pension and postretirement plans of $108 million and $92 million,
respectively. The three and twelve months ended September 30, 2022
exclude the net mark-to-market gains on restricted asbestos
investments and pension and postretirement plans of $192 million
and $34 million, respectively.
|
|
|
(5) Adjusted results
for the three and twelve months ended September 30, 2023 exclude
restructuring and impairment costs of $220 million and $1,064
million, respectively. The restructuring actions and impairment
costs for the three months ended September 30, 2023 are related
primarily to workforce reductions and other asset impairments. The
restructuring actions and impairment costs for the twelve months
ended September 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 twelve months ended
September 30, 2022 exclude restructuring and impairment costs of
$167 million and $721 million, respectively. The restructuring
actions and impairment costs for the three months ended September
30, 2022 are related primarily to workforce reductions, impairment
of goodwill attributable to the Company's Silent-Aire reporting
unit and other asset impairments. The restructuring actions and
impairment costs for the twelve months ended September 30, 2022 are
related primarily to the impairment of assets associated with
businesses classified as held for sale, workforce reductions,
impairment of goodwill attributable to the Company's Silent-Aire
reporting unit 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 September 30, 2023 excludes
net tax benefits related to valuation allowance adjustments of $121
million and the tax effect of other pre-tax adjusting items of $54
million. Adjusted income tax provision for the twelve months ended
September 30, 2023 excludes net tax benefits related to adjustments
to reserves for uncertain tax positions of $438 million, the net
tax effect of other pre-tax adjusting items of $169 million and
valuation allowance adjustments of $121 million. Adjusted income
tax provision for the three months ended September 30, 2022
excludes tax benefits related to the expiration of the statute of
limitations for certain tax years of $301 million and the net tax
effect of other pre-tax adjusting items of $45 million, partially
offset by tax provisions related to a Japan valuation allowance
establishment of $27 million. Adjusted income tax provision for the
twelve months ended September 30, 2022 excludes tax benefits
related to the expiration of the statute of limitations for certain
tax years of $301 million and the net tax effect of other pre-tax
adjusting items of $119 million, partially offset by tax provisions
related to a Japan valuation allowance establishment of $27 million
and APB23 adjustments attributable to businesses classified as held
for sale of $21 million.
|
|
|
(8) Adjusted income
from continuing operations attributable to noncontrolling interests
for the three and twelve months ended September 30, 2023 excludes
$4 million impact from restructuring and impairment costs. Adjusted
income from continuing operations attributable to noncontrolling
interests for the three months ended September 30, 2022 excludes
$11 million impact from a Japan valuation allowance establishment.
Adjusted income from continuing operations attributable to
noncontrolling interests for the twelve months ended September 30,
2022 excludes $11 million impact from a Japan valuation allowance
establishment and $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 2024 first
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
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share as
reported for JCI plc
|
$ 0.80
|
|
$
1.10
|
|
$
2.69
|
|
$
2.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
mark-to-market adjustments
|
0.16
|
|
(0.28)
|
|
0.13
|
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax
impact
|
(0.04)
|
|
0.05
|
|
(0.04)
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
and impairment costs
|
0.32
|
|
0.24
|
|
1.55
|
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax
impact
|
(0.04)
|
|
(0.03)
|
|
(0.18)
|
|
(0.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NCI impact of
restructuring and impairment costs
|
(0.01)
|
|
-
|
|
(0.01)
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silent-Aire
other nonrecurring costs
|
-
|
|
-
|
|
-
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental
remediation and related reserves adjustment
|
-
|
|
0.37
|
|
-
|
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax
impact
|
-
|
|
(0.08)
|
|
-
|
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction/separation costs
|
0.03
|
|
0.03
|
|
0.18
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax
impact
|
-
|
|
-
|
|
(0.02)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
(0.18)
|
|
(0.40)
|
|
(0.81)
|
|
(0.36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NCI impact of discrete
tax items
|
-
|
|
(0.02)
|
|
-
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share for JCI plc*
|
$ 1.05
|
|
$
0.99
|
|
$
3.50
|
|
$
3.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding for JCI plc
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
shares outstanding
|
680.3
|
|
688.6
|
|
684.3
|
|
696.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options,
unvested restricted stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
unvested performance share awards
|
3.0
|
|
2.6
|
|
3.1
|
|
3.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
683.3
|
|
691.2
|
|
687.4
|
|
699.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.
