CORK, Ireland, Nov. 8, 2016 /PRNewswire/ -- For the fourth
quarter of fiscal 2016, Johnson Controls (NYSE:JCI), reported
$10.2 billion in sales, segment EBIT
of $798 million and a GAAP net loss
from continuing operations of $1.2
billion, which includes one month of Tyco results (merger
completed Sept. 2, 2016) as well as
several special items. GAAP diluted loss per share from continuing
operations for the quarter was $1.61
compared to breakeven in the prior year quarter.
Adjusting for special items and excluding the Tyco results,
non-GAAP adjusted diluted earnings per share from continuing
operations increased 16 percent to $1.21 from $1.04 in
the prior year quarter. Financial highlights from continuing
operations for the quarter include:
- Adjusted net sales of $9.4
billion versus $8.7 billion in
the prior year quarter, with the increase due primarily to
incremental sales from the Johnson Controls-Hitachi joint
venture.
- Adjusted segment EBIT from continuing operations of
$1,085 million compared with
$939 million in the prior year
quarter, up 16 percent, reflecting the contribution of the Hitachi
joint venture and ongoing Johnson Controls Operating System
benefits.
- Adjusted segment EBIT margin of 11.6 percent was 90 basis
points higher than the prior year quarter.
- Adjusted diluted EPS of $1.21
exceeded guidance of $1.17 to
$1.20.
Special items that impacted reported fourth quarter 2016 and
2015 income from continuing operations include:
2016 fourth quarter (net charge of $2.82 per share)
- Tyco's September adjusted income of $72
million ($62 million after-tax
and non-controlling interest)
- Non-cash mark-to-market pension/postretirement and settlement
losses of $514 million ($357 million after-tax and non-controlling
interest)
- Transaction, integration and separation costs of $293 million ($263
million after-tax and non-controlling interest) related to
the spin-off of Adient and the Tyco merger
- Restructuring and non-cash impairment charges of $296 million ($232
million after-tax and non-controlling interest) primarily
related to workforce reductions and asset impairments
- Non-recurring portion of purchase accounting expenses of
$74 million ($54 million after-tax) associated with the Tyco
merger
- Tax expense of $1.1 billion
primarily related to the Adient spin-off
2015 fourth quarter (net charge of $1.04 per share)
- Non-cash mark-to-market pension and postretirement losses of
$422 million ($257 million after-tax)
- Transaction, integration and separation costs of $34 million ($28
million after-tax)
- Restructuring and non-cash impairment charges of $397 million ($310
million after-tax) primarily related to Automotive Seating
plant restructuring as well as asset impairments
- Net gain from divested businesses of $145 million ($38
million after-tax)
- Tax expense of $124 million
primarily related to business divestitures
"We delivered another strong quarter and an exceptional 2016,
continuing the strong performance we have seen throughout the
year," said Alex Molinaroli, Johnson
Controls chairman & CEO. "Earnings per share growth of 16
percent was driven by double-digit profitability improvements
across all businesses."
Business results
Building Efficiency sales in the fourth quarter of 2016 were
$3.6 billion, up 25 percent versus
the prior year quarter. Excluding M&A and the impact of foreign
currency, sales increased 2 percent versus the prior year quarter
with higher sales in North America Products and Asia.
Orders in the quarter, excluding M&A and adjusted for
foreign exchange, were 6 percent higher year-over-year driven by
Systems and Services North America up 6 percent, Products North
America up 7 percent and Asia up 7
percent. Backlog at the end of the quarter of $4.8 billion increased 5 percent versus the prior
year, excluding the impact of the Hitachi joint venture and foreign
exchange.
Building Efficiency adjusted segment EBIT was $410 million, up 17 percent from $351 million in the prior year quarter. As
expected, the segment EBIT margin of 11.3 percent decreased 80
basis points year-over-year primarily resulting from the mix
related to the lower margin Hitachi joint venture contribution, as
well as ongoing product and sales force investments.
Power Solutions sales in the fourth quarter of 2016 were
$1.8 billion, up 7 percent from the
prior year. Excluding the impact of foreign exchange and
lower lead pass-through costs, sales increased 8 percent, with
higher volumes in all regions. Global original equipment battery
shipments increased 2 percent and aftermarket shipments increased 9
percent in the quarter versus the prior year.
Power Solutions adjusted segment EBIT of $394 million increased 16 percent from the prior
year quarter due primarily to higher volumes, mix, and cost
reduction initiatives. Segment EBIT margin of 21.8 percent in the
quarter increased 160 basis points from the prior year quarter.
Automotive Experience sales in the fourth quarter of 2016 were
$3.9 billion, down 5 percent compared
to the prior year quarter, as growth in Asia was more than offset by declines in
Europe and the Americas.
Sales in China, which are
primarily generated through non-consolidated joint ventures,
increased 26 percent to $2.9 billion
(up 31 percent excluding the impact of foreign exchange).
Automotive Experience adjusted segment EBIT was $281 million, an increase of 13 percent versus
the prior year quarter primarily due to restructuring savings, cost
reduction initiatives, and operational efficiencies, partially
offset by volume declines. Segment EBIT margin of 7.1 percent
increased 110 basis points from the prior year quarter.
The Tyco merger was completed on Sept. 2,
2016 and, therefore, the results include one month of
Tyco. Sales for September 2016
were $0.8 billion. Tyco
adjusted segment EBIT was $86
million, and the segment EBIT margin was 10.4 percent.
