Tyco International Finance S.A. | Tyco International Finance S.A. Tyco International Finance S.A. (" TIFSA"), a 100% owned subsidiary of the Company, has public debt securities outstanding which, as of September 30, 2016, were fully and unconditionally guaranteed by Johnson Controls and by Tyco Fire & Security Finance S.C.A. ("TIFSCA"), a wholly owned subsidiary of the Company and parent company of TIFSA. During the first quarter of fiscal 2017, the guarantees were removed. The following tables present condensed consolidating financial information for Johnson Controls, TIFSCA, TIFSA and all other subsidiaries. Condensed financial information for the Company, TIFSCA and TIFSA on a stand-alone basis is presented using the equity method of accounting for subsidiaries. CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Three Months Ended March 31, 2018 (in millions) Johnson Controls International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net sales $ — $ — $ — $ 7,475 $ — $ 7,475 Cost of sales — — — 5,255 — 5,255 Gross profit — — — 2,220 — 2,220 Selling, general and administrative expenses (7 ) — 11 (1,592 ) — (1,588 ) Net financing charges (86 ) 23 (3 ) (49 ) — (115 ) Equity income (loss) 582 439 (9 ) 44 (1,012 ) 44 Intercompany interest and fees (51 ) 70 (17 ) (2 ) — — Income (loss) from continuing operations before income taxes 438 532 (18 ) 621 (1,012 ) 561 Income tax provision — — — 78 — 78 Income (loss) from continuing operations 438 532 (18 ) 543 (1,012 ) 483 Loss from sale of intercompany investment, net of tax — — — (953 ) 953 — Net income (loss) 438 532 (18 ) (410 ) (59 ) 483 Income from continuing operations attributable to noncontrolling interests — — — 45 — 45 Net income (loss) attributable to Johnson Controls $ 438 $ 532 $ (18 ) $ (455 ) $ (59 ) $ 438 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2018 (in millions) Johnson Controls International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net income (loss) $ 438 $ 532 $ (18 ) $ (410 ) $ (59 ) $ 483 Other comprehensive income (loss), net of tax Foreign currency translation adjustments 168 (16 ) (2 ) 388 (334 ) 204 Realized and unrealized losses on derivatives (6 ) — — (10 ) 6 (10 ) Realized and unrealized losses on marketable securities (2 ) — — (2 ) 2 (2 ) Other comprehensive income (loss) 160 (16 ) (2 ) 376 (326 ) 192 Total comprehensive income (loss) 598 516 (20 ) (34 ) (385 ) 675 Comprehensive income attributable to noncontrolling interests — — — 77 — 77 Comprehensive income (loss) attributable to Johnson Controls $ 598 $ 516 $ (20 ) $ (111 ) $ (385 ) $ 598 CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Six Months Ended March 31, 2018 (in millions) Johnson Controls International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net sales $ — $ — $ — $ 14,910 $ — $ 14,910 Cost of sales — — — 10,521 — 10,521 Gross profit — — — 4,389 — 4,389 Selling, general and administrative expenses (10 ) — 11 (3,006 ) — (3,005 ) Restructuring and impairment costs — — — (158 ) — (158 ) Net financing charges (136 ) 24 (5 ) (114 ) — (231 ) Equity income 867 627 133 104 (1,627 ) 104 Intercompany interest and fees (53 ) 155 (46 ) (56 ) — — Income from continuing operations before income taxes 668 806 93 1,159 (1,627 ) 1,099 Income tax provision — — — 345 — 345 Income from continuing operations 668 806 93 814 (1,627 ) 754 Loss from sale of intercompany investment, net of tax — — — (953 ) 953 — Net income (loss) 668 806 93 (139 ) (674 ) 754 Income from continuing operations attributable to noncontrolling interests — — — 86 — 86 Net income (loss) attributable to Johnson Controls $ 668 $ 806 $ 93 $ (225 ) $ (674 ) $ 668 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Six Months Ended March 31, 2018 (in millions) Johnson Controls International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net income (loss) $ 668 $ 806 $ 93 $ (139 ) $ (674 ) $ 754 Other comprehensive income (loss), net of tax Foreign currency translation adjustments 226 (23 ) (3 ) 441 (358 ) 283 Realized and unrealized losses on derivatives (5 ) — — (11 ) 5 (11 ) Realized and unrealized gains (losses) on