CORK, Ireland, July 30, 2021 /PRNewswire/ -- Johnson
Controls International plc (NYSE: JCI), the global leader for
smart, healthy and sustainable buildings, today reported fiscal
third quarter 2021 GAAP earnings per share ("EPS") from continuing
operations, including special items, of $0.80. Excluding these items, adjusted EPS from
continuing operations was $0.83, up
24% versus the prior year period (see attached footnotes for
non-GAAP reconciliation).
"We delivered another strong quarter of growth, profitability and
cash flow in the quarter," said George
Oliver, CEO
Sales of $6.3 billion increased
19% compared to the prior year on an as reported basis, and up 15%
organically. GAAP net income from continuing operations was
$574 million. Adjusted net income
from continuing operations of $598
million increased 19% versus the prior year. Earnings before
interest and taxes ("EBIT") was $825
million and EBIT margin was 13.0%. Adjusted EBIT was
$848 million and adjusted EBIT margin
was 13.4%, an increase of 20 basis points versus prior year
results.
"We delivered another strong quarter of growth, profitability
and cash flow in the third quarter," said George Oliver, chairman and CEO. "We remain
committed to executing both on our core operating fundamentals and
on the strategic actions underway to accelerate growth, deliver on
sustainability, expand our digital and service offerings, and
strengthen future profitability. Additionally, we welcomed
the Silent-Aire family into Johnson Controls, increasing our focus
on the very attractive data center vertical," Oliver
said.
"Overall demand patterns continue to improve, including our
longer cycle project installations, and most of our businesses are
back to operating at or near pre-pandemic levels. We continue to
proactively manage short-term challenges related to global supply
chain disruptions, inflation and regional COVID resurgences and our
team has remained laser focused on meeting our customer needs.
Looking ahead, we are confident that the strength in orders,
resilient backlog, and actions we've taken over the last year
position us well to deliver on our commitments," Oliver added.
Income and EPS amounts attributable to Johnson Controls
ordinary shareholders
($ 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 third fiscal quarter of 2020.
Organic sales, 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 and free cash flow are non-GAAP financial
measures. For a reconciliation of these non-GAAP measures and
detail of the special items, refer to the attached footnotes. 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
|
|
2020
|
2021
|
2020
|
2021
|
Sales
|
$5,343
|
$6,341
|
$5,343
|
$6,344
|
Segment
EBITA
|
839
|
1,020
|
850
|
1,027
|
EBIT
|
(65)
|
825
|
707
|
848
|
Net income (loss)
from continuing operations
|
(182)
|
574
|
502
|
598
|
|
|
|
|
|
Diluted EPS from
continuing operations
|
($0.24)
|
$0.80
|
$0.67
|
$0.83
|
|
|
|
|
|
SEGMENT RESULTS
Building Solutions North America
|
Fiscal
Q3
|
|
GAAP
|
Adjusted
|
|
2020
|
2021
|
2020
|
2021
|
Sales
|
$2,020
|
$2,212
|
$2,020
|
$2,212
|
Segment
EBITA
|
307
|
326
|
311
|
326
|
Segment EBITA Margin
%
|
15.2%
|
14.7%
|
15.4%
|
14.7%
|
Sales in the quarter of $2.2
billion increased 10% versus the prior year. Organic sales
increased 8% over the prior year, with growth in both service and
project installations, driven by double digit growth in Fire &
Security and Performance Contracting and to a lesser extent growth
in HVAC & Controls.
Orders in the quarter, excluding M&A and adjusted for
foreign currency, increased 18% year-over-year. Backlog at the end
of the quarter of $6.2 billion
increased 6% compared to the prior year, excluding M&A and
adjusted for foreign currency.
Adjusted segment EBITA was $326
million, up 5% versus the prior year. Adjusted segment EBITA
margin of 14.7% declined 70 basis points versus the prior year as
the benefit of volume leverage and the SG&A actions taken this
year were more than offset by the significant temporary cost
mitigation actions taken in the prior year.
Building Solutions EMEA/LA (Europe, Middle
East, Africa/Latin America)
|
Fiscal
Q3
|
|
GAAP
|
Adjusted
|
|
2020
|
2021
|
2020
|
2021
|
Sales
|
$756
|
$962
|
$756
|
$962
|
Segment
EBITA
|
62
|
103
|
62
|
103
|
Segment EBITA Margin
%
|
8.2%
|
10.7%
|
8.2%
|
10.7%
|
Sales in the quarter of $962
million increased 27% versus the prior year. Organic sales
grew 17% versus the prior year led by a sharp rebound in project
installation activity. Additionally, service revenues grew
double digits organically. Strength was broad based across our
businesses, led by Fire & Security and Industrial
Refrigeration. By region, Europe
experienced strong growth, while growth in Latin America was more modest and the
Middle East remained under
pressure.
Orders in the quarter, excluding M&A and adjusted for
foreign currency, increased 22% year-over-year. Backlog at the end
of the quarter of $2.0 billion
increased 9% year-over-year, excluding M&A and adjusted for
foreign currency.
Adjusted segment EBITA was $103
million, up 66% versus the prior year. Adjusted segment
EBITA margin of 10.7% expanded 250 basis points over the prior year
driven by volume leverage and the benefit of SG&A actions taken
this year.
Building Solutions Asia Pacific
|
Fiscal
Q3
|
|
GAAP
|
Adjusted
|
|
2020
|
2021
|
2020
|
2021
|
Sales
|
$588
|
$712
|
$588
|
$712
|
Segment
EBITA
|
92
|
84
|
92
|
84
|
Segment EBITA Margin
%
|
15.6%
|
11.8%
|
15.6%
|
11.8%
|
Sales in the quarter of $712
million increased 21% versus the prior year. Organic sales
grew 14% versus the prior year with solid growth in both service
and project installations, driven by strong growth in Commercial
Applied HVAC & Controls. China
remains the primary source of growth, with the rest of Asia mixed due to ongoing lockdown
restrictions in many regions.