This includes incremental recurring amortization expense of
$21 million.
Full year 2016 results
For the full year, Johnson Controls reported $37.7 billion in sales, segment EBIT of
$3.0 billion and a GAAP net loss from
continuing operations of $868
million, which includes one month of Tyco results as well as
several special items. GAAP diluted loss per share from
continuing operations for the year was $1.30 compared to earnings per share from
continuing operations of $2.18 in the
prior year.
Adjusting for special items and excluding the Tyco results,
non-GAAP adjusted diluted earnings per share from continuing
operations increased 16 percent to $3.98 from $3.42 in
the prior year. Financial highlights from continuing
operations for the full year include:
- Adjusted net sales of $36.9
billion versus $37.2 billion
in the prior year. Increased volume and incremental sales
from the Hitachi joint venture were more than offset by the impact
of the Automotive Interiors deconsolidation. Excluding the
impact of these items and foreign exchange, adjusted sales
increased 1 percent.
- Adjusted segment EBIT of $3.7
billion compared with $3.2
billion in the prior year, up 16 percent. Excluding
the impact of the Hitachi joint venture, foreign exchange and the
Automotive Interiors deconsolidation, adjusted segment EBIT
increased 9 percent.
- Adjusted segment EBIT margin of 10.1 percent was 150 basis
points higher than the prior year.
- Adjusted diluted EPS of $3.98 was
at the high end of the guidance range of $3.95 to $3.98.
2016 was a year of transformation for Johnson Controls.
The Company successfully executed on several actions to improve
long-term shareholder value, including:
- Formation of the Hitachi joint venture on October 1, 2015
- Merger with Tyco on Sept. 2,
2016
- Separation of the Automotive Experience business creating
Adient (NYSE: ADNT) on Oct. 31,
2016
"We have significantly transformed our portfolio of businesses
while at the same time exceeding our external commitments.
This is a true testament to the dedication and leadership of all of
our employees around the globe," said Molinaroli. "2016 was truly a
momentous year in which a new Johnson Controls has emerged as the
global leader in building technologies, integrated solutions and
energy storage. We believe the company is well-positioned
strategically for long term success and to operationally deliver
strong growth and profitability in 2017."
About Johnson Controls:
Johnson Controls is a global diversified technology and multi
industrial leader serving a wide range of customers in more than
150 countries. Our 135,000 employees create intelligent buildings,
efficient energy solutions, integrated infrastructure and next
generation transportation systems that work seamlessly together to
deliver on the promise of smart cities and communities. Our
commitment to sustainability dates back to our roots in 1885, with
the invention of the first electric room thermostat. We are
committed to helping our customers win and creating greater value
for all of our stakeholders through strategic focus on our
buildings and energy growth platforms. For additional information,
please visit http://www.johnsoncontrols.com or follow us
@johnsoncontrols on Twitter.
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: any delay or inability of Johnson Controls to
realize the expected benefits and synergies of recent
portfolio transactions such as the merger with Tyco and the
spin-off of Adient, changes in tax laws, regulations,
rates, policies or interpretations, the loss of key senior
management, the tax treatment of recent portfolio
transactions, significant transaction costs and/or
unknown liabilities associated with such transactions, the
outcome of actual or potential litigation relating
to such transactions, the risk that disruptions
from recent transactions will harm Johnson Controls'
business, the strength of the U.S. or other economies,
automotive vehicle production levels, mix and schedules, energy and
commodity prices, the availability of raw materials and component
products, currency exchange rates, and 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 each of Johnson Controls, Inc.'s and Tyco
International plc's Annual Reports on Form 10-K for the 2015 fiscal
year filed with the SEC on November 18,
2015 and November 13, 2015,
respectively, and in the quarterly reports on Form 10-Q filed by
each company with the SEC after such date, and available at
www.sec.gov and www.johnsoncontrols.com under the "Investors" tab,
as well as the Form 10 registration statement filed
by Adient Limited and the amendments thereto.
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 mark-to-market for
pension and postretirement plans/settlement losses,
transaction/integration/separation costs, restructuring and
impairment costs, significant gains or losses on business
divestitures, nonrecurring purchase accounting impacts related to
the Tyco merger and discrete tax items. Financial information
regarding adjusted sales, adjusted segment EBIT and adjusted
segment EBIT margin are also presented, which are non-GAAP
performance measures. Adjusted segment EBIT excludes special items
such as transaction/integration/separation costs, nonrecurring
purchase accounting impacts and significant gains or losses on
business divestiture because these costs are not considered to be
directly related to the 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.