Organic Growth Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
change in net sales for the three months ended September 30, 2023
versus the three months ended September 30, 2022, including organic
growth, are shown below (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Net Sales for the
Three Months Ended
September 30, 2022
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
-
Foreign Currency
|
|
Adjusted Base Net
Sales for the
Three Months Ended
September 30, 2022
|
|
Acquisitions
|
|
Organic
Growth
|
|
Net Sales for the
Three Months Ended
September 30, 2023
|
|
|
|
|
|
|
Building Solutions
North America
|
$
2,562
|
|
$
-
|
|
-
|
|
$
(4)
|
|
-
|
|
$
2,558
|
|
$
12
|
|
-
|
|
$ 208
|
|
8 %
|
|
$
2,778
|
|
8 %
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
976
|
|
(5)
|
|
-1 %
|
|
39
|
|
4 %
|
|
1,010
|
|
7
|
|
1 %
|
|
28
|
|
3 %
|
|
1,045
|
|
7 %
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
751
|
|
(13)
|
|
-2 %
|
|
(22)
|
|
-3 %
|
|
716
|
|
24
|
|
3 %
|
|
(43)
|
|
-6 %
|
|
697
|
|
-7 %
|
|
|
|
|
|
|
Total Building Solutions
|
4,289
|
|
(18)
|
|
-
|
|
13
|
|
-
|
|
4,284
|
|
43
|
|
1 %
|
|
193
|
|
5 %
|
|
4,520
|
|
5 %
|
|
|
|
|
|
|
Global
Products
|
2,436
|
|
-
|
|
-
|
|
(31)
|
|
-1 %
|
|
2,405
|
|
31
|
|
1 %
|
|
(50)
|
|
-2 %
|
|
2,386
|
|
-2 %
|
|
|
|
|
|
|
Total net sales
|
$
6,725
|
|
$
(18)
|
|
-
|
|
$
(18)
|
|
-
|
|
$
6,689
|
|
$
74
|
|
1 %
|
|
$ 143
|
|
2 %
|
|
$
6,906
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
change in net sales for the twelve months ended September 30, 2023
versus the twelve months ended September 30, 2022, including
organic growth, are shown below (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Net Sales for the
Twelve Months Ended
September 30, 2022
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
-
Foreign Currency
|
|
Adjusted Base Net
Sales for the
Twelve Months Ended
September 30, 2022
|
|
Acquisitions
|
|
Organic
Growth
|
|
Net Sales for the
Twelve Months
Ended
September 30, 2023
|
|
|
|
|
|
|
Building Solutions
North America
|
$
9,367
|
|
$
-
|
|
-
|
|
$
(45)
|
|
-
|
|
$
9,322
|
|
$
29
|
|
-
|
|
$ 979
|
|
11 %
|
|
$
10,330
|
|
10 %
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
3,845
|
|
(32)
|
|
-1 %
|
|
(102)
|
|
-3 %
|
|
3,711
|
|
61
|
|
2 %
|
|
324
|
|
9 %
|
|
4,096
|
|
7 %
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
2,714
|
|
(13)
|
|
-
|
|
(169)
|
|
-6 %
|
|
2,532
|
|
32
|
|
1 %
|
|
182
|
|
7 %
|
|
2,746
|
|
1 %
|
|
|
|
|
|
|
Total Building Solutions
|
15,926
|
|
(45)
|
|
-
|
|
(316)
|
|
-2 %
|
|
15,565
|
|
122
|
|
1 %
|
|
1,485
|
|
10 %
|
|
17,172
|
|
8 %
|
|
|
|
|
|
|
Global
Products
|
9,373
|
|
-
|
|
-
|
|
(300)
|
|
-3 %
|
|
9,073
|
|
36
|
|
-
|
|
512
|
|
6 %
|
|
9,621
|
|
3 %
|
|
|
|
|
|
|
Total net sales
|
$
25,299
|
|
$
(45)
|
|
-
|
|
$
(616)
|
|
-2 %
|
|
$
24,638
|
|
$
158
|
|
1 %
|
|
$
1,997
|
|
8 %
|
|
$
26,793
|
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
change in total service revenue for the three months ended
September 30, 2023 versus the three months ended September 30,
2022, including organic growth, are shown below
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Service Revenue
for the
Three Months Ended
September 30, 2022
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
-
Foreign Currency
|
|
Adjusted Base
Service
Revenue for the
Three Months Ended
September 30, 2022
|
|
Acquisitions
|
|
Organic
Growth
|
|
Service Revenue
for the
Three Months Ended
September 30, 2023
|
|
|
|
|
|
|
Building Solutions
North America
|
$
977
|
|
$
-
|
|
-
|
|
$
(3)
|
|
-
|
|
$
974
|
|
$
11
|
|
1 %
|
|
$
66
|
|
7 %
|
|
$
1,051
|
|
8 %
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
405
|
|
(1)
|
|
-
|
|
9
|
|
2 %
|
|
413
|
|
3
|
|
1 %
|
|
59
|
|
14 %
|
|
475
|
|
17 %