Orders in the quarter, excluding M&A and adjusted for
foreign currency, increased 14% year-over-year, led by continued
strong demand for Commercial HVAC in China and recovery in the Controls business in
Japan. Backlog at the end of the
quarter of $1.8 billion increased 5%
year-over-year, excluding M&A and adjusted for foreign
currency.
Adjusted segment EBITA was $84
million, down 9% versus the prior year. Adjusted segment
EBITA margin of 11.8% declined 380 basis points versus the prior
year including a 20 basis point headwind related to foreign
currency. The benefit of volume leverage and the SG&A
actions taken this year were more than offset by the significant
temporary cost mitigation actions taken in the prior year and
geographic mix.
Global Products
|
Fiscal
Q3
|
|
GAAP
|
Adjusted
|
|
2020
|
2021
|
2020
|
2021
|
Sales
|
$1,979
|
$2,455
|
$1,979
|
$2,458
|
Segment
EBITA
|
378
|
507
|
385
|
514
|
Segment EBITA Margin
%
|
19.1%
|
20.7%
|
19.5%
|
20.9%
|
Sales in the quarter of $2.5
billion increased 24% versus the prior year. Organic sales
grew 21% versus the prior year driven by strong growth across
Commercial and Residential HVAC and Fire & Security
products.
Adjusted segment EBITA was $514
million, up 34% versus the prior year. Adjusted segment
EBITA margin of 20.9% expanded 140 basis points versus the prior
year as volume leverage, positive mix, increased equity income and
the benefit of SG&A actions taken this year more than offset
the significant temporary cost mitigation actions taken in the
prior year as well as price cost pressure.
Corporate
|
Fiscal
Q3
|
|
GAAP
|
Adjusted
|
|
2020
|
2021
|
2020
|
2021
|
Corporate
Expense
|
($67)
|
($70)
|
($48)
|
($70)
|
Adjusted Corporate expense was $70
million in the quarter, an increase of 46% compared to the
prior year, driven primarily by the non-recurrence of the
significant temporary cost mitigation actions taken in the prior
year.
OTHER ITEMS
- For the quarter, cash provided by operating activities from
continuing operations was $0.9
billion and capital expenditures were $0.1 billion, resulting in free cash flow from
continuing operations of $0.7
billion.
- During the quarter, the company repurchased approximately 5
million shares for $340 million.
- During the quarter, the company completed the acquisition of
Silent-Aire in an all-cash transaction valued at up to $900 million, including an upfront payment of
approximately $660 million and
additional payments to be made subject to the achievement of
post-closing earnout milestones. Revenue for fiscal year 2021 (May)
was approximately $650 million.
FULL YEAR GUIDANCE
The company raised fiscal 2021 full year guidance:
- Organic revenue growth up mid-single digits year-over-year
- Adjusted segment EBITA margin expansion of 80 to 90 basis
points, year-over-year
- Adjusted EPS before special items of $2.64 to $2.66;
represents 18 to 19% growth year-over-year
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 888-324-9610 (in
the United States) or 630-395-0255
(outside the United States), or
via webcast. The passcode is "Johnson Controls". 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.
With a history of more than 135 years of innovation, Johnson
Controls delivers the blueprint of the future for industries such
as healthcare, schools, data centers, airports, stadiums,
manufacturing and beyond through its comprehensive digital offering
OpenBlue. With a global team of 100,000 experts in more than 150
countries, Johnson Controls offers the world`s
largest portfolio of building technology, software as well
as service solutions with some of the most
trusted names in the industry. For more information,
visit www.johnsoncontrols.com or follow us
@johnsoncontrols on Twitter.
JOHNSON CONTROLS CONTACTS:
INVESTOR
CONTACTS:
|
MEDIA
CONTACTS:
|
|
|
Antonella
Franzen
|
Chaz
Bickers
|
Direct:
609.720.4665
|
Direct:
224.307.0655
|
Email:
antonella.franzen@jci.com
|
Email:
charles.norman.bickers@jci.com
|
|
|
Ryan
Edelman
|
|
Direct:
609.720.4545
|
|
Email:
ryan.edelman@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 and debt levels 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 Johnson Controls' control, that could cause
Johnson Controls' 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, capital
market and geopolitical conditions, including global inflation;
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 strength of the U.S. or other
economies; changes or uncertainty in laws, regulations, rates,
policies or interpretations that impact Johnson Controls' business
operations or tax status; the ability to develop or acquire new
products and technologies that achieve market acceptance; changes
to laws or policies governing foreign trade, including increased
tariffs or trade restrictions; maintaining the capacity,
reliability and security of our enterprise and product information
technology infrastructure; the risk of infringement or expiration
of intellectual property rights; any delay or inability
of Johnson Controls to realize the expected benefits and
synergies of recent portfolio transactions such as its merger
with Tyco and the disposition of the Power Solutions
business; the outcome of litigation and governmental
proceedings; the ability to hire and retain key senior
management; the tax treatment of recent portfolio
transactions; significant transaction costs and/or
unknown liabilities associated with such transactions; the
availability of raw materials and component products; fluctuations
in currency exchange rates; labor shortages, work stoppages, union
negotiations, labor disputes and other matters associated with the
labor force; 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 2020 fiscal year filed with the SEC on November 16, 2020, which is available at
www.sec.gov and www.johnsoncontrols.com under the "Investors" tab.