CONTACT:
|
Investors:
Antonella
Franzen
(609)
720-4665
Ryan
Edelman
(609)
720-4545
Media:
Fraser
Engerman
(414)
524-2733
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(in millions, except
per share data; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
Net sales
|
$
10,198
|
|
|
$
8,749
|
Cost of
sales
|
8,133
|
|
|
7,190
|
|
Gross
profit
|
2,065
|
|
|
1,559
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(1,914)
|
|
|
(1,031)
|
Restructuring and
impairment costs
|
(289)
|
|
|
(397)
|
Net financing
charges
|
(103)
|
|
|
(73)
|
Equity
income
|
144
|
|
|
100
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
(97)
|
|
|
158
|
|
|
|
|
|
|
Income tax
provision
|
1,035
|
|
|
135
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
(1,132)
|
|
|
23
|
|
|
|
|
|
|
Income from
discontinued operations, net of tax
|
-
|
|
|
346
|
|
|
|
|
|
|
Net income
(loss)
|
(1,132)
|
|
|
369
|
|
|
|
|
|
|
Less: Income from
continuing operations
attributable to
noncontrolling interests
|
|
|
|
|
39
|
|
|
20
|
|
|
|
|
|
|
Net income (loss)
attributable to JCI
|
$
(1,171)
|
|
|
$
349
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
(1,171)
|
|
|
$
3
|
Income from
discontinued operations
|
-
|
|
|
346
|
|
|
|
|
|
|
Net income (loss)
attributable to JCI
|
$
(1,171)
|
|
|
$
349
|
|
|
|
|
|
|
Diluted earnings
(loss) per share from continuing operations
|
$
(1.61)
|
|
|
$
-
|
Diluted earnings per
share from discontinued operations
|
-
|
|
|
0.53
|
Diluted earnings
(loss) per share
|
$
(1.61)
|
|
|
$
0.53
|
|
|
|
|
|
|
Diluted weighted
average shares
|
728.3
|
|
|
655.2
|
Shares outstanding at
period end
|
935.8
|
|
|
647.4
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(in millions, except
per share data; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
September 30,
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
Net sales
|
$
37,674
|
|
|
$
37,179
|
Cost of
sales
|
30,360
|
|
|
30,732
|
|
Gross
profit
|
7,314
|
|
|
6,447
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(5,325)
|
|
|
(3,986)
|
Restructuring and
impairment costs
|
(620)
|
|
|
(397)
|
Net financing
charges
|
(314)
|
|
|
(288)
|
Equity
income
|
531
|
|
|
375
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
1,586
|
|
|
2,151
|
|
|
|
|
|
|
Income tax
provision
|
2,238
|
|
|
600
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
(652)
|
|
|
1,551
|
|
|
|
|
|
|
Income from
discontinued operations, net of tax
|
-
|
|
|
128
|
|
|
|
|
|
|
Net income
(loss)
|
(652)
|
|
|
1,679
|
|
|
|
|
|
|
Less: Income from
continuing operations
attributable to
noncontrolling interests
|
|
|
|
|
216
|
|
|
112
|
|
|
|
|
|
|
Less: Income from
discontinued operations
attributable to
noncontrolling interests
|
|
|
|
|
-
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to JCI
|
$
(868)
|
|
|
$
1,563
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
(868)
|
|
|
$
1,439
|
Income from
discontinued operations
|
-
|
|
|
124
|
|
|
|
|
|
|
Net income (loss)
attributable to JCI
|
$
(868)
|
|
|
$
1,563
|
|
|
|
|
|
|
Diluted earnings
(loss) per share from continuing operations
|
$
(1.30)
|
|
|
$
2.18
|
Diluted earnings per
share from discontinued operations
|
-
|
|
|
0.19
|
Diluted earnings
(loss) per share *
|
$
(1.30)
|
|
|
$
2.36
|
|
|
|
|
|
|
Diluted weighted
average shares
|
667.4
|
|
|
661.5
|
Shares outstanding at
period end
|
935.8
|
|
|
647.4
|
|
|
|
|
|
|
* May not sum due to
rounding.
|
|
|
|
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2016
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
684
|
|
$
597
|
|
Cash in escrow
related to Adient debt
|
2,034
|
|
-
|
|
Accounts receivable -
net
|
8,018
|
|
5,751
|
|
Inventories
|
3,560
|
|
2,377
|
|
Assets held for
sale
|
174
|
|
55
|
|
Other current
assets
|
2,654
|
|
1,689
|
|
|
Current
assets
|
17,124
|
|
10,469
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
7,872
|
|
5,870
|
|
Goodwill
|
|
23,432
|
|
6,824
|
|
Other intangible
assets - net
|
7,684
|
|
1,516
|
|
Investments in
partially-owned affiliates
|
2,735
|
|
2,143
|
|
Other noncurrent
assets
|
4,639
|
|
2,800
|
|
|
Total
assets
|
$
63,486
|
|
$
29,622
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
1,747
|
|
$
865
|
|
Accounts payable and
accrued expenses
|
8,542
|
|
6,264
|
|
Liabilities held for
sale
|
28
|
|
42
|
|
Other current
liabilities
|
6,098
|
|
3,275
|
|
|
Current
liabilities
|
16,415
|
|
10,446
|
|
|
|
|
|
|
|
Long-term
debt
|
14,606
|
|
5,745
|
|
Other noncurrent
liabilities
|
7,141
|
|
2,721
|
|
Redeemable
noncontrolling interests
|
234
|
|
212
|
|
Shareholders' equity
attributable to JCI
|
24,118
|
|
10,335
|
|
Noncontrolling
interests
|
972
|
|
163
|
|
|
Total liabilities and
equity
|
$
63,486
|
|
$
29,622
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
2016
|
|
|
2015
|
Operating
Activities
|
|
|
|
|
Net income (loss)
attributable to JCI
|
$
(1,171)
|
|
|
$
349
|
Income from