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
188
|
|
(13)
|
|
-7 %
|
|
(4)
|
|
-2 %
|
|
171
|
|
9
|
|
5 %
|
|
19
|
|
11 %
|
|
199
|
|
6 %
|
|
|
|
|
|
|
Total Building Solutions
|
1,570
|
|
(14)
|
|
-1 %
|
|
2
|
|
-
|
|
1,558
|
|
23
|
|
1 %
|
|
144
|
|
9 %
|
|
1,725
|
|
10 %
|
|
|
|
|
|
|
Global
Products
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
Total service revenue
|
$
1,570
|
|
$
(14)
|
|
-1 %
|
|
$
2
|
|
-
|
|
$
1,558
|
|
$
23
|
|
1 %
|
|
$ 144
|
|
9 %
|
|
$
1,725
|
|
10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
change in total service revenue for the twelve months ended
September 30, 2023 versus the twelve months ended September 30,
2022, including organic growth, are shown below
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Service Revenue
for the
Twelve Months Ended
September 30, 2022
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
-
Foreign Currency
|
|
Adjusted Base
Service
Revenue for the
Twelve Months Ended
September 30, 2022
|
|
Acquisitions
|
|
Organic
Growth
|
|
Service Revenue
for the
Twelve Months
Ended
September 30, 2023
|
|
|
|
|
|
|
Building Solutions
North America
|
$
3,659
|
|
$
-
|
|
-
|
|
$
(18)
|
|
-
|
|
$
3,641
|
|
$
28
|
|
1 %
|
|
$ 293
|
|
8 %
|
|
$
3,962
|
|
8 %
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
1,657
|
|
(13)
|
|
-1 %
|
|
(63)
|
|
-4 %
|
|
1,581
|
|
13
|
|
1 %
|
|
227
|
|
14 %
|
|
1,821
|
|
10 %
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
709
|
|
(13)
|
|
-2 %
|
|
(40)
|
|
-6 %
|
|
656
|
|
12
|
|
2 %
|
|
91
|
|
14 %
|
|
759
|
|
7 %
|
|
|
|
|
|
|
Total Building Solutions
|
6,025
|
|
(26)
|
|
-
|
|
(121)
|
|
-2 %
|
|
5,878
|
|
53
|
|
1 %
|
|
611
|
|
10 %
|
|
6,542
|
|
9 %
|
|
|
|
|
|
|
Global
Products
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
Total service revenue
|
$
6,025
|
|
$
(26)
|
|
-
|
|
$
(121)
|
|
-2 %
|
|
$
5,878
|
|
$
53
|
|
1 %
|
|
$ 611
|
|
10 %
|
|
$
6,542
|
|
9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
change in total install revenue for the three months ended
September 30, 2023 versus the three months ended September 30,
2022, including organic growth, are shown below
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Install Revenue
for the
Three Months Ended
September 30, 2022
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
-
Foreign Currency
|
|
Adjusted Base Install
Revenue for the
Three Months Ended
September 30, 2022
|
|
Acquisitions
|
|
Organic
Growth
|
|
Install Revenue
for the
Three Months Ended
September 30, 2023
|
|
|
|
|
|
|
Building Solutions
North America
|
$
1,585
|
|
$
-
|
|
-
|
|
$
(1)
|
|
-
|
|
$
1,584
|
|
$
1
|
|
-
|
|
$ 142
|
|
9 %
|
|
$
1,727
|
|
9 %
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
571
|
|
(4)
|
|
-1 %
|
|
30
|
|
5 %
|
|
597
|
|
4
|
|
1 %
|
|
(31)
|
|
-5 %
|
|
570
|
|
-
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
563
|
|
-
|
|
-
|
|
(18)
|
|
-3 %
|
|
545
|
|
15
|
|
3 %
|
|
(62)
|
|
-11 %
|
|
498
|
|
-12 %
|
|
|
|
|
|
|
Total Building Solutions
|
2,719
|
|
(4)
|
|
-
|
|
11
|
|
-
|
|
2,726
|
|
20
|
|
1 %
|
|
49
|
|
2 %
|
|
2,795
|
|
3 %
|
|
|
|
|
|
|
Global
Products
|
2,436
|
|
-
|
|
-
|
|
(31)
|
|
-1 %
|
|
2,405
|
|
31
|
|
1 %
|
|
(50)
|
|
-2 %
|
|
2,386
|
|
-2 %
|
|
|
|
|
|
|
Total install revenue
|
$
5,155
|
|
$
(4)
|
|
-
|
|
$
(20)
|
|
-
|
|
$
5,131
|
|
$
51
|
|
1 %
|
|
$
(1)
|
|
-
|
|
$
5,181
|
|
1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
change in total install revenue for the twelve months ended
September 30, 2023 versus the twelve months ended September 30,
2022, including organic growth, are shown below
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Install Revenue
for the
Twelve Months Ended
September 30, 2022
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
-
Foreign Currency
|
|