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
The Company's 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, integration
costs, net mark-to-market adjustments, Silent-Aire transaction
costs and other nonrecurring costs, Power Solutions divestiture
reserve adjustment and discrete tax items. Financial information
regarding organic sales, adjusted sales, EBIT, EBIT margin,
adjusted EBIT, adjusted EBIT margin, total segment EBITA, adjusted
segment EBITA, adjusted segment EBITA margin, adjusted corporate
expense, free cash flow, and adjusted net income (loss) from
continuing operations are also presented, which are non-GAAP
performance measures. Adjusted segment EBITA excludes special items
such as integration costs, Silent-Aire transaction costs and other
nonrecurring costs because these costs are not considered to be
directly related to the underlying operating performance of its
business units. 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 the Company. 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,
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
Net sales
|
$
6,341
|
|
|
$
5,343
|
Cost of
sales
|
4,144
|
|
|
3,511
|
|
Gross
profit
|
2,197
|
|
|
1,832
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(1,367)
|
|
|
(1,334)
|
Restructuring and
impairment costs
|
(79)
|
|
|
(610)
|
Net financing
charges
|
(56)
|
|
|
(58)
|
Equity
income
|
74
|
|
|
47
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
769
|
|
|
(123)
|
|
|
|
|
|
|
Income tax provision
(benefit)
|
108
|
|
|
(1)
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
661
|
|
|
(122)
|
|
|
|
|
|
|
Income from
discontinued operations, net of tax
|
-
|
|
|
-
|
|
|
|
|
|
|
Net income
(loss)
|
661
|
|
|
(122)
|
|
|
|
|
|
|
Less: Income from
continuing operations
|
|
|
|
|
|
attributable to
noncontrolling interests
|
87
|
|
|
60
|
|
|
|
|
|
|
Less: Income from
discontinued operations
|
|
|
|
|
|
attributable to
noncontrolling interests
|
-
|
|
|
-
|
|
|
|
|
|
|
Net income (loss)
attributable to JCI
|
$
574
|
|
|
$
(182)
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
574
|
|
|
$
(182)
|
Income from
discontinued operations
|
-
|
|
|
-
|
|
|
|
|
|
|
Net income (loss)
attributable to JCI
|
$
574
|
|
|
$
(182)
|
|
|
|
|
|
|
Diluted earnings
(loss) per share from continuing operations
|
$
0.80
|
|
|
$
(0.24)
|
Diluted earnings per
share from discontinued operations
|
-
|
|
|
-
|
Diluted earnings
(loss) per share
|
$
0.80
|
|
|
$
(0.24)
|
|
|
|
|
|
|
Diluted weighted
average shares
|
719.7
|
|
|
744.0
|
Shares outstanding at
period end
|
712.2
|
|
|
744.0
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(in millions, except
per share data; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30,
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
Net sales
|
$
17,276
|
|
|
$
16,363
|
Cost of
sales
|
11,408
|
|
|
10,927
|
|
Gross
profit
|
5,868
|
|
|
5,436
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(3,914)
|
|
|
(4,212)
|
Restructuring and
impairment costs
|
(175)
|
|
|
(783)
|
Net financing
charges
|
(159)
|
|
|
(169)
|
Equity
income
|
188
|
|
|
110
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
1,808
|
|
|
382
|
|
|
|
|
|
|
Income tax
provision
|
378
|
|
|
77
|
|
|
|
|
|
|
Income from
continuing operations
|
1,430
|
|
|
305
|
|
|
|
|
|
|
Income from
discontinued operations, net of tax
|
124
|
|
|
-
|
|
|
|
|
|
|
Net income
|
1,554
|
|
|
305
|
|
|
|
|
|
|
Less: Income from
continuing operations
|
|
|
|
|
|
attributable to
noncontrolling interests
|
186
|
|
|
115
|
|
|
|
|
|
|
Less: Income from
discontinued operations
|
|
|
|
|
|
attributable to
noncontrolling interests
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to JCI
|
$
1,368
|
|
|
$
190
|
|
|
|
|
|
|
Income from
continuing operations
|
$
1,244
|
|
|
$
190
|
Income from
discontinued operations
|
124
|
|
|
-
|
|
|
|
|
|
|
Net income
attributable to JCI
|
$
1,368
|
|
|
$
190
|
|
|
|
|
|
|
Diluted earnings per
share from continuing operations
|
$
1.72
|
|
|
$
0.25
|
Diluted earnings per
share from discontinued operations
|
0.17
|
|
|
-
|
Diluted earnings per
share
|
$
1.89
|
|
|
$
0.25
|
|
|
|
|
|
|
Diluted weighted
average shares
|
722.5
|
|
|
758.9
|
Shares outstanding at
period end
|
712.2
|
|
|
744.0
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
September
30,
|
|
|
|
2021
|
|
2020
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
1,450
|
|
$
1,951
|
|
Accounts receivable -
net
|
5,668
|
|
5,294
|
|
Inventories
|
2,064
|
|
1,773
|
|
Other current
assets
|
1,128
|
|
1,035
|
|
|
Current
assets
|
10,310
|
|
10,053
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
3,111
|
|
3,059
|
|
Goodwill
|
|
18,445
|
|
17,932
|
|
Other intangible
assets - net
|
5,679
|
|
5,356
|
|
Investments in
partially-owned affiliates
|
1,016
|
|
914
|
|
Noncurrent assets
held for sale
|
185
|
|
147
|
|
Other noncurrent
assets
|
3,389
|
|
3,354
|
|
|
Total
assets
|
$
42,135
|
|
$
40,815
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
461
|
|
$
293
|
|
Accounts payable and
accrued expenses
|
4,715
|
|
3,958
|
|
Other current
liabilities
|
4,109
|
|
3,997
|
|
|
Current
liabilities
|
9,285
|
|
8,248
|
|
|
|
|
|
|
|
Long-term
debt
|
7,318
|
|
7,526
|
|
Other noncurrent
liabilities
|
6,535
|
|
6,508
|
|
Shareholders' equity
attributable to JCI
|
17,840
|
|
17,447
|
|
Noncontrolling
interests
|
1,157
|
|
1,086
|
|
|
Total liabilities and
equity
|
$
42,135
|
|
$
40,815
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
2021
|
|
|
2020
|
Operating
Activities
|
|
|
|
|
Net income (loss)