continuing operations attributable to noncontrolling
interests
|
39
|
|
|
20
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(1,132)
|
|
|
369
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income (loss) to cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
273
|
|
|
213
|
|
|
Pension and
postretirement benefit expense
|
507
|
|
|
412
|
|
|
Pension and
postretirement contributions
|
(43)
|
|
|
(332)
|
|
|
Equity in earnings of
partially-owned affiliates, net of dividends received
|
(48)
|
|
|
95
|
|
|
Deferred income
taxes
|
(1,773)
|
|
|
(321)
|
|
|
Non-cash
restructuring and impairment costs
|
141
|
|
|
183
|
|
|
Gain on business
divestitures
|
(12)
|
|
|
(1,140)
|
|
|
Other -
net
|
75
|
|
|
17
|
|
|
Changes in assets and
liabilities, excluding acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(231)
|
|
|
(241)
|
|
|
|
|
Inventories
|
234
|
|
|
74
|
|
|
|
|
Other
assets
|
180
|
|
|
21
|
|
|
|
|
Restructuring
reserves
|
73
|
|
|
176
|
|
|
|
|
Accounts payable and
accrued liabilities
|
456
|
|
|
537
|
|
|
|
|
Accrued income
taxes
|
2,499
|
|
|
674
|
|
|
|
|
|
Cash provided by
operating activities
|
1,199
|
|
|
737
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital
expenditures
|
(427)
|
|
|
(315)
|
Sale of property,
plant and equipment
|
4
|
|
|
12
|
Acquisition of
businesses, net of cash acquired
|
486
|
|
|
-
|
Business
divestitures, net of cash divested
|
(22)
|
|
|
1,505
|
Other -
net
|
(57)
|
|
|
(30)
|
|
|
Cash provided (used)
by investing activities
|
(16)
|
|
|
1,172
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Decrease in short and
long-term debt - net
|
(503)
|
|
|
(934)
|
Debt financing
costs
|
(45)
|
|
|
-
|
Stock
repurchases
|
(26)
|
|
|
(362)
|
Payment of cash
dividends
|
(371)
|
|
|
(170)
|
Proceeds from the
exercise of stock options
|
36
|
|
|
44
|
Dividends paid to
noncontrolling interests
|
(66)
|
|
|
(25)
|
Other -
net
|
2
|
|
|
(21)
|
|
|
Cash used by
financing activities
|
(973)
|
|
|
(1,468)
|
Effect of exchange
rate changes on cash and cash equivalents
|
7
|
|
|
(57)
|
Increase in cash
and cash equivalents
|
$
217
|
|
|
$
384
|
JOHNSON CONTROLS
INTERNATIONAL PLC
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
September 30,
|
|
|
|
|
|
|
2016
|
|
|
2015
|
Operating
Activities
|
|
|
|
|
Net income (loss)
attributable to JCI
|
$
(868)
|
|
|
$
1,563
|
Income from
continuing operations attributable to noncontrolling
interests
|
216
|
|
|
112
|
Income from
discontinued operations attributable to noncontrolling
interests
|
-
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(652)
|
|
|
1,679
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income (loss) to cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
953
|
|
|
860
|
|
|
Pension and
postretirement benefit expense
|
460
|
|
|
396
|
|
|
Pension and
postretirement contributions
|
(137)
|
|
|
(409)
|
|
|
Equity in earnings of
partially-owned affiliates, net of dividends received
|
(250)
|
|
|
(144)
|
|
|
Deferred income
taxes
|
(1,437)
|
|
|
327
|
|
|
Non-cash
restructuring and impairment costs
|
221
|
|
|
183
|
|
|
Gain on business
divestitures
|
(26)
|
|
|
(1,340)
|
|
|
Other -
net
|
143
|
|
|
89
|
|
|
Changes in assets and
liabilities, excluding acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(344)
|
|
|
(297)
|
|
|
|
|
Inventories
|
1
|
|
|
(99)
|
|
|
|
|
Other
assets
|
133
|
|
|
(113)
|
|
|
|
|
Restructuring
reserves
|
141
|
|
|
(6)
|
|
|
|
|
Accounts payable and
accrued liabilities
|
413
|
|
|
348
|
|
|
|
|
Accrued income
taxes
|
2,276
|
|
|
126
|
|
|
|
|
|
Cash provided by
operating activities
|
1,895
|
|
|
1,600
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital
expenditures
|
(1,249)
|
|
|
(1,135)
|
Sale of property,
plant and equipment
|
32
|
|
|
37
|
Acquisition of
businesses, net of cash acquired
|
353
|
|
|
(22)
|
Business
divestitures, net of cash divested
|
32
|
|
|
1,646
|
Other -
net
|
(55)
|
|
|
(56)
|
|
|
Cash provided (used)
by investing activities
|
(887)
|
|
|
470
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Increase in short and
long-term debt - net
|
758
|
|
|
40
|
Debt financing
costs
|
(45)
|
|
|
-
|
Stock
repurchases
|
(501)
|
|
|
(1,362)
|
Payment of cash
dividends
|
(915)
|
|
|
(657)
|
Proceeds from the
exercise of stock options
|
70
|
|
|
275
|
Dividends paid to
noncontrolling interests
|
(306)
|
|
|
(68)
|
Other -
net
|
6
|
|
|
(49)
|
|
|
Cash used by
financing activities
|
(933)
|
|
|
(1,821)
|
Effect of exchange
rate changes on cash and cash equivalents
|
12
|
|
|
(81)
|
Cash held for
sale
|
-
|
|
|
20
|
Increase in cash
and cash equivalents
|
$
87
|
|
|
$
188
|
FOOTNOTES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Business Unit
Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
(in
millions)
|
|
|
September
30,
|
|
|
|
September
30,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
%
|
|
2016
|
|