marketable securities (2 ) — (4 ) 2 2 (2 ) Other comprehensive income (loss) 219 (23 ) (7 ) 432 (351 ) 270 Total comprehensive income 887 783 86 293 (1,025 ) 1,024 Comprehensive income attributable to noncontrolling interests — — — 137 — 137 Comprehensive income attributable to Johnson Controls $ 887 $ 783 $ 86 $ 156 $ (1,025 ) $ 887 CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Three Months Ended March 31, 2017 (in millions) Johnson Controls International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net sales $ — $ — $ — $ 7,267 $ — $ 7,267 Cost of sales — — — 4,986 — 4,986 Gross profit — — — 2,281 — 2,281 Selling, general and administrative expenses (4 ) — (1 ) (1,721 ) — (1,726 ) Restructuring and impairment costs — — — (99 ) — (99 ) Net financing charges (59 ) — 5 (62 ) — (116 ) Equity income (loss) (103 ) (187 ) (382 ) 53 672 53 Intercompany interest and fees 18 73 20 (111 ) — — Income (loss) from continuing operations before income taxes (148 ) (114 ) (358 ) 341 672 393 Income tax provision — — — 508 — 508 Net loss (148 ) (114 ) (358 ) (167 ) 672 (115 ) Income from continuing operations attributable to noncontrolling interests — — — 33 — 33 Net loss attributable to Johnson Controls $ (148 ) $ (114 ) $ (358 ) $ (200 ) $ 672 $ (148 ) CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2017 (in millions) Johnson Controls International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net loss $ (148 ) $ (114 ) $ (358 ) $ (167 ) $ 672 $ (115 ) Other comprehensive income (loss), net of tax Foreign currency translation adjustments 241 (7 ) (1 ) 260 (241 ) 252 Realized and unrealized losses on derivatives (6 ) — — (8 ) 6 (8 ) Realized and unrealized gains on marketable securities 11 — 7 4 (11 ) 11 Other comprehensive income (loss) 246 (7 ) 6 256 (246 ) 255 Total comprehensive income (loss) 98 (121 ) (352 ) 89 426 140 Comprehensive income attributable to noncontrolling interests — — — 42 — 42 Comprehensive income (loss) attributable to Johnson Controls $ 98 $ (121 ) $ (352 ) $ 47 $ 426 $ 98 CONDENSED CONSOLIDATING STATEMENT OF INCOME For the Six Months Ended March 31, 2017 (in millions) Johnson Controls International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net sales $ — $ — $ — $ 14,353 $ — $ 14,353 Cost of sales — — — 9,958 — 9,958 Gross profit — — — 4,395 — 4,395 Selling, general and administrative expenses (6 ) — — (3,290 ) — (3,296 ) Restructuring and impairment costs — — — (177 ) — (177 ) Net financing charges (78 ) — (14 ) (160 ) — (252 ) Equity income (loss) 215 (473 ) (492 ) 108 750 108 Intercompany interest and fees 50 73 37 (160 ) — — Income (loss) from continuing operations before income taxes 181 (400 ) (469 ) 716 750 778 Income tax provision — — — 481 — 481 Income (loss) from continuing operations 181 (400 ) (469 ) 235 750 297 Loss from sale of intercompany investment, net of tax — — (935 ) — 935 — Loss from discontinued operations, net of tax — — — (34 ) — (34 ) Net income (loss) 181 (400 ) (1,404 ) 201 1,685 263 Income from continuing operations attributable to noncontrolling interests — — — 73 — 73 Income from discontinued operations attributable to noncontrolling interests — — — 9 — 9 Net income (loss) attributable to Johnson Controls $ 181 $ (400 ) $ (1,404 ) $ 119 $ 1,685 $ 181 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Six Months Ended March 31, 2017 (in millions) Johnson Controls International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Net income (loss) $ 181 $ (400 ) $ (1,404 ) $ 201 $ 1,685 $ 263 Other comprehensive income (loss), net of tax Foreign currency translation adjustments (418 ) (7 ) 26 (470 ) 418 (451 ) Realized and unrealized losses on derivatives (6 ) — — (4 ) 6 (4 ) Realized and unrealized gains on marketable securities 9 — 7 2 (9 ) 9 Other comprehensive income (loss) (415 ) (7 ) 33 (472 ) 415 (446 ) Total comprehensive loss (234 ) (407 ) (1,371 ) (271 ) 2,100 (183 ) Comprehensive income attributable to noncontrolling interests — — — 51 — 51 Comprehensive loss attributable to Johnson Controls $ (234 ) $ (407 ) $ (1,371 ) $ (322 ) $ 2,100 $ (234 ) CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION As of March 31, 2018 (in millions) Johnson Controls International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 304 $ 161 $ 1,293 $ (1,490 ) $ 268 Accounts receivable - net — — — 6,679 — 6,679 Inventories — — — 3,565 — 3,565 Intercompany receivables 48 2,206 365 23,090 (25,709 ) — Assets held for sale — — — 22 — 22 Other current assets 11 2 2 1,722 — 1,737 Current assets 59 2,512 528 36,371 (27,199 ) 12,271 Property, plant and equipment - net — — — 6,235 — 6,235 Goodwill 243 — 32 19,531 — 19,806 Other intangible assets - net — — — 6,625 — 6,625 Investments in partially-owned affiliates — — — 1,294 — 1,294 Investments in affiliates 39,838 33,681 21,456 — (94,975 ) — Intercompany loans receivable — 4,140 2,836 9,004 (15,980 ) — Other noncurrent assets 63 — 3 3,655 — 3,721 Total assets $ 40,203 $ 40,333 $ 24,855 $ 82,715 $ (138,154 ) $ 49,952 Liabilities and Equity Short-term debt $ 2,163 $ 9 $ — $ 429 $ (1,490 ) $ 1,111 Current portion of long-term debt — — — 25 — 25 Accounts payable 1 — — 4,249 — 4,250 Accrued compensation and benefits 1 — — 865 — 866 Deferred revenue — — — 1,543 — 1,543 Intercompany payables 3,361 19,459 2,031 858 (25,709 ) — Other current liabilities 303 13 27 2,854 — 3,197 Current liabilities 5,829 19,481 2,058 10,823 (27,199 ) 10,992 Long-term debt 8,812 — 155 1,995 — 10,962 Pension and postretirement benefits — — — 864 — 864 Intercompany loans payable 4,688 — 4,316 6,976 (15,980 ) — Other noncurrent liabilities — — 24 4,995 — 5,019 Long-term liabilities 13,500 — 4,495 14,830 (15,980 ) 16,845 Redeemable noncontrolling interests — — — 235 — 235 Ordinary shares 9 — — — — 9 Ordinary shares held in treasury (946 ) — — — — (946 ) Other shareholders' equity 21,811 20,852 18,302 55,821 (94,975 ) 21,811 Shareholders’ equity attributable to Johnson Controls 20,874 20,852 18,302 55,821 (94,975 ) 20,874 Noncontrolling interests — — — 1,006 — 1,006 Total equity 20,874 20,852 18,302 56,827 (94,975 ) 21,880 Total liabilities and equity $ 40,203 $ 40,333 $ 24,855 $ 82,715 $ (138,154 ) $ 49,952 CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION As of September 30, 2017 (in millions) Johnson Controls International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 107 $ 382 $ 718 $ (886 ) $ 321 Accounts receivable - net — — — 6,666 — 6,666 Inventories — — — 3,209 — 3,209 Intercompany receivables 1,580 1,732 55 4,470 (7,837 ) — Assets held for sale — — — 189 — 189 Other current assets 14 — 1 1,892 — 1,907 Current assets $ 1,594 $ 1,839 $ 438 $ 17,144 $ (8,723 ) $ 12,292 Property, plant and equipment - net — — — 6,121 — 6,121 Goodwill 243 — 32 19,413 — 19,688 Other intangible assets - net — — — 6,741 — 6,741 Investments in partially-owned affiliates — — — 1,191 — 1,191 Investments in affiliates 19,487 31,594 21,132 — (72,213 ) — Intercompany loans receivable 17,908 4,140 2,836 9,004 (33,888 ) — Noncurrent assets held for sale — — — 1,920 — 1,920 Other noncurrent assets 56 — 7 3,868 — 3,931 Total assets $ 39,288 $ 37,573 $ 24,445 $ 65,402 $ (114,824 ) $ 51,884 Liabilities and Equity Short-term debt $ 1,476 $ — $ — $ 624 $ (886 ) $ 1,214 Current portion of long-term debt 307 — 18 69 — 394 Accounts payable — — — 4,271 — 4,271 Accrued compensation and benefits 4 — — 1,067 — 1,071 Deferred revenue — — — 1,279 — 1,279 Liabilities held for sale — — — 72 — 72 Intercompany payables 4,236 1,055 1,886 660 (7,837 ) — Other current liabilities 324 2 24 3,203 — 3,553 Current liabilities 6,347 1,057 1,928 11,245 (8,723 ) 11,854 Long-term debt 7,806 — 152 4,006 — 11,964 Pension and postretirement benefits — — — 947 — 947 Intercompany loans payable 4,688 17,908 4,316 6,976 (33,888 ) — Noncurrent liabilities held for sale — — — 173 — 173 Other noncurrent liabilities — — 24 5,344 — 5,368 Long-term liabilities 12,494 17,908 4,492 17,446 (33,888 ) 18,452 Redeemable noncontrolling interest — — — 211 — 211 Ordinary shares 9 — — — — 9 Ordinary shares held in treasury (710 ) — — — — (710 ) Other shareholders' equity 21,148 18,608 18,025 35,580 (72,213 ) 21,148 Shareholders’ equity attributable to Johnson Controls 20,447 