from continuing operations attributable to JCI
|
$
574
|
|
|
$
(182)
|
Income from
continuing operations attributable to noncontrolling
interests
|
87
|
|
|
60
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
661
|
|
|
(122)
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income (loss) from continuing operations to cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
208
|
|
|
202
|
|
|
Pension and
postretirement benefit expense (income)
|
(94)
|
|
|
122
|
|
|
Pension and
postretirement contributions
|
(15)
|
|
|
(16)
|
|
|
Equity in earnings of
partially-owned affiliates, net of dividends received
|
41
|
|
|
20
|
|
|
Deferred income
taxes
|
(19)
|
|
|
(87)
|
|
|
Non-cash
restructuring and impairment costs
|
40
|
|
|
466
|
|
|
Other -
net
|
(6)
|
|
|
(33)
|
|
|
Changes in assets and
liabilities, excluding acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(324)
|
|
|
184
|
|
|
|
|
Inventories
|
7
|
|
|
56
|
|
|
|
|
Other
assets
|
60
|
|
|
30
|
|
|
|
|
Restructuring
reserves
|
(3)
|
|
|
96
|
|
|
|
|
Accounts payable and
accrued liabilities
|
344
|
|
|
(126)
|
|
|
|
|
Accrued income
taxes
|
(38)
|
|
|
41
|
|
|
|
|
|
Cash provided by
operating activities from continuing operations
|
862
|
|
|
833
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital
expenditures
|
(127)
|
|
|
(97)
|
Acquisition of
businesses, net of cash acquired
|
(697)
|
|
|
(1)
|
Other -
net
|
57
|
|
|
77
|
|
|
|
|
|
Cash used by
investing activities from continuing operations
|
(767)
|
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Increase (decrease)
in short and long-term debt - net
|
(31)
|
|
|
974
|
Stock repurchases and
retirements
|
(340)
|
|
|
-
|
Payment of cash
dividends
|
(193)
|
|
|
(194)
|
Dividends paid to
noncontrolling interests
|
(32)
|
|
|
(62)
|
Proceeds from the
exercise of stock options
|
27
|
|
|
3
|
Employee equity-based
compensation withholding taxes
|
(1)
|
|
|
(1)
|
Other -
net
|
(1)
|
|
|
-
|
|
|
|
|
|
Cash provided (used)
by financing activities from continuing operations
|
(571)
|
|
|
720
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations
|
|
|
|
|
Net cash used by
operating activities
|
(19)
|
|
|
(47)
|
Net cash used by
investing activities
|
-
|
|
|
-
|
Net cash used by
financing activities
|
-
|
|
|
(113)
|
|
|
|
|
|
Net cash flows used
by discontinued operations
|
(19)
|
|
|
(160)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
58
|
|
|
(36)
|
Changes in cash held
for sale
|
-
|
|
|
-
|
Increase
(decrease) in cash, cash equivalents and restricted
cash
|
$
(437)
|
|
|
$
1,336
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30,
|
|
|
|
|
|
|
2021
|
|
|
2020
|
Operating
Activities
|
|
|
|
|
Net income from
continuing operations attributable to JCI
|
$
1,244
|
|
|
$
190
|
Income from
continuing operations attributable to noncontrolling
interests
|
186
|
|
|
115
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
1,430
|
|
|
305
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income from continuing operations to cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
627
|
|
|
616
|
|
|
Pension and
postretirement benefit expense (income)
|
(393)
|
|
|
42
|
|
|
Pension and
postretirement contributions
|
(40)
|
|
|
(43)
|
|
|
Equity in earnings of
partially-owned affiliates, net of dividends received
|
(66)
|
|
|
9
|
|
|
Deferred income
taxes
|
6
|
|
|
(148)
|
|
|
Non-cash
restructuring and impairment costs
|
94
|
|
|
582
|
|
|
Other -
net
|
(38)
|
|
|
23
|
|
|
Changes in assets and
liabilities, excluding acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(157)
|
|
|
428
|
|
|
|
|
Inventories
|
(204)
|
|
|
(205)
|
|
|
|
|
Other
assets
|
(30)
|
|
|
(120)
|
|
|
|
|
Restructuring
reserves
|
(27)
|
|
|
58
|
|
|
|
|
Accounts payable and
accrued liabilities
|
854
|
|
|
(731)
|
|
|
|
|
Accrued income
taxes
|
(34)
|
|
|
683
|
|
|
|
|
|
Cash provided by
operating activities from continuing operations
|
2,022
|
|
|
1,499
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital
expenditures
|
(324)
|
|
|
(347)
|
Acquisition of
businesses, net of cash acquired
|
(707)
|
|
|
(59)
|
Business
divestitures, net of cash divested
|
19
|
|
|
-
|
Other -
net
|
126
|
|
|
97
|
|
|
|
|
|
Cash used by
investing activities from continuing operations
|
(886)
|
|
|
(309)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Increase (decrease)
in short and long-term debt - net
|
(64)
|
|
|
807
|
Stock repurchases and
retirements
|
(1,001)
|
|
|
(1,467)
|
Payment of cash
dividends
|
(570)
|
|
|
(596)
|
Proceeds from the
exercise of stock options
|
160
|
|
|
42
|
Dividends paid to
noncontrolling interests
|
(133)
|
|
|
(67)
|
Cash paid to acquire
a noncontrolling interest
|
(14)
|
|
|
-
|
Employee equity-based
compensation withholding taxes
|
(30)
|
|
|
(33)
|
Other -
net
|
2
|
|
|
(2)
|
|
|
|
|
|
Cash used by
financing activities from continuing operations
|
(1,650)
|
|
|
(1,316)
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations
|
|
|
|
|
Net cash used by
operating activities
|
(56)
|
|
|
(255)
|
Net cash used by
investing activities
|
-
|
|
|
-
|
Net cash used by
financing activities
|
-
|
|
|
(113)
|
|
|
|
|
|
Net cash flows used
by discontinued operations
|
(56)
|
|
|
(368)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
67
|
|
|
28
|
Changes in cash held
for sale
|
-
|
|
|
-
|
Decrease in cash,
cash equivalents and restricted cash
|
$
(503)
|
|
|
$
(466)
|
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 (loss) from continuing operations before income taxes and