2015
|
|
%
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building
Efficiency
|
|
|
$
3,635
|
|
$
2,903
|
|
25%
|
|
$
13,376
|
|
$
10,510
|
|
27%
|
|
Tyco
|
|
|
808
|
|
-
|
|
*
|
|
808
|
|
-
|
|
*
|
|
Power
Solutions
|
|
|
1,811
|
|
1,685
|
|
7%
|
|
6,653
|
|
6,590
|
|
1%
|
|
Automotive
Experience
|
|
|
3,944
|
|
4,161
|
|
-5%
|
|
16,837
|
|
20,079
|
|
-16%
|
|
Net sales
|
|
|
$
10,198
|
|
$
8,749
|
|
|
|
$
37,674
|
|
$
37,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building
Efficiency
|
|
|
$
279
|
|
$
340
|
|
-18%
|
|
$
1,036
|
|
$
923
|
|
12%
|
|
Tyco
|
|
|
(17)
|
|
-
|
|
*
|
|
(17)
|
|
-
|
|
*
|
|
Power
Solutions
|
|
|
386
|
|
340
|
|
14%
|
|
1,253
|
|
1,153
|
|
9%
|
|
Automotive
Experience
|
|
|
150
|
|
370
|
|
-59%
|
|
751
|
|
1,182
|
|
-36%
|
|
Segment EBIT (2)
|
|
|
$
798
|
|
$
1,050
|
|
|
|
$
3,023
|
|
$
3,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
impairment costs
|
|
|
$
(289)
|
|
$
(397)
|
|
|
|
$
(620)
|
|
$
(397)
|
|
|
|
Net financing
charges
|
|
|
(103)
|
|
(73)
|
|
|
|
(314)
|
|
(288)
|
|
|
|
Mark-to-market charge
for pension and postretirement plans
|
|
|
(503)
|
|
(422)
|
|
|
|
(503)
|
|
(422)
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
|
$
(97)
|
|
$
158
|
|
|
|
$
1,586
|
|
$
2,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and
systems
|
|
|
$
8,863
|
|
$
7,742
|
|
14%
|
|
$
33,635
|
|
$
33,513
|
|
0%
|
|
Services
|
|
|
1,335
|
|
1,007
|
|
33%
|
|
4,039
|
|
3,666
|
|
10%
|
|
|
|
|
$
10,198
|
|
$
8,749
|
|
|
|
$
37,674
|
|
$
37,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products and
systems
|
|
|
$
7,256
|
|
$
6,492
|
|
12%
|
|
$
27,625
|
|
$
28,214
|
|
-2%
|
|
Services
|
|
|
877
|
|
698
|
|
26%
|
|
2,735
|
|
2,518
|
|
9%
|
|
|
|
|
$
8,133
|
|
$
7,190
|
|
|
|
$
30,360
|
|
$
30,732
|
|
|
|
* Metric not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Management
evaluates the performance of the business units based primarily on
segment earnings before interest and taxes (EBIT), which represents
income from continuing operations before income taxes and
noncontrolling interests, excluding net financing charges,
significant restructuring and impairment costs, and the net
mark-to-market adjustments related to pension and postretirement
plans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building
Efficiency- Provides facility systems and services including
comfort, energy and security management for the non-residential
buildings market and provides heating, ventilating, and air
conditioning products and services for the residential and
non-residential building markets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tyco- Provides
security products and services, fire detection and suppression
products and services, and life safety products.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power
Solutions- Services both automotive original equipment
manufacturers and the battery aftermarket by providing advanced
battery technology, coupled with systems engineering, marketing and
service expertise.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive
Experience- Designs and manufactures interior systems and
products for passenger cars and light trucks, including vans,
pick-up trucks and sport/crossover utility vehicles.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) The Company's
press release contains financial information regarding adjusted
sales, adjusted segment EBIT and adjusted segment EBIT margin,
which are non-GAAP performance measures. The Company's
definition of adjusted segment EBIT excludes special items because
these costs are not considered to be directly related to the
operating performance of its business units. Management
believes these non-GAAP measures are useful to investors in
understanding the ongoing operations and business trends of the
Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is the
fourth quarter reconciliation of sales, segment EBIT and segment
EBIT margin as reported to adjusted sales, adjusted segment EBIT
and adjusted segment EBIT margin (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building
Efficiency
|
|
Tyco
|
|
Power
Solutions
|
|
Automotive
Experience
|
|
Consolidated
JCI plc
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Sales as
reported
|
$
3,635
|
|
$
2,903
|
|
$
808
|
|
$
-
|
|
$
1,811
|
|
$
1,685
|
|
$
3,944
|
|
$
4,161
|
|
$
10,198
|
|
$
8,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonrecurring
purchase accounting impacts
|
-
|
|
-
|
|
20
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
sales
|
$
3,635
|
|
$
2,903
|
|
$
828
|
|
$
-
|
|
$
1,811
|
|
$
1,685
|
|
$
3,944
|
|
$
4,161
|
|
$
10,218
|
|
$
8,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT as
reported
|
$
279
|
|
$
340
|
|
$
(17)
|
|
$
-
|
|
$
386
|
|
$
340
|
|
$
150
|
|
$
370
|
|
$
798
|
|
$
1,050
|
|
Segment EBIT margin
as reported
|
7.7%
|
|
11.7%
|
|
-2.1%