Adjusted Base Install
Revenue for the
Twelve Months Ended
September 30, 2022
|
|
Acquisitions
|
|
Organic
Growth
|
|
Install Revenue
for the
Twelve Months
Ended
September 30, 2023
|
|
|
|
|
|
|
Building Solutions
North America
|
$
5,708
|
|
$
-
|
|
-
|
|
$
(27)
|
|
-
|
|
$
5,681
|
|
$
1
|
|
-
|
|
$ 686
|
|
12 %
|
|
$
6,368
|
|
12 %
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
2,188
|
|
(19)
|
|
-1 %
|
|
(39)
|
|
-2 %
|
|
2,130
|
|
48
|
|
2 %
|
|
97
|
|
5 %
|
|
2,275
|
|
4 %
|
|
|
|
|
|
|
Building Solutions Asia
Pacific
|
2,005
|
|
-
|
|
-
|
|
(129)
|
|
-6 %
|
|
1,876
|
|
20
|
|
1 %
|
|
91
|
|
5 %
|
|
1,987
|
|
-1 %
|
|
|
|
|
|
|
Total Building Solutions
|
9,901
|
|
(19)
|
|
-
|
|
(195)
|
|
-2 %
|
|
9,687
|
|
69
|
|
1 %
|
|
874
|
|
9 %
|
|
10,630
|
|
7 %
|
|
|
|
|
|
|
Global
Products
|
9,373
|
|
-
|
|
-
|
|
(300)
|
|
-3 %
|
|
9,073
|
|
36
|
|
-
|
|
512
|
|
6 %
|
|
9,621
|
|
3 %
|
|
|
|
|
|
|
Total install revenue
|
$
19,274
|
|
$
(19)
|
|
-
|
|
$
(495)
|
|
-3 %
|
|
$
18,760
|
|
$
105
|
|
1 %
|
|
$
1,386
|
|
7 %
|
|
$
20,251
|
|
5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 twelve months ended September 30, 2023 and 2022
calculation of free cash flow (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
September 30,
2023
|
|
September 30,
2022
|
|
September 30,
2023
|
|
September 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities from continuing
operations
|
$
1,390
|
|
$
1,179
|
|
$
2,221
|
|
$
1,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: JC Capital cash
used by operating activities
from continuing operations
|
(56)
|
|
-
|
|
(137)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities from continuing
operations, excluding JC Capital
|
$
1,446
|
|
$
1,179
|
|
$
2,358
|
|
$
1,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
(173)
|
|
$
(162)
|
|
$
(539)
|
|
$
(592)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: JC Capital
capital expenditures
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures,
excluding JC Capital
|
$
(173)
|
|
$
(162)
|
|
$
(539)
|
|
$
(592)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
$
1,273
|
|
$
1,017
|
|
$
1,819
|
|
$
1,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is the
twelve months ended September 30, 2023 and 2022 calculation of free
cash flow conversion from net income and free cash flow conversion
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
September 30,
2023
|
|
September 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to JCI
|
$
1,849
|
|
$
1,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
conversion from net income
|
98 %
|
|
91 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to JCI
|
$
2,405
|
|
$
2,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: JC Capital net
income
|
11
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to JCI, excluding JC Capital
|
$
2,394
|
|
$
2,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
conversion
|
76 %
|
|
67 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
September 30, 2023, June 30, 2023, and September 30, 2022
calculation of net debt to income before income taxes and net debt
to adjusted EBITDA (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
September 30,
2023
|
|
June 30,
2023
|
|
September 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
1,030
|
|
$
1,267
|
|
$
1,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
7,818
|
|
8,497
|
|
7,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
8,848
|
|
9,764
|
|
8,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: cash and cash
equivalents
|
835
|
|
1,057
|
|
2,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
debt
|
$
8,013
|
|
$
8,707
|
|
$
6,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Last twelve months
income before income taxes
|
$
1,710
|