noncontrolling interests, excluding general corporate expenses,
intangible asset amortization, net financing charges, restructuring
and impairment costs, and the net mark-to-market adjustments
related to restricted asbestos investments and pension and
postretirement plans. The financial results shown below are for
continuing operations and exclude the Power Solutions
business.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions;
unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
Adjusted
Non-GAAP
|
|
Actual
|
|
Adjusted
Non-GAAP
|
|
Actual
|
|
Adjusted
Non-GAAP
|
|
Actual
|
|
Adjusted
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Solutions
North America
|
|
|
$
2,212
|
|
$
2,212
|
|
$
2,020
|
|
$
2,020
|
|
$
6,338
|
|
$
6,338
|
|
$
6,362
|
|
$
6,362
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
|
|
962
|
|
962
|
|
756
|
|
756
|
|
2,765
|
|
2,765
|
|
2,534
|
|
2,534
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Solutions
Asia Pacific
|
|
|
712
|
|
712
|
|
588
|
|
588
|
|
1,930
|
|
1,930
|
|
1,742
|
|
1,742
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
Products
|
|
|
2,455
|
|
2,458
|
|
1,979
|
|
1,979
|
|
6,243
|
|
6,246
|
|
5,725
|
|
5,725
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
6,341
|
|
$
6,344
|
|
$
5,343
|
|
$
5,343
|
|
$
17,276
|
|
$
17,279
|
|
$
16,363
|
|
$
16,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Solutions
North America
|
|
|
$
326
|
|
$
326
|
|
$
307
|
|
$
311
|
|
$
847
|
|
$
847
|
|
$
816
|
|
$
823
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Solutions
EMEA/LA
|
|
|
103
|
|
103
|
|
62
|
|
62
|
|
284
|
|
284
|
|
237
|
|
237
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Solutions
Asia Pacific
|
|
|
84
|
|
84
|
|
92
|
|
92
|
|
237
|
|
237
|
|
229
|
|
229
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
Products
|
|
|
507
|
|
514
|
|
378
|
|
385
|
|
1,005
|
|
1,012
|
|
797
|
|
805
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA
|
|
|
1,020
|
|
1,027
|
|
839
|
|
850
|
|
2,373
|
|
2,380
|
|
2,079
|
|
2,094
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses
(2)
|
|
|
(70)
|
|
(70)
|
|
(67)
|
|
(48)
|
|
(207)
|
|
(207)
|
|
(303)
|
|
(211)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets (3)
|
|
|
(112)
|
|
(109)
|
|
(95)
|
|
(95)
|
|
(320)
|
|
(317)
|
|
(288)
|
|
(288)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net mark-to-market
adjustments (4)
|
|
|
66
|
|
-
|
|
(132)
|
|
-
|
|
296
|
|
-
|
|
(154)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
impairment costs (5)
|
|
|
(79)
|
|
-
|
|
(610)
|
|
-
|
|
(175)
|
|
-
|
|
(783)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT (6)
|
|
|
825
|
|
848
|
|
(65)
|
|
707
|
|
1,967
|
|
1,856
|
|
551
|
|
1,595
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT margin
|
|
|
13.0%
|
|
13.4%
|
|
-1.2%
|
|
13.2%
|
|
11.4%
|
|
10.7%
|
|
3.4%
|
|
9.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net financing
charges
|
|
|
(56)
|
|
(56)
|
|
(58)
|
|
(58)
|
|
(159)
|
|
(159)
|
|
(169)
|
|
(169)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
|
769
|
|
792
|
|
(123)
|
|
649
|
|
1,808
|
|
1,697
|
|
382
|
|
1,426
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(provision) (7)
|
|
|
(108)
|
|
(107)
|
|
1
|
|
(87)
|
|
(378)
|
|
(229)
|
|
(77)
|
|
(192)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
661
|
|
685
|
|
(122)
|
|
562
|
|
1,430
|
|
1,468
|
|
305
|
|
1,234
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling
interests
|
|
|
(87)
|
|
(87)
|
|
(60)
|
|
(60)
|
|
(186)
|
|
(186)
|
|
(115)
|
|
(109)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations attributable to JCI
|
|
|
$
574
|
|
$
598
|
|
$
(182)
|
|
$
502
|
|
$
1,244
|
|
$
1,282
|
|
$
190
|
|
$
1,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Company's
press release contains financial information regarding adjusted net
sales, segment EBITA, adjusted segment EBITA and adjusted segment
EBITA margins, which are non-GAAP performance measures. The
Company's definition of adjusted net sales and adjusted segment
EBITA excludes special items because these items 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 income (loss) from continuing operations is shown
earlier within this footnote. The following is the three months
ended June 30, 2021 and 2020 reconciliation of net sales, segment
EBITA and segment EBITA margin as reported to adjusted net sales,
adjusted segment EBITA and adjusted segment EBITA margin
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Building
Solutions
North America
|
|
Building
Solutions
EMEA/LA
|
|
Building
Solutions
Asia Pacific
|
|
Global
Products
|
|
Consolidated
JCI plc
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Net sales as
reported
|
$
2,212
|
|
$
2,020
|
|
$
962
|
|
$
756
|
|
$
712
|
|
$
588
|
|
$
2,455
|
|
$
1,979
|
|
$
6,341
|
|
$
5,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonrecurring
Silent-Aire purchase accounting impacts
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3
|
|
-
|
|
3
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
sales
|
$
2,212
|
|
$
2,020
|
|
$
962
|
|
$
756
|
|
$
712
|
|
$
588
|
|
$
2,458
|
|
$
1,979
|
|
$
6,344
|
|
$
5,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA as
reported
|
$
326
|
|
$
307
|
|
$
103
|
|
$
62
|
|
$
84
|
|
$
92
|
|
$
507
|
|
$
378
|
|
$
1,020
|
|
$
839
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA margin
as reported
|
14.7%
|
|
15.2%
|
|
10.7%
|
|
8.2%
|
|
11.8%
|
|
15.6%
|
|
20.7%
|
|
19.1%
|
|
16.1%
|
|
15.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonrecurring
Silent-Aire purchase accounting impacts and transaction
costs
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7
|
|
-
|
|
7
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Integration
costs
|
-
|
|
4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7
|
|
-
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment
EBITA
|
$
326
|
|
$
311
|
|
$
103
|
|
$
62
|
|
$
84
|
|
$
92
|
|
$
514
|
|
$
385
|
|
$
1,027
|
|
$
850
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment
EBITA margin
|
14.7%
|
|
15.4%
|
|
10.7%
|
|
8.2%
|
|
11.8%
|
|
15.6%
|
|
20.9%
|
|
19.5%
|
|
16.2%
|
|
15.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is the
nine months ended June 30, 2021 and 2020 reconciliation of net
sales, segment EBITA and segment EBITA margin as reported to
adjusted net sales, adjusted segment EBITA and adjusted segment
EBITA margin (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Building
Solutions
North America
|
|
Building
Solutions
EMEA/LA
|
|
Building
Solutions
Asia Pacific
|
|
Global
Products
|
|
Consolidated
JCI plc
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Net sales as
reported
|
$
6,338
|
|
$
6,362
|
|
$
2,765
|
|
$
2,534
|
|
$
1,930
|
|
$
1,742
|
|
$
6,243
|
|
$
5,725
|
|
$
17,276
|
|
$
16,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonrecurring
Silent-Aire purchase accounting impacts
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3
|
|
-
|
|
3
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
sales
|
$
6,338
|
|
$
6,362
|
|
$
2,765
|
|
$
2,534
|
|
$
1,930
|
|
$
1,742
|
|
$
6,246
|
|
$
5,725
|
|
$
17,279
|
|
$
16,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA as
reported
|
$
847
|
|
$
816
|
|
$
284
|
|
$
237
|
|
$
237
|
|
$
229
|
|
$
1,005
|
|
$
797
|
|
$
2,373
|
|
$
2,079
|
|
|
|
|
|
|
|
|
|
|
Segment EBITA margin
as reported
|
13.4%
|
|
12.8%
|
|
10.3%
|
|
9.4%
|
|
12.3%
|
|
13.1%
|
|
16.1%
|
|
13.9%
|
|
13.7%
|
|
12.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonrecurring
Silent-Aire purchase accounting impacts and transaction
costs
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7
|
|
-
|
|
7
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Integration
costs
|
-
|
|
7
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
8
|
|
-
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment
EBITA
|
$
847
|
|
$
823
|
|
$
284
|
|
$
237
|
|
$
237
|
|
$
229
|
|
$
1,012
|
|
$
805
|
|
$
2,380
|
|
$
2,094
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment
EBITA margin
|
13.4%
|
|
12.9%
|
|
10.3%
|
|
9.4%
|
|
12.3%
|
|
13.1%
|
|
16.2%
|
|
14.1%
|
|
13.8%
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Adjusted
Corporate expenses excludes special items because these costs are
not considered to be directly related to the underlying operating
performance of the Company's business. Adjusted Corporate expenses
for the three months ended June 30, 2020 excludes $19 million of
integration costs. Adjusted Corporate expenses for the nine months
ended June 30, 2020 excludes $92 million of integration
costs.
|
|
|
|
|
|
(3) Adjusted
amortization of intangible assets for the three and nine months
ended June 30, 2021 excludes $3 million of nonrecurring asset
amortization related to Silent-Aire purchase accounting.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) The three months
ended June 30, 2021 exclude the net mark-to-market adjustments on
restricted investments and pension and postretirement plans of $66
million. The nine months ended June 30, 2021 exclude the net
mark-to-market adjustments on restricted investments and pension
and postretirement plans of $296 million. The three months ended
June 30, 2020 exclude the net mark-to-market adjustments on
restricted investments and pension and postretirement plans of $132
million. The nine months ended June 30, 2020 exclude the net
mark-to-market adjustments on restricted investments and pension
and postretirement plans of $154 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Restructuring and
impairment costs for the three months ended June 30, 2021 of $79
million are excluded from the adjusted non-GAAP results.
Restructuring and impairment costs for the nine months ended June
30, 2021 of $175 million are excluded from the adjusted non-GAAP
results. Restructuring and impairment costs for the three months
ended June 30, 2020 of $610 million are excluded from the adjusted
non-GAAP results. Restructuring and impairment costs for the nine
months ended June 30, 2020 of $783 million are excluded from the
adjusted non-GAAP results. The restructuring actions and impairment
costs related primarily to workforce reductions, plant closures and
asset impairments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) Management
defines earnings before interest and taxes (EBIT) as income (loss)
from continuing operations before net financing charges, income
taxes and noncontrolling interests. EBIT is a non-GAAP performance
measure. Management believes this non-GAAP measure is useful to
investors in understanding the ongoing operations and business
trends of the Company. A reconciliation of EBIT to income from
continuing operations is shown earlier within this
footnote.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) Adjusted income
tax provision for the three months ended June 30, 2021 excludes tax
provisions from net mark-to-market adjustments of $17 million,
partially offset by tax benefits related to restructuring and
impairment costs of $15 million, and tax benefits related to
Silent-Aire nonrecurring purchase accounting of $1 million.