|
|
*
|
|
21.3%
|
|
20.2%
|
|
3.8%
|
|
8.9%
|
|
7.8%
|
|
12.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction/integration/separation
costs
|
126
|
|
11
|
|
29
|
|
-
|
|
-
|
|
-
|
|
126
|
|
23
|
|
281
|
|
34
|
|
Nonrecurring purchase
accounting impacts
|
-
|
|
-
|
|
74
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
74
|
|
-
|
|
Gain on
business divestiture
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(145)
|
|
-
|
|
(145)
|
|
Other -
net
|
5
|
|
-
|
|
-
|
|
-
|
|
8
|
|
-
|
|
5
|
|
-
|
|
18
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment
EBIT
|
$
410
|
|
$
351
|
|
$
86
|
(3)
|
$
-
|
|
$
394
|
|
$
340
|
|
$
281
|
|
$
248
|
|
$
1,171
|
|
$
939
|
|
Adjusted segment EBIT
margin
|
11.3%
|
|
12.1%
|
|
10.4%
|
|
*
|
|
21.8%
|
|
20.2%
|
|
7.1%
|
|
6.0%
|
|
11.5%
|
|
10.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is the
year-to-date reconciliation of sales, segment EBIT and segment EBIT
margin as reported to adjusted sales, adjusted segment EBIT and
adjusted segment EBIT margin (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building
Efficiency
|
|
Tyco
|
|
Power
Solutions
|
|
Automotive
Experience
|
|
Consolidated
JCI plc
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Sales as
reported
|
$
13,376
|
|
$
10,510
|
|
$
808
|
|
$
-
|
|
$
6,653
|
|
$
6,590
|
|
$
16,837
|
|
$
20,079
|
|
$
37,674
|
|
$
37,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonrecurring
purchase accounting impacts
|
-
|
|
-
|
|
20
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
sales
|
$
13,376
|
|
$
10,510
|
|
$
828
|
|
$
-
|
|
$
6,653
|
|
$
6,590
|
|
$
16,837
|
|
$
20,079
|
|
$
37,694
|
|
$
37,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBIT as
reported
|
$
1,036
|
|
$
923
|
|
$
(17)
|
|
$
-
|
|
$
1,253
|
|
$
1,153
|
|
$
751
|
|
$
1,182
|
|
$
3,023
|
|
$
3,258
|
|
Segment EBIT margin
as reported
|
7.7%
|
|
8.8%
|
|
-2.1%
|
|
*
|
|
18.8%
|
|
17.5%
|
|
4.5%
|
|
5.9%
|
|
8.0%
|
|
8.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction/integration/separation costs
|
191
|
|
37
|
|
29
|
|
-
|
|
1
|
|
-
|
|
459
|
|
54
|
|
680
|
|
91
|
|
Nonrecurring
purchase accounting impacts
|
-
|
|
-
|
|
74
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
74
|
|
-
|
|
Gain on
business divestiture
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(145)
|
|
-
|
|
(145)
|
|
Other -
net
|
5
|
|
-
|
|
-
|
|
-
|
|
8
|
|
-
|
|
5
|
|
-
|
|
18
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted segment
EBIT
|
$
1,232
|
|
$
960
|
|
$
86
|
(3)
|
$
-
|
|
$
1,262
|
|
$
1,153
|
|
$
1,215
|
|
$
1,091
|
|
$
3,795
|
|
$
3,204
|
|
Adjusted segment EBIT
margin
|
9.2%
|
|
9.1%
|
|
10.4%
|
|
*
|
|
19.0%
|
|
17.5%
|
|
7.2%
|
|
5.4%
|
|
10.1%
|
|
8.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Metric not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Includes $21
million of incremental recurring intangible asset amortization
expense. Excluding this incremental amortization expense,
adjusted segment EBIT is $107 million and adjusted segment EBIT
margin is 12.9%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 mark-to-market for pension and
postretirement plans/settlement losses,
transaction/integration/separation costs, restructuring and
impairment costs, significant gain on business divestitures,
nonrecurring purchase accounting impacts related to the Tyco merger
and discrete tax items. The Company excludes these items
because they are not considered to be directly related to the
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 diluted adjusted earnings
per share for the respective quarter and year-to-date periods is
shown below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share as
reported for JCI plc
|
$
(1.61)
|
|
$
0.53
|
|
$
(1.61)
|
|
$
-
|
|
|
|
$
(1.30)
|
|
$
2.36
|
|
$
(1.30)
|
|
$
2.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market
for pension and postretirement plans/settlement losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.68
|
|
0.64
|
|
0.68
|
|
0.64
|
|
|
|
0.75
|
|
0.64
|
|
0.75
|
|
0.64
|
|
|
|
Related tax
impact
|
(0.20)
|
|
(0.25)
|
|
(0.20)
|
|
(0.25)
|
|
|
|
(0.22)
|
|
(0.25)
|
|
(0.22)
|
|
(0.25)
|
|
|
|
Transaction/integration/separation costs
|
0.40
|
|
0.13
|
|
0.40
|
|
0.05
|
|
|
|
1.01
|
|
0.27
|
|
1.01
|
|
0.14
|
|
|
|
Related tax
impact
|
(0.04)
|
|
(0.02)
|
|
(0.04)
|
|
(0.01)
|
|
|
|
(0.09)
|
|
(0.05)
|
|
(0.09)
|
|
(0.02)
|
|
|
|
Restructuring
and impairment costs
|
0.39
|
|
0.61
|
|
0.39
|
|
0.61
|
|
|
|
0.91
|
|
0.60
|
|
0.91
|
|
0.60
|
|
|
|
Related tax
impact
|
(0.07)
|
|
(0.13)
|
|
(0.07)
|
|
(0.13)
|
|
|
|
(0.14)
|
|
(0.13)
|
|
(0.14)
|
|
(0.13)
|
|
|
|
Nonrecurring
purchase accounting impacts
|
0.10
|
|
-
|
|
0.10
|
|
-
|
|
|
|
0.11
|
|
-
|
|
0.11
|
|
-
|
|
|
|
Related tax
impact
|
(0.03)
|
|
-
|
|
(0.03)
|
|
-
|
|
|
|
(0.03)
|
|
-
|
|
(0.03)
|
|
-
|
|
|
|
Gain on
business divestitures
|
-
|