18,608 18,025 35,580 (72,213 ) 20,447 Noncontrolling interests — — — 920 — 920 Total equity 20,447 18,608 18,025 36,500 (72,213 ) 21,367 Total liabilities and equity $ 39,288 $ 37,573 $ 24,445 $ 65,402 $ (114,824 ) $ 51,884 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Six Months Ended March 31, 2018 (in millions) Johnson Controls International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Operating Activities Net cash provided (used) by operating activities $ (342 ) $ 188 $ 82 $ 605 $ — $ 533 Investing Activities Capital expenditures — — — (497 ) — (497 ) Sale of property, plant and equipment — — — 10 — 10 Acquisition of businesses, net of cash acquired — — — (15 ) — (15 ) Business divestitures — — — 2,114 — 2,114 Changes in long-term investments — — — (14 ) — (14 ) Net change in intercompany loans receivable 300 — (285 ) 583 (598 ) — Net cash provided (used) by investing activities 300 — (285 ) 2,181 (598 ) 1,598 Financing Activities Increase (decrease) in short-term debt - net 687 9 — (192 ) (604 ) (100 ) Increase in long-term debt 885 — — 1 — 886 Repayment of long-term debt (307 ) — (18 ) (2,003 ) — (2,328 ) Debt financing costs (4 ) — — — — (4 ) Stock repurchases (199 ) — — — — (199 ) Payment of cash dividends (473 ) — — — — (473 ) Proceeds from the exercise of stock options 36 — — — — 36 Employee equity-based compensation withholding taxes — — — (37 ) — (37 ) Net change in intercompany loans payable (583 ) — — (15 ) 598 — Dividends paid to noncontrolling interests — — — (46 ) — (46 ) Other — — — 11 — 11 Net cash provided (used) by financing activities 42 9 (18 ) (2,281 ) (6 ) (2,254 ) Effect of exchange rate changes on cash and cash equivalents — — — 61 — 61 Change in cash held for sale — — — 9 — 9 Increase (decrease) in cash and cash equivalents — 197 (221 ) 575 (604 ) (53 ) Cash and cash equivalents at beginning of period — 107 382 718 (886 ) 321 Cash and cash equivalents at end of period $ — $ 304 $ 161 $ 1,293 $ (1,490 ) $ 268 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Six Months Ended March 31, 2017 (in millions) Johnson Controls International plc Tyco Fire & Security Finance SCA Tyco International Finance S.A. Other Subsidiaries Consolidating Adjustments Total Operating Activities Net cash provided (used) by operating activities $ 62 $ — $ 67 $ (1,648 ) $ — $ (1,519 ) Investing Activities Capital expenditures — — — (634 ) — (634 ) Sale of property, plant and equipment — — — 18 — 18 Acquisition of businesses, net of cash acquired — — (6 ) — — (6 ) Business divestitures — — — 180 — 180 Changes in long-term investments — — (11 ) (19 ) — (30 ) Net change in intercompany loans receivable — — 10 165 (175 ) — Increase in intercompany investment in subsidiaries (1,924 ) (1,716 ) (76 ) — 3,716 — Net cash used by investing activities (1,924 ) (1,716 ) (83 ) (290 ) 3,541 (472 ) Financing Activities Increase (decrease) in short-term debt - net 885 76 — (545 ) (361 ) 55 Increase in long-term debt 1,544 — — 8 — 1,552 Repayment of long-term debt (46 ) — (16 ) (769 ) — (831 ) Debt financing costs (17 ) — — — — (17 ) Stock repurchases (119 ) — — — — (119 ) Payment of cash dividends (235 ) — — — — (235 ) Proceeds from the exercise of stock options 88 — — — — 88 Employee equity-based compensation withholding taxes — — — (33 ) — (33 ) Net change in intercompany loans payable (165 ) — — (10 ) 175 — Increase in equity from parent — 1,640 76 2,000 (3,716 ) — Dividends paid to noncontrolling interests — — — (78 ) — (78 ) Dividend from Adient spin-off — — — 2,050 — 2,050 Cash transferred to Adient related to spin-off (87 ) — — (578 ) — (665 ) Cash paid related to prior acquisitions — — — (37 ) — (37 ) Other 6 — — 8 — 14 Net cash provided by financing activities 1,854 1,716 60 2,016 (3,902 ) 1,744 Effect of exchange rate changes on cash and cash equivalents — — — (25 ) — (25 ) Change in cash held for sale — — — 105 — 105 Increase (decrease) in cash and cash equivalents (8 ) — 44 158 (361 ) (167 ) Cash and cash equivalents at beginning of period 11 — 244 324 — 579 Cash and cash equivalents at end of period $ 3 $ — $ 288 $ 482 $ (361 ) $ 412 |