Adjusted income tax provision for the nine months ended June 30,
2021 excludes tax provisions from a Mexico valuation allowance
adjustment of $105 million and net mark-to-market adjustments of
$75 million, partially offset by tax benefits related to
restructuring and impairment costs of $30 million, and tax benefits
related to Silent-Aire nonrecurring purchase accounting of $1
million. Adjusted income tax provision for the three months ended
June 30, 2020 excludes tax benefits from net mark-to-market
adjustments of $34 million, restructuring and impairment costs of
$28 million, tax audit reserve adjustments of $22 million, and
integration costs of $4 million. Adjusted income tax provision for
the nine months ended June 30, 2020 excludes tax benefits from
restructuring and impairment costs of $48 million, tax audit
reserve adjustments of $44 million, net mark-to-market adjustments
of $38 million, and integration costs of $15 million, partially
offset by tax provisions related to Switzerland tax reform of $30
million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 include integration costs, net mark-to-market adjustments,
restructuring and impairment costs, Silent-Aire transaction costs
and other nonrecurring costs, Power Solutions divestiture reserve
adjustment and discrete tax items. The Company excludes these items
because they are not considered to be directly related to the
underlying operating performance of the Company. Management
believes these non-GAAP measures are 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 from
Continuing Operations
|
|
Net Income
Attributable to JCI plc
|
|
Net Income
Attributable to JCI plc from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share as
reported for JCI plc
|
$
0.80
|
|
$
(0.24)
|
|
$
0.80
|
|
$
(0.24)
|
|
$
1.89
|
|
$
0.25
|
|
$
1.72
|
|
$
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration
costs
|
-
|
|
0.04
|
|
-
|
|
0.04
|
|
-
|
|
0.14
|
|
-
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax
impact
|
-
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
-
|
|
(0.02)
|
|
-
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
mark-to-market adjustments
|
(0.09)
|
|
0.18
|
|
(0.09)
|
|
0.18
|
|
(0.41)
|
|
0.20
|
|
(0.41)
|
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax
impact
|
0.02
|
|
(0.05)
|
|
0.02
|
|
(0.05)
|
|
0.10
|
|
(0.05)
|
|
0.10
|
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
and impairment costs
|
0.11
|
|
0.82
|
|
0.11
|
|
0.82
|
|
0.24
|
|
1.03
|
|
0.24
|
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax
impact
|
(0.02)
|
|
(0.04)
|
|
(0.02)
|
|
(0.04)
|
|
(0.04)
|
|
(0.06)
|
|
(0.04)
|
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NCI impact of
restructuring and impairment
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silent-Aire
transaction costs and other nonrecurring costs
|
0.01
|
|
-
|
|
0.01
|
|
-
|
|
0.01
|
|
-
|
|
0.01
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power
Solutions divestiture reserve adjustment
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.21)
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related tax
impact
|
-
|
|
-
|
|
-
|
|
-
|
|
0.04
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discrete tax
items
|
-
|
|
(0.03)
|
|
-
|
|
(0.03)
|
|
0.15
|
|
(0.02)
|
|
0.15
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NCI impact of
discrete tax items
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
0.01
|
|
-
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share for JCI plc*
|
$
0.83
|
|
$
0.67
|
|
$
0.83
|
|
$
0.67
|
|
$
1.77
|
|
$
1.48
|
|
$
1.77
|
|
$
1.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding for JCI plc
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
714.5
|
|
744.0
|
|
718.2
|
|
756.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options,
unvested restricted stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and unvested performance share awards
|
5.2
|
|
-
|
|
4.3
|
|
2.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
719.7
|
|
744.0
|
|
722.5
|
|
758.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company has
presented forward-looking statements regarding adjusted corporate
expense, adjusted EPS, organic revenue, adjusted segment EBITA
margin and free cash flow conversion, which are non-GAAP financial
measures. These non-GAAP financial measures are derived by
excluding certain amounts, expenses, or income from the
corresponding financial measures determined in accordance with
GAAP. The determination of the amounts that are excluded from these
non-GAAP financial measures are 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, including
but not limited to the high variability of the net mark-to-market
adjustments and the effect of foreign currency exchange
fluctuations. Our fiscal 2021 full year and fourth quarter guidance
for organic revenue also 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 all of the
necessary components of such GAAP measures without unreasonable
effort or expense. The unavailable information could have a
significant impact on the Company's full year and fourth quarter
2021 GAAP financial results.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.
Organic Growth Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
changes in adjusted net sales for the three months ended June 30,
2021 versus the three months ended June 30, 2020, including organic
growth, is shown below (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Adjusted Net Sales
for the
Three Months Ended
June 30, 2020
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
- Foreign Currency
|
|
Adjusted Base Net
Sales for the Three Months Ended
June 30, 2020
|
|
Acquisitions
|
|
Organic
Growth
|
|
Adjusted Net Sales
for the
Three Months Ended
June 30, 2021
|
|
|
Building Solutions
North America
|
$
2,020
|
|
$
-
|
|
-
|
|
$
21
|
|
1%
|
|
$
2,041
|
|
$
-
|
|
-
|
|
$
171
|
|
8%
|
|
$
2,212
|
|
10%
|
|
|
Building Solutions
EMEA/LA
|
756
|
|
-
|
|
-
|
|
56
|
|
7%
|
|
812
|
|
10
|
|
1%
|
|
140
|
|
17%
|
|
962
|
|
27%
|
|
|
Building Solutions
Asia Pacific
|
588
|
|
(3)
|
|
-1%
|
|
41
|
|
7%
|
|
626
|
|
-
|
|
-
|
|
86
|
|
14%
|
|
712
|
|
21%
|
|
|
Total field
|
3,364
|
|
(3)
|
|
-
|
|
118
|
|
4%
|
|
3,479
|
|
10
|
|
-
|
|
397
|
|
11%
|
|
3,886
|
|
16%
|
|
|
Global
Products
|
1,979
|
|
(54)
|
|
-3%
|
|
47
|
|
2%
|
|
1,972
|
|
80
|
|
4%
|
|
406
|
|
21%
|
|
2,458
|
|
24%
|
|
|
Total net sales
|
$
5,343
|
|
$
(57)
|
|
-1%
|
|
$
165
|
|
3%
|
|
$
5,451
|
|
$
90
|
|
2%
|
|
$
803
|
|
15%
|
|
$
6,344
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the
changes in adjusted net sales for the nine months ended June 30,
2021 versus the nine months ended June 30, 2020, including organic
growth, is shown below (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Adjusted Net Sales
for the
Nine Months Ended
June 30, 2020
|
|
Base Year Adjustments
-
Divestitures and Other
|
|
Base Year Adjustments
- Foreign Currency
|
|
Adjusted Base Net
Sales for the Nine
Months Ended
June 30, 2020
|
|
Acquisitions
|
|
Organic
Growth
|
|
Adjusted Net Sales
for the
Nine Months Ended
June 30, 2021
|
|
|
Building Solutions
North America
|
$
6,362
|
|
$
-
|
|
-
|
|
$
37
|
|
1%
|
|
$
6,399
|
|
$
-
|
|
-
|
|
$
(61)
|
|
-1%
|
|
$
6,338
|
|
-
|
|
|
Building Solutions
EMEA/LA
|
2,534
|
|
-
|
|
-
|
|
119
|
|
5%
|
|
2,653
|
|
23
|
|
1%
|
|
89
|
|
3%
|
|
2,765
|
|
9%
|
|
|
Building Solutions
Asia Pacific
|
1,742
|
|
(7)
|