|
(1.66)
|
|
-
|
|
(0.22)
|
|
|
|
-
|
|
(1.94)
|
|
-
|
|
(0.22)
|
|
|
|
Related tax
impact
|
-
|
|
0.62
|
|
-
|
|
0.16
|
|
|
|
-
|
|
0.72
|
|
-
|
|
0.16
|
|
|
|
Discrete tax
items
|
1.50
|
|
0.61
|
|
1.50
|
|
0.19
|
|
|
|
2.93
|
|
1.35
|
|
2.93
|
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share for JCI plc*
|
$
1.14
|
|
$
1.07
|
|
$
1.14
|
|
$
1.04
|
|
|
|
$
3.94
|
|
$
3.58
|
|
$
3.94
|
|
$
3.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Adjusted
September results for Tyco (4)
|
(0.08)
|
|
|
|
(0.08)
|
|
|
|
|
|
(0.09)
|
|
|
|
(0.09)
|
|
|
|
|
|
Adjusted earnings per
share for JCI plc excluding Tyco
|
$
1.06
|
|
|
|
$
1.06
|
|
|
|
|
|
$
3.85
|
|
|
|
$
3.85
|
|
|
|
|
|
Adjusted JCI plc
diluted shares outstanding (in millions)
|
735.2
|
|
|
|
735.2
|
|
|
|
|
|
672.6
|
|
|
|
672.6
|
|
|
|
|
|
Adjusted net income
attributable to JCI Inc. (in millions) (5), (6)
|
$
776
|
|
|
|
$
776
|
|
|
|
|
|
$
2,587
|
|
|
|
$
2,587
|
|
|
|
|
|
Adjusted JCI Inc.
diluted shares (in millions)
|
643.1
|
|
|
|
643.1
|
|
|
|
|
|
649.4
|
|
|
|
649.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share for JCI Inc.*
|
$
1.21
|
|
|
|
$
1.21
|
|
|
|
|
|
$
3.98
|
|
|
|
$
3.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* May not sum due to
rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of
the differences between earnings per share as reported and adjusted
earnings per share provided on a forward-looking basis is not
available due to the high variability of the net mark-to-market
adjustments related to pension and postretirement plans and
unpredictability of any other potential adjusting items.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Amount calculated
based on adjusted Tyco segment EBIT of $86 million less Tyco's net
financing charges of $14 million, income tax expense of $9 million
and noncontrolling interest impact of $1 million for the month of
September.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) The three months
ended September 30, 2016 includes $1,171 million for JCI plc
adjusted segment EBIT less $86 million of Tyco adjusted segment
EBIT, $77 million of net financing charges ($103 million for JCI
plc less $14 million for Tyco and $12 million related to separation
and integration costs), $172 million income tax expense ($1,035
million for JCI plc less $854 million related to tax impacts of
adjusted segment EBIT and discrete tax items as well as $9 million
for the tax impact of Tyco's adjusted earnings) and $60 million for
the impact of noncontrolling interest ($39 million of expense for
JCI plc plus the noncontrolling interest impact of adjusted segment
EBIT items of $22 million less the Tyco noncontrolling interest
impact of $1 million).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) The twelve months
ended September 30, 2016 includes $3,795 million for JCI plc
adjusted segment EBIT less $86 million of Tyco adjusted segment
EBIT, $288 million of net financing charges ($314 million for JCI
plc less $14 million for Tyco and $12 million related to separation
and integration costs), $582 million income tax expense ($2,238
million for JCI plc less $1,647 million related to tax impacts of
adjusted segment EBIT and discrete tax items as well as $9 million
for the tax impact of Tyco's adjusted earnings) and $252 million
for the impact of noncontrolling interest ($216 million of expense
for JCI plc plus the noncontrolling interest impact of adjusted
segment EBIT items of $37 million less the Tyco noncontrolling
interest impact of $1 million).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thefollowing table
reconciles the denominators used to calculate basic and diluted
earnings per share for JCI plc (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding for JCI plc
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
728.3
|
|
650.2
|
|
667.4
|
|
655.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options, unvested
restricted stock and unvested
performance share awards
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
5.0
|
|
-
|
|
6.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
728.3
|
|
655.2
|
|
667.4
|
|
661.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three and
twelve months ended September 30, 2016, the total number of
potential dilutive shares due to stock options, unvested restricted
stock and unvested performance share awards was 6.9 million and 5.2
million, respectively. However, these items were not included in
the computation of diluted loss per share for the three and twelve
months ended September 30, 2016, since to do so would decrease the
loss per share. On an adjusted diluted outstanding share basis,
inclusion of the effect of dilutive securities results in diluted
weighted average shares outstanding of 735.2 million and 672.6
million for the three and twelve months ended September 30, 2016,
respectively.