|
$
1,792
|
|
$
1,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net debt to
income before income taxes
|
4.7x
|
|
4.9x
|
|
4.1x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Last twelve months
adjusted EBITDA
|
$
4,127
|
|
$
4,078
|
|
$
3,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net debt to
adjusted EBITDA
|
1.9x
|
|
2.1x
|
|
1.9x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is the
last twelve months ended September 30, 2023, June 30, 2023, and
September 30, 2022 reconciliation of income from continuing
operations to adjusted EBIT and adjusted EBITDA, which are non-GAAP
performance measures (unaudited):
|
|
|
|
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(in
millions)
|
Last Twelve
Months
Ended
September 30, 2023
|
|
Last Twelve
Months
Ended
June 30, 2023
|
|
Last Twelve
Months
Ended
September 30, 2022
|
|
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|
|
Income from continuing
operations
|
$
2,033
|
|
$
2,261
|
|
$
1,723
|
|
|
|
|
|
|
|
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|
|
Income tax
benefit
|
(323)
|
|
(469)
|
|
(13)
|
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|
|
Net financing
charges
|
281
|
|
278
|
|
213
|
|
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|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
EBIT
|
1,991
|
|
2,070
|
|
1,923
|
|
|
|
|
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Adjusting
items:
|
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|
|
Net
mark-to-market adjustments
|
92
|
|
(208)
|
|
(34)
|
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|
Restructuring and impairment costs
|
1,064
|
|
1,011
|
|
721
|
|
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|
|
Environmental remediation and related reserves
adjustment
|
-
|
|
255
|
|
|
|
255
|
|
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|
Silent-Aire other nonrecurring costs
|
|
|
-
|
|
|
|
-
|
|
|
|
13
|
|
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|
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Silent-Aire earn-out adjustment
|
|
|
(30)
|
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|
(30)
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|
(43)
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Charges
attributable to the suspension of operations in Russia
|
-
|
|
-
|
|
11
|
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Warehouse
fire loss
|
|
|
40
|
|
|
|
40
|
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|
-
|
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|
Transaction/separation costs
|
|
|
122
|
|
|
|
122
|
|
|
|
30
|
|
|
|
|
|
|
|
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|
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|
Adjusted EBIT
(1)
|
3,279
|
|
3,260
|
|
2,876
|
|
|
|
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|
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Depreciation and
amortization
|
848
|
|
818
|
|
817
|
|
|
|
|
|
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|
Adjusted EBITDA
(1)
|
$
4,127
|
|
$
4,078
|
|
$
3,693
|
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(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.
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6.
Income Taxes
|
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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 twelve months ending
September 30, 2023 and September 30, 2022 is approximately
13.5%.
|
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View original content to download
multimedia:https://www.prnewswire.com/news-releases/johnson-controls-reports-q4-and-fy23-results-highlighted-by-strong-sales-growth-and-margin-expansion-initiates-fy24-guidance-302011946.html
SOURCE Johnson Controls International plc