|
-
|
|
99
|
|
6%
|
|
1,834
|
|
-
|
|
-
|
|
96
|
|
5%
|
|
1,930
|
|
11%
|
|
|
Total field
|
10,638
|
|
(7)
|
|
-
|
|
255
|
|
2%
|
|
10,886
|
|
23
|
|
-
|
|
124
|
|
1%
|
|
11,033
|
|
4%
|
|
|
Global
Products
|
5,725
|
|
(187)
|
|
-3%
|
|
135
|
|
2%
|
|
5,673
|
|
80
|
|
1%
|
|
493
|
|
9%
|
|
6,246
|
|
9%
|
|
|
Total net sales
|
$
16,363
|
|
$
(194)
|
|
-1%
|
|
$
390
|
|
2%
|
|
$
16,559
|
|
$
103
|
|
1%
|
|
$
617
|
|
4%
|
|
$
17,279
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. Free Cash
Flow Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's press
release contains financial information regarding free cash flow
which is a non-GAAP performance measure. Free cash flow is defined
as cash provided by operating activities less capital expenditures.
Management believes this non-GAAP measure is useful to investors in
understanding the strength of the Company and its ability to
generate cash.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is the
three months and nine months ended June 30, 2021 and 2020
reconciliation of free cash flow for continuing operations
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities from continuing
operations
|
$
862
|
|
$
833
|
|
$
2,022
|
|
$
1,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(127)
|
|
(97)
|
|
(324)
|
|
(347)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported free cash
flow
|
$
735
|
|
$
736
|
|
$
1,698
|
|
$
1,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5. Net
Debt to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company provides
financial information regarding net debt to adjusted EBITDA, which
is a non-GAAP performance measure. The Company believes the total
net debt to adjusted EBITDA ratio is useful to understanding the
Company's financial condition as it provides a review of the extent
to which the Company relies on external debt financing for its
funding and is a measure of risk to its shareholders. The following
is the June 30, 2021 calculation of net debt to adjusted EBITDA
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
June 30,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
7,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
7,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: cash and cash
equivalents
|
1,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net
debt
|
$
6,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Last twelve months
adjusted EBITDA
|
$
3,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net debt to
adjusted EBITDA
|
1.8x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is the
last twelve months ended June 30, 2021 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, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
1,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net financing
charges
|
221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT
|
2,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration costs
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silent-Aire transaction costs and other nonrecurring
costs
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
mark-to-market adjustments
|
(176)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and impairment costs
|
175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related compensation charge
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
(1)
|
2,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
$
3,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Company's
definition of adjusted EBIT and adjusted EBITDA excludes special
items because these costs 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.
Trade Working Capital as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company provides
financial information regarding trade working capital as a
percentage of net sales, which is a non-GAAP performance measure.
Trade working capital is defined as current assets less current
liabilities, excluding cash, short-term debt, the current portion
of long-term debt, the current portion of assets and liabilities
held for sale, accrued compensation and benefits, and other current
assets and liabilities. Management believes this non-GAAP
measure, which excludes financing-related items, non-trade related
items and businesses to be divested, is a more useful measurement
of the Company's operating performance. The following is the June
30, 2021 and June 30, 2020 calculation of trade working capital as
a percentage of net sales (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
June 30,
2021
|
|
June 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
$
10,310
|
|
$
11,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
(9,285)
|
|
(10,304)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total working
capital
|
1,025
|
|
836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: cash and cash
equivalents
|
(1,450)
|
|
(2,342)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: assets held for
sale
|
-
|
|
(89)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: other current
assets
|
(1,128)
|
|
(1,369)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: short-term
debt
|
265
|
|
1,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: current
portion of long-term debt
|
196
|
|
1,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: accrued
compensation and benefits
|
996
|
|
685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
liabilities held for sale
|
-
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: other
current liabilities
|
2,460
|
|
2,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade working
capital
|
$
2,364
|
|
$
2,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Last twelve months
net sales
|
$
23,230
|
|
$
22,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade working capital
as a percentage of net sales
|
10.2%
|
|
12.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.
Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's
effective tax rate from continuing operations before consideration
of transaction/integration costs, net mark-to-market adjustments,
Silent-Aire nonrecurring purchase accounting, restructuring and
impairment costs, and discrete tax items for the three and nine
months ended June 30, 2021 and June 30, 2020 was approximately
13.5%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.
Restructuring and Impairment Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The three months
ended June 30, 2021 include restructuring and impairment costs of
$79 million related primarily to workforce reductions, asset
impairments and other related costs. The nine months ended June 30,
2021 include restructuring and impairment costs of $175 million
related primarily to workforce reductions, asset impairments and
other related costs. The three months ended June 30, 2020 include
restructuring and impairment costs of $610 million related to
workforce reductions, asset impairments and goodwill impairments
related to the Company's retail business. The nine months ended
June 30, 2020 include restructuring and impairment costs of $783
million related primarily to workforce reductions, plant closures,
asset impairments, and indefinite-lived intangible asset and
goodwill impairments related to the Company's retail
business.
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/johnson-controls-reports-solid-third-quarter-results-and-raises-full-year-guidance-301344805.html
SOURCE Johnson Controls International plc