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The following table
reconciles the denominators used to calculate adjusted diluted
earnings per share for JCI Inc. (i.e. JCI plc excluding the impact
of the Tyco merger). The JCI Inc. shares represent the JCI
plc shares adjusted to exclude the merger share conversion and
September Tyco dilutive securities impact. Amounts below are
shown in millions.
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Three Months
Ended
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Twelve Months
Ended
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September
30,
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September
30,
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2016
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2015
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2016
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2015
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(unaudited)
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(unaudited)
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Adjusted diluted
weighted average shares outstanding for JCI plc
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735.2
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655.2
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672.6
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661.5
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Effect of merger
share conversion
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(90.4)
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-
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(22.7)
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-
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Tyco dilutive
securities impact
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(1.7)
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-
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(0.5)
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-
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Adjusted diluted
weighted average shares outstanding for JCI Inc.
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643.1
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655.2
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649.4
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661.5
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3.
Mark-to-Market of Pension and Postretirement Plans
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The pension and
postretirement mark-to-market gain or loss for each period is
excluded from adjusted diluted earnings per share. The fiscal
2016 fourth quarter includes a mark-to-market charge for pension
and postretirement plans of $503 million. The fiscal 2015
fourth quarter includes a mark-to-market charge for pension and
postretirement plans of $422 million.
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4.
Acquisitions and Divestitures
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On September 2, 2016,
JCI Inc. and Tyco completed their combination which was announced
on January 25, 2016. The merger is accounted for as a reverse
acquisition using the acquisition method of accounting in
accordance with ASC 805, "Business Combinations." JCI Inc. is
the accounting acquirer for financial reporting purposes.
Accordingly, the historical consolidated financial statements of
JCI Inc. for periods prior to this transaction are considered to be
the historical financial statements of the Company. The total
fair value of the consideration transferred is $19.7 billion.
As part of the transaction, the Company recorded $16.4 billion of
goodwill and $6.2 billion of intangible assets, of which $3.9
billion are subject to amortization.
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On October 1, 2015,
the Company formed a joint venture with Hitachi to expand its
Building Efficiency product offerings. The Company acquired a
60 percent ownership stake in the new entity for approximately $133
million ($563 million purchase price less cash acquired of $430
million).
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On September 1, 2015,
the Company completed the sale of its Global Workplace Solutions
(GWS) business to CBRE Group, Inc. for $1.4 billion and recorded a
net gain of $940 million ($643 million after tax) within
discontinued operations. The GWS business met the criteria to be
classified as a discontinued operation in the condensed
consolidated statements of income for the year ending September 30,
2015.
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On July 2, 2015, the
Company completed its global automotive interiors joint venture
with Yanfeng Automotive Trim Systems. The Company holds a 30
percent equity interest in the joint venture. The Company
recorded a net gain of $145 million ($38 million after tax) related
to the Interiors business divestiture.
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5. Income
Taxes
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The Company's
effective tax rate from continuing operations before consideration
of mark-to-market for pension and postretirement plans/settlement
losses, transaction/integration/separation costs, restructuring and
impairment costs, significant gain on business divestitures,
nonrecurring purchase accounting impacts related to the Tyco merger
and discrete tax items for the quarter and year ending September
30, 2016 and 2015 is approximately 17 percent and 19 percent,
respectively. The fiscal 2016 fourth quarter includes $1,103
million ($1.50) of one-time tax charges associated with the
spin-off of the Automotive Experience business and merger with
Tyco, which primarily relate to the repatriation of cash as a
result of the spin-off transaction. A significant portion of the
charge will result in cash tax payments in the first quarter of
fiscal 2017, which are substantially recoverable in fiscal 2018 and
2019. The fiscal 2015 fourth quarter includes $124 million
($0.19) of tax charges within continuing operations and $278
million ($0.42) in discontinued operations, which are primarily
attributable to the divestitures of the Interiors and GWS
businesses, respectively.
During the quarter ended December 31, 2015, the Company early
adopted Accounting Standards Update (ASU) No. 2015-17, "Income
Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes."
ASU No. 2015-17 requires that deferred tax liabilities and assets
be classified as noncurrent in the consolidated statements of
financial position. The change has been reported through
retrospective application of ASU No. 2015-17 to all periods
presented.
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6.
Restructuring
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The fiscal 2016
fourth quarter includes restructuring and impairment costs of $289
million related to workforce reductions and asset impairments in
the Automotive Experience, Tyco and Power Solutions businesses and
at Corporate. The fiscal 2015 fourth quarter includes
restructuring and impairment costs of $397 million related to
workforce reductions, plant closures and asset impairments in the
Automotive Experience, Building Efficiency and Power Solutions
businesses and at Corporate.
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/johnson-controls-reports-2016-fiscal-fourth-quarter-and-full-year-earnings-300358912.html
SOURCE Johnson Controls